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Originally Posted by GreekCousin
Hi Im a newby to dns nevermind idns.  Heres what Im finding a bit confuseing.Say if a man in Shanghai has a website call for eg xyz.com tho in chinese script and a guy in london has a website with the same name essentially but in the roman alphabet, come the inception of the punycode revolution, would there then be two seperate websites with the same name? 
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Don't worry, the confusion over these issues is the reason the site was created.
The keyword or second level does not equate one domain for a another the uniqueness is maintained. The only situation that this might ever arise in is where a domain is blocked because of character mapping such as with Traditional and Simplified Chinese. That could occur because if you have one then you may effectively have rights over the other.
With latin even a domain with accents will not resolve to the unaccented form or visa versa.
By contrast the Top Level will map to Chinese Character equivalents as agreed with ICANN. Dot Com may be represented in dozens of different forms which will be meaningful and convenient for local users. These representations will effectively be Aliases and will all resolve the same registry, therefore the uniqueness of the IP address will be maintained.
There is also a lot of confusion with Trademarks. Simply though, Trademarks are graphical representations and the fact that a word means or even is phonetically identical to an English word does not constitute a trademark infringement. It is only a trademark infringement if the written version is the same or very similar.