It is accepted scientific orthodoxy that the universe as we know it is expanding. In 2012, a parallel expansion is due to take place in the online universe.
Following six years of contentious negotiations, on June 20, 2011, the Internet Corporation for Assigned Names and Numbers (ICANN) approved the virtually limitless expansion of the generic top-level domain (gTLD) space. In January 2012, persons can apply for unique TLDs in the space to the right of dot, such as ‘.dunncox’ instead of ‘dunncox.com’, thereby easing pressure on the existing 22 web suffixes such as .com, .net, .info, .biz, and .edu.
Analysts expect hundreds of new domains mostly for companies and service providers looking to stamp their mark on the internet. Brand owners need to consider the implications of this process on their legal rights and business models. Under the new gTLD policy, any interested party may apply for and obtain the top level domain space for any generic word or even a trade mark. For instance, any person could apply for the gTLD .bleach. Similarly, one could purchase rights in a gTLD consisting of a trade mark, such as .coca-cola.
Various types of new gTLDs are expected including brand domains (.kfc, .bb, .macys, .ibm, .citibank, .pfizer), generic words (.bank, .shop, .toys, .hotel, .sports) and even place domains (.paris, .miami, .nyc, .bangkok). Also, websites can now be categorised by subjects such as industry, geography and ethnicity as well as using Arabic, Chinese and other scripts alleviating the difficulty of transcribing web addresses for non-users of the Roman alphabet.
While the new policy theoretically increases competition as it frees up domain space, it also creates new and potentially endless causes for worry on the part of brand owners anxious to protect brands (and budgets) from the incursions and costs of squatters and infringers. Though some details are subject to change, the new system is sufficiently outlined enabling brand owners to formulate new protection strategies.
Brand owners must now consider how to approach this greatly expanded domain name space. Some like Japanese multinational Canon have been preparing for years for its own gTLD space at .canon. Many brand owners are focused on the opportunities promised by a brand gTLD including better control of marketing, security and leveraging of their own web space.
However, significant challenges and responsibilities will be in store for successful applicants. Rod Beckstrom, CEO and President of ICANN, in his keynote address on October 10, 2011 to the Global Leaders Summit in Dubai, highlighted the complexity of the application process and the need for applicants to be prepared to face substantial obstacles. He stated: “Running a top-level domain is not like buying a second-level domain. You’re actually running a piece of critical [Internet] infrastructure for the world. It’s got to be running 24/7, reliably, and for years and years and years.”
Mr. Beckstom stressed the need for a successful application to have “significant technology expertise or a relationship with a party that will give you that expertise” as well as the significant financial wherewithal necessary to operate an Internet registry.
Even while assuring his audience that “opening up the right of the dot” in Latin script addresses to “dot almost anything” is being undertaken with great care to ensure the security and stability of the Internet’s domain name system, Mr. Beckstrom noted: “People ask me: what’s going to happen to the domain name system now that you are opening up new gTLDs? And the answer is: we don’t know. The innovation will come from very unlikely directions.”
The application period opens on January 12, 2012 for a three-month window and close on April 12, 2012. Applying early will increase the chances of successful acquisition as once approved, confusingly similar domains will not be accepted. An application fee of US$185,000 per suffix is payable to ICANN and the application process is outlined in an Applicant Guidebook. The Guidebook is the roadmap to applying for a new gTLD, specifying what documents and information are required to apply, the financial and legal commitments, and what to expect during the application and evaluation periods.
Bids will be accepted from the first suffix auction set for January 12, 2012 and the auctions will run for 90 days. Where multiple parties have legitimate claims ICANN will auction suffixes, though it expects many companies will reach private deals to avoid a public auction. In late April to May 2012, ICANN will publicly post all gTLD applications. Concerned parties will have approximately seven months to file objections to submitted applications.
With the approaching rollout of unlimited gTLD extensions, the world expectantly awaits the outcome. The anti-monopoly lawsuit recently filed against ICANN and ICM Registry alleging that the new ‘.xxx’ TLD was not put out to competitive bid and that a monopoly has been created through ICM Registry’s presumptive renewal raises the question whether this presages things to come in the new gTLD space.
Joanne Wood Rattray
Attorney-at-Law
DunnCox
48 Duke Street
Kingston
joanne.wood@dunncox.co