For example, the owner of a registered federal trademark is presumed to be the owner of the mark for the goods and services specified in the registration and entitled to nationwide use. Internet Protocol uses numbers as addresses. The TLD indicates the type of entity that owns the domain. InterNIC is the organization responsible for the registering and maintenance of most of the internet's top level domains. This policy was replaced recently by a new Dispute Resolution Policy that favors trademark holders over first-come domain name holders.
Problems arise when people or organizations select their SLDs or second level domain names.
Regardless of the eventual change that may occur in trademark law, if a person's second level domain incorporates any part of another's trademark, a contentious legal dispute may arise. An analysis of current trademark infringement and dilution law is too encompassing for this article, but suffice it to say that the courts have weighed in on the side of the trademark holders over even innocent domain name holders. Though I do believe that over the next five to ten years certain exceptions to this rule will be carved out by the courts, the smart thing to do in the present is to protect yourselves prior to investing thousands of dollars into your web sites and web site advertisements. When choosing a second level domain, consider the selection of the name as important as the name of your business itself. Also, determine whether someone else has already registered as a trademark the domain name you intend to use.