PerfectBusiness - The Entrepreneur Network to Create Your Perfect Business

Table of Contents

Web

Technology

Location

Legal

Personnel Management

Risk Management

Insurance

Business Success Tips

Sample Documents

Checklists

Contributing Authors

	Joe Kennedy Author of The Small Business Owner's Manual
ORDER NOW: The Small Business Owner's Manual
	Stephanie Chandler Author of The Business Startup Checklist & Planning Guide
ORDER NOW: The Business Startup Checklist & Planning Guide
	Tom Severance Author of Business Start-Up Guide
ORDER NOW: Business Start-Up Guide
	Steven D. Strauss Author of The Small Business Bible
ORDER NOW: The Small Business Bible

Internet Names

Contents of an Internet Address

An Internet address consists of several parts. The "domain" is the portion of the address following the "@." The material following the "." (known as "dot") is the "top-level domain."

There are seven top-level domains in the United States. The most numerous top-level domain is ".com," which represents commercial entities. The others are ".edu" for educational institutions; ".org" for non-commercial, domestic organizations; ".int" for non-commercial, international organizations; ".net" for network gateways; ".gov" for government offices; and ".mil" for military sites.

The term after the @ and before the dot is the "second-level domain" name. Only one party can possess a particular second-level domain name to be associated with a particular top-level domain.

Network Solutions, Inc. (a private, non-governmental organization) ("NSI") assigns second-level domain names in the top-level .com, .org, .gov, .edu, and .net domains. NSI registers second-level domain names on a first-come, first-serve basis.

Why Domain Names Have Created Trademark Problems

Domain names have created a tremendous problem under trademark law, because only one entity can possess a second-level domain name. Currently, a substantial number of companies do business with the identical name (e.g. Bluebird Manufacturing, Bluebird Inn, Bluebird Designs), but there is no confusion because, either their products or services are so different, or they are so geographically remote. Under the US trademark law classification system, if the goods or services of two parties using the same name are sufficiently different that consumers will not be confused by the source or origin of the goods or services, then both parties may use the same name.

Internet domain names, however, do not provide this luxury because of the limited number of top-level domains. That is, there is essentially only one classification for all commercial goods and services: “.com”. There are, however, 41 different classifications under the trademark law.

While it is possible that in the future more precise top-level domain descriptors will be established, until that happens the NSI registration process must be understood.

InterNIC Domain Name Dispute Resolution Policy

Because of the number of people that were innocently (and maliciously, in some cases) registering second-level domain names that infringed the trademark rights of a third party, the Internet Information Center (or"InterNIC") (the office responsible for registering domain names) issued a policy governing domain name disputes (the "Policy").

As revised in late 1995, the Policy provides that, as a condition of granting an applicant's request to register a domain name, the applicant must warrant that the applicant has the right and a bona fide intention to use that domain name, and that the use of the domain name by the applicant does not interfere with or infringe the intellectual property rights of any third party in any jurisdiction.

The Policy states that NSI can withdraw a domain name from use and registration upon receipt of a US court, or arbitration panel, order that the name belongs to another party, or if NSI is presented with evidence, such as a valid foreign or US federal trademark registration, that the domain name violates a third party's rights.

When a claim of infringement is made, NSI compares the relative dates of first use of the parties. If the applicant or registered owner of the domain name is not able to present evidence that its use of the mark that was registered as the domain name was prior to the party challenging the registration, then NSI will assist the applicant or domain name holder with the assignment of a new domain name. NSI will allow the applicant to maintain both names simultaneously for up to 90 days to allow an orderly transition to the new domain name, and will thereafter place the disputed domain name on "hold" unavailable for use by any party until the dispute is resolved by litigation, settlement, or arbitration.

The NSI's new policy makes it very clear that Internet users do not "own" their domain names, but merely license them from NSI which has the right to revoke them for a number of reasons.

In addition to being able to revoke the domain name registration for disputes from third parties, NSI can revoke the license for failure to make regular use of the assigned name for a period of 90 days or more, or breach of an applicant's obligations under the NSI policy. Moreover, NSI now charges a fee for new applications and a biennial maintenance fee to retain existing domain name registrations.