|> -----Original Message-----
|> From: dns-bounces+dassa=dhs.org§dotau.org 
|> [mailto:dns-bounces+dassa=dhs.org§dotau.org] On Behalf Of 
|> Bruce Tonkin
|> Sent: Monday, September 26, 2005 2:04 PM
|> To: .au DNS Discussion List
|> Subject: Re: [DNS] Time for the 
|> rulestochangeregardingtransferringdomainname licences
|> 
|> 
|> > 
|> > How will changing the rules regarding transferring of domain name 
|> > licenses benefit the users of .au?
|> > 
|> 
|> This is an appropriate question to answer for the proposed 
|> policy review.
|> 
|> In terms of users, I will first talk about registrants.


Comments inline.

|> Some benefits for small business registrants are:
|> 
|> (1) A registrant can sell a domain name licence that they no 
|> longer wish to use.  The funds can then be allocated to 
|> other areas of that
|> registrant's business.   Every business should be continually
|> challenging whether they are getting the best use of the 
|> resources they have available.  Any resources that are 
|> under-utilised would be better off sold, and the funds used 
|> to invest in resources where they are
|> better able to take advantage.   At the very least if you 
|> pay $1000 for
|> a domain name, you should be aiming to get a return of at 
|> least the bank
|> interest on $1000 (e.g getting at least $60 return a year).  
|>  If after 2
|> months of having the domain name you are not using it, you 
|> should be able to sell it to someone who will be able to use it.

Changing the domain name license into a disposable asset.  As it is, if a
business finds they aren't using a domain name or are not making a profit from
it, then they can let it go and the name will return to the pool.  If another
business wants it they can pick it up.  Everyone has a chance at it.  There is
a fixed price involved and the same rules for all registrations apply.

If we wish to open the secondary market up and allow registants to perhaps
make a profit selling their domain names then it will be controlled by market
forces and we will not know what price a domain name may go for until it is up
for sale.  This may limit who will have access to the name.  It could go the
other way for some domain names also of course and they may be cheaper.  Only
the market will decide.

I'm not sure it would make for a better system.  


|> (2) A registrant can buy an already registered domain name 
|> for their business.
|> Many registrants may feel that they could make use of a 
|> registered domain name licence better than the current 
|> registrant.  This would allow the registrant to make an 
|> offer for the domain name licence.  

It also allows others to annoy registrants with requests to sell their
holdings even if they haven't put them up for sale.


|> (3) When a registrant chooses not to renew a domain name 
|> licence, the registrant would have the option to determine 
|> if there are any buyers of the licence.  This ensures that 
|> the previous registrant can share in the some of the value 
|> of the domain name licence  (and potentially recover at 
|> least their initial registration price).  I am amazed every 
|> day by what domain names registrants choose not to renew.

When registrants choose not to renew, they are deciding they can't use the
domain name and it has no more value for them, they then become available for
others to use.  I can't see how allowing them to realise a return on the
domain name instead improves the system.  BTW, I dislike systems where expired
domain names are held and then auctioned off to the highest bidder also.  I
would prefer to see expired domain names just released and open for anyone
interested to pick up at the standard pricing.

|> There are many registered .com.au names that are currently not being
|> used.  This is an inefficient use of the namespace.   These are often
|> renewed each year as the registrant feels that they may use it in
|> future.   A open secondary market would allow the registrant 
|> to put the
|> name on the market and determine its market value.  They are 
|> then in a better position to decide whether to hold, renew, 
|> or sell the licence.

A valid point and one of the better reasons for allowing the secondary market.

|> The benefits for Internet users that are not registrants are 
|> harder to
|> define.   Here are some possible benefits:
|> 
|> (1) An Internet user typing a particular domain name is more 
|> likely to reach a useful website, rather than simply getting 
|> an error as the
|> website is not operational.   Thus this will reduce the 
|> number of error
|> pages received by end users.  

As you say, harder to define.  Better website coding would also reduce the
number of error pages :)

|> (2) Domain names with high market value (e.g based on common generic
|> words etc) are likely to have useful content.    Thus an 
|> Internet user
|> "may" have a better experience of using .com.au as they will 
|> be more likely to get interesting content associated with 
|> common words.

May or may not be true, how many generic names aren't registered as yet?  How
many are being squatted on?

|> Now I am interested to hear any arguments against allowing 
|> people to trade licences.

My main objections to opening up the secondary market are the following:

Prices for domain names being traded will be dictated by the market, it will
vary greatly from domain name to domain name, this may lead to people wanting
to cash in on domain names they consider may bring a higher price.  Attracting
cybersquatting and other undesirable activities.

At present people have a good idea of what a domain name will cost them, with
an open secondary market, until the market settles which could take a few
years, the price will vary greatly and be all over the spectrum.  This
introduces uncertainity into the whole market.

It will be harder to control who is a holder in the domain space.  As has been
pointed out, it is already difficult with some people trying to get around the
rules, without some of those rules, there will be less control and the creep
will grow.  .au will become less distintive Australian.

Despite Vic's opinion I don't have a closed mind on the subject.  When there
is reasoned discussion on the subject there is hope for compromise and
resolution.  I don't have an objection to people making money or to change.  I
just want to be convinced the proposed changes will make things better and not
worse.

Darryl (Dassa) Lynch