Selecting a domain name
is an integral decision that should be highly strategic for all businesses. Domain names are words, letters and sometimes numbers used to identify a business or a website on the internet. Strong domain names are easily recognizable and are powerful from a consumer perspective. Especially for e-commerce
businesses that look to the internet as their primary source of revenue, selecting a domain name name can be the difference between success and failure. Thus, domain names have become very valuable commodities. From business names to generic and catchy terms that identify a product or service, domain names have become very valuable assets to businesses. That said, as competitors cannot prevent one another from using descriptive and generic business names and terms – because these words and terms cannot function as trademarks
– developing a distinct, memorable brand is often very advantageous. It all depends on the company’s business strategy in the particular target market.
Descriptive Domain Names
A descriptive domain name is a website name (for example: www.freezedriedfood.com for Freeze Dried Food) that features a word or words that describe what an internet user or internet consumer will find on that specific website. These domain names are typically products or services but can also be categories, processes, phrases, job titles, and dictionary words. Descriptive domain names are the most valuable domain names in the market because the expense of branding is minimal and, more often than not, cannot acquire federal trademark protection. For example, the starting auction price for XXX.com was $5 million.
Descriptive domain names featuring a word or a combination of words generally cannot be trademarked on their own. However, descriptive terms can obtain trademark rights under certain circumstances – but it is extremely difficult and requires a significant amount of marketing dollars.