GoDaddy Files Patents For Underwriting and Trading In Domain Name Shares
By Anna Johnson on July 9th, 2009Go Daddy Group Inc. (GoDaddy) has filed two business method patents in relation to a system for underwriting shares in a domain name, and protecting a domain name during the sale of such shares. Hmmm… is GoDaddy planning to launch a domain name stock exchange?
GoDaddy’s United States patent applications 20090171823 and 20090171678 relate to a system for underwriting the sale of shares of equity in a domain name, and protecting the domain name during the sale of such shares.
As indicated in its patent application, GoDaddy is looking to bridge the gap between institutions such as banks, fund managers and other investors wanting to invest in domain names without necessarily owning them outright, and others wishing to sell shares in such domain names without necessarily losing control over them.
Perhaps there is a third group, too, who would benefit from such a system: traders looking to buy and sell domain name shares on a short term basis and who would provide liquidity to a domain name stock exchange.
On this basis, and whether or not GoDaddy will be successful in registering (or defending) its patents, don’t be surprised to see GoDaddy unveil a domain name stock exchange or share market in the not-too-distant future.
If so, it won’t be the first, since Fusu.com claims to be the world’s first ‘domain stock exchange’.
Looking at Fusu’s rules, however, it appears that buying shares in a domain on Fusu’s exchange is more like buying rights over the income from that domain.
Domain name owners still own their domains, but can sell up to 45 percent of the pro-rated rights to future sale revenue or parking revenue from such domains. They are also restricted in terms of how much a domain name they can accept in return for selling their domains.
From a quick review of GoDaddy’s patent applications it seems GoDaddy envisages a marketplace or system where fully-fledged ownership shares are bought and sold, rather than the restricted rights available on Fusu’s exchange.
To me, that’s a much more exciting prospect. It also heralds an important development towards a more open, transparent and liquid domain name after-market than what is currently available in the form of private auctions.
So… will GoDaddy register GoDaq.com?
July 11th, 2009 at 2:19 pm
So they think this is a good deal?
Gee, you can buy a domain name for under US$20 per year ( $10 per year in other places, such as http://namecheap.com ) so why would you go for this insulting piece of crap.
I would say – GREEDY DADDY!!!
They can go for it if they want but they may be hit with lawsuits.
Time will tell.
GreeDaddy is a company I would prefer not to deal with.
Nuff said!
November 20th, 2009 at 12:00 pm
Well, the obvious difference between these two models is that GoDaddy seems to be heading for an equity type tradeable, whereas Fusu seems to offer participation in a kind of securitized debt. I have to say, a new exchange facility looking for sufficient liquidity to build a decent, participative market, should list both asset classes – and maybe thrown some derivatives in there too. Personally, I wouldn’t touch either with a barge pole!