Slide 1: INTERNET AND DOMAIN NAMES: GENERIC TLDS
Alex Don and Stefano Sordi of Namesco examine the key issues surrounding the changes in gTLD application policies announced by ICANN
New gTLDs promise to change the face of domain names
s we all know at the heart of every successful business there is a strong brand identity that encompasses the values, culture and visual standards of an organisation. Protecting brands online means safeguarding the continuity and future growth of the business while ensuring consistent communications to the online community. Domain names have been at the epicentre of online brand protection for many years to the extent that today domain name management and online brand protection go hand in hand in the battle against online brand infringements. However is that battle about to get tougher? Ahead of next year’s planned relaxation of the top-level domain application process, where new extensions can be more easily applied for, Internet Corporation for Assigned Names and Numbers (ICANN) is at the centre of the debate. Are we ready for .football, .property or even .birmingham? The opportunities are endless, but has it all been thought through? We will discuss the issues surrounding this debate and what actions businesses should take to protect their brand online.
A
Alex Don
Having entered the internet industry in 1999, Alex Don joined Namesco in 2001 and gained his current position as domain systems manager two years later. He is responsible for the development and maintenance of software systems to handle a growing portfolio of over 400,000 domain names. A developer first and foremost, Alex is responsible for data integrity and the evolution and maintenance of Namesco’s domain name registration and management systems. Specialising in process automation and registrar to registry integration, his many years of experience in this role bring with them extensive knowledge of registrars, registries and the DNS. As part of a group managing over 1.5 million domain names, Alex plays a key role in maintaining the high levels of efficiency and automation on which Namesco prides itself. Established in 1996, Namesco offers a range of domain name registration, portfolio management, online brand protection and web hosting services among others.
Changes to the internet addressing system
Not-for-profit organisation ICANN is responsible for coordinating the internet’s addressing system. Its principle role is to promote competition in the domain name marketplace while ensuring internet security, stability and interoperability. The relaxation of the generic top-level domain (gTLD) application process is hoped to bring about more innovation and choice to the current internet addressing system of 21 gTLDs. According to World Stats, the number of internet users worldwide is estimated at 1.6 billion and growing. ICANN believes that the key to guaranteeing longevity and success of the global network is diversity, choice and competition. However with such a large change to the system about to take place, there are inevitably some concerns. ICANN has been involved in lengthy consultations with all constituencies of the global internet community. Governments, individuals, civil society, business and intellectual property constituencies have all had a part to play in constructing the policy. With the programme set to launch in 2010, questions remain about what impact the change will have on the internet industry as a whole.
Stefano Sordi
Stefano Sordi is the senior manager of domains at Dada.pro, an ICANN-accredited international domain name registration, portfolio management, hosting, eCommerce and internet services company, present in the UK market through the Namesco brand. In 1998 Stefano founded Geoide, one of the first web agencies to appear on the Italian market. Geoide was acquired and integrated into Dada the following year. Stefano has been working at Dada for more than 10 years and has covered many roles within it including research and development manager and sales manager. Stefano has also personally followed the company’s international growth over the years.
Concerns over trade marks and consumer welfare
Specific reservations regarding the new gTLDs come from corporations with large portfolios of domain names, where concerns exist over protection of trade marks. The main concern is that the new regulations will force large domain name owners and known brands into a costly exercise in defensive registration. While it’s hard to predict the repercussions on trade mark owners, it is also easy to understand the concerns. The potential price capping of new gTLDs suggested as a mechanism for protecting IP owners and shield them from speculative selling techniques could be inadequate and even
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Slide 2: INTERNET AND DOMAIN NAMES: SPONSORED EDITORIAL
extension .jp corresponds to Japan, while .eu corresponds to the European Union. This means that the current range of domain extensions any registrar can offer is extensive but manageable. When the planned relaxation of the gTLD application process comes into force and new specific extensions can be more easily applied for, such as .paris and. football, this is going to have an enormous bearing on registries and registrars potentially affecting the overall infrastructure of many domain name registration providers (registrars) both at a technical and administrative level. According to ICANN’s statistics, the year 2008 ended with a total base of 177 The main concern is that the new regulations million domain name registrations will force large domain name owners and across all of the TLDs. This represents known brands into a costly exercise in 16% growth over the previous year and 2% growth over the third quarter of defensive registration 2008. Of the 177 million domain name registrations, about 96 million are lead to an increase in fraudulent or deceptive internet market- gTLDs. This number could soar when the application process ing practices such as phishing email fraud. There is no doubt for new extensions is relaxed. The planned new gTLDs will increase the number of that cybersquatters and internet fraudsters will seek to take advantage of the changes implemented and both businesses options that registrants have and create more choice and competition, in turn potentially bringing down prices and boosting and consumers will have to be even more vigilant. These are just a few of the issues and questions ICANN is internet activity. The availability of new gTLDs also offers working through to make sure the new programme is water- increased opportunities for registries and registrars to develop innovative services that could provide new opportunities for tight and safeguards the internet community. increases in consumer welfare and output. What impact will the impending change have? Many groups and organisations have already expressed an Within the internet addressing system there are 21 gTLDs interest in making applications for new gTLDs, representing including the popular .com, .net, .biz and .info. In addition, cities (.paris) and charities (.green), while more generic terms there are around 250 two-letter country-code TLDs (ccTLDs), such as .food and .wine have generated substantial interest. which identify a country or territory. For example, the internet Also many large companies are already looking to reserve their worse could fuel a land-rush and the growth of a speculative secondary market. However, the fairly limited take up of new gTLDs such as .biz and .info suggests that the need for defensive registrations may prove containable. Since their introduction in 2000, .biz has attracted about 2 million registrants and .info about 5 million, someway below the estimated 80 million registrants using.com. Some groups have also expressed concerns about the affect on consumer welfare as the introduction of new gTLDs could potentially cause confusion among internet users, and possibly
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Slide 3: INTERNET AND DOMAIN NAMES: GENERIC TLDS
own names so we could see .microsoft or .deloitte among others. If we think about just a handful of the possibilities this change could bring about: professional sports clubs could apply for their own domain extensions such as .chelsea or .lakers; local councils may want .boston or .london; and then tourist boards may want .nyc or .camping; major consumer brands may apply for .mcdonalds or .nike. An unanswered question is whether ICANN will cap the number of new domains that can exist or will the possibilities actually be next to endless? Can an almost infinite number of extensions be controlled? There are just some of the questions needing clarification from ICANN before the impending ICANN has changes come into force.
applicants will detail each phase of the review process and the requirements that need to be met by ICANN for approval. ICANN will assess the technical and financial capabilities of the applicant as well as the effect that the proposed gTLD would have on consumer confusion and internet stability. Opposing parties to the proposed new gTLD such as existing TLD registries, other applicants, owners of IP rights (trade marks for example) and others will be able to file their objections on grounds such as string confusion, legal rights (trade mark infringements), morality, public order and community
Navigational benefits from new gTLDs
One of the benefits of introducing new gTLDs is improved navigation on the internet. For example, companies may achieve better navigation through to their website by having domain extensions closely targeted to their site content, even if the new gTLDs are not created to replace .coms. This is due to the likelihood that new gTLDs will be designed to serve consumer needs that .com domains do not meet particularly well, while some new gTLDs may facilitate consumers’ internet navigation and search by more quickly directly them to websites with the desired content. For example, company-specific gTLDs such as .Toyota may facilitate the ability of Toyota customers to obtain product information as well as the interaction of suppliers and dealers with Toyota. Likewise, new gTLDs such as .cars, may facilitate the ability of consumers to gain generic information about cars as well as the ability to access car manufacturers’ and suppliers’ websites. And finally a higher flexibility and better choice of domain name extensions may also help businesses find their preferred name which they may not be able to obtain in the .com or other popular extensions, thus addressing the issue raised by the shortage of domain name availability.
also initiated a process that will address the concerns of the trade mark owner regarding the effect that the introduction of new gTLDs could have on their IP rights
objection. The basis for objection will be limited though. ICANN has also initiated a process that will address the concerns of the trade mark owner regarding the effect that the introduction of new gTLDs could have on their IP rights. The Implementation Recommendation Team (IRT) formed by ICANN has issued a report containing recommendations for new trade mark protection mechanisms to try and help smooth out any concerns. Managing a large domain portfolio across multiple international extensions can be both time consuming and technically complex. Each country has different requirements when registering a domain name. With this also comes transfers, renewals and maintenance of that portfolio where one tiny mistake or lapse could be catastrophic for a business. With the introduction of new gTLDs this can only become more challenging and so finding an expert domain management company to help secure new gTLDs will be key going into this new process. Having a completely managed domain name portfolio removes the risk of losing control of an online identity. With the relaxation of the application process of the new gTLDs being imminent, companies should be thinking now about the domain extensions that would compliment and protect their business needs in order to be ready for these changes. They should also be obtaining expertise from domain management specialists who will help them to not only protect their brand against online infringements but also to develop their brand for the future.
Putting the changes into motion
ICANN will announce the full operational details of the new gTLDs in the final version of the application guidebook, which is expected to be released this month. The two previous versions of the application guidebook have already been released for review from the internet community. The guidebook for
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thank you