Sunday, November 15, 2009

How Much Do You Think REPO.COM is worth?

One thing that we will see more often are family law disputes involving domain names. When marriages break up, family property is often divided by the court. In a recent divorce case, a Vancouver, British Columbia Supreme Court Judge heard evidence from a business valuator, whose testimony was considered expert evidence on behalf of the husband. The expert business valuator was asked by the husband to put a value on the domain name, REPO.COM, which was owned by the husband, together with about 1300 other domains. Domain name investors will be horrified to learn that according to the written decision regarding this dispute, the business valuation expert, Mr. Tindale,

"valued the “repo.com” domain name at $2,000. He testified that the remaining URLs have no fair market value at the present, because search engines like Google have become increasingly powerful, with the result that a website name is no longer required to locate a website quickly and efficiently, and there is little utility or value to a particular URL. Many URLs are available at either no cost or a fee of about $10, and are subject to annual licensing fees of about $10. The URLs owned by Repo.com BC do not generate any revenue at present. In Mr. Tidball’s opinion, some URLs have potential value, but only if packaged together with a business plan."

In this case there was no reference to any expert hired by the wife to dispute this valuation.

Furthermore, entered into evidence, apparently in corroboration of the $2,000 valuation of REPO.COM, was the fact that the husband received an unsolicited offer for $1,000.00 for the domain name. Any domainers out there ever get those by any chance?

The decision did not specifically reference what domain names comprised the 1300 domain names owned by the husband, but it would certainly be interesting to see what they were valuable, or worth peanuts as apparently believed by the court. Any domain name investigators out there want to spend a couple hours on domaintools.com, etc.?

In any divorce or business valuation dispute concerning domain names, it is crucial for counsel to assist their clients in obtaining qualified domain name valuation experts to assist. Likewise, trustees in bankruptcy should retain an expert domain name lawyer or domain name expert to provide insight into valuing a domain name or domain name portfolio.

3 comments:

Adam Strong said...

Holy cow! Where'd they find this "expert" ?
If any attorneys reading this need some experience, I'd be more than willing to provide references to real domain experts with experience/knowledge in the marketplace.

Hal said...

That "expert" delivered exactly what was needed in this case, a LOW value. This is a divorce case... think about it.

and it worked too ;)

Michael said...

Hal

I was thinking the same thing! ;-)

Michael