Are You Ready for Designer Domains?

Much of the internet world is buzzing about the ICANN’s (Internet Corporation for Assigned Names and Numbers) decision to introduce what they are calling designer domain names.  What would be the drawbacks?  Would there be any benefits to gain at all?  Since these possible changes may impact your business in some way, this article will elaborate on a few of the important issues regarding the matter.

The ICANN Plan

1. If designer domains hit the market, they would permit an airline to purchase a domain name such as “.delta” or Nike could simply choose “.shoes”.

The Reception

The ICANN solicited comments from the domain name community as well as the groups who represent them, including the International Trademark Association.  By the end of January 2009, more than 1,000 comments had been gathered, many of them were rather critical of the ICANN for trying to dramatically shift the market too quickly.  Most of the fuss was over the outrageous expense as these new domain names are set to cost as much as $300,000.  Observers are questioning whether the move would prompt businesses to register domain names in defensive mode to protect trademarks and brands.  Many in the internet community are questioning if this is the right move in a time when businesses are struggling from a weak economy.  Others are worried that legitimate business owners will lose out to cyber speculators who buy designer domains just to hold auctions for them.  It is clear to see that the ICAAN would have to work out several kinks before going through with this huge move.

A Word to the ICANN

Before shaking up the domain name industry, perhaps the ICAAN should consider what impact the sudden shift would have on .com and other extensions that account for more than 90% of all domain name registrations.  Not to mentioned the 230 country code TLDs that have become so popular among businesses world wide.  Trademark owners have already criticized the ICANN for failing to provide security and rights protection mechanisms to prevent fraudulent and malicious registrations.  Many also question whether the astronomical expense is justifiable outside of the helping the ICANN recover the $13 million it racked up in expenses for its internet administration tasks.  In addition, security experts are stating that policing phishing and malware will be considerably more difficult with the implementation of these new domains.  Most importantly, registrants will not only have to worry about someone else registering their brand as a TLD, but the second level domain tied to it as well.

Right now, it is hard to determine whether the new designer domain names will be worth the risks and expense.  However, based on most of the comments the ICANN received, the internet community is not quite ready for such an impacting change.