The entirety of the main and ancillary claims under the law of obligations existing between the holder of an internet domain and the registry can be the subject of an attachment as “other property rights”. However, when seizing a domain in particular, the enforcement authority must observe proportionality. This includes examining whether the claims from the domain contract can be utilized and are economically viable. The Federal Fiscal Court (BFH) clarified these principles in its ruling from June 20, 2017 (case reference: VII R 27/15).

Contract between domain holder and registry

Anyone wishing to register a domain can contact a registry or a listed provider. In either case, a contractual relationship is established with the registry. This contract is the basis of the rights and obligations associated with the registration of a domain and which are potentially attachable. This contract plays a central role in the seizure of a domain in particular, as it upholds the claims of the holder and can be asserted against third parties.

Tax office attaches debt claims in connection with an Internet domain

In a case of overdue tax debts of an online store operator for consumer electronics, the tax office issued an attachment order against the registry to seize the domain holder’s claims. The main claim to maintain the registration of the domain and all associated ancillary claims were seized. This shows that the seizure of a domain is not only theoretically possible, but also relevant in practice. Companies and entrepreneurs should be aware that their domains can also be seized in the event of debt.

The seizure of a domain: All claims under the law of obligations against the registry can be seized

Although a domain is not an absolutely attachable right, the claims under the law of obligations between the domain holder and the registry can be the subject of an attachment as a property right (Section 857 (1) ZPO, Section 321 (1) AO). When a domain is seized, the claims to permanent maintenance of the domain entry and adjustments to the register are particularly relevant. The possibility of a domain being seized therefore concerns the entirety of the contractual claims regulated by the domain contract.

In addition, the seizure of a domain also includes the right to register adjustment, for example if the holder’s personal data changes or the domain is assigned to a new IP address. These claims are valuable rights that must be taken into account when seizing a domain to secure its use. As the seizure of a domain can have an existential impact on a company’s business presence and accessibility, this is a complex and important issue for entrepreneurs and creative professionals.

Principle of proportionality in the seizure of a domain

The principle of proportionality must also always be observed when seizing a domain. According to Section 281 (3) AO, the seizure may not be carried out if it is not possible to realize the domain rights economically or if the costs of the seizure exceed the expected proceeds. The tax authority must therefore ensure that the seizure of a domain is actually economically viable and enforceable. Otherwise, seizure violates the principle of proportionality and would be inadmissible.

A key question in the seizure of domains is therefore whether the realization is economically promising. The economic value of a domain often depends on how well it is used and what market value it has. This is particularly important for creative companies that depend heavily on their online presence. The seizure of a domain can have serious consequences for a company, which is why the principle of proportionality should be examined particularly carefully.

Conclusion on the seizure of a domain: A case of particular importance for entrepreneurs and creatives

In summary, the seizure of a domain is an extraordinary measure that deeply interferes with the property rights of a company or a creative person. However, it is permissible under certain conditions, especially if there is a contract with the registry and the economic exploitation is reasonable. Creative professionals and companies whose business success depends heavily on their online presence should be aware of the possibility of domain seizure and organize their financial affairs accordingly.

Domain seizure can have serious consequences for companies and creative professionals in areas such as media law, copyright or trademark law. The seizure of a domain can jeopardize accessibility and branding on the Internet. As the legal situation is complex, it is advisable for those affected to seek specialist advice in good time in order to protect themselves from the possible consequences of a domain seizure and to make use of all defense options.