Domains are the home addresses of the World Wide Web. Every online presence is accessible via a globally unique, unambiguous address consisting of a domain name and a top-level domain (TLD):

www.domainnev.hu

These addresses are allocated in a decentralised manner via a Network Information Centre (NIC). This registry is responsible for allocating domains within a specific area of the DNS (Domain Name System). The DNS is structured hierarchically; for example, in the case of the .com top-level domain, everything to the left of this top-level domain falls under the jurisdiction of the relevant NIC, which in this case is Verisign.

So how do businesses and individuals acquire the rights to .com domains? Registries such as Verisign offer TLDs to registrars at regulated prices, who in turn resell these acquired domains to individuals and businesses. However, such domain registrations are only possible for domain names that have not yet been claimed. Anyone wishing to purchase a domain name that is already taken must locate its current owner and make them an offer. In the following paragraphs, we explain how this process works.

Registering a domain

Registering a domain is a fairly straightforward process and takes only a few minutes of your time. Once you have come up with a suitable domain name, the first step is to check whether the name is available. Domain providers often have a search tool specifically designed for this purpose. Once the search has been carried out, the results will appear, indicating the availability status of the desired domain name; they usually also suggest alternatives in case the desired domain name and top-level domain have already been registered by another owner. Domains are allocated on a first-come, first-served basis, so concise and catchy word combinations under popular top-level domains, such as .com or .net, become highly sought-after commodities. In 2013, ICANN (Internet Corporation for Assigned Names and Numbers) introduced a series of new top-level domains (TLDs) to overcome the problems arising from this scarcity.

Once a registration for an available domain has been submitted to the registrar, an application is submitted to the NIC responsible for managing the relevant top-level domain. An exhaustive register is maintained here; all user data, including contact details, is stored in this ‘WHOIS’ database. Even those domain users who have assumed full responsibility for all content appearing under a given address are not considered domain owners. Instead, domain registrations are based on rental or leasing agreements, which involve annual or monthly fees that help to finance the maintenance of the technical infrastructure. Any profits a user makes from their web project hosted under such a domain remain their property.

Buying a domain

Although we often talk about buying domains, what we are actually doing is buying and selling the rights to use domain names; it would be more accurate to refer to these transactions as renting or leasing. A domain is ‘sold’ when the registered domain owner transfers the rights of use to the ‘buyer’. However, this does not make them the domain owner. The buyer merely assumes the rights and obligations of the previous owner, including any monthly or annual usage fees. To purchase the right to use a domain, potential buyers must first locate the current owner of the desired domain. For websites with popular top-level domains such as .com, .org or .net, etc., ownership details can be found via ICANN’s WHOIS search tool. Alternatively, registrars such as aWh also offer services to help users locate this information. However, it is not always the buyers who take the initiative; commercial service providers specialising in domain trading often display their contact details on the landing pages of available domains. This phenomenon is known as domain parking. In addition, there are numerous platforms available that connect prospective buyers and sellers.

Once the buyer and seller have agreed on the price and method of payment, a contract of sale is drawn up. This must always be in writing and must include the formalities required for the transaction: buyers must then register themselves in the relevant NIC WHOIS databases as the new owners. To do this, a signed trade request form must be submitted.