auDA loosens up domain name sales restrictions

The rules governing domain name sales and transfers in Australia have been relaxed as domain name registry body auDA released its new change of registrant policy.

The Australian Domain Name Administrator (auDA) announced the changes this week allowing domain names to be traded freely between interested parties, after a decision to loosen regulation surrounding domain transfer was agreed on by the agency's board in December last year.

Prior to the changes, the sale and transfer of domain names in Australia couldn't happen unless in a "whole-of-business" capacity, meaning that it was not possible for a business to sell its domain name without selling off the entire business.

Businesses will now be allowed to sell domain names in their own right, subject to a number of conditions set out by auDA to abate concerns over cybersquatting and speculation-based domain name trading. The regulator will require domain name buyers to adhere to a six-month "cooling off" period after the purchase of a domain name, in which its sale will be prohibited.

auDA's new policy guidelines, however, specifically state: "It will not be allowable to register a domain name for the sole purpose of resale or transfer to a third party."

Both parties involved with the transfer of a domain name will also be required by the regulator to disclose the sale method and price.

The regulator formulated the new policy last year in the wake of growing pressure from the Australian domain registry industry, with Netregistry CEO Larry Bloch saying: "these are the policy changes the industry has been waiting for" when auDA released a draft of the new guidelines in February.

"We've been saying since 2002 that an outright prohibition on the sale and transfer of domain names is draconian and unnecessary," he added.