Dramatically new Internet addresses will debut over the next
couple of years. The Internet Corporation for Assigned Names and
Numbers (ICANN) announced that it will accept applications to
register new generic top-level domains (gTLDs or
"domains"). The new gTLDs will be a paradigm shift in the
domain name registration industry.
In the past, ICANN maintained strict control over and issuance of
top level domains. While ICANN will continue to control domains, it
has presented a new model for issuance of gTLDs. In addition to the
current pool of the 20+ familiar gTLDs, such as .com, .net, .org,
.edu, and .gov, a virtually unlimited number of new domains could
be issued. For example, parties will be able to apply for and
register a domain for their business name or brand. Associations
and other organizations will be able to apply for a gTLD associated
with their organization.
Ownership of key domains could become a way to convey cache to
consumers, ".bulgari" or ".vuitton," or market
dominance, ".coke" or ".pepsi." As an example,
browsing to www.paper.com currently redirects consumers to Office
Depot's home page, asserting the brand's dominant role in
the paper industry. The company who registers ".paper"
will be able to claim consumer recognition in the new Internet
hierarchy.
Entrepreneurs can get creative. Once a new domain name is
registered with ICANN the successful party can act as a registrar
for the virtually limitless variations on that new domain. As an
example, a manufacturer of snowboards and skateboards could
register the ".board" domain and establish separate
snow.board and skate.board websites. They can also charge a fee to
register all of the other web addresses under the new
".board" domain.
Such recognition has its price. Parties seriously interested in
these new gTLDs should consider filing an application along with
the filing fee of $185,000. Other costs may be incurred for
extended reviews of applications, dispute resolution or arbitration
of conflicting interests in domains, and legal fees in preparation
of the application.
Applicants will be required to operate a domain name registry for
the specific gTLD in their application. The new registries will
require a long-term commitment to provide IT infrastructure,
support, and management. Parties will not be permitted to merely
"park" a gTLD to prevent others from using it. The
additional costs could potentially raise the price of a successful
application to $300,000 or more. Additional annual fees (to be
determined), in excess of the initial application fees, will be
charged for the operation of each new gTLD.
ICANN also will provide for a "community based
application." This application will allow one entity,
representing a particular "community" of interests
(geographic region, industry, professional organization, etc.), to
collaborate on a new gTLD application. The community application
will allow the entity to claim registration priority in case of a
dispute over the domain.
While trademark owners will be given priority in requesting the new
gTLDs, there is no guarantee that their trademark registration, by
itself, will result in a successful new gTLD application. In fact,
due to the financial significance and potential of these new
domains, disputes may become more common and contentious.
Even though ICANN has identified a start up or "sunrise"
period to give priority to owners of trademark registrations,
previous experience with domain name launches teaches us that
disputes will arise between trademark owners with the same
trademark registered for different goods and/or services in
different classifications. For example, it is possible for any
number of entities who have registered the trademark
"UNITED" to file for the ".united" gTLD. The
processes and procedures for resolving such disputes are still
being developed by ICANN.
Currently, the draft application process includes several major
phases:
Initial Evaluation – This is an initial review phase by
ICANN to determine if the applicant has the required technical,
operational, and financial capabilities to operate a domain name
registry.
Extended Evaluation – This phase will allow applicants to
file for an extended review after a failed initial evaluation. This
phase allows submission of additional or clarifying information,
providing an informal appeal from an initial rejection.
Objection Period – During this phase each application
will be published to allow other parties to submit formal
objections against an applicant. Interested parties will need to
monitor gTLD publications in order to object within a limited
objection period.
String Contention – In this phase parties holding valid
applications to the same or similar domains will try to resolve
alleged disputes.
For large corporations with sufficient IT resources and talent, the
prospect of entering into the domain name registry business might
not be so daunting. However, because of the price and registry
requirements, small and middle market businesses may need to
thoroughly consider whether to invest in the new gTLDs. As a
possible solution to the application requirements, ICANN does not
prohibit applicants working with an established domain name
registrar to provide the back office technical and administrative
support.
Various commentators suggest that the new domains will be a savvy
marketing move by any business with an iconic brand as it will
provide additional ways for consumers to find the brand, develop
loyalty and enhance affinity, and carry with it the cache
associated with the new gTLD. They believe that, as the new domains
are introduced, companies with crucial domains will be at the
forefront of this new Internet landscape.
Some commentators note that the new gTLDs should have little, if
any, effect on search result placement and search engine
optimization (SEO) strategies. It is believed that search engines
will not prioritize these new gTLD in their routine rankings.
However, these new gTLDs may provide an opportunity for further
sponsored placement in search results.
The window of opportunity to file an application will open Jan. 12,
2012. This initial window will close April 12, 2012. The initial
window is open to all applicants. Owners of trademark registrations
will be given priority, especially with regard to the
".brand" or ".trademark" gTLDs. It is estimated
that an application for a new gTLD will take approximately nine
months to process from the date of filing, assuming it does not
encounter any impediments. Complications and challenges such as
string contentions could extend this period to up to two years.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.