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Brand Owners Hold Their Breath With New gTLD ?“Reveal Day” Delay

It has been quite a rollercoaster the past couple of weeks with the new gTLD application period ending on April 12th coupled with the suspension of the TLD Application System (TAS) due to a technical glitch. With over 1,200 applicants for new gTLDs confirmed by ICANN in the system, and the possibility of thousands of new gTLD applications to be published on “reveal day” brand owners have been holding their breath on the status of their applications. With the TAS application system still down as of the writing of this article, ICANN has announced that all applicants will be notified by May 5th if their application was affected by the TAS technical glitch. Shortly after the notification process has been completed, ICANN will announce the reopening of TAS and the schedule for the application completion period. This development has raised concerns over the stability of the application system.

The delay has also impacted brand owner’s strategy to publically announce their application for a new gTLD. Uncertainty around trademark clearinghouse costs has also made it difficult for brand owners to project the overall costs of the new gTLDS when preparing budgets for 2013 and beyond.

In addition to predicting costs associated with a new gTLD, brand owners are concerned about the stages an application must pass before a final gTLD determination is rendered by ICANN. The stages are Administrative Check, Initial Evaluation, Extended Evaluation, String Contention, Dispute Resolution and Pre-delegation. If no objections or string contentions are filed, a successful application could take as little as 9 months: administrative check (lasting 2 months), initial evaluation (lasting 5 months) followed by pre-delegation (lasting approximately 2 months). If objections are filed, the application process could take as long as one year. Formal objections using pre-established Dispute Resolution Procedures (DRP) may be filed on the grounds of string confusion, legal rights, community and limited public interest. The DRP is in place so that all stakeholders who have an objection to a new gTLD will have several avenues to pursue.

The trademark clearinghouse will also be put in place to protect brands. While the new gTLD trademark clearinghouse is being created to protect brand owners with large trademark portfolios there still has been no announcements on what the costs will be. With so much uncertainty brand owners can only speculate when “reveal” day will be rescheduled, when new gTLDs will go live and when they will be able to protect their valued brands in the trademark clearinghouse. With the INTA annual conference scheduled for next week in Washington D.C., the current state of the new gTLDs and all of the unknowns will be a central discussion point among attendees.

By Steve Stolfi, VP of Global Partnerships at CT Corsearch

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