Risks in Buying ccTLD Domains: Example of .LY Domain Name Taken by Registry
ccTLD investing is probably most interesting to me because of my travels, not because I am a ccTLD investor, or because I use ccTLD domain names regularly. Businesses in many countries outside of the USA favor local ccTLD domain names over .com, although there are still a number of countries whose citizens prefer non-ccTLD domain names.
One of my biggest fears with ccTLD domain names is that the country in charge of the registry can set rules and regulations that wouldn’t be expected in the US. It’s one thing if you live there and are accustomed to those local laws, but it’s another thing if you’re a US citizen and you use a ccTLD in the US, but your domain name is governed by a foreign entity.
Internet consultant, Ben Metcalfe, reported about a situation his company is facing with regards to VB.LY, an important .LY domain name his company owns – well owned. According to a post on Ben’s blog,
The domain was seized by the Libyan domain registry for reasons which seemed to be kept obscure until we escalated the issue. We eventually discovered that the domain has been seized because the content of our website, in their opinion, fell outside of Libyan Islamic/Sharia Law.
It seems odd that a domain registrar is taking over a domain name based on its content, since the content is hosted on servers that reside outside of Libya. When I reported an instance of copy theft to Godaddy, they told me it was out of their scope since the domain name is only registered at their company, and the actual website is hosted elsewhere.
This is something every ccTLD investor and web developer MUST consider when buying ccTLD domain names. I wrote an article about how domain hacks can lead to confusion in the market place, but I think this is a far more important consideration. A company like Bitly, whose primary domain name operates on Bit.LY, needs to be mindful, especially when Bitly has very little (or no) control over the content to which they are linking.
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