Domain name registration is becoming an increasingly serious legal issue as regards ownership as to who owns your domain is no longer simply a matter of trusting someone to do the decent thing but, more importantly an issue of protecting your brand, your company and your business online.

Commonly a company will employ a web designer to obtain a domain and build a website and for most people this is fine and dandy and no problems are experienced and relationships are usually cordial enough to warrant no further consideration. This is almost standard practice with beginner websites and small developers. A tiny proportion use this to maintain a hold over their clients for years. Most will transfer the domain on request and often before asked.

However, in a few cases where the company that bought and maintains your domain name goes down the pan and is dissolved or ceases trading you might have a problem that may prove expensive to resolve.

As an example Nominet presently maintain their contract is with the company that purchases the domain and if you wish to transfer ownership it is £10 plus VAT to do so. However, if in the rare instance the company that purchases the domain dissolves or ceases through bankruptcy you will be required to prove your ownership at a cost of £60+VAT or see the domain go into the public arena for re-registration.

Obviously if you want to take the gamble then you might pick up your domain for a few quid, or somebody else might take it and in doing so pick up your business overnight for a paltry sum. The issue is not one that is going to go away as online businesses take on more and more legal and financial responsibilities and the framework develops to ensure the ownership and any subsequent transfers of, are legitimate transactions. If a domain or number of domains hold commercial value there will always be opportunity for fraud, theft or misappropriation of assets.

So, what can you do to ensure that the domain is secure from any of this?

If you are a sole proprietor or self employed buy the domain in your personal name and ensure it reflects your home address. This will ensure that even if you run a company or partnership, that the domain name will always be under your control. You should then employ someone to manage your domain for you and this will generally show up with you as owner and them as the administrator.

If it is in the name of your company and your company is about to fold, make sure you transfer registration at the cost of £10+VAT before the company liquidates as it might prove impossible to do so if Nominet decide your case for post liquidation transfer is invalid.

If the domain name is in that of your web developer, then immediately request the transfer of ownership to yourself [even if this costs you the £11.75] as it will protect your domain from any of the above and ensure continuity of your online existence regardless of what occurs elsewhere.

This action is not a reflection on the solvency of your business or your developer but is purely a commercially sound act that ensures that whatever happens your domain name remains yours and what happens to it remains within your personal control.

If you are in a partnership, or a company with other directors you should include this into your plans for breakup should it occur. The domain name increases in value as the years go by, if it is of value to you then it is of value to others and is worth protecting.

If you are in any doubt as to your situation then Nominet is a good place to start your enquiries. http://www.nominet.org.uk 

Les Kinch is the owner of Parrot Hosting who specialises in domain management for small businesses and provides independent hosting, installation and ongoing support, advice and online assistance to all his clients.