There was a time when companies only concerned themselves with the ".coms" and ".nets" of the world as part of their trade-mark and domain name strategies. But now, with specialized generic top-level domain names (gTLDs) like ".travel" and ".pro," it may be time for companies to re-examine their domain name portfolios. Indeed, with the Internet Corporation for Assigned Names and Numbers (ICANN) moving forward with the potentially dramatic expansion of gTLDs, this re-examination may become more pressing.

The ubiquitous "dot-something" is part of the Internet's domain name system (or DNS) that allows users to refer to website domain names (such as "www.mccarthy.ca") rather than cumbersome numeric Internet Protocol addresses assigned to each computer on the Internet. Along with the 20 gTLDs now in existence, somewhere close to 260 other top-level domains currently exist, including some 240 country-code TLDs (each a ccTLD).

In August 2007, ICANN's Generic Names Supporting Organization tabled its final report titled Introduction of New Generic Top-Level Domains. The document includes a series of recommendations which, if implemented, could open the way for a large number of new gTLDs. In particular, the report recommends that all applicants for new gTLD registries should be evaluated against transparent and predictable criteria that would be available to the applicants prior to initiating the process. Upon full implementation of these recommendations, technical and financial resources could very well be the most significant restraints in the granting of new gTLDs. This would greatly expand the potential for new gTLDs.

To demonstrate the importance of top-level domain names, it may be helpful to look at the experiences of the tiny nations of Tuvalu and the Federated States of Micronesia. Through the happenstance of naming conventions, these two countries have gained a disproportionately high strategic value for certain media companies. Tuvalu has been given the ccTLD of ".tv" and the Federated States of Micronesia has been given ".fm." These ccTLDs have brought in tens of millions of dollars in licensing fees from third-party registrars otherwise unconnected with the two countries.

McCarthy Tétrault Notes:

There is little doubt that some of the new gTLDs will catch on and that many others will fizzle. However, in today's reality of continued cyber-squatting and the growing sophistication of online fraud, companies should start to consider the implications of a world with hundreds instead of dozens of gTLDs. The decisions as to which domain names to register and which processes to implement to deal with potential trade-mark or trade-name infringers will become even more important. Companies should expect some uncertainty and potential growing pains to come with the future expansion, but with proper planning and expertise, these risks can be managed. Ultimately, the new gTLDs may even provide further opportunities for entrepreneurs.

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