advice How to avoid getting involved with problematic domain names?

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VIP Member Staff
Domain name is now an important kind of virtual property. With the flourish of the domain market, the value of domain names kept increasing. Thus, the issues of problematic domain names emerge more frequently than ever before. As investors, it would be important to know how to avoid getting involved in the issue of problematic domain names.

The Stolen Domain Names

The most dangerous problematic domain name shall be the stolen domain names. The thieves steal the domain names by getting access to the owners’ accounts and transfer away the domain names in a short time. Generally the thieves will sell the domain names soon with a tempting price.

Case I: In the year of 2011, the thief got the personal information and registration information of the domain name from the internet, and hacked the registrant contact email. He then stole the domain name and another domain name from the owner. Luckily the domain names were retrieved and the thief was punished by law.

Case II: In the year of 2012, the domain name was on sale for a very low price. Many investors showed their interests. Jacob was determined to buy the domain name, but as his request was not replied on the forum, the transaction did not reach to a result. Jacob then searched on the internet and find the domain name was a stolen one.

The above 2 cases give us a lesson that be cautious of domain names thefts. You shall first enhance the management of your domain name account and prevent the theft. In additional to find a reliable registrar, you also need to set up a high security level password for your account, and use the security-enhance services provided by the registrar if there is any. Besides, you shall check your domain name list at the registrar regularly in order to observe any abnormal situation at the first time. Once the domain name is stolen, contact the registrar at the first time. Keep in touch with the registrar so that they might respond to the case rapidly and help you to retrieve the domain name. For the buyers, take care if the seller is trying to sell the domain name in haste with tempting prices. Try to find more background information of the domain name before the deal.

Fraud in Transaction

In the secondary domain name market, the transactions between investors are very common. However, it also provides the soil for fraud.

Case III: Not long ago, Benz-Xigua received a call from an investor to confirm the transaction details of a domain name. However, Benz-Xigua had no idea of the transaction at all since he did not receive any offer. Finally they found that there was a guy passed himself off as Benz-Xigua on the internet and wanted to make a fraud. He planned to run off with the money once the buyer had paid. Fortunately the buyer confirmed the information via the phone number in the whois information. The transaction was done between Benz-Xigua and the buyer at a price over CNY 200k in the last.

Use reliable escrow service in the domain name transactions. If you prefer to do the transaction in a private way, please check the identity of the seller and make sure that you know enough about him. Keep the evidence of the transaction well anyway.

Cyber Squat and Infringement

What is cyber squat? If you hold a domain name which has already been registered as a trademark, and the content of the website is related with the trademark, then you are in trouble with cyber squat.

Case IV: The news of arbitration had conquered the headlines of domain name websites for a few days. Although the register time of is earlier than the launch of the Weixin product, the content of the website was related to Weixin and obviously caused infringement of trademark.

Here we’d like to give an advice that do not to commit cyber squatting which will leads in much trouble for you. The enterprises can arbitrate the domain names through legal methods and would even ask you for compensation.

These days the domain name business is developing at full speed. The legal support for the virtual property protection shall be improved as well to fit the development of internet, especially in an international background. Meanwhile, the investors shall also learn to protect their rights in the complex environment.

latest news:
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Declaration: this is an informative article that do not represent official investing advice, with no intend in misleading readers.Please be open-minded and objective. Welcome varied discussion below.Thanks!
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