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ICANN to pay $2 million to keep Trademark Clearinghouse “free” for registrars

Kevin Murphy, March 27, 2013, Domain Registrars

ICANN is putting its money where its mouth is when it comes to helping new gTLDs be successful, committing $2 million to keep Trademark Clearinghouse access “free” for registrars.

While TMCH pricing for trademark owners is now well-publicized, ICANN COO Akram Attalah last night revealed some of the fees for new gTLD registries and registrars.

Registries will have to pay a one-time fee of $5,000 per TLD to access the TMCH, he said.

That was reduced from $10,000 during talks with TMCH back-end provider IBM after ICANN promised to handle billing and administration, he said.

There’s also going to be a $0.30 fee for each domain that matches a TMCH record registered during Sunrise and Trademark Claims periods, he added. The specifics on this fee were a little fuzzy.

But registrars won’t have to pay a penny, it seems. Attalah said that ICANN will pay IBM $2 million to make sure the Clearinghouse is accessible and free for registrars.

“ICANN will pay $400,000 per year for five years to keep the TMCH up and running and that provides free access to all registrars,” he said on last night’s new gTLDs update webinar.

It won’t be completely free for registrars, of course.

Registrars will have to do some implementation work to support the new Trademark Claims and Sunrise specs, but the absence of fees gives them one less excuse to avoid the two rights protection periods.

Trademark Clearinghouse lowers prices

Kevin Murphy, March 21, 2013, Domain Services

The Deloitte-managed Trademark Clearinghouse has slashed its bulk submission prices in response to feedback from registrars.

A newly revised TMCH price list leaves the basic fees of $145 to $95 per mark per year untouched, but makes it much easier for large trademark owners and brand protection companies to qualify for discounts.

The system for securing bulk discounts is based on “Status Points” that accumulate as trademarks are submitted, with five pricing tiers available.

The changes mean submission agents need to rack up 1,000 points in order to become eligible for the first discount tier, instead of 3,000. The cheapest tier is accessible at 90,000 points instead of 100,000.

The TMCH has also doubled the number of bonus points awarded for submitting trademarks during the “early bird” phase, which runs until the first new gTLD sunrise period begins, making it easier to hit discount milestones.

TMCH Cost CalculatorAccording to the Trademark Clearinghouse Cost Calculator, which has been updated with the new numbers, savings could be substantial.

For example, a submission agent that submits 10,000 marks for five-year registrations during the early bird period will pay $5,232,125, which is $742,950 cheaper than under the old pricing scheme.

That would be an average cost of $104.64 per mark per year, compared to $119.50 under the old regime.

A listing in the TMCH is a prerequisite if a trademark owner wants to participate in new gTLD sunrise periods or take advantage of the Trademark Claims cybersquatting alert service.

We gather that the price reductions came largely as a result of feedback from registrars that plan to act as submission agents, rather than from trademark owners themselves.

Trademark Clearinghouse to open March 26

Kevin Murphy, February 25, 2013, Domain Policy

The Trademark Clearinghouse is set to open its doors for submissions March 26, ICANN will announce today.

From that date, trademark owners and their agents will be able to start uploading trademark data, enabling them to participate in one or two of the new gTLD program’s rights protection mechanisms.

Adding a mark to the TMCH qualifies it for the Trademark Claims service, which notifies both rights-holders and registrants whenever somebody tries to register a domain matching the mark.

Trademark Claims will run for at least the first 60 days after each new gTLD launches, but ICANN may extend that window depending on the outcome of its “strawman” discussions.

Many trademarks will also qualify for Sunrise periods in new gTLDs by being entered into the Clearinghouse.

Submissions start at $150 per mark per year, with discounts available when marks are registered in bulk.

DI PRO subscribers can work out how painful the TMCH will be on their wallets, and how to maximize their discounts, using our Trademark Clearinghouse Cost Calculator.

The TMCH is being managed by Deloitte, with a back-end database run by IBM.

While March 26 is just four weeks before ICANN expects to approve the first new gTLDs, I wouldn’t expect to see the first Sunrise periods for a few months after that.

The TMCH is still subject to some fierce debate, and not only because of the proposed strawman changes.

On the technical side, registries and registrars have been fuming recently about the lack of any hard technical specifications for integration, which will be needed when the new gTLDs launch.

Last night, ICANN finally posted the first spec as an IETF Internet Draft.

The format, “Mark and Signed Mark Objects Mapping” describes an Extensible Provisioning Protocol extension used by the TMCH to exchange data with registries about registered trademarks.

Trademark Clearinghouse prices revealed

Kevin Murphy, January 23, 2013, Domain Services

The cost of submitting trademarks to the forthcoming Trademark Clearinghouse will start at $150 per year, the Clearinghouse operator has revealed.

In a complex fee structure documents released this morning, the Clearinghouse outlines a range of discounting schemes that could reduce the cost to as little as $95 a year for big volume users.

But it looks like it’s going to be quite difficult to qualify for really substantial discounts.

Marks submitted to the Clearinghouse will eligible for the Trademark Claims service, which alerts the owners if someone registers a matching domain name, and may be eligible for new gTLD Sunrise periods.

The fees outlined today cover both services, though new gTLD registries will of course charge their own Sunrise fees on top of what the Clearinghouse asks.

The documents break down two types of pricing: basic credit card payments (for people with 10 trademarks or fewer) and advanced prepayment pricing, which is reserved for “agents”.

Agents will in most cases be digital brand management companies (think Melbourne IT or Markmonitor) but the Clearinghouse tells us that trademark owners can also become agents if they pre-pay.

The basic, credit-card tier costs $150 per year for a single trademark. The cost is reduced to $145 per year if the trademark owner registers the mark for three or five years.

The prepaid advanced tier is rather more complicated, based on the number of “status points” customers rack up.

A status point is earned for each trademark-year registered, with bonus points awarded for multi-year registrations and registrations made in a special “early bird” period (before the first-to-launch new gTLD’s Sunrise period begins).

Excluding these bonuses, agents would have to register over 100,000 trademark-years in order to qualify for $95-a-year pricing, which is the lowest available.

Multi-year registrations would make make the discounts kick in earlier, but only after certain milestones are passed.

The Clearinghouse document gives this example:

If you register the first 3,000 trademarks for a single year, they will be charged at 145 USD per registration. The next 22,000 will be charged at 135 USD. The next 35,000 registrations will be charged at 120 USD. For 60,000 registrations you will have paid 435,000 + 2,970,000 + 4,200,000 USD, or an average price of 126.75 USD

Smart agents will likely want to register their multi-year marks first, in order to earn bonus points and more quickly qualify for the cheaper rate on their single-year registrations.

Whether agents pass on their discounts to their customers is another matter entirely.

The Clearinghouse fees will be calculated based on the number of trademarks submitted, rather than the number of domain names matching those trademarks.

Each mark will automatically get up to 10 matching domain names entered into the database. If your trademark is “Joe’s Autos” your matching domain strings could be “joesautos”, “joes-autos” and even “joe-s-autos”.

Trademark owners will have to pay an extra dollar per year for each matching domain beyond 10.

The Clearinghouse — operated by Deloitte with a back-end provided by IBM — still plans to launch later in the first quarter this year.

You can download its pricing scheme from its web site.

Deloitte confirmed as first Trademark Clearinghouse provider

Kevin Murphy, December 14, 2012, Domain Policy

ICANN has signed a contract with Deloitte, making the company the first official trademark validation agent for the forthcoming new gTLDs Trademark Clearinghouse.

The news emerged in a blog post from ICANN CEO Fadi Chehade today.

The TMCH is going to use the registry-registrar model, with IBM acting as the centralized, sole-source database operator, and Deloitte acting as the first “registrar”.

Marks entered into the TMCH will be eligible for Trademark Claims notifications and, in cases where proof of use has been provided, Sunrise registrations.

Chehade confirmed that Deloitte can charge a maximum of $150 per trademark per year, with discounts available for multiple marks and multiple years.

IBM’s contract and associated fees have not yet been set, due largely to the fact that the TMCH implementation model is still the subject of debate and controversy.

ICANN has confirmed, however, that it will retain “all intellectual property rights” to data stored in the Clearinghouse, meaning it may be able to migrate the database to a different provider in future.

Chehade also confirmed that ICANN has received “multiple” responses to its Request For Information for a Uniform Rapid Suspension service provider that come in under its $500-per-case price target.