GoDaddy Files Patent for Method of Selling Equity in Domain Names
Thursday, July 2nd, 2009
Domain registrar files patents for system to sell equity in domain names.
Go Daddy Group Inc. has filed a patent for a method of selling equity in domain names and protecting the domain names in which the equity is issued.
The patent is for a system that will facilitate the sale of shares in a domain name. The patent application explains that a number of institutions are interested in investing in domain names, but there isn’t a simple mechanism to do so. Conversely, many domain owners are interested in selling equity in their domain names, but need a way to connect with investors.
The sale of shares of equity in a Domain Name associated with the current invention simplifies the current rudimentary process by which Registrants attract investors through either knowing the party or being connected through outlets such as forums or other online media. Such a centralized sale of shares of equity would need to provide means to underwrite the sale of such equity and provide a means to protect the domain name from inadvertently or fraudulently being transferred to another entity…
…The invention should have a desirable side effect on the entire domain name industry in that it may provide a significant amount of secure capital to registrants, which would allow them to develop their domain name organizations and invest in capital expenditures such as dedicated servers, other domain names, etc., while providing assurance to potential investors and underwriters that the domain name may be protected and used as collateral during the sale of such equity in the domain name.
United States patent application 20090171823 describes the method of connecting domain owners and equity underwriters as well as protecting the domain names that receive investments. Go Daddy has also filed United States Patent application 20090171678 specifically for protecting the domain name during investment.
Both patents were filed in 2007 but only published by the U.S. Patent and Trademark Office today.