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

Prototypical answer:

gTLDFull Legal NameDetail
.LILLYEli Lilly and CompanyView

18.3 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)?

Lilly’s proposed operating rules limiting registration to Lilly and its qualified subsidiaries and affiliates, at least for the first three years of operation, will provide a trusted online environment for consumers to access Lilly’s online content, and will minimize social costs by default. This system will also provide consumers with a single, trusted source for information regarding Lilly’s products and services with a substantially lower risk of fraud, misdirection, infringement, or scams that have plagued consumers in .COM and other open gTLDs. Lilly does not anticipate consumer vulnerabilities; therefore, one way in which social costs will be minimized is that other trademark owners will not need to defensively register second-level domains in the .LILLY gTLD. For these reasons, Lilly believes the .LILLY gTLD may help to eliminate some of the vulnerabilities that Lilly’s consumers face in the wider Internet today.

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

Lilly believes that the proposed operation of the .LILLY 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 benefits to consumers, as already described in this application.

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

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

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

Lilly does not envision the implementation of any advantageous pricing, introductory discounts, or bulk registration discounts because these registrations would be limited to Lilly and its qualified subsidiaries and affiliates, provided at no cost, at least for the first three years of operation.

18.3.4 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.

Lilly is committed to providing the domain name registration periods set forth in the Registry Agreement. However, as noted above, the registration of domain names is conditioned upon an affiliate or subsidiary relationship with Lilly, at least for the first three years of operation. Therefore, providing contractual commitments regarding the magnitude of price escalations does not seem appropriate.

Lilly 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, Lilly and its qualified subsidiaries and affiliates, as the sole registrants within the .LILLY gTLD, currently intend to register domain names on an annual basis. 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 of this application, i.e., no multi-year registration or deferred revenue.

Similar gTLD applications: (2)

gTLDFull Legal NameDetail
.CIALISEli Lilly and CompanyView
.DELLDell Inc.View