New pan-European internet domain names will be up for grabs next week, but only to holders of registered trademarks. The restriction, which will remain in place for four months, is designed to prevent cybersquatters from snapping up popular names and selling them on for a profit.

The creation of the .eu domain is the result of six years of EU negotiations and is designed to bolster Europe’s presence on the web and reduce bureaucracy for businesses operating across the continent. Companies wishing to establish a web presence throughout Europe must currently sign up with each national internet registry.

Under the new system, allocation of .eu addresses will be overseen by EURid, the Brussels-based registry, which will license companies in each of the EU countries to sell addresses on to businesses and individuals.

Although the internet has broken down many geographical boundaries, most countries have created national internet domains, such as .co.uk and .ac.uk in Britain. Adopting a .eu address will allow companies to establish their brands in other parts of the EU, according to Nick Wood, managing director of Com Laude, one of the 12 UK companies authorised to sell .eu domains.

"Registering the name of your company, your brands or your slogans under .eu is more than just a good housekeeping measure," he said. "It is important to own your space on the internet so that the people who do business with you, your clients or suppliers who trust your name and reputation, can communicate with you in confidence"

The "sunrise period" of restricted registrations, which begins on December 7, will be split into two phases. For the first two months, the only addresses available for purchase will be full names or acronyms of public bodies, registered trademarks and geographical territories within the EU.

The second phase will release addresses including company names, unregistered trademarks and "distinctive titles of registered literary and artistic work". The free-for-all begins on April 7 next year, when all other addresses will be made available for registration.

As usual, con artists have been quick to cash in on the opportunities presented by domain name release. Two weeks ago Peter Francis-Macrae was jailed for running a £100,000-per-week scam in which he sold non-existent internet and e-mail addresses to members of the public.

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