<p>Domain names are still a relatively unknown occurrence and despite being a natural part in</p><p>most people’s every-day life, there are few who reflect over their importance. The original</p><p>function of domain names was merely to serve as technical addresses and to facilitate the</p><p>locating of websites on the Internet. Today domain names are much more than this. In</p><p>addition to the address function, domain names may also serve as indications of goods,</p><p>services, businesses or information. The domain name is usually the first contact one gets</p><p>with a website and it has become crucial for businesses to have their company name or</p><p>trade marks registered as domain names. The issue of the legal status of domain names has</p><p>mainly been discussed from an American point of view and in Sweden this discussion has</p><p>almost entirely fallen under the radar. If the legal status of a domain name were clear, it</p><p>would be easier for businesses to avail themselves of the value of that domain name. It</p><p>would possibly even contribute to strengthening the legal protection for the domain name</p><p>holder, in for example insolvency or bankruptcy procedures.</p><p>Intellectual property exists in many different forms, the main being patents, trade marks,</p><p>copyright and design rights. Although there are many differences between them, they all</p><p>have in common that they establish property protection over intangibles such as ideas,</p><p>inventions, signs and information. As a domain name is not a physical object, there can be</p><p>no doubt that it is an intangible. The question is whether it is property. Intellectual</p><p>property is not a static area and it can, in line with societal and technological development,</p><p>be expanded to include new types.</p><p>The legal status of domain names is generally discussed in the light of the close connection</p><p>they have with trade marks. Except from their original function, the trade mark function of</p><p>domain names can probably be considered as one of the most commonly accepted. It is</p><p>indicated in this thesis that that function contributes to that a domain name can be</p><p>considered as a distinctive sign and thereby obtain protection, in the same way as an</p><p>unregistered trade mark.</p><p>According to current accounting rules, businesses may, to some extent, avail themselves of</p><p>the value of a domain name. Domain names are under certain circumstances identified as</p><p>intangible assets and even as ‘similar rights’ to for example trade marks and patents in</p><p>accounting and taxation situations.</p><p>At this time it is not possible to legislate on the area of the legal status of a domain name</p><p>on a Community level, as this most likely would have to include a consideration of the</p><p>existence of property rights and consequently fall outside the legislative powers of the</p><p>Community.</p><p>Both the legal development and the legal discussions on the topic of the legal status of</p><p>domain names in Sweden have been relatively sparse. Nonetheless, there have been some</p><p>interesting opinions.</p><p>By investigating what positions the different authorities, academics and practitioners have</p><p>taken on the legal status of domain names it can be concluded that the prevailing opinion</p><p>in Sweden is that domain names are not considered as property. The reason for this seems</p><p>to be that domain names as such, are in fact no more than technical constructions and that</p><p>by registering a domain name the registrant only becomes the holder of a contractual right.</p><p>However, there are some diverging opinions which could suggest that the legal status of</p><p>domain names in Sweden is not yet settled. The aspects which are then taken into</p><p>consideration include that domain names have developed to become important and</p><p>valuable assets for an increasing number of businesses. A domain name is a precondition</p><p>for the creation of a website and therefore of crucial importance for, in particular, online</p><p>based businesses. However, they are of increasing importance for all businesses to reach</p><p>out to and compete over the same customers.</p><p>It is advocated that the fact that domain names are freely traded with indicates that domain</p><p>names are property. It has also been questioned whether an asset with a true economic</p><p>value, such as a domain name, can exist without being considered as an item of property.</p><p>The steps taken in other jurisdictions have shown that the legal status of domain names is</p><p>not even clear in some of the countries with the greatest experience of domain names.</p><p>Nonetheless, the legal status is given attention in those countries and the discussion has</p><p>been initiated. In general, it can be concluded that the development seems to go toward</p><p>higher awareness of the value of domain names.</p>
| Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-1089 |
| Date | January 2008 |
| Creators | Davidsson, Louise, Thulin, Sara |
| Publisher | Jönköping University, JIBS, Commercial Law, Jönköping University, JIBS, Commercial Law |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, text |
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