A memorable domain name can make or break an Internet business. The ease with which users recall a domain name and revisit a Web site is vital to e-commerce success. A well-drafted domain-name transfer agreement is mandatory for an e-commerce venture seeking to protect its intellectual property during the purchase of a domain name.
To illustrate, consider a company that sells Christmas ornaments online. The owners are convinced that their success depends on securing the domain name rudolph.com. A visit to the Web site of Network Solutions Inc. (NSI), one of the government-designated domain-name purveyors, reveals that rudolph.com is registered. When contacted, the company that registered the domain name says that it will transfer ownership of the name for $5,000. The ornament sellers ask their attorney to draft an agreement for the transfer of rudolph.com.