Company pays up after playing dirty in domain name negotiation.
This week’s DNJournal sales report includes a $175,000 sale of LGG.com.
When reviewing the report, I instantly knew this domain name was familiar. Sure enough, I’ve written about it before.
The company that just bought the domain name, a Finnish dairy company called Valio Ltd, filed a UDRP against Telepathy (owned by domain investor Nat Cohen) last year in an effort to get the domain name.
Telepathy prevailed in the case. So Valio returned to the negotiating table to try to secure the domain name.
The details of the UDRP show that Valio offered $10,000 for the domain name and that Cohen asked $175,000. Now Valio has paid the full asking price.
You might think to yourself “Hey, shouldn’t the price go up because Valio played dirty?”
Although I don’t know all of the details here, I suspect it did go up in price. If $175,000 was the starting offer, then I suspect Valio could have negotiated down a bit. But that was before it decided to file a frivolous UDRP. So in the end, filing the UDRP cost the company more than if it had played fair in negotiating for the domain name.