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:: Domain Speculation vs. Cyber-Squatting ::.

A good domain name can provide a tremendous return on investment.  Some have sold as high as 7.5 million dollars!  Imagine owning the name cars.com or some other good name?  The buying and re-selling of domain names has become a business in itself and the people who do it are involved in what has become known as domain speculation.

What is domain speculation?

According to www.pdom.com, an Internet company that provides a comprehensive range of Personal Domain Name (PDN) products and services, domain speculation (as opposed to cyber-squatting) is the registering of domain names based not on recognized brands but on generic terms (e.g. crocodile.com, homes-for-sale.com, cheapflowers.com). Speculators register generic domain names in the hope that a company will wish to buy a particular name for its own commercial use.

Their Q & A article goes on to say that while cyber-squatting is illegal, all fields of business involve some speculation - the act or practice of buying assets in anticipation of selling at a higher price. Anyone who buys a common PDN which has a high shared population, and is not based on a trade mark or famous person's name, is likely to be speculating. This is not an illegal activity.

 

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