<p style="margin: 0in 0in 7.5pt;"><span><a href="http://www.icann.org/en/announcements/announcement-06jun09-en.htm" target="_blank">http://www.icann.org/en/announcements/announcement-06jun09-en.htm</a></span></p>
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<h2 style="margin-bottom: 0.0001pt;"><span>New gTLDs –
Final Reports Available on Competition and Pricing</span></h2>
<p style="margin: 11.25pt 0in 0.0001pt;"><span>6
June 2009</span></p>
<p><span>ICANN posted today two
reports relating to the introduction of new gTLDs, both by Dr. Dennis Carlton: </span></p>
<ul type="disc"><li><span><a href="http://www.icann.org/en/topics/new-gtlds/carlton-re-proposed-mechanism-05jun09-en.pdf" target="_blank">Report
Of Dennis Carlton Regarding ICANN's Proposed Mechanism for Introducing New
gTLDs</a> [PDF, 628K], and </span></li><li><span><a href="http://www.icann.org/en/topics/new-gtlds/carlton-re-kende-assessment-05jun09-en.pdf" target="_blank">Comments
on Michael Kende's Assessment of Preliminary Reports on Competition and
Pricing</a> [PDF, 52K] </span></li></ul>
<p><span>Both reports are briefly
summarized below. A public comment forum has been opened on these preliminary
reports prepared by Professor Carlton for 45 days, until 20 July 2009. Post
comments to <a href="mailto:competition-pricing-final@icann.org" target="_blank">competition-pricing-final@icann.org</a>
and view comments at <a href="http://forum.icann.org/lists/competition-pricing-final" target="_blank">http://forum.icann.org/lists/competition-pricing-final</a>.
</span></p>
<p><b><span>Summary: Report of
Dennis Carlton Regarding ICANN's Proposed Mechanism for Introducing New gTLDs </span></b><span></span></p>
<p><span>This report combines and
updates Dennis Carlton's two preliminary reports from March 2009 that address
ICANN's proposed mechanism for introducing new gTLDs. This paper analyzes, from
an economic perspective, costs and benefits of ICANN's proposed introduction of
new generic top level domain names (gTLDs) and addresses concerns raised by the
Department of Justice and other parties about the ICANN proposal. </span></p>
<p><span>The paper concludes that
ICANN's proposed framework for introducing new gTLDs is likely to facilitate entry
and benefit consumers by expanding output, lowering price and increasing
innovation. Even if new gTLDs do not compete with .<i><span>com </span></i>and the other major TLDs for existing
registrants, it is likely that consumers would nonetheless realize significant
benefits due to increased competition for new registrants and increased product
choice. Thus, evaluation of ICANN's proposal does not depend on addressing the
extent of competition between existing TLDs, a question posed by the ICANN
Board in 2006. </span></p>
<p><span>While a variety of commenters
have expressed concerns that the introduction of gTLDs will require trademark
holders to undertake defensive registrations, alternative mechanisms for
addressing such concerns are available. Several proposals are currently being
reviewed by ICANN which may address these concerns while precluding the
consumer harm that is likely to result from the draconian remedy of restricting
entry of new gTLDs. The ability of ICANN to protect trademark holders through
dispute resolution mechanisms also implies that price caps on new gTLDs are not
necessary to protect trademark holders. </span></p>
<p><b><span>Summary: Comments on
Michael Kende's Assessment of Preliminary Reports on Competition and Pricing </span></b><span></span></p>
<p><span>This paper responds to the
report submitted on April 17, 2009 by Dr. Michael Kende, prepared on
behalf of AT&T entitled "Assessment of ICANN Preliminary Reports on
Competition and Pricing" which comments on Dennis Carlton's two
preliminary reports submitted to ICANN in March 2009. In this reply, Carlton
concludes that there is no basis for Dr. Kende's claim that the study of the
scope of the market for registration services authorized by the ICANN Board in
2006 is necessary for evaluating ICANN's gTLD proposal. This is because, even
if new gTLDs did not compete with <i><span>.com</span></i>
and other major TLDs for existing registrants, new gTLDs would be expected to
result in greater product choice and increased competition for new registrants.
Additionally, Dr. Kende provides no basis for concluding that restricting the
entry of new gTLDs is the best solution to trademark holders' concerns that new
gTLDs will increase the need for defensive registrations. Alternative mech!
anisms for protecting trademark holders are being reviewed by ICANN that are
likely to protect trademark holders interests while preserving the benefits to
consumers of entry. In addition, data presented by Dr. Kende appears to
exaggerate the need for defensive registrations by failing to distinguish
between productive supplemental registrations which attract and maintain traffic
from those which are undertaken only to protect trademarks. Finally, this paper
explains that there is no apparent basis for Dr. Kende's suggestion that the
absence of price caps for new gTLDs will require elimination of price caps for
existing TLDs.</span></p>
<p style="text-align: center;" align="center"><b><span>New GTLDs and the Internet</span></b><span></span></p>
<p style="text-align: center;" align="center"><i><b><span>Openness
Change Innovation</span></b></i><span></span></p>
<p><span>After years of discussion and
thought, new generic top-level domains (gTLDs) are being expanded. They will
allow for more innovation, choice and change to a global Internet presently
served by only 21 generic top-level domain names. As a not-for profit
corporation dedicated to coordinating the Internet's addressing system, ICANN
is not doing this to add to its revenue. An implementation plan is being
developed with opportunities for public comment. There will be processes
for objections. There has also been detailed technical scrutiny to ensure the
Internet's stability and security. There will be an evaluation fee but it will
recover costs only (expenses so far, application processing and anticipated legal
costs).</span></p>
<p><span>Promoting competition and
choice is one of the principles upon which ICANN was founded. In a world with
1.5 billion Internet users (and growing), diversity, choice and innovation are
key. The Internet has supported huge increases in choice, innovation and
the competition of ideas, and expanding new gTLDs is an opportunity for more.</span></p>
<p><b><span>Media Contacts:</span></b><span></span></p>
<p><span>Brad White<br>
Director of Media Affairs<br>
Corporate Affairs<br>
ICANN<br>
Ph: +1.202.429.2710 <br>
E: <a href="mailto:brad.white@icann.org" target="_blank">brad.white@icann.org</a></span></p>
<p><span>International: Andrew
Robertson<br>
Edelman (London)<br>
Ph: +44 7921 588 770<br>
E: <a href="mailto:andrew.robertson@edelman.com" target="_blank">andrew.robertson@edelman.com</a>
</span></p>