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

Prototypical answer:

gTLDFull Legal NameDetail

Although 360 intends to offer .XIHUAN TLD to eligible registrant, it is expected that trademark owners may wish to apply for 2nd level string in this TLD. 360 shall conform to necessary requirement in the ICANN New gTLD program Applicant Guidebook as well as ICANN Registry Agreement in regards to trademark protection (i.e. utilization of trademark clearinghouse on required Sunrise and Trademark Claim services, URS, etc.), as well as relevant domestic and international rules or best practices. This shall also provide eligible registrants and users at-large with a single trusted source for 360 with a substantially lower risk of fraud and⁄or scams for its customers. 360 believes that the safeguards set forth in the Applicant Guidebook and the proposed business model outlined in Section 18(a) will minimize and potential negative social costs.

What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?
360 believes that the proposed operation of the .XIHUAN gTLD as set forth in this application has no known negative consequences or cost implications on consumers. To the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to consumers. 360 has proven track record of providing cost benefits to users, in which that China, the primary market 360 operates, has been highly price sensitive in online marketplace. 360 believes that by following the core corporate goals as identified in Section 18(a) it will be able provide real value to consumer, and minimize any potential negative consequences⁄costs.

How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?
360 plans to refer to past gTLD operation practices to resolve multiple applications for a particular domain name in a fair, predictable, and transparent way. This would include, and not limited to: Request for Proposal (RFP), public or private auction based on set(s) of policy and business requirements, lottery, or first-come⁄first-serve basis. Multiple applications may be processed at once or in batch, depending on various internal and external factors. This allocation policy will not be determined until 360 completely evaluates and decides upon a best in class allocation mechanism that can include and balance the interest of rights holders, registrants, registrars resellers, as well as users in general.

Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).
360 understands the discount benefits and price sensitivity to the market it currently serves, and shall be ready to adopt advantageous pricing or discount if necessary. On the other hand, it is irresponsible for 360 to determine any pricing strategy at this point, in which such strategy may sacrifice registry’s long-term profitability and lead to financial risk of the registry. Therefore, 360 will not make the the decision of offering introductory discount pricing or bulk registration discount at this point.

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.
360 is committed to providing the domain name registration periods set forth in the registry agreement. However, as noted above the registration and use of the domain name is conditioned upon the eligibility of a registrant initially, providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. 360 shall be ready to further explore this option when necessary.

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gTLDFull Legal NameDetail
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