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06|01|2009 06:30 am EDT

Demand Media Patents “Tiered Registrations”

by Chad Kettner in Categories: News

Demand Media, parent company of domain name registrar eNom, has patented a new method for domain name registration along with a corresponding apparatus.

The patent – United States Patent 7539774 – allows registries to offer domain name registrations at different prices along with different rights, an idea that would increase registrations for low traffic domains.

For example, a domainer could register a domain with any of the following options:

  • Tier 1: Standard registration along with standard pricing. This would include full control of the domain and full rights until it expires.
  • Tier 2: Limited registration along with discounted pricing. This would include full control of the domain and similar rights unless somebody else registered it under Tier 1.
  • Tier 3: Further limited registration along with further discounted pricing. This would include full control of the domain and similar rights unless somebody else registered it under Tier 1 or Tier 2.

The implementation of this patent would make it so less valuable domain names could be registered and made profitable – benefiting both the registrants as well as the registry. For example, if a domain name only earned $6 per year in advertising revenues, it would not be worth registering for full Tier 1 pricing. But a domainer could turn a profit by registering the same domain at Tier 2 or Tier 3. Plus, if something changed and the domain increased in value, the registrant could always upgrade to Tier 1 to protect his or her rights to the domain.

[via DomainNameWire.com]

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  • http://www.thehotiron.com Mike Maddaloni – The Hot Iron

    I guess I don’t see the value to this – how much of a difference in price is there in reality, as domain names – namely the .com, .net & .org TLDs – are relatively cheap?

    Checking the checkbox below and looking forward to hearing arguements for – and against – this.

    mp/m

  • Yawn

    This is a patent for common sense.

    Its like Nasa’s gravity defying pen when the Russians used a pencil.

    Registries are highly inlikely to be able to drop individual names below marginal cost or ICANNs issuance price, otherwise it then becomes a function of market distortion and different pricing for different customers. Why should xyz pay more for a LEASED domain renewal right that someone new on the block.

  • Ron

    Are Tier 2 and Tier 3 just another form of tasting a domain name to see if it is worth jumping to Tier 1?

  • http://www.2humor.com jokes

    Then when someone will check if a good domain is in tier 2 or 3 will buy it to hijack the domain. Or if the buyer get notified about this posibility registran will use “force” tier 2 and 3 to upgrade…

  • http://www.webgazeteler.com gazeteler

    I guess I don’t see the value to this – how much of a difference in price is there in reality, as domain names – namely the .com, .net & .org TLDs – are relatively cheap?