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Friday, July 1, 2011

Domain Name Expansion May Contribute to Branding Obstacles

Recently the Internet Corporation for Assigned Names and Numbers (ICANN) announced a significant change in the makeup of the current domain name system. ICANN is responsible for overseeing online addresses, and has approved to widen the choice of domain endings to include nearly any word in any language.

The potential downside to the new domain expansion is branding interference. The expansion creates an opening for competitors or general opportunists to purchase a nearly limitless amount of domains associates with a company’s brand.

However, domain extensions will not be obtained without an application or a hefty price. The charge to apply for a domain extension with ICANN is $185,000, plus a $25,000 yearly fee for those who gain control of the domain. There is an ongoing debate as to whether these fees are to prevent domain extension abuse or if ICANN is just trying to increase their profits.

Domain-Name Bosses Approve Huge Expansion

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