Personal Property Securities Register (PPSR)

[acheeva]

This legislation will be in force shortly

It is bit like a car securities register and allows for registration of a security interest (charge) against personal property

This may have implications for domains as it appears that a domain license is a security against which an interest can be registered

(Eg. If you lend me $xxx with a domain license as security, then you can register you interest - as lender / chargee - against that name)

Therefore a PPSR search may be a pre-requisite to the purchase of a domain license

Conversely, it may encourage lender to view domain financing more favourably

Anyone have any thoughts?

 

[Cooper Mills DomainLawyer]

I agree, I was talking about that in my predictions for the year: http://www.dntrade.com.au/your-predictions-t4356.html?t=4356&highlight=Personal+Property

I think as the system beds down we will see lenders (whether or not that includes the big 4 is still unknown) provide financing over IP including trademarks and domain names. Domain financing is currently in place in the US - they already have a Personal Property Security system as does Canada

 

[AnthonyP]

I imagine that it is rather important to know the expiry date of a domain name when using a domain name license as security. Does anyone think the current auDA policy to restrict this information will cause .au registrants problems in this regard?

 

[soj]

I imagine that it is rather important to know the expiry date of a domain name when using a domain name license as security. Does anyone think the current auDA policy to restrict this information will cause .au registrants problems in this regard?

Good point Anthony. Other issues arise as well.

With real property, a lender will be protected by way of mortgage or caveat. Bit harder with domains.

Hypothetically, if I was lending on a domain, I would want to have control over the domain until I was repaid. This would avoid any possible
issues like Client Delete's (by a disgruntled borrower who can't repay).

So I guess as a minimum you would need:

1. A loan document reflecting terms and conditions
   
   
2. A COR into a holding entity e.g. Domain Lender Pty Ltd on behalf of (domain owner). This would also solve the domain expiry problem.

Any other thoughts or suggestions?