Seems overblown. I got this from my ISP
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Domain Locking
There has been some concern about a recent ICANN decision revising the procedures for transferring registration services from one provider to another. Various notifications have been sent to domain owners giving warning about the new procedures. As some of these notifications are somewhat alarming, (my ISP) is providing this document as an overview for how this new ICANN decision affects domain owners.
The full policy document is available online at
http://www.icann.org/transfers/policy-12jul04.htm.
How a registrar transfer works
The new transfer policy still requires the "gaining" registrar to get positive confirmation from the domain owner before submitting the request to the registry. They do this by sending a conformation request to the domain's admin contact. This has not changed.
The domain owner must confirm the transfer as valid by replying to the confirmation request as noted in step 1. This has not changed.
Once the domain owner has confirmed a valid request, it is sent to the registry and they pass it along to the "losing" (or current) registrar. This has not changed.
The current (losing) registrar sends a second confirmation request to the domains admin contact. This has not changed.
What's changed
Currently, if the domain owner does not or cannot reply to this "2nd" confirmation request, the losing registrar can, at their discretion, decline the transfer.
As of Nov 12th, the transfer WILL complete even if the domain owner does not reply to the 2nd confirmation request.
Why this matters
It's important to note that the current and long standing policy of OpenSRS and some other respectable registrars is exactly the same as that which will be imposed on all registrars beginning on November 12th, 2004.
Many other registrars used the older policy to hinder the transfer of domains away from their companies. They used all kind-o sneaky tricks to keep domain owners from confirming the second transfer request.
This new policy does not increase the risk of domain hijacking and if fact hinders it because it also imposes requirements that the "gaining" registrar maintain "proof of domain owner authorization" for domains transferring to their system. Further, if the gaining registrar cannot provide proof, upon request, they are subject to a fine of $1500 per incident (domain) plus the possible loss of ICANN accreditation.