Quoting Charlie McCormack on Tuesday July 18, 2006:
| 
| It could be argued they are selling Intellectual Property they have no right
| to.
| [..]
| So then don't they only administer a records system, which they charge an
| administration fee, which then means they also have no rights to these
| domain names, so then aren't the restrictions illegal, and could they be
| [..]

It is important to remember you are being sold a fixed term license to a
domain name, not the domain name itself. You are not sold a domain name
and you do not own it, you are merely licensed it. The license allows
you to nominate data (NS records) to place in auDA's zone file.

In much the same way, auDA does not own ".au", it is licensed to it by
the operator of the DNS root.

kim