The organization that governs the Domain Name System, ICANN, voted this week to launch the new application process for an unlimited number of new top-level domains, despite lingering doubts and objections from trademark owners and others. This has been controversial, first, because many believe that ICANN has failed to justify the need for new top-level domains; second, because some fear that an explosion of new registries will threaten internet security; and third, because of the vast headaches it will cause brand owners who will face increased costs of monitoring and dealing with cybersquatting. ICANN's press release calls the development "historic" and "one of the biggest changes ever to the Internet's Domain Name System."
Some domains will be brands, such as .canon, although rumors suggest that not many brands have announced an intention to apply. Others who have announced intention to apply will be geography based, such as .berlin, .africa, and .london, or cultural/linguistic, such as .zulu. Others will be demographic, such as .gay or .fam, thematic or commercial, such as .eco, .sport, .ski, or .hotel. Community domains designed to operate for the benefit of a specific community are also permitted.
Here are the key questions we are hearing, and some answers:
Will someone register my brand as a top-level domain?
This is unlikely. The cost to apply to be a registry will be as much as $185,000 in filing fees, although a recent modification allows huge discounts for applicants from developing countries. Applicants will need to show a large amount of technical expertise and capability to run a domain name registry. Those who do not will need to hire a service provider at great expense to run the system. Therefore, this will not be an escapade for the casual cybersquatters. In the unlikely event that someone applies to register a top-level domain that is closely similar to your brand, you will have an opportunity to oppose.
Should I register my brand as a top-level domain?
For many companies, the cost of doing this may not be worth the perceived value to the brand. You should plan to budget possibly as much as $500,000 to get such a program up and running over the first couple of years. In addition to the filing fee, there will be consultant fees, attorney fees, and registry service-provider fees. If you are interested, Venable can assist with navigation of this process.
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