Consulting Journal: Trends - New top level domain names

Trends: New top level domain names

by David Blakey

How to make sure your clients are prepared for the changes proposed by ICANN.

[Monday 30 June 2008]

ICANN, the Internet Corporation for Assigned Names and Numbers, has decided to allow new top level domain names. Your clients may need to make some decisions about this.

History

Top level domain names (TLDNs) include 'com' and 'edu' and 'mil', in a structure that was formed for Usenet in the 1970s, when I first began to use the Internet, and long before the World Wide Web existed. They were originally used to transmit email and for FTP and similar protocols. When the Web came along, they were used to name servers, with 'www' as the usual prefix and the TLDN as the suffix. The early Internet was dominated by the military (for whom it was invented) and the universities, so the first TLDNs were 'mil' and 'edu', with the less important 'com' and 'org' for organizations outside the military and academia. The original TLDNs were used in the US, so country top level domains, such as 'uk', 'nz' and even 'us' were added. Strictly, the American 'mil' domain names should have become 'mil.us', but that did not occur.

The Web adopted these TLDNs because it was built on the existing structure. Over time, 'com' dominated the Web, with local 'co.uk' and 'co.nz' corporate websites. Few companies chose 'co.us' as their main domain name.

I recall the early Internet as being a peaceful place, with academic papers being transmitted across it and its users exchanging software, often cut into sections and transmitted as those separate sections. Many areas of Usenet still work like that. With the Web came the people who attempted to exploit others, through scams that involved 'passing off'. These flourish: I had an email message apparently from the NatWest bank today, asking me to click on a link, which the real NatWest tries to deter people from doing. This is not the fault of the Web; there are people who will attempt to exploit others using any technology available to them.

The proposal

Starting in 2009, ICANN intends to make TLDNs available. To look at this, I shall use IBM as an example, mainly because everyone has heard of IBM. It would be entirely reasonable for IBM to claim the TLDN 'ibm'. Then IBM could use the second level domain name as they now use the third level name, to identify a business unit or location. So 'ibm.com/us/' could become 'us.ibm' or 'ibm.com/businesssolutions/' could become 'businesssolutions.ibm'.

The decision on whether to register their own TLDN may be simple for IBM. It may become harder for companies that are not generally identified by a three letter acronym, such as Procter & Gamble. P&G holds 'pg.com'. It would be reasonable for it to hold 'pg'. P&G also holds 'pgeverydaysolutions.com'. They may not want or need the TLDN 'pgeverydaysolutions'. P&G holds 'crest.com' for their Crest product line. They may need to decide about registering the TLDN 'crest'.

Some issues are unclear, including how ICANN plans to allow holders of trademarks to have the use of their trademark as a top level domain. P&G, for example, do not own 'dawn.com' for their Dawn® product; it is owned by the Pakistan English language newspaper.

The issues

There are two major issues for your clients to consider.

Registration

The question of whether or not to register hinges on whether a client may reasonably expect to use a given TLDN and on whether some other person may be able to pass themselves off as the client if that other person owned the name. Most companies will feel obliged to register their trademarks as TLDNs.

It is important for your clients to understand that this is not a technology decision. It is important for them that you make some key recommendations about the responsibility for this issue.

In many organizations, the CIO and CTO is involved with marketing and branding and can be given responsibility for TLDN decisions. In other organizations, unfortunately, the CIO or CTO can be an over-promoted IS or IT manager. These people may be able to see the 'big picture' but they cannot be entrusted with managing it. You should ensure that the right people are in place to decide on the whole TLDN issue.

You should also ensure that your clients are aware that they can register a TLDN without having any immediate plans to use it. They can use registration simply as protection for their trademarks and Web presence.

Use

The other major issue is whether a client should use a TLDN once the client owns it.

While the decision on whether or not to register is about technology, the decision on whether to use a TLDN is predominantly about technology.

You should note carefully - and you should stress to your clients - that this is the other major decision: it is not the second major decision. Your clients cannot make the decision about whether to register until they know the impact of a decision to use their TLDNs. The two decisions are linked. An organization may decide that it will not register TLDNs unless it will use them: it may see little value in a TLDN that is just parked so that no one else can register it.

Some organizations have already examined the issue of theor own TLDN. They have checked the actions that they would need to take to use their own TLDNs as well as their existing ones. They have prepared schedules and budgets for doing this. Unless they have done this recently, they will need to review those schedules and budgets, of course, but, in general, they are prepared and have a plan. (As an aside, I believe that these organizations will have strong and effective CIOs.)

Other organizations will have no plans. Some may have been unaware that ICANN was considering extending TLDNs. (If so, I believe that they have been ill-served by their CIOs and their consultants.) They need to assess the actions that they will need to take on their servers, their web scripts and their databases if they were to register and use their own TLDNs.

Some situations will need to be examined for the first time. Visitors can type 'www.ibm.com' as a domain name in their browser. They can also type 'ibm.com'. Both will direct them to an IBM website. It is not yet clear if a visitor will be able to type 'ibm' as a domain name. Organizations will have to consider this and other options.

Some organizations may be able to make changes easily and rapidly. They may just need to add a few lines to an existing script and a few rows to an existing database table. Other organizations may have to embark on a project to code and test and implement large amounts of code. Whichever situation they are in, they will need to prepare schedules and budgets. Those schedules and budgets must be considered when they decide whether to register TLDNs and whether to use them.

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