Sir - I propose that ICANN itself tries to auction the second
level domain (SLD) under one of the possible new generic top-level domains (gTLD).
ICANN can auction the exclusive right to use the domain name for a limited time period
- lets say two years. When the license period terminates, ICANN is free to auction
the site anew. This was a small issue under the liberalization of the Norwegian country
code TLD (.no) this spring. The proposal was not adapted and the Norwegian Nic implemented
a first come, first served-rule without any limitations with regard to generic terms
and names.I am certain that this will generate revenues for ICANN. Popular generic
names under an attractive gTLD will have value even though the license is only for
a limited time period.
I also think that auctioning as a means of distributing
domain names also is a fair principle to follow. The market economy is based on such
a principle. The rationale is, that the person/entity that is willing to pay the
most for the domain name, also is the one that has the best use of it. The principle
"first come, first served" will, in my opinion, not work well when one introduces
new gTLDs today. The awareness of the value of attractive SLDs is so high, that one
can safely presume that many people will apply for the same name when a new gTLD
is being launched. It is not fair that a nano-secound shall be decisive when two
(or a thousand) persons apply for the same SLD.
There are of course some legal
issues that arise under such a system and that ICANN must consider. One is that ICANN
might, under some jurisdictions, be held liable for the licensee’s infringement,
based on its active contribution and its economic gains. However, I do not consider
this an decisive issue, mainly since generic terms enjoy little legal protection
under most jurisdictions. Still, there are examples that what is considered generic
in English is uncommon and considered as specie in e.g. Germany. Material, in my
opinion, is that ICANN under such a scheme distributes the name in good faith and
solely based on an objective criteria (the highest bidder).
Georg Panzer