Some are coming out against Donuts now, raising the specter of potential cybersquatting, the practice of sitting on a piece of web real estate and waiting for it to gain value, or in this case, the accusers say, providing an outlet for people to masquerade as the intended owner. (“Well, .apple must be the domain of the iPhone-making Apple company!”) Bloomberg has the full story on it, but in short, this could turn into a messy legal squabble. Donuts is being sued is named in a letter to ICANN, the arbiters of web structure, from a lawyer representing other new-domain holders. The holders are lobbying for ICANN to investigate Donuts’ ties to the occasionally controversial Demand Media. In the meantime, 140 of Donuts’ bids are uncontested, one of the company’s founder told Bloomberg, while it’ll have to duke it out with some others for the other domains. Bloomberg
