Domain Names, Trademarks, and Business Entity Names

Article and Research

Domain Names, Trademarks, and Business Entity Names

22-May-2021

written by: Hana Bishara 

People often consider business entity names, domain names, and trademarks as the same as they all appear similar, although they are not. The legal rights associated with each are quite different.

I-  Definitions and regimes:

A domain name is a series of numbers and/or letters; that let an internet user visit a specific website.

It points to the online presence of a business, and it is registered so that there is an internet address.

A domain name takes the form of two main elements; it consists of the website’s name and the domain name extension.

As per the registration of a domain name, it is based on the priority of demand. They are allocated on a ‘first-come, first-served basis, and their registration may be limited in time; for example, the enrollment in both Qatar and Egypt will be for 1 to 5 years in Qatar and Egypt.

 

A Trademark is used to identify a product or service in the marketplace and distinguish it from other products and services.

It consists of marks that may be registered that include without limitation: names, signatures, words, designs, a smell, and a sound.

Protection is obtained by registration, which grants its owner the exclusive right to identify and distinguish its goods and services from others.

A registered trademark must specify the types (or classes) of goods and services they will use.

For example, in Qatar, trademark registration is mandatory to be granted rights over a trademark, as it is a "first to file" jurisdiction. Only in some exceptional cases can an unregistered trademark be protected. Such applies to well-known brands.

The trademark applications must be filed with the Ministry of Commerce and Industry of the State of Qatar.

The term of protection in most countries is valid for ten (10) years from the date of filing the application. The same is applicable in Qatar, UAE, Morocco, Algeria as well as in Egypt. However, in other jurisdictions, the protection is for fifteen (15) years like in Lebanon; such term is renewable for the same period by a renewal application and after payment of the renewal fees at the relevant Ministry. The renewal must comply with the Trademarks Law.

 

A Business entity name is a name used to identify a business, as opposed to a product or service. It is the name that the legal entity that owns the business will use for promotion.

If the legal entity owning the business trades under its name, a business name is not necessary.

The legal entity that owns the business may be:

• a person, who is described as a sole trader;

• several people, described as being in partnership; or

• a company.

 

II- Differences:

As a part of a branding strategy, it is very common for a domain name to be the same or similar to a trademark or a business name; however, these different registrations achieve different objectives.

While your domain name and trademark may be the same word or phrase, they are different things.

A domain name can be registrable as a trademark if it functions to identify the source of particular goods or services. It includes the use of the domain name on the actual pages of a website offering services, and offline use of the domain name as something more than just a URL address, such as the use of the domain name on marketing or promotional materials for services and use of the domain name on packaging for a product.

It is possible to register a trademark that is the same as a business name, but their different registrations are to achieve other objectives:

• Registration as a trademark is to brand a product or service.

• Registration as a business name is to identify the legal entity that owns the business (and may have many products and services).

A domain name can be changed if required, but a business entity name usually stays the same. Nevertheless, unlike a business entity name, the standard used to determine trademark infringement is much more rigorous and involved than the standard used to determine whether a business entity name infringes upon another business's entity name. Specifically, courts often look at whether one state trademark is confusingly similar to another and is likely to confuse the buying public.

On the other hand, domain names are different from both business names and trademarks. For example, in Egypt, the rightful owner of the domain name can generally prohibit someone else from using it without involving the courts ( The EUN doesn’t handle any dispute for domain name registration, according to the Egyptian registry website). The reason behind it is that a registrant does not own a Domain Name, and it does not provide any legal or intellectual property rights for this name; it only gives an exclusive license for using the domain name for a specific period. In contrast, trademarks prevent the unauthorized use of a brand by any other individual or entity.

The granting of a domain name license does not give rise to any intellectual property or other rights in the name that is the subject of the Domain Name license or any part of the domain name.

 

It is the applicant’s responsibility to ensure that it has the right to use the Domain Name and that the registration or use of the Domain Name does not:

(i) violate any third-party intellectual property rights or other rights;

(ii) defame any person; and

(iii) contravene any applicable laws in the relevant jurisdiction.

The objective is to allow easy registrations to stimulate business.

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