A domain name is the part of a URL (the address through which a website is accessed e.g. myerson.co.uk) which is unique to a particular website. Each domain name must be unique so that no two are identical.
Most businesses nowadays have a website presence and it is important for businesses to have the right to use a domain name (or names) that reflects its business and is able to attract customers.
According to the website Domain Name Stat, as at 7 June 2019, the total number of registered domain names was 346,683,796 of which 43.5% (150,858,297) were .com domain names. Registrations continue to increase so it is clear that the importance of domain names will grow.
Domain names are valuable commodities, with the most sought-after names often changing hands for large sums of money. The Domain Name Journal began compiling data in October 2003 as to how much the most valuable domain names were exchanging hands for. Currently, the top 5 most valuable domain names which have changed hands are:
Domain |
Price |
Sale Date |
LasVegas.com |
$90 million |
2005 |
CarInsurance.com |
$49.7 million |
2010 |
Insurance.com |
$35.6 million |
2010 |
PrivateJet.com |
$30.18 million |
2012 |
Internet.com |
$18 million |
2009 |
Domain names can be valued in a number of different ways:
The valuation used will depend on what the domain name is and the laws of supply and demand.
Domain names which do not have any unique qualities will be generally be valued by the first method. A domain name that is related to a trademark will be valuable to the holder of the trademark and so is likely to be valued using the third method.
A domain name with a generic quality (e.g. business.com) will be worth a lot of money to someone who can exploit that name commercially and again is likely to be valued by the third method.
The major area of conflict that has developed is between intellectual property rights holders (particularly those with registered trademarks) and those who register domain names. Conflict usually arises where either:
In 1999, the Internet Corporation for Assigned Names and Numbers (ICAAN) introduced a system for settling disputes over domain names, known as the Uniform Domain Name Dispute Resolution Policy (UDRP). The UDRP sets out terms and conditions in respect of a dispute between parties over the registration and use of a domain name. Essentially, the UDRP requires that domain name owners formally arbitrate domain name disputes which raises a claim for cybersquatting.
ICAAN has authorised a number of arbitration groups to act as neutral arbitrators as follows:
In the UK, Nominet has its own Dispute Resolution Service (DRS) which parties can use to resolve .UK domain name disputes quickly and efficiently.
In order to bring a complaint, the complainant needs to establish the following three elements:
A domain name is often used to identify the source of information on a website. In effect, therefore, a domain name is used either as a trading name or a trademark. The domain name owner can, therefore, develop common law rights in the domain name, and the domain name may become capable of being registered as a trademark.
Unfortunately, the nature of rights in domain names, and in particular whether domain names constitute property rights, are yet to be adequately explored by the courts, and so there are question marks over how the law on domain names relates to trademark law. We will just have to wait and see if and how case law develops in this area.
Over the years, there have been a number of disputes relating to domain names. Some examples are:
Our specialist Intellectual Property Dispute Team is able to provide swift advice in regards to domain name disputes, particularly when the domain name dispute relates to registered trademarks.
The team also routinely advises on a broad range of other intellectual property disputes relating to copyright, patents, confidential information and data protection. The team is also highly skilled at advising on design rights and reputation management issues and are regularly instructed by clients from the arts, media, textile and clothing sectors in the UK and internationally.
If you need advice on a domain name dispute or other intellectual property infringements, please do not hesitate to contact a member of our team today on 0161 941 4000 or via email.