A legal battle over the domain itunes.co.uk is raging between Apple and Benjamin Cohen, the chief executive of CyberBritain Holdings. Cohen is accused by Apple of being a "cyber squatter" - a charge he denies, claiming that he properly registered the domain name a month before Apple's application for a British trademark for iTunes.

Nominet, the UK internet registry, today found that Mr Cohen had made an "abusive registration" and ruled that the domain name should be transferred to Apple.

Nominet's rules state that they can rule in the complainant's favour if "the respondent is using the domain name in a way which has confused people or businesses into believing that the domain name is registered to, operated or authorised by, or otherwise connected with the complainant".

Benjamin Cohen has rejected the decision by Nominet, and now has to decide whether to appeal to Nominet directly or to refer the matter to the High Court.