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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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