- Impact
- 32,415
The Wall Street Journal is reporting several major companies are protesting the new gTLD extensions.
Verizon Communications, Marriott International and New York Life Insurance are among the companies arguing that the new domain extensions could open the flood gates to Internet fraud and drastically increase their costs of doing business online.
“Companies are in a difficult position. In one sense, they may feel compelled to register their crown jewels in all these locations because if they don’t, an infringer will come along, and you will have to deal with the consequences. But at the same time, it’s a huge waste of corporate resources,” says Sarah Deutsch, vice president and associate general counsel at Verizon.
The Journal reports that companies are debating whether they should buy up the rights to operate their own brand-specific domains, such as .marriott or .nylife and looking at registering their trademarks for more generic domains. For example, Marriott is considering acquiring the rights to Marriott.nyc, Marriott.travel or Marriott.vacations.
“”"The bigger issue for companies probably would be more-generic domains like .bank, which could attract interest from multiple parties and spark bidding wars.
The companies that end up operating such domains are expected to offer trademark owners the chance to register their trademarks early for about $500 per domain, about 10 times as much as the price to the public.”"”"
A typical company might register 20 sites within each new top-level domain, making the total cost to participate in all 200 of them $2 million, says Josh Bourne, managing partner of FairWinds Partners, an Internet-strategy consulting firm and a member of CADNA
According to the Journal, industry executives say consumers are likely to stick with .com’s, so they expect the new domains to have little business purpose.
“”"”Web surfers are more apt to continuing visiting sites with the standard .com suffix, such as NYLife.com, instead of visiting a Web site with the address customerservice.nylife, says New York LIfe’s Mr. Hittel.”"”
“It is difficult enough to get consumers to visit any domain name that doesn’t end with .com,” he says.
The Journal points out that companies have been through this before, with the launch of such domain extensions like .asia or .eu. They bought up hundreds of thousands of domains pre-emptively but say these sites either sit dormant or fail to generate traffic.
Credit goes to www.thedomains.com
Verizon Communications, Marriott International and New York Life Insurance are among the companies arguing that the new domain extensions could open the flood gates to Internet fraud and drastically increase their costs of doing business online.
“Companies are in a difficult position. In one sense, they may feel compelled to register their crown jewels in all these locations because if they don’t, an infringer will come along, and you will have to deal with the consequences. But at the same time, it’s a huge waste of corporate resources,” says Sarah Deutsch, vice president and associate general counsel at Verizon.
The Journal reports that companies are debating whether they should buy up the rights to operate their own brand-specific domains, such as .marriott or .nylife and looking at registering their trademarks for more generic domains. For example, Marriott is considering acquiring the rights to Marriott.nyc, Marriott.travel or Marriott.vacations.
“”"The bigger issue for companies probably would be more-generic domains like .bank, which could attract interest from multiple parties and spark bidding wars.
The companies that end up operating such domains are expected to offer trademark owners the chance to register their trademarks early for about $500 per domain, about 10 times as much as the price to the public.”"”"
A typical company might register 20 sites within each new top-level domain, making the total cost to participate in all 200 of them $2 million, says Josh Bourne, managing partner of FairWinds Partners, an Internet-strategy consulting firm and a member of CADNA
According to the Journal, industry executives say consumers are likely to stick with .com’s, so they expect the new domains to have little business purpose.
“”"”Web surfers are more apt to continuing visiting sites with the standard .com suffix, such as NYLife.com, instead of visiting a Web site with the address customerservice.nylife, says New York LIfe’s Mr. Hittel.”"”
“It is difficult enough to get consumers to visit any domain name that doesn’t end with .com,” he says.
The Journal points out that companies have been through this before, with the launch of such domain extensions like .asia or .eu. They bought up hundreds of thousands of domains pre-emptively but say these sites either sit dormant or fail to generate traffic.
Credit goes to www.thedomains.com
