One of the well-known features of the internet, the 'World Wide Web' (www) permits users anywhere in the world to read materials, listen to music or interact with electronic commerce services. To have a successful commercial presence on the www, it is vital that potential customers know a web-site by an easy remembered name. The names used for locating sites on the WWW are called "domain names". A user-friendly domain name especially one which is reputable would attract more customers. Domain names therefore serve a function very similar to trademarks. Registration of domain names operates on a first-come, first-served basis.

"Cybersquatting" is the abuse registration of domain names with the intention of reaping money from the legitimate owners. The cybersquatters do not have any intention to run any business except to trade the registered domain name.


HK updates 'Net registration rules'

Starting from June 1, the Hong Kong Domain Name Registration Co. Ltd will put in place a new set of policies governing the registration of the .hk country code top level domain name. The less restrictive policies are expected to better cater the needs of businesses operating in Hong Kong and boost registration of local domain names.

Hong Kong businesses will now be able to register multiple domain names, where once they were restricted to one. An arbitration service has been appointed to deal with multiple claims over the same domain names, disputes and cybersquatting allegations. The HK International Arbitration Centre will provide this service to settle disputes before involving the courts.


Cyber-squatting under the existing intellectual property law in HK

If a person registers a domain name in HK and uses it for business on the internet in a way which deliberately misleads the public that his goods come from the trader of a registered trademark, he would be committing an offence under the Trade Description Ordinance.

At the same time, internet trading using a domain name identical or misleadingly similar to a registered trademark would constitute trade mark infringement.

Internet trading which takes unfair advantage of the trading reputation of another person (who has a trade reputation in HK) and this causes loss to the other person could be sued for passing off.