Namejet.com announced last week it would be auctioning off some new gTLD domain names in the strings .XYZ and .College, even before either new gTLD has been delegated to the root by ICANN.
Some readers have questioned, exactly what they are bidding on since they can’t get the new gTLD domain if they win the auction and may not get the domain name.
Namejet.com just updated its Terms Of Service last week in conjunction with the new gTLD domain auction and NameJet.com has specific rules covering these new gTLD’s auctions which they are calling an advanced auction.
Since most people don’t bother reading through the TOS I figured I would answer the readers questions of what exactly they are bidding on by publishing NameJet.com own terms and conditions on these “Advance Auctions”:
“An Advance Auction is an auction for a new gTLD domain name where the applicable registry operator (the “Registry Operator”) has either not yet been delegated by ICANN or otherwise has not yet begun allocating domain names to registrants, and therefore the Registry Operator may not be able to provide a winning bidder with any rights to a particular domain name until some uncertain time following the applicable auction, if at all.
If no one else places a bid that is more than your bid at the expiration of the auction time, you will be awarded an option to purchase the right to be allocated to the domain name for the price of your highest bid (plus the additional fees described further below) if and once the Registry Operator is able to allocate the relevant domain name, and following the applicable Sunrise period.
By placing a bid in an Advance Auction, you acknowledge and agree that you are bidding on an option to purchase rights to the domain name at the price of the highest bid.
The option cannot be exercised until the Registry Operator is able to make such rights available to you and in no case before the end of the Sunrise period of the launch of the relevant gTLD.
The option will be contingent on the Registry Operator successfully completing the process of being delegated the related gTLD and will be further contingent on the domain name not being registered during the Sunrise period.
If you are the winning bidder you will be notified if and when the option can be exercised. Once you are notified that the option can be exercised, you will then have ten (10) business days to exercise the option, which will be by submitting payment to NameJet.
If payment is not received within ten (10) business days, you will forfeit the rights under the option at which point the domain name may be allocated to another party or scheduled for re-auction. In order to exercise any Advance Auction option, you shall pay to NameJet the price of your highest bid in addition to the registration fee set by the Registry Operator and/or any necessary registrar at the point the domain name becomes available for registration.
Neither NameJet nor the Registry Operator can guarantee that any Advance Auction domain names will be available on any specific time frame or that any such domain name will ultimately be available for allocation to you. If at any point before the exercising of an option and the tendering payment to NameJet, NameJet and/or the Registry Operator shall have the right to cancel the option upon notice to you. In this case, you will be under no obligation to remit any further payment to NameJet related to that domain name.”