When a domain name is registered, the registrant is given five days to cancel for a full refund. While the purpose of this grace period is to protect those who innocently err in the registration process, speculators have taken advantage of the grace period through a process called "domain tasting." These "domain tasters" register hundreds of thousands of domain names and cancel the vast majority of them within the five-day grace period, keeping only those that may be valuable as placeholder advertising websites or to holders of trademark rights. This iBrief will outline the "domain tasting" process, analyze why it is a problem, and discuss solutions to the problem. Ultimately, it concludes that the five-day grace period is unnecessary because it serves little, if any, legitimate purpose.
Christopher Healey, Domain Tasting Is Taking Over the Internet as a Result of ICANN’s “Add Grace Period”, 6 Duke Law & Technology Review 1-16 (2007)