Home ICANN Page 13

ICANN

What If a Domain Registry Shuts Down?

I saw a thread on a .Mobi domain discussion forum that posed the question, “When will dotMobi shut down?” I know discussions about certain domain extensions are always hot button topics, so I want to refrain from the discussion about specific extensions. However, I want to ask if you have ever considered what would happen to your domain names if a registry were to shut down? I’m not talking about a registrar like RegisterFly.com, but a registry that manages an entire domain extension.

Think this is far fetched? Apparently there were issues related to the company that operated the .Travel registry, and with the potential for a significant amount of gTLDs possibly forthcoming, I believe this will be an eventual issue that domain investors need to consider when purchasing domain names. John Levine discussed this in a blog post back in 2007:

“Given how small .travel is, the resolution is less important for what happens to this particular domain than for the precedent it sets. If ICANN ever comes through with all the new domain names they’ve been promising for the past decade, sooner or later some domain will do a bubble, get wildly successful while firmly cash negative, then run out of money and pop with a million registrants in limbo. That’ll be fun.”

I am in complete agreement with what Levine said above. I’ve received a number of press releases, Facebook fan page requests, and other emails indicating that there will a ton of new extensions. Some potential extensions right now include .horse, .eco, .sport, and even .zulu, mentioned by ICANN CEO Rod Beckstrom.   In my opinion, it is likely that there will be gTLD extensions that fail due to financial circumstances.

I don’t see a reason why anyone would want to operate a money losing registry, and this could happen if an unpopular gTLD extension is approved and it isn’t embraced by the public. This could be especially prevalent if consumer adoption of gTLD domain names isn’t as quick as many people hope.

When you buy domain names, have you ever considered what will happen if a domain registry shuts down due to a financial problem? This is another good reason for you to become knowledgeable about ICANN. Andrew discussed it before, I and I want readers to be aware of the potential issue.

Message from ICANN CEO Rod Beckstrom

1

ICANN LogoNewly appointed ICANN CEO Rod Beckstrom posted a message today on the ICANN website with updates on a few key topics. Beckstrom discusses IDNs, DNSSEC, New gTLDs, and the future of ICANN and the Internet (albeit briefly).

Regarding the new gTLDs, Beckstrom notes the original memorandum of understanding with the US Government from 1998, which stated, “Oversight of the policy for determining the circumstances under which new top level domains would be added to the root system.” New gTLDs are definitely going to be introduced, and I hope ICANN is prepared to handle everything associated with new companies entering the registry business.

In the message, Beckstrom cites a letter from the chief of the Zulu tribe who intends to move forward with the .Zulu extension. It’s great that this could open the Internet to groups who want to manage gTLDs, but I can’t   imagine enough companies wanting .Zulu domain names to run a viable business on .Zulu. Hopefully there will be plenty of measures in place in the event that a registry fails. I digress because it’s not really the point, but there are a whole host of issues to consider.

Anyhow, I applaud the openness Beckstrom is showing, and I hope to see it continue.

ICANN Meeting in New York on July 13

1

ICANN LogoI just registered to attend the upcoming ICANN gTLD meeting in New York City on Monday, July 13, 2009. There is no cost to register for the event, and I recommend that domain owners in the New York area attend the meeting.

This may be the last chance to express your opinion, as a domain name owner, about the IRT and URS proposal. At the very least, it’s a good opportunity to meet ICANN leaders and learn about how ICANN works.

Here are the details for the NY Meeting:

Date: July 13, 2009
Time: 9:00am – 5:00pm
Location: Hudson Theatre, Millennium Hotel – (145 West 44th Street, New York, NY)

If you can’t make it to the NYC meeting, other meetings are scheduled for locations around the world, including London (July 15, 2009), Hong Kong (July 24, 2009) and Abu Dhabi (August 4, 2009). Again, it’s free and easy to register online.

IRT Report & URS Comments

0

If you own a domain name, I implore you to read the IRT Proposal to form your own opinion of its contents. If you have any issues with it, please take a few moments to write a comment to ICANN – today is the final day to make your comments heard. You can also read other comments that were submitted.

It is my opinion that the Uniform Rapid Suspension System is dangerous to domain owners, and I submitted an email comment explaining why I believe this. The only way for my opinion to be heard is via the public comment forum, and I wanted ICANN and those who follow ICANN to see (and address) my issues.

While the odds are great that a URS dispute won’t be filed against a domain name you own, it is very likely that one will be filed against someone who owns a generic domain name. Now is the final opportunity to provide your comments about the proposal – not 6 months or a year from now when a legitimate domain name or website is taken offline by an overzealous trademark attorney.

As I stated in my submission, I do believe the intent of the proposal is good, and it probably won’t impact the majority of ordinary domain owners and small businesses such as mine. However, just like there are domain owners who don’t take the legal/ethical high ground, I believe there will be trademark interests who use the URS as a way to secure domain names in a less expensive manner than direct acquisition. For those domain names and owners that become targets, fighting URS complaints will be a very costly endeavor.

It’s likely that it won’t be your domain name that is targeted, but if you are unlucky and a large company wants your domain name, the costs associated with defending your rights could be very high.

Take some time this morning to read the report. You can also read Mike Berkens’ comments and read more information from Ron Jackson. Rick Schwartz has also weighed in as has George Kirkos. Comments from the Internet Commerce Association are also available online. Now is the time to form an opinion and make your comments known. The trademark and IP attorneys have spoken, and now is the time for domain owners to voice their opinions.

WIPO Wants Registrars Held Responsible

I was reading Mike’s Blog today about WIPO wanting domain registrars to be held responsible for their registrants’ trademark infringing domain names, and I give it a thumbs up.   In fact, I said the same thing back in March of 2008, “Registrars Should Help Prevent Cybersquatting.”

I believe that many people register domain names that have trademarks in them without really knowing the risks involved. When I first started buying domain names circa 2003-04, there were a few trademark names that I purchased.   I didn’t know the legalities of this, and when I found out, I canceled the few that I owned and bought back a few that I had sold, and cancelled them, too.   Although the likelihood of getting sued for names I created out of thin air was small, I didn’t want to deal with them.

I do understand why some companies invest in trademark domain names that receive traffic and generate revenue. It’s a business decision that some companies have to make, but in most cases, new registrations are way more of a liability than a profitable business.   I cringe when I see names for sale on Ebay like MicrosoftProductDownloads.com (or something similar), because they are screaming at Microsoft to file a lawsuit (this one happens to be unregistered). I attribute some of these new registrations and sale attempts to people who aren’t aware of the legal ramifications and liabilty a name like this can have.

I think the domain registrars should be a bit more responsible when it comes to names that are obvious trademarks.   Sure, there is a considerable gray area, but if they were required to warn registrants about potentially infringing domain names (like the Surgeon General warns smokers), there would be a lot less cybersquatting – and consequently less revenue for the registrars.

Upon further review, back in July of 2007, when I first started blogging, I said the following, and I still agree with it today (aside from the term “crime” as it’s not technically criminal).

In my opinion, a majority of trademark inclusive domain names aren’t owned by malicious people, but rather those who don’t know it is against the law. As a measure against unlawfully registering a domain name with a trademark, what if registrars required consumers to check off a box acknowledging that they are aware of the Lanham Act and its penalties before every registration? Perhaps even a brief summary of the law along with the possible penalties of owning/selling/profiting from a trademarked name would act as a deterrent to people who may be unknowingly committing a crime.

I believe the sooner we police our industry, the better things will be for us all.

ICANN Issues to Be Concerned About

2

Mike Berkens has written three interesting posts that are important for all domain owners to read and understand. When you have an opportunity today, please read Mike’s posts and the accompanying commentary. The issues that are discussed could potentially impact all domain owners

ICANN Releases New gTLD Guide Book: Still Includes No Price Caps: Your Domains Are At Risk

ICA: Trademark Holders Attempting To Greatly Expand Their Rights Through The New gTLD Process

Thinking About Applying For Your Own gTLD? It Could Cost You A Lot More Than $185K

The Internet Commerce Association is working on some of the issues, but I know they need our support (if you own a domain name, you are part of the collective “our”).   As soon as my tax bills are taken care of in a month and a half, I will be making my annual contribution.

Recent Posts

Escrow.com Announces 2023 Master of Domains

1
During the NamesCon conference today, Escrow.com announced its Master of Domains winners. The annual award celebrates "the highest grossing domain name brokers for deals...

How to Buy a Domain Name That is Owned by Someone

1
For a domain investor, buying a domain name is second nature. Investors hand register domain names, purchase domain names via expiry and private auctions,...

My 2023 Domain Industry PMC Jersey

0
For a number of years, I have created a domain industry Pan-Mass Challenge jersey to raise funds for Dana-Farber Cancer Institute. Many domain industry...

Chat.com Profitably Resold for 8 Figures

0
In March of this year, I reported on the sale of Chat.com. The domain name was acquired by HubSpot Co-Founder Dharmesh Shah for more...

First Look at my 2023 Domain Industry PMC Jersey

1
This August, I will be riding in my 10th Pan-Mass Challenge ride to raise funds for Dana-Farber Cancer Institute. I will be riding...