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Username: Anne Gundelfinger
Date/Time: Tue, June 20, 2000 at 10:28 PM GMT
Browser: Microsoft Internet Explorer V4.01 using Windows 98
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Subject: The Addition of New gTLDs

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                I am Senior Counsel for marketing legal issues, as well as Director of Trademarks and Brands, for Intel Corporation.  I am commenting on several of the issues raised on the question of adding new gTLDs. 

First, it is not clear that there is a shortage of domain name space in the current gTLDs, and if there is, it is not clear that the shortage is serious.  While clearly a great many obvious domain names are already registered by someone, they are not necessarily being used.  Indeed, a great many such registrations are for the sole purpose of domain name resale (for a profit).  So many domain names that may appear to be unavailable, are in fact available for purchase from domain name arbitrageurs or distributors.  Moreover, there are still a great many "good" domain names to be had -- just because many of the one word generic domain names have already been registered does not mean there are no more possible names -- the various available combinations of words and word elements are still many.

Second, a go slow approach is appropriate, as recommended by the DNSO.  No more than 10 new gTLDs should be added, and preferably no more than 5 or 6, with only 1 or 2 completely unrestricted.  To the extent that there is a genuine need for more domain name space, more than doubling the gTLD space on this round seems unnecessary.  Limiting this round of additions to an approximate doubling of capacity will surely address the need for space in the short term (and perhaps longer), will allow for an orderly and not crippling expansion of capacity, will avoid the more extreme problems for trademark owners, and will allow ICANN and all participants in the internet infrastructure to learn from the experience before moving on to potentially more ambitious expansions of gTLDs.  Given that this will be the first expansion of the gTLDs since the "internet boom", there can be little doubt that there will be unanticipated problems, even with the addition of only a few gTLDs, and even with careful planning.  Let's do this round slowly, so that we can learn from it and implement the learnings in later rounds of expansion.

Third, the new gTLDs should absolutely be subject to the UDRP.  UDRP principles should apply to all gTLDs, regardless of whether open or restricted.  Of course the nature of a particular gTLD may impact the outcome of cases in that gTLD, but the UDRP should apply nevertheless.  The UDRP is proving to be an effective tool for resolving the most egregious cybersquatting problems and intellectual property infringements, while leaving the tougher legal calls to the courts and/or to negotiation between the parties.

Fourth, how to protect famous mark owners from another massive and expensive battle with cybersquatters?  This is a very hard question.  History has shown us that owners of famous trademarks are victimized by cybersquatters on a very large scale.  The volume is a big part of the problem.  Even the availability of the UDRP does not solve the volume problem for the famous mark holder, who is often faced with literally hundreds of cybersquatters.  So, some sort of mechanism to prevent squatting on famous marks is truly desirable, if a fair one can be found. 

A list of famous marks will not work and will not be fair, for reasons already debated.  It would be virtually impossible to develop, particularly on a global basis.  Moreover, it would unreasonably add to the cost and bureaucracy of the domain name infrastructure to ask registrars to implement such a list. 

While the last Sunrise proposal was flawed, I believe that there is the germ of a good idea there.  A sunrise (early registration) system would relieve the infrastructure of any obligation to "police" domain name applications.  Rather, allowing trademark owners to register their marks as domain names in advance of others has the advantage of leaving it to the mark owners to solve their own problem -- it is a self-help remedy -- for those that care, they can spend the money to register.  Moreover, if a sunrise registration period for mark owners were strictly limited to one domain name registration per mark in each new gTLD, then there would be no registrations by mark owners designed to prevent non-infringing registrations that constitute parody or free speech.  Nor could mark owners register variations that might be the legitimate marks of others.  For example, in a new .xyz gTLD, Intel would be permitted sunrise registration of only intel.xyz and pentium.xyz.  Intel would not be permitted additional domain name registrations based on the Intel or Pentium trademarks (e.g., intelsucks.xyz or pentiumsucks.xyz) during the sunrise period.  Rather, should Intel wish to register intelsucks.xyz in order to prevent someone else from doing so, it would have to wait until the general registration period, and operate on a first come, first served basis just like everyone else.  In short, only one sunrise registration in each gTLD should be permitted per registered mark, and the domain name would have to be identical to the registered mark.

And, of course, the sunrise period would have to be available only to marks that are in fact registered, at least in one country, and perhaps more.  It should not be available for registration of generic words as domains.  As these are generic words, another person's registration of them in new gTLDs would not constitute infringement or cybersquatting, given that there can be no trademark rights established in generic words, regardless of length or extent of use.

Moreover, no discount should be granted for sunrise registrations.  If trademark owners want to address the problem of cybersquatting by means of prophylactic domain name registrations (as opposed to use of the UDRP or reactive pursuit of legal remedies against squatters), then they should pay the fee. 

With the foregoing restrictions (and perhaps others) on a sunrise registration system for trademark owners, the protection granted to mark holders is very narrow indeed, and is unlikely to prevent non-infringing or fair uses of domain names that are not identical to registered marks.

Some have argued that a sunrise registration period for owners of registered marks disadvantages trademark owners who do not have registrations for their marks.  However, the goal of this system is to prevent cybersquatting, and in particular squatting on famous marks.  It is unlikely in the extreme that there are marks that are famous or even reasonably well-known that aren't registered somewhere.  And without relying on the existence of a registration, there would be no assurance that the claimed "mark" is not generic or otherwise unprotectable.  And finally those that claim trademark rights have equal access to the trademark offices around the world and can register their marks -- registration does not cost that much, and is well within the reach of even very small businesses.  A single registration in the U.S. generally costs around US$2000-US$3000, far less if use of outside legal counsel is minimized or eliminated.  Owning a trademark registration is not an unfair requirement to take advantage of a sunrise period.

Finally, at first blush, it may seem unfair to give anyone a sunrise period, particularly given the egalitarian culture of the internet and its administration.  This may seem doubly so when it is the lawyers (vile creatures!) that are pushing the idea.  However, there is a genuine problem here, not only for trademark owners, but for the participants in the internet infrastructure and for the users of the internet generally.  Cybersquatting is a drain on internet resources, is confusing to the public, is a very expensive problem for trademark owners, and serves no useful social purpose.  Allowing trademark owners a self-help remedy that is narrowly crafted and that effectively avoids the problem upfront makes loads of sense.  This is not preferential treatment -- its just the only way to effectively avoid the problem.  Further exploration of a sunrise period is merited.

Anne Gundelfinger
Senior Counsel, Corporate Marketing
Director, Trademarks & Brands
Intel Corporation
     
     

 


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