Domain News

Buydomains and AfterNIC have once again shared their recent sales over the last two weeks with DNN. The top sale in the fortnight was boating.com with $250,000. In total the company sold and brokered sales of 810 domains for a total of $1,480,207.98 making the average sales price $1,827.42.

See the full list after the jump

.COM Domains

Other TLDs

(c) 2009 DomainNameNews.com

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Original post by Frank Michlick

The following is a guest post by Venkat Balasubramani – Venkat is a co-founder of Focal PLLC, a law firm focused on internet and technology issues. He blogs at Spam Notes and Professor Eric Goldman’s Technology & Marketing Law Blog. Follow him on Twitter: @VBalasubramani. This post was previously posted at Professor Goldman’s Technology & Marketing Law Blog.

Most people take it for granted that domain names are property. As such, there shouldn’t be much dispute that domain names are subject to the claims of judgment creditors. But I’ve seen enough resistance to this position that I thought a recent case was worth a quick mention. This recent case (Bosh v. Zavala (08-CV-04851-FMC-MANx) (C.D. Cal. Sept. 24, 2009)) also raises some interesting questions about the mechanics of trying to use a domain name to satisfy a judgment. This topic was also recently covered here on Domain Name News. For more perspectives, see Marc Randazza’s post on this case here; see also NYT; Deadspin.

Background: One of the early and often-cited cases for the proposition that a judgment creditor cannot get a domain name is Network Solutions, Inc. v. Umbro Int’l, Inc., 259 Va. 759, 770 (Va. 2000). In Umbro, the Virginia Supreme Court held that “a domain name registrant acquires the contractual right to use a unique domain name for a specified period of time…[but this] contractual right is inextricably bound to the domain name services that [Network Solutions] provides.” Umbro concluded that the domain name registration agreement was a “contract for services” (which was not subject to “garnishment”) rather than property. (Umbro was preceded by the Eastern District of Virginia’s decision in Dorel v. Arel where the court punted on the “issue of whether a domain name is personal property subject to [a lien]” because the judgment creditor could take advantage of an easier, practical solution: “the registrar’s policies.”)

Kremen v. Cohen: Enter Kremen v. Cohen, decided by the Ninth Circuit in 2003. Kremen cast a shadow over Umbro. Kremen involved an action for conversion where the underlying property was a domain name. One of the big questions in front of the court was whether a domain name was property which could support a claim for conversion. The court pretty definitively answered that a domain name was property and therefore could support a claim for conversion. Following Kremen, courts started to realize that since domain names are property, they should be subject to the claims of judgment creditors. (See Office Depot, Inc. v. Zuccarini, 621 F. Supp. 2d 773 (N.D. Cal. 2007).) More recently, in Bosh, Judge Florence Marie-Cooper of the Central District of California allowed Toronto Raptors basketball player Christopher Bosh to seize a slew of domain names held by Luis Zavala, based on a cybersquatting judgment obtained by Bosh.

The key conceptual question to resolve is whether domain names are freely transferable, or whether domain name registration services are contracts personal to the registrant. Given the emergence of the flourishing secondary domain name market, you would think there would be no dispute as a practical matter as to whether domain names are freely transferable. But it’s not as hard you may think to encounter people who argue that domain names are just personal contract rights. For example, in 2009, Network Solutions took this position in the Kentucky domain name case where the Kentucky AG tried to seize numerous domain names based on the fact that they were “gambling devices” used in contravention of Kentucky law. (See pages 7 through 11 of their amicus brief filed in Kentucky: [pdf].) The Kentucky AG’s decision was on questionable legal grounds for a variety of reasons, but I was surprised to see Network Solutions’ reliance in its amicable brief on Umbro.

From a practical standpoint, the big question is whether a judgment debtor has assets that can be sold to satisfy a judgment. If there are such assets (whether in the form of domain names or otherwise), most courts are going to find a way to let the judgment creditor get at them. There may be tweaks around whether the particular statute in question covers a certain type of property (see, e.g., Palacio Del Mar Homeowner’s Association, Inc. v. McMahon, 174 Cal. App. 4th 1386 (2009) (domain names are not subject to “turnover order,” coincidentally, the same type of order Bosh obtained)), but it’s a mistake to see these cases as somehow rejecting the theory domain names are properly subject to the claims of creditors. One caveat: even if domain name registration services are not contracts personal to the registrant, not every domain name can be easily bought and sold. As discussed in a moment, certain types of domain names – including potentially those involved in Bosh – are tougher to monetize without stepping on the toes of third parties.

Process Questions: In Bosh, the domain names all related to the names of famous athletes and celebrities and were ordered “turned over” to Bosh. Bosh plans on distributing them to other athletes whose names the defendant was squatting on. (Bosh plays for the Toronto Raptors and the defendant squatted on the names of Bosh and many other athletes.) Bosh is somewhat atypical since Bosh didn’t really care about satisfying the judgment he obtained and probably will not undertake further efforts to collect. But one of the problems with Bosh is that it doesn’t set any sort of process to value the domain names. Is the defendant’s judgment satisfied based on the turnover? Who is to say? A turnover to Bosh is sort of an awkward result, and seemingly precluded by the statute (see McMahon), but Zavala was not around to contest the issues, so it is what it is.

A related problem is that Bosh would have a tough time selling the domain names, given that there would be little guarantee that any purchaser would steer clear of engaging in the same conduct that the defendant did in Bosh. The court in Zuccarini alludes to this. (See Zuccarini, 621 F. Supp. 2d at 778, fn. 7.) It’s unlikely a court would ever conclude this, but if Bosh decided to auction off the names that were turned over, would he be treading close to the cybersquatting line?

Back to the typical case. Some would argue there’s some sort of non-infringing use for all domain names, and that it’s up to the purchaser to figure out non-infringing uses. There are plenty of established auction houses that regularly deal in domain names (e.g., Moniker; Sedo). The best bet is to sell a domain name through a court-blessed third party auction. Theoretically, the market price at an auction will accurately reflect the assessment of purchasers as to how the domain name can be used. I guess a very rough analogy is that real property is freely exchangeable, but you can only use it without injuring the rights of your neighbors. No one argues based on the hypothetical nuisance claims of neighbors that real property is not freely exchangeable and therefore not subject to the rights of creditors.

At the end of the day, there are plenty of issues around the fringes, but domain names are likely not off limits for judgment debtors based on the theory that domain names are not “property”. Most courts will find a way to let judgment creditors get at domain names. That’s not to say that the process of seizing the names and disposing of them does not raise thorny issues.

(c) 2009 DomainNameNews.com

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Original post by Venkat Balasubramani

Rob Monster announced on the Epik.com blog today that expiring domain name service provider JustDropped.com has been purchased and will be incorported in to the Epik.com offerings. JustDropped claims to receive 400,000 monthly unique visitors and have 42,000  email subscribers.

Monster and JustDropped.com creator Dan Rubin plan to make improvements and updates to the site, expand the drop catching capabilities and further integrate services in to the existing services of Epik auctions.

Monster states on his blog that “I like drop-catching even more now that large numbers of worthwhile names are being dropped on a daily basis.”   With many registrars moving domains in to auctions before they actually drop, DNN has seen the quantity of good dropping domains take a huge dive.  There are still good domains dropping but this market seems to be one that is dwindling not growing.

(c) 2009 DomainNameNews.com

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Original post by Adam Strong

Sedo today announced it has acquired the parking company ParkingPanel.com, a domain monetization service provider that is well known for working with large domain portfolio owners and hosting companies to increase revenue.

Sedo will be incorporating the ParkingPanel.com brand into its own, transitioning ParkingPanel.com’s members to Sedo’s platform by the end of the month.

“This is an excellent opportunity for Sedo to extend our parking program’s industry leading services to ParkingPanel.com’s customers,” said Tim Schumacher, the CEO of Sedo. “We look forward to a smooth integration of the ParkingPanel.com brand into Sedo’s community of domain buyers and sellers. This acquisition is another example of Sedo’s commitment to sustain growth and increasing our membership throughout the year.”

The terms of the deal were not disclosed.

[via Sedo]

(c) 2009 DomainNameNews.com

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Original post by Chad Kettner

EuroDNS and Michau Enterprises Limited - a Cyprus company operating Aftermarket.pl - have teamed up to offer improved aftermarket services. The partnership will see EuroDNS license the marketplace software that is currently being used on Aftermarket.pl - which has a premium interface for buying and selling domain names as well as offering additional services such as domain dropcatching, parking, registration, and tasting - and use it in future domain aftermarket websites such as the yet-to-be-released website DomainAuctions.com.

“Having access to the domain marketplace software will allow us to rapidly offer various domain aftermarket services to our customers”, said Xavier Buck, CEO of EuroDNS. “The software is already being used successfully in Central European markets, and since it supports multiple languages, currencies and domain registries, it is a perfect solutions for our needs.”

EuroDNS plans to open several domain aftermarket websites by the end of the year based on this technology. No word as of yet on whether or not it will be integrated on EuroDNS’s partner site Fusu.com.

[via EuroDNS]

(c) 2009 DomainNameNews.com

Upcoming Domain Industry Events, Conferences & Auctions

Original post by Chad Kettner

Do you have quality domain names sitting around that you want to sell for top dollar? Fusu is still accepting domain submissions for the online auction starting August 13 at Domain Convergence 2009.

“You can present your domains to the very successful domainers that DomainConvergence attracts,” says Frank Michlick, the founder of DomainConvergence. “These are people who are serious about investing. Good offers are very likely to sell quickly at or above your asking price.”

Interested sellers can submit their domain names with a fixed asking price and the best offers will be hand-chosen for the exclusive auction taking place on August 13 and 14. Any domains that aren’t sold at the conference will be offered to the general public for a period of seven days following the event.

“Fusu has a proven history of connecting domain owners with investors,” says Tobias Ratschiller, co-founder of Fusu. “The crowd at DomainConvergence gets a list of hand-picked offers.”

If you are interested in submitting your domains, visit www.fusu.com/dc.

Full Disclosure: Frank Michlick, the Chairman of DomainConvergence, is also an editor with DomainNameNews.com.

(c) 2009 DomainNameNews.com

DomainConvergence | August 12-13, 2009 | Toronto, ON, Canada
Keynote speakers: The Castello Brothers on "Branding your Domain"
Christian Heilmann, Developer Evangelist, Yahoo!

Original post by Chad Kettner

Since the general availability phase of the new .TEL domain started on March 24th, the registry has now already passed 100,000 registrations according to insider sources. A 6-12 hour delay in new domain propagation, seems to confirm the high registry load. It seems that many investors, speculators and other registrants flock to the launch of the new TLD due to the availability of one-word generic domains and the supposed SEO potential of the domain.

(c) 2009 DomainNameNews.com

Upcoming Domain Industry Events, Conferences & Auctions

Original post by Frank Michlick

Domainers will have the chance to rub shoulders with Hollywood celebrities and athletes at DomainSponsor’s fundraising event for Autism Speaks, which will be held at the Playboy Mansion on Thursday, January 29, during DOMAINfest Global.

Some of the celebrities and athletes planning to attend the event include Brady Anderson (Cleveland Indians), Kenny Lofton (Cleveland Indians), Jose Canseco (Chicago White Sox), Clyde Drexler (NBA Hall of Famer), Sugar Shane Mosley (boxer), Bernard Hopkins (boxer), Brian Bosworth (NFL), Orlando Jones (actor and comedian), Brande Roderick (actress and Playboy playmate), Claudia Jordan (actress and model), Alana Curry (actress and model), and Rebecca Grant (actress and model).

The fundraiser event, called “Model Citizens”, is the official farewell party for DOMAINfest conference attendees.

(c) 2009 DomainNameNews.com

NameDrive is introducing 6 new innovative templates.

Original post by Chad Kettner

Joichi Ito, the CEO of Creative Commons and a close friend of Elliot Noss, has been appointed to the Board of Directors at Tucows.

“We are honoured to have one of the most influential leaders in the global Internet community join our Board,” said Noss, the President and CEO of Tucows. “Mr. Ito brings to Tucows a unique understanding of the Internet’s impact on business and society. We look forward to his strategic guidance and counsel.”

While serving on the ICANN board in 2005, Ito wrote an article referencing domain name parking as cybersquatting and emphasizing the need to get rid of domain tasting stating: “I wonder if there is any way to close this loophole that effectively enables a no-risk business. I think these monetization businesses are a net-negative value to the community and seems like a loophole exploit. On the other hand, refunds are a legitimate service for legitimate registrants. It is VERY difficult to tell the difference between a legitimate and illegitimate registrant.”

Today’s news, of course, is coming on the heels of the recent flack Tucows received for warehousing domains (more info here, here, and here).  Time will tell whether Ito’s position on the board will make a difference at Tucows and whether his previously stated opinions on domain monetizaiton still hold true.

Aside from Creative Commons; Ito is also…

• The co-founder and board member of Digital Garage…
• The CEO of Neoteny, a venture capital firm that invests in Internet technologies and service…
• On the board of Technorati and helps run Technorati Japan…
• A researcher at the Keio University SFC Research Institute…
• The Chairman of Six Apart Japan, a blog software company…
• On the board of several non-profit organizations including The Mozilla Foundation, WITNESS, and Global Voices…
• The proud Guild Custodian of the guild “We Know” in the World of Warcraft…

“Tucows is a true pioneer in the domain name and Internet services space,” said Ito. “I look forward to participating in my role as a member of the Tucows’ Board of Directors as the company continues to innovate and grow.”

[via joi.ito.com]

(c) 2008 DomainNameNews.com

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Original post by Chad Kettner

After news hit that they were running low on cash, Live Current Media (OTCBB:LIVC), a developer of numerous high-profile e-commerce websites, was able to raise $1.06 million by selling 1.63 million units through private placement at $0.65/each.

Investors - including Live Current CEO and chairman, Geoffrey Hampson; President and COO, Jonathan Ehrlich; Chief Corporate Development Officer, Mark Melville; and numerous outside investors - paid 65 cents per unit for the shares which closed at only 51 cents yesterday. Each unit also includes a two-year warrant to purchase one-half of a common share at a 20% premium to the unit price and a three-year warrant to purchase one-half of a common share at a 40% premium to the unit price.

“This financing, in addition to the expected proceeds of the previously announced sale of up to six non-core domain names,” explained Hampson, “is consistent with management’s strategy to ensure that sufficient cash resources are available to meet our obligations through the end of 2009 while minimizing dilution for existing investors.”

According to Live Current’s blog, “a second tranche for additional proceeds of up to $1 million is expected to close within the next 15 days.” It is also believed the company will sell Brazil.com, Vietnam.com, Indonesia.com, Malaysia.com, and GreatBritain.com in an effort to continue developing Perfume.com, Cricket.com, Importers.com, and the rest of their premium domains.

[via Live Current Media]

(c) 2008 DomainNameNews.com

Camera.co.uk , Saws.com , Medicinas.com , Coed.com - All For Sale at Aftermarket.com Online Domain Auction November 20th . Click here to register for the auction.

Original post by Chad Kettner

Poker website DoylesRoom.com released a statement to customers today (PDF) informing them that the site would begin blocking access from several States starting October 30th.  Illinois, Indiana, Louisiana, Michigan, New Jersey, New York, Nevada, Oregon, South Dakota, Utah, Wisconsin, Washington and of course Kentucky were listed as the States that whose IP addresses would be blocked from accessing the poker client from DoylesRoom.com

According to a previous article about Doyles the site was shut-down following the passage of the Unlawful Internet Gambling Enforcement Act. They relaunched later using a new software ran by Microgaming Networks. Microgaming’s site confirms in a press release that Doyle’s began using their services in 2007.  It is likely that all sites that use Microgaming software will also begin blocking access from these States. A cached page on onlinepoker.org shows that Eurolinx Poker has also made this announcement.

The release follows on the heels of the Kentucky domain name hearings.  DoylesRoom.com was one of the domain names that was listed in the 141 domains that were ordered to be seized by Kentucky.  During the hearings, an argument was presented that these sites could begin blocking access from specific IP addresses to prevent access from users in Kentucky and other states.  Judge Thomas Wingate ordered that the domain seizure be upheld unless representatives from these sites could demonstrate access from Kentucky residents was being prohibited.  By adding Kentucky and 12 additional states to the list of banned IPs, it appears that Microgaming is playing it as safe as possible.

According to PokerPages, yesterday Merge Poker Network became one of the first poker providers to begin blocking access from Kentucky.

Thanks to a DNN.com reader for tipping us off on these developments.

(c) 2008 DomainNameNews.com

Visit our Calendar of Domain Industry Events.

Original post by Adam Strong

I was up late last night cruising through the 44 page docket from the case involving the 141 gambling domain names seized by the state of Kentucky.  This is a landmark case in my opinion and I wanted to read some of the fine print.  It’s pretty clear that this case will be setting some major precedent regarding jurisdiction and domain name use, but there was something else that caught my eye in the document. The groups involved in the case made several points in their efforts to have the case dismissed, but a discussion on domain names being considered property is the one that made me look twice.

The court discusses the issue of domains as property on about page 12 of the docket.

“The Opposing Groups and Lawyers . . . collectively assert that domain names are akin to a telephone number or a business or residential address only; that domain names are but a combination of letters and numbers, which serves as a mnemonic aid, nothing more. They argue that domains are not property, but are rights in a service contract.”

The docket continues for 3 pages discussing this argument and the court reaches the final conclusion

“the Defendants 141 Domain Names are property, and therefore subject to this Court’s in rem jurisdiction or to possible civil forfeiture”

It’s no surprise that the court ruled that domains are property.  What is surprising is who was among this “Opposing Groups and Lawyers”.  According to page 4 of the docket Network Solutions (NSI) and the Internet Commerce Association (ICA) were lumped in to this group.   The ICA, a group consisting of mostly domainers and domain companies, and NSI, a domain name registrar have joined with other gambling industry groups such as PPA, IGC, and IMEGA to present arguments in this case.  Recognizing these entities are not actually plaintiffs, the court grouped them all together and classified them as “Opposing Groups and Lawyers” and did provide for their views to be considered. These views are expressed in this case as “domains are not property”.

It isn’t 100% clear that every member of the “Opposing Groups and Lawyers” view things this way but the phrase “collectively assert” certainly makes it sound like all of the groups had agreed on this argument.

Does the ICA and NSI think domains aren’t property now ?  That argument can be made but it doesn’t seem like one that would come from either group.  In a previous incarnation of the ICA website, the organization states that one of ICA’s issues is that “Domains be recognized as private property and domain owners have the rights of private property owners”.  This exact text was not to be found on the latest version of the ICA site, so it is possible they have completely changed their views on this issue.

Is NSI now claiming domains aren’t property as well ?  In the very case that is referenced in the Kentucky docket, Network Solutions all but concedes that domains are property.  In page 10 of the Sex.com case the court points out that Network Solutions recognizes and acknowledges domains are property

The preliminary question, then, is whether registrants have property rights in their domain names. Network Solutions all but concedes that they do.This is no surprise, given its positions in prior litigation. See Network Solutions, Inc. v. Umbro Int’l, Inc., 529 S.E.2d 80, 86 (Va. 2000) (“[Network Solutions] acknowledged during oral argument before this Court that the right to use a domain name is a form of intangible personal property.”); Network Solutions, Inc. v. Clue Computing, Inc., 946 F. Supp. 858, 860 (D. Colo. 1996) (same).

There’s nothing to point to other than convenience or a missed opportunity as a reason NSI and ICA are linked to this poor argument.  Whether they conveniently switched their stances isn’t clear, but they also didn’t stop the argument from being made. Both NSI and ICA should know that the courts have previously recognized domains as property.  The gambling groups can be excused from ignorance on this matter as it may not be their strong suit, but one would think that this is where the ICA and NSI cold have helped the collective effort.

Joining with this group to argue a point that has been clarified and/or not preventing the argument from being presented could be considered negligent.  Arguing against something that you are on record for supporting also seems foolish. Hopefully, at a minimum they both can clarify why this was argued or why the change of stance was taken here.

ICA and NSI should still be commended for their efforts to fight a case that has the potential to change domain ownership responsibilities as we know it. Few outside of the gambling companies and those involved in the domain space realize the importance of this case and how it has the potential to impact their business.  Let’s hope they can make a stronger case.

(c) 2008 DomainNameNews.com

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Original post by Adam Strong

Domain Strategies, has announced its most recent website launch - Tanning.com, a marketing and information portal for tanning salons in the North America.

The website is intended to benefit salon owners who have found it difficult to market themselves on the internet. Owners will receive a customizable profile page to highlight their products and services, inclusion in the most comprehensive database of tanning salons in North America, and new customers due to the future brand building planned for Tanning.com and its inevitably strong search engine positioning.

“After speaking with dozens of tanning salon owners, it was clear that they wanted help using the internet to get the word out about their products and services,” explained Joe Snell, CEO of Tanning.com. “We paired the best domain name in the space, Tanning.com, with a site that contains objective information about tanning, a national directory of tanning salons and an innovative model for sending new customers to the salons. It???s a win-win-win for everyone involved.”

Domain Strategies partnered with Q3 Capital - who donated the domain name - to create Tanning.com.

[via Domain Strategies]

(c) 2008 DomainNameNews.com

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Original post by Chad Kettner

For a limited time, you can invest in Mexican domain names for a discounted price! Registry .MX is offering a special September rate for all new registrations - and the longer you register the domain, the more you’ll save. The best deal works out to only $6 USD/year for 5 years!

Mexico’s ccTLD consist of third-level names below second-level names. If you live outside Mexico, you can only register a .com.mx domain name. However, if you meet certain requirements you could also register a .net.mx, .org.mx, or a .edu.mx domain name at this price.

Visit Registry .MX to take advantage of this special offer. If you’re having trouble reading Spanish, you might want to use the Babelfish translator along the way.

Disclaimer: The .MX registry is an advertiser with Domain Name News.

(c) 2008 DomainNameNews.com

Domain Convergence, October 6-8, 2008, Niagara Falls

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Original post by Chad Kettner

Ten Emerging Beliefs and the Opportunity They Present

Domain conferences share a commonality during which, over time (turbulent times no less), certain conventional wisdoms begin to emerge as the industry matures and infrastructure solidifies. In other words, the more the industry coalesces and becomes viable and full, the more common beliefs come into play and perception becomes a central figure.

Trips to shows this year and all the conversations that went on behind the scenes produced many threads or commonly held and generally agreed upon principles that can help provide guiding light in an uncertain future.

Now, eighteen months ago, this would have been a different article, with different results and beliefs – ultimately, this is a testament to the cycle that is the domain business. Yes, domains too are subject to cycles and those around long enough have weathered a few with their dot com raincoats.

To wit, the current cycle (low with seasonal and economic effects piling on) has cleared up a bit, allowing us to make the following ten potential ‘statements of state’.

1. With recent Yahoo changes, arbitrage is on its last legs and may have hurt domainers on a large scale - arbitrage is always a declining strategy (not even an asset) as word spreads.
   
   
2. Premium domains (premium and brandable generics) are here to stay.
   
   
3. Sub-prime, replaceable domains continue to lose value. Large chunks of registered names have dwindled to ‘caveat empty’ at base prices.
   
   
4. ccTLDs are the next best choice after .com.
   
   
5. A true shift from traditional TV advertising has begun, led by the Fortune 1000.
   
   
6. .TV has its place yet development is likely a necessary adjunct to the formula.
   
   
7. True development (requiring innovation on some level) is expensive and difficult – the industry having yet to produce a ‘home run’ on the development side (outside industry providers).
   
   
8. Traffic, traffic, traffic as always BUT there is a change going on – with a focus on ‘eyeballs’ as opposed to ‘clicks’ from the Fortune 1000. This is the effect of #5 above as they apply the same principles to the Internet as they did the tube.
   
   
9. The middleman’s influence in the marketplace is shrinking and naturally so - and largely by their own failings. At some point, competitive saturation and strategy combined with fraud, budgetary needs and simple intelligence will push more advertisers directly to the owners. Sendori may be the key figure here.
   
   
10. European domainers are far more skilled in monetization than their American colleagues. Without PPC, they have turned to development and sponsors and networks – they can teach us much in a shaky PPC environment.

It must be pointed out that while some of the above can be considered ‘good news’, I must continue to stress the need to de-generalize our domain discussions. The above points to specific classes and not ‘domains’ as an entirety.

In short, those with premium and brandable generics, geo-domains, prime ccTLDs and .TV have brighter days ahead on the monetization and resale side. Others holding long names, alternate extensions, TMs, typos or generally subpar domains should be looking over their shoulder.

Point being that the above can be a valid road map to the current state if you are not caught up in the generalization and can plot a unique course. These simple statements open mountains of opportunity – that is, if you can read between the lines and extrapolate it forward in time.

M. Fiol is a regular DNN contributor and DomainConsultant.com analyst. He also runs and is CEO of HappyBirthday.com.

(c) 2008 DomainNameNews.com

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Original post by M.Fiol