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Get ready for thousands of new two-letter domains

Kevin Murphy, November 9, 2016, 15:39:48 (UTC), Domain Policy

New gTLD registry operators have been given the right to start selling two-letter domains that match country codes.

Potentially thousands of names could start being released next year, resulting in a windfall for registries and possible opportunities for investors.

Some governments, however, appear to be unhappy with the move and how ICANN’s board of directors reached its decision.

The ICANN board yesterday passed a resolution that will unblock all two-letter domains that match country codes appearing on the ISO 3166 list, most of which are also ccTLDs.

While the resolution gives some protection to governments worried about abuse of “their” strings, it’s been watered down to virtually nothing.

In the first draft of the rules, published in July, ICANN said registries “must” offer an “Exclusive Availability Pre-registration Period” — a kind of mini-sunrise period limited to governments and ccTLD operators.

In the version approved by ICANN yesterday, the word “must” has been replaced by “may” and the word “voluntary” has been added.

In other words, registries won’t have to give any special privileges to governments when they start selling two-character names.

They will, however, have to get registrants to agree that they won’t pass themselves off as having affiliations with the relevant government. It looks like registries probably could get away with simply adding a paragraph to their terms of service to satisfy this requirement.

Registries will also have to “take reasonable steps to investigate and respond to any reports from governmental agencies and ccTLD operators of conduct that causes confusion with the corresponding country code in connection with the use of a letter/letter two-character ACSCII domain.”

This too is worded vaguely enough that it could wind up being worthless to governments, many of which are worried about domains matching their ccTLDs being passed off as government-approved.

The Governmental Advisory Committee is split on how worrisome this kind of thing is.

For examples, governments such as Spain and Italy have fought for the right to get to pre-approve the release of “es” and “it” domains, whereas the governments of the US and UK really could not care less.

The most-recent formal GAC advice on the subject, coming out of the July meeting in Helsinki, merely said ICANN should:

urge the relevant Registry or the Registrar to engage with the relevant GAC members when a risk is identified in order to come to an agreement on how to manage it or to have a third-party assessment of the situation if the name is already registered

“It is our belief that that our resolution is consistent with GAC advice,” outgoing ICANN board member Bruce Tonkin said yesterday, noting that nobody can claim exclusive rights over any string, regardless of length.

Before and after the resolution passed, the GAC expressed “serious concern” that the board had not formally responded to the Helsinki communique.

In its Hyderabad communique, issued after yesterday’s vote, the GAC advised the board to:

  • Clearly indicate whether the actions taken by the Board as referred to in the resolution adopted on 8 November 2016 are fully consistent with the GAC advice given in the Helsinki Communiqué.
  • Always communicate in future the position of the Board regarding GAC advice on any matter in due time before adopting any measure directly related to that advice.

ICANN staff are now tasked with coming up with a way to implement the two-character release.

My sense is that some kind of amendment to Registry Agreements might be required, so we’re probably looking at months before we start seeing two-letter domains being released.

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