In the ongoing dispute for Heidi Powell.com we wrote a post a few weeks ago where John Berryhill discussed domains as property.
John has been actively posting on Namepros lately with regards to the battle for HeidiPowell.com. The Grandma vs the Fitness Trainer has been getting a lot of exposure. Joseph Peterson from Slanted.com has been trying to help shine as much light on the topic as possible. Others have chimed in such as StrategicRevenue.com.
John pointed out the specifics of the HeidiPowell.com case and why again domain investors should be wary of domains as property.
Well John posted an update today where he mentioned that Grandma Powell is now arguing that domains are not property.
From the latest filing:
THE HEIDIPOWELL.COM DOMAIN NAME IS NOT INTELLECTUAL PROPERTY THAT CAN BE SEIZED AND SOLD BY THE TRUSTEE
A. Virginia Law Applies And Under Virginia Law, Domain Names Are Contractual Rights And Not Property
As the memorandum provided to the Trustee by Arizona Heidi’s counsel (hereafter the “AZ Heidi Memo”) acknowledges, “‘property’ and ‘interest in property’ are creatures of statelaw.” Barnhill v. Johnson, 503 U.S. 393, 398 (1992) (citations omitted); In re Bledsoe, 569 F.3d 1106, 1113 (9th Cir. 2009); In re Dameron, 155 F.3d 718, 722 (4th Cir. 1998).
Under Washington’s choice-of-law rules, Virginia law applies in determining whether the domain name is property. Virginia law clearly establishes that domain names are not property.
i. Under Washington’s choice-of-law rules, Virginia law governs.
Regardless of whether the legal issue is a question of contract or property law, under Washington’s choice-of law rules, Virginia law governs whether the domain name is or is not
property.
Was this not something that was argued and decided in the “Business.com” case involving Network Solutions ?. So long ago my memory is failing me.
Want to “own” your domain? Start a registry…and then hope that the mostly corrupt governing entities don’t shut you down.
The ramifications due to the decision can be significant:
Estate planning/disputes
Bankruptcy proceedings
Seizure of assets by parties (the leading cause of bankruptcies in the USA is “medical poverty” — will healthcare groups become the holders of “distressed” domains?
Let’s hope Grandma Powell gets a favorable decision. She’s already had her share of hardship, and more.
Are contract rights property? Do you “own” the contract rights? Do you not?
Regardless of the status of domain names, I still decide in favor of Grandma Powell. And I very much doubt it is not possible to do so convincingly no matter which status is chosen.
It’s never property if it can be taken away from you by the registry.
Yep
In that case, no owns “OWNS” anything, try not paying annual taxes on your house, car, etc. When you register your asset with the government, you are giving the government the authority to control your asset while you are just using it. Slavery is alive & well today, but it is cloaked! This is the entire goal of government thats out of control is to control every aspect of human civilization, besides it’s only responsibility which was long ago forgotten to protect the life, liberty & PROPERTY of it’s citizens. Sadly, that is no longer the case!
It’s the same thing with any piece of real estate. Any tax authority around your real estate – like your county or your school district, your home owners association, or through ’eminent domain’ any local, state, or federal government – can seize your real estate for not paying taxes, dues, or simply for “the greater good”:
You Don’t Own Real Estate – It Owns You
http://seekingalpha.com/article/84724-you-dont-own-real-estate-it-owns-you
If they take the domain from her, does this mean that ANYONE can go after ANY domain name and get it just because they think they should have it? This is going to have some long term legal effects. My dogs name is Coca-Cola, ……… hmmmmm! I might just have to see about getting that domain from them, cause I’m entitled! This is such bulls^&*. Grandma Powell, PLEASE countersue the moron! I hope you win!
Living in Oklahoma, a Big Oil state, domains have always been looked at similar to an oil lease. You don’t own the land but you own the rights to make money from the land. You own the legal right to use the domain but you don’t own the domain. Just as you may sell and oil lease you may sell the rights to use a domain. If Oklahomans can figure this out, anybody should.
Now if you sell your rights to use a domain it opens up all kinds of tax discussions. Is it a capital gain or regular income. I’ve been caught in the crossfire of this a few times. I’ve had to fire my long time CPA because he refused to recognize domain sale as capital gain.