Domain licensing and liability

Insomniac

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Mar 3, 2007
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I haven't been able to find anything on this, so I presume there is very little legal precedence.

If you license/lease a domain to a company, what liability can you incur from the companies use of the domain?

Here are a couple of situations to ponder.

If a domain is leased out, is it treated the same as a domain that is for sale, for purposes relating to trademark squatting?

If you lease your personal domain to your LLC, and the LLC gets sued, could you lose the domain, even though the LLC doesn't own it? What if the LLC has nothing to do with you apart from the licensing agreement?

If you lease a trademarked domain to a company, and in your agreement, that company agrees not to use the domain for industries relating to the trademark, but they decide to anyway, what liability do you have, and can you still lose the domain, even though the usage was a breach of contract?
 


As to your question about leasing it to an LLC: If the LLC is sued leased property is untouchable as the LLC doesn't own the property.

Many brick and mortar businesses do this. The building owner and the company owner are one and the same. It's just say Mom and Pop, LLC leases the building to Pop and Mom Pizza, LLC

HTH
 
Thanks craigmc, that's what I was thinking.

Based on this, since a domain name itself carries little to no liability, wouldn't it be worth leasing all of ones domains to your business to protect them?
 
as long as you had a contract in place, your client that is leasing your name would be in breach and you would give them notice to cure the breach or game over. check with your own attorney- just feedback- not legal advice here.
 
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