Month: September 2012

Domains Still Dominant in Ecommerce

Posted on by jbourne

A new report by Mashable makes it clear that direct navigation to online retail websites is biggest driver of ecommerce sales. According to a study of over 75,000 online retail transactions recently released by Forrester, 30 percent of all online purchases from new customers result from direct navigation – users typing domain names directly into their browser bars to reach the retailers’ sites.

Organic and paid search were the next most prevalent purchase channels amongst new customers, while email was the clear winner amongst repeat customers, accounting for almost a third of all purchases.

For all the hype surrounding social media’s ability to drive online shopping, the study’s figures were surprisingly low. Less than one percent of all transactions across both new and repeat customers were driven by social networks.

A number of factors could contribute to this tiny figure. First, while consumers might not make purchases directly from social media sites, the networks still serve as hugely influential marketing tools, influencing users in ways that aren’t easily quantifiable. Second, Forrester’s study focused on large online retailers, and the company notes that social media does factor into more purchases at smaller ecommerce outlets, which were not included in the study.

Brands should take note of the results of this study as the biggest online shopping period of the year draws closer. Anchoring branded online retail outlets to strong, intuitive domain names will continue to drive the highest volume of online purchases from new customers looking for a specific product. Companies looking to lure existing customers should make an effort to individualize email messaging as much as possible, based on past purchase trends.

Online shopping continues to gain traction over all purchase channels, and while trends are sure to change, it’s clear that, at this point, direct navigation is still the key player in the world of online retail.

Just to Clarify

Posted on by jbourne

If you’re a new gTLD applicant, there is a chance that at some point over the past few weeks, you received a notice from ICANN informing you that your application had been selected to be part of a Clarifying Questions Pilot program. In an August 9 webinar, ICANN pointed out that although the questions that select applicants receive as part of the Pilot are actual questions based on the evaluators’ review of the application in question, the answers that applicants send in will not be counted toward the ultimate evaluation of their applications. Rather, this Pilot program is designed to help ICANN ensure that it gets the Clarifying Question (CQ) process right by asking the right questions to elicit the proper responses from applicants. Continue reading “Just to Clarify”

Pinterest Packs a Punch

Posted on by jbourne

Pinterest, inarguably one of the fastest rising stars of the social media world this year (and the subject of a FairWinds Perspectives study this past spring), filed a comprehensive lawsuit against Chinese cybersquatter Qian Jin, citing a host of violations related to trademark infringement and cyberpiracy. The lawsuit, filed in a San Francisco court, accuses Qian of registering dozens of Pinterest-related domain names, using a number of different ccTLDs and misspellings of the Pinterest brand name, and attempting to trademark some of the names in both the United States and China.

The domains were registered over a six-month period in the second half of 2011, as Pinterest was just beginning to really hit its stride and gain widespread popularity. According to the lawyers for the Bay Area company, Pinterest is just the latest company in a long line of social networks that Qian has targeted. The lawsuit refers to Qian as a “serial cybersquatter who has registered and owns hundreds of infringing domain names,” including some related to Facebook, Google, Twitter, and Foursquare.

The lawsuit seeks damages and an order preventing Qian or any associated parties from using the Pinterest name. Additionally, the company wants the trademark applications in U.S. courts for “Pinterest” and Pinterests” thrown out.

Although the practice of cybersquatting almost as old as the domain name system itself, squatters constantly seek new ways to capitalize on emerging trends or habits to make money. Cybersquatters like Qian, for example, are actively targeting rising tech companies that didn’t have the foresight to procure potentially valuable domain names when they first set up shop. This lawsuit will certainly be a lesson for Pinterest, as the company will want to ensure that they won’t have to spend this amount of time or money on similar cases in the future.

Other brands, especially those with explosive success like Pinterest, should look at this as a cautionary tale. Keeping tabs on your domain portfolio from the outset will save you from having to go through legal battles to prevent opportunistic third parties from benefitting off of and potentially tarnishing your brand.

Given Qian’s history of cybersquatting and Pinterest’s rights to the intellectual property in question, they should come out on top in this case, but legal battles like this are easily preventable with forward thinking.

Dollars and Sense

Posted on by jbourne

At this point, we all understand that for new gTLD applicants, new domain extensions do not come cheap, especially considering the $185,000 price tag just to submit an application. But what many have not yet come to terms with is the fact that even if companies did not apply for their own new gTLDs, there will be significant costs associated with the rollout of potentially up to 1,409 unique new extensions over the next few years. Continue reading “Dollars and Sense”

The Risks and Rewards of Social Media

Posted on by slevy

Does extending your brand through social media carry risk for your company? According to a recent article by eMarketer, many companies believe that social media is one of the top five sources of risk over the next three years, and the most popular social sites have the most potential for risk.

eMarketer analyzed results of studies by Deloitte and Forbes Insights in which American executives ranked social media the fourth greatest potential source of risk in coming years. 27% of executives surveyed named social media as a risk, placing it behind only the global economy, government spending, and regulatory changes.

In a separate study the Altimeter Group surveyed companies about which sites were potentially dangerous and how executives believe these sites could negatively impact their brands. Facebook, Twitter, and YouTube, the most popular social sites, were chosen as the three riskiest social media sites in that order.

In terms of specific concerns, companies named reputational damage as the greatest risk followed by release of confidential information and loss of intellectual property. The individuals surveyed by the Altimeter Group all deal with social media as part of their jobs, giving them an extensive knowledge of the specific risks associated with different social brands.

As social media continues to evolve, brands need to consider which, if any, specific sites could be beneficial. At its core, social media is a medium for companies to connect with customers and clients in an honest, open manner, bridging the gap in a way that was much more difficult without these sites. This open communication, however, also leaves companies vulnerable to a certain level of risk from critics and users looking to tarnish the reputation of a brand.

Using social media effectively can have a huge positive impact on brands in terms of awareness, media coverage, and public perception, but missteps can also prove costly. Companies shouldn’t fear entering the social space, but they should just make sure that they have the tools in place to use the medium in the most effective way – owning the right usernames and handles on the right platforms is the first step.

ICANN’s Line in the Sand

Posted on by jbourne

ICANN has long upheld the stance that its role, though critical to the everyday functions of the Internet as we know it, is very limited. In fact, on the Frequently Asked Questions page of ICANN’s website, it says the following:

“ICANN’s role is very limited, and it is not responsible for many issues associated with the Internet, such as financial transactions, Internet content control, spam (unsolicited commercial email), Internet gambling, or data protection and privacy.”

This delineation of what exactly it is that ICANN is responsible for and what it is not was stated again by its interim CEO Akram Atallah in a recent Reuters article about the deluge of public comments ICANN has received over who should operate certain religious gTLDs that were applied for as part of the New gTLD Program, namely .BIBLE, .ISLAM and others. While certain comments implore ICANN to make sure that these names do not fall into the “wrong” hands, Atallah told Reuters, “We don’t look into whether the Vatican has the right to the .CATHOLIC name. Hopefully, the process will get to a conclusion that is satisfying to the majority.” Continue reading “ICANN’s Line in the Sand”

ICANN Armageddon or Much Ado about Nothing? – Manwin v. ICM and ICANN

Posted on by jbourne

Some readers may remember hearing about a court ruling from last month that made some waves in the domain name space. The Central District of California District Court ruled that the lawsuit filed by Manwin Licensing, the owner of YouPorn.com against ICM Registry, the operator of the .XXX gTLD, could proceed, indicating that ICANN is subject to U.S. antitrust laws. Many assumed that this ruling would mean that new generic-term gTLDs would be subject to antitrust laws, and therefore would be open to antitrust lawsuits. FairWinds’ Counsel Steve Levy weighs in on this topic in a special post below. Continue reading “ICANN Armageddon or Much Ado about Nothing? – Manwin v. ICM and ICANN”

This Season’s New Hot Spot? WIPO

Posted on by slevy

According to an article in The Guardian, the number of UDRP decisions overthe rotecast 12 months is the highest figure since 2007.

Since July 2012, the World Intellectual Property Organization (WIPO) has decided nearly 3,000 cases of domain disputes. So far this year, the body has ruled on almost 2,000 cases and is on pace to surpass last year’s mark of 2,764, with one of the busiest decision-making periods of the year still to come.

The Guardian attributes this rise, at least in part, to the increasing importance of e-commerce, as a number of high-profile fashion houses have looked to WIPO to seize domain names this year. Armani, Burberry, and Dior are just a few of the brands that have filed multiple complaints with the organization this year in attempts to combat trademark infringement and the sale of counterfeit goods.

British Vogue reports that Gucci, for example, has already submitted six UDRP complaints this year, earning victories that resulted in the transfer of over 100 different domain names. Most of the contested domains employ similar combinations of the trademarked name and words like “cheap,” “sale,” and “shop” to try to maximize hits from Internet users looking for specific brands.

Most of the brands in question will not use the domains in question to sell goods or services themselves. They typically are seeking to prevent cybersquatters from using their trademarks for personal gain. As cases like the National Arbitration Forum’s (NAF), recent decision on the domain MyFakeOakleySunglasses.com show, however, only specific cases fall within the guidelines of a UDRP complaint. NAF ruled that, despite the inclusion of the Oakley mark and the obvious bad-faith use of the domain name, the inclusion of the word “fake” prevented the mark from being “confusingly similar” to users and qualified this as a case of copyright infringement, not domain dispute. Brands looking to win domains through UDRP complaints should consider WIPO and NAF their allies against cybersquatters, but they should also make sure they are correctly using the UDRP tool when they do so.

The current figures show that brands are becoming increasingly active in protecting their trademarks online, a trend that should only continue through the rest of the year. However, while there are some big opportunities to reclaim valuable names, it is unsustainable and unnecessary to pursue all opportunities. Brands should prioritize reclaim according to the value of the domain.

The Votes are In, but the Jury’s Still Out on Batching

Posted on by jbourne

On Thursday, ICANN will host another one of its New gTLD Program Applicant Update webinars to update applicants on topics “of interest” to them. One of those topics, of course, is the ongoing progress toward adopting a solution to resolve the issue of application batching/metering/sequencing once and for all.

Readers will remember from our earlier post, “Weighing in on Batching,” that FairWinds submitted a proposed solution during ICANN’s recently closed public comment window that followed the accounting principle, First In, First Out, or FIFO. Essentially, our solution relies on natural speed bumps and roadblocks in the new gTLD application evaluation process and puts more control in the hands of new gTLD applicants, rather than in ICANN to establish subjective delays. You can read more about our proposed solution in the post. Continue reading “The Votes are In, but the Jury’s Still Out on Batching”