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

Prototypical answer:

gTLDFull Legal NameE-mail suffixDetail
.xinElegant Leader Limitedhichina.comView

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)?

Although Elegant intends to offer .XIN TLD to limited number of eligible registrant initially, it is expected that trademark owners may wish to apply for 2nd level string in this TLD. Elegant 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 Elegant with a substantially lower risk of fraud and⁄or scams for its customers. Elegant believes that the safeguards set forth in the Applicant Guidebook and the proposed business modeled outlined in Section 18a will minimize and potential negative social costs.

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

Elegant believes that the proposed operation of the .XIN 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. Elegant has full knowledge and experience (taken from HiChina’s registrar business operation) of how to best provide cost benefits to users, in which that China, the primary market .XIN gTLD targets initially, has been highly price sensitive in online marketplace. Elegant believes that by following the core corporate goals as identified in Section 18b 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?

Elegant 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 Elegant 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).

Elegant understands the discount benefits and price sensitivity to the market in China, and shall be ready to adopt advantageous pricing or discount if necessary. On the other hand, it is irresponsible for Elegant 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, Elegant will not make the decision of offering introductory discount pricing or bulk registration discount at this point. Meanwhile, Elegant is actively discussing with potential business partners such as Trustpass and Taobao.com for possible product bundle or online coupon which could be a cost benefit to .XIN registrant however, no details has been finalized yet.

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.

Elegant 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. Elegant shall be ready to further explore this option when necessary.

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