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As an eCommerce business owner, your website presence is crucial to your business’ success. A well-designed website, including a memorable domain name, allows customers to find your business. However, there are legal issues to note when buying a domain for your online business, such as intellectual property considerations. This article explains three key legal issues.
This guide sets out how to set up, finance and grow an online business in the UK.
What is a Domain Name?
A domain name is part of your eCommerce website name. It is the latter part of the website address, which you see in the address bar (or the URL). The first part of your domain name is the name associated with your website. For this site, for example, it is ‘LegalVision UK’. The second part is the end of the URL, which for this site is ‘.co.uk’. The latter is the suffix.
Key Considerations
Registration
When buying a domain name for your business, you must register it with the right administrator. For example, if your domain name is ‘.co.uk’, you must register it with Nominet. After registration, you have the legal right to use the domain name for a specific timeframe. Notably, registration does not give you the freedom of ownership. You will also need to renew your registration periodically.
Registering a domain name for your eCommerce businesses is an easy process. You can do this online and have to give simple details such as:
- name;
- address;
- contact details.
Domain Disputes
When you buy a domain name for your business in the UK, one critical legal issue to be aware of is the potential for domain disputes. These often arise due to a difference of opinion regarding who is legally entitled to the domain name. A common reason a domain dispute arises is when one person believes they own trade mark rights to the domain name the other party has. The other party who claims they have the trade mark for the domain name can stop you from using it if they can prove the domain name:
- gives you an unfair advantage; or
- is detrimental to their business.
If you find yourself in a domain name dispute, you can resolve this with a Domain Name Dispute procedure. For example, Nominet provides a Dispute Resolution Service (DRS) for UK domain names. If not, you may need to take the dispute to the courts to resolve. Therefore, it is essential to consider the potential for domain name disputes before buying a domain.
Likewise, carefully choose your domain name and conduct the necessary research to avoid a dispute. There are websites which can help you do this, such as:
- Domainr;
- Domains Bot; and
- Domain Name Soup.
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Passing Off Laws
When you buy a domain for your eCommerce business, consider the potential legal issue of passing off. Passing off laws prevent a business from registering a business name and trading in a way that makes customers associate the business with another successful brand.
Passing off is illegal where there is proof of the following three factors:
- the other business you associate yourself with has established a good trading reputation;
- misrepresentation occurs, which means you allow the public to think that your domain name is associated with the other business; and
- that your passing off causes damage to the business you associate with, such as a loss of profits.
Ultimately, you want your brand to stand out and be memorable. Not only will this assist in avoiding legal disputes, but a distinctive business name and website can potentially attract more customers to your business.
Key Takeaways
Your website for your eCommerce business will need a domain name. A domain name is the suffix of your URL, such as .co.uk. When you buy a domain name for your business, there are legal issues you need to note, including registration. You should also be mindful of trade mark infringement and passing off laws.
If you need help setting up a legally compliance online business, our experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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