I got the domain from my hosting company and asked them to put it in private registration and got the following email from him, Is it true if we have Private registration then the Private registrant is the legal owner for that domain? It is scary since I pay $9 and made all my domains as private?? ---------------------------- "Because your domain record is public for all to see, some registrars want to upsell you to "privacy services" or "whois masking", "private registration", where they put their own info in the whois record instead of yours. The important thing to know here is that in the eyes of the domain Registry to which all the Registrars interact, and the Registry's oversight body (like ICANN, or in Canada, CIRA), whoever is listed in the domain whois record as the domain Registrant is the legal owner of the domain name. Keep that in mind, if you use a service like this, they own the domain, not you, notwithstanding whatever contract or Terms of Service you enter into with them to "own" this name on your behalf. If it lands in a dispute proceeding it will be an open and shut case: they own the name. Taking it one step further, some "privacy" services will get you to sign up for the whois privacy service and then they turn around and happily offer to sell your true data to anybody else who cares to pay for it." ----------------------
I doubt that it would be an "open and shut case" since: 1. You paid for the domain name and can prove it 2. You have an agreement with the privacy service provider which should state clearly the terms of the deal (you should check this). You should opt for a well-known service though, as an added protection, and not something run out of a basement in Nigeria (no offense to Nigerians, unless your name is Prince Sadiq Abbas Abacha, in which case you owe me $31 mil).
I think your hosting company is talking out of its ass, I never heard of anyone having their domain name stolen by a privacy registrar and even less of privacy companies selling your data to others. Which is probably illegal anyway. Not saying it never happens, but if you have a legal agreement with your privacy provider nothing of this should happen. There is something called lawsuits.