What could go wrong? – DNW Podcast #581
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In this episode of the Domain Name Wire Podcast, host Andrew Alleman interviews trademark and UDRP attorney John Berryhill, who dives deep into the hidden risks and legal pitfalls that can arise in domain name transactions—even after they’ve entered escrow. Berryhill highlights how relying solely on escrow services like Escrow.com without a formal sales agreement can leave both buyers and sellers vulnerable, especially when one party backs out or the domain is used for infringing activities. He recounts a high-stakes case involving the domain monaco.com, where a UDRP was filed against a domain held in escrow, leading to a complex standoff between the escrow provider, the buyer, and the seller. The escrow agent initially refused to release the access code needed to respond to the dispute, creating a tense situation that required legal persuasion to resolve. Berryhill also discusses how UDRPs can be used strategically—sometimes as a tool to gather registrant information—raising ethical and procedural concerns about transparency and fairness in domain disputes. The episode underscores the importance of clear, enforceable sales agreements that address issues like warranties of title, liability for future misuse, bankruptcy protections, and dispute resolution protocols. Berryhill warns that even seemingly routine transactions can spiral into legal nightmares if proper safeguards aren’t in place. He calls for better practices, such as registrars proactively notifying domain owners when their names are locked due to a UDRP, to prevent silent, potentially abusive legal actions. Ultimately, the conversation serves as a cautionary tale: while escrow services provide financial security, they don’t replace the need for legal clarity, transparency, and proactive risk management in high-value domain deals.
Always use a formal sales agreement—even when using escrow services—to enforce obligations, warranty title, and assign liability.
Escrow providers like Escrow.com do not guarantee transaction completion or enforce compliance; they only hold funds and transfer them upon conditions.
A UDRP filed during a payment plan can freeze escrow payments and block domain transfer, even if the buyer is the rightful future owner.
Registrars should proactively notify domain owners when their names are locked due to a UDRP, especially when the complainant is unknown or the case is not publicly listed.
Some parties use UDRPs as a tactic to gather registrant information—filing a complaint, withdrawing it, and using the data for sales or legal purposes.
…and 3 more takeaways available in PodZeus
Introduction and Sponsor: Spaceship Domains
Andrew Alleman introduces the episode and welcomes guest John Berryhill, a trademark and UDRP attorney. He promotes Spaceship, a domain registrar offering low prices, beast mode search, and a $5.67 .com promo with code COM67.
The Myth of Escrow as a Sales Contract
“It's like saying, well, I bought something online and I paid for it, but it hasn't shown up. And to say, well, you know, what was the sale agreement? And saying, well, we just use the U.S. Postal Service.”
Liability Risks for Sellers and Title Warranties
“If you sell a domain to someone and they go off and do something horrible with it, and some kind of liability for something they've done comes back to haunt you. That's something you can deal with in a sales contract.”
The Monaco.com UDRP Case: Escrow vs. Legal Reality
“It took some persuading to get them to realize that this is not going to be a productive UDRP response for you. You are the registrant with the registrar. There is no question about that.”
Escrow Payment Plans and Hidden Burdens
Berryhill details how monthly payment plans through escrow can become burdensome when buyers miss payments. Sellers must manually notify escrow and the buyer each month to trigger a 10-day grace period, creating a repetitive and error-prone process.
“There could be a UDRP running at the Seoul Korea office of the ADN DRC and we would have absolutely no way of knowing that because they don't post they don't give out.”
“It took some persuading to get them to realize that this is not going to be a productive UDRP response for you. You are the registrant with the registrar. There is no question about that.”
“If you sell a domain to someone and they go off and do something horrible with it, and some kind of liability for something they've done comes back to haunt you. That's something you can deal with in a sales contract.”
Host
Guest
John Berryhill
person
Andrew Alleman
person
Escrow.com
organization
WIPO
organization
monaco.com
other
ICANN
organization
Spaceship
organization
Czech Arbitration Court
organization
ADN DRC
organization
National Arbitration Forum
organization
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