The Legal Status of Domain Names : A Business Context

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Domain names are still a relatively unknown occurrence and despite being a natural part inmost people’s every-day life, there are few who reflect over their importance. The originalfunction of domain names was merely to serve as technical addresses and to facilitate thelocating of websites on the Internet. Today domain names are much more than this. Inaddition to the address function, domain names may also serve as indications of goods,services, businesses or information. The domain name is usually the first contact one getswith a website and it has become crucial for businesses to have their company name ortrade marks registered as domain names. The issue of the legal status of domain names hasmainly been discussed from an American point of view and in Sweden this discussion hasalmost entirely fallen under the radar. If the legal status of a domain name were clear, itwould be easier for businesses to avail themselves of the value of that domain name. Itwould possibly even contribute to strengthening the legal protection for the domain nameholder, in for example insolvency or bankruptcy procedures.Intellectual property exists in many different forms, the main being patents, trade marks,copyright and design rights. Although there are many differences between them, they allhave in common that they establish property protection over intangibles such as ideas,inventions, signs and information. As a domain name is not a physical object, there can beno doubt that it is an intangible. The question is whether it is property. Intellectualproperty is not a static area and it can, in line with societal and technological development,be expanded to include new types.The legal status of domain names is generally discussed in the light of the close connectionthey have with trade marks. Except from their original function, the trade mark function ofdomain names can probably be considered as one of the most commonly accepted. It isindicated in this thesis that that function contributes to that a domain name can beconsidered as a distinctive sign and thereby obtain protection, in the same way as anunregistered trade mark.According to current accounting rules, businesses may, to some extent, avail themselves ofthe value of a domain name. Domain names are under certain circumstances identified asintangible assets and even as ‘similar rights’ to for example trade marks and patents inaccounting and taxation situations.At this time it is not possible to legislate on the area of the legal status of a domain nameon a Community level, as this most likely would have to include a consideration of theexistence of property rights and consequently fall outside the legislative powers of theCommunity.Both the legal development and the legal discussions on the topic of the legal status ofdomain names in Sweden have been relatively sparse. Nonetheless, there have been someinteresting opinions.By investigating what positions the different authorities, academics and practitioners havetaken on the legal status of domain names it can be concluded that the prevailing opinionin Sweden is that domain names are not considered as property. The reason for this seemsto be that domain names as such, are in fact no more than technical constructions and thatby registering a domain name the registrant only becomes the holder of a contractual right.However, there are some diverging opinions which could suggest that the legal status ofdomain names in Sweden is not yet settled. The aspects which are then taken intoconsideration include that domain names have developed to become important andvaluable assets for an increasing number of businesses. A domain name is a preconditionfor the creation of a website and therefore of crucial importance for, in particular, onlinebased businesses. However, they are of increasing importance for all businesses to reachout to and compete over the same customers.It is advocated that the fact that domain names are freely traded with indicates that domainnames are property. It has also been questioned whether an asset with a true economicvalue, such as a domain name...

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Inactive member [2008-01-01]   The Legal Status of Domain Names : A Business Context
Mimers Brunn [Online]. https://mimersbrunn.se/article?id=11877 [2024-05-17]

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