This entitles them to the corresponding .uk domain. However, they have not registered the .uk domain, and are in fact selling the .co.uk domain via a broker. Nobody else can get the .uk domain for 5 years!
Someone buys the .co.uk for several hundred quid, via the broker.
They pay the money.
The next day the seller:-
- Registers the corresponding .uk domain in their name as per their entitlement, and then,
- Transfers the .co.uk domain to the buyer. They keep the new .uk version.
But the contract via the broken had no option for conditions such as "with the right of registrations to the .uk" or some such. Just standard terms.
Was that a dirty trick, a breach of an implied term, or was it valid?
Whatever, it is something for anyone to watch out for when buying a .co.uk domain. It is also a potential money spinner for anyone wanting to replace their .co.uk with a .uk domain.