Trademark Law

Domain names and license plates share some common characteristics.  Both allow only one person to own a particular word or number.  The supply of good words, vanity words and generic words is finite.  Demand for those strong generic or descriptive words is high.  Where does supply meet demand on the price curve?  Domainers can learn from what is happening in a similar market for - of all things - vanity license plates.

The number "5" license plate sold for $6.8 million dollars in Saudi Arabia and another 300 vanity plates sold for another $56 million at last week's auction.  It is estimated that the number "1" will be auctioned next month for up to $20 million dollars.

The free market is just realizing the value of a domain name, driven by the fact that each domain name is unique and - typos and cybersquatters aside -  their 'one-of-a-kind' nature. Domain names are in many ways like lake front property.  There are only so many lots on the lake. The best lots with the best views and lake front are unique. Once you own that lot, no one else can have it.  It is yours.  As all of the lake property gets sold, values for all lot owners go up.  The supply becomes constrained.  Value and price go up.

What is your unique domain name worth?

Domainers need to also learn to buy up all typographical versions of their most prized domains, so they can be packaged and sold together. There is less 'vanity-value' if your neighbor on the lake builds a house almost identical to yours and so on, all the way around the lake.  Just like trademark holders need to protect their 'space' so should domainers protect the area around their most prized domain properties. Make them unique by owning as much property surround your domain as possible.