Generic.com + Business + Trademark = Value?

[Shane]

Morning DNF,

I own a generic brandable .com that probably isn't worth more than $x,xxx. I was wondering if the value would multiply if I incorporated and trademarked the broad term.

Does anyone have any experience doing this?

Regards,
Shane

 

[ImageAuthors]

Probably not a good idea. 2 reasons:

(1) Buyers look up a name to see if it's trademarked. If it is, they tend to cross it off their list. Trust me on this.
(2) Trademarks have to apply to something. The odds are that a buyer will want it to apply to something slightly different from your description. So he'll have to file a new trademark anyway.

 

[asfas]

To obtain a TM, don't you need a working business ?

 

[Shane]

Probably not a good idea. 2 reasons:

(1) Buyers look up a name to see if it's trademarked. If it is, they tend to cross it off their list. Trust me on this.
(2) Trademarks have to apply to something. The odds are that a buyer will want it to apply to something slightly different from your description. So he'll have to file a new trademark anyway.

You make some valid points.

I've seen domains on Flippa go for premium prices when they include a trademark. I figured a trademark plus a business would be enticing.

To obtain a TM, don't you need a working business ?

If you are filing an "Intent-To-Use" application, it is sufficient that you make a good faith statement that you plan to use the trademark in commerce. However, you will have to actually use the trademark before it can be registered. Once you have used your trademark, you will have to file a document titled "Statement of Use/Amendment to Allege Use."

 

[Johnn]

Don't waste money - Use it to buy more names.
Flippa buyers/sellers are mostly reseller like us - Rarely you find end user on Fliipa

Traffic would bring more money not TM - TM will scare end user away.

 

[Shane]

Don't waste money - Use it to buy more names.
Flippa buyers/sellers are mostly reseller like us - Rarely you find end user on Fliipa

Traffic would bring more money not TM - TM will scare end user away.

Will do. Thanks for the input!

 

[Jack Gordon]

I am actually about to put this to the test. I have a very good domain that I developed a business on and applied for a TM. I have since decided to sell, but it appears the TM will be coming through soon so I am waiting for that to be final.

 

[Theo]

Any domain that you turn into a business through incorporation increases in value, merely by the decrease in taxation it incurs, if you were to sold the asset along with the company. Talk to a CPA.

 

[Gerry]

To obtain a TM, don't you need a working business ?

No. People are TM their baby's name or popular phrases.

TM's are easy to obtain but may be a slow process and subject to similar TM's already in place.

I have one TM only becuase it is a business that my wife and I began. But I could easily get a TM for a name or phase that is not in existense yet in the TM database.

When you apply for a TM, the uspto.gov will want to know specifcs as to how it is to be used. You could do a TM on a name to "promote or sell or advertise products and services".

 

[Shane]

I am actually about to put this to the test. I have a very good domain that I developed a business on and applied for a TM. I have since decided to sell, but it appears the TM will be coming through soon so I am waiting for that to be final.

Check back in and share your results!

Any domain that you turn into a business through incorporation increases in value, merely by the decrease in taxation it incurs, if you were to sold the asset along with the company. Talk to a CPA.

Now the question is what type of incorporated entity is most enticing? I'm personally the owner of an S Corp as I believe it yields the most benefit.

No. People are TM their baby's name or popular phrases.

TM's are easy to obtain but may be a slow process and subject to similar TM's already in place.

I have one TM only becuase it is a business that my wife and I began. But I could easily get a TM for a name or phase that is not in existense yet in the TM database.

When you apply for a TM, the uspto.gov will want to know specifcs as to how it is to be used. You could do a TM on a name to "promote or sell or advertise products and services".

I was thinking of TMing for something similar to that.. Something very broad that would make sense with the domain.

 

[Theo]

For the sake of selling a domain via this method, an LLC would be just fine. For an active business, there are different options as you stated, S Corp, LLC, Inc. etc.