Ready. Set. Wait! Unlimited gTLD Application Window Opens Tomorrow

Tomorrow is a big day for the internet as the Internet Corporation for the Assignment of Names and Numbers (ICANN) opens the possibility of an unlimited variety of internet domain names.  And, while the application window opens tomorrow, the consequences of this expansion of internet domain availability will not likely be known at least until April, if not later. For background on gTLDs and the application process, see my previous posts here and here.

Tomorrow’s expansion of domain name availability is likely to be more of a “Ready-set-wait” moment than an opening of the flood gates. Why is that? First, given the high financial and technical hurdles put in place, it is expected that larger brands are the most likely applicants in this first window. However, very few companies have taken a position as to the new gTLD program, let alone openly admit to applying for their particular .brand. Second, given the amount of time invested by ICANN in development of a new application process (along with some very detailed, very helpful applicant resources), the application process itself is rather complex.

Next, while the application window opens on January 12, 2012, the window does not close and ICANN will not begin to review applications until April 2012. At the close of this first application window, the names and the public-portions of applications will be released to the public. From there, some applications will be challenged on trademark or community issues by third-parties, others will be stalled due to issues identified by ICANN’s examiners.

The real issues will begin when the first new gTLDs go live – which likely will not occur until some time in 2013.  Remember, the application process and the ownership responsibilities of operating a new gTLD or .brand are significantly more onerous than owning brand.com.  In choosing to apply for a .brand, a business is making an affirmative decision to enter into a new industry – domain registry.  One of the conditions of entering the domain registry industry is that the applicant submit its domain registration to the oversight and regulation of ICANN. While firms in highly-regulated fields, such as pharmaceutical or financial services may be comfortable in that environment, it may be a challenge for companies in less regulated industries.

So, while the application window opens tomorrow, the real action will not occur until much later when applicants are tasked with managing their new .brand.