You Can Have Your Own Top You Can Have Your Own Top Level DomainLevel Domain

“for a small fee….”

January 20, 2011

#732030

Background

• What is a Generic Top Level Domain (gTLD)?www.google www.indianawww.uspatent www.uspto

• How many exist?– Initially 7 gTLDs (.com, .edu, .gov, .int, .mil, .net,

and .org) (1980)

– Later 273 two letter TLDs for countries(i.e. .us, .fr) and others were added.

.com .edu .com .gov

The Current State of Domain Names• .com is the dominant gTLD

– Almost 100 million active listings (320 million total)– Next closest is .net with 13 million active– Remaining gTLDs account for < 20 million active

• Every .com domain having four characters or less has been registered!

• As a consequence, new businesses are struggling to come up with desirable .com domains for their website, e-mail addresses, etc.

• How would you like it is your email address was:

yourname@woodardemhardtmoriartymcnettandhenry.com ?

• The shorter the domain name, the easier it is for your audience to remember it.

ICANN’s DilemaWhat do you do if you run out of land to sell?

Simple. You just build more!Simple. You just build more!

Building More Domain Name Real Estate

• In 2001-2003, 14 new gTLDs were added.

• Currently, a total of 21 are active.

• Each gTLD has its own complete namespace.– www.namespace.com– w/ potentially millions of

new domain names

Delays in the Process

• Previously, beginning in May 2011, a user was to be able to apply for ownership of a gTLD of their choice.

• Program has currently been delayed pending resolution of lingering concerns.

• One of these critical concerns is how trademark rights will be enforced and cyber-squatting prevented.

Current Status

• At this time, the hope is that applications for new gTLDs will begin around summer / fall 2011.

• Program will create a TLD Application System (TAS) for handling applications and objections.

• Early estimates are that 300 – 1000 new gTLDs would be registered within a few years.

The Application Process

Will be governed by Applicant Guidebook

The Application Process (cont.)• Only corporations, organizations, or institutions may

apply (no individuals)

• Current estimated cost to own a TLD will be $185,000 USD application fee (plus legal expenses)– $5,000 deposit w/ initial request– Balance due with full application

• Objection window is 5 ½ months and will be handled by selected Dispute Resolution Service Providers (DRSPs).– Likely similar to UDRP process (w/ added costs)

• Estimated time to issuance of gTLD is 8-19 months.

Implications for Our Clients?

• Shift in the landscape of the Internet?– the presence of new gTLDs may devalue “.com”

domains and require clients to consider acquiring domains tied to their marks in other newly established gTLDs.

• Policing the registration of new domain names in these alternate gTLDs.

Who Will Be the First Customer?

• The adult entertainment industry has fought with ICANN for years seeking to obtain:– .xxx– .sex– .adult

• Entities already expressing interest:– Canon Global (cameras)– Berlin (city)

Other Potential Uses?• .movie?

– The MPAA then controls the TLD and can sell space to each new movie release

– No more www.name-themovie.com

• .facebook?– www.joesmith.facebook instead of

www.facebook.com/joesmith

• .law?– Firmname.law

The possibilities are endless………The possibilities are endless………

Hypothetical• Let’s say a company named US Film own

usfilm.com and decides to purchase the .usfilm gTLD.

• One of the major touted advantages is that they can now easily launch any new product or service under their US Film house mark and immediately own the domain name. – If US Film launches a new “DSLR 500” camera,

it already has www.DSLR500.usfilm in its existing namespace!

– However, using sub domains, it could have just used its existing domain and made www.usfilm.com/DSLR500

Hypothetical (cont.)

• The REAL advantage appears to be for those who aren’t happy with their existing domain name and/or don’t own their corresponding .com domain.

• Essentially, if various industries adopt their own gTLDs, this will have a lasting impact on everything from search engines and marketing to cybersquatting/typosquatting.

For More Information…

• A copy of the most recent proposed gTLD Applicant Guidebook is available at:

http://www.icann.org/en/topics/new-gtlds/draft-rfp-clean-12nov10-en.pdf