At a special meeting in Singapore on 20 June 2011, the Internet Corporation for Assigned Names and Numbers (ICANN) board voted overwhelmingly in favour of increasing the number of generic top-level domains (gTLDs) from the 22 gTLDs currently available.
The decision to increase the number of gTLDs is expected to usher in a new Internet age and will, according to ICANN, “change the way people find information on the Internet and how businesses plan and structure their online presence”.
However, obtaining a gTLD will not be as simple as the process for registering a domain name. Applicants will need to be of good standing, have the financial capability to fund the operations and have the policies and technical ability to administer a domain name registry system (DNRS). Applicants will need to be able to demonstrate that they have both a DNRS in place that will ensure protection from technical failure, and the proven ability to operate such a system. There will be a limited application period during which time applicants will need to submit their application and initial application fee of US$185,000.
Benefits
A potential benefit of seeking registration of a new gTLD will be the ability to protect and leverage brands to promote strong customer relationships. For instance, Company A could seek to register a “.companya” gTLD that could be used to direct Company A’s customers to all things that are officially Company A on the Internet. This is likely to help curb the problems posed by cyber squatting and also, reduce consumer confusion as to whether a website, goods/services offered or other business is officially sanctioned or otherwise connected with Company A’s network. Consumers could be educated that if a web or email address did not end in .companya, then it should be viewed with suspicion.
A new gTLD could also be used as a powerful marketing tool. For example, if Company A introduced a new product or service, instead of providing information about this at a website with an address of: www.companya.com/information/products/nameofnewproduct, it could simply be:
www.nameofnewproduct.companya. In addition, Company A could use their .companya gTLD to communicate directly with consumers, distributors or retailers who could all be allocated their own domain name by Company A. This would provide a customised web portal for the purposes of accessing their account information and other information about Company A products, offers or sales e.g. www.nameofdistributor.companya.
Risks
Perhaps the most serious risk is that someone could apply for a new gTLD that is the same as, or very similar, to your name or one of your brands. While the high initial cost of an application and the significant ongoing costs associated with running a gTLD are likely to deter everyday cyber squatters, there are likely to be some circumstances in which 2 parties may have competing rights to the same or similar name. In those circumstances, there will be an opportunity to oppose an application through a process similar to the current domain name dispute processes.
The fact that the new gTLDs could include commonly used descriptors such as “.property”, “.bank” or “.car” may in the absence of agreement between competing parties lead to some real disputes. In these circumstances, if the parties cannot agree on a way of working together then the gTLD will be won by the highest bidder in an auction.
According to ICANN, applications for new gTLDs will be accepted from 12 January 2012 to 12 April 2012.
Should you have any queries about ICANN’s gTLD application or about what implications this change is likely to have for you, please contact DibbsBarker’s IPT team:
T +61 2 8233 9554
F +61 2 8233 9555
Michael Sutton | Senior Associate
T +61 2 8233 9587
F +61 2 8233 9555
Stuart Green | Associate
T +61 2 8233 9586
F +61 2 8233 9555
E stuart.green@dibbsbarker.com
