Domain name assignments and licences
There are two main kinds of domain name-related legal agreement: domain name assignments and domain name licences.
A domain name assignment should be used to transfer the ownership of a domain name from one registrant to another. Where there is no quid pro quo for the assignment, the agreement to assign should take the form of a deed
A domain name licence is used to rent or lease a domain name for a period. Domain name licences can be used by start-ups to gain access to domain names that would otherwise be out of their financial reach, or in connection with wider trade mark licences (e.g. for a franchise). Domain name licences often include an option to purchase.
Do you need a formal agreement?
All domain name assignments and licences should be in writing.
Domain name assignments should be in writing so that, if the assignor does not transfer the domain as agreed, or the assignee does not pay the agreed consideration, the party that is not in breach has solid evidence of the breach (to use, ultimately, in domain name arbitation or court proceedings).
Domain name licences should also be written down. Licensors will want to ensure that licencees to not damage the value of the domain name by the use they make of it or, worse, risk the loss of the domain through court or domain name arbitration proceedings, or the cancellation of the domain name by the relevant registry. Licensees will want to ensure that their rights to use the domain name and any option to purchase are fully enforceable.
Drafting issues and domain name agreements
Common issues to consider when drafting an domain name licence are:
- content standards of the website to which the domain name will point;
- the basic obligation of the licensor;
- warranties from the licensor;
- trade mark licensing (where the name is not generic);
- the calculation of charges and payments procedures;
- an indemnity for the licensor, or both parties;
- consequences of breach; and
- rights to terminate and the consequences of termination.
Template contracts
If you are simply looking for a template document, please visit our website at Website-contracts.co.uk - where you can purchase and download ready-made domain name licence templates.
Our services: domain name contracts
We have expertise in the drafting of domain name contracts and agreements. You can get a general idea of the fees we charge by looking at the left-hand column. If you would like a definite quote, please either call us on +44 (0)1491 834695 or complete the form below (and we will contact you).
