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Conventional wisdom says businesses should preemptively buy domain names to keep them out of the hands of competitors, griping customers, pornographers or other malefactors. This process is sometimes called “defensive” domain name registration.
In theory, defensive registrations save money. For a relatively low upfront cost (a single .com domain name costs about $10 a year), a business avoids spending thousands or even hundreds of thousands of dollars trying to get the name back from a malefactor—if it’s possible to get the name back at all.
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Courtesy of: Eric Goldman @ Forbes.com