Domain names are often referred to simply as domains and domain name registrants are frequently referred to as domain owners, although domain name registration with a registrar does not confer any legal ownership of the name, only an exclusive right of use.

The main purpose of a domain name is to provide symbolic representations, i.e., recognizable names, to mostly numerically addressed Internet resources. This abstraction allows any resource (e.g., website) to be moved to a different physical location in the address topology of the network, globally or locally in an intranet, in effect changing the IP address. This translation from domain names to IP addresses (and vice versa) is accomplished with the global facilities of Domain Name System (DNS).

By allowing the use of unique alphabetical addresses instead of numeric ones, domain names allow Internet users to more easily find and communicate with web sites and any other IP-based communications services. The flexibility of the domain name system allows multiple IP addresses to be assigned to a single domain name, or multiple domain names to be services from a single IP address.

In the business of marketing domain names, “premium” domain names are often valuable, and have particular characteristics. For example, the names are short and memorable, or may contain words that are regularly searched on search engines, or keywords that help the name gain a higher ranking on search engines. They may contain generic words, so the word has more than one meaning, and they may contain common typos.

Brands are greatly affected by the ability of the company to obtain the matching domain name. If a company builds a brand around a name to which it does not own the domain name, it can end up directing traffic to another domain owner’s site. If it is a competitor, this would be a problem.

Today’s advertising development of a great brand is strictly confined to the availability to synchronize the brand with a domain name. Any confusion might result in a competitor gaining valuable Internet traffic and possible customers.