V2X

Domain name prospecting is a very lucrative industry, just like prospecting property, but in the cyber world. Every day thousands of domain names are registered, sold and traded, and we are running out of them, so their value keeps going up. Supply and demand in action, but some people are smart enough to hold on to them until the right buyer comes along. Some call this squatting, but that’s not always the case. There isn’t anything illegal about it unless you are profiting off of someone else’s trademark, or they can prove you bought the name to hold as ransom, which can get you in legal trouble.

The thing that bothers me is we are running out of the popular TLD’s, and as new ones are introduced, people get in trouble with them. You see, as soon as you buy the new TLD, someone holding a trademark will swoop in and have it taken from you. This can cost you a lot in legal fees and having to go to court to fight it. Is that really fair when they are putting these new names on the market for new buyers who cannot obtain the domain name needed for their business? I understand the legal aspect if they are buying it to profit off of someone else’s patent or trademark, but sometimes they file for the name in court before you even use the name.

Some companies, like Facebook and Apple, feel they are entitled to any domain name with an “i” or the word “face” in it, regardless of the TLD or use of the domain name. How is free enterprise to exist online when you can’t buy a name without facing a possible lawsuit?

There are times when a lawsuit over a domain name is needed, but there just seems to be something daily reported in the news about a domain name lost in court for being similar to a trademark, and that’s really scary. If they are going to start a new TLD, then how come the trademarked names are available and not already purchased by the trademark holder? Sometimes I think they do it on purpose after the name has been established, so they benefit from the work put into developing it. Also, there should be a statute of limitations for this reason alone, as they should have bought the name when it was first available.

I know you’re thinking that if I had a trademark, it would be different. I agree to a point, but common sense has to come into play at some point. I have already been through a mild situation with a domain name, but gave it up without fighting it, as I was using it to make money with that organization’s product. At the time, I didn’t know that practice was frowned upon, especially after seeing so many people doing the same thing. I think this is why you see so many people buying domains and setting up news feeds and scraping content to make money with Ad Sense and other affiliate programs. Actually, I know it is, but everyone is trying to make a dollar just like the next guy.

With that said, do your homework before you buy that domain name. You may find that the $15.00 registration fee could end up costing you $15,000.00 in the long run. We really need a better way to monitor and police the domain name industry, especially when there are companies with deep pockets that can fight you until you’re broke, and/or have enough connections in the industry to take your name from you.