The Case Of A Web Design Firm & An Ex Client

[Dave_Z]

Hi folks,

Probably one of the most common legal issues involving domain names is the case of a web designer or firm registering one for its (ex) client. For those not familiar:

1. Client pays web designer/firm to create a website for them.

2. Web designer/firm registers domain name under their name instead of client.

3. Client and web designer/firm eventually part ways.

4. Ex-client disputes ownership of domain name. (and maybe sues...)

I'm sure there's a case or two out there somewhere. Just now, though, I finally read of one posted online:

http://saperlaw.com/blog/2014/01/03/saper-law-attorneys-tackle-novel-domain-name-disputes/

Legal disputes, as usual, are fact specific. Thus, that case doesn't define or dictate how others will turn out. If anything, that case gives you an idea how it might result, especially with a contract in place.

Hat tip to Domain Name Wire

 

[Kenny]

Great article, thanks!!!!

Peace,
Cy

 

[domainicate]

As a web services provider, I would advise a business to never have a web dev company register a domain for them in the developers account. I also believe we firms (knowing more than their clients) should not do this, but rather charge the extra money to set up an account for the client.

If the developer is concerned about payment, they can set it up in the clients name and not give access until the final payment is made. I did this once - and of course learned that I just shouldn't do buisness with shady people - but in the end, I changed all of the contact info to ours and GoDaddy said they would merge the accounts with ours. We later sought legal counsel and the non paying client agreed to assign all of the IP (website, domains, etc) over to us, which is much cleaner legally

 

[mhdoc]

I was really concerned about this some years ago and made sure my first three clients got the speech about why they should have the domain in their name. Sure enough, three of three got the letter from Domain Registry of American, and one actually paid up without telling me

This might not be a problem now, but individuals and novice businesses may be at more risk of loosing their domain while they manage it themselves, than from the developer.