Introduction

On October 24, 2008, the Internet Corporation for Assigned Names and Numbers (ICANN), which is the organization responsible for governing the global domain name system, released draft policy documents known as “New gTLD Program: Draft Applicant Guidebook” that will bring about landmark changes to the current Internet naming system and have significant impact on business entities globally.  Currently, there are only 21 active generic top-level domain (gTLD) extensions (examples are: .com, .net, .org, .info, .biz) and 249 country-code top level domain (ccTLD) extensions (examples are .ca, .fr, .de, .us, .uk) available for registration.  However, under ICANN’s new gTLD initiative, hundreds of new gTLDs could be introduced over the next two years, including brand-specific domain extensions like .yourcompanyname, industry-related domain extensions like .sports and geographically-related domain extensions like .berlin.

To help our customers better understand the risks and opportunities of the new gTLD initiative by ICANN, Corporation Service Company® (CSC), the trusted partner of more than 50% of the 100 Best Global Brands , including 3 of the top 4, for global domain name registration and management, has created this Briefing Paper to provide a summary of the 250-page plus “New gTLD Program: Draft Applicant Guidebook” (New gTLD Guidebook). The New gTLD Guidebook is currently open for public comment, but is expected to be finalized by February 2009, with ICANN expected to accept new gTLD applications for consideration by July 2009.

Overview

The Draft New gTLD Guidebook is currently available in 7 languages (English, French, Spanish, Arabic, Chinese, Portuguese and Russian) and is broken down into 6 modules:

• Module 1: Introduction to the New gTLDs Application Process;
• Module 2: Evaluation Procedures (including evaluation criteria);
• Module 3: Dispute Resolution Procedures;
• Module 4: String Contention Procedures;
• Module 5: Transition to Delegation (including the draft registry agreement); and
• Module 6: Terms and Conditions. 

The Draft New gTLD Guidebook is also accompanied by 7 explanatory memoranda which were developed by ICANN staff to give further insight and clarification into the basis of the policies proposed.  They are:

• Morality and Public Order Objection Considerations in New gTLDs
• Protecting Rights of Others in New gTLDs
• Cost Considerations
• Geographical Names Process
• Update on DNS stability Criteria [PDF, 68K]
• Original DNS stability paper: http://www.icann.org/en/announcements/announcement-06feb08.htm
• Resolving String Contention
• Summary Changes to Base Agreement

ICANN plans to hold 2 public comment periods to seek input on the proposed policies and procedures; the first of which will take place October 24 – December 8, 2008 and the second to begin sometime in January 2009.  The first application period is projected to begin sometime in late June or July of 2009 and be 45 days in duration, with a second application period expected to be opened in mid-2010.

In ICANN’s 10-year history, their two “calls” for new gTLD applications have been very controlled and limited.  In both 2000 and 2003, ICANN pre-set the number of applications they would approve (5 and 7, respectively) prior to accepting new applications and followed a process which resulted in TLDs being launched over a period of years, not months.  Under the process proposed in the Draft New gTLD Guidebook not only will the quantity and velocity in which new gTLDs are launched increase dramatically, but it is also expected that there will be greater diversity, choice and innovation among the gTLDs.

Since each gTLD string can only be delegated to one registry operator/owner, it will be incumbent upon corporate brand owners to determine early on in this process whether application for a new gTLD is right for their business or whether they should simply monitor developments from a brand protection point of view.  The “should I apply” analysis will be highly dependent upon the type of business in which the brand owner is engaged and potential for innovation and brand extension online, the likelihood channel competitors will seek a gTLD that would put them at a competitive disadvantage and the probability that another party holding similar or identical trademark rights under a different class in another global jurisdiction will apply for the string of characters to which you share a legal right.  For once a gTLD is delegated to a registry operator, barring insolvency or failure to comply with ICANN requirements, that gTLD will remain in the exclusive control of the party to which it was awarded without the need for them to re-bid or re-apply at any time in the future.   

It is also important to note that where applicants who lack trademark rights to a gTLD string attempt to secure a string that infringes upon the trademark rights of another, there are rights protection mechanisms that can knock that application out of consideration.  However, corporate brand owners must proactively assert their rights at specified times in the process in order to avail themselves of these protections.  Failure to assert their rights at specific junctures within the process may result in waiver of rights and the award of a gTLD to an organization that lacks similar rights.

Click here to read the entire Briefing Paper

Read Public Comments submitted by CSC