Further Discussion on Hypothecateability of Domain Name Rights

  •  Boyu Zhu    


Domain name rights should be treated as a kind of unattached Intellectual property rights.  Intellectual property rights differ from other subject matters of pledge in nature, but its nature is extremely similar to the subject matters of hypothec. It’s well in the trend of statutory principle of modern property law to treat Intellectual property rights as subject matters of hypothec. Domain name rights may be hypothecated and realized in two ways. First, it can be classified as Intellectual property rights meeting the essential characteristics of hypothec property rights. Second, it may be subjected to an enterprise’s collective mortgage, fulfilling the purpose of mortgage by putting the domain name rights into the enterprise’s aggregately mortgaged property. In a domain name rights hypothecation regime, a public notification system should be expressly legislated and a valuation mechanism established and well developed.

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