The fourth version of the Draft Applicant Guidebook (DAG4) on new TLDs was the subject of much debate at the recent ICANN Brussels meeting (at which Valideus was a silver sponsor).
ICANN undertook to assess the economic impact of its plan to accept applications for an unlimited number of gTLDs two years ago. With earlier reports criticised for being US-centric and compiled in indecent haste, a new study was released on 16 June 2010 compiled by Greg Rosston from Stanford University and Michael Katz from the University of California Berkeley. This new study (An Economic Framework for the Analysis of the Expansion of Generic Top-Level Domain Names - PDF 67 pages) covers three topics:
- it surveys published studies that describe the potential impacts of new gTLD introduction
- it examines theoretical cost/benefit arguments
- it proposes new empirical studies that could help assess costs and benefits which ICANN has confirmed will be undertaken over the next six months, probably in the form of case studies.
Rosston and Katz demonstrate a clear understanding of the needs and concerns of IP owners stating, “the biggest likely costs are consumer confusion and trademark protection”. (Valideus sister company Com Laude supplied data on the costs of managing both trademark and domain name portfolios to Rosston & Katz which were obtained from some Com Laude clients). If there is a criticism of the report it is that major conclusions are deferred until the completion of the second study which might include a research project described as follows: “A potentially significant external cost of new gTLDs stems from the need to protect trademarks or brands through the use of defensive registrations. This project would involve estimating the share of organizations or brand names that engage in defensive registrations, as well as the costs incurred by organizations in monitoring domain name registrations and engaging in legal proceedings to protect their brand names and trademarks. The project would evaluate these costs over time, paying particular attention to how those costs have changed with the introduction and changes in the popularity of new domain names, including country codes.”