Expired Domains

Selling Expired Domains - Trademark Issues

Most people, when they search for valuable expired domain names look for those that are short, easily spelled and have some sort of interest for a variety of website visitors. If you are actively searching for expired domains for sale however, it is important that you pay strict attention to the words used in those domains to avoid legal ramifications.

Selling expired domains may often have trademark issues. If you have purchased expired domains or are considering selling domain names, be sure that you are not selling any names that could be linked to these trademark issues.
If you are planning to purchase or sell a domain that has direct conflict with any commercial names that are already established, then you could possibly find yourself in legal trouble. If you have purchased this domain, or you have built your website around it, then you risk losing all the money that you have invested in the domain from the beginning, as well as the reputation loss that you will likely endure.

In order to protect yourself and your online reputation, it is important that you understand what might merit a trademark issue with expired domains. First, always make sure that your domain names do not identify the source of any products or services in the marketplace. These are typically trademarked. For instance, you do not want to name your website for a product that already exists. Also be sure to understand that trademarks which are cleverly written, memorable or that are suggestive are protected under federal and state laws. In addition, most trademarks that are descriptive and that have achieved high distinction through sales and/or advertising may also be protected by law. Simply put, when one trademark conflicts with another and both are used, consumers are likely to become confused about which product or service is the original, and trademark laws are put into place to keep this confusion from happening.

In the event that a legal conflict should arise, the first user of a specific trademark legally owns that trademark. So if you are selling or reselling domain names that conflict with another product or service, and the other company had that product or service first, you are likely to lose any legal battles. You will likely be forced to stop using the trademark and may in some cases be legally bound to pay the original trademark owner damages.

If you are careful when you are buying and selling expired domain names, and avoid these potential trademark issues, then you can expect your business to be safe. If however, you choose to purchase and then resell domain names that are clearly trademarked then you risk losing that domain name if the original owner happens to convince the judge or other arbitrator that in using the domain name, you will be confusing their customers as to the original source or even the quality of their products. In a nutshell, it is always best to pay strict attention to the domain names that you are planning to purchase and make sure that they do not carry any trademark issues with them.