Copyright Link creates invalid url

I have Wordpress setup on a server in a sub-directory.

In the Settings/General screen I have:

WordPress Address (URL): http://www.domain.com/domain
Site Address (URL): http://www.domain.com

The site works fine and all urls show as http://www.domain.com and not like this:

http://www.domain.com/domain

However, when I use the Copyright function with a hyperlink it creates and invalid url.

My text is:

Copyright %copy% %current_year% Domain. All rights reserved.

It creates a url like this:

http://www.domain.com/www.domain.com

Any ideas or recommendations?

Thanks

Steve