A domain name is a websites’ unique address on the internet, which simplifies the complex numerical IP addresses into easy-to-remember words. The registration of a domain name is available on a first come first served basis and is indeed significant if a custom / unique domain name is required, so that registration by a third party is prevented.

Domain names are divided in two sections, with the first one being the top-level domain (TLD), such as “.com” and the second one the second-level domain (SLD), which is a word that each applicant chooses to register, usually being the name of the company.

It is indeed important to secure the rights of a domain name, by registering it with a reliable domain registrar, either accredited by the Internet Corporation for Assigned Names and Numbers (ICANN) or a national ccTLD manager, responsible for the registration of domain names that include the unique top-level domain of each country, such as “.cy” for Cyprus.

When a domain name is registered, exclusive use and control are secured for a specified period, along with the ability to sell and transfer ownership. While registering a domain name does not neatly fit into the umbrella of the traditional intellectual property law protections, legal implications might arise if a domain name is identical or similar to a trademark.

Domain name disputes arise mainly when two parties claim the rights of a domain name. Broadly speaking, these disputes may be classified, among others, as follows:

1. Cybersquatting arises when a domain name, being identical or confusingly similar to a well-known trademark or brand name, is registered and/or used by a third-party in bad faith for the purpose of selling the domain name’s registration, and concurrently its rights, to the trademark owner and diverting traffic from the rightful owner's / user’s website.
2. Typosquatting occurs when a trademark is being slightly misspelled and registered in bad faith, again for the purpose of profiting from the sale of the domain name’s registration to the trademark owner thereafter.
3. Trademark infringement arises when a domain name is confusingly similar or identical to a trademark, usually containing a well-known brand name or the word trademark itself.
4. Passing off happens when someone, inter alia, uses a domain name or a brand name that is confusingly similar or identical to another, misleading consumers and damaging the original brand’s reputation.

Domain name disputes can be resolved through several legal and administrative proceedings, including, but not limited to, filling a complaint with ICANN or the domain name registrar, court proceedings that may involve claims for trademark infringement and passing off, and arbitration. The route for resolving a domain name dispute can be determined based on the procedural rules of the competent authority, nature of the dispute, complexity of the case, desired outcome, timeframes and financial resources.

Domain name registration is a crucial step for establishing the online presence of a company and safeguarding the right of exclusive use for the registrant. However, with the rapid growth of the tech industry and the increasing value placed on online presence, domain names have become increasingly susceptible to abuse, resulting in a rise of domain name disputes. Resolving these disputes effectively requires an enhanced analysis by your trusted advisors and expertise to undertake steps for resolution.