Questions to and Answers from Applicant for .tel

ICANN Questions:

ICANN is in the process of reviewing Telnic's TLD Application. As outlined in the October 23, 2000 TLD Application Review Update which appears at http://www.icann.org/tlds/tld-review-update-23oct00.htm, ICANN may "gather the additional information [it] require[s] by posing specific questions to applicants in e-mail and requesting a written response."

Keeping in mind the goal to evaluate applications to operate or sponsor new TLDs in as open and transparent a manner as possible, both the questions posed by ICANN and the Applicant's responses will be publicly disclosed on the ICANN website.

Accordingly, ICANN requests your reponses to the following questions:

1. State in detail your position as it relates to possible legal claims by certain applicants and/or non-applicant third parties based on alleged trademark, patent or other violations of purported rights in the TLD identified in your application.

2. If you receive a new TLD, state whether you will indemnify ICANN for claims arising from legal challenges regarding your right to operate the new TLD. If you will indemnify ICANN, identify and describe in detail the resources you propose to utilize for the indemnification.

Telnic Responses:

1. Telnic Limited ("Telnic") has created and developed the ".TEL" idea over a 5 year period, and has been waiting for an opportunity to convert this forward-looking Internet concept into practice.

In the hope of being granted the ".TEL" TLD, Telnic has over recent years invested a great deal of time, strategic-planning, and investment in preparing for this opportunity. This includes preparing a solid foundation and strategy to meet possible eventualities that may arise concerning IPR - as referred to in the above question.

Telnic's protective position is extensive and already in place and should strongly and confidently safeguard the integrity of .TEL in the event of challenges to the standing and stability of the new TLD in respect of IPR, as well as other key aspects of the TLD.

Given Telnic's commitment so far, ICANN can be assured that Telnic has and will take all reasonable steps to protect .TEL and Telnic's entire TLD business in every respect. Our organisation intends to deal with any claims brought against us/the new TLD by third party trademark, patent or other intellectual property right owners on a case by case basis, with sufficient resources and commitment as may be required.

2. In principle, Telnic agrees to indemnify ICANN for any claims arising from legal challenges regarding Telnic's right to operate the new and open ".TEL" TLD.

The subject of indemnities is of course wide, and naturally further discussions will need to be carried out between ICANN and Telnic to define the parameters and substance of such an indemnity.

Issues that Telnic propose to discuss with ICANN would include, without limitation, the following:

    a) Defining the circumstances in which the indemnity will apply;
    b) The [equal]/[equitable] sharing of costs between successful applicants and ICANN, if a general claim is brought against ICANN for acting ultra vires in granting new TLDs; and
    c) Any limitations on the indemnity.

Telnic will develop a robust resource contingency to be utilized in such an indemnity. Already Telnic has significant investment in place and waiting to be apportioned to meet such requirements. However, we would actively plan to expand this required resource to cover the unknown complexities of any future indemnity. Therefore we would wish to progress a multi-component resource channel comprising:
    1) Dedicated Investment Contingency. A dedicated contingency earmarked from the significant investment Telnic has in place.
    2) Key Insurance. Telnic is already in discussions with the London Insurance Market to obtain cover in part or whole for this type of important indemnity. However, considering the time constraint on Telnic to respond to ICANN's questions, this is not fully concluded. Telnic will inform ICANN of its findings for this form of cover in due course.
    3) Revenue Contribution. An ongoing .TEL revenue percentage draw-down to contribute to an "indemnity fund".

These resources will be managed in such a way so as to satisfy ICANN at any given instance. In addition, Telnic undertakes to carry out IPR Risk Reviews using appropriately qualified companies to ensure that sufficient resource is in place to meet possible future claims.

This response represents only part of Telnic's planning on the subject matter that is central to the above questions. Overall, Telnic proposes a non-contentious solution that manages the essential registration and operations process of a .TEL TLD in a way that is firstly receptive to the interests and direction of the Internet, and secondly, it provides important flexibility and creative innovation for .TEL end-uses and solutions. As the first to originate the concept of .TEL we believe that our approach and plans represent a positive step forward for the Internet and DNS, and importantly a path that will present the least problems and conflicts.

Comments concerning the layout, construction and functionality of this site
should be sent to webmaster@icann.org.

Page Updated 05-November-2000
(c) 1998-2000  The Internet Corporation for Assigned Names and Numbers. All rights reserved.