New Era for Domain Names (2011)

NEW ERA FOR DOMAIN NAMES
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JEAN-FRANÇOIS JOURNAULT
ROBIC, LLP
LAWYERS, PATENT AND TRADE-MARK AGENTS
A recent ICANN (Internet Corporation for Assigned Names and Numbers) decision
could have a major impact on the way domain names are used and incidentally
cause headaches for trademark owners.
Indeed, on June 20, 2011, ICANN’s Board of Directors adopted a resolution allowing
the creation of new generic top level domains (gTLDs) in addition to the 22 actual
domains, which include ".com", ".net", ".org", and the latest addition ".xxx" which is
planned to go live later this year. As an aside, trademark holders who wish to prevent
the use of a trademark in association with the adult oriented domain, may exclude
and block their trademark in the ".xxx" domain during the Sunrise Period, which will
take place from September 7 to October 28, 2011.
The new gTLDs may result in the emergence of new domains for generic terms such
as ".sport" or ".film", for cities such as ".newyork" or ".nyc", for interest groups like
".climate” and for trademarks like ".canon" or ".deloitte", the latter being among the
few companies who have already publicly stated their intention to apply for a gTLD.
Even though the prospect of managing a new gTLD may be appealing, particularly
from a marketing perspective, potential applicants should consider several factors
before submitting an application. In addition to incurring application fees of U.S.
$185,000, candidates must ensure that they possess the technical capabilities and
financial resources necessary to, among other things, operate a gTLD in a secure
and stable manner, offer “Whois” services concerning second level domain names in
the gTLD, implement measures for protection of country and territory names in the
gTLD, maintain an abuse point of contact and deliver monthly reports to ICANN.
For trademark holders, ICANN’s decision implies increased probabilities of seeing
one of their trademarks used within a domain name. There are, however,
mechanisms in place to help trademark holders protect and promote their brand.
Accordingly, a Sunrise period will be available to provide an early opportunity for
registered trademark holders to register names in the gTLD. Moreover, during the
© CIPS, 2011.
From ROBIC, LLP, multidisciplinary firm of Lawyers, and Patent and Trade-mark Agents. Published
in the Spring 2011 (Vol. 15, no. 2) Newsletter of the firm. Publication 068.139E.
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Sunrise period, if a trademark is recorded in the Trademark Clearinghouse,
Trademark Claim services will provide notification to potential registrants of existing
trademark rights and the rightsholder on the trademark will be notified that a third
party is attempting to register the trademark. In addition, in the event of a dispute
concerning a domain name, a plaintiff will have the choice between the current UDRP
procedure (Uniform Domain Name Dispute Resolution Policy) and the new URS
procedure (Uniform Rapid Suspension System). The major differences between the
new URS procedure and the UDRP procedure is that the URS is supposedly cheaper,
faster and can result in the suspension of the domain name for the duration of the
registration period, instead of the transfer or cancellation of the domain name
provided under the UDRP.
Only time will tell the extent of the transformation brought on by ICANN’s new policy,
as the magnitude of this decision will depend on how many new gTLDs are created
and the amount of new second level domains for each of these gTLDs. A strong
response could considerably modify the domain name landscape, and resulting
marketing strategies. However, if the rather limited use of certain existing domains
(such as “.pro” and “.names”) is an indicator of the public enthusiasm for new domain
names, the overall impact on domain names could be much lower than expected.
Whatever the case may be, the answer to this question will not be known for some
time, as the arrival of the new gTLDs is not expected until the end of 2012.
ROBIC, un groupe d'avocats et d'agents de brevets et de marques de commerce voué depuis 1892 à
la protection et à la valorisation de la propriété intellectuelle dans tous les domaines: brevets, dessins
industriels et modèles utilitaires; marques de commerce, marques de certification et appellations
d'origine; droits d'auteur, propriété littéraire et artistique, droits voisins et de l'artiste interprète;
informatique, logiciels et circuits intégrés; biotechnologies, pharmaceutiques et obtentions végétales;
secrets de commerce, know-howet concurrence; licences, franchises et transferts de technologies;
commerce électronique, distribution et droit des affaires; marquage, publicité et étiquetage; poursuite,
litige et arbitrage; vérification diligente et audit. ROBIC, a group of lawyers and of patent and
trademark agents dedicated since 1892 to the protection and the valorization of all fields of intellectual
property: patents, industrial designs and utility patents; trademarks, certification marks and indications
of origin; copyright and entertainment law, artists and performers, neighbouring rights; computer,
software and integrated circuits; biotechnologies, pharmaceuticals and plant breeders; trade secrets,
know-how, competition and anti-trust; licensing, franchising and technology transfers; e-commerce,
distribution and business law; marketing, publicity and labelling; prosecution litigation and arbitration;
due diligence.
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