@Agent86 I still do not see how you can't imagine someone with more money than you wanting to buy your name and doing something malicious with it. I would *never* rent a domain if I expect it to be possible for some rich guy I piss off to snipe it out from under me.
Ok, I'm trying to think of best way to explain how I see it.
Imagine you have a barber shop and you are leasing a space for your business (common practice). You have been there 5 years and have prepaid your lease out by 5 years @ $12k/yr. Now, your customers know your location, you have adds in yellowpages etc. Some rich guy who wants to spite you (maybe the large hairdresser at other end of stripmall?) He wants to raise your rent to $20k/yr. So he goes to your landlord and puts in deposit of $20k x 5yrs = $100k. Your landlord makes you aware of it and says you have 5 years to decide what to do. If you make a quick decision, he has the spot next door available at your old rate, or maybe less. So if you like you can take 6 months to tell all your customers contact the yellow pages etc. get the new shop open, move your stuff, forward the mail and then collect a little less than $40k profit for your trouble. Sure, it could be a bit of a pain, but you get rewarded. Lets look at the other guy: He just spent $100k paying way above market rate for a place he has no need for just in some vain attempt to inconvenience you. He'll then have to eat it at a complete loss or immediately put it back on the market at a big loss. I guess he could open a hairdresser there, but everyone has been made well aware that this is new ownership and he is not fooling anyone. It's a lot of effort and money to start a business he never intended to start and the lease price was too high for you so he's obviously overpaying. He's kicking himself already. Maybe you don't want to move, maybe you stay there for 4 years while this rich jerk has his $100k tied up doing nothing. Maybe it was a good time for you to move on anyway at that point. Then you start the moving process; he'll probably start panicking and trying to cut a deal with you because he wants his money back already and doesn't want the stupid shop for 5 years.
I mean is this a real problem that people contend with? Is this really a way to harm someone or just a great way to shoot yourself in the foot?
Maybe he's been more sneaky and has been slowly making higher offers over time but it's always up to you if you like to extend your lease at a bit higher rate, or if you tie up the attackers money and make him start sweating. Or if you take the money and run at a time that is most convenient for you.