[gnso-vi-feb10] VI in practice, Rights Protection Mechanisms, Registry Agreements and Variants of TLDs

[Frederick Felman <ffelman@xxxxxxxxxxxxxxx>]

All - 
> 
In a business discussion of single-registrant/branded TLD registries we came
upon an interesting but very plausible case that underscores the complexity
of TLDs and the importance of getting Vertical Integration (VI) right in the
context of rights protection mechanisms and registry agreements. Here¹s the
situation:

1. Brand is a company that is granted a single-registrant TLD for their own
internal purposes. 
2. Brand registers CompetitiveTrademark.Brand in their registry
3. CompetitiveTrademark holder files a UDRP against Brand and wins
4. CompetitiveTrademark holder demands transfer of
CompetitiveTrademark.Brand
5. Brand offers CompetitiveTrademark.Brand to CompetitiveTrademark holder
for a very high registration fee (say $1MM++/year)

CompetitiveTrademark holder might have used URS (if it were approved and
implemented) but they¹d then need to invoke this administrative procedure
annually.

If Brand transfers the name, they are no longer a single registrant TLD and
no longer fall into that category of exceptions.  If Brand leased or rented
that name to another and it was governed under a separate agreement Brand
would then have other contractual issues.

The current state of how registries & registrars work together to service
the public within existing TLDs is well understood and is largely functional
? and to a certain degree there are protection mechanisms that are able to
remediate disputes within that system, though many might argue to what
degree (MarkMonitor included).  Substitute IndividualName for
CompetitiveTradeMark and one can see how changes to these relationships
jeopardize the state of equilibrium in this system and may cause chaos that
could harm consumers and businesses.

I recommend that one of the subgroups of this working group focus on VI
models, abuse and whether proposed registry agreements and rights protection
mechanisms will function within the proposed models.

- Fred