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Big hotel chains pick a side in .hotel gTLD fight

Kevin Murphy, August 11, 2012, Domain Registries

Many of the world’s major hotel chains say they plan to object to every .hotel new gTLD application but one.
A coalition of many recognizable hotel brands, led by InterContinental, has filed comments against six of the seven .hotel applications, as well as the applications for .hotels, .hoteis and .hoteles.
They say they want the Independent Objector to object to these applications on community grounds. Failing that, they’ll file their own official Community Objections.
The comments (PRO) were filed by the Hotel Consumer Protection Coalition, which appears to be one of those ad hoc organizations that exists purely to send letters to ICANN.

HCPC encourages the Independent Evaluator to submit a formal Community Objection if necessary. (Guidebook, Sec. 3.2.5.) Failing either of these occurrences, HCPC will seriously consider filing a Community Objection of its own – unless, of course, Applicant voluntarily withdraws its application.

The coalition’s members include the Choice Hotels, InterContinental, Hilton, Hyatt, Marriott, Starwood and Wyndham hotel chains. Together, they say they have over 25,000 hotels in over 100 countries.
The lucky recipient of the coalition’s tacit support is HOTEL Top-Level-Domain, the Luxembourg-based applicant managed by Johannes Lenz-Hawliczek and Katrin Ohlmer, which is using Afilias as its back-end.
It’s one of only two .hotel applicants flagged in the DI PRO database as planning to use a “restricted” business model. Only hotels, hotel chains and hotel associations will be able to register.
The other applicant with planned restrictions is a subsidiary of Directi, though its application suggests that any eligibility requirements would only be enforced post-registration.
HOTEL Top-Level Domain is also the only applicant that appears to be pursuing a single gTLD. All but one of the others are portfolio applicants of various ambitions.
Top Level Domain Holdings, Donuts, Famous Four Media and Fegistry all plan “open” business models for .hotel, while Despegar Online is planning a single-registrant space.
The Hotel Consumer Protection Coalition’s support for HOTEL Top-Level Domain is conditional, however. The company has apparently had to agree to explicitly exclude:

“any entity other than a hotel, hotel chain, or organization or association that is not formed or controlled by individual hotels or hotel chains”

It’s also agreed to “immediately suspend” any “clear violations”, such as cases of cybersquatting, when notified by coalition members, and to include its members’ brands on a Globally Protected Hotel Marks List.
The support has apparently been granted extremely reluctantly. InterContinental explicitly does not support the new gTLD program, and Marriott has previously said it thinks .hotel is pointless.
I can’t imagine a .hotel supported by companies that have no plans to use it being particularly successful.

Round-up of the ICANN new TLDs comment period

Today is the deadline to file comments on version four of ICANN’s Draft Applicant Guidebook for prospective new top-level domain registries.
Of the few dozen comments filed, the majority involve special pleading in one way or another – everybody has something to lose or gain from the contents of the DAG.
That said, I’ve read all the comments filed so far (so you don’t have to) and lots of good points are raised. It’s clear that whatever the final Applicant Guidebook contains, not everybody will get what they want.
Here’s a non-comprehensive round-up, organized by topic.
Trademark Protection
Trademark holders were among the first to file comments on DAG v4. As I’ve previously reported, Lego was first off the mark with an attempt to convince ICANN that the concerns of the IP lobby have not yet been resolved.
Since then, a few more of the usual suspects from the IP constituency, such as Verizon and InterContinental Hotels, have filed comments.
The concerns are very similar: the Universal Rapid Suspension process for trademark infringements is too slow and expensive, the Trademark Clearinghouse does not remove cost or prevent typosquatting, not enough is done to prevent deadbeat registries.
Verizon, a long-time opponent of the new TLD program and a rigorous enforcer of its trademarks, used its letter to raise the issue of cybercrime and hit on pressure points relating to compliance.
It brings up the KnujOn report (pdf) released in Brussels, which accused ICANN registrars of being willfully blind to customer abuses, and the fact that ICANN compliance head David Giza recently quit.
Two IP-focused registrars also weighed in on trademark protection.
Com Laude’s Nick Wood filed a very good point-by-point breakdown of why the URS process has become too bloated to be considered “rapid” in the eyes of trademark holders.
Fred Felman of MarkMonitor covers the same ground on rights protection mechanisms, but also questions more fundamentally whether ICANN has shown that the new TLD round is even economically desirable.
Felman has doubts that new gTLDs will do anything to create competition in the domain name market, writing:

the vast majority of gTLDs currently being proposed in this round are gTLDs that hide traditional domain registration models behind a veil of purported innovation and creativity

Well, I guess somebody had to say it.
Fees
There are concerns from the developing world that $185,000, along with all the associated costs of applying for a TLD, is too steep a price to pay.
The “African ICANN Community” filed a comment a month ago asking ICANN to consider reducing or waiving certain fees in order to make the program more accessible for African applicants.
Several potential TLD registries also think it’s unfair that applicants have to pay $185,000 for each TLD they want to run, even if it’s basically the same word in multiple scripts.
Constantine Roussos, who intends to apply for .music, reiterated the points he brought up during the ICANN board public forum in Brussels last month.
Roussos believes that applicants should not have to pay the full $185,000 for each non-ASCII internationalized domain name variant of their primary TLD.
He wrote that he intends to apply for about six IDN versions of .music, along with some non-English Latin-script variants such as .musique.
Antony Van Couvering of registry consultant Minds + Machines and .bayern bidder Bayern Connect both echo this point, noting that many geographical names have multiple IDN variants – Cologne//Koeln/Köln, for example.
Roussos also notes, wisely I think, that it appears to be a waste of money paying consultants to evaluate back-end registry providers for applicants who choose to go with an recognized incumbent such as VeriSign, NeuStar or Afilias.
Another request for lower fees comes from the Japan Internet Domain Name Council, which thinks geographical TLD applications from small cities should receive a discount, as well as a waiver of any fees usually required to object to a third-party application.
Contended Strings and Front-Running
Of the known proposed TLDs, there are several strings that will very likely be contended by multiple bidders. This has led to maneuvering by some applicants designed to increase their chances of winning.
Roussos suggested that applicants such as his own .music bid, which have made their plans public for years, should be awarded bonus points during evaluation.
This would help prevent last-minute con artists stepping in with “copy-paste” bids for widely publicized TLDs, in the hope of being paid off by the original applicant, he indicated.
Roussos thinks the amount of work his .music has done in raising community awareness around new TLDs has earned the company extra credit.
It’s a thought echoed by Markus Bahmann, dotBayern’s chairman, and his counterpart at dotHamburg.
The opposing view is put forward by rival .bayern bidder Bayern Connect’s Caspar von Veltheim. He reckons such a system would put “insiders” at an unfair advantage.
M+M’s Van Couvering also said he opposes any applicant getting special treatment and added that M+M wants an explicit ban on trademark front-running included in the DAG.
Front-running is the practice of registering a TLD as a trademark in order to gain some special advantage in the new TLD evaluation process or in court afterward.
(M+M’s owner, Top Level Domain Holdings, has reportedly been front-running itself – attempting to defensively register trademarks in the likes of .kids, .books and .poker, while simultaneously trying to fight off similar attempts from potential rivals.)
Roussos of .music responded directly to M+M this afternoon, presenting the opposite view and promising to use its trademarks to defend itself (I’m assuming he means in court) if another .music applicant prevails.

Rest assured that if we, as .MUSIC are faced with the possibility of being gamed and abused in a manner that we find illegal, we will use our trademarks and other means necessary to do what we have to do to protect ourselves and our respective community.

He said .music is trademarked in 20 countries.
Morality and Public Order
This was a hot topic in Brussels, after the ICANN Governmental Advisory Committee agreed that it did not like the “MOPO” objection provisions of DAG v4, but could not think of a better replacement.
MOPO would give a way for governments to scupper bids if they do not like the morality implications. Anybody applying for .gay, for example, would have to deal with this kind of nonsense.
Jacob Malthouse of BigRoom, one of the would-be .eco bidders, reckons ICANN should treat the GAC the same as it treated the GNSO on the issue of vertical integration – remove MOPO from the DAG entirely in order to force the GAC to come up with something better.
The GAC had previously said it would address the MOPO issue in its comments on DAGv4, but its filing has not yet appeared on the ICANN site.
There’s a GNSO working group over here, but M+M’s Van Couvering notes that no GAC members have got involved post-Brussels.
Terrorism
Two commentators objected to the idea that an applicant could be rejected for involvement in “terrorism”, a term that DAGv4 does not define.
I reported on this a few days ago, but since then Khaled Fattal of the Multilingual Internet Group has filed a surprising rant that seems to indicate he has way more beef than really necessary.
Here’s a few quotes mined from the full comment:

it will alienate many in the international community who will choose not to take part in future ICANN processes including its New gTLDs, distrusting ICANN’s motives, or actively choosing to boycotting it, and causing many to seriously start re-considering alternatives.

as a Syrian born Arab American would I pass the IvCANN terrorism verification check as they are? After all Syria, my country of birth, is on the U.S. Government list of states sponsor of terrorism? And I admit, I do know an “Osama”, does that disqualify me? I Forgot to add, “Osama Fattal” a cousin. So would I pass or fail this check?

The arbitrary inclusion of terrorism as a measuring stick without any internationally recognized laws or standards is wrong and offensive to many around the world. If acted upon, it will be seen by millions of Muslims and Arabs as racist, prejudicial and profiling and would clearly indicate that ICANN has gone far beyond its mandate.

Vertical Integration and .brand TLDs
The issue of whether registries and registrars should be allowed to own each other is a thorny one, but there’s barely any mention at all of it in the DAGv4 comments filed so far.
The DAGv4 language on VI, which effectively bans it, is a place-holder for whatever consensus policy the GNSO comes up with (in the unlikely event that its working group ever gets its act together).
Most efforts on VI are therefore currently focused in the GNSO. Nevertheless, some commentators do mention VI in their filings.
Roussos of .music wants .music to be able to vertically integrate.
Abdulaziz Al-Zoman of SaudiNIC said VI limits should be removed to help applicants who need to turn to third-party infrastructure providers.
From the IP lobby, Celia Ullman of cigarette maker Philip Morris notes that there’s nothing in DAGv4 about single-registrant .brand TLDs. She writes:

would this mean that trademark owners owning a gTLD would need to open the registration procedure to second-level domain names applied for to third unrelated parties? In this case, what would be the incentive of actually registering and operating such a gTLD?

Clearly, the idea that a .brand would have to be open to all ICANN registrars on a non-discriminatory basis is enough to make any trademark attorney choke on their caviare.
JPNIC, the .jp ccTLD operator, also points out that DAGv4 says next to nothing about .brand TLDs and strongly suggests that the final Applicant Guidebook spells out just what a registry is allowed to do with its namespace (lawsuits are mentioned)
Disclaimer
I’ve paraphrased almost everybody in this article, and I’ve done it rather quickly. Despite my best efforts, some important nuance may have been lost in the act.
If you want to know what the commentators I’ve cited think, in their own words, I’ve linked to their comments individually throughout.
I may update this post as further comments are filed.