What's in a name? Everything.com

In one of the biggest shake-ups in domain name history the Internet Corporation for Assigned Names and Numbers (“ICANN”) has approved a plan to increase the number of internet address endings known as generic top-level domains (“gTLD”).

Currently all internet addresses have to end in one of the 22 top-level domains, such as .com, .gov, and .org, or one of the country code top-level domain names such as .co.uk and .fr.

The new gTLD name system will allow for internet address names to end with “almost any word in any language, offering organisations around the world the opportunity to market their brand, products, community or cause in new and innovative ways” (ICANN). It may well change the way in which we search for information on the internet and looks likely to result in the registration of brand specific address endings such as .facebook or .nike, subject specific names such as .business or . football or geographic endings such as .london or .england. The sky really is the limit.

The gTLD system is set out in the Application Handbook. The Application Handbook is a detailed guide which sets out the criteria for application, including the 50 questions each applicant has to answer.

ICANN expects that the first round applications will open on 12 January 2012 and run to 12 April 2012. This round is intended for established organisations and applicants must provide in depth information about their organisation, all of which is set out in the Application Handbook.

ICANN could reject Domain name applications

ICANN reserves the right to refuse an application if it fails to meet the criteria and if the application form is incomplete or supporting documents are missing, the application will not be considered! The grounds for objection are:

• String Confusion Objection – the gTLD string is confusingly similar to an existing TLD or to another applied for gTLD string in the same round of applications
• Legal Rights Objection – the gTLD string infringes the existing legal rights of a trademark owner
• Limited Public Interest Objection – the gTLD string is contrary to generally accepted legal norms of morality and public order
• Community Objection – there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be targeted

If you’re thinking your business could benefit from a domain suffix, there are a few things you should be aware of. The first is that all new domain suffixes must be operational. The aim behind the opening the top-level space is to “allow for competition and innovation in the marketplace” (ICANN). Applicants will have to provide “a detailed plan for the launch and operation of the proposed gTLD. gTLDs are expected to be delegated within one year of signing a registry agreement with ICANN” (ICANN).

The Cost of registering a new domain with gTLD application

The second issue, and perhaps the most significant, is the cost of the application and registration. Those organisations wishing to register a gTLD will have to pay $185,000 for each gTLD applied for. A deposit of $5,000 will be required upon submission of the application and applicants may be required to pay additional fees in certain cases. There is also a $25,000 annual fee to continue to operate the gTLD and when more than 50,000 domain names are registered a transaction fee of $0.25 per domain name will be payable.

So whilst gTLDs may be the next big thing in internet domain name history, it looks like it’ll be reserved for the big brands of this world and those with significant financial backing as the costs will prohibitive for many!

Written by Shelley Marshall, a Solicitor in Nelsons' Commerce and Technology group.