ICANN Clarifies COI

What are the odds that the same week we decide to run a series about the financial aspects of applying for and running a new gTLD, ICANN publishes a set of guidelines for the Continued Operations Instrument (COI)? Maybe it’s because the COI is a question that has been on the minds of almost every applicant we’ve talked to. Or maybe we should chalk it up to a holiday miracle.

Either way, in an announcement published Friday, ICANN listed its estimations of what it will cost to cover critical registry functions for three years for various numbers of domain names. Here are those cost guidelines: Continue reading “ICANN Clarifies COI”

Talking .CHEDDAR Part 3: Financial Capability Questions

This post is the final installment of last week’s gTLD finance series. Today, we’re going to talk about tips to answer ICANN’s Financial Capability questions.

In keeping with its “one-size-fits-all” approach, ICANN designed the scoring system of the gTLD application to ensure that only established entities that with the technical and monetary wherewithal to operate a gTLD registry will be awarded extensions. Continue reading “Talking .CHEDDAR Part 3: Financial Capability Questions”

Talking .CHEDDAR Part 2: The Continued Operations Instrument

This week here on the gTLD Strategy blog, we’re going to be talking finance. Specifically, we’ll be breaking down the costs of applying for and operating a new gTLD, the application questions that deal with finances, and a little thing called the Continuing Operations Instrument (COI). Today, we’re going to discuss the COI and the options applicants have available to them.

As we mentioned in yesterday’s post, the Applicant Guidebook requires all applicants to submit the same information, regardless of whether they are multinational corporations with billions of dollars in revenue, or globetrotting groups of entrepreneurs scrambling to find investors willing to back their .IDEA. Continue reading “Talking .CHEDDAR Part 2: The Continued Operations Instrument”

Talking .CHEDDAR Part 1: A Breakdown of New gTLD Finances

This week here on the gTLD Strategy blog, we’re going to be talking finance. Specifically, we’ll be breaking down the costs of applying for and operating a new gTLD, the application questions that deal with finances, and a little thing called the Continued Operations Instrument. Today, we’re going to get started with the cost breakdown.

At this point, it’s common knowledge that it costs a cool $185,000 to apply for a new gTLD. But what exactly does that sum cover? Essentially, it amounts to a “pay-to-play” filing charge, and it is really just the cover charge applicants will have to pay to get into the new gTLD club. If the application faces complications like String Contention, any kinds of objections or Extended Valuation, that amount will creep up. Continue reading “Talking .CHEDDAR Part 1: A Breakdown of New gTLD Finances”

Working on Batches

In the New gTLD Applicant Guidebook, there is a provision that if ICANN receives more than 500 new gTLD applications, then applications will be processed in “batches.” The first batch will consist of 500 applications, and subsequent batches will consist of 400 applications apiece. This batching process is designed to allow the third-party evaluator that ICANN hires to process applications to handle any extended evaluations, string contentions, or any other issues that may arise without overwhelming its capacity. Continue reading “Working on Batches”

Whoops, There It Is!

ICM Registry, the company that administers the .XXX sponsored top-level domain (sTLD), announced this morning that it was suspending domain registrations “that appear to involve unmistakable, blatant cybersquatting.” The announcement came in the wake of suspicious registrations for famous trademarked names including BusinessWeek.xxx, CNBC.xxx and WashingtonPost.xxx, among others. ICM’s swift move to suspend the questionable registrations is commendable and shows that the registry is committed to protecting trademarks and enforcing its own policies.

However, this morning’s news also highlights a key pitfall of Sunrise Periods: in order to be effective, brands must participate in them. FairWinds recently reported that 75 percent of Fortune500 companies participated in the .XXX Sunrise Period B by blocking either their many company names or names of their key brands. In our view, this high rate of involvement indicates a significant level of awareness of the .XXX Sunrise Period among businesses. Unfortunately, certain companies did not choose to participate, and had to either register their domains defensively, or deal with cybersquatting. With the Internet poised to expand with ICANN’s New gTLD Program, the lessons from the .XXX Sunrise Period—and the precedent set by ICM’s swift response to cybersquatting—will be worth watching.

Stacking the .SHOP Deck

According to a press release issued late last week, Commercial Connect LLC, a company that is planning to pursue a .SHOP gTLD once ICANN opens the application period for its New gTLD Program, welcomed Richard E. Last to its board. Last is also currently a board member of the National Retail Federation (NRF) and Chairman Emeritus for Shop.Org, the NRF’s member-driven trade organization for digital retailers. Continue reading “Stacking the .SHOP Deck”

Got Evidence? California Milk Processor Board Finds Itself Udderly Without

Simply put, not all domains are good candidates for a UDRP complaint. It is the duty of a Complainant and its counsel to both carefully research claims before filing and also to be prepared to alter their strategy if new facts come to light after filing. If these fundamentals are ignored and a Complainant is unable to provide the right evidence, it risks more than just a denial of its claim. Completely unsubstantiated complaints could be judged as an attempt at reverse domain name hijacking, a ruling that could be used against the Complainant in subsequent cases.

The perils of filing a complaint without sufficient evidence were highlighted in a recent UDRP decision handed down by a World Intellectual Property Organization (WIPO) Panelist. In this case, the Complainant, the California Milk Processor Board (the organization behind the Got Milk? advertising campaign) was denied its Complaint against Center Ring Productions, LLC over the domain name GotMilke.com.

Respondent’s owner, a Mr. John Milke, registered the domain in 2010 and argued that it had been chosen purely for its resemblance to his own surname. He also asserted that any similarity to the famous Got Milk? campaign was entirely coincidental. Further, the Respondent stated that the domain had been used exclusively for personal emails and not for commercial gain.

The Complainant introduced no evidence to show that the Respondent was not commonly known by the name Milke and, likewise, was unable to show that the Respondent’s choice of the GotMilke.com domain was an attempt to profit from the Got Milk? mark. It seems that the Complainant found it unbelievable that GotMilke.com could have been registered without a desire to profit from the famous ad campaign. Yet this, in and of itself, does not constitute proof and the UDRP Panelist remained unconvinced.

It is surprising, in this case, that the Complainant’s counsel either didn’t adequately research the Respondent or, upon learning the surname of the Respondent’s owner, didn’t move to suspend the case and initiate settlement negotiations. Once the Respondent’s connection to GotMilke.com was discovered, the Complainant would have been better off avoiding the UDRP route altogether and directly negotiating an acquisition of the GotMilke.com domain, or waiting to file the Complaint until able to make its case. Instead, the case was lost and the Complainant narrowly avoided a finding of reverse domain name hijacking.

New gTLD Hearing: Capitol Hill Calls on ICANN

On Thursday, December 8, the U.S. Senate Committee on Commerce, Science and Transportation will host a full committee hearing on “ICANN’s Expansion of Top-Level Domains.”

According to the Committee’s website, the hearing will “examine the merits and implications of this new program and ICANN’s continuing efforts to address concerns raised by the Internet community.” The Coalition Against Domain Name Abuse, the non-profit that FairWinds co-founded in 2007 as an advocate for brand owners in both U.S. and international legislation, has been working with Commerce Committee leaders to prepare for the hearing. CADNA has provided the Committee with background information on the New gTLD Program, and has discussed various issues that may be raised during the hearing. Continue reading “New gTLD Hearing: Capitol Hill Calls on ICANN”

Lucky – or Unlucky – Number 18

It’s time to talk about Question 18. We’ve alluded to it, hinted at it and even warned about it before here on gTLD Strategy, but now, with just over a month until the application period opens, it’s time to roll up our sleeves and dig into Question 18 of the New gTLD Applicant Guidebook.

Question 18, or the “Mission/Purpose” question, is all about how applicants plan to use their new gTLD. Applicants must address the following three sub-questions: Continue reading “Lucky – or Unlucky – Number 18”

Sorry, ICANN’T Answer That

A few weeks ago, we blogged about ICANN’s recent reluctance to own up to its role as an advocate of new gTLDs (according to statements by CEO Rod Beckstrom, the organization is just educating people about the new extensions). But over the past few months, as we here at FairWinds have been studying the New gTLD Applicant Guidebook inside and out, we’ve noticed a few other instances where ICANN seems to be trying to evade responsibility when it comes to new gTLDs. Continue reading “Sorry, ICANN’T Answer That”