Important considerations when acquiring a domain name

Acquiring an existing domain name gives you immediate availability and sometimes an established reputation, but handle it carefully: check for trademark and copyright infringement, opt for a genuine purchase (transfer) agreement instead of a license, and have the seller declare that there are no hidden conflicts. Below, you will read about the benefits, the pitfalls, and why the transfer agreement is so important.

Why acquire a domain name?

A good domain name is important for your online presence, especially for webshops. However, many attractive names are already registered, sometimes by resellers who offer them for a fee. Acquiring a domain name therefore offers advantages over waiting for a name to become available:

• Immediate availability: you can get started right away.
• Existing reputation: a domain with a good position in search engines or many inbound links gives you a flying start.
• Public familiarity: a name that has been in use for a long time can generate recognition.

What problems might you encounter?

In practice, things sometimes go wrong during an acquisition. Therefore, conduct your research beforehand:

• IP rights infringement: check whether the domain name infringes on the trademarks or copyrights of third parties. A name that resembles a well-known brand can lead to claims.
• Hidden conflicts: investigate whether there are ongoing disputes or a burdened history (for example, a previous block) attached to the name.
• Seller's warranties: have the seller declare that he is the rightful owner and that he is unaware of any infringements or disputes.
• Dispute resolution: include a dispute resolution clause in the agreement, for example via arbitration or mediation.

Purchase (transfer) versus license: a crucial difference

In the event of a genuine acquisition, you acquire the rights to the domain name. You may then use it as you wish — choose a different hosting provider, post different content — as long as you do not use the name for illegal purposes.

That is fundamentally different from a license . With a license, you only receive permission to use the domain name temporarily and subject to conditions. You have limited control and are often liable for a long-term fee (for example, an annual one). If you truly want to become the owner, ensure that the agreement regulates a transfer and not merely a right of use

What should be included in a transfer agreement?

• a clear description of the domain name and the price;
• the obligation to actually move to your registrar/account;
• guarantees and indemnities regarding legality and the absence of infringements;
• agreements regarding the timing of payment versus transfer (for example, via a third-party account);
• a dispute resolution mechanism and applicable law.

Frequently asked questions about transferring a domain name

Am I automatically the owner after the takeover?

Only when the domain name has actually been transferred to your account/registrar and paid for. Ensure that payment and transfer are linked so that you do not pay without receiving the name. Stipulate this in the agreement.

What if the domain name turns out to be infringing later?

In that case, you may face a claim or even the loss of the domain name. An indemnity clause in the agreement helps you recover damages from the seller, but does not prevent the claim. Therefore, preliminary research into trademark and copyright is essential.

May I continue to use the previous owner's content?

Not without further ado. Acquiring the domain name does not automatically mean that you also acquire the rights to the website content (text, images). If you wish to retain these, arrange for the transfer or a license of that content separately.

Help with transferring a domain name

The legal experts at MKB Juristen conduct a legal risk assessment for a domain name to be acquired, draft a watertight transfer agreement, and advise on disputes regarding intellectual property rights. Schedule a no-obligation intake and acquire a domain name safely.