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Legal Review Should be Done Before Agreeing to a Deal

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A negotiation can be exhilarating or frustrating depending on many factors. When a domain name deal is finally reached, it should mark the end of one stage and begin the contract and escrow discussions. It should not begin the process of a legal review for the buyer.

I don't know about you, but I have dealt with prospective buyers backing out of a couple of deals due to their findings from a legal review. The buyers' attorneys have either found that a trademark would be tough to get for domain name (and/or brand) or there are existing trademarks would put an application in peril. Whatever the case may be, it is very frustrating to agree to a deal only to later learn that the prospective buyer decided to back out because their legal team has put the kibosh on the deal.

From my perspective, domain name buyers should do a cursory legal review prior to inquiring about domain names. This doesn't have to be an extensive or exhaustive review, but it should be enough to know whether a domain name will pose legal issues for them for → Read More


Monitor Your Domain Registrations

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I use DomainTools to monitor the domain registrations of many companies, including my own. I do this for research for DomainInvesting.com articles, and I also use the information I can glean to learn what domain names are moving at large companies.

One important reason I think people should monitor their own company name and/or email address is to ensure domain names aren't being registered under their business name without their knowledge. It would be fairly easy for someone to register a domain name, say a trademark name, under the name of someone else with a different email address. Obviously, nobody wants to deal with a UDRP proceeding or litigation for a domain name they don't own or even know anything about, so monitoring is something I do automatically.

I use the daily registrant alert email from DomainTools to try and monitor domain names registered in my company's name. Other service providers like (more…) → Read More


Keep Your Powder Dry

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When I was a freshman in college, I believe it was the President of our school who, in giving some advice to us, said "keep your powder dry." I know the saying pre-dates him by several generations, but that saying has stuck with me. As a domain investor, I think it is important to "keep your powder dry."

This part of the more famous saying means that you should always be ready. Obviously my interpretation of it has nothing to do with firearms or gunpowder, but rather the funds necessary to acquire domain names. As an opportunistic domain name buyer, I do what I need to do to keep my powder dry.

Opportunities to buy domain names come at all times. Sometimes the owner of a domain name who rejected an offer for a domain name a couple of years ago decides to put the name on the market and asks if I am still interested. Other times, a domain name is offered for sale by a broker. There are even cases where an auction seems to come out of the blue, and having cash is necessary to make a purchase. There are too many (more…) → Read More


Using UDRPSearch.com to Assess Risk

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UDRPSearch.comI am an active user of UDRPSearch.com. As someone who writes about the business of domain name investing, I think it is important to stay aware of new and ongoing UDRP proceedings. I also think UDRPSearch.com is a good way for me to assess some risk when acquiring a domain name.

The percentage of UDRP filings compared to domain names is miniscule. Although a bright light is usually cast on UDRP proceedings that involve generic and/or otherwise valuable domain names, there are probably proceedings that go undetected or were filed before domain industry publications existed. Although I know of many UDRP filings, there are likely hundreds of UDRP proceedings filed against valuable domain names I don't know of off the top of my head.

When buying a domain name, it is important to know (more…) → Read More


Watch out for Poor Classification

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I won an auction at GoDaddy Auctions a little over a week ago. After the domain name was pushed to my GoDaddy account, I asked my Account Manager to change the nameservers on the domain name and I noticed something a bit problematic when I visited the landing page to see if it had been changed. When visiting the landing page on my mobile phone, I saw a large graphic "XXX" header and the keywords were adult related. The domain name isn't adult related, although I could see why it would be classified as such because of one of the keywords.

Having an adult lander isn't a big deal for me or my company. I don't generally buy adult domain names, but I don't have any issues with adult domain names or parking. Some people might have issues, but that isn't why I found it troublesome. The issue I thought about and wanted to share with you is that a former owner might take exception to this and make a big deal about it. No, the former owner shouldn't have any say in what happens with a domain name that expired, but some can make a big → Read More


Not Responding to an Offer Could Result in a UDRP

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I follow UDRP filings and decisions, especially those that involve short, keyword, and other independently valuable .com domain names. One of the things I have noticed is that sometimes companies file UDRP complaints as their "Plan B." They are willing to buy a particular domain name, but they file a UDRP because the domain owner's price expectation is too high or because they don't receive a response to their inquiry or inquiries.

It is unfortunate when a company files a UDRP because they couldn't come to terms with the domain owner. This is a risk domain owners should know about, and it can be unavoidable when a company (usually wrongly) thinks it should be the rightful owner of the domain name. UDRP panels generally seem to get these decisions right, although the legal cost for the domain owner can be high and I would imagine it is frustrating to have to defend the right to own a great domain name.

Some domain owners ignore inquiries and offers as a policy. Perhaps the offer is far too low to be considered and the owner → Read More


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