Over three years ago ICANN boldly announced that the top level of the domain name system would be opened up to new registry operators. As we now approach a likely spring 2011 launch, a number of key issues remain unresolved including how trademarks will be protected.
In my last post I discussed some questions that remain about ICANN's generic Top-level Domain (gTLD) budget. Today I discuss the rights protections mechanisms as they currently appear. An economic study commissioned ICANN to analyze the new gTLD process recently concluded that "the biggest likely costs" of approving new gTLDs are "consumer confusion and trademark protection."
New generic Top-Level Domains (gTLDs) appear to be headed for introduction next year, finally. That's a good thing for many ICANN constituents who have been waiting for them to become available. Important questions persist about how new gTLDs will affect ICANN and its constituents, however, despite a lot of effort to resolve concerns. Pressing those questions should not be taken as criticism of the basic wisdom of making new gTLDs available to many constituents under many circumstances. But too much is at stake not to get it right.
When I was on the ICANN board, we were dealing with the issue of Internationalized Domain Names (IDNs), an initiative to allow non-latin characters in domain names. Technically, it was difficult and even more difficult was the consensus process to decide exactly how to do it. Many communities like the Chinese and Arabic regions were anxious to get started and were getting very frustrated with the ICANN process around IDNs. ... When I joined the Open Source Initiative board of directors, we were also struggling with a similar, but slightly different problem.
Economists aren't very good at predicting things, as any one with money in the stock market can attest. The most powerful economist in the United States, the Chairman of the Federal Reserve, is on record predicting a continuing climb in housing prices -- just prior to their precipitous decline. And yet their crystal balls still hold some allure for those who need to present "evidence" about the future. Such is the case with ICANN and the new generic Top-Level Domain (gTLD) program.
ICANN has taken another crack at the question of the economics of launching new top-level domains (TLDs). The first report that the group commissioned on the subject was greeted by a loud and unhappy uproar. Now we have the preliminary draft of a new report, this one by professors Katz, Rosston, and Sullivan. It is insightful and analytic, but the final version needs to consider the theoretical and empirical issues...
Over the past couple of years I have had the opportunity to talk to US policy makers and have seen how ITU and ICANN have emerged as proxies for a much wider diplomatic dispute over who is going to control cyberspace. The Internet is now the engine of the new global economy. It is a communication infrastructure. Both have been correctly regarded as national security interests of the very highest level of priority. Some of the participants in the ICANN/ITU world are former participants in arms limitation circles. Their mode of thinking is illustrated by the frequent use of phrases such as 'why would we give up...'.
The Coalition for Internet Transparency (CFIT) filed an anti-trust suit against VeriSign for their monopoly control of the .COM registry and the expiring market of .COM domains. The claims were many including excessive financial pressure lobbying and lawsuits to force ICANN into renewing the VeriSign .COM agreement under very self-serving terms. ICANN inevitably was paid millions of dollars to settle the suit. However, the saga continues once again. ... In the light of continuous and relentless discussions and proposals by the Vertical Integration working group, one question is in the back of everyone's mind. Could the decision on Vertical Integration backfire on ICANN and invite similar suits in the domain name space?
So we finally have a signed root zone. Now when is someone going to answer the question I first asked over five years ago and have still not had an answer to: How do the domain name owner's keys get into the TLD? Before we have a system people can use there have to be technical standards, validation criteria and a business model. Where are they?
With the launch of new generic Top-Level Domains (gTLDs) expected to occur early next year, many are closely examining the opportunities and risks associated with ICANN's Program. Although still in draft format and subject to change, keep these gotchas in mind as you think through your strategy.