The one domain biz question you wanted but were afraid to ask

[Fleege]

After about some 7 years in the domain "business" (still hobby like collecting stamps) there is one question I always wanted to ask but were afraid to:

What is the whole thing about owning a name for a long time. Will you eventually own it out right or do you always have to renew the ownership of your domains. I thought there was some kind of 10 or 20 year rule that states that you eventually own them outright without having to renew...? If so where would that domain still "reside" and would it be for free?

Good answer by real pro would be appreciated. Now that I came out of my question closet - what's yours.

 

[JamesDavid]

Unfortunately renewal fees are like taxes... they will always be. the 10 year issue you probably heard about is that 10 years is the maximum a domain can be renewed out... For instance any domain right now can be "pre-renewed" until 2019....

If only that was so...

 

[mwzd]

You don't actually own the domain, the Registry does.

What you do own is the lease to use the domain as you see fit, keeping within the Registry's TOS.

The lease is self perpetuating, at standard renewal, till you keep renewing it.

 

[Chef Patrick]

No, you'll never truly own the domain name. If you stop paying renewals you lose the domain name.

To answer your question investors hold onto their names for long periods of time because they are an INVESTMENT. Bottom line is most investors hold onto a domain name they believe hold a value and will sit and wait for the one offer they are willing to accept.

The simplest analogy I have would be a piece of land. Even with land you have to pay taxes

 

[Fleege]

Thanks. That was something I always wondered and wanted to know.

 

[Domagon]

In my view, and that of some U.S. courts, domains are property - hence, you own the domain name...

Think of renewal fees as akin to property tax. Don't pay the renewal, and just like with physical property, one can lose the domain.

Some argue that renewal fees mean that one never truly owns the domain. Well, in a matter of speaking no one, other than governments, own much of anything ... even one's body, in many jurisdictions, is not truly theirs ... ie. laws against committing suicide as well as controls on the sale of body parts, such as kidneys, etc.

One is, in effect, granted a conditional right (ie. paying renewal fees along with other conditions, such as how it's utilized), to a particular domain name by the registry, on behalf of a government entity - registries don't own TLDs, ICANN (which is part of the U.S. Dept of Commerce) "owns" gTLDs while ccTLDs are "owned" by their corresponding governments; ie. TV is owned by the nation of Tuvalu.

Much in the same way that physical property, ultimately, is truly owned by governments. They can, and most often do, dictate how one uses property, such as through zoning, building codes, etc. And can take control of the property anytime, potentially even without offering adequate compensation, if they so choose and are determined enough; eminent domain.

Bottom line, in my view, one basically "owns" a domain name to roughly the same extent one can "own" a piece of land. Ownership is not absolute; better to think of it as the "control" of something for an indeterminant period of time, which is different than a lease.

Ron

 

[MicroGuy]

In my view, and that of some U.S. courts, domains are property - hence, you own the domain name...

Think of renewal fees as akin to property tax. Don't pay the renewal, and just like with physical property, one can lose the domain.

Some argue that renewal fees mean that one never truly owns the domain. Well, in a matter of speaking no one, other than governments, own much of anything ... even one's body, in many jurisdictions, is not truly theirs ... ie. laws against committing suicide as well as controls on the sale of body parts, such as kidneys, etc.

One is, in effect, granted a conditional right (ie. paying renewal fees along with other conditions, such as how it's utilized), to a particular domain name by the registry, on behalf of a government entity - registries don't own TLDs, ICANN (which is part of the U.S. Dept of Commerce) "owns" gTLDs while ccTLDs are "owned" by their corresponding governments; ie. TV is owned by the nation of Tuvalu.

Much in the same way that physical property, ultimately, is truly owned by governments. They can, and most often do, dictate how one uses property, such as through zoning, building codes, etc. And can take control of the property anytime, potentially even without offering adequate compensation, if they so choose and are determined enough; eminent domain.

Bottom line, in my view, one basically "owns" a domain name to roughly the same extent one can "own" a piece of land. Ownership is not absolute; better to think of it as the "control" of something for an indeterminant period of time, which is different than a lease.

Ron

Great answer! Rep-a-roo ++ :tu: