Internet Domain Names

An internet domain name is a unique name that identifies an Internet Protocol (IP) address on the internet. Computers identify each other via numerical IP addresses over the internet. People use domain names to give these IP addresses easily remembered names. Any time someone uses the internet to search for information, buy products, or send e-mail, they are using a domain name to identify themselves or the businesses whose information or products they are seeking. The choice of domain name has potential to make or break an online business. For this reason, a lucrative secondary market has developed for domain names.

Every computer has a unique IP address. The domain name system (DNS) is a network of domain name servers that convert domain names into IP addresses so that computers, and thus individuals, can communicate over the internet. When an individual creates and orders a domain name from a registrar, the name is put into the global registry by the registrar for the registrant. The registry, maintained and overseen by the Internet Corporation for Assigned Names and Numbers (ICANN), is the central directory of the domain name system. Accredited “registrars” are the only agents that can legally submit domain names to the registry. ICANN regulates these agents and keeps a list of accredited registrars. Having one central registry for all domain names assures that those names send internet users to the right IP addresses.

A domain name consists of two essential parts: the top-level domain (TLD) and the second-level domain. The TLD is the rightmost portion of the domain name. Current generic (unreserved) TLDs http://include.com,.net,.info,.org,and.biz. Typically, businesses anywhere in the world can request one of these common TLDs. Two-letter country-code TLDs (ccTLDs) exist for each country such as.us,.uk,.de, and.au for organizations that wish to be identified by country. TLDs for more specific (reserved) purposes also exist. Examples include.tv (entertainment),.gov (government),.mobi (mobile phone access),.edu (education),.museum (museums),.name (personal names),.int (international organizations established by intergovernmental agreements),.coop (cooperatives),.aero (aviation),.mil (military),.travel (travel), and.jobs (job search). As the internet grows, so does the list of TLDs. TLDs must be approved by ICANN.

The second-level domain (SLD) identifies the organization or host. It is the rightmost portion of the domain name that is to the left of the dot (or “.”). For example, in http://www.google.com, the SLD is “google” and the TLD is “.com.” The “www” portion of the name is actually a third-level domain (3LD). The 3LD is left of the SLD. A single domain name can have up to 127 levels. Levels left of the SLD are subdomains. The “www” used in many domain names is just a very common subdomain and it is not an essential part of a domain name. There must be a unique SLD for every TLD; however, SLDs can be duplicated across TLDs. For example, there can only be one http://encyclopedia.com for a particular IP address, but there can be an http://encyclopedia.com, http://encyclopedia.net, http://encyclopedia.org, etc.

The ability to create and register virtually any domain name has led to a lucrative secondary market for domain names and subsequently a need for a system of dispute resolution. According to marketing researcher Zetetic, as of 2007, 36 domain names had fetched over $1 million on the secondary market, with http://sex.com being the highest at around $12 million. Speculators in the domain name market, known as “domainers,” buy and resell domains. Some speculators, known as “cybersquatters,” attempt to profit by buying domain names of celebrities, well-known companies, and trademarks. A kind of cybersquat-ter, known as a “typosquatter,” attempts to profit from common misspellings of popular domain names. Due to the frequency of cybersquatting, many companies [Page 933]now buy domain names defensively by buying their SLDs across TLDs and by buying common misspellings.

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