ICANN is considering expanding the domain name system and that has many business owners worried about their ability to protect their names. ICANN, which stands for the Internet Corporation for Assigned Names and Numbers, is the non-profit corporation that administers the internet's domain name system.
ICANN recently proposed expanding the top level domains (TLDs). Top level doman names come at the end of the email address or domain name. They include generic top level domains (gTLDs) "com", "net", "gov", "org", and "edu" are among the most common generic top level domains. There are also country code specific toop level domains (ccTLDs) that correspond to a country, territory, or other geographic location. ccTLDs include ca for Canada, uk for the United Kingdom, and au for Australia.
ICANN is considering allowing individuals to apply for new generic top-level domain names. Theoretically the additions will allow for more choice and freedom for content providers. ICANN needs to ensure that the plan would not create security problems by redirecting traffic to dangerous sites and consider whether “owners” of new top level domains would gain too much market power in a system that has been largely stabilized by the control of ICANN. For example if you registered “.company” you would have the ability to determine who should be able to obtain a domain at that extension and at what price.
Potential Company Responses
Many companies may purchase their names as generic top level domain names – not necessarily because they plan to use the domain name but as a defensive move so no one else can use their name on the internet. This can turn into an expensive strategy as ICANN estimates the cost for generic top level domain at $185,000.
Companies shouldn’t hoard dozens of domain names they don’t intend to use just because there’s a possibility that someone might use the domain name in an infringing manner. There are other options companies can consider.
For example, trademark owners can use the Uniform Dispute Resolution Procedure (UDRP) to cancel or claim an infringing domain name being used in bad faith. UDRP proceedings are designed to last fewer than sixty days which is faster than almost any lawsuit action will be. It’s a strategy placing more emphasis on defense but may ultimately be more cost-effective and make sense for some companies.
Of course, in order to rely on the UDRP, you must have a business name that is a protectable trademark. Not all names used in your business function as trademarks. I recently talked with Launch Wizards about choosing business names that qualify as trademarks.
(Thanks to Jonathan Phillips, Esq. who provided research assistance for this posting.)
