Yesterday's decision by the Internet Corporation for Assigned Names and Numbers (ICANN), to allow for a dramatic increase in the number of top-level domain name suffixes, presents new challenges for brands in the online space.
While concerns have arisen over the potential explosion of domain names - ranging from anything from .food to .beer, the new generic top-level domains (gTLDs) are intended for more restricted use, most commonly the so-called .brand names.
This is according to prominent local ICT lawyer and member of the ICANN board, who participated in the vote, Mike Silber.
“These are likely to have limited use and may not have any second-level names or limited use of second levels for regions or distributors (so africa.brand or distributor.brand),” explains Silber.
“The other use is for more open names where the applicant for the name intends to offer registrations at the second level. For example .CITY, where you could apply for name.NAMEOFCITY or .EXAMPLE where you could get name.EXAMPLE.”
Major concerns
Silber acknowledges that one of the greatest concerns regarding the introduction of new gTLDs is that of trademarks and potential abuse.
“Many legitimate trademark holders want greatest rights at the least possible cost, while many entrepreneurs (whether they hold trademarks or not) want open access and innovation,” says Silber.
“To try balance these needs, the programme recognises new trademark protections, while still allowing innovation at both the top-level, as well as the second level (dot EXAMPLE and EXAMPLE dot newname).”
“The financial impact is uncertain, but it is hoped that new and innovative services will be stimulated, also allowing for creative new business models, while limiting the use of these names by squatters, scammers and the like.”
According to Silber, organisations need to consider if they are interested in applying and if they stand to gain real value at the top level (on the right of the dot).
“It will be costly and complex, but it could add huge value to their brand or support innovative products or services,” he says.
The next issue is for existing trademark holders to have their trademarks protected, which Silber explains will be done primarily through the new trademark clearing house, which he says will be created.
Counting costs
Applications for new gTLDs do not come cheap, and the $185 000 application fee could be a major hurdle for some organisations.
“This fee is only for a new top-level domain and actually amounts to a very small fraction of the actual costs of running a new gTLD,” says Silber. “On that basis, there are not likely to be many South Africans applying - at least in this round.”
According to Silber, there is a programme under development by ICANN to support applications from needy applicants. “Most importantly from language, linguistic and cultural communities that are under-served in the current naming system (so non-ASCII scripts and non-Latin languages),” explains Silber.
“This programme will be finalised before applications open and may involve some fee deferment and related support, but will not involve waiver.”
Silber was the first South African to become a member of the ICANN board, appointed by the country code Names Supporting Organisation, and is serving a three-year term (since June 2009).
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