Opening of dot brand applications
10 January 2012
As domain name application period
opens law firm warns thousands of organisations will be left
vulnerable if defensive action isn't taken to protect their
brands
The application window for generic top level
domain names (gTLDs) officially opens on 12 January 2012, however
law firm Field Fisher Waterhouse LLP believes that many
organisations are unprepared for the forthcoming internet
changes.
Last year ICANN, the organisation responsible
for naming conventions on the internet, announced that between 12
January and 12 April 2012 organisations would have the opportunity
to apply for a gTLD of their own such as .pepsi or a generic term
such as .tennis.
Trade mark and brand protection partner
Leighton Cassidy says: "The programme
opens amidst a great deal of controversy and debate and has
provoked accusations of anti-competitive behaviour. One of
our main concerns is that many organisations have failed to fully
grasp the impact these changes will have upon their brand.
“The cost of applying for and running a
gTLD could be as high as US$500,000 plus and as a result many
brands will have opted out of applying. All applicants are
also required to submit a Continued Operations Instrument (COI),
which requires them to show there are sufficient funds for critical
registry functions in case of registry failure. In some cases this
could be as much as US$300,000. However, even if organisations
decide not to apply, they should not ignore the application process
altogether and it is crucial that a defensive strategy is put in
place to protect their brand's reputation and prevent other
organisations from registering their name. For organisations
with a vulnerable name – one that other individuals or brands also
use - it could be worth considering a defensive application.
"ICANN has been criticised for not doing
enough to publicise the introduction of new gTLD's.
Potentially this could mean a rush of last minute applications once
companies realise the marketing potential of an application.
Brands need to think carefully about how a new domain name will
actually add value to their brand before rushing into an
application and should be aware of just how difficult and costly
the application process is."
The system for application and the 3 month
time frame was initially based on projections of around 500
applications, however in December last year ICANN announced that it
was now expecting to receive around 1000 applications.
Leighton Cassidy continues: "There is a very
real possibility a last minute surge in applications will cause the
programme to be overwhelmed and therefore delayed by the
administrative burden of processing, however it's not all doom and
gloom, for major brands the costs and process will be less
prohibitive and a gTLD is expected to offer a number of benefits
including, increased brand profile and online security."
The window for applications closes on 12 April
2012 and ICANN has yet to announce when the next round will
commence.
.Brand Strategies - your organisation and the new domain
name system briefing paper >
For further information, please contact:
Paula
Nugent, PR Executive, Field Fisher Waterhouse LLP on 020 7861
4526
Louise Eckersley, PR Manager,
Field Fisher Waterhouse LLP on 020 7861 4120