DOT BRAND - A new internet age?

24 Jan 2012

Jason Rudkin-Binks
Lucy Archer

12 January 2012 marked the opening of the application period in which organisations can apply to create and operate new generic top level domain (“gTLD”) names. Most internet users will be familiar with gTLDs such as “.com”, however the new gTLD programme will likely see the number of gTLDs greatly expanded with brand owners taking the opportunity to create exclusive brand-orientated gTLDs.  

The Application Process
Applications for a new gTLD can be made between 12 January 2012 and 12 May 2012. The proposed gTLD string must be at least three characters and consist entirely of letters.  

Crucially the Internet Corporation for Assigned Names and Numbers (“ICANN”), the governing body of the new gTLD programme, expects each successful applicant to operate a domain name registry in respect of the newly approved gTLD, (see below).  As such an application requires the supply of detailed information to prove an applicant’s technical, financial and operational capability and the application fee is a sizeable US$185,000.  

Name reservation
There is no opportunity to reserve a gTLD, therefore trade mark owners who are concerned that their brand may be applied for by an unrelated third party will instead have to object on specific grounds.  

Contentions / Objections
All proposed gTLDs are publicly posted after the application period closes. This allows parties to review the gTLDs and decide whether to lodge an objection. Objections may be filed on the following grounds:  
  1. The gTLD is confusingly similar to an existing or another applied-for gTLD; 
  2. The gTLD infringes a party’s legal rights (for example trade mark infringement);
  3. The gTLD is contrary to generally accepted norms (public interest objection); or
  4. The gTLD, which is targeted at a community, is opposed by a significant proportion of that community.

ICANN will allow all parties involved to settle the matter themselves or alternatively the matter may be passed on to the appropriate dispute resolution authority.  

Being a Registry Operator
Organisations which operate gTLDs are called registries. Among other functions of the gTLD, registries are responsible for receiving and providing information concerning registrations of domain names in the gTLD and operation of the registry Domain Name System servers. This involves highly skilled technical operators and a reasonable financial investment.  

If an application for a gTLD passes the evaluation procedure and is not objected to, the applicant will become the registry operator of the proposed gTLD. This means that the applicant will be able to set its own rules, including who can register second level domain names in the gTLD and at what price.  

What can we expect?
The purpose of this gTLD expansion is to encourage innovation and competition. There are numerous benefits presented by the chance to control a gTLD, for example heightened brand definition or creating a united, support network for a specific cause or community; however there are also significant technical and financial responsibilities which applicants must demonstrate their capability to handle.  

Benefit & burden?
While control of a gTLD and establishment of a domain name registry will be a substantial undertaking for a brand owner, this must be balanced against the possibility of the harm that may be caused by allowing the applicable gTLD into the hands of a third party and/or the burden of having to dispute such ownership.  

Brand owners are encouraged to consider whether a proactive or reactive approach best suits their needs.  


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