At the point we register a domain, we own the rights to use the domain name for a specified period. However, the domain may change hands from one name or organisation to another at any time. Very often the domain registration company does not charge for this.
This leads many people to speculate with domains, registering names which may be needed by other people or organisations at some point, to then sell them on at a profit. Authentic fortunes have changed hands to register domain names, mainly in the early days of the internet.
Domains do not get sold on for millions of dollars nowadays, as there are multiple combinations and most people use search engines such as Google to find an address. Positioning therefore holds the key. Even so, the domain name is still very important and there are always people willing to pay a little more to get the name they had in mind. Many companies have built their brand around a specific name and logically wish to continue using that name online.
Legal limits
Buying and selling domains is not illegal, although some countries prohibit the registration of specific domain names intended to be sold on to a company or person that may have intellectual property rights over them. According to the Uniform Domain Name Dispute Resolution Policy (UDRP), one party can contest the registration of a domain name by another party if the name or brand is registered. Non-compliance with the policy can lead to confiscation of the domain name, as well as legal consequences. This ICANN policy was conceived to combat cybersquatting, the practice of deliberately registering domain names corresponding to third parties with the specific intention of making money. In some cases, inappropriate use of these domains can also occur, to damage the brand in question.
That said, buying and selling a domain is not always illegal. When the process represents no harm to third parties it is perfectly feasible. Proof of this is the figure of the domainer, an investor specialising in managing domain-name portfolios which, without entering into illegality, speculates with domain names to make money. The activity of domainers is based on registering generic terms which may be of interest to big brands. Examples here might be ‘car hire’, ‘rural tourism’ or ‘home insurance’.
Domainers come up against some limits with registration policies for certain domains. For instance, if we look at the registration policy for the .barcelona domain we find that these must be registered by legal persons or entities with a link to the .barcelona community. Whether for linguistic, cultural, tourist, commercial or other purposes, this means the activity should benefit the .barcelona community. The party registering the domain should first explain the intended use of the domain name in question. These requisites make for lower levels of speculation with .barcelona domains.
