Marty Schwimmer at the NYIPLA

Marty Schwimmer prints an excerpt from this story, about a guy who wants to buy a domain name to start up a new business, but can’t afford the $1000 for the name he wants and which is being warehoused by a domain seller. The would-be buyer doesn’t even counter-offer — why not? He probably could have gotten the domain for under $500 if the starting price was $1000. The domain seller feels guilty.

Writes Marty, “This is an illustration of how the domain name system sometimes function as a tax on small business.”

I guess. A little tax is still a tax. It doesn’t seem “fair” — but in fact, the person who registered that name first got the real estate precisely because he recognized the domain name’s future value. I can’t fathom a small business that doesn’t have $1000 for the “right” domain name that has any chance of succeeding, considering that most small businesses fail precisely as a result of a lack of capital.

Originally posted 2007-10-17 15:07:05. Republished by Blog Post Promoter

By Ron Coleman

LIKELIHOOD OF CONFUSION blog author Ron Coleman is a member of Dhillon Law Group in their New York City and Montclair, New Jersey offices. He is a graduate of Northwestern University School of Law and Princeton University.

3 thoughts on “Petty taxes”
  1. Can you rewrite the post on this one but compare it to standard – I didn’t get it? Great way to approach it, but perhaps I just haven’t thought of it that way.

  2. Never occurred to me bu that’s a great idea. Just like buying a car, make an offer. All they can say in no. But they may say yes… just to move some inventory!

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