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New Domain Names Herald Latest Land Grab

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In the past, there were relatively few top-level domains, the most famous of which is .com (there’s even an entrepreneur who named himself after it).  Other members of this set of generic top-level domains include .edu, .mil, .gov, and .org.  In addition, country code top-level domains — such as .ky for Cayman Islands and .be for Belgium — fill out the roster.

Enterprising companies sometimes use the serendipity of country code domains to make creative URLs for themselves or to protect real estate around their corporate trademarks.  For example, Inky.com, which  is working on a new email client, bought up in.ky to prevent squatters from taking it (and perhaps to use as an actual domain should they ever have enough money to move some of it to the Cayman Islands as an offshore tax haven).

The folks at Mudcu.be, who built a lovely color piano music visualizer have nothing to do with Belgium as far as I can tell, but the .be suffix makes for a handy branding opportunity.

Until now, ICANN, which was formed in 1998, has “coordinated” the domain system.  But ICANN itself has been somewhat controversial.  Based in Los Angeles, it is perceived by some people outside the United States as geographically biased.  The reason such bias matters is that domain names have a high marketing value.  Just ask the folks at sex.com, who reportedly bid $14 million for the domain in 2006.

There is already a history of ICANN empowering other organizations to redistribute domains.  ICANN grants so-called sponsored top-level domains to particular organizations, which can restrict registration to qualified entities.  For example, .aero, which is controlled by Société Internationale de Télécommunications Aéronautiques, is reserved for organizations in the air-transportation business.

In 2011, ICANN decided to open up the domain system so that an almost infinite variety of names could be registered.  Aside from the obvious reason that the 22 existing top-level domains had been well picked over by then, this move was likely motivated, at least in part, by the seductive idea of making something out of nothing.  You see, this virtual real estate is worth some serious coin, $185,000 to set up a domain and $25,000 annually thereafter.  ICANN has to make a living somehow.

Many companies are anxious to lock up their own brands as a defensive measure.  Applications already include .apple, .jeep, and .staples.

And some obvious corner locations — like .casino, .spa, and .inc — are just too good not to go after.

But clearly, this is a rich man’s game, and only the well heeled or consortia banding together to come up with the rent can manage it.

Thus, we have the latest controversy, as Amazon.com steps up to buy .book, .author, and .read.  If I ever wanted to publish a book and use RogerKay.book, I’d have to rent it from Amazon, should the company receive ICANN approval.  Apparently, Amazon wants to go into the domain business wholesale, as it has also put in a request for .movie, .app, .wow, and others.

I can imagine that some people down at Paramount Pictures, Universal Studios, Sony Pictures Entertainment, and 20th Century Fox might be a bit wary of the .movie one.  And Apple might not look so kindly on the application for .app, given its grumpiness over Amazon’s use of the term “App Store.”

Other companies besides Amazon are looking at similar land grabs.  Microsoft is, of course, interested in locking up .microsoft, but also has applied for .bing, .azure, .docs, .live, .office, .windows, and several others.

Google doesn’t show up as an applicant, but applications can be made by proxy, and the search company isn’t going to be fenced out of this latest bonanza.  Domains .goog, and .google fall into applications by Charleston Road Registry Inc., which also has .youtube, .store, .search, .plus, and, in competition with Microsoft, .docs among its approximately 100 registrations.  Charleston Road happens to be based in Mountain View, CA, the same town as Google’s headquarters.

Those 100 domains will cost a cool $18,500,000 just to set up and $2,500,000 to maintain, but in a world where the rich get richer, Google will surely turn many times that over the next several years.

It’ll be the rest of us outside the fence looking in.

© 2013 Endpoint Technologies Associates, Inc.  All rights reserved.

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