Domain disputes in competition.
Domain registration is currently one of the most effective and common forms of "virtual existence" of competitors. Domain names are included in the system of industrial property rights related to signs. They serve the same identifying - and distinguishing - goods and services in the marketplace function as other industrial property rights for signs, especially trademarks, but in the online world. This is the main reason why there arefrequent conflicts between individual signs contained in domain names. This creates competition on the Internet, and logically, it also leads to certain forms of unfair competition. This is a procedure consisting of speculative registrations of domain names, which fulfills the conceptual features of the general clause on unfair competition. In this context, the author highlights the function of "universality" of the general clause on unfair competition, which can also be applied to domain name disputes. The author compares the judicial resolution of domain disputes and the alternative resolution of domain disputes in relation to the individual claims that can be applied in disputes. In conclusion, the author seeks solutions to prevent speculative domain registrations.Keywords:
domain name, unfair competition, cybersquatting (abusive registration), alternative domain dispute resolution, judicial domain dispute resolution.KOPČOVÁ, R.: Domain name disputes in economic competition.
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Právny obzor,
108
, 2025, special issue, pp. 21-60.Introduction
Competition
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exists wherever there is an economic market. It is determined by time, space and subject matter. Competition is beneficial to the country's economy. According to current legal theory and judicial practice, it can be any market space, including the virtual space. The Internet, as a dynamic, rapidly and flexibly developing virtual environment, which lacks comprehensive and uniform legal regulation, creates suitable conditions for committing illegal activities. Such a relatively frequent case of illegal activity in practice is also the violation of the rights of other competitors in the Internet sphere, specifically in the domain space.
Domain names serve as unique web addresses that allow users to access specific websites and the resources or services offered within. Domain registration is currently one of the most effective and common forms of "virtual existence" of competitors. "Domain names", according to legal literature experts, are included in the system of industrial property rights related to signs. It can be concluded that domain names serve the same identifying - and distinguishing - goods and services in the marketplace function as other industrial property rights for signs, especially trademarks, but in the online world. In competition, domain names are used to identify and represent products and services on the internet (that's the same role of a trademark in the non-online world), to identify persons, businesses, events in the virtual world (like, for example, trade names or names of natural persons and legal entities). Therefore, in practice, domain names often conflict with other rights to designations. Rights to designations refer to the legal entitlements associated with specific names, titles, or identifiers used to distinguish entities (like businesses or products) or to denote roles or positions. These rights can protect against unauthorized use, misrepresentation, or infringement, ensuring the rightful owner maintains control and recognition.
In the article, we analyze conflicts of individual rights to designation in the domain space, and, in conclusion, we try to find solutions to prevent them. Based on the title of the article itself, the object of our research is economic competition. Our goal is to approach the unauthorized registration of domain names as an unfair competition act. We base our work on Slovak commercial law, according to which the provision of § 44 (1) of Act No. 513/1991 Coll. (Commercial Code) as amended: "Unfair competition is an act in economic competition that is contrary to good morals of competition and is capable of causing harm to other competitors or consumers." By analogy with the legal regulation of unfair competition, we highlight the universality of the general clause, which can also be applied in individual disputes about domains.
In the research, the following hypotheses were used:
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Domain names serve the same identifying - and distinguishing - goods and services in the marketplace - function as other industrial property rights related to signs, especially trademarks, but in the online world.
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In practice, domain names often conflict with other industrial property rights related to signs.
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From an extensive interpretation, there is a competitive relationship between Internet users on the Internet. Therefore, there is also competition in the domain space, as a defined area of the Internet.
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Law against unfair competition can be a suitable method for resolving domain name disputes, particularly in cases involving cybersquatting and trademark infringement.
A domain name does not have a legal definition that is generally accepted. Also, there is no consensus in doctrine and case law on the legal nature of domain names. This is because the term domain name has such legal definition, which covers only its basic, technical characteristics. But it does not cover the features of the legal phenomenon of domain name and its legal nature. We therefore define the domain name
terminus technicus
and assess the significance of "ownership" of domains in competition. We explain how the right to use a domain name arises. We state why conflicts with other rights to a sign arise in practice. We seek an answer as to how such conflicts can be prevented and whether it is even possible. We largely deal with the issue of liability in the event of unauthorized registration of a protected sign as a domain name by a third party. In this context, we compare the individual options for legal and judicial protection of owners of protected signs. The core of the research is the analysis ofjudicial resolution of domain disputes and alternative resolution of domain disputes. We are looking for parallels and differences between both options for resolving conflicts. As for written law, we highlight the universality of the general clause of unfair competition, which is analogously applicable in alternative resolution of domain disputes. Using the method of judicial interpretation, we present selected disputes from the decision-making practice of courts and panels as examples. Finally, we try to find solutions on how speculative domain registrations can be prevented from a technical and practical point of view.We mainly base our research on Slovak and foreign professional legal literature. As for legal norms, in the research we use mainly Slovak commercial legal regulations (especially provisions on unfair competition), The Terms and Conditions of Domain Name Service in .sk Top Level Domain, The Rules for Alternative Dispute Resolution (ADR) in Slovakia, and The Rules for Uniform Domain Name Dispute Resolution Policy (UDRP). We demonstratively refer to several decisions of Slovak and foreign courts, the ADR Center and the WIPO Arbitration and Mediation Center.
1. Domain name and its function in competition
A domain name is a universal and unique address on the Internet that allows a user to search for pages on the Internet in the easiest way possible.
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In legal theory, several attempts can be found to define a domain name. Disman states:
"A domain name is a sequence of characters assigned to a specific IP address, and this sequence of characters meets the criteria set by the administrator of the relevant domain"
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According to Smejkal: "
A domain name is a hierarchically structured sequence of characters that is converted into numeric IP addresses using servers with a domain name system containing numeric and word databases for the purpose of simpler, mnemonic addressing of devices connected to the Internet"
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The Supreme Court of the Slovak Republic also attempted to define a domain name, according to which: "
A domain name is a text string through which it is possible to identify entities or their goods and services designated by this domain name on the Internet, and the domain name consists of a text string, hierarchically arranged into levels (degrees) that are separated from each other by dots"
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In our opinion, the term "domain name" is not the most appropriate term to apply to this subject, as "name" is associated with persons and we consider it more appropriate to use the term "designation" or "sign" (from Slovak word "označenie").
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In this context, Telec states:
'"domain signs are basicallyjust simplified translations of complex numerical Internet addresses (unique material identifiers) of computers (servers) in the electronic communications network, which are outwardly expressed by "user-friendly" characters (especially letters and words formed from them)."
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A generally accepted legal definition of a domain, as well as a domain name (which constitutes a second-level domain), is absent. In Slovak law, a certain definition of a domain is contained in the Act on Electronic Commerce. And that:
"A domain is a symbolic address in an electronic communications network."
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The legal definition of a domain name is not included in The Terms and Conditions of Domain Name Service in .sk Top Level Domain either (hereinafter "Terms and Conditions of Domain Name Service in .sk").
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Although these rules define a domain name, this definition is purely technical in nature. According to point 1.2:
"SecondLevel Domain Name .sk is a domain name directly under .sk top level domain name. "
Further, in point 3.6.2 it is stated: "
the Domain Name or its use should not violate rights of third parties to trademarks, business marks, names, company business names etc., whereby by submitting the Domain Name registration the User at the same time confirms that with the knowledge of possible violation of the aforementioned rights and legislation it made maximum endeavors to assure that the Domain Name won t be violating these rights and legislation and that in the case of such a violation it alone is responsible for the damage caused to third parties."
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Focusing on competition, domain registration is currently one of the most effective and common forms of "virtual existence" of competitors. On the domain, and also in its name itself, individual competitors promote their business, or on which they sell or otherwise inform Internet users about their goods or services. By analogy, a certain similarity of the domain name can be inferred, especially with a business name (according to § 8 of Commercial Code, a trade name is the name under which an entrepreneur performs legal acts in his business activities)
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and a trademark (according to § 2 of Act No. 506/2009 Coll. on Trademarks, as amended, the owner of a trademark has the exclusive right to use the trademark only in connection with the goods or services for which it is registered)
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, possibly also another protected sign.
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According to Vojčík:
'"Domain names, through which searches are made on websites, actually serve to identify entities, their products and services"
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The issue of domain names is therefore very closely related to industrial property rights, which fulfill their basic function (to identify "someone" or "something") in competition.
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Domain names have their economic value in competition, because each appropriately chosen domain represents a certain competitive advantage with potential market value and becomes a significant part of the intangible component of a competitor's business.
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The economic value of domains has also been confirmed in its decision-making practice by the European Court of Human Rights, which emphasized that a domain must be considered a type of property right that must be protected by Article 1 of the Additional Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms. The Constitutional Court of the Czech Republic also reached a similar conclusion, stating that the concept of property is not limited to the ownership of tangible goods, and that this concept also includes the right to a domain name.
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Choosing a "suitable" domain name on the Internet is therefore currently one of the first and most important decisions when starting (not only) a business and can significantly affect a competitor's position, either positively or negatively.
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Individual entities are increasingly becoming aware of the necessity of "owning" a domain under the same name as the name of their business, or goods or services.
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However, domain space is not unlimited. Each virtual address is unique, and a large part of domain names are therefore not "technically free". In practice, a situation may arise (and often does) that the name or sign that a subject is interested in registering as a domain name is already technically occupied by another person.
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2. Domain name conflicts with industrial property rights for signs
Domains on the Internet are registered mainly for the purpose of identifying and promoting their holders in the virtual world.
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They designate businesses, goods and services of competitors, as well as other natural or legal persons, institutions, events (similar to, for example, trade names or other names of natural persons and names of legal persons). In competition, domains thus fulfill the same function as other objects of industrial property rights for signs (which are trade names, trademarks, designations of origin of products and geographical indications, but also unregistered designations, logos and others). Therefore, by analogy of law, it can be stated that the designations forming the domain name (domain names) fulfill the identification, distinguishing, promotional and guarantee function of a competitor in economic competition in the virtual environment.
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In practice, there are quite frequent conflicts between domain names and other rights to designations. This can be any designations relating either to the entity itself or to goods or services. In this regard, as stated in the background of the Final Report of the WIPO Internet Domain Name Process of April 30, 1999,
"Domain names are the humanfriendly form of Internet addresses. While designed to serve the function of enabling users to locate computers in an easy manner, domain names have acquired a further significance as business identifiers and, as such, have come into conflict with the system of business identifiers that existed before the arrival of the Internet and that are protected by intellectual property rights.
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Collisions between domain names and the name of the entity mainly concern:
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infringement of rights to a trade name and other (including unofficial) company names,
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unauthorized use of the name of a legal entity, including the name of public administration bodies and including public institutio