Key-Systems Comments Re Specification 13

[Volker Greimann <vgreimann@xxxxxxxxxxxxxxx>]

Dear Cyrus,

thank you for providing us with the opportunity to comment on the 
proposed new Specification 13 to the Registry Agreement.
- We agree that it is appropriate that certain TLDs be classified as 
.Brand TLDs.
- We agree that a "cooling off" period prior to re-delegation may be 
appropriate, provided the beneficial use of Domain Names in the TLD 
remained limited to the Registry Operator and its Affiliates during its 
operation.
- The definition of .Brand TLD should however include one further 
requirement:
    "g. is not in itself a generic term and intended to be used for 
purposes defined by said generic term."
- The reason behind this being the potential for abuse of this new 
category due to possible existance of trademarks registered in one 
language that would not be registerable in another due to those strings 
constituting a generic term in the other language. If such TLDs would 
then be used in the sense of this generic term, this would create the 
ability to monopolize said generic term.
- We do not agree that there is a need to permit a Registry Operator for 
a .Brand TLD to limit its registrar use to one or more preferred 
accredited registrar(s), as no conclusive argument demonstrating a need 
for this permission besides cost savings has been proposed. We are 
convinced that the Registry Operator essentially has the ability to 
achieve this very result without any special permission by tailoring its 
eligibility requirements in a way that most registrars would find it 
unattractive to pursue or maintain an accreditation. Furthermore, as 
registrations in .Brand TLDs would be limited to a very exclusive circle 
of potential registrants, those registrants can choose the preferred 
registrar(s) for its registrations, which would result in no 
registrations amongst those registrars that are not preferred, thereby 
making the accreditation economically unviable.
- We further have great concerns however with regard to the potential 
consequenses resulting from the proposed ability of .Brand registries to 
extend registrations in their TLDs to "Trademark Licensees". As written 
"any written trademark license agreement with Registry Operator of its 
Affiliate" would be sufficient to allow the Registry Operator to grant 
the use to such licensees. This would allow a Registry Operator to 
simply grant a trademark license limited exclusively to the use of the 
domain name to whoever so desires. Essentially, such a licensee could be 
differentiated from a Registered Name Holder in an open TLD only in the 
of protections and rights he enjoys in an open TLD and the choice of 
registrars. Depending on the structure chosen by the registrant, any 
conceivably use could be permitted to any conceivable group of users 
under a limited trademark license, thereby completely circumventing the 
registry-registrar model.
Consider an open online marketplace that licenses its domain names to 
its sellers, creating shops on the platform of the marketplace under its 
Brand under a limited trademark license; consider the manufacturer of 
goods providing domain names to the users of said goods for value-added 
services and the ability of said users to present their use of these 
goods, granting a limited trademark license with each purchase.
Such uses are essentially identical to those of regular domain name 
registrations in open TLDs, but circumvent the registry-registrar model. 
This potentially goes far beyond vertical integration and grants a 
monopoly for TLDs that might also be open, but for one clause in their 
registration agreements that grants a license to use the trademark for 
this domain and its use.
We therefore oppose the inclusion of trademark licensees as eligible 
registrants in .Brand TLDs, unless the gaming potential can be 
eliminated by narrowing the definition of trademark licensees to exclude 
licenses granted only or mainly for the purpose of allowing the 
registration and/or use of the domain name.

--
Should you have any further questions, please do not hesitate to contact us.

Best regards,

Volker A. Greimann
- legal department -

Key-Systems GmbH
Im Oberen Werk 1
66386 St. Ingbert
Tel.: +49 (0) 6894 - 9396 901
Fax.: +49 (0) 6894 - 9396 851
Email: vgreimann@xxxxxxxxxxxxxxx

Web: www.key-systems.net / www.RRPproxy.net
www.domaindiscount24.com / www.BrandShelter.com

Follow us on Twitter or join our fan community on Facebook and stay updated:
www.facebook.com/KeySystems
www.twitter.com/key_systems

CEO: Alexander Siffrin
Registration No.: HR B 18835 - Saarbruecken
V.A.T. ID.: DE211006534

Member of the KEYDRIVE GROUP
www.keydrive.lu

This e-mail and its attachments is intended only for the person to whom it is 
addressed. Furthermore it is not permitted to publish any content of this 
email. You must not use, disclose, copy, print or rely on this e-mail. If an 
addressing or transmission error has misdirected this e-mail, kindly notify the 
author by replying to this e-mail or contacting us by telephone.