They block by the Ip address..it is way to easy and effective..recently a funny incident came across..you might have heard about it..the President of Tajikistan was dancing in his son's marriage i guess so a recorded video of him dancing was posted on youtube and guess what the president blocked...
I don't think that is not allowed..if you are creating a simple blog with not much promoters and supporters i guess you can use the name. It is better you contact any expert on this.
That is quite a commitment they are providing for the people who are in need of content. The pricing seems to be reasonable as well. I think i am gonna try them.