Blockchain technology has revolutionized numerous industries, including finance, supply chain management and digital identity verification. One of its latest frontiers relates to the domain name system (DNS). Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces. This article explores the issues associated with trademark protection in blockchain domain names and examines new steps and policies that blockchain domain registrars should implement to safeguard brand owners.

Traditional Domain Name Registration and Protections

Traditional DNS operates under a hierarchical structure managed by the Internet Corporation for Assigned Names and Numbers (ICANN). This centralized authority oversees domain name registrations and resolves disputes through established policies such as the Uniform Domain-Name Dispute-Resolution Policy (UDRP). Developed more than 20 years ago, the UDRP was ICANN's first consensus policy and was intended to address cybersquatting in the DNS. Cybersquatting involves the registration of domain names that are identical or confusingly similar to trademarks with the intent of registering and using those names in bad faith.

The Trademark Clearinghouse (TMCH) was another ICANN policy development that provided crucial rights protection for the new generic top-level domain (new gTLD) program. The TMCH serves as a centralized database of verified trademarks connected to every new gTLD that launches. The TMCH authenticates rights information and supports both Sunrise registration — priority access for rights holders to request domain names associated with their trademarks — and the Trademark Claims service, which notifies rights holders after registration, allowing immediate action if an infringing domain is registered.