Increase in domain name disputes

UK businesses should tighten up on the legal ownership of their website addresses, as one web hosting company reported a 30 per cent rise in the number of domain ownership disputes.

Fasthosts Internet Ltd, said the problems arise most commonly where companies have registered a domain in an employee's or adviser's name only to have to later prove that the business should retain legal ownership and control. It advises business owners to check that their business domain names are in their name – and seek transfer of ownership if necessary.

Nowadays, a virtual shop-front on the Internet can be as valuable to a business as its actual premises. However, an alarming number of UK businesses could be risking sales revenue and stability by having their business domain names registered on their behalf by employees or third parties such as web designers. If such individuals part company with a business, as they were the legal 'registrant' of the domains, the business often faces the time consuming task of having to prove their legitimate right to own and control the domain names.

Steve Holford, CMO Fasthosts Internet, said: "In 2008, companies should view their domain names as valuable intellectual property. Businesses can save themselves from potential losses and disruption by ensuring that every domain is registered continually in the proprietor's own name.

"Particularly in a challenging economic climate, third parties and employees can come and go. Whilst many business owners prefer somebody else to take care of their website, a clear distinction must be made between day-to-day administration of a company website and the legal ownership of the domains and hosting".