Complete guide to domain name law for businesses

Domain names have become strategic assets for any company. Online identifiers, marketing tools, access points to your services: they are the cornerstone of your digital presence. But their legal regime remains complex, at the crossroads of contract law, intellectual property law and Internet law. This comprehensive guide gives you the keys to effectively registering, protecting and defending your domain names.

The legal nature of domain names

Protecting intangible assets

Domain names occupy a unique legal position. It is neither traditional property within the meaning of the Civil Code, nor a simple technical service. Its status varies according to its use and the context in which it is invoked.

French law tends to consider a domain name as :

• A right of use resulting from a registration contract with a registrar
• A intangible assets that can be valued and included in the company's balance sheet
• A distinctive sign where it is used commercially, as a basis for an action for unfair competition

In 2007, the European Court of Human Rights recognised in the case of Paeffgen v Germany, In its decision, the European Court of Human Rights ruled that domain names deserved protection under the property rights guaranteed by Article 1 of Protocol No. 1 to the Convention. This decision has reinforced their status as property assets in all Council of Europe member states.

The Court of Cassation has also confirmed that a domain name that has been used can constitute a prior right that can be used against a subsequent trademark (Cass. com., 13 December 2005, no. 04-10.143, known as «Locatour»). A domain name is therefore not just a technical tool: it is a genuine right that the holder can enforce against third parties.

Tax and accounting implications

The tax authorities consider domain names to be non-depreciable intangible assets that are included on the balance sheet. Annual registration fees are deductible expenses, whereas the acquisition of a name on the secondary market represents a capital investment. This distinction has a direct impact on the tax management of your name portfolio.

Organisation of the naming system

The role of ICANN

The Internet Corporation for Assigned Names and Numbers (ICANN), a Californian not-for-profit corporation, coordinates the global domain name addressing system. It manages the root of the system (the «root zone» file) and oversees the creation of Top Level Domains (TLDs). Its role is limited to technical coordination: ICANN does not allocate names directly to end users.

ICANN delegates operational management to specialised entities - the registries - which define their own allocation rules within the contractual framework it establishes. This explains the predominance of private and contractual rules in the legal regime for domain names.

Registers and registry offices

The registers (or registrars) manage the Top Level Domains. For country codes (.fr, .uk, .de), management generally falls to a delegate appointed by the State. The Association Française pour le Nommage Internet en Coopération (AFNIC) manages .fr and .re. For generic domains (.com, .org, .net), responsibility lies with private entities such as Verisign (.com, .net).

The registrars (registrars) are the intermediaries between users and the registries. Accredited by ICANN or by the national registries, they market domain names to the public. It is with them that you actually make your reservations.

Types of extensions

First-level extensions fall into several categories:

• Open areas (.com, .net, .org): accessible to all without any particular restrictions. The .com remains by far the most widely used in the world.
• Restricted areas domain names: limited according to the quality of the applicant (.aero for aviation, .museum for museums) or the intended use.
• Closed domains reserved for a specific entity (.gov for the US administration, .bnpparibas for the banking group).
• Country codes (ccTLD) based on the ISO 3166-1 standard, managed according to the rules set by each country (.fr, .de, .uk, .es, etc.).

The choice of extension depends on your strategy: a .fr to establish a national presence, a .com for international ambitions, sector-specific extensions to strengthen brand identity.

Registering a domain name: procedure and precautions

The «first come, first served» principle»

The fundamental mechanism for allocating domain names is based on the «first come, first served» rule. For French domains, the French Post and Electronic Communications Code (CPCE) formalises this: «the domain name is allocated to the first eligible applicant to submit a valid application».» (article L. 45-1).

There are exceptions to this rule, particularly during the launch periods of new TLDs («sunrise» and «landrush» phases), when holders of registered trademarks enjoy priority access rights.

Essential preliminary checks

Before registering, a number of checks should be carried out to avoid any subsequent disputes:

1. Technical availability Is the desired name already allocated in the target extensions?
2. Search for legal precedents Trademarks: do identical or similar trademarks, trade names or company names exist? The INPI, EUIPO and WIPO databases can be used to carry out these checks.
3. Linguistic and technical validity Does the name comply with the authorised character and length constraints?
4. Meaning and connotations Does the chosen name present any image risks in other languages or markets?

A similar earlier trademark can be the basis for an infringement action against the use of a domain name. These simple checks avoid litigation, the cost of which far exceeds the registration fees.

The special case of French names (.fr)

fr domain names benefit from a specific legal framework, which is rare throughout the world: articles L. 45 to L. 45-8 and R. 20-44-38 to R. 20-44-47 of the CPCE define the conditions for allocation, refusal and deletion, as well as the procedures for settling disputes.

L'AFNIC, designated as a registration office by ministerial decree, exercises prerogatives described as «prerogatives of public authority» by the administrative judge (TA Versailles, 19 November 2012). It can refuse a registration that contravenes the rules, delete a name in certain cases provided for by law, or order a transfer following a SYRELI procedure.

Article L. 45-3 of the CPCE limits eligibility to :

• Individuals resident in the European Union
• Legal entities with their registered office or an establishment in the EU

This territorial restriction distinguishes national domains from generic domains open to all.

Cybersquatting: understanding and taking action

Definition and forms of cybersquatting

Le cybersquatting (or cybersquatting) refers to the practice of registering, in bad faith, a domain name that is identical or similar to a trademark, a trade name or a well-known person's name, with the aim of deriving illegitimate profit from it. This profit can take several forms:

• Speculative resale reserving a name corresponding to a well-known trademark in order to sell it back to the rightful owner at a high price
• Traffic diversion exploiting the reputation of a name to attract visitors to a competitor's or advertising site
• Nuisance block access to the name to prevent the legitimate holder from using it
• Phishing creating a site that imitates the holder's to deceive Internet users

Le typosquatting is a variant: it consists of registering names using common typos from a popular site (e.g. «gogle.com» instead of «google.com»). Other similar practices include domain grabbing (massive appropriation of names) and domain tasting (temporary registration for traffic testing).

The French legal framework

Under French law, cybersquatting is not defined as a specific offence. It is punished by a number of mechanisms:

• Article L. 45-2 of the CPCE provides that the registration of a .fr domain name may be challenged if it infringes intellectual property rights or public policy, or if it constitutes an imitation of a local authority. This text forms the basis of the SYRELI procedure.
• Trademark infringement proceedings (articles L. 713-2 and L. 713-3 of the French Intellectual Property Code) allows action to be taken when a domain name reproduces or imitates a trademark registered for identical or similar goods or services.
• Action for unfair competition (article 1240 of the French Civil Code) punishes the use of a domain name that creates a risk of confusion with a competitor, even in the absence of a registered trademark.

The Court of Cassation has laid down an important principle: the use of a domain name reproducing a trademark constitutes infringing use only if the name is actually used for goods or services covered by the trademark, and not simply by virtue of registration (Cass. com., 13 December 2005, no. 04-10.143, «Locatour»). However, a domain name that reproduces a trademark without being used may be punished for unfair competition or parasitism.

More recently, the Court of Cassation confirmed that a ban on the use of a domain name infringing a trademark may be ordered even where the name relates to a foreign country code, provided that the site is accessible from France (Cass. com., 5 June 2019, no. 17-22.132, «Saône-et-Loire.fr» case).

How to react to cybersquatting

If you are a victim of cybersquatting, there are several options available to you, depending on the domain concerned and your objectives:

1. Formal notice A letter from a lawyer is sometimes enough to put a stop to the infringement, especially if the cybersquatter is an individual or a small organisation.
2. UDRP procedure (for .com, .net, .org and most of the new TLDs): fast (60 days), inexpensive (~€1,500), but limited to transferring or deleting the name.
3. SYRELI procedure (for .fr domain names): even faster (2 months) and more affordable (€250).
4. Legal action This is essential if you are seeking damages or if the situation is complex (organised network, significant loss).

The choice of procedure depends on the size and complexity of the case and the objective being pursued. In all cases, gather evidence as soon as possible: dated screenshots of the disputed site, WHOIS history, proof of your prior rights (trademark certificates, Kbis extracts).

The UDRP procedure: resolving a .com dispute

The three cumulative conditions

The UDRP procedure (Uniform Domain Name Dispute Resolution Policy), created by ICANN in 1999, is the reference mechanism for disputes over generic extensions. The claimant must prove three cumulative elements:

1. The domain name is identical or confusingly similar a trademark over which the applicant has rights
2. The name holder has no rights or legitimate interests on this name
3. The name has been recorded and used in bad faith

Bad faith may be demonstrated in particular by: an offer to resell the name to the trademark owner, registration with the aim of blocking the owner, traffic diversion, or a history of cybersquatting by the defendant.

Procedure and cost

The procedure takes place entirely online before one of the centres accredited by ICANN (the WIPO Arbitration and Mediation Centre is the most widely used). Decisions are handed down by administrative panels made up of one or three experts, within approximately 60 days.

The cost is moderate: around 1 500 € for a single name before a single expert. This rate increases if several names are contested or if a panel of three experts is requested.

Possible sanctions are limited to :

• Le transfer from name to applicant
• La delete registration

No compensation is possible under the UDRP: to obtain damages, you have to take legal action.

Scope and limits of UDRP decisions

The UDRP procedure is contractual in nature, not jurisdictional. The Paris Court of Appeal ruled that it «does not constitute arbitration» (17 June 2004). As a result :

• Decisions do not produce not res judicata
• The defendant has a 10 days' notice after notification to go to court to challenge the decision
• If legal action is taken within this period, the transfer is suspended.

Despite these limitations, the success rate for complainants exceeds 85 % in cases of obvious cybersquatting. More than 60,000 cases have been handled since 1999.

The SYRELI procedure: disputes over .fr domain names

The SYRELI procedure (Online Dispute Resolution System), specific to .fr names and other French domains, is based on article L. 45-6 of the CPCE. Set up by AFNIC, it offers an even faster and cheaper alternative to the UDRP.

The applicant must demonstrate that the disputed name falls within one of the cases set out in’article L. 45-2 of the CPCE :

• The name offends public order or morality
• The name infringes intellectual property rights protected in France
• The name is a reproduction or imitation of the name of a local authority

The procedure is entirely electronic, takes two months maximum, and costs 250 EXCLUDING VAT per disputed name. The decision is made by AFNIC itself, on the basis of the documents exchanged.

Appeals may be lodged with the courts within a period of 15 days following notification of the decision. If no appeal is lodged, the transfer or deletion is carried out automatically.

Other mechanisms exist for specific extensions: the ADR for .eu, the procedure URS (Uniform Rapid Suspension) for new generic extensions, or national procedures specific to certain country codes.

Legal action: counterfeiting and unfair competition

Trademark infringement proceedings

When a domain name reproduces or imitates a registered trademark and is actually used for products or services covered by that trademark, the holder may bring an infringement action on the basis of Articles L. 713-2 and L. 713-3 of the French Intellectual Property Code.

Three conditions must be met:

• A validly registered mark
• A domain name identical or confusingly similar to this brand
• A actual use the name for goods or services covered by the trademark

Case law has specified that the assessment of the likelihood of confusion between a domain name and a trademark must take into account the overall impression produced on the average consumer, taking into consideration the visual, phonetic and conceptual similarities of the signs, as well as the similarity of the activities (Cass. com., 6 December 2023, no. 22-16.078, «Lekiosque» case).

More recently, the Court of Cassation has reiterated that domain names, like trade names, may constitute an act of unfair competition distinct from infringement, giving rise to separate compensation if the loss has not already been made good under the infringement action (Cass. com., 26 March 2025, no. 23-13.589, «Facebook» case).

The penalties imposed by the court include :

• L'prohibition of use of the disputed name, often under fine
• La cancellation or the transfer the domain name
• The damages
• La publication of the decision

Action for unfair competition

When the plaintiff does not have a registered trademark, or when the conditions for infringement are not met, the unfair competition action based on Article 1240 of the Civil Code offers an effective alternative.

The Court of Cassation has established the principle that «the use of a trade name in a domain name, which undermines the identification function of a trade name previously used by a competitor operating in the same sector of activity, constitutes an act of unfair competition».» (Cass. com., 7 July 2004).

Le parasitism allows action to be taken even in the absence of a direct competitive situation. This qualification covers the undue exploitation of the reputation of others and applies in particular to speculative registrations of names corresponding to well-known personalities or companies.

Emergency measures

In the event of clear and urgent damage, the referral makes it possible to quickly obtain interim measures from the president of the court:

• Suspension of use of the disputed name
• Putting an information message on the site
• Technical expertise

These interim measures can be combined with a UDRP or SYRELI procedure: the summary procedure secures the immediate situation, while the alternative procedure leads to a definitive solution (transfer or removal).

Protecting your domain name portfolio

Prevention remains the most effective and least costly strategy. A structured approach has several components:

• Defensive registration reserve your brand in the main extensions (.com, .fr, .net, .eu) and the most common spelling variants
• Active surveillance setting up a monitoring system for new similar registrations in all TLDs, to detect cybersquatting attempts quickly
• Documentation of use Keep regular proof of the effective use of your names (dated screenshots, traffic statistics), which will be useful in the event of a dispute.
• Technical security transfer lock: activate transfer lock and authorisation codes to prevent the transfer of data. domain hijacking
• Regular audits : periodically evaluate your portfolio to abandon non-strategic names and acquire relevant TLDs

This preventive approach costs a fraction of the litigation budget. Litigation before the courts can easily cost several tens of thousands of euros, whereas the defensive registration of a dozen variants costs a few hundred euros a year.

Securing your domain names deserves specialised legal support. Our firm offers you personalised advice to protect and defend 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 by a registrar. A trademark is an intellectual property right protecting a distinctive sign, acquired by registration with an office (INPI, EUIPO). The two may coexist and reinforce each other, but they are governed by distinct legal regimes.

Is cybersquatting illegal in France?

Cybersquatting is not defined as a specific criminal offence under French law. However, it is punishable under civil law, either through trademark infringement proceedings (if a trademark is reproduced), unfair competition or parasitism proceedings, or through the alternative UDRP and SYRELI procedures. French courts regularly order cybersquatters to pay damages and to transfer the disputed names.

Can a domain name be lost after registration?

Yes, in several cases: non-renewal on expiry, violation of the registry's terms of use, court decision, or unfavourable outcome of a UDRP or SYRELI procedure. The loss of a domain name can have serious consequences: interruption of service, damage to image, appropriation by third parties.

How much does a UDRP or SYRELI procedure cost?

The SYRELI procedure costs €250 excluding VAT per disputed name - this is the cheapest option, reserved for French TLDs (.fr). The UDRP procedure costs around €1,500 for a single name before a single expert. These costs are much lower than for legal action, which can cost several thousand or even tens of thousands of euros.

What procedure should I choose to recover my domain name?

The choice depends on the extension (.fr → SYRELI; .com/.net → UDRP), the objective (simple transfer or compensation), and the complexity of the case. Alternative procedures (UDRP, SYRELI) are suitable for simple cases of obvious cybersquatting. Legal action is required for complex situations or when financial compensation is sought.

Which extensions should you choose to protect your online business?

Priority should be given to .com (essential) and the main national domain (.fr in France), followed by sector-specific domains relevant to your business. Defensive registration of common spelling variants and secondary domains (.net, .eu) reinforces protection.

Can I resell or rent a domain name?

Yes, a domain name can be transferred (sold) or leased. Transfer is effected by a change of ownership at the registry. The price is free and can reach considerable sums for the most coveted names. The only constraint is that third-party rights must be respected (resale of a name that infringes a trademark is still illegal).

Can a domain name constitute prior rights in relation to a trademark?

Yes, the Court of Cassation has recognised that a domain name that is actually used can constitute a prior right that can be used against a subsequently registered trademark (Locatour ruling, 2005). Essential condition: the name must have been actually used in the course of business, and not simply reserved without exploitation.

What are the three conditions of the UDRP procedure?

The plaintiff must prove that: (1) the name is identical or confusingly similar to its trademark, (2) the owner has no rights or legitimate interests in the name, and (3) the name has been registered and used in bad faith. These three conditions are cumulative: the absence of any one of them is sufficient for the complaint to be rejected.

How do you prove that a cybersquatter is acting in bad faith?

Bad faith can be established by a number of indicators: an offer to resell to the trademark owner at an excessive price, a history of cybersquatting on other names, the absence of any legitimate use of the name, registration after the trademark became well-known, use of the name to divert traffic or for phishing. The UDRP and SYRELI procedures assess bad faith on a case-by-case basis, taking into account all the circumstances.

Sources

• French Post and Electronic Communications Code, articles L. 45 to L. 45-8
• Intellectual Property Code, Articles L. 713-2 and L. 713-3
• Civil Code, article 1240
• ICANN UDRP rules (Uniform Domain Name Dispute Resolution Policy, 1999)
• AFNIC SYRELI rules
• Cass. com. 13 December 2005, no. 04-10.143 («Locatour»)
• Cass. com., 7 July 2004 (unfair competition by domain name)
• Cass. com. 5 June 2019, no. 17-22.132 («Saône-et-Loire.fr»)
• Cass. com. 6 December 2023, no. 22-16.078 («Lekiosque»)
• Cass. com. 26 March 2025, no. 23-13.589 («Facebook»)
• ECHR, 18 September 2007, Paeffgen v Germany
• CA Paris, 17 June 2004 (contractual nature of the UDRP)
• TA Versailles, 19 November 2012 (AFNIC prerogatives)