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

Prototypical answer:

gTLDFull Legal NameDetail
.SaleDot-Sale LLCView

Dot-Sale LLC
Question 18C

Dot-Sale LLC intends to operate the .Sale top-level domain under a coherent, transparent and sustainable process to minimize social costs and maximize value for registrants and Internet users. The registry will correspond and comply with ICANN to incorporate the best practices and policies available. We will also coordinate with appropriate professionals and organizations to ensure and maintain the integrity of the TLD. Wherever possible, we will contribute our thoughts, ideas and initiatives in a constructive manner to improve these processes.

ICANN has indicated over time a series of consensus policies for new gTLD applicants to incorporate into their registration policies. It is our intention to monitor and comply with policies set by ICANN, and to contribute to the formation of a fair, professional and transparent process through the New gTLD program.

We will also remain open and responsive to prospective registrants and intend to develop initiatives to encourage participation at the appropriate stages. In this regard, our applications have already been compiled or reviewed to varying extents by Loeb and Loeb LLP, attorneys at law, Edward White & Co., LLP, certified public accountants, our registry services provider Afilias and TLD Assets LLC. A number of other former ICANN staff, registries and registrars, companies and consultants in a number of fields have also informally contributed to our understanding of the New gTLD Program and the appropriate policies. Please review below a compilation of policies intended to address the issues referred to in this question.

It is also our understanding that many of these policies are subject to modifications, particularly as a result of issues that may be generated from the new gTLD application process in 2012. As a potential registry operator, we have reviewed the current public information and taken numerous professional consultations.

Below is a preliminary description of policies for Dot-Sale LLC, which may be applied to issues of social cost and consumer vulnerabilities. Dot-Sale LLC plans to take additional consultations and interact with the appropriate governing bodies or service providers as necessary to update registration policies in relation to any potential changes by ICANN.

Trademarks & Dispute Resolution

The launch of .Sale will include the operation of a trademark claims service according to the defined ICANN processes for checking a registration request and alerting trademark holders of potential rights infringement.

Dot-Sale LLC will make a formal announcement to notify the public of an upcoming Sunrise period at least 30 days prior to the opening of Sunrise. Exact dates and parameters will be released prior to the beginning of Sunrise. Dot-Sale LLC intends to work the Trademark Clearinghouse to check and verify registered marks. Dot-Sale LLC also intends to fully comply with Uniform Dispute Resolution Policy (UDRP), Uniform Rapid Suspension (URS), Post-Delegation Dispute Resolution Policy (PDDRP), any other rights protection mechanisms (RPMs) and WHOIS requirements throughout the Sunrise and Landrush periods, and after standard registrations begin. Further detail and descriptions of RPMs are given in our response to Question 29.

Sunrise will consist of a period of at least 30 days. Trademark and service mark holders will be able to reserve marks that are an identical match in the .Sale domain. Recurring annual fees will be standardized in accordance with fees set at preregistration levels. Those wishing to reserve marks in the .Sale domain during the Sunrise Period must own a current trademark or service mark listed in the Trademark Clearinghouse.
Notice will be provided to all trademark holders in the Clearinghouse if someone is seeking a Sunrise registration. This notice will be provided to holders of marks in the Clearinghouse that are an Identical Match (as defined in the Trademark Clearinghouse) to the name to be registered during Sunrise.

Each Sunrise registration will require a minimum term of five years.

Dot-Sale LLC will establish the following Sunrise eligibility requirements (SERs) as minimum requirements, verified by Clearinghouse data, and incorporate a Sunrise Dispute Resolution Policy (SDRP). The SERs include: (i) ownership of a mark that satisfies the criteria set forth in section 7.2 of the Trademark Clearinghouse specifications, (ii) description of international class of goods or services covered by registration; (iii) representation that all provided information is true and correct; and (iv) provision of data sufficient to document rights in the trademark.

The SDRP will allow challenges based on the following four grounds: (i) at the time the challenged domain name was registered, the registrant did not hold a trademark registration of national effect (or regional effect) or the trademark had not been court-validated or protected by statute or treaty; (ii) the domain name is not identical to the mark on which the registrant based its Sunrise registration; (iii) the trademark registration on which the registrant based its Sunrise registration is not of national effect (or regional effect) or the trademark had not been court-validated or protected by statute or treaty; or (iv) the trademark registration on which the domain name registrant based its Sunrise registration did not issue on or before the effective date of the Registry Agreement and was not applied for on or before ICANN announced the applications received.

A Landrush period will be held following the Sunrise period. The Landrush period will last at least 30 days. Registration will be open to the general public. However, Dot-Sale LLC will make efforts to publicize the Landrush period. Landrush will not consist of on a first-come, first-serve basis, and is created primarily to allow the appropriate industries and individuals adequate time to apply for a domain. On a case-by-case basis, multiple applications for the same domain name may be subject to dispute resolution mechanisms or an auction. The Landrush period may be extended beyond 30 days. Terms and conditions will be set by Dot-Sale LLC prior to the launch of Landrush.

Abusive conduct will not be tolerated during preregistration or at any time, and an abuse point of contact will be maintained at all times.

After the completion of Sunrise and Landrush periods, standard registrations will begin, and domains will be awarded to registrants on a first-come first-serve basis.

Abusive Conduct & Terms of Use

An anti-abuse policy will be enacted and publicly released prior to sunrise and launch of the .Sale TLD.

Dot-Sale LLC will reserve the right to disqualify registrants or their agents from making or maintaining any registrations or reservations in the .Sale TLD if these registrants are found to have repeatedly engaged in abusive registrations, in its sole discretion.

Abusive use(s) of the .Sale domain should not be tolerated.
The nature of such abuses creates security and stability issues for the registry, registrars and registrants, as well as for users of the Internet in general. Dot-Sale LLC defines abusive use as the wrong or excessive use of power, position or ability, and includes, without limitation, the following:
- Illegal or Fraudulent Actions;
- Spam: The use of electronic messaging systems to send unsolicited bulk messages. The term applies to e-mail spam and similar abuses such as instant messaging spam, mobile messaging spam, and the spamming of Web sites and Internet forums. An example, for purposes of illustration, would be the use of email in denial-of-service attacks;

- Phishing: The use of counterfeit Web pages that are designed to trick recipients into divulging sensitive data such as usernames, passwords, or financial data;

- Pharming: The redirecting of unknowing users to fraudulent sites or services, typically through DNS hijacking or poisoning;

- Willful distribution of malware: The dissemination of software designed to infiltrate or damage a computer system without the ownerʹs informed consent. Examples include, without limitation, computer viruses, worms, keyloggers, and trojan horses;

- Fast flux hosting: Use of fast-flux techniques to disguise the location of Web sites or other Internet services, or to avoid detection and mitigation efforts, or to host illegal activities. Fast-flux techniques use DNS to frequently change the location on the Internet to which the domain name of an Internet host or name server resolves. Fast flux hosting may be used only with prior permission of Dot-Sale LLC;

- Botnet command and control: Services run on a domain name that are used to control a collection of compromised computers or ʺzombies,ʺ or to direct denial-of-service attacks (DDoS attacks);

- Distribution of child pornography; and

- Illegal Access to Other Computers or Networks: Illegally accessing computers, accounts, or networks belonging to another party, or attempting to penetrate security measures of another individualʹs system (often known as ʺhackingʺ). Also, any activity that might be used as a precursor to an attempted system penetration (e.g., port scan, stealth scan, or other information gathering activity).

Pursuant to Section 3.6.5 of the RRA, Dot-Sale LLC reserves the right to deny, cancel or transfer any registration or transaction, or place any domain name(s) on registry lock, hold or similar status, that it deems necessary, in its discretion; (1) to protect the integrity and stability of the registry; (2) to comply with any applicable laws, government rules or requirements, requests of law enforcement, or any dispute resolution process; (3) to avoid any liability, civil or criminal, on the part of Dot-Sale LLC, as well as its affiliates, subsidiaries, officers, directors, and employees; (4) per the terms of the registration agreement or (5) to correct mistakes made by Dot-Sale LLC or any Registrar in connection with a domain name registration. Dot-Sale LLC also reserves the right to place upon registry lock, hold or similar status a domain name during resolution of a dispute. Abusive uses, as defined above, undertaken with respect to .Sale domain names shall give rise to the right of Dot-Sale LLC to take such actions under Section 3.6.5 of the RRA in its sole discretion.

Dot-Sale LLC will maintain an Abuse Contact at all times from the opening of sunrise and continuing into the standard registration period.

Reserved Names

Dot-Sale LLC will also maintain a reserved list. Some of these names will be reserved for regulatory or informational purposes. ICANN has already determined several of these on behalf of registry operators. Examples can be found in Specification 5 of the sample New gTLD Registry Agreement provided by ICANN in the Applicant Guidebook. Dot-Sale LLC intends to fully comply with this list and any additions that may be made in the future.

Dot-Sale LLC will continue to take consultations in an effort to maintain this list and the .Sale domain in a sensitive and respectful manner. Dot-Sale LLC will reserve the right to disqualify registrants or their agents from making or maintaining any registrations or reservations in the .Sale TLD if these registrants are found to have repeatedly engaged in abusive registrations, in its sole discretion.

Some premium names will also be put on a reserved list and will be reserved for auction. Some premium names may be awarded to individuals or companies through a transparent process in the interest of developing key services or initiatives under the .Sale domain. For example, Dot-Sale LLC may host a “Founders Program,” whereby people may apply for a premium name and demonstrate a valuable use. This will be done within reason and on a limited basis.

Dot-Sale LLC will not intentionally attempt to put trademarked names on the premium section of the reserved list, and will cooperate with any appropriate rights protection mechanisms. Premium domains will be established prior to launch.

Trademark “frontrunning,” the process of registering trademarks for valuable domain names that have not been released to the general public for the sole purpose of securing the domain at a lower price, is deemed to be abusive to the registry and will not be recognized.

Finally, certain geographic names will be reserved and handled in accordance with procedures delegated by ICANN. For more detail on this section, please refer to Question 22.

Pricing Controls

Dot-Sale LLC fully intends to comply with the consensus policies outlined in sections 2.9 and 2.10, Article 2, of the sample New gTLD Registry Agreement provided in the New gTLD Applicant Guidebook, and to adapt to any changes made by ICANN in the future.

Summarizing these policies, Dot-Sale LLC intends to sell domains only through accredited ICANN registrars, to give clear and advance notices of prices or changes to prices for both initial sales and the renewal of domain registrations, to allow registrars and customers to purchase names for a period of 1-10 years and to comply with any further pricing control requirements that may be currently listed or later delegated by ICANN.

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