"Sorry, but that domain name is already taken." These words, and similar
phrases, are popping up more and more often as businesses attempt to
register the new domain name of their choice. With approximately
10,000 new domain names being registered every day, good, intuitive
names are getting harder to find.
I'm not going to get into trade name disputes here. Battles over
protected business, service, or product names being registered as
domain names by someone other than the company that protected the
name are just too complicated to be covered here. Please feel free
to contact me if you have a question in this area. I do not give
legal advice, but I may be able to point you in the right direction.
What I really want to talk about here is what to do when the domain
name you want is not a protected name, but you would like to have
it anyway. Can you get it and, if so, what will it cost you?
The first question to answer is whether or not the domain name is
currently being put to good use. If it is leading to a successful
site, it is most likely unavailable at anything below a prohibitive
price. Unless you have very deep pockets and a superior use for the
name, forget it. Put your thinking cap on, or contact me. But please
don't go buying a domain name without knowing your alternatives or
being able to properly value the name you are buying.
If the name is registered to an individual who is either under-utilizing
it or just registered it, you might want to attempt to purchase it
from them. Again, make sure you don't over pay.
You may find that the domain name you want is registered to one of
the many entities who are in the business of acquiring domain names
for re-sale or lease. DO NOT make the mistake of assuming that the
price they are asking is either fair or reasonable.
After hearing stories of some domain names being sold for as much as
$100,000 or even more, many unsophisticated gamblers have rushed to
register names without any concept of their potential use or value.
They have totally unrealistic expectations, so don't let them suck
you into their get-rich-quick fantasy. First make sure this is the
domain name you really need, and then negotiate from strength and
knowledge. Let me know if I can help you.
And remember, outright purchase is not the only option. There are
also leases and revenue sharing arrangements that can be used to
obtain the use of the domain name. The contracts need to be worded
to protect your right to continued use, among other important
elements of the deal. While these deals are a totally legitimite
way of doing business, you must make sure that the agreement
properly protects your needs. A forfeited or expired lease could
either put you out of business or force a renegotiation that
would drastically raise your costs. Do not try to do this on your
own unless you really know what to look for. Most attorneys will
not know how to handle a transaction like this either, so make sure
you have someone experienced in these matters.
"Domain Name WARNING!"