A domain name is simply the address/identity of a person on the Internet. A domain name is hierarchical, consisting of different levels which are separated by full stops. When read from the end of an address the following levels can be distinguished: top level domain (these are general global top domains like .com, .net, .eu and top level domains of national character like .ee), second level sub-domain (the main element of the person´s identity like "koitel.ee") and then third and highest level sub-domains which specify the domain name of the previous level (for example “www” in the address www.koitel.ee describing the web service).

 

In everyday business activity, a domain name is something more than just a simple address. A domain name must be considered as a sign which may contain reference to the user or owner of a domain name. If a domain name contains a trademark, it can be considered to be a reference to the trademark proprietor. Therefore, a domain name resembles a trademark in its functions - it facilitates distinguishing, remembering, indicates belonging and also fulfils the function of advertising.

 

 

Registration of additional domain names will be possible with the registration of general global top level domains. Since the end of 2005, Estonian entrepreneurs have been able to consider the new ability to register a uniform top level domain under .eu across the European Union. With the introduction of the domain .eu the new Internet environment was created for companies and private persons in the European Union countries which enables them to identify themselves on the Internet as a part of the European Union market with the population of about 500 million inhabitants. In addition, the domain .eu provides the possibility for companies operating on several markets in EU member states to bring their split activities from many different Internet addresses under a single uniform domain name covering the whole of the European Union. Upon registration of the domain .eu, there is no imminent necessity to possess separate domains in every country (for example .lv, .fi), which may confuse consumers and entail additional bureaucracy and cost of registering extra domains to the companies. There are no restrictions as to the number of the domains under .eu. However, it must be taken into consideration that the domain name .eu is valid for one year, upon the expiry of which the validity period for another year will have to be extended.