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Spam
These companies look at domain registrations, see who is due for renewal. They get a percentage of people foolish enough to switch to them. Most of these companies are legit, just a high price service of what you are already doing yourself.
Another version of this is the "Doing Business As" registration, several states such as California require. Company I worked for, the Legal Dept. handled DBA renewals, but store managers were getting letters constantly, from these official looking letters saying it was time to renew the DBA registration.
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