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OCTOBER 2008

Chile: gTLD expansion: good for trade mark owners?

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The ICANN Board adopted at its June 26 meeting policy recommendations on the introduction of new gTLDs. A final version of the implementation plan must be approved by the ICANN Board before the new process is launched. It is projected that the final version will be published in early 2009.

So what has been agreed? The plan aims to open up the domain name space. Today, internet users have 21 top level domains to choose from. This proposal will allow applicants to self-select their domain name so that they can choose a name most appropriate to their company's needs.

ICANN will continue its first come-first serve policy. Therefore, it is vital to plan ahead, since the most desirable names will be taken in the first round. This application period will be limited, and there will be certain criteria to meet.

ICANN has also agreed to implement an objection period, for the protection of both offensive names and trade mark right holders.

There will be an objection-based mechanism for trade mark owners in which their arguments for protection will be considered. Offensive names will be subject to an objection-based process grounded in public morality and order. Both processes will be conducted by independent international arbitration bodies using criteria drawn from existing provisions.

So what does all this mean for trade mark owners?

  1. It creates opportunities to turn brands into TLDs controlled by trade mark owners;
  2. it generates new commercial platforms;
  3. it fosters significant brand expansion, since licensees, retailers, customers, and any other individual with access can utilise the domain name;
  4. it provides new advertising models and can grant better authentication and security measures.

On the down side, it could mean an increase in domain name registration costs and domain name protection, and an adjustment of domain name portfolio management practices.

However, for the time being we can only speculate about the consequences. The absence of a final implementation plan leaves many key questions unanswered, but ideally, the expansion will provide new and valuable resources for companies.

Andrea Dawson

Alessandri & Compañia
El Regidor 66, Piso 10, PO Box 136-34
Las Condes, Santiago
Chile
Tel: +562 787 6000
Fax: +562 787 6062
ip@alessandri.cl 
www.alessandri.cl



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