Soon, the Internet Corporation for Assigned Names and Numbers (ICANN) may vastly expand the Top Level Domain (TLD) space by accepting applications for an unspecified, and seemingly unlimited number of new TLDs. ICANN projects as many as 1,000 new TLD launches over the next three years.

Many brand owners are already under water as a result of having to register defensively and because of the budgetary expenditures required to fight the extraordinary cybersquatting problem in existing TLDs. These brand owners will be forced to contend with the added complexity of enforcement within the new TLDs due to the expansion. The costs of monitoring, defensively registering, and enforcing the new TLDs will be substantial. This monetary harm is just one of many ill effects, such as brand dilution, proliferation of cybercrime and damage to the integrity of the Internet that may occur.

CADNA is continuing to work towards reform in the domain name space that reduces the level of domain name abuse, and we are convinced that the involvement of the entire community is needed to bring about this change and to effectively address the new TLD release. Companies can propose operational best practices for the handling of the release and weigh in on the rules and agreements that will govern this expanded namespace. As this ICANN process develops and unfolds, we can all influence the level of protection afforded to consumers and the rights of brand owners by continuing the discussion, submitting public comments and getting involved at every opportunity. For information on how to comment publicly, visit ICANN’s Web site. For information on how to become involved in CADNA, please contact us.

BUSINESS EXPENSE SCENARIOS:
Projected Impact on the 1500 Largest Businesses of 1000 New TLDs Over the Next Three Years

Likeliest Outcome:
(.05)(14.06B)+(.1)(3.75B)+(.15)(1.87B)+(.15)(937.5MM)+(.2)(375MM)+(.2)(150MM) = $1,604,125,000.00

Assumed levels of participation:

5% - scenario C
10% - scenario E

15% - scenario G
15% - scenario H

20% - scenario I
20% - scenario J

15% - do not participate