Why Merlin’s UDRP Win is Frustrating

Earlier today, Andrew Allemann published an article about Merlin Kauffmann’s successful UDRP defense of the FiberStar.com domain name. In this UDRP proceeding, he was represented by domain attorney John Berryhill.

I am glad to see that Merlin’s company won this UDRP. I am also glad to see language in the UDRP decision that favors people who own domain names as investments.  I especially thought this was most relevant to people who invest in domain names:

PanamaPapers.com Registered Last November

PanamaPapers.com

The big news of the weekend were reports about the “Panama Papers.” It seemed like every news outlet had coverage about “roughly 2.6 terabytes of documents, related to hundreds of thousands of offshore companies, leaked from a small, relatively unknown Panamanian law firm called Mossack Fonseca,” as described by TechCrunch.

The PanamaPapers.com domain name was registered in November of 2015. The domain name is registered in the name of Frederik Obermaier, who is mentioned in the TechCrunch article as one of the investigators reviewing these papers. There is a website operating on the PanamaPapers.com domain name explaining what the papers are and advertising a book. The content of the website is written in German, so non-German speakers can read the information by using Google Translate or some other translation tool.

Interestingly, although the domain name was most recently created in November of 2015, it had

Should Company Reps Post News Here?

I want to run something by DomainInvesting.com readers that I have been tossing around internally for a while.

How would you feel about having a representative from major domain industry companies (parking services, registrars, registries, marketplaces…etc) publish news releases and other articles here on DomainInvesting.com?

At first blush, people might see this as

Why Asking For Equity May Not be a Good Idea

I own a few domain names that receive acquisition interest from startups. I’ve always thought it would be neat to sell a domain name for cash plus an small interest in the company that is acquiring the name. If the company is hugely successful, the value of the domain name sale could soar.

After discussing quite a few deals that involved selling a domain name and receiving at least some of the consideration in equity, I have come to the conclusion that there are big issues for both parties.

From the sales perspective, selling a domain name for an equity stake requires the involvement of a good contract attorney that knows how to contractually protect the seller. I wouldn’t want to own an equity stake in an entity that turns out to be a worthless shell. I also don’t want my equity stake to be diluted nor do I want to be required to invest cash into the company, especially if the cash investment is substantial. Finally, I want to make sure I am protected if the startup fails or if the startup faces legal troubles. These are just a few items that need to be considered and negotiated in a deal that involves receiving equity.

Working with a lawyer can be

Why I Am Not Investing in .WS Domains

If you know much about me, you know that I almost exclusively buy and own  .com domain names. I own a handful of non-.com domain names, but the vast majority of my investments are .com domains. I don’t anticipate that will change in the short term.

Yesterday, Braden Pollock published an article about why he bought a self-reported six figures worth of .WS domain names. As you can see, there were a lot of comments, and I think having a public discussion like this is a good thing.

This morning,  I want to share a bit about why I wouldn’t invest in .WS domain names (at least not now).

In my opinion, buying domain names like these is gambling that Chinese buyers will want to buy them at a premium price above what I paid. Buyers based in China seem to be buying a ton of non-.com domain names, and I still don’t understand the Chinese domain investment market. I have seen various extensions selling

Why I Invested Six Figures in .WS Domain Names

I bought a portfolio of more than 200 premium 2-3 character .ws names (CHiPs) because, well, I like making money :-). As every domain investor knows, the Chinese market is on fire. Not only are they buying up short .com and .CN, but they’re buying up many, many other extensions. I think .ws is next. I shouldn’t say “next”, knowing what I know now. It’s already happening.

The registry (Global Domains International) has been holding back all 2 character names, most 3 character names and most numerics. They ran a test and quietly opened up 4 character names for 48 hours. More than 2000 names were registered in those 2 days – with NO MARKETING! And who do you think registered them? Chinese investors. I’d say that’s tell-tale.

Did you know that Wang Shang translates to