ICANN approves proposals to expand generic top-level domain names | Practical Law

ICANN approves proposals to expand generic top-level domain names | Practical Law

ICANN has approved proposals for introducing new generic top-level domain names, under which applicants will be able to self-select their domain name so they can choose the one most appropriate for their customers. This proposed expansion of gTLDs is quite revolutionary when compared to the way in which ICANN has previously introduced new domain names, which has been on a gradual, step-by-step basis. It will be interesting to see whether it leads to an explosion in the number of gTLDs as some have predicted.

ICANN approves proposals to expand generic top-level domain names

Practical Law UK Legal Update 7-382-2978 (Approx. 3 pages)

ICANN approves proposals to expand generic top-level domain names

by PLC IPIT & Communications
Law stated as at 26 Jun 2008International
ICANN has approved proposals for introducing new generic top-level domain names, under which applicants will be able to self-select their domain name so they can choose the one most appropriate for their customers. This proposed expansion of gTLDs is quite revolutionary when compared to the way in which ICANN has previously introduced new domain names, which has been on a gradual, step-by-step basis. It will be interesting to see whether it leads to an explosion in the number of gTLDs as some have predicted.

Background

ICANN (Internet Corporation for Assigned Names and Numbers), the private non-governmental, non-profit-making corporation, is responsible for managing the domain name system, which includes allocating new top-level domains (TLDs).
There are currently 21 generic top-level domain names (gTLDs), such as .com, .org and .info, as well as country-code top-level domain names (ccTLDs), including .uk and .fr. The most recent gTLDs include .travel and .mobi, which were introduced in 2005 and 2006 respectively (see Legal update, ICANN approves .mobi sponsored gTLD).
Each gTLD has an operator or sponsor, and under each operator or sponsor there are accredited registrars. For a detailed discussion of gTLDs and the internet domain name system, see PLC Practice note, Domain names, generic top-level domains.
In 2005, ICANN's Generic Names Supporting Organisation (GNSO) began discussions and consultation on introducing further gTLDs. In its recommendations to the ICANN board in 2007, the GNSO identified a number of factors in support of further gTLDs, including demand from industry and the need for scripts other than Latin characters (such as Chinese and Arabic). It found that there were no technical obstacles to the introduction of new TLDs.

Facts

At its meeting on 26 June 2008, the ICANN board approved the GNSO's proposals for the introduction of further gTLDs.
Under the proposals, applicants for new names will be able to self-select their domain names so they can chose the one most appropriate for their customers. ICANN anticipates that applicants willl apply for targeted community strings, such as the existing .travel for the travel industry and .cat for the Catalan community, as well as generic strings like .brandname or .yournamehere.
There will be a limited application period when applicants can make an application that will go through an evaluation period. ICANN anticipates that there will be further opportunities to apply relatively soon after the first application round closes.
Trade mark owners will have the chance to object to an application, but trade marks will not be automatically reserved. Offensive names will also be subject to an objection-based process based on public morality and order, which will be conducted by an international arbitration body rather than ICANN itself.
The GNSO will now prepare a final version of its implementation plan for approval by the ICANN board, which it anticipates completing in early 2009. It hopes that it will be possible to apply for new names in the spring of 2009.

Comment

This proposed expansion of gTLDs is quite revolutionary when compared to the way in which ICANN has previously introduced new domain names, which has been on a gradual, step-by-step basis. It will be interesting to see whether it leads to an explosion in the number of gTLDs as some have predicted, given that some of the more recent additions such as .name have not been as popular as expected. However, according to ICANN's press release, consortia have already been formed for the establishment of city-based top-level domains such as .nyc (for New York City), .berlin and .paris; and the introduction of new scripts such as Chinese, Arabic and Cyrillic is likely to increase the use of the internet in the Middle East and Asia.
While the new gTLDs present clear opportunities for trade mark owners, they will also have concerns about the potential for an increase in cybersquatting.