18(c) What operating rules will you adopt to eliminate or minimize social costs?

Prototypical answer:

gTLDFull Legal NameDetail
.SCJOHNSONJohnson Shareholdings, Inc.View

18.3.1 What operating rules will you adopt to eliminate or minimize social costs (e.g., time or financial resource costs, as well as various types of consumer vulnerabilities)?

Johnson Shareholdings’ proposed operating rules to limit registration to SC Johnson and its qualified subsidiaries and affiliates will provide a number of benefits, as well as a trusted online environment for consumers of SC Johnson content and other information and services. Trademark and brand ownersʹ costs will be mitigated, since there will be no need to defensively register second-level domains in .SCJOHNSON. In addition, this verified ecosystem will provide consumers with a single, trusted source for SC Johnson content with a substantially lower risk of exposure to phishing, fraud, and⁄or other Internet scams, thus reducing the level of consumer vulnerability.


18.3.2 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?

Johnson Shareholdings believes that the proposed operation of the .SCJOHNSON gTLD as set forth in this application has no known negative consequences or cost implications to consumers. On the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to consumers.


18.3.3 How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?

Johnson Shareholdings does not envision multiple applicants for the same domain name, as domain names will only be allocated to SC Johnson and its qualified subsidiaries and affiliates, at least for the first three years of operation.


18.3.4 Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

Johnson Shareholdings does not envision any advantageous pricing, introductory discounts, or bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .SCJOHNSON gTLD as a trusted online source identifier for SC Johnson and its qualified subsidiaries and affiliates. Moreover, Johnson Shareholdings plans to provide domain name registrations to SC Johnson and its qualified subsidiaries and affiliates, at no cost, though Johnson Shareholdings reserves the right to reevaluate this decision and may choose to impose a nominal fee in the future.


18.3.5 Note that the Registry Agreement requires that registrars be offered the option to obtain initial domain name registrations for periods of one to ten years at the discretion of the registrar, but no greater than ten years. Additionally, the Registry Agreement requires advance written notice of price increases. Do you intend to make contractual commitments to registrants regarding the magnitude of price escalation? If so, please describe your plans.

Johnson Shareholdings is committed to providing the domain name registration periods set forth in the Registry Agreement. However, as noted above, the registration and use of a .SCJOHNSON domain name is conditional upon a separate affiliate relationship with SC Johnson.

Therefore, providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. Additionally, as noted above, the current business model envisions Johnson Shareholdings providing domain name registrations at no cost.

Johnson Shareholdings acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.” However, SC Johnson and its qualified subsidiaries and affiliates, as the sole registrants within the .SCJOHNSON gTLD, intend to only register domain names on an annual basis through a single registrar.

This is done to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46 (e.g., no multi-year registration or deferred revenue).

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