by Joachim Rudo, Attorney-at-Law
 

 

 

Table of Contents:

1.  Introduction
2.  Trademark Protection
     2.1 Domestic and Foreign Trademarks
     2.2 Selection of the Trademark Name
     2.3 Trademark Search
     2.4 Trademark Registration
3.  Domain Name Protection
     3.1 Types of Domains
     3.2 Selection of the Domain
     3.3 Domain and Trademark Search
     3.4 Domain Registration
4.  Interdependence of Trademark and Domain Registration
5.  Check List: International Protection of Trademarks and Domain Names
     
 
   
  1. Introduction

The evaluation of an enterprise or a trade or service mark depends to a crucial extent on it's Internet Website. The corporate site is an indispensable prerequisite for a modern enterprise or trademark image. This applies independently of the possibility and the importance of e-commerce-activities, since also enterprises without actual or potential possibility for online sales are judged on the basis of their website. The registration of the company (www.yourcompany.de) or product name (www.yourproduct.de) as a domain name facilitates not only the accessibility of the website and thus promotes public relations and customer relations by preventing the necessity of using search services to find the corporate website, but also promotes a trend-setting enterprise image.

In Germany as in many other countries there is no requirement that an entity (a person or company) actually be using or even intend to use a company or product name in order to be able to register that trademark or domain in the entity`s name as „owner" of the trademark. There is no requirement that a domain name mirror the name of the applicant, nor even that it be a word. Trademark registration ownership in most countries is normally granted to the first entity who files for registration in that country, without regard to actual use of the mark („first come first served"). Not only for this reason it is recommendable to file trademark and domain registration applications as early as possible in order to protect trademarks and trade names. This applies both to markets in which the enterprise is already active and to those markets where a market entrance is intended or is considered possible. By an early registration one can prevent that the trademark and trade name for these and other markets is irreparably lost, or avoid substantially higher costs for the acquisition of the trademark or trade name from the then-entered owner at a later point of time. Beyond that, the registration and use of a further Internet Domain can produce additional traffic on the own Website. 

In many countries domestic top level domains exceed the importance of international top level domains (dot.com, dot.net., dot.org) by far. In Germany this can be seen by the fact that in early 2001 more than 4 million domestic domains (dot.de) were already registered. For this reason an early protection of national domains is urgently required abroad. In some countries the use of a dot.com domain maybe sufficient - in non-English-speaking countries one gets access to a substantial part of the potential customers only by using the Top Level Domain of the respective country (e.g. dot.fr for France and dot.it for Italy). Not only due to language differences, but also with regard to the goods and services supplied in the respective country potential customers prefer direct access to the domestic subsidiary, branch or distributor which they expect to find rather on the website with the respective domestic Top Level Domain (dot.de, dot.fr etc.) than on the general corporate site (dot.com). 
 

2. Trademark Protection

The registration of a trademark grants protection from unauthorised use of the enterprise or product name by third parties and protects the trademark owner through damage claims and cease and desist claims. 

2.1 Domestic and Foreign Trademarks

Apart from domestic trademark registrations with trademark offices in more than 100 different countries there is the possibility of an international trademark registration with various national trademark offices. An international trademark registration grants protection in the Signatory States of the Madrid Convention. Beyond this intergovernmental agreements can guarantee that the earlier trademark registration made in one country has priority before a later registration in another country. Furthermore, in the European Union there is the opportunity to register a community trademark. The community trademark grants a protection in the individual European Union Member States as during entry of a respective national trademark. The community trademark can be announced both at the European Office for Harmonisation in the Internal Market in Alicante and with the national Trademark Offices of the Member States. 

2.2 Selection of the Trademark Name

When selecting the name of an enterprise or a product, irrespectively of the time of registration of the trademark, the following factors should be taken into consideration: 

· the suitability from marketing criteria;

· questions of trademark and competition law; 

· the availability as trademark and domain. 

All criteria should be considered promptly not only on national, but also on international level. While selecting a trademark the potential use of the same trademark worldwide should be considered. Normally the word constituting a domestic trademark does not have the same meaning in a foreign language or in a different cultural, religious, national or ethnic environment. Words or logos which are acceptable and distinctive in the home country may have negative or even offensive meaning in foreign cultures or when translated into foreign language. Similarly, some words or logos which are based on unique domestic culture or events may be meaningless or incomprehensible in foreign countries. Thereby not only the spelling but also the pronunciation has to be considered. Only an early examination permits in the long term uniform or at least co-ordinated marketing measures on an international level. 

2.3 Trademark Search

Before trademark's entry a trademark search is to be determined necessarily over whether the desired trademark is available. 

It is to be considered that the trademark registration generally refers only to certain goods and services, and that the trademark name does not gain protection for all possible kinds of products. All goods and services are classified according to the international class of goods directory, which is used by various trademark offices. Despite the partitioning in 42 different classes it is possible that a risk of confusion exists for goods entered in different classes of goods simultaneously. This question depends, among other things, on the similarity of goods. There are goods/services which are similar although they are entered in different classes; for instance, a restaurant with theatre performances can be entered both in class 41 under „entertainment" and in class 42 under "providing of food and drink". On the other hand there are goods/services that are entered in the same class but  are not similar; for example it is possible that one person has a registered trademark for coffee while at the same time another person holds a registered trademark for spices, both falling under class 30. Due to the possibility of the similarity of goods entered in different classes the search should not be limited to the class of goods the registration is intended for. If a trademark is already entered for any commodity or service, it has to be checked whether there is product identity or a likelihood of confusion with regard to the product or service in question for which the trademark is intended to be entered. 

A simple trademark search for a word trademark is offered by several trademark offices on-line. With a simple search the likelihood of confusion of the looked up term with a similarly sounding or lookingword trademark already registered cannot be recovered. For instance, a simple trademark search for the trademark "Rudo" in Germany would not show whether the trademark "Rudow" is already entered and prevents the use of the trademark "Rudo". For this purpose a similarity search is required. However, a similarity search can only determine registered trademarks. It does not cover the case of current trademark applications having not been registered, yet, but having priority. Furthermore, a similarity search does not cover cases of famous trademarks enjoying priority even before registration. An active domain may signal that trademark protection exists even before the registration of a trademark. Thus, it is advisable to examine the availability and current use of a domain when selecting a trademark.

2.4 Trademark Registration

The filing of an application for entry in the register of trademarks is only recommended after completion of a trademark search. In many cases it is advisable to conduct a similarity search. 

The various trademark offices provide forms for trademark registration. In some countries only domestic persons/entities are allowed to register, in some countries an attorney is required for filing.

3. Domain Name Protection

3.1 Types of Domains

In many countries, domestic top level domains (.de, .fr etc) exceed the meaning of .com-domains with regard to domestic business activities. The administration of the national Domains is made by national domain registration offices mostly in the respective state. International Domains (.com, .org, .net as well as the new Top Level Domains .biz, .pro, .name, .aero, .museum, .info and .coop which will available by the end of 2001) are intended to be used by enterprises or institutions worldwide. Therefore they have a larger set of potential prospective customers and are to smaller extent available than domestic domains. 

3.2 Selection of the Domain

The legal restrictions and prerequisites for the selection of the domain name differ in various countries. For instance, in Germany a valid domain name may only consist of numbers, letters and the character „-„(hyphen), the minimum length of the domain name amounts to three, the maximum length to 63 characters. As well as in various other countries the use of certain generic terms is restricted. However, in Germany, unlike the situation in many other countries, the domain registration office (DENIC) does in general not determine whether third parties have opposing claims to the domain name or whether the use of a generic term is prohibited. In Germany, these questions are left to disputes brought before the courts by private parties. Unless someone invokes a civil proceeding to challenge an assigned domain name, the registrar will engage in absolutely no review or examination to determine whether an applicant'a registration and use of a domain name would impinge on anyone else's trademark rights. 

In some countries an entered trademark is  a prerequisite for a domain registration. In most cases a registered trademark supersedes the registration or use of a domain. Under certain circumstances the release of a domain can be required even due to a trademark entered temporally later, if a famous product already achieved a considerable market validity before the trademark registration. To that extent not only the costs of the entry of the domain would be wasted, but also the investments in the appropriate (not entered) trademark names connected with the operation of the Website. Therefore, in many cases a simultaneous trademark registration is recommended beside a domain registration.

In most cases the need for a timely registration of a domain is higher than for the entry of a trademark. Since trademark protection concerns only certain goods or services, in general there is still an opportunity to register a trademark for a specific product even if a registration of the same trademark name for a different product or service has already been entered. More than one producer can use similar or even identical marks when their goods or services are sufficiently distinct and when other factors militate against confusion as to source. For instance, the same trademark may be entered for a cinema named „Universal", for an entertainment company named „Universal" and a real estate agency of the same name). In contrast, a domain name is assigned only once. Many persons of the same name and many different trademark owners with the same registered trademark name could lay a claim on the domain due to their name or trademark. A trademark can be entered a second time, a domain name cannot. Abroad it has to be considered that a competitive use of firm names or products in abbreviation form (BMW, NTT etc.) is more likely than the use of words or names, which occur almost exclusively in the own language. Therefore, an early registration of domains abroad is particularly recommended for names that are common in several languages and for abbreviations.

3.3 Domain and Trademark Search

Before the registration of a domain not only a domestic and international domain research, but also a search of domestic and foreign trademarks is recommended. An entered trademark may have priority to a domain so that the registered domain has to be released to the trademark owner. 

3.4 Domain Registration

The registration of national domains with national domain registration offices can partly be made by Internet Service Providers from abroad. In some countries foreigners residing abroad can be registered as domain owner, in other countries a residence/seat of the person/enterprise in the appropriate state is required. Some countries do not allow foreigners to register, in some countries representation by an attorney is required. 

In Germany, a registration of dot.de domains with the DENIC is usually made by the different members of the DENIC and other Internet Service Providers. A registration directly with the DENIC is connected with substantially higher costs. If a dot.de-domain is already occupied, the release of the domain can be demanded from the domain owner due to trademark law, competition law or the right of name based on general civil law rules under certain circumstances. In addition there may be damage claims or claims to cease and desist. 

Claims concerning the release of domain names are treated differently in various countries. In some cases they are handled by national domain registration offices (either governmental or private companies), in other cases by courts in the respective country or by the WIPO Arbitration Court. Since the release of a domain used by a third party is in general far more difficult, lengthily and expensive abroad, especially if one does not have trademark protection in the respective country, the importance of an early domain registration is even higher abroad than in a domestic market.
 

4. Interdependence of Trademark and Domain Registration

The use and registration of trademarks and the use and registration of domains supplement each other. An entered trademark can be a prerequisite for registration or claim for release of the domain name or at least facilitate the release of the domain name. On the other hand the use of a domain name in practice may lead to a famous trademark granting protection even before registration of the trademark. Therefore, the early co-ordination of the use of enterprise and product names and trademark and domain registration is advisable.

 
 
  5. Check List:

International Protection of Trademarks

International Protection of Domain Names

  • identity searches (wordmarks) of registrations and applications for domestic trademarks, community trademarks and foreign trademarks
  • similarity searches of domestic, community and foreign trademarks
  • registration of domestic, international, community and foreign trademarks (in individual countries or by groups of countries/regions as a service package)
  • asserting and protection from requirements on entry, objection, deletion, damage claims and claims to cease and desist before domestic and foreign courts and trademark offices
  • simple search of national (domestic and foreign) and international domains
  • similarity searches for trademarks and domains (domestic and abroad)
  • registration of national (domestic and foreign) and international domains (in individual countries or by groups of countries/regions as a service package)
  • asserting and protection from requirements on entry, release, deletion, damage claims and claims to cease and desist before domestic, foreign and international courts, domain registration offices and arbitration courts

 

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