Domain names are strategic assets for any company. They serve as online identifiers, marketing tools and access points to your services. Their complex legal regime requires a global approach. This guide summarises the essential knowledge needed to secure and enhance the value of these digital resources.
The legal nature of domain names
Protecting intangible assets
Domain names occupy an ambiguous legal position. It is neither a traditional property nor a simple technical service. Its status varies according to its use.
French law tends to consider a domain name as:
- A right of use arising from a registration contract
- An intangible asset that can be valued under certain conditions
- A distinctive sign when used commercially
The ECHR recognised in 2007 (Paeffgen case) that domain names deserve protection under property rights. This decision reinforces their status as property assets.
This hybrid nature has a direct impact on protection strategies. As our detailed analysis of the legal status of domain namesqualification determines the remedies available.
Tax and accounting implications
The tax treatment of domain names reflects their economic value. The tax authorities consider domain names to be non-depreciable intangible items that appear on the assets side of the balance sheet.
The annual royalties are deductible expenses, whereas the acquisition represents an investment. This distinction optimises the tax management of your name portfolio.
The life cycle of a domain name
Selection and due diligence
Choosing a domain name requires a number of checks:
- Technical availability
- No prior rights (trademarks, trade names)
- Legal and regulatory compliance
- Marketing and strategic relevance
These preventive precautions reduce legal risks. Our guide to registration procedures details these essential steps.
Registration procedure
Registration is generally on a "first come, first served" basis. There are exceptions to this rule for certain extensions or special periods.
The process involves:
- Choosing the right extension
- Selecting a registrar
- Acceptance of contractual conditions
- Providing administrative information
French domain names (.fr) are subject to specific rules. Only individuals residing in the EU and legal entities with their registered office in the EU can register them.
Renewal and management
Maintaining rights to a name requires periodic renewal, usually on an annual basis. Failure to renew will result in:
- A period of redemption (around 30 days)
- Quarantine (duration varies depending on the extension)
- Releasing the name for new registration
Active management includes:
- Technical security (authorisation codes)
- Updating contact details
- Monitoring unauthorised use
- Documentation of actual use
Transfer and assignment
Names are transmitted using specific procedures:
- Change of owner (transfer)
- Change of registrar (technical transfer)
These operations follow strict protocols to prevent hijacking. Some extensions impose security restrictions or time limits.
Protecting domain names
Dispute prevention
Prevention is the best strategy:
- Defensive registration in several extensions
- Protection of variant spellings
- Reserving strategic terms
- Documentation of actual use
These measures complement the protection afforded by other intellectual property rights. The link between domain names and trademarks creates a protective synergy, as analysed in our article on conflicts between domain names and distinctive signs.
Monitoring and defending rights
Constant vigilance detects threats quickly:
- Monitoring new similar registrations
- Monitoring new extensions
- Alerts on impersonation attempts
This monitoring enables rapid action to be taken in the event of a breach. Reactivity significantly increases the chances of successful proceedings.
Conflict resolution
Overview of available procedures
There are several avenues open to the aggrieved owner:
- Legal proceedings (counterfeiting, unfair competition)
- Alternative mechanisms (UDRP, SYRELI)
- Direct negotiation and mediation
Each option offers specific advantages. Alternative procedures offer speed and cost control, while legal proceedings provide compensation.
Criteria for choosing a procedure
Selecting the ideal procedure depends on:
- The extension concerned (.com, .fr...)
- The nature of the rights invoked
- The objective (transfer, damage, etc.)
- The available budget
- The urgency of the situation
Our article dedicated to domain name disputes takes a closer look at these criteria and strategies.
Strategies for companies
Global approach to digital presence
An effective strategy integrates domain names into an overall vision:
- Consistency with brand identity
- Adapting to target markets
- Protecting future innovations
- Valuing digital assets
This global approach maximises the return on investment of your online presence.
Portfolio optimisation
Active portfolio management includes
- Regular auditing of names held
- Dropping non-strategic names
- Targeted acquisition of new extensions
- Centralising technical management
This optimisation balances legal protection and budgetary constraints.
Securing your domain names deserves specialised legal support. Our intellectual property law firm offers you customised solutions to protect your digital assets effectively.
Frequently asked questions
What is the difference between a domain name and a trademark?
A domain name is a technical identifier assigned contractually. A trademark is an intellectual property right protecting a distinctive sign.
Can a domain name be lost after registration?
Yes, in the event of non-renewal, breach of the terms of use or following UDRP/SYRELI proceedings.
How can I protect my domain name effectively against cybersquatting?
Preventively register variants in the main extensions and document the use of your names.
What recourse do I have if someone uses a domain name similar to my trademark?
UDRP/SYRELI procedure or legal action depending on the extension and your objectives.
Can domain names be considered as company assets?
Yes, they are intangible assets that can be valued on the balance sheet.
Which extensions should you choose to protect your online business?
Priority to .com and the main national extension (.fr in France), then relevant sector extensions.
How much does a UDRP or SYRELI procedure cost?
UDRP: approximately €1,500 for a single name. SYRELI: €250 per disputed name.
Can I resell or rent a domain name?
Yes, subject to the specific rules for each extension and respect for the rights of third parties.
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