Trademark

UDRP Procedure: manage a domain name portfolio with attention

WIPO, Arbitration and Mediation Center, March 10, 2020, No. D2019-3175, Orfeva SARL v. Vianney d’Alançon.

 

The company Orfeva has specialized for many years in baptism medals. Since 2010, it has been using the domain name ” medailledebapteme.fr ” as the domain name for its official website. Orfeva is also the owner of the French trademark “MEDAILLEDEBAPTEME.FR”.

Orfeva filed a UDRP complaint before the WIPO Arbitration and Mediation Center against the domain name <medailledebapteme.com>, claiming that it infringes its rights, and asking for a transfer.

This domain name was initially registered on July 21, 2010 by Mr. de Graaf, legal representative of the applicant, then, due to a non-renewal in 2016 – for reasons not explained – this name fell back into the public domain and was reserved on September 26, 2016 by Mr. Vianney d’Alançon to designate his own website for the sale of jewelry and silverware. Mr. Vianney d’Alançon has been the owner of the French trademark “1000 MEDAILLES DE BAPTEME.FR” since December 2015.

The applicant argued that the defendant registered the disputed domain name with perfect knowledge of the existence and use of its earlier mark. Consequently, it considers that the defendant sought to generate confusion with its earlier mark in order to try to divert consumers to its own internet site, by offering them the same goods on a very similar site. In addition, the applicant states that has filed an applicaion by letter, through its Counsel, for the restitution of the disputed domain name, without receiving a reply from the defendant.

The defendant, for its part, maintains that it purchased the domain name <medailledebapteme.com> because it is descriptive of his products and not in order to disrupt the applicant’s business. He argued that the expression ‘baptismal medal’ in everyday language cannot be the subject of a monopoly, being the generic, necessary and customary designation of baptismal medals in the jewellery sector.. Furthermore, he adds that he replied to the letter from the applicant’s counsel, refusing to uphold his claims.  Finally, the defendant argues that there has been no demonstration of customer poaching. In that regard, it states in particular that the applicant’s business is not disrupted by the operation by a third party of the domain name <medaille-de-bapteme.fr> which predates the applicant’s domain name <medaille-de-bapteme.fr>.

The applicant’s position is not followed by the expert who considers that the domain name has not been registered and is not being used in bad faith.

Indeed, the name is descriptive of the Respondent’s activity, which justifies the registration of the domain name. The applicant’s knowledge of prior trade mark rights cannot affect the legitimacy of that registration.

Furthermore, the expert endorses the Respondent’s argument that it was not intended to disrupt the applicant’s business, pointing out that several companies specialising in the sale of christening medals and using very similar domain names coexist peacefully.

 

The expert concludes that the complaint must be rejected. In addition, he states that there is no evidence or reason to suspect any customer poaching or disruption of the applicant’s business operations.  A court of law may rule on this matter, if necessary.

It should therefore be borne in mind that the abandonment of a domain name describing the activity, especially if it includes the highly prized top level domain “.com”, will most certainly be registered by a third party as soon as it falls into the public domain. Indeed, this type of name is generally very coveted, especially because it can enjoy high visibility on search engine results, corresponding to the keywords that Internet users can search for.

The same applies to domain names that reproduce the company’s brand and especially its corporate brand. Even if it is decided to no longer use a name, it may be advisable to keep it as a defensive measure to prevent a third party from taking it over.

Finally, it should be recalled that the parties must be attentive to the arguments they present before the WIPO, at the risk of departing from the UDRP’s legal regime. Unlike the judge, the expert does not have the power to declare a trademark invalid, nor to conduct investigations for unfair competition.

Keywords: generic designation of domain name – bad faith – trademark right – domain name – unfair competition

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UDRP Procedure: proof of claimed trademark rights must be accurate

WIPO, Arbitration and Mediation Center, March 5, 2020, No. D2019-2887, SYMPHONY HOLDINGS LIMITED V. JAIMIE FULLER, FULLER CONSULTANCY F.Z.E.

 

The first criterion of the UDRP – which generally does not pose any difficulty – consists in the applicant demonstrating that a trademark in which he has rights is recognizable in the disputed domain name.

 

The text of the UDRP Guidelines, available on the ICANN website, is as follows: “Your domain name is identical to, or confusingly similar (note: potentially confusingly similar) to, a trademark or service mark in which the complainant has rights. It is not clear whether the applicant must simply be the owner of the mark, or whether he must also be the registered owner of that mark.

 

This point must be considered when reading the case of a Bermudan company Symphony Holdings Limited, against the Swiss defendant Jaimie Fuller of Fuller Consultancy concerningthe domain name <skins.net>

 

The applicant, Symphony Holdings Limited, claimed rights in the Australian trademark’SKINS.NET’, which is identical to the domain name. However, the Experts noted that the Symphony Holdings Limited did not appear as the owner of the mark in the databases of the Australian Office.

 

The applicant had submitted a copy of an agreement by which it had acquired a list of assets belonging to SKINS International Trading AG (“SITAG”), the registered owner of the mark.

 

However, this agreement was found to be insufficient, as the precise list of acquired rights was not provided. It was, therefore, not possible to verify that the trademark in question was part of it. All the more so since the contract specifies that all assets are transferred except for those already transferred in 2012 to a Japanese company.

 

This might lead to the conclusion that if the applicant had provided the list of the transferred trademarks, then the claimed trademark would have been accepted by the experts. The experts stated that they could have issued a “panel order”, i.e. a request for additional documentation. However, they did not do so because the dispute seemed too complex to be resolved via the UDRP procedure. In fact, at the time of the auction of SITAG’s assets, the defendant was one of the applicant’s competitors.

It should be noted that the Respondent had itself acquired the domain name in question, which belonged to SITAG, through an agreement.

 

On the one hand, this decision may help to recall a fundamental principle of trade mark law: registrations relating to trade marks should be done, in particular in assignment or licensing cases, in order to avoid being harmed subsequently, in the event of a court action, for example.

 

On the other hand, the decision also emphasizes that the UDRP procedure is not appropriate for all domain name disputes. It is tailored for disputes between a right holder and a cybersquatter. Commercial disputes between companies have no place here.

 

Thus, it is necessary to be vigilant with regard to all aspects of the procedure. The question of rights, which may seem elementary, must be perfectly taken care of in that the absence of valid proof of the trademark right will necessarily lead to the failure of the complaint, even if the case is more obvious than the one currently under discussion.

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Coronavirus: the measures implemented by intellectual property offices to deal with the health crisis

The whole world’s been in slow motion since the Covid-19 virus spread. Thus, state governments are doing their best to maintain the continuity of the administration despite the implementation of containment measures,. Since an ordinance of March 16, the offices have decided to extend procedural deadlines that expired during this period of health crisis.

 

Here’s a list of the provisions that offices have put in place in order to allow better management of procedures related to trademarks, as well as patents.

 

 

  • INPI, The National Institute of Intellectual Property

The INPI decided in its order n°2020-32 of March 16, that the deadlines for proceedings relating to patents, trademarks and designs will be extended to 4 months for procedures concerning patents, trademarks and designs. However, the deadlines for priority for international extensions, for payments for patent and supplementary protection certificate filing, which are subject to supranational provisions, have been excluded.

 

The order adds that “in the event of failure to comply with a deadline, the health crisis will be taken into account when examining the procedures for appealing for restoration or for a forfeiture statement to the INPI. »

 

It should be noted that the bill put in place by the government was adopted by Parliament on March 2: the aim is to enable the Government to legislate by ordinance in many areas, including that of intellectual property. This ordinance thus includes provisions concerning the extension of the deadlines stemming from the Intellectual Property Code, including those relating to the opposition procedure.

In accordance with the new order dated March 25 (No. 2020-306), the INPI extended the delay of deadlines for procedures concerning trademark oppositions, trademark renewals or design extensions : it allows to benefit from thecorresponding grace period or for the filing of an administrative or judicial appeal.

In this way, it extends the deadlines which expire between March 12th and June 23rd. The statutory deadline for taking action runs until July 23rd if the initial deadline was set for one month, and until August 23rd if it was for two months or more.

The INPI is already planning to extend its deadlines until July. In the weeks to come, it will be necessary to closely monitor the news from the office.

 

  • EUIPO, European Union Intellectual Property Office

The Office had stated in its Decision No. EX-20-3 issued on March 16, that all deadlines expiring between 9 March and 30 April 2020 included, would be automatically extended until May 1st, 2020. Since May 1st is a public holiday, the deadlines were therefore extended until May 4, 2020.

 

EUIPO subsequently explained its decision on March 19. By the expression “all deadlines”, it meant all procedural deadlines, whether fixed by the Office or of a statutory nature. “They are stipulated directly in the Implementing Regulation,” with the exception of the deadlines relating to matters not covered by certain regulations, such as that on the European Union trademark (2017/1001). It is therefore applicable to all procedures, whether for trademarks, patents, renewals or opposition proceedings.

More recently, on April 29, WIPO’s Executive Director issued the Decision No. EX-20-4, extending all deadlines expiring between May 1st and May 17, to May 18, in order to further support and assist users during the COVID-19 pandemic.

 

  • WIPO, the International Intellectual Property Organization

In the opinion (No. 7/2020) issued on March 19, WIPO introduced possible remedies for failure to comply with the deadlines under the Madrid system and modalities for the extension of the deadlines when the national offices are closed.

 

With regard to the international registration of trademarks, WIPO added that the extension of the deadlines is automatic in the event that an IP office is not open to the public.  Therefore, if a deadline for a provisional refusal expires on the day an office is closed, it will be extended on the first day following the opening of the office.

 

The opinion adds that, with regard to trademarks, applicants may request the continuation of the procedure without having to justify themselves, in particular for all matters relating to an international trademark application, a request for registration, a request for modification of a subsequent designation, etc…

 

WIPO has also recently announced automatic extensions of the deadlines in cases where a national IP office is closed to the public and in the event of disruption in postal or mail services.

 

In a press release of March 16 and 19, USPTO had announced that it was waiving the late fees in certain situations for applicants affected by the coronavirus, as well as the requirement of an original handwritten signature in ink for certain documents.

 

On April 28, USPTO announced an extension of the deadlines up to May 31, 2020. This means that some actions that were due in this period can be postponed to 1 June. The USPTO gives an extension for certain deadlines between March 27 and April 30. This period runs to 30 days from the original deadline.

 

In order to obtain the extension, applicants or patentees must “submit a declaration that at least one person responsible for the delay has been affected by the COVID-19 pandemic, due to office closures, financial problems, inaccessibility of records, illness of a family member, or other similar circumstances. »

 

  • In other countries of the world

-The Canadian Intellectual Property Office is extending the deadline to July 6th, 2020.

The German Patent and Trademark Office affirmed in a statement dated May 11 that the extension of the deadlines will be until June 2.

UKIPO, the United Kingdom Office declared on May 7, 2020 that all deadlines falling on or posterior to March 24, 2020 (being those interrupted days) will be extended to the following interrupted day. The period of interruption will end on July 29th. This extension applies to most deadlines for patents, trademarks, supplementary protection certificates and designs.

The Benelux Organisation for Intellectual Property is the most rigid office. Indeed, in a press release dated March 16, it discloses that trademark applications referring to coronavirus will be refused registration. However, in a press release of March 20, it revised their position by saying that “the BOIP will not withdraw any application or procedure because a given deadline has not been met. This also applies to opposition proceedings not filed on time or to payments not made on time”. These measures will be applicable until May 20, 2020, at least.

 

The WIPO website regularly updates information on the provisions adopted by various intellectual property offices in order to keep abreast of the various communications that offices can make around the world. With the introduction of deconfinement measures in some countries, including France, it will be necessary to closely follow the future news.

 

Dreyfus can assist you in the management of your trademarks portfolios in all countries around the world. Do not hesitate to contact us.

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Will trademark non-use due to quarantine be considered a valid reason?

Due to the current health situation, the majority of companies have reduced their activity. This suspension or reduction of activity will have an impact on all intellectual property and may in particular result in the non-use of the trademark by the owner, leading to its forfeiture.

In fact, in accordance with the French law, and more specifically Article L714-5 of the Intellectual Property Code, if a trademark is not used for an uninterrupted period of five years for the goods and services covered by the registration, the court may, order the revocation of the trademark and the cancellation of its registration, at the request of an interested third party

The holder must therefore ensure that there is genuine use during this five-year period, i.e. real exploitation.

Thus, owners of trademarks that had not been exploited before the health crisis and quarantine could not start or resume exploitation. This unprecedented period could therefore lead to a period of non-use of more than five years.

However, the trademark owner may invoke a valid reason justifying the absence of serious use. According to established case law, this just reason must have a direct link with the trademark, be a circumstance outside the control of the trademark owner which has made the use of the trademark impossible or excessively difficult.

Therefore, it seems that the court may consider the restrictions imposed by the Government because of the pandemic as a valid excuse for the non-use of the trademark by the owner. Indeed, this obstacle, which is external to the owner’s will and which has made the use of the trademark extremely difficult, may be qualified as a just cause which will prevent or should lessen the delay of a possible revocation of the trademark.

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World Anti-Counterfeiting Day: issues and challenges

In honor of the 22nd World Anti-Counterfeiting Day, Dreyfus Law Firm attended a Webinar organized by INDICAM(Istituto di Centromarca per la lotta alla contraffazione) involving directors of various anti-counterfeiting organizations: GACG, EUIPO, UNIFAB, INDICAM, ANDEMAand ACG.

Anti-counterfeiting issues are always of paramount importance. In fact, approximately 5% of imports into the European Union are counterfeit products. The counterfeiting market is very lucrative for counterfeiters: it requires a very low investment for a very high profit. In addition, the risks associated with it are lower.

During the health crisis linked to the Covid19, the sale of counterfeit products increased significantly: masks, hydro-alcoholic gel, medical equipment; and all this to the detriment of the population’s health. This phenomenon was particularly observed on Marketplace platforms, which were forced to invest impressive means to suppress fraudulent advertisements.

Consequently, the question arises: if the platforms are capable of actively combating the sale of counterfeit medical products in times of crisis, why cannot the same be said of other acts of counterfeiting?  Cooperation with the platforms should therefore be initiated to this end. European associations are closely following the progress of the Digital Single Act, which should represent an additional opportunity in the protection of rights.

Moreover, during the health crisis, the fight against counterfeiting has mainly been focused on medical products and devices. As a result, many infringements went undetected. For example, only products arriving by air were checked during this period and not products imported via cargo ships. To make things worse, in Belgium, for example, all the police officers whose mission was usually to combat counterfeiting were requisitioned in order to enforce anti-Covid-19 measures.

With the coronavirus, the fight against counterfeiting must therefore be stepped up. One of the challenges for the years to come is to provide consumers with the best possible information. Delphine Safarti-Sobreira, Director of UNIFAB (Union des Fabricants), said that awareness campaigns were already being launched through various media, including television broadcasts and YouTube. The next step will be to convince the government to introduce compulsory education in schools on this subject.

 

Three elements are essential in order to fight effectively against counterfeiting: an effective law, more information for consumers and an unwavering determination to continue the fight.

 

Dreyfus can assist you in the management of your trademarks portfolios in all countries of the world. Do not hesitate to contact us.

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A senator is worried about parliamentarians IT security

Jérôme Bascher, the republican Senator of Oise (LR party) expressed his concerns in the report to the Senate No. 82 (2019-2020), on October 22, 2019 : ″Parliamentarians IT security is close to zero

It is primarily a matter of distinguishing between institutional functions and the IT practices of parliamentarians themselves. While the former are relatively well protected, since they benefit from assistance such as that provided by the Anssi (national agency for the security of information systems), the latter are a source of great IT insecurity.

IT insecurity factors related to the workforce

 

1.         Having its own IT equipment

The workforce is a key element in IT security. Each parliamentarian is free to have their own equipment (Huawei or Apple telephone), yetinsecurity can arise from their exchanges and from the means of communication they use. In fact, mobile instant messaging applications that are likely to be used, go through the GAFA. They are hosted by servers of Amazon web service and not by OVH, for example, which could potentially be an efficient French server. This could be countered by the argument that Amazon Web service is also based in France,

 

 

2.         Not enough awareness among senators

While the Parliament benefits from the Trojan horse attacks  detecting systems on institutional sites, the level of IT security among  parliamentarians is still very low.

In 2018, the Senate’s IT security systems intercepted more than 30,000 high-risk contents. Senator Bascher assures that security services  experience at least 2 or 3 cyber attacks per week.

Only wiling senators are aware of the importance of  IT security.  Senator Bascher pointed out : “I’ve never had a virus in my life, because I’m careful,”. Among the risks that public authorities may incur, appears the so called “facing”, that is,the creation of a fake Internet page that could be an apology for terrorism, that French channels Public Sénat and LCP-AN, whose credits are included in public authorities mission, can suffer from. It is a bit reminiscent of the past attack against the channel TV5 Monde a few years ago, which has since had to make considerable investment efforts to pay for its protection.

In addition, an increaseof requests that makethe site inaccessible – hasto be considered,

Cyber attacks against public authorities are now undeniable, as evidenced by the cyber attacks that hit Estonia in 2007, the German Bundestag in 2015 and, to a lesser extent, the Senate, in 2011.

 

Implementation of solutionsto reinforce the parliamentarians IT security

1. The current IT protection system

Senator Bascher points out that, 10% of the IT budget  in France is spentonsecurity.  A program administeredby the Ministry of Defence consisted in recruiting cyber-combatants, however there is a protection  imbalance since the Elysée had its own network, which is not the case for the Parliament.  Senator Bascher  claims that the budget designated to cybersecurity should be increased.

2. A mechanism to be reinforced

The primary objective would be to improve the parliamentarians equipment and make them more aware of IT risks.

According to the Senator, it would also be necessary to reinforce the resources of the Anssi, which is currently the only entity that deals with all the organs of power.

 

Public authorities are therefore at the heart of the strategic and decision-making challenges of Western democracies, as a result of which, they became the main target of IT attacks. This is all the more true in the election period, as demonstrated by the 2016 American presidential election. It’s time to strengthen the parliamentarians IT protection.

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UDRP procedure. The bad faith complainant: when the chances of success are so low that the applicant should not have taken action

Source: WIPO, Arbitration and Mediation Center, Jan. 30, 2020, No. D2019-2937, Scalpers Fashion, S.L. c/ Dreamissary Hostmaster

 

The Spanish company Scalpers Fashion is active in the fashion industry. It is the owner of numerous trademarks incorporating the “Scalpers” sign, including the European Union trademark “Scalpers” No. 6748578, registered on September 29, 2008. The company has filed a UDRP complaint before the WIPO Arbitration and Mediation Center against the domain name <scalpers.com>, claiming that it infringes its rights. The domain name was registered on September 15, 1997, by the Respondent Dreamissary Hostmaster, who is in fact a natural person, a U.S. citizen and the holder of a substantial number of domain names featuring dictionary words. The domain name at issue was exploited to generate pay-per-click revenues by leading to sponsored links referring to the sale of tickets. At the time the complaint was filed, the domain name in question resolved to a parking page.

The Complainant submits that the Respondent intends to take undue advantage of its reputation in fashion and to disrupt its business. In addition, the Complainant submits that the large sums proposed by the Respondent in various attempts t negotiate are evidence of his bad faith. Indeed, the Respondent allegedly offered initially $150,000 and then $195,000. Finally, the Complainant considers that the Respondent’s bad faith is manifested by the registration of more than 100 domain names, for him to be able to resell them for a profit.

The Respondent contends that he registered and used the domain name <scalpers.com> because of the definition of the word “scalper”: a person who buys tickets at the normal price and then resells them at a high price when demand is high and available seats are scarce. In addition, the latter requires the expert to conclude to reverse domain name hijacking.

The Complainant’s position was not followed by the expert. The expert considers that the domain name was neither registered nor used in bad faith. Indeed, the Respondent had registered the domain name more than 10 years before the Complainant’s alleged date of first use of the “Scalpers” trademark. In such circumstances, there was no basis to conclude that the Respondent targeted the Complainant’s mark, which was not in existence at the time the Respondent registered the disputed domain name. As regards the use of ???, the expert also concluded that there was no bad faith, since the Respondent had used the domain name for the meaning of the word “scalpers”. The expert ruling on the case indicates that the complaint should be dismissed. In addition, he stated that the complaint was filed in bad faith by the Complainant, and was intended to deprive the Respondent of ownership of his domain name. Indeed, several facts contribute to the expert’s position: the domain name was registered by the Respondent long before the Complainant owned a trademark right in the Scalpers sign; the UDRP Complaint was filed after two unsuccessful attempts to purchase the domain name from the Respondent; and the Respondent’s counsel notified the Complainant that the complaint should be withdrawn due to the manifest impossibility of establishing bad faith.

The Complainant clearly should have known that the complaint could not succeed. Thus, it should be borne in mind that the UDRP procedure is not a one-way tool. The aggrieved Respondent may attempt to reverse the proceedings to obtain a decision against the Complainant. Here, the lack of chance of success was particularly blatant, as the domain name predates the trademark rights of Scalpers Fashion.

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The rise of phishing in the midst of the coronavirus crisis

Source: Bank Info Security, Feb. 11, 2020

 

The global health crisis caused by the coronavirus is a favorable context for phishing techniques. Indeed, many organized gangs of cybercriminals are pretending to be health organizations by using fake domain names. As a result, they send an e-mail pretending to be a health-related entity, in which they ask the recipient to click on a link and enter or confirm a login and password. For example, cybercriminals therefore send phishing e-mails containing domain names similar to those used by the Centers for Disease Control and Prevention. For example, cybersquatters have incorporated the domain name “cdc-gov.org” which is similar to the official domain name “cdc.gov”.
Thus, these malicious e-mails encourage users to click on a link that looks like it contains information related to the issues related to the coronavirus. In fact, Internet users are redirected to a fake website where they have to enter a username and password. In other cases, cybercriminals send phishing e-mails looking like they originate from the World Health Organization, inviting users to a link to download a document on security measures against the spread of the virus. Of course, this is not the case and users are redirected to a pop-up screen asking for a username and a password. It should be noted that some cybercriminals adopt a different tactic by posing as entities linked to the world of economics, such as shipping companies or manufacturing industries. The coronavirus crisis can have an impact that extends beyond health concerns. Hence, it is necessary to be doubly careful about the extension of these phishing campaigns, alert may be raised for example by e-mails containing numerous spelling mistakes.

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The <.eu> extension against Brexit

Source: EURid, registry of the <.eu> extension 

The United Kingdom parted from the European Union on January 31, 2020. As a result, the United Kingdom and the European Union entered into a transitio period, a period that has been announced to last till December 31, 2020. During this period, UK residents are still entitled to register and renew names in <.eu>.

However, once this period expires, they will no longer be able to register domain names with the <.eu> extension, nor to keep those they already hold, unless they comply with the requirements. The EURID originally detailed a comprehensive plan that was supposed to be implemented from November 1, 2019, the date when the United Kingdom was due to leave the European Union. It will finally apply at the end of the transition period, although no precise deadlines have yet been set. Once the transition period ends, only the following persons are entitled to register domain names in <.eu>: a citizen of the European Union, regardless of his/her place of residence; a natural person who is not a citizen of the Union European but is a resident of a Member State; a company established in the Union; or an organization established in the Union, without prejudice to the application of national law.

Thus, for already registered domain names, registrants will be able to update their contact details in an attempt to maintain their assets. In particular, they will have to indicate a country code of citizenship corresponding to a Member State of the European Union of 27 regardless of their residence or establish an entity legally established in one of the eligible Member States of the European Union of 27 or the EEA. All registrants who do not comply with these eligibility rules will see their domain names cancelles such the domain names will then be available for registration to all.

As non-compliant domain names will be withdrawn, it is appropriate to carry out a thorough analysis of registrants’ domain name portfolios to see whether any of their registrations is at risk.

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The liberalization of prices for domain names in <.com>: a possible increase from2021

The gTLD <.com> apparently occupies more than 40% of the domain name market share, according to statistics provided by the site www.domainnamestat.com. These results confirm that it is an unavoidable extension, especially because the <.com>, which addresses the whole world, is a strong rallying sign.

However, the negotiations in progress between ICANN and the <.com> registry, VeriSign, could lead to a modification of the approval on this extension, so that the <.com>’s price would increase by possibly 7% per year, from 2021 to 2024. In return for this right, VeriSign would pay $4 million to ICANN.

 

This negotiation is notably allowed by an amendment accepted by the American Department of Commerce, datedOctober 26, 2018, by which it was indicated that “in view of the more dynamic market of domain names, the Department considers it advisable to modify the cooperation agreement in order to provide flexibility in the prices related to the registration and renewal of domain names of the .com registry”.

If the price of <.com> increases, it will be relevant to see whether other TLDs recover some of its market shares, especially among the new gTLDs. If it seems unlikely that companies will abandon the names in <.com> that they already hold, newcomers to the market could possibly prefer other extensions.

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