Frequently Asked Questions

In June 2008, the ICANN board approved a recommendation that expands the current domain name system in a manner that could result in a significant increase in the number of Top Level Domains (TLDs) present on the Internet.

This proposal opens up the domain name system allowing for great TLD choices including .berlin, .nyc and .paris which have already announced intentions to apply. This will also allow for the creation of brand or generic word TLDs such as .web, .radio or .newcompany.

General

What steps did ICANN take?
The ICANN Board approved a resolution calling for the expansion of generic Top Level Domains (gTLDs) which allows for applicants to “self-select” their TLD string for greater choice.

When is this happening?
This move was only a vote by ICANN to move forward with the creation of an implementation plan, and the draft plan is expected to be released prior to the ICANN meeting in Cairo, which is scheduled to run November 2 – 7, 2008. New TLDs are not expected to be applied for until the first quarter of 2010.

Why did ICANN do this?
The expansion of the gTLD market has been under consideration for several years and ICANN felt the Internet community would be better served by the creation of more options that allow for greater participation and choice for the end user.

Has ICANN placed any limit on the number of gTLDs that may be added to the Internet infrastructure? 
As of now, no pre-defined limit has been set by ICANN. From a pure technical perspective, it’s been estimated that at least 60 million new gTLDs could be added to the root without causing any instability or security concerns.  However, due to operational and administrative challenges, ICANN estimates that more realistically up to 5,000 new gTLDs could be added.

What implications does this have?
Clearly a large increase in the number of gTLDs is of concern to brandholders as it expands the scope of their enforcement responsibilities. With every new TLD that is introduced, companies are going to need to include that TLD as part of their enforcement efforts. With predictions ranging from several hundred new TLDs to over a thousand, this clearly is an important development for MarkMonitor clients.

Application Process

What is the process to get these new gTLDs?
The final process has not been determined; however, we do know the first step will be to file an application with ICANN once they have opened up the application period. Once the application is filed, there will be a public comment period. If there are multiple applications for a TLD, it is possible an auction will be held to determine who it is awarded to. Once an applicant has been successfully granted the TLD (either through an auction process, comparative evaluation or being the only uncontested applicant), a contract will be executed between the winning party and ICANN for management of the TLD.

What will the cost be?
It is currently estimated that application evaluation fee will be $185,000. Applicants may face other fees (paid directly to providers) in case of technical issues or disputes. In addition to the application evaluation fee, ICANN will assess registry fees of at least $25,000 per year.

What does “community-based” mean? 
ICANN has defined two types of gTLDs. “Community-based” gTLDs are those proposed and endorsed by a clearly identified, organized and pre-established community. There has to be a clear link between the TLD string and the community. The second type of gTLD is “open” gTLDs. These names are generally open to any type of applicant.

Can anyone apply for a gTLD?  Are there any restrictions to what can be applied for based on existing trademark rights?
Applications will be accepted from any legal entity (no individuals) that can demonstrate it has the operational, financial, organizational and technical abilities to run a top level domain. There are no inherent protections for trademark owners as a trademark is not a requirement in order to apply for a new gTLD.  It is important to note, however, that part of the application process will include an objection mechanism which will allow rights holders (and others) to submit objections to applied for TLDs.

Will common gTLDs like .bank be created by ICANN or by industry groups?
Industry groups or communities will be responsible for creating community-based gTLDs.

Will closed registries be allowed, where the registry will not allow third parties to register domains in the TLD?
Yes. In this scenario, all domains and sub-domains can be used for internal organizational use only.

Is it possible to apply for multiple TLDs in the same application?
As of now, no. Each gTLD will require its own application.

How will priority be established if more than one party wants to register the same gTLD?
ICANN has proposed in its draft application process an outline for handling string contention. If a community-based applicant is involved, then the contention may be decided by either comparative evaluation or auction. If no community-based applicant is involved, then the contention will be resolved by auction.

Will the application period repeat?
The new gTLD will first be offered in a series of rounds until demand for new gTLDs is clear. Thereafter, the application process will be on an ongoing basis.  The date for the second around is expected to be announced in the RFP for the first round.

Defensive Strategies

Are there protection mechanisms in place to protect my brand?
Yes. ICANN has included an objection mechanism that allows trademark holders (and others) the opportunity to object to a TLD based on existing rights. Further information on this objection process will be included when the draft RFP is released prior to the ICANN meeting in Cairo, which is scheduled to run from November 2 – 7, 2008.

Is there any procedure in place to notify brand owners that a third party has submitted an application that includes the brand owner’s trademark as part of the TLD string?
As of now, no. Brand owners will need to pay close attention to the posting of new gTLD applications in order to ensure they file any objections they may have during the defined objection period. Failure to do so could result in companies being forced to take expensive legal action if a TLD is approved which infringes on an existing right.

Can you obtain a defensive TLD without plans to operate it?
Unlikely, as the GNSO has recommended that a new gTLD be used within a fixed timeframe to be specified in the application process. The purpose of this guideline is meant to prevent gTLD squatting.

Next Steps

What do I need to do to prepare?
Staying informed of ongoing developments is key at this time. Having internal discussions at your company about whether or not applying for a new gTLD makes sense for your business is a good exercise. As the final process and costs have yet to be defined, it will be difficult to make definitive decisions. MarkMonitor will continue to follow developments and communicate to our clients as appropriate.

How can MarkMonitor help?
Whether brandholders plan to acquire and operate a custom TLD and/or proactively defend their brands during the ICANN application process and beyond, MarkMonitor is here to help.  Through our Top Level Domain Advisory Services, MarkMonitor is available to assist brandholders in developing the right strategy in response to ICANN’s expansion of top level domains (TLDs).  Please contact MarkMonitor at 800-745-9229 or your Client Services Manager directly if you have any questions or would like further information.

To signup for ongoing updates on the new gTLD program from MarkMonitor, as well as notifications on upcoming educational web seminars on this topic, please go to:  http://www.markmonitor.com/cta/gTLD-news/index.php