Buying a Domain name, DNS Broker, Through Escrow

Started by xiaolanzhuji, Jul 11, 2022, 12:29 PM

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xiaolanzhujiTopic starter

I own a domain in the .com zone which is being sold through DNS. We have agreed on a price and have decided to use Escrow for payment. The domain is quite expensive and payment will be through bank transfer from Ukraine to HSBC Bank Bermuda, with HSBC Bank USA as the correspondent bank. The payment will be made in dollars and will be a significant amount. All transactions will be recorded for taxation purposes after the currency is purchased through NBU.

After the transaction is complete, I will require an invoice, signed contracts, and acts of work performed for all payments including the escrow commission. However, the broker I am communicating with via Skype does not understand the need for these documents, specifically the acts of completed work. He seems unable to grasp the complex legalities involved. I am uncertain whether acts of completed work are necessary, or if he simply wishes to avoid the paperwork.

Another issue is that there is a trademark (TM) under this particular name, and I am concerned that I may be forced to give up the domain under pressure from the TM owners. Are there any other potential challenges from owning a domain in the .com zone?
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Kevin56

To avoid risks of purchasing a stolen domain, it is recommended to conduct a Google search and check when the last whois change was using a service like https://whois.domaintools.com/. Companies like DNS and Escrow.com are reliable for transactions, but it's important to note that there is still the risk of losing commission fees if the transaction does not take place.

In order for a TM owner to win a UDRP lawsuit and take ownership of a domain, they must first file a lawsuit which costs $1,400 plus attorney fees. If they lose, the decision can be challenged in a normal court. It is advised to keep the domain with a Ukrainian registrar to simplify legal proceedings on home turf, especially if the TM is registered in Ukraine, as this would make it more difficult for foreign companies to take ownership of the domain. Additionally, consulting with local lawyers is recommended.
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Plan

I am attempting to purchase an existing website through Escrow by using the Exchange marketplace. After discussing everything with the seller, I encountered some difficulties. In order to start the transaction, there is a requirement to provide the seller's email and select the category in which the product is listed.
but, the category indicated on the page where the online store is being sold is not listed in the options provided by Escrow. Additionally, the seller's email is not listed anywhere on the page. When I asked the seller for clarification, they mentioned that all necessary data can be found on Shopify.

I reached out to Escrow's technical support team for assistance, but their response was simply a link to a manual that did not address my specific issue. I find the lack of detailed guidance frustrating, as it is difficult to know where to find certain information or what steps to take.
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anupriya

In your situation, it is essential to have a comprehensive understanding of the legal and financial implications of the domain sale. The documentation you mentioned – including invoices, signed contracts, and acts of work performed for all payments, including the escrow commission – are crucial for maintaining a clear record of the transaction. They serve as essential documentation for tax purposes, financial records, and as evidence of the agreed-upon terms and conditions of the sale. It's not uncommon for significant domain transactions to require thorough documentation to ensure transparency and legal compliance.

Regarding the trademark issue, owning a domain that contains a registered trademark (TM) can indeed pose challenges. It is advisable to conduct thorough due diligence to assess potential trademark infringement risks and understand the legal implications. Seeking legal counsel specializing in intellectual property law will provide valuable guidance on navigating these complexities and mitigating potential legal risks associated with trademark ownership.

Additionally, when engaging in a high-value transaction involving international bank transfers, it's crucial to verify the legitimacy of all parties involved and ensure compliance with relevant financial regulations and protocols. Working with reputable financial institutions and seeking professional advice to navigate cross-border transactions can help mitigate risks associated with such transactions.

Given the complexity of the domain sale and potential legal implications, it's important to engage with professionals who possess expertise in domain transactions, intellectual property law, and international finance to ensure a smooth and legally compliant transaction process.
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