What is the new .au Direct and what does it mean for your business?

Since 1986, the .com.au has been the domain extension of choice for Australian based websites, and as of 2020 almost 90% of Australian based websites use this extension. This mainstay of Australian internet culture may be on the verge of change however, as auDA, the administrator for Australian’s domain extensions, recently announced a new domain namespace, marketed as “.au Direct”, that is set to arrive 24 March 2022. 

What is .au Direct?

The new .au direct domain name will be a shorter, simpler domain name that will be available to Australian citizens, permanent residents and organisations incorporated in Australia or holding an Australian Business Number. These requirements are shared with the traditional .com.au domain extension and were introduced under the .au Domain Administration Rules 2021.  

How progressivelegal.com.au will look with the new .au domain name.

Why is it important for your business to register the new .au domain name?

Domain names form an important online identifier for brands. They are not a form of intellectual property right that can be registered however, and as a result domain names can easily be misused or hijacked/squatted on for the purposes of sale which some might consider akin to commercial extortion.  

Unfortunately, as almost anyone can register an Australian domain name, it’s not uncommon for individuals to “squat” on a domain name to prevent others from using it, or for counterfeiters to register domain names in the name of a business or trade mark with the objective of leveraging a payout for its return to the rightful owner. Business owners should also be on the lookout for fake business names imitating their website, that may mislead or deceive customers into buying their products.  

It’s therefore vital that Australian business owners register the new .au domain name, both to maintain comprehensive protection of their brand and to prevent others from misusing or passing off their reputation as their own. We can assist with a range of domain name disputes.

How do I apply for my business’ .au domain name?

The new .au domain extension will be available from all participating auDA accredited registrars (see the list here). New to .au direct, owners of existing Australian domain names will be eligible to have Priority Allocation to register the .au direct match of the same name, if they so choose. Others will be prevented from registering these domain names during the Priority period. This application is only available for the first 6 months after the .au direct domain name rolls out, with a deadline of 20 September 2022.

What else can you do to protect your brand as a small business owner?

While it is important for small businesses to register new domain names to extend their brand protection, domain names are more closer to brand identifiers or addresses, rather than clear cut intellectual property rights in and of themselves. However, how you should look at it is part of your brand protection strategy and increasing the value of your brand. If you don’t own the .au or the .com.au, then there’s always the possibility that someone else can start to market goods and services using those domains and therefore cause confusion in the market leading to damage to the brand and often a decrease in revenue/profit as a result. Then there’s the cost in having to try and retrieve the domain on the grounds of bad faith or otherwise, which can be a very expensive exercise. Think of it like registering all the social media handles, business names, domain names, even if you don’t intend on using every single one of them right now. It’s a fairly inexpensive exercise to do that and the costs are tax deductible.   

1. Registering a business name 

Not only are you legally required to register your business name to trade, it’s also best to have a registered business name so your competitors can’t register it underneath you.

2. Registering a trade mark 

When it comes to brand protection, a registered trade mark is one of the most powerful tools in a brand’s arsenal. If anyone infringes on your trade mark, you can rely on the Trade Marks Act to enforce your rights, if it comes to litigation proceedings. 

3. Identifying your brand 

Businesses and sole traders need to be vigilant in protecting their brand identity, whether this involves using your trade mark prominently and consistently, and using the correct trade mark symbols, TM and R. This will put competitors on notice that you intend to protect and defend your brand. Please note the R symbol can only legally be used for registered trade marks.  

4. Monitoring for trade mark infringement 

Obtaining trade mark registration is just one of many steps involved in protecting your business’ core brand. Once your trade mark is registered, it’s important to actively monitor the relevant market(s) to ensure no one is infringing on your trade mark. Learn more here.  

Key Takeaways

This new domain name in addition to the Priority Allocation period provides another opportunity for Australian businesses to protect their online presence free of interference from cyber squatters, counterfeiters or fraudsters. Anyone with an existing Australian domain name still in use should apply straight away to take advantage of the 6 month priority period which expires on 24 September 2022.

Progressive Legal provides advice in relation to the defence, maintenance and dispute of domain names, to give your business the proper legal protection, together with any trade marks and other intellectual property protection. We specialise in helping growing Australian businesses in various areas of law: Intellectual Property Law (IP), commercial, workplace (employment and independent contractors), structure and legal disputes. Contact us here for more information or call 1800 820 083.   

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