Approaching end users to sell .au domains - Ok or not?

[Lucas]

This is a question I have been wondering for a while. Is it ok to approach end users to sell them a .com.au domain name that is relevant to their business?

Given the AUDA policy:

"Prohibition on registering domain names for sole purpose of resale
8. A registrant may not register a domain name for the sole purpose of resale or transfer to another entity."

It have always assumed that approaching end users in the .au namespace was not possible, or at least quite dangerous, because regardless of whether you did register the domain with genuine intent to develop it or not the end user could argue you had not intended to develop and you would effectively have no way of proving otherwise. As with many parts of the AUDA policy regarding .au domains it seems to be a grey area which provides domainers little protection.

I have however read about people approaching end users about .com.au domains with good success (eg. neddy with dojo.com.au)

So interested to hear other peoples thoughts on this issue.

 

[soj]

This is a question I have been wondering for a while. Is it ok to approach end users to sell them a .com.au domain name that is relevant to their business?

Yes it is. Absolutely. (Assuming of course you're not trying to take advantage of any IP rights they may have; or contravening any other auDA policy).

This is the latest policy: http://www.auda.org.au/policies/auda-2011-03/

3. CIRCUMSTANCES OF TRANSFER

3.1 A registrant may:

a) offer their domain name licence for transfer (or “sale”) to another eligible entity, by any means; and

b) transfer their domain name licence to another eligible entity, for any reason.

Please Note: Under the Domain Name Eligibility and Allocation Policy Rules for Open 2LDs, a registrant may not register a domain name for the sole purpose of resale or transfer to another entity. Where a registrant is found to have breached this policy rule, auDA reserves the right to cancel the domain name licence and delete the domain name.

However, if you continuously buy domains one day and try and flog them the next day (and come to auDA's attention), then you may well
fall foul of their provision: "a registrant may not register a domain name for the sole purpose of resale or transfer to another entity".

Having said that, auDa are not mind readers; and secondly, people's circumstances change all the time. What may have seemed like a good
acquisition a few weeks back could become "no longer required" because of other projects or circumstances.

 

[Lucas]

Thanks - that is good to know!

 

[findtim]

Admin, you state:

Please Note: Under the Domain Name Eligibility and Allocation Policy Rules for Open 2LDs, a registrant may not register a domain name for the sole purpose of resale or transfer to another entity. Where a registrant is found to have breached this policy rule, auDA reserves the right to cancel the domain name licence and delete the domain name.

I happen to know of someone, a competitor, that has registered what i'm guessing is @ 5000++ domains , his online activities suggest to me he is doing exactly what you say is not allowed, of course i will not dob him in.......thats not my style, but i wonder how the auda could possible control this?

if he succeeds in what i think he is about to do he will cost me ALOT of money for my clients. although he seems stagnant at the moment?

My first thoughts were to register domains to block his expansion but the auda are saying that would mean i am buying domains to then sell them ? do you see the delema?

I'm confused? how does this auda rule fit into the "buy build sell" analogy? aren't they a contradiction? and if it is then why is there drop.com.au because doesn't that make purchasing a domain illegal?

or am i just on the wrong track here?

i've just bought legally 3 domains from drop.com.au, the domain names have NOTHING to do with me or my skills, they are about a professional university skill which i have NO degree in, yet i was allowed to purchase them. I intend to bbuild the sites and then sell them, given the rule above what i intend to do is illegal? but if i do not sell them then i can go for it forever?

have i got it all wrong? please tell me before i waste my time on this but if i am wrong then drop.com.au is wrong.

AAAAH,or is there a differnce between a registration and a purchase of an existing domain?


i hope that makes sense and i am prepared for the onset of replies !!


so many questions sorry.

 

[soj]

Admin, you state:

Please Note: Under the Domain Name Eligibility and Allocation Policy Rules for Open 2LDs, a registrant may not register a domain name for the sole purpose of resale or transfer to another entity. Where a registrant is found to have breached this policy rule, auDA reserves the right to cancel the domain name licence and delete the domain name.

All very good questions that you raise Tim. Without quoting every one of them, I will give you my understanding.

• In the quoted policy above, there is one iconic word. That is "SOLE". Read it again with that emphasis.
  
  
• auDA now allows everyone to buy and sell domains (subject of course to their various policies). However, one of the main reasons they kept this paragraph / clause in was to stop anyone from doing the following type of activity:

Example:

Let's say you own a registered business called "Tims Optometrists". You don't have a website yet. Some "speculator" (who is not called Tim and isn't an optometrist) goes and registers the domain name timsoptometrists.com.au and then makes contact with you and tries to sell it to you. You have a legitimate complaint to make to auDA; as Blind Freddy could see that the speculator registered this domain for the SOLE purpose of resale.

Whilst this is one prime example, there are also many "shades of grey".

Conclusion:

If your business model is acquiring domains to park (and maybe get revenue) and then possibly sell; or develop (and maybe get revenue) and then possibly sell; this is perfectly legitimate. Provided of course that you are not contravening any of auDA's policies.

The Domain Monetisation Policy (2008-10) still exists (though it is intended that it be modified and incorporated into another policy in the near future).

Here is the provision that covers your situation:

4. DOMAIN NAMES REGISTERED FOR PURPOSE OF DOMAIN MONETISATION

4.1 It is acceptable to register domain names under the close and substantial connection rule for the explicit purpose of domain monetisation within the category “a service that the registrant provides”. The “service” being provided by a domainer is the service of providing users with information and advertising links about the subject matter of the domain name.

IMHO.

 

[johno69]

I'm confused? how does this auda rule fit into the "buy build sell" analogy? aren't they a contradiction? and if it is then why is there drop.com.au because doesn't that make purchasing a domain illegal?

or am i just on the wrong track here?

The BUILD addition makes everything ok. Even if as Ned said, its build a parking page etc etc. It's not illegal to purchase domains for the purpose of parking to raise revenue.

if he succeeds in what i think he is about to do he will cost me ALOT of money for my clients. although he seems stagnant at the moment?

Sorry couldn't find an ALOT of money

 

[acheeva]

Very good explanations. Thanks guys.

 

[findtim]

So "bradpittoptometrist.com.au" would be a bad thing to register as my name is tim but "losangelesoptometrist.com.au" would be ok ? because their could be 100 optometrists in LA and dear old brad can still have his name if he wants.

 

[johno69]

Exactly.

 

[findtim]

so to expand on this as i don't want to do anythign wrong, what if george clooney optometrist has a registered business name "los angeles optometrist " ?

should i be checking that first? or is tough luck for george because by now he should have registered that name ?

 

[johno69]

You wouldn't have much to worry about. It's too generic a term imo.

 

[soj]

"bradpittoptometrist.com.au"

george clooney optometrist

Would you stop giving "tennis players" as analogies - you're confusing me.

 

[findtim]

sorry, i just watched "oceans 13 " the movie last night so they were "top of mind " actors, also i didn't think it good to mention real domains as this is is specific to me and not the ones you and me dealt with as i have another 60 sitting in the wings.

plus, i plan to buy another 40 very soon so as always i want to do things right.

----------------

have you heard of the latest russian female tennis star?

Iliker Ivanthosheizavitch

tell me if you get the joke

 

[soj]

have you heard of the latest russian female tennis star?

Iliker Ivanthosheizavitch

tell me if you get the joke

I have been trying to decipher it but can't.

Please put me out of my misery.

 

[findtim]

i like her , even though she is a bitch

 

[soj]

i like her , even though she is a bitch

 

[soj]

So "bradpittoptometrist.com.au" would be a bad thing to register as my name is tim but "losangelesoptometrist.com.au" would be ok ? because their could be 100 optometrists in LA and dear old brad can still have his name if he wants.

Hey Tim - bradpitt.com.au dropped today. Ring that optometrist mate of yours .........

 

[findtim]

what did it drop for? $$$

i saw HEAPS of overseas stars domains and if MY nmae actually was brad pitt then that would be good but i am puzzled why it as a .com.au is worth any money?

 

[soj]

what did it drop for? $$$

No one purchased it - very wisely imo. Asking for trouble.

 

[findtim]

unless your name IS brad pitt, true?