Domain name warehousing
Encyclopedia
Domain name warehousing is the common practice of registrars
obtaining control of domain name
s with the intent to hold or “warehouse” names for their use and/or profit. Also see domain name front running
and domain tasting
, related business practices employed by registrants.
Typically this practice occurs after a domain name has expired and the previous owner (registrant) has not exercised his/her right to renew that name within the allotted time frame (approximately 45 days following expiration). Domain's expiration date and time are easily calculated based on the expiration date in the whois and the redemption process.
According to GNSO Council Deletes Task Force Report (2003), a council organized under the Internet Corporation For Assigned Names and Numbers (ICANN), three specific modes of warehousing were identified:
When the phrase "Domain Warehousing" was coined in the late 1990s, ICANN registrars were two dimensional entities that served registrants of domain names. The concern at that time was that a registrar would register available domain names and then offer to re-sell those registrations at a "higher than registration" price to potential registrants. By 2006 the name space had clearly matured and the line between registrars, media
companies such as AOL.com (who operate ICANN accredited registrars to manage their name portfolios) and large scale commercial registrants (who operate ICANN
accredited registrars as security measures) had blurred. It has been hypothesized that by 2010 many large corporations or commercial registrants of domain names will operate an ICANN accredited registrar as a security measure to protect and manage valuable name and trademark
inventory.
The primary concern today when one speaks of Domain Warehousing is that a retail registrar, which has historically focused on serving its individual and small business registrants, will make the domain name renewal process difficult, convoluted, or price prohibitive in an effort to unseat exasperated registrants and usurp their registration rights for a profit greater than the potential renewal fee they could earn.
An additional concern is that companies pooling scores of drop registrar
s for additional registry connections will stand at the expiring domain spigot conducting domain tasting
without paying, and then warehouse those that meet traffic criteria while denying the broader community a fair opportunity to compete for those expiring names.
As of this writing the governing body over domain name registration, ICANN, has yet to address those potential inequities. Registrars are in a unique position to impact domain name pricing by introducing competitive bidding or auctions for expired domain names. Circumstances are further impacted when registrars opt not to market the domains in the near term, thereby excluding the recycling of warehoused names indefinitely.
Domain name registrar
A domain name registrar is an organization or commercial entity, accredited by both ICANN and generic top-level domain registry to sell gTLDs and/or by a country code top-level domain registry to sell ccTLDs; to manage the reservation of Internet domain names in accordance with the guidelines of...
obtaining control of domain name
Domain name
A domain name is an identification string that defines a realm of administrative autonomy, authority, or control in the Internet. Domain names are formed by the rules and procedures of the Domain Name System ....
s with the intent to hold or “warehouse” names for their use and/or profit. Also see domain name front running
Domain name front running
Domain name front running is the practice whereby a domain name registrar uses insider information to register domains for the purpose of re-selling them or earning revenue via ads placed on the domain's landing page. By registering the domains, the registrar locks out other potential registrars...
and domain tasting
Domain tasting
Domain tasting is the practice of a domain name registrant using the five-day "grace period" at the beginning of the registration of an ICANN-regulated second-level domain to test the marketability of the domain...
, related business practices employed by registrants.
Typically this practice occurs after a domain name has expired and the previous owner (registrant) has not exercised his/her right to renew that name within the allotted time frame (approximately 45 days following expiration). Domain's expiration date and time are easily calculated based on the expiration date in the whois and the redemption process.
According to GNSO Council Deletes Task Force Report (2003), a council organized under the Internet Corporation For Assigned Names and Numbers (ICANN), three specific modes of warehousing were identified:
- The registrant allows the domain name to lapse, but registrar fails to delete the domain name during the grace period, resulting in a paid renewal to the registry. The registrar subsequently assumes registration of the domain name.
- The registrant purchases the domain name through fraud and the registrar assumes registration of the name to resell in order to minimize losses.
- The registrar registers the domain in its own name outright.
When the phrase "Domain Warehousing" was coined in the late 1990s, ICANN registrars were two dimensional entities that served registrants of domain names. The concern at that time was that a registrar would register available domain names and then offer to re-sell those registrations at a "higher than registration" price to potential registrants. By 2006 the name space had clearly matured and the line between registrars, media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
companies such as AOL.com (who operate ICANN accredited registrars to manage their name portfolios) and large scale commercial registrants (who operate ICANN
ICANN
The Internet Corporation for Assigned Names and Numbers is a non-profit corporation headquartered in Marina del Rey, California, United States, that was created on September 18, 1998, and incorporated on September 30, 1998 to oversee a number of Internet-related tasks previously performed directly...
accredited registrars as security measures) had blurred. It has been hypothesized that by 2010 many large corporations or commercial registrants of domain names will operate an ICANN accredited registrar as a security measure to protect and manage valuable name and trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
inventory.
The primary concern today when one speaks of Domain Warehousing is that a retail registrar, which has historically focused on serving its individual and small business registrants, will make the domain name renewal process difficult, convoluted, or price prohibitive in an effort to unseat exasperated registrants and usurp their registration rights for a profit greater than the potential renewal fee they could earn.
An additional concern is that companies pooling scores of drop registrar
Drop registrar
A drop registrar is a domain name registrar who registers expiring Internet domain names immediately after they expire and are deleted by the domain name registry. A drop registrar will typically use automated software to send up to 250 simultaneous domain name registration requests in an attempt...
s for additional registry connections will stand at the expiring domain spigot conducting domain tasting
Domain tasting
Domain tasting is the practice of a domain name registrant using the five-day "grace period" at the beginning of the registration of an ICANN-regulated second-level domain to test the marketability of the domain...
without paying, and then warehouse those that meet traffic criteria while denying the broader community a fair opportunity to compete for those expiring names.
As of this writing the governing body over domain name registration, ICANN, has yet to address those potential inequities. Registrars are in a unique position to impact domain name pricing by introducing competitive bidding or auctions for expired domain names. Circumstances are further impacted when registrars opt not to market the domains in the near term, thereby excluding the recycling of warehoused names indefinitely.
External links
- ICANN's report: GNSO Council Deletes Task Force Report