As we just wrote Namejet.com updated their Terms and Conditions last week and I took the opportunity to read through them

I’m not sure what parts of the TOS changed (other than the addition of the Advanced Auction rules on new gTLD’s) but found this section particularly interesting:

3. NameJet is a Venue.

3.1 NameJet is not an Auctioneer.

Although we state that the Site includes online auctions, it is important to realize that we are not a traditional “auctioneer.” Instead, the Site acts as a venue to allow parties to offer, sell, buy and register domain names, at anytime, from anywhere, in a variety of pricing formats, including a fixed price format and an auction-style format commonly referred to as “online auctions” or “auctions.”

We cannot ensure that a buyer or seller will actually complete a transaction.

Consequently, we do not transfer legal ownership of domain names from the seller to the buyer.

Also we do not and cannot guarantee the acquisition of any domain name through our auction process.

There is also no guarantee that one of our registrar partners, on its fully-automated Web site, will not facilitate the registration of the name you want by someone else who applies through the registrar’s own Web site interface.

3.2 Fixed Price Marketplace.

We also offer you the availability to register domain names at a fixed price from the Site.

3.3 Identity Verification. We attempt to verify the accuracy of the information our users provide us when they register on our Site. Some bids may require you to enter our Verified Bidder Program however, NameJet does not confirm or guarantee any users purported identity.

You agree that you assume all risk when transacting business with other users using our system.

3.4 Waiver in the Event of Dispute. Because we are only a venue for auctions to occur, we do not check to see whether the domain name you bid on to register infringes the legal rights of others.

We urge you to investigate to see whether the domain name you select or its use infringes legal rights of others.

We will not investigate any trademark claim nor provide you with any notice that we have received such a claim from any third party.

You should seek one or more opinions from competent trademark practitioners in connection with any domain name on which you bid.

You agree to assume all responsibility in selecting a domain name to register and/or monitor.

Should we be sued or threatened with a lawsuit in connection with any domain name and/or subscription to any other of our services, we will turn to you to hold us harmless and indemnify us pursuant to the Indemnification provision of this agreement.

Similarly, you recognize that we have no responsibility to determine whether domain names monitored or acquired by others through our site infringe your own rights in trademarks or domain names, and you agree to release NameJet from any legal claims asserting such a responsibility.

We will not participate in any way in any dispute between you and any party other than us regarding the registration and use of your domain name, and/or NameJet’s services.

You will not name us as a party or otherwise include us in any such proceeding.

In the event that we are named as a party in any such proceeding, we reserve the right to raise any and all defenses deemed appropriate, and to take any other action necessary to defend ourselves.

NameJet will not honor registrations that NameJet reasonably believes infringe on its own trademarks or the trademarks of Network Solutions or the trademarks of eNom.

Should you fail to substantially prevail in any lawsuit brought against NameJet, NameJet will be entitled to recover its reasonable attorneys’ fees and costs from you.

If you are a California resident, you hereby waive your rights under California Civil Code 1542, which says: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”