New Icann rules could end defensive registrations

Green light for customised TLDs will cause firms to rethink their domain name strategies, say experts

Icann's decision to green light the application for customised top level domains (TLDs) could reduce the incidents of cybersquatting but is likely to require firms to rethink how they manage their domain name portfolios, according to experts.

The decision made by internet oversight body Icann could allow in theory the creation of any TLD with up to 64 characters, including regional specific suffixes, generic words or brand names.

But with the potential to create any domain name means brand owners will probably have to give up the strategy of defensively registering any permutations of their own name, according to Jay Daley, IT director at .uk registry Nominet.

"They won't be able to manage it," he added. "IP holders will need to look at taking a more realistic approach – concentrating their brand on one name and then taking on others who might [infringe their copyright]."

Robin Fry, partner at law firm Beachcroft, agreed, adding that the new rules could also deter cybersquatters.

"There will be a flurry of opportunist registrants obtaining the [sought-after] domain names at the beginning," he argued. "But over time there will be so many permutations that their value will decrease – the days of the .com address being the only one to have are long gone."

Fry added that the potentially massive increase in the variety of names an organisation could choose, may force customers to turn to search engines in greater numbers in order to find the web address of business they want to connect to.

Icann has already selected an auction provider to auction domains, although there are still likely to be contentious disputes between firms going after highly sought after generic names such as Mars, warned Nominet's Daley.

However, analyst Gartner said it expects traditionally popular domains such as .com and .uk to dominate the marketplace. The firm recommended organisations use a brand monitoring service to detect any trademark violations, and also ensure all relevant areas of the business are involved in discussions, including IT, legal and marketing.