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Internet expansion: the new .brand gTLD

04 November 2008

The anticipated new registration scheme allowing companies to apply to register their own gTLD’s will see a huge change in the way in which the internet is structured.

This year ICANN approved a recommendation that there be an expansion of domain name choice and companies will now be able to apply to register their own generic top level domain (gTLD) names.

What is a gTLD?
Who can apply?
What if you apply for the same gTLD as another company?
Should I apply?
How do I apply?
How much will it cost?
The reality for your business?
Further Information


What is a gTLD?

A gTLD is the last part of the domain name that you see, for example .com.

There are presently 21 gTLD’s to choose from like .com, .co.uk or .org. However, once the new registration procedure opens, companies will be able to apply to use any string of letters as a gTLD. This means that companies can register their own brand names, trade marks or generic words, such as .shoes or .car.

Who can apply?

There will be two types of application – open and community. The open application relates to names which can be applied for by anyone and the community application relates to applications that are made by pre-established communities with a finite number of members. For example, an open application is likely to be made by a brand owner whereas a community application could be made by a group of companies within a set industry, for example automotive. This would be particularly relevant where a domain such as .car was being applied for as it would be extremely difficult for one single car company to obtain this domain but the case would be stronger where a group of car companies have joined together to apply.

All companies that wish to participate will have 45 days to apply for their domain name, starting from the opening date for applications.  This has not yet been confirmed by ICANN. It is anticipated that ICANN will then review applications for approximately one month thereafter.

As part of the evaluation period, applicants must be able to show that they have technical competence to operate a registry. A registry is an organisation (for example Nominet for .co.uk) which each company must run to technically operate the domain name. Running a registry includes possessing the technical capability to maintain the name server and deal with any technical support that is required. ICANN will also consider the ‘business case’ put forward by the applicant for obtaining the gTLD. Applicants that do not pass the initial evaluation stage can elect for an extended evaluation for an additional review. Setting up and running a registry is a burdensome task, which will no doubt focus many brands thoughts on whether owning their own gTLD is a sensible investment.

After applications have been reviewed, ICANN will identify those names that are being applied for which are confusingly similar to one another. These will then be published and at this stage applicants will be given the opportunity to withdraw from the procedure and obtain a refund.

Any objections to proposed gTLD’s can be made on four grounds – string confusion, existing legal rights, morality/public order or community objection. These criteria aim to protect against user confusion and existing intellectual property rights and it is through these objections that brand owners can raise objections to a gTLD if their intellectual property rights are being infringed. These formal objections will be filed during a determined period of time, which has yet to be confirmed by ICANN and disputes will be resolved by an independent person engaged by ICANN.

What if you apply for the same gTLD as another company?

After the evaluation stage, if there are two or more applications that are identical, or result in confusion, applicants will be made aware of the problem and given a period of time to mutually resolve it. Thereafter applicants will enter into a ‘comparative evaluation’ or ‘auction’ process. This will involve an evaluation of each applicant against each other and the winner must show that they can add more value to the global internet namespace than other applicants. If there is no clear winner, the auction process will then begin.

Should I apply?

If you register your trade mark as a gTLD, it will obviously increase your brand profile significantly. It will also give an element of control over the use of your brand over the internet. After the “sunrise period” for applications has closed (which gives priority to trade mark owners) anyone will be able to apply for any gTLD. If you think you may want your own gTLD at some point in the future it may be worth considering applying for it in the sunrise period, to prevent a legal dispute at a later date.

Although talking to your competitors may not be particularly palatable, now may be the time to do so if your business feels that it wants to be part of a “community application”. If you are not part of the original application for the gTLD, then you are unlikely to be able to join the application at a later stage.


How do I apply?

ICANN plan to publish information on applicant criteria in November 2008 and applications will be assessed against these published criteria.


How much will it cost?

ICANN have confirmed that the application fee will be in the region of $200,000.

It is widely expected that only large global organisations will register, at the initial launch stage, as the cost involved in the application process and the technical burden of hosting a registry may prove too great for smaller organisations.

The Reality

It is likely that smaller companies will not apply for a gTLD at the outset, due to the cost and administrative burdens involved in running one. Many brands that already have strong .com or .co.uk domain names may not see an investment in their own gTLD as worthwhile. Even companies with defined sectors such as food or travel may not become part of a community application, as they can still apply to the registry once the new gTLD has been granted for a domain name ending in it.

Further Information

For further information relating to the new scheme, visit ICANN at www.icann.org/ or http://www.markmonitor.com/topleveldomains/index.php

 

 

 


 

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