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How to Potentially Lose $11,000+ in Less than a Year

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According to the World Intellectual Property Organization website’s list of pending UDRP filings, Inter-Continental Hotels Corporation / Six Continents Hotels, Inc. filed a UDRP for 1,529 domain names that they believe infringe on some of their hotel brands. Names such as candlewood-braintree.com, holiday-inn-dfw-north.com, los-angeles-commerce-casino.com, and staybridge-bwi-airport.com were registered by what appears to be one party, Unister GmbH (although I only searched a random assortment of these domain names).

It appears that many of these domain name I searched were registered recently – in mid to late 2009. For example, staybridge-suites-reno.com was registered July 21, 2009, hotel-indigo-london-paddington.com was registered May 23, 2009, and holiday-memphis-hacks.com was registered July 21, 2009.

To possibly make a defense even more difficult for the domain registrant, it appears that some of the names I searched are listed for sale at Sedo (holiday-inn-universal-studios.com for example), and I would think the Complainant could allege this to be a sign of bad faith.

The names I searched all appear to have a hotel booking engine on them, and when dates of stay are entered into the appropriate fields, visitors are redirected to HotelReservation.com, which appears to be owned by the entity that owns the other domain names I searched.

I can never predict what a UDRP panel is going to decide, but if the panel awards all of the domain names to the Complainant, that could mean a loss of upwards of $11,000 assuming a registration cost of $7.25. Ouch.

Invaluable Advice on Domain Blog

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I want to give you a perfect example about why domain blogs are invaluable sources of information and why people frequently visit and read popular domain blogs. Yesterday evening, Larry Fischer of DirectNavigation.com had a brief post about the sale of CookingGames.com, which he titled Cookinggames.com sells for $350,000 – WTF ?

Larry speculated that the set-up of the domain name looks similar to DressUp.com, which he knew had “absurdly high PPC revenue.” There was 20+ comments on his blog related to the domain name, its traffic, and the PPC revenue from the buyer of the domain name as well as a couple of other knowledgeable people. Just by reading Larry’s post and the comments that followed, I learned quite a bit about a particular vertical I knew nothing about prior to reading the post.

After reading Larry’s post, I did a bit of research on this vertical, and I was very surprised at the results. Just have a quick look at some of the information I gathered below for these parked keyword domain names. GEKT is the Google Keyword Tool’s exact monthly searches, and the Compete information is estimated monthly traffic.

  • RacingGames.com: GEKT: 368,000 monthly, Compete: 5,960 visitors
  • ShootingGames.com: GEKT: 450,000 monthly, Compete: 7,457 visitors
  • FunnyGames.com: GEKT: 450,000 monthly, Compete: 17,188 visitors
  • CarGames.com: GEKT: 673,000 monthly, Compete: 7,465 visitors
  • GunGames.com: GEKT: 90,500 monthly, Compete: 3,069 visitors
  • MakeoverGames.com: GEKT: 135,000 monthly, Compete: 1,672 visitors
  • FashionGames.com: GEKT: 135,000 monthly, Compete: 3,537 visitors

I am sure there will be plenty of people who try to register names like FrenchCookingGames.com or something like that, but that wouldn’t have value (at least none that I can see). Everyone could be given the same information, but some people will still register bad names like my example and try to sell them for stupid money.

Learning how to get a feel for domain values is part of the reason why it’s smart to read and analyze posts and commentary from proven industry leaders. You never know who will appear with commentary or what you might learn.

UDRP: “Geographic Names Are Not Subject to Trademark Protection”

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In the last year, I’ve probably received 5 or 6 emails from people who had concerns that geographic domain names could be risky to own in the event a city or municipal jurisdiction files a complaint or lawsuit, despite a number of cases where the domain owner retained the domain name. Some of these cases include Pocatello.com, MyrtleBeach.com, Barcelona.com, StMoritz.com, and others.

In a UDRP dispute decision that should pacify any concerns about geodomain names, LomaLinda.com was retained by Nat Cohen’s company, StateVentures, LLC , which was represented by Ari Goldberger of ESQwire.com Law Firm. The Complainant was Loma Linda University Medical Center, which claimed to have rights to the Loma Linda mark.

Although there was a dissenting opinion, panelist Richard Page made a statement in his dissent which should be noted by geodomain owners: “the general rule that geographic names are not subject to trademark protection.”

The reason for the dissenting opinion is that Loma Linda was apparently used by the Complainant’s predecessors prior to it being used as a geographic location (city of Loma Linda, California). In the decision though, two of the panelists cited the various uses of Loma Linda by parties other than the Complainant, including the first Loma Linda city directory in 1936, the Loma Linda Food Company in 1937, and the fact that the Justice Court was established in Loma Linda in 1946.

The dissenting panelist disagreed that some of the other usages of “Loma Linda” indicated the University had given up rights to the term, however. In addition, because the domain name is possibly earning PPC revenue from potential competitors of the Complainant, it could be infringing on its rights.

In the end, Nat’s company has retained LomaLinda.com, and it will probably developed when the company has an opportunity to do so. This is a solid win for geodomain owners – and it’s also a very good reason to have a 3-person UDRP panel. Congrats to Ari, who was also responsible for defending other geodomain names in the past like Pocatello.com and StMoritz.com to name just a couple.

Use a Payment Plan When Buying Domain Names to Lower Your Risk

Here’s an idea I had a while back and have used successfully one time on a quick domain resale. When coming to terms with a domain seller, I added a payment plan to acquire the domain name over a set period of time. Using Moniker to handle this type of payment plan/extended escrow, I agreed to pay $xx,xxx over a 12 month period without a prepayment penalty. If I stopped paying, the domain seller would get all payments up to date and receive the domain name back.

Essentially what I did was give myself the opportunity to quickly sell the domain name in one month for 1/12th of the purchase price, in 2 months for 1/6th of my purchase price…etc. Fortunately, I was able to sell the domain name at a profit within 2 weeks of its acquisition, but had I not been able to do so, I would have had cash in my pocket and the ability to sell the domain name over the course of a year.

Of course not all domain sellers will offer or agree to a payment plan, and some may but would want more money for the domain name – either up front or built into the overall sale. It just so happened that the domain seller offered a payment plan before we even closed, which is what gave me the idea in the first place.

Technically, the buyer could also pay 1/12% of the sales price for the opportunity to re-sell at a profit, and if the buyer can’t find a person to whom he could flip it at a profit, he could simply cancel the deal, losing out on just a little bit of money. This is a pretty good way to reduce your risk when you’re simply looking to flip a domain name.

CES 2010: Take a $1,688 Gamble on Smart Televisions

Consumer Electronics Show

This morning on the CNN website, there was coverage of the 2010 Consumer Electronics Show currently being held in Las Vegas. CES is one of the preeminent technology tradeshows that features product launches, pre-release gadgets and technology, and previews of electronics and other devices. Companies who are featured at CES are looking for buzz for their new products or upcoming launches.

In the article, CNN reported that, “‘Connected TV’ and ‘smart TV’ are two terms that already are being tossed around CES this year. Both refer to the idea that couch potatoes are looking for ways to get the power of the Internet and social media onto living room television sets.”

To me, “smart tv” or “smart televisions” sounds more brandable for a category of televisions, similar to smart phones. As a domainer, I did some domain research on that term and found the following:

For under $1,700, you can buy the domain name for a term that could be big in the next couple of years, and for under $7,000 you can buy both. My business model is built around short term flips, so it’s not a gamble I want to take, but it could be worth investigating if this type of investment appeals to you.As you may recall, SmartPhones.com sold for $95,000 at TRAFFIC.

I don’t have any affiliate or advertising relationship with Buy Domains or Page, but if you want to reach someone at Buy Domains, drop Sonia an email, and if you want to reach page, visit his website.

DomainState to be Sold via Auction

I just received an email from the administrators of DomainState.com, a domain forum that is now for sale. The owners have decided to sell it via auction on the site, which will be held January 13 – 15, 2010, starting with a $10,000 bid. My bet is the auction will result in a sale between $20-30,000.

Here’s the email I received:

=====

Thanks for your interest in the site, please note the following information about the sale,

General site info:

Started: 12th Sept 2002
Vbulletin Version: 2.2.7
Total members: 12238 registered and confirmed
Total posts: 480,595
Domains included: domainstate.com, domainstate.net, domainstate.org.

Revenue: currently unmonetized

Traffic stats: We haven’t kept stats as that wasn’t something of use to us how we ran it at the time but that as several people have asked for them we are adding in Google analytics. Obviously the amount of stats available before the sale will only be around a weeks worth.
Note also we currently block google from crawling the site via robots.txt.

User registrations:

Dec 2009 – 127
Nov 2009 – 109
Oct 2009 – 110
Sep 2009 – 116

Post numbers:

Dec 2009 – 1490
Nov 2009 – 1940
Oct 2009 – 2192
Sep 2009 – 1859

Other details: Vbulletin has been modified with some hacks (whois, showcase etc). You may or may not want to keep those features.

Bandwidth usage:

September 09 – 1.25gb / 10.02gb (In/Out)
October 09 – 1.21gb / 9.07gb
November 09 – 1.32gb / 9.92gb
December 09 – 1.01gb / 8.01gb

Method of sale:

Due to a fairly large number of inquiries we have decided to sell the site via auction. The auction will be on site but will not be publicly viewable and bidders will be asked to provide contact details. It will be held in a private section of the site that only bidders will be given access to. Bidders will be screened and we reserve the right to refuse any potential bidder.

A list of the usernames and real names of each bidder (but not contact details) will be available to other bidders in an effort to make the bidding process as transparent as possible.

The auction will take place from Wednesday the 13th to Friday the 15th of January 2010 (48hours) starting at 12pm EST (eastern standard time) ending at 12pm EST on the 15th.

If any prospective bidder is not a current member of the site they will need to join.

The starting bid will be $10,000 USD and increments need to be $500 or larger. Bids under $500 will be deemed invalid. There will be no reserve.

If a bid is received within the last 10 minutes of the auction the auction will continue until 10 minutes after the last bid. (example if a 2nd bid is received that will extend the auction for 10 minutes after the time of that bid).

We reserve the right to extend the period of the auction if the site experiences downtime during the running of the auction.

Other terms:

Posts in the administrators section of the site will be removed before transfer. (approx 17,000 posts).

Payment needs to be made within 3 business days of the conclusion of the auction.

Method of transfer:

The successful bidder will be required to move the site to their own server/hosting account within 2 weeks of receipt of payment.

After receiving payment we will immediately work with the buyer to transfer the domain names and the site.

We will do everything we can to make sure a stress free transfer is achieved from our end but the purchaser is responsible for the setup of the site on their end. We suggest bidders become familiar with the method of transferring a vbulletin forum.

http://www.vbulletin.com/docs/html/moving_servers

Please note also the site is currently administrated and moderated by the three owners and we won’t be continuing in that role after the sale.

Please respond to this email stating you domainstate username, real name and company name (if applicable) and contact details and we will setup access to the bidding thread for you.

For any further questions please email us,

Best regards

Paul Cotton
Paul Shaw
Matt Purtell

Domainstate Admins

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