WHAT IS A TRANSFER OF A DOMAIN NAME

A Transfer of a Domain Name is a written contract that provides the terms and conditions that relate to the transfer of a domain name from one entity or person to another. The laws today consider a domain name as a piece of personal property that can be bought and sold in the same manner as other personal property. Although this type of transfer would have been unheard of a generation or so; today businesses fiercely compete to purchase domain names that can provide them with an edge of their competitors and launch their business into higher profit markets. Although some domain names can be bought for a dollar there are also those domain names that sell for millions. For example, Las Vegas.com sold for 90million and Internet .com was a bargain at 18 million. A Domain Name Transfer is also called A Domain Name Assignment Agreement. The transfer can be on its own or it can be an integral part of a larger assets transfer.

WHEN DO YOU NEED TO TRANSFER A DOMAIN NAME?

A transfer of Domain Name Transfer is needed if a person or entity wants to sell or buy a domain name.

The transfer and purchase of domain names is a very lucrative business and there are individuals that concentrate on “flipping” domain names in a similar manner that investors “flipped” houses and real estate during the housing boom.

A domain name can carry particular value for a business and can also generate considerable traffic if it relates to keywords already searched for on the Internet. Securing and protecting the ownership of a valuable domain name can be a key business strategy.

WHAT SHOULD BE INCLUDED IN A TERM SHEET?

A domain name transfer of ownership should include:

• The transfer document should include the names and identifying information of the parties.

• The domain name.

• The agreed upon sale price.

• A statement that the seller is the true owner of the domain name and that there are no impediments or encumbrances that would adversely impact the sale.

• Information and description of any other items the seller may have offered to include with the domain name.

• Requirements for escrow and or payment arrangements to be completed before the transfer is recorded on the Registry if parties so request.

• The date the transfer will become effective.

• A mutual statement of confidentiality.