Last week, I blogged about an overview of the gTLD opportunity. This week, I wanted to outline the application process and intellectual property issues associated with the development.
Application Process
- The first application window is expected to open in the summer or fall of 2011. No firm date has been set, but once the window opens it will remain open for several weeks at a minimum.
- In the application, applicants will be required to demonstrate their financial ability to establish and administer a stable and secure gTLD Registry, as well as the integrity and trustworthiness of the applicant entity and its directors, officers, partners, and major shareholders.
- Applicants will also be required to demonstrate a clear understanding and accomplishment of some groundwork toward the key technical and operational aspects of a gTLD Registry operation.
- Applicants also must provide a business plan outlining the operational details of the Registry
- Once the application has been filed, it will be subject to initial ICANN review, as well as public comment and third-party objection. Extended evaluation may be necessary in some situations.
- In the event that one or more parties applies for the same (or confusingly similar) gTLD, the final contention resolution procedure is auction.
- If the application is approved and all objections and contentions are overcome, the applicant will enter a Registry Agreement with ICANN the gTLD will be delegated after a pre-delegation technical check (please note that the Registry Agreement has not yet been finalized, but a draft version is attached hereto for your review).
- The time from application to delegation can range from 8 to 20 months depending on the obstacles faced during the review process.
Application and Administration Costs
- The initial application fee is expected to be $185,000.
- Partial refunds from 20-70% will be available in some circumstances.
- Additional fees up to $50,000 may be necessary if the application enters extended review.
- Once the gTLD is delegated to you, fees of $6250 will be due quarterly.
- These costs do not include the capital investment necessary to run a stable and secure Registry.
Protection of Intellectual Property
- There are two levels of trademark implications associated with the new gTLD program: trademarks appearing in new gTLDs, and trademarks appearing in second level domain names under new gTLDs.
- Protection of trademarks in new gTLDs (e.g. third party files application for “dot-dlapiper” gTLD):
- The rights protection mechanism for new gTLDs is objection based
- After the initial application period, a list of all proposed new gTLDs will be published
- After publication, interested third parties will have a 5-6 month window to object
- Objections will be lodged with a dispute resolution service provider, such as WIPO
- Objections will be decided based on the WIPO Rules for New gTLD Dispute Resolution (similar to UDRP proceeding) which are still in draft form
- The estimated cost to see an objection through to completion is $1,000-$5,000
- Protection of trademarks in second level domain names (e.g. third party registers “trademark.newdomain”).
- The rights protection mechanism for second level domains under new gTLDs is at the discretion of the new gTLD Registry
- However, all new gTLD Registries will be required to offer dispute resolution under the UDRP at a minimum
- ICANN is also considering creating a Trademarks Clearinghouse, through which rights-holders would be protected from cybersquatters during the sunrise period associated with newly delegated gTLDs
In the next post, I will discuss a high level list of opportunities and risks associated with the gTDL application process.