e-Commerce Laws in China and Hong Kong:
Integration or Separation?


Domain Name Registration

According to the Temporary Management Measures on Chinese Internet Domain Names issued by the Information Work Lead Group of China's State Department on May 30, 1999, companies must renew their registration annually. They must pass an annual CNNIC inspection and pay a fee. Domain names may be amended or cancelled but cannot be sold or transferred.

In October 1999, ICANN approved ChinaChannel.com as an international domain-name agency, the first agency in China. China-Channel offers ".com" domain names using a real-time, automatic registration system. ICANN offers protection of ".com" names through its Uniform Domain-Name Dispute-Resolution Policy, which provides for the resolution of disputes by agreement, court action, or arbitration. Trademark owners can file complaints with courts or submit complaints to an ICANN-approved dispute resolution provider. Domain name disputes can be settled through the courts following normal civil law procedure. Such dispute is not rare in China. For example, the international brands including "Dupont", "Procter & Gamble", and "IKEA" have taken legal action against the Chinese company "International Network Information Company (Cinet)" for squatting their domain names. In June 2000, a Beijing court ruled that the domain name www.ikea.com.cn registered by Cinet infringed IKEA's trademark and ordered Cinet to stop using this domain name. In July 2000, the Beijing court ruled that Cinet had infringed the trade name of Procter & Gamble. In addition to cancel the domain name, Cinet had to pay RMB20,000 to Procter & Gamble as compensation (Nelson & Leigh, n.d.).

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