Be Mindful of TMs on .AI Expiry Auctions

Namecheap is now running the .AI expiry auctions following a deal with Identity Digital. It looks like the first swath of expired .AI domain names is hitting the auction block in the next few days.

There are some very good descriptive / generic .AI domain names coming up for auction. Among them are Server.ai, Point.ai, Food.ai, Rock.ai, Drill.ai, Shipping.ai and many more. These are empty vessel domain names, and I think they could each be turned into brands in multiple verticals.

In my opinion, these descriptive domain names are investible assets. In fact, I will probably be bidding on some of the descriptive terms, despite having a higher than usual annual renewal cost.

In addition to these descriptive terms, there also appear to be many .AI domain names that are comprised of trademarks that I think investors would be wise to avoid. For instance, Lexus.ai, Bridgestone.ai, PizzaHut.ai, Tumi.ai, and MrBeast.ai are a handful of domain names where there is an obvious trademark owner that is likely known throughout the world.

While most people would steer clear of this type of domain name, the fact that they are in the expiry stream shows that there are people who took a chance by registering them. They are now expiring. I have no idea if they expired under threat of legal intervention or simply because there was no demand for them. Whatever the case was, registering or buying trademark domain names in the .AI extension with the hope of selling to a TM holder is a fool’s game.

Even trademarks that aren’t as well known could be risky. I am not a legal expert by any stretch, but observationally, it appears that UDRP panelists give less slack to domain registrants when trademark holders file UDRP proceedings for .AI domain names with their trademarks.

Investors need to be mindful of trademarks when bidding on expiring .AI domain names. It’s a risky gambit, and with renewal costs higher than .com and other popular extensions, there is a low probability of success.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

1 COMMENT

  1. Not sure why people would register domains that have obvious trademark issues
    Rookies? Newbies?
    I registered over 150 single word generic .AI domains in 2016. Most of these single words were short and taken in at least 200 extensions. (there was risk as you never know if these repurposed cctld extensions will catch on or never go anywhere)
    At least 100 of those domains have been sold, on the aftermarket platforms or via brokers seeking to buy on behalf of clients.
    I may bid on some of these domains. Inevitably, I’m bidding against well-known domain investors, but if they’re friends, I don’t bid. On NameCheap you can easily tell who the bidders are, based on the monikers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Recent Posts

Saved by the Down Button at NameJet

0
If you bid on auctions at NameJet, you're probably familiar with the up and down arrows in the control panel control panel buttons. These buttons...

Small Hurdle for Prospects When Afternic Self-Brokerage is Enabled

8
I enabled Afternic's self-brokerage option as soon as I heard it went live. I immediately tested it out with one of my own domain...

Self-Brokerage Available to 100k GoDaddy Customers

0
I am sure one of the most popular requests of GoDaddy is the ability to manage inbound purchase inquiries and offers for domain names...

LTO Usage Can Pose a Risk

4
Lease to Own deals have become much more normal in the domain space. LTO deals give buyers the opportunity to use a domain name...

Kicks.com Acquired by Dicks Sporting Goods

3
In early February, I noticed that Kicks.com changed hands. The valuable one word .com domain name had been owned by Reflex, and transferred to...