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Username: register.com
Date/Time: Mon, July 10, 2000 at 11:22 PM GMT
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Subject: REGISTER.COM COMMENTS REGARDING NEW TLDS

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                Register.com strongly endorses the introduction of new TLDs into the market.  The industry's priority should be to generate more generic domains in order to help alleviate the current shortage of names with .com, .net, and .org.  New TLDs will reduce the dominance of .com, and give customers more choices, all of which ultimately promote the new competitive environment in the domain name industry.

We support the controlled introduction of new robust and useful TLDs, both general and special purpose, into the market.  Introduction of new sponsored or chartered TLDs will help individuals and businesses categorize themselves online, helping users find the services and information they need more easily.

It is critical for all accredited registrars to be able to provide registration services for any of the new TLDs introduced, whether they are general or special purpose TLDs.  All accredited registrars should have equal access to the registries for the new TLDs in order to compete in this space.  As stated above, competition ultimately benefits the end users by giving them more choices, better prices and better service.


Principles for Introduction of new TLDs: need to maintain stability: Q1-7

Coordination with the Internet Engineering Task Force, the Internet Architecture Board, and others is useful, and Register.com is also available to participate in such coordination.  The key for launching new TLDs is to authorize new servers for the new TLDs to promote true competition among registries.  The maintenance and operation of the name servers that respond for new TLDs should be distributed across several entities and geographic regions.

In the initial phases of registration, the foremost issue is to ensure replication of registration information.  The priority should be ensuring against the mass loss of service if the name server infrastructure that supports new TLDs is not reliable.  An additional focus should be on accuracy.  Registrars cannot exist unless the registry is absolutely accurate.

To eliminate or reduce stability concerns, accredited registrars should participate in a consulting committee to address issues as implementation begins.  Furthermore, there should be a test period for the name server replication scheme as well as how the zones are generated. This could be done by adding these new TLDs to the root, and for a test period limiting the number of new domain names, and the content associated with those names. 

The number of new TLDs introduced will not affect stability.  A controlled phased roll out can minimize stability concerns.

Introducing new TLDs on a trial basis or reversing their introduction is not feasible.  There are no adequate ways to make registrants whole after they have begun operating on a service.  Additionally, the impact to name servers worldwide, as well as to the root servers, is far too significant to allow this to happen. 

Characteristics in new TLD and sponsoring organization:

(a) Expand domain space:  New TLDs should be broad enough to be useful to a broad registrant constituency.  The goal is expansion of domain space.  We recommend introducing several TLDs, at least one of which will be general.  Any chartered or sponsored TLD should be useful for broad categories of registrants.
(b) Independence and transparency of registry:  The sponsoring organization must be independent of any registrar or other registries.  It should operate in an open and transparent manner and be regularly audited for compliance with ICANN rules and policies.
(c) Long term feasibility:  The organization must provide a scalable, highly available, multiply redundant infrastructure in order to support TLD changes.   The reliability and infrastructure of the set of organizations managing the name servers authoritative for these TLDs are critical.
(d) Capital and management: The sponsoring organization must have the financial and managerial wherewithal to ensure long-term stability of the new TLDs.


Well-controlled, small-scale introduction: Q8-16

The Internet has grown exponentially faster in recent years than it had in the 1980s.  The previously relatively slow pace for introduction of new TLDs will not be adequate under current circumstances.  While roll out of new TLDs should continue to be measured, it must proceed promptly and in a streamlined manner to support current Internet needs. 

TLDs were initially granted to a monopoly registry operator (and a monopoly registrar).  The result was high prices, lack of consumer choice and inadequate customer support.  Introduction of competition in the registrar arena was an important innovation, benefiting the end consumers.  New TLDs should be operated by competitor registries, with equivalent access guaranteed to all accredited registrars.

Additionally, we have learned that ICANN needs adequate resources from its constituencies to appropriately support and regulate TLDs.  As additional TLDs are launched, ICANN’s resources must grow proportionately to ensure the stability of the system.

Stability can be ensured with a controlled roll out of a number of new TLDs.  An equally important goal for the roll out is expanding the domain name system to facilitate the growing demands of the Internet.  Steps that slow down the roll out of domain space inherently undermine the goal of increasing Internet usability, and thus should be taken only if they are necessary and likely to achieve their goal. 

In evaluating new TLDs, we support the listed factors, as well as ensuring that:
a) the new TLDs will include at least one additional general TLD to meaningfully increase available domain name space for a significant number of users and create competition to .com;
b) the sponsored or chartered TLDs will be useful for broad and robust categories of businesses or individual consumers; and
c) the root servers should recurse for the new TLDs.

There should be a fixed deadline for all steps of the roll out process in order to provide a level playing field for all registrars and help promote consumer confidence.   Moreover, it is important for the business planning of the many companies around the world that are building new TLDs into their business plans to be able to count on a reliable roll out schedule.


Purpose for adding new TLDs: Q17-24

We support competition in domain name registration services since .com enjoys unparalleled market advantage.  This gives the registry operating .com, .net, and .org significant market power that could be exploited to the disadvantage of competitive registrants and consumers. Registries should be operated by independent competitive entities in order to minimize the risk of abuse of the public trust. It is important to roll out new TLDs as quickly as possible to provide meaningful consumer choice.

New TLDs would not lead to confusion. There are currently over 250 ccTLDs, which does not confuse consumers. The roll out and operation can be managed in a manner to help avoid any potential confusion. The number of new TLDs should be determined by the need to expand available domain name space. At least one new fully open TLD should be introduced in order to sufficiently expand domain name space.


Single-character domains would be problematic.  This would cause confusion because it would be closely related to real domain names and TLDs. 


Enhancing the utility of DNS: Q25-33

The domain name system is very important to the value and stability of the Internet.  Domain name space needs to be increased to accommodate the global growth of the Internet.  There is concern that the current TLDs are running out of domain name space.  We support the introduction of both unrestricted and restricted TLDs, as long as they permit broad and robust expansion of the domain space. 

The first three principles outlined in the second additional consensus point of WG-C's 17 April 2000 supplemental report are appropriate guidelines for TLD introduction and support introduction of new open TLDs.  Additionally, new TLDs should be operated by independent competitive organizations that bring meaningful competition to other registries, and which are equally accessible to all accredited registrars.

ICANN should have an open competitive process to determine how and to whom to grant new TLDs.  This evaluation process should be predefined and ensure transparency, fairness, and the choice of the best managers of the new TLDs.  There should be a set period and deadline for evaluating proposals in order to fairly compare the various proposals, and to complete the process in a prompt manner.


Enhancing the number of available domain names: Q 34-35

There is a shortage of desirable and useful domain names.  The industry's highest priority should be to generate more generic domains in order to help alleviate the current shortage in .com, .net and .org.  New TLDs will reduce the dominance of .com, and provide customers with more choices, which promotes the new competitive environment in the domain name industry

The key considerations for managers of new limited purpose TLDs should be those organizations’ technological, managerial, and financial stability; their independence and transparency; the organization’s provision of equal access to that TLD by all registrars; and the integrity of their management practices.


Policy for special-purpose TLDs: Q 36-39

Introduction of new sponsored or chartered TLDs will help alleviate the domain name shortage and help individuals and businesses categorize themselves online, ultimately helping users find the services and information they need more easily.  Like in the case of open TLDs, the sponsoring organizations of new limited purpose TLDs should not have a financial interest or other partnership-type interest in a competing registry or in a registrar.  Their procedures and management should be public and transparent.  They should be audited on a regular basis.  They should provide equal access to all competitive registrars.  There should be a complaint process to file with an oversight organization. 

Oversight of the sponsoring organizations would be promoted by instituting a process by which ICANN would address complaints from registrars and end users.  There should also be a periodic audit with publication of results of such audit that reviews management policies, financial stability, and technological stability and scalability.  The organization must be prohibited from using its registry power to compete in the primary and secondary domain registration markets, the e-service markets, and other such partnering activities.

The provisions of the charter, both as to who may register and what activities may be conducted there, must be clearly spelled out.  The charter must be subject to review and approval by ICANN.   The charter should also provide an effective mechanism whereby the sponsoring organization may receive and promptly act upon complaints, whether from registrants or third parties, alleging violations of these requirements.  The compliance mechanism established by ICANN should monitor the effectiveness of these provisions in operation and also provide a medium for complaints when they do not operate as contemplated. 


New TLDs to meet new types of needs: Q 40

We believe that current mechanisms, such as the UDRP, provide adequate IP protection.


Start-up challenges and IPR: Q 41-48

The benefit to businesses and consumers outweighs the potential detriment to trademark holders and brand-name owners.  Registrations should be on a first-come, first-serve basis so that no registrant is unfairly disadvantaged.  Intellectual property holders can be adequately protected by the UDRP, which should apply to new TLDs.

Neither should introduction of new TLDs await the adoption of a trademark list.  There is no working comprehensive trademark list in place, and no clear expectation of having one in any reasonable period of time.  Even if one were in place, relying on any such list would pose the risk that some trademarks would be inadvertently omitted, and thus their owners left out of the exempted protected class.  The better solution is to use the UDRP and such mechanisms to efficiently address concerns and protect the trademark owners.


Suggested Schedule for new TLDs: 49-52

The schedule provides two months to enter applications.  This is a long period of
time.  Moreover, interested organizations have been more than aware for
months prior to the suggested date of the call for proposals to be able to
adequately prepare their proposals. 

There should be more than one week for public comment.  The TLD document
for Yokohama was posted approximately a month prior to deadline for public
comments.  The actual proposals, likewise, require several weeks for the
public to be able to analyze and comment.

The public should not be precluded from reviewing proposals as soon as
possible in order to allow for full consideration and comment.  Therefore, the
proposals should be posted as they are received. Proposing organizations can
always avoid giving their competition an early look at their submissions by
deciding to wait until the deadline. Formal applications should be posted in full.


Suggested data elements to be sought from organizations applying to sponsor
or operate TLDs: Q 53-57

We support expanding domain name space in order to support the rapidly
growing needs of global commerce and the Internet community.  Therefore, we
support numerous TLDs and multiple registries.

TLD labels should be proposed by applicants.  ICANN is capable of choosing
among various proposals for TLD labels.  ICANN can also amend proposals.  The
benefit of allowing TLDs to be proposed by the applicants is the additional innovation that arises from intellectual competition.  Moreover, ICANN would be in a position
of impartial arbiter, rather than appearing to favor any one constituency.

The appropriate length for TLD codes should be 2-5 characters including the ‘.’

We are willing to join a task force with members of the other DNSO
constituencies to devise principles and guidelines for evaluating the appropriate organizations to manage the new TLDs.  As for the choice of language, non-English TLDs should not be favored to the disadvantage of English.  The most ubiquitous language on the Internet is English, so that English-based TLD labels will continue to support the needs of the largest percentage of web users. 

The important issue is not how many new TLDs are introduced, but that the quantity and quality is such as to meaningfully expand domain name space and offer competition to .com.  Therefore, there should be at least another general TLD in order to meaningfully open the .com space.  ICANN should not consider TLDs that are confusingly similar to, or derivative of, .com in order to avoid confusion and enhance competition in registry services.

Other structural factors that ICANN should consider are:

(1) provision of an equitable and efficient dispute resolution procedure;
(2) accessibility of the new TLDs to all accredited registrars;
(3) cooperation with ICANN compliance mechanisms;
(4) value added to the goal of opening competition among registries and
TLDs; and
(4) independence of registries from each other and non-competition within primary or secondary registration markets.


Information about the proposed sponsor and operator of the TLD: Q 63-69

ICANN should not preclude proposals from companies formed/forming for the purpose of operating or sponsoring a new TLD.  In order to evaluate such applicants, ICANN should review:

(1) their business plan, operational guidelines, and policies;
(2) their financial backing and working capital;
(3) officers and key employees (integrity, familiarity with the Internet,
ICANN, and the domain name system);
(4) independence from companies operating or managing current registries
and registrars; and
(5) Compliance Review. The company must propose a system by which it will
comply with ICANN verification and compliance mechanisms.

The key positions should be filled.  Although, if any is unfilled, such absence should be evaluated against the applicant’s plan for filling it, and the company’s plan for addressing the void through other means.  ICANN should evaluate officers and key employees in relation to their relevance/ability for the company’s fulfilling the ICANN guidelines for a qualified company.  ICANN should also disqualify companies whose management or controlling interests have conflicts of interest or otherwise undermine the company’s ability to run an independent, transparent registry.

There should a minimum capital requirement for all registries, based on the need to comply with ICANN requirements and guidelines and support stable, uninterrupted and scalable management of the new TLD.

ICANN should be open to any business model, as long as such registry does not compete in the registrar or secondary market. 

Measures to protect registrants from the possibility of a registry operator’s business
failure include:

(1) sufficient working capital;
(2) technical ability among employees;
(3) quarterly audits by ICANN of financials and adherence to ICANN
policies;
(4) provisions for another registry operator to take over in case of
business failure; and
(5) effective ICANN-managed complaint mechanism.


Information about the policies and procedures applicable to the TLD: Q 70-74

ICANN should make policies, based on consensus of all stakeholders,
including registrars, rather than delegate its policy-making responsibilities to any one constituency in order not to disadvantage other constituencies.  ICANN should conduct frequent audits and establish complaint mechanism procedures so that potential problems may be resolved promptly, and before they result in any damage to registrants, registrars, other registries, or the DNS. 

ICANN, however, should not over-regulate the industry and allow fair business competition to occur.

Applications for chartered or sponsored TLDs should be subject to the same requirements as open TLDs.  In addition, ICANN should set up a system to ensure that the registrants in the restricted TLDs fit the profiles intended for such TLDs.
       
     
     
     

 


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