Trend of E-Commerce and Conflict

Prior to the wide adoption of e-business, companies have traded terrestially on their own different territories without conflict even using the same trade name or brand. Companies do not have conflict on use of the same trade name or brand in the same territory if they each engages in distinctive trades and hence there is no confusion among the customers.

E-Business on the Internet has brought to changes because for a brand, one .com is available for registration. Different trades or trades in different territories may find themselves very much interested in getting registration of their own trade name or brand as a domain name, for e-business development or for avoiding dilution of their goodwill. Meanwhile, a group of people has found that collecting domain names can be a very good source of fortune. They are the so-called cybersquatters who have registered famous brands, trade marks or trade names with the intention purely to dispose of for huge profits. Hong Kong does not have an anti-cybersquatting specific legislation. Disputes would therefore have to be resolved according to the legal framework of trade mark and passing-off or probably defamation.