On appearance, a trivial part of the Intellectual Property family, domain names are in fact a gateway for online consumers. The online search results we obtain after typing in a brand name lets us quickly determine what we think of the business, its credibility and appeal. A strong online presence extends the reach of a brand in a fast and effective way. For the purpose of E-commerce, domain names are the frontliners for successful trade.

What’s in a domain name?

 Presented in its complete form http//www.tradeinsignatures.com a domain is composed of a Hypertext Transfer Protocol http//, followed by World Wide Web www. and the Second Level Domain (Domain Name) tradeinsignatures and completed by the Top Level Domain (TLD) .com.

There is a little more to be said about Top Level Domains. They can be generic, sponsored, unsponsored or in the form of a country code. Most familiar examples of Generic Top Level Domains (gTLD) include .com, .edu, .net, and .org . Sponsored Top Level Domains (sTLD) on the other hand are niche diversions from their generic counterparts, for example .gov, .int and .travel. These intend to represent and are limited to members of a specific community. Unsponsored Top Level Domains (uTLD) are similar but unlimited in their representation and can be in the shape of .audio, .city, .buzz, ‘.prettymuchanything’. Meanwhile, geographically orientated Country code Top Level Domains (ccTLD) are reserved for individual nations and are always represented by two letters, for example .uk (UK), .au (Australia), .cn (China & Hong Kong).

Domain names are bought and renewed, mostly on annual basis. Domain rules, regulations and policies stream from the Internet Corporation for Assigned Names and Numbers (ICANN) who have the authority not only to set the guidelines but also enforce them.

Acquiring a domain name

 ICANN accredits various bodies to act as Registrars with the power to sell domains to the public for a specified period of time. GoDaddy and Nominet are two such registrars. A domain user, as the Registrant, enters into a contract with the Registrar to use the domain name as they wish so long as no external rights are infringed by the registration, such as trade mark rights.

In selling domain names, Registrars work alongside the Registry who acts as the administrators of the Domain Name System (DNS) and are the tentacles of ICANN. Different Registries are responsible for different domain names.

What is it all worth?

Credibility and reputation drives well-known companies to committedly invest in domain names to strengthen their brand’s portfolio. Apple bought iCloud.com for $6 million while Facebook acquired fb.com for $8.8 million. Consumer reach, in the meantime, is an equally compelling reason for a business to acquire that one word that everyone in their field of business wants. Business.com, for instance, was acquired for $7.5 million, but at the top of the list are Insurance.com for $35.6 million and VacationRentals.com for $35 million.

Availability is generally on a first-come-first-serve basis so first-comers are generally in the best position of selling the domain to those who really want it or who may have a legitimate right in the used name. This position has given rise to dishonest practices like cybersquatting, which has also attracted typosquatting, phishing, domain hijacking and pay-per-click. These are threats that keep domain owners continuously alert.

Final thoughts

 A domain name takes a business’ badge of origin to the Internet and, like a trade mark directs a customer in a store to the right shelf for the brand they are seeking, a domain name takes the online consumer to the right website. It is a link ever so important in a world where online purchasing and selection, for many, have become the norm. Securing an easy access to a brand’s online space is key to a brand’s online success, which in practical terms means securing the right domain name and protecting it from competitive use.