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Fair Benefit from Domain Name Value

  • To: biz-tld-agreement@xxxxxxxxx, info-tld-agreement@xxxxxxxxx, org-tld-agreement@xxxxxxxxx
  • Subject: Fair Benefit from Domain Name Value
  • From: Aaron Roberts <AaronR@xxxxxxxxxxxxxxxx>
  • Date: Mon, 28 Aug 2006 18:25:16 -0400

I am opposed to allowing variable pricing on domain names. Such changes to the existing contract will create a situation where the holder of a natural monopoly has the power to extract value from the work done by another organization.

Take, for instance, a word with little or no meaning like 'Zillion'. Today a registrar would have no reason to charge a particularly high price for Zillion.com. If I spent several years and millions of dollars turning Zillion into a major brand recognized around the world, Zillion.com would become a property I could not afford to lose. An organization with the power to adjust pricing on my domain would have plenty of incentive to steeply increase the price of the domain because the name would be valuable. That value, however, was not created by the entity charging me, but it was created by my advertising, products and the general strength of my brand. In other words, the better the job I do adding value to my brand is, the more I can be charged for my domain.

This situation applies to hundreds of brands created out of otherwise worthless words. Google, Amazon, eBay, Xerox, HP, and many others have created the value you are proposing giving to registrars. With variable pricing the organization charging for a domain does not benefit from providing improved service or a better product, they benefit entirely from the work of others. They capture the value of other organization's brands. This is not an arrangement that is fair, just, competitive or good for the Internet. Please reconsider this proposal.

Aaron Roberts



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