There are many circumstances under which a website owner might want to do a domain name transfer, either as buyer or seller. Generally, the parties will enter into some sort of domain name transfer agreement that transfers one party’s rights in a particular domain name to the other party. While these domain name transfer agreements are not complex, it is important to have a general understanding of how a domain name transfer actually works.
Below are some points to think about.
How To Do A Domain Name Transfer
As I mentioned, a domain name transfer should be memorialized in a domain name transfer agreement that contains all the terms and conditions of the domain name sale. Generally, one party will be paying some sort of price for a domain name and the other party will be giving the ownership rights to the buyer. On the surface, a simple transacti0n, but there are a few issues to think through:
- Domain name transfer should be done via an escrow agent: In an escrow arrangement, a third-party escrow agent collects the purchase price and holds it until the transfer conditions are met. Accordingly, it’s important to get the transfer conditions nicely set down in writing.
- Trademark issues need to be thought through: Trademark rights are separate rights from the rights to own the domain name. Anyone using a domain name can start acquiring trademark rights as soon as the public associates that domain with a set of goods or services. That means that everyone involved in the domain name transfer needs to think about what will happen to those rights so that there is no trademark dispute down the road.
- Transfer conditions need to be specific: When someone buys a domain name, they need to be registered as the owner with their registrar, and they also need to have all administrative and technical control of the domain. Make sure that both points are addressed.
- The domain name and website content are two different things: Typically, when one buys a domain name, they are just buying the name and not the website hosted at the domain. Make sure that whatever agreement you use makes that very clear to avoid disputes and disappointment in the future.
- The domain name seller should represent that they have clear ownership of the domain: The person selling the domain should make representations that they own the domain, haven’t sold it to another person and haven’t used it as collateral.
The details of the domain name transfer will be contained in a domain name transfer agreement. While this document is simple, it should be prepared by and reviewed by an attorney so that all of the above issues are addressed and any specific concerns relating to the particular domain can be addressed.
ICANN also has a helpful FAQ on domain name transfers.
Also, you might want to read up on cybersquatting, because it can occasionally be at play in domain name transfers.
