The Risks of Inflating Domain Name Prices and the Impact on UDRP Cases – Tips for Domain Owners to Avoid Losing Their Domain Name in Disputes with Trademark Holders.
As a domain owner, it is important to understand the rules and regulations of the Uniform Domain-Name Dispute-Resolution Policy (UDRP) to avoid losing your domain name. One common mistake that some domainers make is exaggerating the price of their domain names to intimidate potential buyers or increase their bargaining power. However, this practice can backfire and result in a UDRP complaint against the domain owner.
UDRP is a policy established by the Internet Corporation for Assigned Names and Numbers (ICANN) to resolve disputes between domain name owners and trademark holders. Under the UDRP, a trademark owner can file a complaint against a domain name registrant if they believe that the domain name is identical or confusingly similar to their trademark and the registrant has no legitimate interest in the domain name.
One of the factors that UDRP panelists consider in deciding whether a domain name was registered and used in bad faith is the registrant’s intent to sell the domain name. If the registrant registered the domain name primarily for the purpose of selling it to the complainant or a competitor, it may be deemed as bad faith registration and use.
Exaggerating the price of a domain name can be seen as evidence of bad faith intent to sell the domain name. For example, if a domain owner registered a domain name that contains a trademark and then asked for an exorbitant price that is way above the market value of the domain name, it could be viewed as an attempt to extort the trademark owner. This is especially true if the domain owner has a history of registering domain names with the intent to sell them for a profit.
UDRP panelists are aware of the common tactics used by some domainers to inflate the price of their domain names. They are trained to look at the evidence presented and evaluate it based on the facts and circumstances of each case. If the panelists find that the domain owner has exaggerated the price of the domain name to intimidate or extort the complainant, they may order the transfer of the domain name to the complainant.
It is important to note that not all high-priced domain names are deemed as bad faith registration and use. If the domain owner can provide evidence that the price of the domain name is based on legitimate factors such as the domain’s age, traffic, revenue, or potential future use, the UDRP panelists may not view it as evidence of bad faith.
If the domain owner cannot provide any evidence to justify the high price of the domain name, or if the price is so high that it is clearly intended to intimidate or extort the complainant, it can be a factor in deciding the UDRP case. The panelists may find that the domain owner has registered and used the domain name in bad faith, and order the transfer of the domain name to the complainant.
Exaggerating the price of your domain name can be a risky strategy that can backfire and result in the loss of your domain name. While it may be tempting to inflate the price of your domain name to increase your bargaining power or intimidate potential buyers, it is important to be honest and transparent about the value of your domain name. If you receive a UDRP complaint, be prepared to provide evidence to justify the price of your domain name, and avoid using tactics that can be seen as evidence of bad faith registration and use.
Question: Have you ever encountered a UDRP case where the domain owner lost because they exaggerated the price of their domain name?