18(b) How do you expect that your proposed gTLD will benefit registrants, Internet users, and others?

Prototypical answer:

gTLDFull Legal NameDetail
.LOREALLʹOréalView

18.2 HOW DO YOU EXPECT THAT YOUR PROPOSED GTLD WILL BENEFIT REGISTRANTS, INTERNET USERS, AND OTHERS?

L’Oréal believes that the proposed .LOREAL gTLD has the potential to offer the following benefits to Internet users and consumers:

-Establish a trusted source of information and online marketplace for the millions of consumers who purchase goods and services through L’Oréal’s websites, for investors and third parties seeking information, and for the general Internet user population;

-Provide L’Oréal and its qualified subsidiaries and affiliates with short and memorable Internet addresses; provide increased navigation to products, services, advertising campaigns, public interest content, public awareness initiatives, etc.;

-Through the adoption of new gTLDs by the wider Internet user community, consumers may benefit from a lower incidence of phishing and malware often associated with mistypes of domain names in the .COM or other spaces that are owned by cybersquatters, since consumers will be navigating to domain names in the .LOREAL gTLD;

-Minimize the cost and need for defensive registrations because domain names will only be allocated by L’Oréal within the .LOREAL gTLD to L’Oréal, its subsidiaries, and affiliates;

-Develop a potential platform for the secure access to, purchase of, and distribution of L’Oréal products and information to consumers, in order to minimize the potential for counterfeit or infringing goods and services; and

-Help to accelerate the development of secure and stable e-commerce platforms for all its brands.

Currently L’Oréal operates a number of corporate websites using a combination of second-level and top-level domain names. A representative sampling of L’Oréal websites that incorporate geographical identifiers into the domain name include:

LorealChina.com
Nihon-Loreal.co.jp
Kr.Loreal.com
LorealThailand.com
Loreal.de
Loreal.fr
Loreal.com.br
Loreal.com.mx

L’Oréal believes that the .LOREAL gTLD can provide an online single-source identifying function for its current and future customers around the world, instead of the present mix-and-match approach that L’Oréal is currently forced to resort to in delivering online content to consumers in each of the major world regions.

In new markets, L’Oréal grew nearly twice as fast as its competitors in the cosmetics market, thanks to its brands’ globalization and recognition in many developing countries. 36.8% of the companyʹs cosmetics sales were attributable to new markets, including those in Asia Pacific, Eastern Europe, Latin America, Africa, and the Middle East. L’Oréal believes that the .LOREAL gTLD can further accelerate its growth in these regions, especially those in which Internet use has been rapidly advancing, by providing an intuitive, single-source identifier for consumers to access its content in a secure space online.

18.2.1 WHAT IS THE GOAL OF YOUR PROPOSED GTLD IN TERMS OF AREAS OF SPECIALTY, SERVICE LEVELS, OR REPUTATION?

The primary mission and purpose of the .LOREAL gTLD is to provide a trusted, hierarchical, and intuitive online marketplace to aggregate L’Oréal content, information, and other goods and services. As L’Oréal continues to expand, the company will further pursue and develop opportunities to market and distribute its online content and products to consumers around the world, and on various platforms, including the Internet and mobile devices.

A comprehensive and pioneering digital strategy is at the heart of L’Oréal’s mission to reach over two billion consumers in the foreseeable future. Given that customers increasingly demand access to L’Oréal brands through a variety of channels, which include domain names, L’Oréal believes that the .LOREAL gTLD has potential to provide an innovative virtual avenue to L’Oréal products that will deepen and broaden the companyʹs relationship with consumers.

Most importantly, L’Oréal will be able to provide access to its products and online content in a secure namespace devoid of piracy, cybersquatting, and other malicious activities. While consumer products companies such as L’Oréal fight a never-ending battle to protect valuable intellectual property from piracy on the Internet, the .LOREAL gTLD would offer consumers a safe and intuitive means of accessing authorized content from L’Oréal and its affiliates. Providing consumers with a trusted experience is paramount to L’Oréal, and the .LOREAL gTLD will be used to further that goal.

L’Oréal is supportive of existing anti-cybersquatting legislation and consumer protection measures, including the U.S. Anti-Cybersquatting Consumer Protection Act (ACPA) as well as the equivalent in the European Union, the E-Privacy Directive. As L’Oréal invests in expanding the domain name space through the establishment of the .LOREAL gTLD, it will also actively prevent cybersquatting, fraud, phishing, and other malicious activities within the .LOREAL gTLD. Maintaining the highest standards within the .LOREAL gTLD will give L’Oréal the opportunity to take a proactive approach to protecting intellectual property rights and fostering a safer online experience for all Internet users.

18.2.2 WHAT DO YOU ANTICIPATE YOUR PROPOSED GTLD WILL ADD TO THE CURRENT SPACE, IN TERMS OF COMPETITION, DIFFERENTIATION, OR INNOVATION?

As a branded gTLD, the primary driving factors of the .LOREAL gTLD are differentiation and innovation. The success of the gTLD will be measured not by the number of domain names registered, but rather by the levels of consumer recognition and trust that are placed in the .LOREAL gTLD. Using this benchmark, L’Oréal will strive to build consumer recognition and trust through usage of the .LOREAL gTLD that rise to the levels found in the .EDU and .GOV gTLDs.

As noted above, L’Oréal is a leading global consumer products company that leverages numerous distribution channels and emerging technologies to deliver its online content and consumer goods to customers internationally. The .LOREAL gTLD has the potential to serve as a cornerstone of this online strategy.

18.2.3 WHAT GOALS DOES YOUR PROPOSED GTLD HAVE IN TERMS OF USER EXPERIENCE?

L’Oréal believes that the .LOREAL gTLD will provide a single, trusted ecosystem experience for the millions of consumers worldwide who purchase the company’s products, as well as those who seek information about L’Oréal, including investors and members of the press. Consumers will know that domains and content on .LOREAL are owned and controlled by L’Oréal and are thus more likely to be protected from infringing, pirated, or harmful content.

The initial use of the .LOREAL gTLD will involve a limited number of second-level domain names. This initial use will provide L’Oréal the ability to ensure seamless and secure access to L’Oréal’s websites and interoperability with various software and Web⁄mobile-based applications. Once appropriate security and stability issues have been satisfactorily addressed, L’Oréal will likely begin allocating domain names for internal corporate use and may redirect new .LOREAL domain names to pre-existing content. This phased rollout will likely take place over a multi-year period, subject to change depending upon a range of external factors.

At the same time, L’Oréal will evaluate potential strategies to migrate traffic away from the current network of second-level domains registered in various gTLDs, to the .LOREAL gTLD, which offers the potential to provide customers with a single, trusted online source for L’Oréal products and services.

18.2.4 PROVIDE A COMPLETE DESCRIPTION OF THE APPLICANT’S INTENDED REGISTRATION POLICIES IN SUPPORT OF THE GOALS LISTED ABOVE.

L’Oréal currently intends for the .LOREAL gTLD to be used exclusively by L’Oréal and its qualified subsidiaries and affiliates. Because of this condition, and because the LʹOréal mark is a valuable brand, the protection of which is paramount to the company, L’Oréal intends to address registration and use requirements in its qualified subsidiary and affiliate agreements, rather than in a domain name registration agreement.

L’Oréal will, of course, incorporate all required ICANN consensus policies and other legal⁄policy requirements imposed on new gTLD applicants into the terms and conditions of the domain name registration agreement that each qualified subsidiary and affiliate will execute.

18.2.5 WILL YOUR PROPOSED GTLD IMPOSE ANY MEASURES FOR PROTECTING THE PRIVACY OR CONFIDENTIAL INFORMATION OF REGISTRANTS OR USERS? IF SO, PLEASE DESCRIBE ANY SUCH MEASURES?

As a global retail company, L’Oréal respects the privacy of its customers and other consumers. The company employs a variety of physical, electronic, contractual, and managerial safeguards to protect personal and confidential information in its stores and on its websites. L’Oréal will take similar precautions to protect registrant and user data associated with the .LOREAL gTLD. Furthermore, due to the fact that, at least initially, every domain name will be registered to L’Oréal or a qualified subsidiary of affiliate, L’Oréal has a vested interest in ensuring that accurate and current domain name information is readily available in connection with each .LOREAL domain name.

L’Oréal will ensure that the operation of the .LOREAL gTLD will be consistent with L’Oréal’s Statement of Privacy Principles, available on its website at http:⁄⁄www.loreal.com⁄_en⁄_ww⁄tools⁄privacy⁄privacy_1.aspx.

In addition, L’Oréal intends to incorporate contractual language in its Registry-Registrar Agreement (RRA) modeled after language that has been included in the template Registry Agreement that has been successfully utilized by existing ICANN gTLD Registry Operators. The template Registry Agreement states, “Registry Operator shall (i) notify each ICANN-accredited registrar that is a party to the registry-registrar agreement for the TLD of the purposes for which data about any identified or identifiable natural person (“Personal Data”) submitted to Registry Operator by such registrar is collected and used under this Agreement or otherwise and the intended recipients (or categories of recipients) of such Personal Data, and (ii) require such registrar to obtain the consent of each registrant in the TLD for such collection and use of Personal Data. Registry Operator shall take reasonable steps to protect Personal Data collected from such registrar from loss, misuse, unauthorized disclosure, alteration or destruction. Registry Operator shall not use or authorize the use of Personal Data in a way that is incompatible with the notice provided to registrars.ʺ

L’Oréal also recognizes that this is an evolving area of law for which there is no international standard.

18.2.6 DESCRIBE WHETHER AND IN WHAT WAYS OUTREACH AND COMMUNICATIONS WILL HELP TO ACHIEVE YOUR PROJECTED BENEFITS.

L’Oréal sees the potential for the .LOREAL gTLD to play a large role in the company’s future online strategy. While the extent of likely benefits is currently uncertain due to questions of consumer recognition, the adoption of new gTLDs, and the response from search engines in the marketplace, all of which may influence the communication, marketing and use strategies of the gTLD, L’Oreal anticipates a phased-in approach to using and promoting the gTLD, as described above.

As a first step, L’Oréal plans to start using .LOREAL domain names initially to redirect to content available on existing .COM domains. Subsequently, L’Oréal expects to initiate a targeted, pilot rollout using select gTLD domain names as primary addresses and, after careful analysis and study of this rollout, L’Oréal may engage in a broader initiative, should the results be satisfactory and in accordance with the company’s overall strategic goals. The actual usage of .LOREAL domain names will dictate what public communications and consumer outreach is done to encourage navigation to the .LOREAL gTLD, including advertising, media outreach, in-store communications, email campaigns, etc.

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