Large company wants to buy name/domain from me. Unsure how to proceed.

[discover1]

A medium-large sized company in my industry contacted me and wants to purchase the name/domain name I am building a business/product around. It appears that we were working on our projects simultaneously and I happened to register the domain first and began publicizing/using the domain for commerce immediately. I am a sole-proprietor and have spent a considerable amount of time investing in this business and the domain name has tremendous value to me. It fits my product perfectly and finding a comparable replacement will be very difficult and could ultimately result in my product earning less money due to having an inferior name.

The company claims to want to handle this without lawyers and "doesn't want to screw me over" and I just want to make sure I am compensated appropriately for giving up the name. I have spoken to 3 law firms, 2 of which believe I will be able to receive what I consider a fair amount of money for the name (6 figures), and 1 who thinks such compensation would be an extremely long shot and $10-20,000 is a more likely amount. This amount seems insultingly low due to the months of work I've invested in this name, the fact that changing names will require a ton of additional work, and the reasons I included above (perfect fit, difficult to replace, inferior name = less money).

Has anyone here ever been in a similar situation? This is a company I respect and I don't want to make any enemies in this industry, but I also don't want to be taken advantage of and I'd like to be compensated appropriately for giving them the name.

Additional info: I've been told I own the "common law trademark" due to registering/using the name before the other company submitted their trademark request.

Thanks in advance for any help!

 

[Magicpig2]

Welcome! I might say something along the lines of; 'I'd rather keep it and continue my business as it is, although to be totally honest, if you want to consider an offer in the range of $150k, then it would probably be worth my while accepting.'

If they are serious, you still might get an offer between 50-100k. Money might not be their problem in this scenario, the fact you own what they want is what might push them to meet your demands.

 

[Name Trader]

Since when have lawyers had any idea about domain valuations?

If you quote them a six figure sum, I think you are going to make them turn to litigious resolutions. They will be your enemy.

You should object to their trademark application, if you haven't done so already.

How much can you say you've spent to date in getting your business off the ground?

You should use a very good lawyer experienced in Trademark and Domain Law. The best you can afford.

 

[discover1]

After speaking to two more attorneys I believe I've found the best one for me (extremely experienced in domain/trademark/internet law). He says we should proceed by emphasizing how important the domain is to my business and asking them to make an offer.

Objecting to their trademark is definitely a potential tool but wouldn't that just piss them off and force litigation?

I've been working for the past year with no paycheck to get this product off of the ground. It's basically my life/future at this point.

 

[Name Trader]

1. Asking them to make an offer is a good idea.

2. It might, but you want to protect your own trademark, and you have a right and responsibility to do so. I would definitely object if I were you. You should plan that strategy with the lawyer you have chosen to work with.

3. I know the feeling

 

[alien51]

Sometimes, people have overestimated their own valuations and future prospects.

Look at what happened to Friendster. Facebook attempted to buy them out, but they refused thinking their business will rocket.

Look at what happened to Yahoo. Microsoft attempted to buy them out, but they refused thinking their business will rocket.

They were all wrong, as it turned out.

If you are just a start-up, then people do not know your identity yet. You are not popular. Which means, you have the ability to pick another good brand and getting paid for doing so. You can work with a branding company with this. You have nothing much to lose at this point, because all you have right now is a "future vision" that may or may not succeed.

You can take the money, and pick a new brand for yourself.

As to how much money, we probably need to see the name.

 

[flybuzz]

I'd be willing to take $30 to $40k. Depending on how much money the other company has. Anything higher may trigger them to steal it through legal means. But then you are going have to pay for lawyers.

 

[dnp1234]

If you are serious about your business and are completely invested in it, then screw letting the perfect name go for some quick cash, even if it's 6 figures. The right name, regardless of SEO and all that jazz, is everything. If you are going to build a brand around that name, then you will earn far more over time than a quick 100k.

Now, if you are like a lot of us here where we have several names, several ideas, and some focus in a few of them, then you may be better off getting the quick cash. I must say though, any professional company using the words "doesn't want to screw me over" would set some red flags off for me. I would think they would take a different approach.

Disclaimer, I am a dreamer, but I believe in the right name and building a brand full hardheartedly.

PM me the name and the market if you are comfortable doing so.

Thanks!

 

[verbster]

The company claims to want to handle this without lawyers and "doesn't want to screw me over"

If he's not your attorney, you need to contact John Berryhill right away. Something about this situation isn't right.

What rank of executive made the inquiry and told you the crap about no lawyers? Any company of any size will spend more money in in-house lawyer hours than they'll offer for the domain. The fact that they didn't make a concrete dollar offer should make you start wondering what's going on; either they aren't being up front, or they are playing you.

You're stepping into the big leagues, and no matter what they tell you, it's their job to get the domain as cheap as they can. Until they get it, they will be your best buddies. You need someone representing you that you can trust and has the track record that companies will instantly understand they can't screw with you.

Good luck.

 

[Paul]

Are you sure you're actually dealing with the company you think you're dealing with? Could this be a scam?

 

[Spade]

If I was in your shoes, I would proceed initially without an attorney. I would explain to the company that this domain is pretty important to your business and if they are serious they can make you an offer. If the offer is too low, thank them and tell them your going to pass. If the offer is close to what you would consider taking - then you can bring in a lawyer to help you sort it.

 

[bonavee]

Are you sure you're actually dealing with the company you think you're dealing with? Could this be a scam?

Exactly my thoughts! The so-called 'medium/large' company's approach is very amateurish (IMHO). Tread with caution buddy.

 

[tomcarl]

If the offer is reasonable (6 figures) - Accept it. Content and the right promotion overcomes any generic name. We all know Expedia.com, household name, how many times do you hear the name Travel.com being thrown around? We've all got Facebook.com accounts, how many of us have Friends.com accounts?

This is not brick-and-mortar, prime location of 5th avenue Manhattan where you're relying on foot traffic, that's the beauty of the Internet.

Consider it a blessing it disguise, you just said your future depends on this business, still want to roll the dice? Take the money and your future doesn't depend on it, re-invest into serious marketing with your new 4 or 5 figure brandable and pocket the rest.

JMHO

 

[Paul]

If you do go through with any of this, just make sure you use escrow. I despise legitimate e-mails, never mind this fishy nonsense. No lawyers my foot.

 

[.NJ]

Something smells here.................

Have you made any phone contact at this point with any representatives from the company?

Is the inquiry email address from this company even related to the actual company itself?

You need to ask them for a phone number for verbal communication so you can verify certain aspects.

 

[Ten10]

Additional info: I've been told I own the "common law trademark" due to registering/using the name before the other company submitted their trademark request.

Maybe I am missed it in this thread but you have not mentioned who has filled an actual trademark application?

If no one has, why not file a trademark on the words in your domain name or the domain name as it is?

You already have the advantage of registering the domain first, including a TM filing will make it easier to negotiate.

and if they file it first, you can object due to prior use.

 

[uswebdev]

...but I also don't want to be taken advantage of...

It appears to me like you are getting played by an 'industry' competitor, rival colleague or a business analysts. And I think you are freely giving them loads of inside information on the stage of development of your project and the depth of your personal resources -- masked as a negotiation for a domain purchase.

 

[main]

Bump. I hope everything worked out for you. What ended up happening?