China tackles cybersquatters

Internet use exploding in China

China has introduced tough new measures to stop people from cybersquatting following legal wrangles involving companies such as Microsoft.

The aim of new rules, said the China Daily newspaper, was to stop "vicious domain name registering."

The measures were introduced after Chinese individuals started registering the web addresses of international companies such as Proctor and Gamble with the suffix, .CN for China, and then offering to sell them at an inflated price.

Authorities wary of the web

The newspaper said anyone caught cybersquatting would be fined, though it gave no details of the size of the penalty.

"Anyone who deliberately confuses their domain name with a famous trademark to confuse people, to help sell goods or fulfil some other goal will not be allowed to get away with it," say the new rules.

Net explosion

China is expected to become one of the biggest, and potentially most lucrative markets for electronic commerce over the next decade.

The country is rapidly becoming one of Asia's top markets for domain name registration as more and more small and medium-sized companies move online.

The number of registered domain names has reached 48,000, with most of them in the commercial category.

According to official figures, internet usage has nearly doubled in China since the beginning of the year to nearly 17 million people. It is expected to reach 20m by the end of the year.

The Chinese Government is keen to promote development of the internet, though official attitudes towards the web remain highly suspicious.

Access to the websites of western news organisations, human rights groups and other sources deemed politically undesirable is routinely blocked by the authorities.