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Question for a Domain Name Guru?

         

ahlberg

4:13 am on May 13, 2003 (gmt 0)

10+ Year Member



Long story short:

I own a automobile dealership, not real (too embarassed over this mess to say which) but for sake of arguement we'll call it "<no specifics please>". We have been in business for 3 years, however our name "is not" trademarked.

Last week we decided to expand our marketing to the web and were planning on registering the domain name <no specifics please>.

Ironically, today we receive a letter from someone that is telling us that they registered and own the name <no specifics please> and if we want to purchase it from them we can for $1,300.

What should I do? Do I have any recourse? Threaten suit? I feel like I'm being muscled.

Thank you for any help as I'm new to this.

[edited by: toolman at 4:20 am (utc) on May 13, 2003]

Jenstar

4:58 am on May 13, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



As far as domain names go, there have been many cases where people have purchased "brand name" or "trademarked name" domain names, in speculation, in hoping that the trademark owner will want to purchase it back from them. There have been cases where these speculators will watch the published registered trademarks, then go ahead and register domain names in hopes that the trademark owner will want to buy it for a large amount of money (prices usually seem to start at about the $1000 mark, and go up, up, up, depending on the name).

Could this person have registered this name as a speculator? Did the current holder buy this name specifically because he felt he could sell it to you at a profit one day? If so, you may have a case, but it will probably cost more than the $1300 asking price to do it. And because you haven't actually registered the trademark, the court would probably side with the speculator, regardless if he bought it for the possible extortion value or not.

If I were you, decide how truly valuable this name is to you. Is it worth the $1300? Instead of yourbusiness.com would your-business.com work instead? Or you could also go with a .net, .org or one of the others. What is currently hosted on this site now? Does he run his own business, which is also called yourname.com in his own state, but feels that selling the name for that price would be worth it?

These are all things to consider.

twoline

6:09 am on May 13, 2003 (gmt 0)

10+ Year Member



Filing a UDRP dispute over a domain will cost you more than $1300 and take many months. And without a (R), you'll have a tough time winning.

Jenstar is right on about looking at other names, with hyphens or with other TLDs (.net, .us, .biz, etc.)

Go ahead and register the .net and a hyphenated .com and offer the squatter $300, letting him know that you've registered the other names and if he doesn't accept the offer, you'll publish your site elsewhere...

Good luck, and don't feel too bad. This has been going on for a long time.

ahlberg

1:17 pm on May 13, 2003 (gmt 0)

10+ Year Member



Thanks so much for you help.

What about this though? I have done a little due diligence...it seems that I may be able to get some relief, and maybe a favorable ruling, through ICANN or WIPO, against this person?

I mean after all this guy, registered our name in bad faith and is now trying to sell it to us.

Thanks Again:)

Jenstar

3:20 pm on May 13, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Do you have proof that this person registered your name in bad faith? For example, is this person a customer of your bricks and mortar store? Did he register it with full intentions of trying to sell it to you as a profit, or do you think it was a mere coincidence, and he simply offered it to you because he found you. Have you checked the whois to see if you recognize who registered it (although it could have false information in the registrar's contact field). Did he register it one day and then offer to sell it to you the next? Or has he been holding on to it for three years? Or do you feel it was bad faith simply because you want it ;)

You also have to consider this - are you wanting to take action to prove a point? If so, go ahead and file a claim.

The price point of the domain name at $1300 is probably well-chosen, rather than just a figure out of a hat. It will cost you a minimum of $1500 US to file with WIPO for the domain name dispute (and will cost $4000 if you want to change from a single panelist, to a panel of 3). Most domain disputes seem to be filed through WIPO rather than the few others out there. I know at least one of the ICANN approved companies for domain name disputes is $1150 to file a dispute.

Any way you slice it, it is going to cost you at least $1150 to do it, and there is still the chance you could lose your dispute (which I think there would be a good chance, from what you told me). Not to mention all the prep time, appearing for it, etc. If it were me, I would either just buy the name from the seller, or go and find myself a different domain name to use.

ncsuk

3:23 pm on May 13, 2003 (gmt 0)

10+ Year Member



You could of just register a name similar to it or with a different extension and tell him where to stick the domain name.

I have the same problem with the .com for my company name but I though stuff it ill buy the .net instead as I do internet stuff.

When it expires I may get it and i've told him I don't care and laughed at him. He got quite upset actually and annoyed that I wouldn't buy it off him. Serves him right really.

elgumbo

3:41 pm on May 14, 2003 (gmt 0)

10+ Year Member



If you really don't want to pay :

Register a different name, slap a Snapnames on the "original" domain and tell him you don't want to buy it. Unless he finds another company with the same name who wants to buy it it's costing him money to keep hold of it.

typein

4:16 pm on Jun 12, 2003 (gmt 0)

10+ Year Member



Ahlberg .. i am a little confused you recieved a letter offering to sell you the domain name that you were trying to register .. correct?

Q.1. what sought of letter was it snail mail or email.

Q.2. how would this person know that you were trying to register this domain .. did you contact him .. if so how did you find him .. whois?

Q.3. is your name a generic term or is it your company name ie .. joe blows car sales ..

Q.4. when did this person register the domain name ..

Q.5. were you approached by him with the offer to sell you the name .. or did you approach him asking how much did he want for the name.

There is more .. but these are the essentials .. every name that is not taken / registered is entitled to be registered on a first come first served basis by anyone.

The above questions are relevent to your chances of success under UDRP.

Jon_King

2:02 pm on Jun 30, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I had the same unscrupulous thing happen to me.

Since the domain was just a start up, I simply registered the .net version and built on that. The .net domain rules all serps.

I do wish I had the .com especially since I did own it and accidentally let the registration lapse. I was on vacation and like a slap in the face, within 1 day it was hijacked and then offered back to me at $880. Like others have said, I started the arbitration route... money, time and more money; so I abandoned arbitration.

These current practices are in the same vein as SPAM. Domain name snatching really has to be stopped. A class in civic duty and social responsibility is in order here.

The registrars should discourage this practice and announce boldly at registration that it is poor netizenship and exhibits a lack of personal integrity. But since their profit is determined by the trading of domain names it is unlikely they will help unless further regulation is threatened.

We have seen very recently what happens to these kinds of people... the no call list that President Bush just signed to law is a prime example.

Certainly speculative domain name buying with the sole purpose of reselling was not the intended result. I hope those responsible for governing this part of the internet will one day realize there is some sort of loophole in the rules and plug it up.

cabbie

1:21 am on Jul 1, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



>within 1 day it was hijacked>
It takes at least 35 days after expiry date now for a domain name to be released to the buying public.
Owners have to start taking responsibility for their own affairs and not expect the powers to be to protect them from mismanagement.
My 2 cents woth.
Alan

Jon_King

11:58 am on Jul 2, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



What you call mismanagement is simply and naively an oversight. 35 days or 1 it is a blatant rip-off. The name in question could not possibly be of use to anyone but me and of course this unscrupulous money monger. His business plan is to hold me hostage.

This behavior exhibits a lack of moral conviction, personal integrity, a character flaw and it is just plain wrong. IMO

Jon