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New Top Level Domain Names in the Horizon
August 20, 2008

Any entity meeting basic criteria may soon apply for and operate its own top-level domain name (TLD) under an “open” framework policy instituted by the Internet Corporation for Assigned Names and Numbers, otherwise known as ICANN, starting the second quarter of 2009.

In the interests of Domain Name Expansion, any qualified entity may apply for any TLD, such as .yahoo or .msn, instead of using any of the 21 presently available generic top-level domain names (gTLDs), such as .com, .net, and .org, or country-code top-level domain names (ccTLDs), such as .ph or .us. New TLDs composed entirely of non-Latin characters will also be allowed. Likewise, the ICANN policy provides no predefined limit on the creation of new gTLDs, nor how many applications ICANN may entertain.

The newfound freedom to create virtually any TLD may become an area of concern for brand owners as it may lead them to become more vulnerable to trademark rights violations such as cybersquatting, or the practice of registering a trademark in bad faith in order to profit by selling the registered domain to the trademark holder. Under the new policy, ICANN is set to resolve potential conflicts under an objection-based system where trademark owners must vigilantly monitor applications for TLDs so that they can object to those that could violate their rights.

The policy for expanding domain names is one in a series that were adopted by ICANN during its 32nd Public Meeting held in Paris, France from June 23 to 26 earlier this year. Around 1,600 attendees from over 150 countries attended a 4-day assembly which also resulted in the adoption of restrictions on the applicability of a domain name registration grace period as well as commencing the implementation of a 20-cent transaction fee for all domains registered in order to curb the practice of domain name tasting. Domain name tasting, which has been linked to the practice of cybersquatting, is the practice of registering domain names and removing them within the 5-day grace period given after registration to avail of the registration fee refund.

The upcoming application for a TLD with ICANN should not be confused with the application for a domain name under a gTLD which ICANN has delegated to accredited domain name registrars or under a ccTLD, which is controlled by the respective countries’ designated managers. 

To read more on domain names and the ICANN, you may refer to a previously posted article entitled What’s in a Domain Name? on the BNU IPViews archive.

Source: INTA Bulletin, Vol. 63 No.14, August 1, 2008

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