European companies and public bodies rushed to sign up to the new .eu domain when it was launched yesterday as an alternative to .com and country domains.

European information society commissioner Viviane Reding last week said she expected "several hundred thousand" companies and bodies to apply for the domain. It will give holders instant recognition that they are European, help to make them more visible, and give businesses the tools to protect themselves under European law.

The domain is run by EURid, a not-for-profit organisation, on behalf of the US-based group that manages the domains system worldwide. The registration of the .eu address is being handled by more than 700 registrars across the EU. There are five registrars in Ireland, including Eircom Net.

The domain is being launched in three phases. Registrations are only accepted during the first phase from applicants who have some prior right to the name applied for, like a registered trademark or company name. A second phase begins in February, when companies with other rights, such as unregistered trademarks, can start to apply.

During the third phase, which starts in April, applications will be accepted from people with no prior rights to the name they are applying for.

Irish companies doing business in Europe should apply for the .eu domain as soon as possible to avoid costly legal actions against cybersquatters, according to Grace Smith, a partner at McCann FitzGerald solicitors. A .eu registration costs €10, which is lower than the 50 charged for the Irish top level domain, Ms Smith said.