By 2012, camera shoppers who go online for research may be confused to find that web addresses have changed from the familiar ones, such as becoming "support.canon". This is because the Internet Corporation for Assigned Names and Numbers (ICANN), which manages these addresses, plans to significantly rewrite the rules of web addresses, reducing the importance of .com. Currently, the so-called "generic top-level domains" (gTLDs) are limited in number, including only .com, .net, .org, .biz, and .edu. However, ICANN hopes to open the door to create hundreds or even thousands more gTLDs.
This will be a significant change, especially for businesses that must protect their brands. Below is a FAQ on the future impact of gTLDs:
Q: What are generic top-level domains and how do I obtain one?
A: In a typical web address, the top-level domain is the string after the last dot in the main server address. They can roughly be divided into two categories: general TLDs like .com, and country-specific TLDs, such as .cn for China and .de for Germany. But after ICANN expands the TLDs, the term "generic" will no longer be accurate since it could include not only industry terms like .auto or .hotel but also brand-specific domains such as .ibm or .safeway.
In the past, businesses raced to register .com addresses or buy them from those who got there first. But in the future, if you want your own gTLD, you must apply to ICANN, at a high cost: the application fee alone is $185,000, with an additional $25,000 annual fee. If there are other applicants competing for the same domain name, the winner will be decided by auction. The establishment of secondary domain names under the top-level domain name will be free for the first 50,000, after which each will cost 25 cents.
Q: Why expand the range of top-level domain names?
A: The non-profit ICANN aims to promote competition in the domain name market. Currently, most global websites need a URL ending in .com, with VeriSign being the registrar and supervisor of that domain. But a company might prefer to directly apply to ICANN to become a registrar, allowing them to manage their own domain names without relying on third parties; another company might wish to operate a broader registration service open to all. gTLDs can help people launch websites using family surnames, and cities can introduce location-specific domain names, such as .sydney.
At a meeting in September, ICANN stated that approximately 1,000 new domain names could be added annually. Karla Valente, ICANN's director of product and services communications, said that expanding the gTLD scope is not about making money from new top-level domains.
Q: When will we start seeing gTLDs?
A: Valente said: "I think we'll see them by 2012 at the earliest."
Currently, preparations for expansion are underway. ICANN will approve and publish official gTLD guidelines, followed by accepting applications in 2011. Therefore, companies potentially affected by gTLDs must begin considering their responses early.
Q: Who needs to pay particular attention?
A: Initially, those mainly needing to promote or defend their trademarks and brands should be most concerned, but it’s unclear what strategies they should adopt.
Japanese camera manufacturer Canon has announced its intention to apply for the .canon domain. The company stated: "Adopting the new gTLD system allows us to directly use the Canon brand. Canon hopes to integrate global public communication policies through this, making it more intuitive and easier to remember than the current 'canon.com'."
However, Rick Gardinier, digital officer of marketing company Brunner, believes that attracting consumers hinges not on domain names but on excellent content and engaging experiences.
Steve Stolfi, vice president of brand building company CTCorsearch, thinks that gTLDs "will completely transform the landscape of the Internet and future e-commerce activities." For example, in the future, companies can provide more personalized online services. A well-known beer maker could own .anheuser-busch and set up URLs for all its brands—budweiser.anheuser-busch, michelob.anheuser-busch, corona.anheuser-busch, etc. Banks could even create unique domain names for each customer to enhance security.
Q: Will security be affected?
A: ICANN is ensuring that security does not deteriorate. Expanding generic top-level domains has benefits, such as when people know that communications with banks must go through sites like .bankofamerica or .banking, they are less likely to fall victim to phishing scams. However, users may initially struggle to distinguish between new websites and email addresses, making it hard to verify their authenticity.
Q: Could my company name be hijacked by cybersquatters?
A: This was an issue during the early days of commercializing the Internet, but ICANN is taking steps to prevent this from happening with gTLDs, including establishing a "Trademark Post-Delegation Dispute Resolution Procedure." This does not mean they are out of the woods yet.
Lance Wolak, director of marketing and product management for another top-level domain .org, said: "Today, trademark owners buy domain names to protect their brands. With the introduction of new gTLDs, they will need to purchase even more. There are still some challenges ahead."
Q: How are legitimate trademark disputes resolved?
A: In the physical world, two companies in different industries can use the same name for their products or services. On the Internet, if multiple companies compete for the same domain name, they must bid, with the financially stronger party winning, as it currently stands.
Q: Is this the beginning of the end for .com dominance?
A: In the future, new gTLDs may become more influential, but it is premature to say that the status of .com as a top-level domain will decline. Today's Internet users are accustomed to URLs like www.demi.cn, and .com remains very valuable.
Additionally, even if companies see the business opportunities in new gTLDs, they must first retrain users to recognize new domain names, which could undermine their existing branding investments. Therefore, for highly recognizable or global brands, the global dominance of .com will not be replaced in the foreseeable future.