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Sharon Fisher

Staking a Claim for Internet Real Estate

Written by Sharon Fisher
11/8/2012 34 comments
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When the Internet Corporation for Assigned Names and Numbers (ICANN) took applications for new generic top-level domains (gTLDs), it reshaped the Internet from a place with a few familiar domain names (.com, .net., and .org) to one with potentially thousands, each with a $185,000 registration fee.

You may think this isn't an issue if you aren't interested in registering for domains. That process takes time. And even filing a protest costs $10,000.

Just as railroads claimed land that eventually brought them money and power, companies are laying claim to the Internet landscape. So far, it's 76 domain names for Amazon, 101 for Google, and 307 for Donuts, which doesn't actually make anything and appears to be setting up shop as a name broker.

Kelly McCarthy called this phenomenon "parking" in TheStreet.

A domain name is registered which includes a popular brand or common typo for that brand (www.buybrandname.com, or www.mybrandname.com), that Web site then displays links either to competitive products or locations where one can purchase products containing the brand name at issue. The domain owner typically receives "pay-per-click" revenue and affiliate marketing fees each time someone lands on the site and clicks on one of the links.

Trademark owners must determine whether their trademark is being used in a site name. You have always needed to do this for .com, .org, et al., but now you must do so for every possible domain -- and consider registering for them, too. Organizations like the Irish domain service Blacknight and Melbourne IT, Australia's oldest domain name registering service, are calling on ICANN to protect trademark holders.

"The new protections introduced by ICANN are not sufficient to avoid the need for organisations with 'high at-risk marks' to pay for defensive registrations for most of the new gTLDs," Melbourne IT told ITWire. "If we assume an organisation will need a defensive registration in 1,000 new gTLDs, at an average cost of $100 per year, this would equate to a cost of $100,000 per mark per year."

Also, the legal issues are arcane.

If you have a Website, you must see whether someone has registered a gTLD that might make it difficult for customers to find you. Say you're Sony. If there's now a Sony.USA, a Sony.Japan, a Sony.Products, a Sony.DVD, and so on, how do customers know which of these sites belong to Sony and which are imitators? You also need to determine whether a competitor has created disparaging sites, such as Sony.Stinks.

What about your industry or vertical? You'll probably want to figure out whether someone controls an industry domain such as .candy, .shoes, .jeans, or .cars. Imagine if Amazon or Barnes & Noble owned .books, if eBay or Amazon had the rights to .deal, or if Wal-Mart or Sears bought .bargain.

There are steps enterprises and midsized organizations can take. ICANN has published a list of all the requested extensions, and you can get more information here about each application.

It's too late to make a comment on the process, but you can file objections to specific domains. ICANN began accepting objections in June. A formal deadline for filing them has not been set, although the period for objections was scheduled to last for "approximately seven months." You can view others' objections -- for example, the Saudi government has objected to 163 gTLDs having to do with sex or alcohol. Independent evaluators will judge each objection.

You can submit and view feedback on the process. And you may wish to seek legal advice.

Finally, watch for ICANN announcements. The organization plans to update people on the process by Nov. 26.

We've seen companies buy patents, not to make products, but to prevent other companies from manufacturing them or to shake them down for licensing fees. I'd bet dollars to Donuts that this will happen with the expanded Internet world of gTLDs, too.

Sharon Fisher, @slfisher, is a veteran computer journalist who has been on staff at InfoWorld, CommunicationsWeek, and Computerworld. Her freelance work has appeared in numerous publications and online sites.

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Joe Stanganelli
Thinkernetter
Thursday November 15, 2012 11:53:18 PM
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Of course, one can't necessarily rely on Google's continued existence when it comes to TLDs.

Besides which, a TLD with your brand name or other certain keywords in it is huge for SEO.

slfisher
Thinkernetter
Wednesday November 14, 2012 11:42:16 AM
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Kim, we won't know until we see the first round of responses back from ICANN, which IIRC is at the end of the month. But it will be interesting to see how they do it. URLs have had a lot of trouble with trademarks because, while you can have a trademark in one area without infringing on another area, it's more difficult with a URL that doesn't have areas. 

slfisher
Thinkernetter
Wednesday November 14, 2012 11:39:41 AM
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True, but if you come up with 87 different sites with Sony in the name, it might be hard to find the "right" one. But yes, even with very simple URLs now, I've heard that some people Google it rather than typing in the URL. 

Incidentally, Google put in bids on a number of gTLDs itself.

kq4ym
IQ Crew
Wednesday November 14, 2012 9:04:32 AM
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It's all getting pretty confusing. I wonder what the ROI would be for parking names? I

n my experience in Google searches, it's often faster to just search for what you're looking for in lieu of typing in a brand name url.

I suspect Google may just be purposely and cleverly making a Google search the best and fastest way to find just the page you want vs. going to a brand url and then trying to leap through pages to find the exact thing you're really looking for.

mhhfive
IQ Crew
Tuesday November 13, 2012 8:29:19 PM
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@Joe,

The trick is that the "printed stationery" analogy doesn't hold because ICANN isn't printing anything.. They're just reserving virtual namespace for your brand... if you don't buy it, it doesn't exist at all. 

But somehow if someone else buys Coca-Cola, ICANN isn't liable for that infringement either..? IANAL, but maybe it's got something to do with Section 230 and secondary liability?

http://en.wikipedia.org/wiki/Section_230_of_the_Communications_Decency_Act

Kim Davis
Thinkernetter
Tuesday November 13, 2012 4:42:40 PM
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ICANN also purports to be refusing applications which would be deliberately confusing -- as in cocacola.xxx, a porn site.  Again, I don't know how well that's working.

Kim Davis
Thinkernetter
Tuesday November 13, 2012 4:41:26 PM
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ICANN has set up a process for trademark infringement claims.  It knows it can't infringe trademarks.  How well that process is working, who knows?

Joe Stanganelli
Thinkernetter
Tuesday November 13, 2012 1:23:26 PM
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To my mind, I don't understand how ICANN can do this without being liable for trademark infringement.

You can't just print out several reams of stationery with "The Coca-Cola Company" printed on them, and then tell Coca-Cola that you're going to sell them to anyone and everyone unless the company agrees to buy all of your reams for $185,000.

So how can they get away with it with TLDs?

Alison Diana
Thinkernetter
Tuesday November 13, 2012 9:20:59 AM
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No, I don't think anyone would believe CocaCola.xxx was the "real thing," but Coke certainly would want to own anything with the .Coke URL; it wouldn't want Pepsi or RC (are they still around?) to own that domain. It's just more confusion: Think of WhiteHouse.com vs. WhiteHouse.gov. I know I've typed that in by mistake; I'm sure I'm not alone! This opens the door to a much bigger set of problems for companies, especially those midsize organizations that simply can't afford either the $185K minimum cost of entry or the subsequent upkeep. 

Joe Stanganelli
Thinkernetter
Monday November 12, 2012 11:25:04 PM
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Personally, I don't really get the big panic and rush to scoop up the .xxx domains for brands, for fear of pornographers ruining their brand.

1) Pornographers were against the .xxx TLD too; they prefer -- and will always prefer -- mainstream TLDs like .com.

2) Is anyone really going to go to cocacola.xxx and, if it's a porn site, really think that Coca-Cola is now in the business of peddling smut?

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