A domain name is essential for your business because it performs the function of a human being’s face. People recognize each other by looking at each other’s faces. Our faces have unique features that allow us to recognize (identify) people. Other things and features, such as clothes, gestures, residential addresses, etc., can also point to a particular person. But, a face is the ultimate criteria for the identification of people. 

United groups of people (i.e. companies, organizations, etc.) also have their “faces”. Company names, trademarks, logos and similar things are the faces of organizations.

The electronic world (cyberspace) is only a bunch of digits (0s and 1s) manipulated in such a way as to mimic our physical world. In the electronic world, people and companies can have many different faces (i.e. ways of being recognised), but the domain name is the most important.

What is a domain name?

The website address that people can quickly memorize is a domain name. It works as an entry of a phonebook.

Domain names are linked to so-called IP addresses. An Internet Protocol address (IP address) is a numerical label such as 192.0.2.1 that is connected to a computer network that uses the Internet Protocol for communication. An IP address serves two principal functions: network interface identification and location addressing.¹ In a nutshell, an IP address is like a telephone number.

Humanity invented phonebooks because our brains cannot remember too many phone numbers. Domain names were invented for the same reason. IP addresses are very unfriendly to our memory, and we need something like a phonebook to browse the Internet easily.

The Internet is based on special computers (servers). So-called DNS servers recognize domain names and IP addresses linked to them. When someone enters “tesla.com” in a browser, a DNS server knows that behind that name is the IP address that indicates the exact location of the website “tesla.com”.

A domain name consists of two elements. For example, “valanciauskas.lt” is a domain name. ‘nomadized’ is the unique name and ‘.work’ is the suffix or the last part of the domain name. There are many other suffixes available:

• .com (for commercial organizations)

• .org: (for non-profit organizations)

• .edu: (educational institutions)

• .de (for persons that associated themselves with Germany)

• .it (Italy)

• etc.

How to acquire a domain name?

Although domain names are important for businesses, individuals and companies cannot own domain names. They can only rent them for a certain period of time. ICANN and IANA are key players in the ownership and management scheme of IP addresses and domain names.

The Internet Corporation for Assigned Names and Numbers (ICANN) is an American multistakeholder group and nonprofit organization responsible for coordinating the maintenance and procedures of several databases related to the namespaces and numerical spaces of the Internet, ensuring the network’s stable and secure operation. 

ICANN performs the actual technical maintenance work of the Central Internet Address pools and DNS root zone registries pursuant to the Internet Assigned Numbers Authority (IANA) function contract. The contract regarding the IANA stewardship functions between ICANN and the National Telecommunications and Information Administration (NTIA) of the United States Department of Commerce ended on October 1, 2016, formally transitioning the functions to the global multistakeholder community.² 

These organizations don’t deal directly with private individuals or companies. If you want to rent a domain name, you have to find an intermediary. For example: 

• GoDaddy

• Hostinger

• Domain.com

Domain names and trademarks

In theory, domain names and trademarks are things from different realms. But, in reality, domain names quite often qualify as trademarks.

A trademark is any word, phrase, picture, or combination of these things that identifies goods or services.

A trademark:

• Identifies the source of your goods or services.
• Provides legal protection for your brand.
• Helps you guard against counterfeiting and fraud.

If you choose a domain name that conflicts with an existing trademark, you can lose it. 

The electronic world (cyberspace) is only a bunch of digits (0s and 1s) manipulated in such a way as to mimic our physical world. In the electronic world, people and companies can have many different faces (i.e. ways of being recognised), but the domain name is the most important.

Draw your attention to that:

• Any names, logos, etc., identifying products or services on the market are trademarks.

• Trademarks are protected by law if registered in official registers or are so-called widely recognizable marks (e.g. Apple, Pepsi, Coca-Cola, Nestle, etc.).

• If a trademark legally conflicts with another when the use of both marks is likely to confuse customers as to the products or services or their source. In the event of a legal conflict with a subsequent user, the trademark belongs to the first commercial user.

• If a legal conflict is established, the subsequent user will probably have to stop using the mark and may even have to pay compensation to the trademark owner.

To avoid problems, before registering a domain name, do the following:

• Google the name that you want to register as a domain name. Avoid registering if it matches existing trademarks, company names, etc.
• Check the name in the database of WIPO to identify its similarity (if any) to the already internationally registered trademarks.
• Check the name in the database of EUIPO;
• Check the name in local trademark databases, e.g. the UK.

Domain names and company name

It is the same story as about domain names and trademarks. In theory, domain names and company names are things from different realms. But, in reality, domain names quite often qualify as company names. For example, “Toyota” is a company name. So, if you choose to register the domain name “toyota.io”, you risk receiving a legal claim from Toyota demanding to seize using “toyota.io”.

There is no global database of company names. For this reason, the best way to determine whether your domain name is similar to a company name is to Google it.

If you can, consulting a lawyer before setting up your business is highly recommended. He or she will help you avoid many of the pitfalls that occur along the way.

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^{Images from Pixabay.}