Transfer of
Domain Names
Under the new auDA, the
Australian Domain Name Administrator, policy which came
into effect on 1 June 2008, domain name holders will now
be able to transfer Australian Domain Names more
freely.
Previously,
as there are no proprietary rights in an .au domain
name, it was not possible for domain name owners to
'sell' the domain name. The domain name owner instead
holds a licence to use the domain for a specified
period. Transfer of this licence under the previous
policy was only possible in limited circumstances, such
as in the course of a sale of a business, and was
cumbersome.
The new auDA
however has lifted these restrictions and now enables
the domain name registrant to:
- Offer or sell its
domain name licence to another eligible entity, for
any reason, and may list the domain name on brokerage
sites; and
- Transfer its domain
name licence to another eligible entity for any
reason.
However, the
fundamental rule of the .au domain name registration,
being that a person cannot register a domain name for
the sole purpose of resale or transfer is not altered by
the new policy. Accordingly, certain restrictions,
including the previous policy preventing registration in
bad-faith still apply to all transfer of Australian
domain names.
A domain
name owner is also prohibited from transferring the
domain name licence within the first six month after
registration.
Also, the
eligibility criteria will continue to apply to new
transferees, that is, the domain name must be an exact
match to, or otherwise substantially connected to the
applicant's registered business or company name or an
Australian registered trade mark.
The new
policy sets out standard wording that a domain name
licence transfer application must now contain. The
transfer will results in a new two-year domain, as
before.
Parties
interested in selling or purchasing an Australian domain
name should still note that the registration of an
Australian domain name is a contractual right to use the
domain name and is not an intellectual property right.
If you
require further information regarding domain names and
intellectual property rights please contact our office
for further assistance.