Domain names, like trade marks, are assets to any business and it is thus essential to have a domain name strategy in place. Protecting a domain name is important to protect the company brand. A domain name is registered in order for a website to exist online (for example, “companyname.co.za” and “companyname.africa”) and this forms the basis of the online brand. A domain name can only be registered to a company if it is not already registered to another proprietor. If a company’s preferred domain name has already been registered by another party, it is necessary to think of a different domain which still reflects the brand or alternatively, to consider purchasing the existing domain name from the other party.

Defensive Domain Name Registration

When registering domain names, it is important to adopt a defensive strategy to prevent others from registering domains that could be linked to your company or cause confusion among users.

For example, a nursery might register a primary domain with its company name, such as plants.co.za, if available. It may also consider registering related domains, like plantsSA.co.za, to prevent others from using them.

Competitors or domain name traders sometimes register domains in ways that limit a company’s ability to secure preferred names. Proactively registering key domains helps protect your brand and ensures control over your online presence.

The Strategic Value of Domain Name Registration

An interesting example took place in 2007 when Brian Sharples purchased the domain, VacationRentals.com, for the price of $35 million. He bought the domain for his online vacation rental business, HomeAway. It is reported that the only reason he bought the domain was so that Expedia (the direct competition) couldn’t have the URL. It is important to note that a domain name can exist without a website on it. Therefore, registering a domain could be for different reasons:

• To be used as the primary “address” for a company’s website.
• Not to be used as the primary “address” but rather to point to the primary “address” of a company’s website.
• Defensively, in order for competitors not to use or acquire the domain. The domain can be registered but then parked so that others do not register or use it.

If a company has sub-brands/products, it may be necessary to register domains for these as well. These domains do not have to point to individual websites but can rather point to the primary website. For example, the nursery can consider registering the domains “potplants.co.za” or “outsidefurniture.co.za” if available, and have these domains direct to the primary domain and hosted website (plants.co.za).

Registering Domain Names for International Expansion

When planning the rollout of a company or product, it is important to consider the geographic areas where the business will operate, as it may be necessary to register domain names in those countries.

For example, if a nursery plans to open an office in the United Kingdom, registering the domain plants.uk would be a strategic step. Anticipating future expansion and potential competition helps ensure that key domain names are secured before they are taken by others, protecting your brand and online presence in new markets.

Ownership of a domain can be transferred from one proprietor to another. This would be applicable to mergers and/or acquisitions, and should also be considered when trade marks are assigned from one proprietor to another. In certain instances, a moratorium period post-registration or post-prior transfer may be applicable.

A domain name transfer can also occur where a domain is changed to a different domain name registrar. Before transfer, it is important to ensure that the domain names have in fact been registered, are owned by the seller and that the seller is willing to transfer ownership. A domain name strategy for these acquired domains is essential in the full commercial exploitation thereof.