Newsletter Article
New Domain Names
Published: 02/02/2012
By John McKeown January 12, 2012 marked the official start of the much debated program by the Internet Corporation for Assigned Names and Numbers (ICANN) to open up the domain name system. Will the date go down in the history of the Internet? What does it mean to brand owners?
Background
When ICANN was created in 1998, the generic Top-Level Domain space was limited to eight generic Top-Level Domains (gTLDs). Later in 2000 and 2004, a limited number of additional gTLDs were introduced to expand the number to 22 gTLDs.
At its June 2008 meeting, ICANN voted unanimously to modify the domain name system to permit an unlimited number of gTDLs. Under the new regime, anyone may apply for and, subject to ICANN approval, administer a new gTLD. Applicants can select a domain name that is most appropriate for, or perhaps the most marketable to, their customers. The new regime has the potential to create a multitude of new gTLDs
ICANN states that its new gTLD Program will create more choice for Internet users, empower innovation, stimulate economic activity, and generate new business opportunities around the world. Brand owners’ views are more critical since they may be obliged to obtain registrations for defensive purposes and incur expenses relating to monitoring a significantly increased number of potential abuses.
The Timeline
The application window opened January 12, 2012 and applications can be submitted now. The initial application window closes on April 12, 2012. The initial evaluation is expected to be completed for all applications in a period of approximately five months.
At the conclusion of the current round there will be a succession of rounds during which applicants may apply for new gTLDs in accordance with terms and conditions set by ICANN. ICANN’s stated goal is to launch subsequent rounds as quickly as possible. The exact timing will be based on experience gained and changes required after the initial round is completed. ICANN’s stated goal is for the next application round to begin within one year of the close of the application submission period for the initial round.
Potential Impact
The jury is out concerning the impact of the new gTLDs. One view is that with 100 million .com names in use it will be very difficult to change the current system. ICANN and others believe that new gTLDs are a platform of innovation. No one can predict what kinds of new products and services might be developed and no one knows what the new gTLDs will bring.
Brand Owners
Some brand owners have or will apply for new gTLDs in the current round, but many others have adopted a wait-and-see attitude. It is difficult to be dogmatic about the best approach since each brand owner’s situation is different. However, it is clear that all brand owners should monitor developments very carefully.
At least two types of monitoring are required. First, the activities taking place in the marketplace need to be monitored. A brand owner should closely follow the activities of its competitors as there may be situations where the use of a new gTLD can potentially give raise to a competitive advantage.
Second, brand owners should monitor applications for new gTLDs and consider initiating dispute resolution procedures if their legal rights are infringed. To receive consideration, an application for a new gTLD must be submitted electronically through the online application system. ICANN will post on its website all applications considered complete and ready for evaluation as soon as practicable after the close of the application submission period. The objection filing period will open after ICANN posts the list of complete applications and will be open for approximately seven months.
Objectors must file their formal objections directly with dispute resolution service providers (DRSPs), not with ICANN. The process provides a path for formal objections during the evaluation of an application and allows a party with standing to have its objection considered before a panel of qualified experts
Comment
Brand owners need to watch how things develop in this area and take appropriate steps to avoid being put in a competitively disadvantageous position, to the extent it is possible to do so. In addition, they need to ensure that the legal rights related to their brand names are not negatively impacted.
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