If the root zone owner delegates the UK TLD to the
United Kingdom, then the controller of geographical territory is the controller
of a domain! Very simple.
< There already exist plenty of laws
about use of names -- the Internet, and specifically the DNS is just another
publishing/advertising means.>
IANAL (I am
not a lawyer), but I would rather say DNS is an unique means of distribution
that cannot operateby territory,
only on a global scale.