Before the advent of the Internet, all a brick and mortar business had to do was choose a name, ensure that it was original, at least in the neighborhood, get registered and licensed with the city or state, and hang out a sign. Nowadays, choosing the name is much more complicated. Every business requires not only a name, but also a domain - the actual Internet address (URL) that directs a consumer to your website. Most owners would like a name that in some way reflects the product or services and is memorable; but because of the sheer magnitude and global scope of the Internet, competition is fierce. For this reason, there are strict domain name laws that apply to domain name registrations, and these are open to enforcement internationally.
ICANN (The Internet Corporation for Assigned Names and Numbers), was established in 1998 as a not-for-profit public-benefit corporation with participants from all over the world. The purpose of ICANN is to keep the Internet secure, stable and interoperable. It promotes competition and develops policy on the Internet's unique identifiers. ICANN is responsible for the allocation and registration of IP addresses, aka URLs, or domain names around the world.
ICANN has legally sanctioned sites around the world that are authorized to sell and register domain names. Because these sites are all interconnected, anyone seeking a domain name will know immediately if the chosen name is available and the price to register it. Once it has been accepted, it's wise to sign up for a long term; cyber squatters who are just waiting for a successful domain name registration to expire will pounce at the first opportunity if an owner fails to renew on time. Since the domain name is an integral part of the business brand, it is critical to keep the registration current.
While most people believe that once they have procured and registered a domain name, they are legally secure and safe from any legal disputes, unfortunately, this is not always the case. Infringement can and does occur all too often. While mimicry is very flattering, in a competitive business world, it can also be very costly. If your company is very successful, it is not surprising that another business might try to select a name very similar to yours. Likewise, while your registration might be accepted, it is possible that the name you have selected is in fact very similar to that of another successful business, perhaps across the country. However, on the Internet, that geographical difference is unimportant, and this is one way that a new business owner might find himself blindsided by an unforeseen legal dispute over a business name. Big corporations around the globe spend considerable sums of money defending their brands every year.
In the event that a legal issue arises either as a result of another business allegedly infringing on your trademark or domain name, or because another business believes you have infringed on their established brand, the dispute can be settled either through arbitration or litigation. ICANN was instrumental in the establishment of The Uniform Dispute Resolution Policy (UDRP); an administrative policy that outlines the process to determine the outcome of a dispute.
There are several important differences between litigation and arbitration, the latter of which is binding unless otherwise stated in the petition. Both are dispute resolution processes, but arbitration is often preferred to litigation because it is less costly and the case is heard much more quickly. Basically, arbitration is overseen by an arbitrator who decides if there was any wrongdoing, and if so, how the wrong needs to be corrected and the wronged party should be compensated. Unless the loser of the case can prove some sort of bias or wrongdoing by an arbitrator, the decision is final. There is no recourse now to take the case to a court of law. In most domain name disputes, the arbitrator is appointed by ICANN. Litigation of course, requires that any disputes be resolved in a court of law, which is not only a slow process, but can also be quite expensive.
All in all, the choosing of a domain name need not be terribly complicated, but the wisest course is always prevention. A prudent prospective business owner will consult with an IP attorney before selecting the business name or registering a domain name. As with many legal matters, what you don't know can hurt you, so get the facts and proper course of action from a domain name disputes attorney before launching your Internet presence to avert any possible infringement problems later on.
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Author Stephen Daniels highly recommends Baker & Rannells at http://www.tmlawworldwide.com for those seeking intellectual property attorneys. Their legal team, based in New York, has more than 63 years experience in both the U.S. and around the world. Their specialty is helping businesses with trademarks, domain names, and copyright law, including research, registration and litigation when appropriate.
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