Changing times for domain name registration

The Australian domain name administrator (auDA) has introduced a new policy regarding the transfer of the registration of com.au, .asn.au, .net.au, .id.au and .org.au domain names (Australian Domain Names).

The new policy allows transfers of Australian Domain Names in circumstances that were previously prohibited and should make transferring an Australian Domain Name simpler and more cost effective.

The previous policy

Under the previous auDA domain name transfer policy, the transfer of an Australian Domain Name was only allowed in limited circumstances, such as in the course of the sale of a business or as part of a settlement of a dispute.  

Key features of the new policy

The new auDA domain name transfer policy came into effect on 1 June 2008. The key features of the new policy are:

• domain name holders will now be able to transfer Australian Domain Names for any reason. This significantly reduces the restrictions on the transfer of Australian Domain Names;
  
  
• a party can offer its Australian Domain Name for sale by any means, including listing the domain name on brokerage sites, advertising or contacting a prospective buyer.  This was explicitly prohibited under the previous policy; and
  
  
• the transfer will be processed using a single standard transfer form available from the auDA website.

Restrictions

There are still restrictions that apply to the transfer of Australian domain names, including:

• a person cannot register an Australian Domain Name for the sole purpose of resale;
  
  
• a person cannot sell an Australian Domain Name until six months after that person obtained registration of the domain name; and
  
  
• the current auDA domain name registration policy, which seeks to prevent registration in bad-faith, will continue to apply.

Also, the domain name eligibility criteria will continue to apply to new transferees. For example, to be eligible for a .com.au name, the domain name must be an exact match to, abbreviation or acronym of or otherwise substantially connected to the applicant’s:

• registered company name;
  
  
• registered business name; or
  
  
• Australian registered trade mark.

What the new policy means in practice

The new policy allows for the sale of Australian Domain Names, which may create a secondary market in domain names. Also, because transfers are now allowed in wider circumstances, Australian Domain Names may now have an increased commercial value. 

The administrative processes involved in transferring an Australian Domain Name have also been simplified.  Instead of having to fill out multiple transfer forms, the new policy only requires the completion and lodgement of a single standard form.  

Interestingly, parties to the transfer will be asked to disclose the sale method and price to the auDA, however this information will be kept confidential by auDA.

Domain Names and Intellectual Property

Although the new transfer policy may result in Australian Domain Names having an increased commercial value, it is important to note that:

the registration of an Australian Domain Name is still simply a contractual right to use the domain name as an internet address; and

the mere registration of an Australian Domain Name will not grant the holder of that domain name any intellectual property rights or other proprietary rights in respect of that domain name.

FURTHER ENQUIRIES