Auction in New gTLDs

11 August 2008
Lahore, Pakistan

Important Suggestions Part - A,
for Policy preparation for
"Economic Case for Auctions in New gTLDs"

M/s ICANN has opened discussion forum "http://forum.icann.org/lists/auction-consultation/" and have published a paper from one of its contractor M/s Power Auctions LLC, to award new Top Level Domains (TLD) between two or more registry applicants.

This kind of effort is being made to resolve the dispute among two or more applicants for a TLD namespace. Fine, this will open a way and a common understanding in the community that a TLD name can be obtained through a monopolistic approach (by using the value of cash amount) will overcome on the transparency level of decision making.

I already have pointed out in February 2008 on different forums that it is going to be a gambling game when mechanism for issuance and delegation of new TLDs is not going to be identified.

During the latest discussion on ICANN blog this has never indicated that how much cost will be charged for the registration of New TLD. If I am not wrong, this is very hard to justify the non-refundable fee of US$50,000/- to submit with an Application, if it is rejected. Similarly how the individuals or non-commercial organizations can pay this non-refundable fee. ".....If ICANN has planning for the bidding the new .IDN TLDs, one can expect that only richest companies (monopolist) will achieve the .IDN names. And Internet will go in the hand of monopolists. This is against the policy of transparency”.
[http://forum.icann.org/lists/idn-cctld-issues/msg00011.html].

Adoption of auction method is to promote richest & wealthy organizations and individuals to occupy the Internet business and opening they way of corruption.

“This is similar to the method is being used with .Asia (dot Asia) domain registration for organizations. Multiple companies are being approached by different registrars to get registration domain names related to their business trade-mark and organization names, indicating that, otherwise we will allot this name to this & this company who approached us for it. Now when the trade name holding organization applied to obtain .Asia second level domain names, they says that according to our rules, there now competition has been established and this domain name will be auctioned among you and other company. They ask to submit their bid…...”. Who can stop them to exploit trade mark holders? No once because a pre defined rule support them.”

If we suppose that there are two competitor in the world for each of these TLDs Names:
A .ibm,
B .usa
C .army
Each one claim that he has the rights to own his TLD (.ibm or .usa or .army), this name will be auctioned (according to new proposal). The result of this auction may end on US$100,000,000/- or 1,000,000,000/- and the highest bidder is awarded this new TLD. Who is the main beneficiary in this auction, the organization who sold this name? M/s ICANN or who obtained the registry of this TLD (.ibm or .usa or .army). Now think about the feelings of the looser. Looser can be Ms/ IBM Organization, Community USA, or the power full Army of the world? Who will win the game. Who needs this big amount of the bids.

It is our request to M/s ICANN that please avoid to start such kind of competition in which lower or mid rage organization can not approach. Which is only build for upper class of richest organizations? How much funds M/s ICANN wants to earn. Where the earning will be distributed being a non-profit organization can. No where!

M/s ICANN is a responsible organization and we hope that they will discourage auction type games.