information technology, domain names and e-commerce

what is a domain name?

Each computer linked to the Internet is identified by a unique Internet Protocol number (IP) made up of four sets of digits. The IP number is in essence the "address" of the specific computer. A domain name is simply an easy-to-remember alias for an IP number. Simply put, www.law.co.za is easier to remember than 198.123.1.1.

how will a domain name benefit me?

The Internet has developed into a primary marketing and communications tool for many businesses. According to predictions, in the year 2002, 948 million people will be Internet users, all within reach of a desktop PC. Your company's web page, hosted by a distinctive domain name, will ensure that you have access to this global market.

what if i already have a domain name?

To ensure that your intellectual property is afforded the best protection on the Internet, we recommend that a domain name be registered in each key-trading jurisdiction of your company. We suggest than an international domain (.com) be supported by a National top level domain name in the country of principal business (South Africa = .co.za).

what if i do not have a web site?

The importance of registering a domain name now is that when you decide, at some future time, to have a web site, you will be entitled to use your trademark and/or company name as a domain name. A point to remember is that many domain name registries require that name servers are supplied and set-up before registering a domain name. If you do not have a web site, and hence no name servers, we will host your chosen domain name on a default web site informing your clients and customers that your web site is currently under construction and will be available sometime in the future.

are there any disadvantages in not registering a domain name?

There may well be. Domain names are registered through Network Information Centers (NIC's) throughout the world. Due to the lack of governmental control of the NIC's, your company name and/or trademark/s can be registered by third parties as their own domain name.

In this regard it is important to note the following:

• The registration of a trademark does not guarantee that this trademark will be available to you for registration and use as a domain name
• Domain names are registered on a first come first serve basis
• The use of a domain name can constitute trademark infringement
• Ownership of multiple domain names is permitted. Multiple domain names can be linked to a common web page

any advantages?

Early registration of your trademark and/or company name as a domain name has the following advantages:

• You will prevent third parties from registering your trademark and/or company name as a domain name, thereby minimizing the chances of costly future litigation
• Your distinctive domain name will assist clients and customers in locating your web page
• A distinctive domain name is an asset to your company

i have a specific domain name in mind but someone has already
registered it. what do i do?

Firstly, you may have a legal recourse against the domain name holder should the use of the domain name constitute trade mark infringement or passing-off. A trade mark attorney will asses the merits in each given case and advise you on the chances of success in retrieving your domain name through legal proceedings.

A second option would be to approach the holder of the domain name with an offer to purchase. We will either approach the holder on your behalf or assist you in locating the contact details of the holder should you want to contact him/her personally. Once the offer to buy has been excepted we will act as a neutral third party to insure that the seller gets his/her payment and the buyer receives ownership of the domain name.

why should I register my trade mark as a corresponding Internet domain name?

There are three very important reasons why you should act now in registering your trade mark as a corresponding domain name, specifically:

• Precautionary: Domain Names are registered on a first-come, first-served basis, irrespective of whether the applicant has any legal right to the name or not. By registering your trade mark as an Internet domain name, you effectively block unscrupulous third parties from taking unfair advantage of your established trade mark rights, and potentially causing you harm.
  
• Proactive: The Internet has imposed itself as a force to be reckoned with in international trade and industry. By registering an Internet domain name you are able to take advantage of your good name by effectively extending its use to the Internet. This becomes an effective and valuable business tool.
   
• Practically: Once your domain names have been registered, they can either be associated with individual product-specific websites or with a single central website. The proper use and management of these domain names will undoubtedly lead to a stronger, more prominent brand on the Internet.

what are the considerations in appointing a domain name administrator?

There are several considerations to be aware of when appointing a domain name administrator, namely:

• Any intellectual property portfolio requires effective management in order to ensure that appropriate action is taken at the appropriate time to preserve and grow the value of the portfolio. A domain name portfolio is no different, and also requires effective management on a continual basis. The question is: who should do the job? The key to effective domain name portfolio management is finding the right person to assume this responsibility.
   
• Many companies assume the risk internally, and allocate the responsibility to their IT department or possibly their Marketing department. While this approach may allow the company to have a hands-on approach to the management of their domain names, a problem arises when employees leave from time to time, or are transferred or promoted. Experience has taught us that most domain name hijacking matters have involved disgruntled ex-employees who have seen the hijacking of the company's domain names as the best means of revenge. In many instances, the actions of these employees have brought the company to a virtual standstill as email and Internet services are corrupted. In essence, the long-term nature of the administration position, the skills required and the cost of dedicating someone to the job are notable concerns.
   
• An alternative to employing an in-house domain name portfolio manager is getting your Internet Service Provider (ISP) to manage the responsibility on your behalf. In our opinion this is often not the best option. Experience has shown that some ISPs register domain names in their own names so as to use them as a lever against their clients' leaving. Such domain names may also become the subject of a virtual lien in security outstanding debts. A further disadvantage to letting your ISP manage your domain name is that ISPs are invariably large organisations and domain name portfolio management is secondary to their core businesses. The result is that insufficient attention, care and skill are dedicated to this critical service.

why should I consider appointing a professional domain name administrator?

There are many advantages in allowing professionals to manage your domain name portfolio. They include:

• Accurate details and legal compliance: A professional domain name portfolio manager will always ensure that the registration details for a domain name are accurate, complete and meet the criteria set by the Electronic Communications and Transactions Act, 25 0f 2002. This effectively guarantees that the proprietary details of the domain name identify the true owner without leaving any cause for doubt.
  
• Cost saving and risk reduction: Allowing professionals to administer your domain name portfolio frees your staff from performing work that is not within their core area of expertise or is not essential to their job functions. A vital part of administering domain names is attending to the payment of renewal fees and vetting electronic updates. Owing to the fact that the different Registries and Registrars prescribe different renewal periods and criteria, it is relatively easy for a domain name to slip through the cracks and not be renewed.
   
• Structuring your Portfolio and access to information: A professional domain name administrator will ensure that you are adequately informed of the status of your domain name portfolio at all times, especially when domain names are due for renewal and/or are under legal challenge. Furthermore, the domain name administrator should advise you on what domain names you should register, when to register them and when it would be better to allow them to lapse.
   
• Monitoring conflicting registrations: It has been said that imitation is the sincerest form of flattery. Although you may not be flattered, you can be sure that as soon as you achieve some degree of success regarding your Internet presence, cyber squatters will start noticing you. Cyber squatters typically attempt to feed off your reputation and goodwill by registering variations of your trading name and then directing these domain names to their own websites. A professional domain name administrator will regularly monitor the various domain name registers and report any suspect registrations to you immediately.

Should you have any further questions that relate to our domain name administration service please contact us