Internet World Stats > Internet Coaching > Domain
Names
Your
Piece of Cyber Real Estate
by S. Denise
Hoyle
In a landmark case, the 9th US
Circuit Court of Appeals has just
stated that domain names, despite their virtual nature,
should
be treated exactly as a "plot of land" would be. This is a
huge
victory for all domain name registrants, not just for Gary
Kremen who can now continue his lawsuit against Network
Solutions for allowing the theft of his Sex.com domain name.
NSI had argued that domain names are intangible property and
therefore they could not be held liable for damages. (Kremen
vs.
Cohen Case #01-15899)
This ruling means that
traditional property protections can now
be legally applied to domain names. Further, the ruling
firmly
establishes that domain names are valuable properties and
shows
that old-fashioned property laws also apply to the
registration
of web addresses.
While this ruling may also aid
victims of electronic fraud and
identity theft, this article focuses on the impact on domain
rights. Since domain names are now officially looked upon as
cyber real estate, domain holders should be aware of their
rights and take steps to protect them. For instance, a
domain
name can be extremely valuable on its own - as examples
business.com sold for $7,500,000 and loans.com sold for
$3,000,000. Domain names can also have a "value in use" - an
example of this might be google.com, which doesn't have a
defined meaning and probably wouldn't be worth very much on
its
own, however it provides a valuable service and is ranked #5
in
traffic on the internet and as such has a very high value in
use.
Just as your home or other
property is considered to be an
investment, so are your rights to a domain name. In the event
of
your death your domain rights will become part of your
estate.
If you were to get a divorce, it may be left up to the courts
to
decide who gets to keep the domain name, and whether one
party
will need to pay the other party for half of the value of
the
name.
Since your domain name is your
piece of cyber real estate, it
should be valued in the same fashion as your home or other
property would, using the same tried and true
principles.
Additionally, you should take
any necessary steps to protect
your domain as you would your other properties - such as
including your wishes regarding your domain name in your
will.
Although registrars are now legally responsible for
safeguarding
the rights of domain name holders, domain registrants should
also take all available steps to protect themselves.
About the Author:
S. Denise Hoyle is President and co-founder of
http://getitappraised.com, the domain name portal offering
expert domain name and developed web site appraisal services
from certified appraisers.
© Copyright 2003, S. Denise Hoyle. All Rights Reserved
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