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Domain Names

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What are domain names?

Domain names are electronic addresses which enable computers to communicate over the Internet. Examples include microsoft.com, ibm.net, ubc.ca, vancouver.cbc.ca, and our own patentable.com . Domain names serve as addresses for e-mail, web sites, etc.

Worldwide uniqueness

Domain names are unique in that, throughout the world, there can be one and only one microsoft.com, one and only one ubc.ca , etc.; just as there is at most one 123 Main Street, Vancouver, B.C., Canada.

Meet Acme Chemicals Ltd.

Consider a hypothetical B.C. business "Acme Chemicals Ltd." which produces and sells industrial chemicals. Acme Chemicals Ltd. has suppliers in Canada and the United States. It has customers in Canada, the United States, and the Far East. Appropriate domain names for Acme Chemicals Ltd. might be acme.com, acme.ca or acme.bc.ca. Other, perhaps less desirable, possibilities include acmechemicals.com, acme-chemicals.com, acmechemicals.ca, or acme-chemicals.ca .

Why the Internet?

Increasingly, companies such as Acme Chemicals Ltd. are finding it useful to conduct at least some aspects of their business over the Internet. For example, instead of periodically updating, printing and distributing a "hard copy" product catalogue, one may establish an Internet web site to present the same information on a continuously updated basis. Suppliers, customers and potential customers can access the web site quickly and easily from anywhere in the world at any time. The web site may include order forms to enable customers to complete and submit their orders electronically, tools to enable customers to monitor the status of their orders, an e-mail inquiry capability, and much more.

Choosing the right domain name is crucial

A domain name is central to all such activity. To access the web site of Acme Chemicals Ltd. or to send e-mail to the company, one must know the company's domain name. It is highly desirable to have a domain name which will occur readily to anyone wishing to contact the company. In general, a short domain name incorporating the distinctive part of the name of the underlying business is best. Thus, acme.com is probably preferable to acmechemicals.com.

Multiple domain names can and should be registered

To minimize the possibility of customers being led astray, Acme Chemicals Ltd. may wish to register multiple domain names. If Acme registers all of the obvious domain names choices, then its customers will be led unerringly to its web site.

Others may want the same domain name, but only one party can have it

Unfortunately for Acme Chemicals Ltd., things are unlikely to be that simple. There are probably many businesses named "Acme" something or other. The others may have nothing to do with industrial chemicals and they may be scattered around the globe. Any "Acme" business considering establishing an Internet presence is likely to make acme.com its first choice as a domain name. But, only one of them can have it.

Domain Names vs. Trademarks

Some of the problems peculiar to domain names are more easily understood by comparing domain names to trademarks. A trademark (such as ACME) is used by one business to identify its goods or services to purchasers. Some important differences between domain names and trademarks include the following:

  • Generally, in order to assert exclusivity in a trademark, the trademark owner must register the trademark in each country of interest. The trademark may be available in some countries but unavailable in others, for various reasons. A domain name, by contrast, is either available throughout the world, or it is not available anywhere.
  • The trademark concept of confusion does not apply to domain names. If the trademark ACME is registered in Canada for industrial chemicals, no one may register a confusing trademark such as ACME CHEMICALS for the same goods in Canada. But a domain name such as acmechemical.com may be registered even if similar domain names such as acme-chemical.com, acmechemicals.com or acme-chemicals.com are already registered. However, persons in situations of this sort should seek professional advice, since a trademark infringement problem could result.
  • It is normally necessary to commence actual marketplace use of a trademark before the trademark can be registered. One may apply for registration before use commences, but in most situations registration is deferred until after use begins. No use whatever is required to register a domain name. This makes it possible to reserve an appropriate Internet domain name at an early stage. But, this also gives rise to the "squatting" problem discussed below.
  • A trademark registration must specify the goods and/or services to which the trademark is applied (i.e. various industrial chemicals in the case of Acme Chemicals Ltd.). It is possible for different businesses to register the same trademark in the same country, so long as the registrations pertain to different goods or services, such that consumers are not confused. For example, another business may register ACME as a trademark for bicycles, even though Acme Chemicals Ltd. previously registered the identical trademark for industrial chemicals. There is no need to specify goods or services in registering a domain name. Accordingly, a conflict will arise if two businesses want the same domain name, regardless of where each business is located, and regardless of any differences between their goods or services.

What if the preferred domain name is already taken?

If another party has already registered acme.com, then Acme Chemicals Ltd. will have to consider one of several alternative options. One option is to see if a different, possibly less desirable, domain name such as acmechemicals.com is available. A second option is to consider whether an acceptable domain name is available in a different "top level" domain, such as the .ca domain. A third option is to consider whether the previously registered domain name might nevertheless be made available.

Top level domains

.com and .ca are examples of top level domains. .com is generally used by for-profit businesses. .ca is used by Canadian entities of various types. Other examples are .edu (certain educational institutions), .net (network providers), .au (Australian entities) and .jp (Japanese entities).

.com is best for business

It is generally preferable that a for-profit business have a domain name within the .com domain, since that is where most people expect to find the domain name of a for-profit business. The .ca domain is an alternative, but it is less well known than the .com domain. Persons trying to find Acme Chemicals Ltd. via the Internet are likely to try acme.com, acmechemicals.com, etc. before they think to try acme.ca. But, if Acme Chemicals Ltd. can do a good job of promoting its domain name, it may be able to eliminate much of the uncertainty, no matter what the name is. Moreover, even if acme.com is available, Acme Chemicals Ltd. may be well advised to register both acme.com and acme.ca in order to maximize the likelihood that persons attempting to contact it via the Internet will succeed.

.com is getting full

There is a limit to the number of domain names that can be allocated within each top level domain. The .com domain is rapidly approaching its limit as businesses race to secure a place within that domain.

Additional top level domains

To make more domain names available, and in an effort to address the problem that one and only one business can register acme.com, even though there are many different "acme" businesses, several additional top level domains have been created, some specific to different types of users. For example, .biz applies to businesses, .coop to cooperatives, .name to individuals, .info to all users, etc. This opens up large pools of new domain names, but some concerns remain. Many observers expect .com to remain the domain of choice for for-profit businesses, since that is the domain most people are likely to try first when attempting to contact a business over the Internet. Further, it is possible to have one and only one acme.biz throughout the world, so the expanded range of domain name choices may not be all that significant in practice.

The "squatting" problem

A large number of domain names have been registered by "squatters" who have no serious intent to use the domain names. They hope to sell the domain names to the highest bidder; or, to prevent a competitor from using the domain name. Thus, Acme Chemicals Ltd. may discover that a squatter has registered acme.com, but is perhaps willing to sell it for the right price. If Acme Chemicals Ltd. feels that acme.com is the only realistic choice for its Internet domain name, then it may attempt to negotiate an acceptable price with the squatter.

A trademark registration may be the solution

A better strategy may be to determine whether the squatter can be dislodged by relying on the ACME trademark registration owned by Acme Chemicals Ltd. The authorities who administer the .com domain have established a dispute resolution policy in which trademarks play a critical role. A trademark registration can also be of vital importance, should another party attempt to dislodge you from a domain name you have already registered. Such attacks are becoming fairly common as more businesses turn their attention to the Internet. In either case, it is usually important to ensure that the registered trademark is identical to the word(s) forming the distinctive part of the domain name. Thus, owners of existing or proposed domain names may need to update their trademark portfolios accordingly. The topic of domain name conflicts is a complex area, well beyond the scope of this summary. Suffice it to say that it is of crucial importance that legal advice be provided by counsel familiar with the legal and technological aspects of trademarks, domain names and the Internet. We have the necessary expertise.

acme.ca is not necessarily available, even if it is not already taken!

If it becomes apparent that acme.com is unavailable, then Acme Chemicals Ltd. may consider acme.ca to be a perfectly acceptable alternative. But, it is not a foregone conclusion that a "second level" domain name such as acme.ca will be available to Acme Chemicals Ltd., even if no one else has taken acme.ca. The .ca domain administrators apply different domain name allocation policies than those applied by the .com domain administrators. Conceivably, Acme Chemicals Ltd. may only qualify, within the .ca domain, for a third level domain name such as acme.bc.ca; or, a fourth level name such as acme.vancouver.bc.ca . It is obviously preferable to qualify for a second level domain name.

A trademark registration can be crucial in the .ca domain

  • if it is federally incorporated; or,
  • if it has its own offices in more than one Canadian province or territory; or,
  • if it has registered the trademark ACME in the Canadian Trademarks Office.

These requirements reduce the squatting problem in the .ca domain.

Police your domain name(s) and trademark(s)!

Even if Acme Chemicals Ltd. registers acme.com, acme.ca, acmechemicals.com, acme-chemicals.com, etc. a competitor may still manage to register and use a potentially confusing domain name such as acme.co.uk, acme.bc.ca , etc. Additionally, although a competitor's domain name(s) may be dissimilar to the domain name(s) registered by Acme Chemicals Ltd., the competitor may display on its web site a trademark which is confusing with a trademark registered by Acme Chemicals Ltd. Either situation could involve an infringement of the trademark rights of Acme Chemicals Ltd. We can assist trademark and/or domain name owners in detecting problems of this sort and in dealing effectively with them.

Where do I begin?

By having a search conducted to determine whether your preferred domain name(s) are available. Because use of a domain name could result in an allegation of trademark infringement, we recommend that trademark searches also be conducted. We suggest that you consider several alternative domain names, and list them in order of preference for searching purposes. You may want to have us search multiple names, as discussed above. Domain name searches of this sort cost about CA $200. Please refer to our Trademarks brochure for details of trademark searches and their cost.

What should I do after the search?

We recommend that you move immediately to register your domain name(s), if available. Squatters are busily snapping up names they hope to sell back to the highest bidder. Moreover, very few trademarks (which are a good choice as the distinctive part of a domain name) are unique throughout the world, irrespective of goods or services. If you do not reserve your domain name now some other business may take it. It costs about CA $450 - $600 to have us review domain name issues with you and register a domain name in the .com or .ca domains, in the absence of complications.

Summary

We recommend that you carefully consider the distinctive aspects of the identity which your business presents (or will some day present) to the world, from both a trademark perspective and an Internet domain name perspective. We can assist you in the selection, registration and enforcement of both trademarks and domain names. As competition increases, it becomes progressively more important to ensure that these vital business assets are appropriately protected.

Information required to register a domain name

  1. The preferred domain name, including the preferred top level domain (i.e. .com, .ca, etc.). Please also indicate second and third choices.
  2. The full name of the domain name owner.
  3. A one sentence description of the business conducted by the domain name owner.
  4. The domain name owner's jurisdiction of incorporation.
  5. Particulars of any Canadian or foreign trademark registrations (or pending applications for registration) covering trademarks which are identical to the distinctive part of the preferred domain name. For example, if the preferred domain name is acme.com a relevant trademark registration would cover the trademark ACME; if the preferred domain name is acme-chemicals.com a relevant trademark registration would cover the trademark ACME CHEMICALS, etc.
  6. Does the domain name owner have its own offices in more than one Canadian province or territory? If so, please provide the addresses of each office.
  7. The name, title, postal address, telephone number and fax number of the individual who is to be responsible for administrative and/or billing matters relating to the domain name. Do not list someone who hates to get e-mail!
  8. The name, title, postal address, telephone number and fax number of the individual who is to be responsible for technical matters relating to the domain name. (Two different technical personnel can be specified, but full particulars are required for each individual.) Again, do not list individuals who hate to get e-mail!
  9. The name and title of the person who has approved the choice of the domain name on behalf of the domain name owner.
  10. (If known) the longitude and latitude coordinates of the domain name owner's headquarters location.
  11. (If known) the full hostnames and IP addresses of at least two nameserver hosts for the selected domain name.

For more information, contact (Oyen Wiggs Green & Mutala LLP)