Patent covers using comps for domain name evaluation.
GoDaddy has been issued another U.S. patent related to domain name appraisals.
The U.S. Patent and Trademark Office today issued patent number 8,909,558 for “Appraising a domain name using keyword monetary value data”.
The patent basically covers using comps for a domain name appraisal, i.e. looking up sales of other domain names including similar keywords and using this to determine value.
GoDaddy has a number of related patents, and this patent application was a continuation of many of them. Last year the company was granted patents for “Appraising domain names using comparative data” and “Domain appraisal algorithm”. These patents discussed using five “p’s” for domain valuation: precision, popularity, presence, pattern and pay-per-click (PPC).
GoDaddy employees Paul Nicks and Pat Lutwitze are listed as inventors on the patent.
Have you seen the appraisals generated by godaddy ? It’s my understanding that these are used for godaddy buy service. Doesn’t do their aftermarket business any favors.
2c
Better use of their time would be in fixing some of their existing “patented” technologies like Afternic or creating new and revolutionary products, rather than patents for concepts that have been around forever.
First of all, let me say this. I hate patents. What good is this one? Does it mean they “invented” appraising domains based upon keywords? Does it mean anyone who uses keywords will be violating their patent?
Second, I hate automated appraisals. They are either way too high, or way too low. Based upon the formula in their own Patent, “GoDaddy” would be worthless, so they clearly don’t factor in things like how brandable a domain can be.
Third, I read their formula. What a mess. I’m sure some people will study it so they can try to cash in on taking advantage of their rating system, thinking they found some kind of hidden gold. In my opinion, as search engines rely less on the keywords in a domain, the best domains will still be the ones that people can remember. In some cases, that will be keyword rich domains, but they also need to be memorable.
Not sure what to think really, however I don’t really feel that it will make the appraisals any more accurate. I mean, really, how accurate can an automated system be that is unable to compensate for trends, market shifts, etc…?
What is the motive for securing these patents? I know some companies use patents to intimidate and/or absorb the real innovators.
In the absence of an alternate explanation, I wonder if that’s it.
Realistically, I cannot imagine anybody imitating GoDaddy’s appraisal system, which is clumsy even by the standards of existing automated appraisal programs. So I find it unbelievable that GoDaddy is worried about theft of their intellectual property in this case. Simply no motive to replicate the little they’ve done.
For the record, I’m mainly a GoDaddy customer; so I have no ax to grind.
Some IP lawyer can tell me what this series of patents is really meant to do, strategically speaking.
So far, GoDaddy has only used its patents defensively. As an example, say some company sues GoDaddy over some hosting patent. GoDaddy then looks at its portfolio to find something that company is infringing, and uses it as a threat to settle the case. Having a strong patent portfolio makes companies think twice before suing you — unless the plaintiff is a patent troll that doesn’t have other business operations.
Godaddy needs to get rid of the appraisal system and we will sell a lot more domains and they will make a lot more in commission. I can’t count the number of times I have heard someone say that the max amount they will pay is no more than what Godaddy appraised the name at.
I bet Estibot still beats this godaddy appraisal method 🙂
Just sayin!
I don’t think they care about how they compare to Estibot. I think most of the people who will use it don’t even know about them.
Since they seem to by expanding their auction and aftermarket business, their main objective for this must be to integrate a semi-credible appraisal into their marketplace.