Selling domains has been an extremely profitable business for years, with domain users managing to make significant profits over the amount they paid to use the domain up to the time of the transfer transaction. When transferring the right to use a domain, there are a number of features that should be taken into account. This article is intended to provide more information on the domain name transfer agreement.
What does the transfer of a domain right consist of?
When the right to a domain is expropriated, the right under the contract to use the domain is transferred, changing the holder of the right to use it under the agreement with the registrar. This happens when the holder of the right of use on the domain transfers the right of use to a third party. For this transfer, the registrar needs to be notified in order to enter this change in the domain name registry. In many cases, before the registrar is notified, some time passes and it happens that in practice the new user (the assignee) has paid a significant amount to the transferor, therefore it is advisable to conclude a domain name transfer agreement.
In which cases is it advisable to conclude a domain name transfer agreement?
A domain name transfer agreement is recommended to be concluded in case you wish to transfer the right to use a domain or acquire the right to use a domain from another person. This agreement can serve as evidence that the transferee has paid the price, as it may happen that the price was paid in cash and the transferor subsequently does not carry out the transfer or requires the amount to be paid again.
What clauses should be included in the domain name transfer agreement?
• Identification of the parties: First of all, the parties should be clearly identified.
• Subject of the contract: Next, the subject matter of the agreement should be clearly described, in which the domain name and the date from which the transfer takes place should be specified.
• Remuneration and method of payment: The remuneration shall also be indicated, as well as the term for its payment and the method of payment.
• Warranties: The transferor shall certify and provide evidence that he is a legal user of the domain name and guarantee that he will register the transfer with the registrar, as well as that the domain has no encumbrances and there are no pending administrative and/or judicial proceedings that would subject to domain rights.
• Rights and obligations of the transferor: The most important obligation of the transferor is to register the transfer of rights with the registrar. Other obligations of the transferor are not to be associated in any way with the domain name.
• Rights and obligations of the assignee: The assignee should assist the transferor by providing the necessary information regarding the registration of the transfer of the right to use the domain, as well as undertaking that there will be no claims to the price paid.
• Confidentiality: It is advisable to include a confidentiality clause.
• Penalties: It is advisable to arrange for the payment of a penalty by the transferor in case of false warranties. Such a clause needs to be included because any domain can be encumbered and if the assignee is not aware of this and there is no agreement between the parties, it is possible that the assignee may be removed as the owner of the domain.
Parties are strongly advised to contact and seek the assistance of an intellectual property attorney with experience in this area, who will draft the domain name transfer agreement. The intellectual property specialist in Bulgaria Krasimira Kadieva will gladly assist you with the negotiation and drafting of the domain name transfer agreement due to the fact that she has succeeded in her practice negotiated and drafting such kinds of agreements.
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Legal Disclaimer: This material prepared by Krasimira Kadieva aims to provide information about domain name transfer agreements. It does not constitute a legal opinion and cannot be interpreted as individual consultation on any concrete facts or circumstances. The advice of an intellectual property specialist should be obtained for specific questions and situations. For more information on the above-mentioned issues and individual consultations, please contact Krasimira Kadieva at 00359 882 308 670 or make an inquiry using the contact form on this website. Krasimira Kadieva is a Bulgarian and European trademark and design attorney. She can assist in negotiating and drafting domain name transfer agreements.