Innovation

Domain Name Evolution

After having the same architecture for many years, the www internet domain names are evolving away from the well known .com, .co.uk, .org etc.

To quote Rod Beckstrom, President and Chief Executive Officer of ICANN (The Internet Corporation for Assigned Names and Numbers) “We have opened the Internet's naming system to unleash the global human imagination. Today's decision respects the rights of groups to create new Top Level Domains in any language or script. We hope this allows the domain name system to better serve all of mankind."

This decision by ICANN, to allow for a dramatic increase in the number of top-level domain name suffixes, will present new challenges for brands in the online space.

While concerns have arisen over the potential explosion of domain names – ranging from anything from .food (dot food) to .beer, the new generic top-level domains (gTLDs) are intended for more restricted use, most commonly the so-called .brand names.

According to a member of the ICANN board, “These are likely to have limited use and may not have any second-level names or limited use of second levels for regions or distributors (so UK.brand or distributor.brand).”

“The other use is for more open names where the applicant for the name intends to offer registrations at the second level. For example dot CITY, where you could apply for name dot NAMEOFCITY or dot EXAMPLE where you could get name.EXAMPLE.”

Major concerns

One of the greatest concerns regarding the introduction of new gTLDs is that of trademarks and potential abuse. Many legitimate trademark holders want greatest rights at the least possible cost, while many entrepreneurs (whether they hold trademarks or not) want open access and innovation.

To try balance these needs, the programme recognises new trademark protections, while still allowing innovation at both the top-level, as well as the second level (dot EXAMPLE and EXAMPLE dot newname).

According to ICANN, the financial impact is uncertain, but it is hoped that new and innovative services will be stimulated, also allowing for creative new business models, while limiting the use of these names by internet squatters, scammers and the like.

Strategic Choice

Organisations will need to consider if they are interested in applying, and if they stand to gain real value at the top level (on the right of the dot). It could add huge value to their brand, or support innovative products or services.

Trademark holders will have to have their trademarks protected, which will be done primarily through the new trademark clearing house, which will be created.

Counting costs

Applications for new gTLDs do not come cheap, and the $185 000 application fee will be a major hurdle for some organisations. Bear in mind that this fee is only for a new top-level domain and actually amounts to a very small fraction of the actual costs of running a new gTLD.

There is a programme under development by ICANN to support applications from needy applicants, most importantly from language, linguistic and cultural communities that are under-served in the current naming system (so non-ASCII scripts and non-Latin languages). This programme will be finalised before applications open and may involve some fee deferment and related support.

What does this mean for the average SMB, already trying to keep up with Internet technologies and marketing?
 

Today our advice is:

• Hold a watching brief. Costs are high, there will be no mass take-up for 2-3 years at least (lots of ICANN procedures to be implemented).
• Make sure that your website is kept up to date, so that future changes can be easily implemented.
• And importantly, keep in touch with your strategic IT Service Provider www.supporttree.co.uk