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

gTLDFull Legal NameE-mail suffixDetail
.artDadotart, Inc.deviantart.comView
18.3.1 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)?

Dadotart believes the proposed operating rules that undertake to initially reserve key names including trademarks, as well as its proposed policies on eligibility, name selection and name use will provide clarity and predictability to name registration, thereby reducing social costs. In full operation the .ART gTLD will provide a trusted online environment for the arts community. There should be no need for other trademark and brand owners to defensively register in the gTLD. This verified eco-system also provides consumers with a single trusted source for arts information and communication. Dadotart also believes that the safeguards set forth in the Applicant Guidebook and the proposed business modeled outlined in Sections 18.1 and 18.1.2 and the policies planned and noted in 18.2.4 will minimize and potential negative social costs.


18.3.2 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?
Dadotart believes that the proposed operation of the .ART gTLD as set forth in this application has no known negative consequences or cost implications for consumers. To the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to consumers. Dadotart believes that by following the core values as identified in Section 18.2 it will be able provide real value to the consumer and minimize any potential negative consequences⁄costs.

More particularly, the three phases of PAB creation, pre-launch, and launch and ongoing registration of the .ART gTLD are designed to minimize social costs and negative externalities. They protect potential registrants and potentially affected parties while maximizing the value of the name space to its registrants and users.

This approach is based on the premise that extensive screening efforts by the registry in the early stages will create a fair and orderly name space with lower compliance costs in the long term.

18.3.3 How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?
In phases and areas where the first-come-first-served principle tends to yield perverse results, alternative modes will be used.

(1) In the PAB creation phase community research will identify names to be entered into reserved lists and the rules by which they will be allocated;
(2) In the pre-launch phase key portal names of use to the entire community will be registered and used for communication and outreach; and
(3) A launch phase led by protection for and registration by trademark holders and those eligible to hold names on reserved lists.


It is anticipated that the pre-launch portal development program identified in (2) above will involve key participants in the Art Community. The portal development program will allocate domain names based on an open and transparent project selection process. This process is highly economical in terms of social costs and yields substantial external benefits.

The portal development program is an essential part of .ART outreach. It begins before delegation of the TLD. In terms of workload and it mainly affects proposers who themselves are required to demonstrate support for their projects. Support will be required to come from the segment of the community concerned with the respective portion of the name space. Given the high value of the resulting on-line resources for the community and the public interest, and given the economic benefits that can be derived from their operation, the administrative effort is largely justified. To further protect affected parties, all adjudications in name space mandates have a safety-valve clause, allowing for later adjustments based on community input. The principle of the safety-valve is that affected parties can obtain adjustments to a component of a mandate if they propose (and commit to) an improved use of the underlying domain names from a public interest perspective.

The launch programs referred to in (3) above combine the so-called “sunrise” and “landrush” processes simultaneously in one phase. The use of domain applications instead of domain registrations means that the registry accepts multiple applications the same domain name. (By contrast, only a single registration can exist for a given domain.) In this way, contention resolution can take place without time pressure in a transparent, fair and orderly manner.


At the time of ongoing registration the first-come rule will be followed. Registrations will be checked in a post-validation process and subject to an enforcement program based on statistically targeted random investigation and complaint follow-up. This program minimizes both costs to registrants and third parties. In particular, it strongly diminishes the attractiveness of rights violations, abuse or malignant behavior. Having been preceded by a controlled launch phase, the validation and enforcement workload faces no resource bottleneck and thus achieves a high degree of credibility, further dissuading abuse from the start. This mode of operation has a strong positive side effect in the interest of trademark holders.


18.3.3 How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?
As described below, during pre-launch and launch phase, the first-come-first-served principle is NOT applied. Adjudication by auction is one of the solutions available to the parties in the context of the contention resolution process. In the phase of ongoing registrations the first-come⁄first-served basis of name allocation will be followed, unless the name is one that is on a reserved list, in which case the allocation rules applicable to that list will be followed.

In phases and areas where the first-come-first-served principle tends to yield perverse results, alternative modes will be used.

(1) In the PAB creation phase community research will identify names to be entered into reserved lists and the rules by which they will be allocated;
(2) In the pre-launch phase key portal names of use to the entire community will be registered and used for communication and outreach; and
A launch phase led by protection for and registration by trademark holders and those eligible to hold names on reserved lists.

It is anticipated that the pre-launch portal development program identified in (2) above will involve builders and users in the Art community. The portal development program will allocate domain names based on an open and transparent project selection process. This process is highly economical in terms of social costs and yields substantial external benefits.

The portal development program is an essential part of .Art outreach. It begins before delegation of the TLD. In terms of workload, it mainly affects proposers who themselves are required to demonstrate support for their projects. Support will be required to come from the segment of the community concerned with the respective portion of the name space. Given the high value of the resulting on-line resources for the community and the public interest, and given the economic benefits that can be derived from their operation, the administrative effort is largely justified. To further protect affected parties, all adjudications in name space mandates have a safety-valve clause, allowing for later adjustments based on community input. The principle of the safety-valve is that affected parties can obtain adjustments to a component of a mandate if they propose (and commit to) an improved use of the underlying domain names from a public interest perspective.

The launch programs referred to in (3) above combine the so-called “sunrise” and “landrush” processes simultaneously in one phase. The use of domain applications instead of domain registrations means that the registry accepts multiple applications the same domain name. (By contrast, only a single registration can exist for a given domain.) In this way, contention resolution can take place without time pressure in a transparent, fair and orderly manner.

At the time of ongoing registration the first-com rule will be followed. Registrations will be checked in a post-validation process and subject to an enforcement program based on statistically targeted random investigation and complaint follow-up. This program minimizes both costs to registrants and third parties. In particular, it strongly diminishes the attractiveness of rights violations, abuse or malignant behaviour. Having been preceded by a controlled launch phase, the validation and enforcement workload faces no resource bottleneck and thus achieves a high degree of credibility, further dissuading abuse from the start. This mode of operation has a strong positive side effect in the interest of trademark holders.

18.3.4 Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).
The focus of the .ART gTLD is a competitive cost to registrants and stakeholders that takes into account the limited community nature of the gTLD. This takes into account all burdens, including the effort needed to register or the potential alternative cost to obtain a name on the secondary market. The direct per-unit cost is merely a component of the bottom-line cost.

The cost is greatly reduced by avoiding contention between legitimate community-based applicants and speculators. Community-specific promotion code programs will be used from time to time to offer registrations at low cost. This is a way to avoid perverse effects of low prices, such as speculation with ultimately high costs to registrants, large-scale confusion and waste of the name space, or cybersquatting.

The portal development program will have special terms in order ensure that key portions of name space are used in the public interest.

18.3.5 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.

The .ART TLD will not be based on or otherwise involve contractual clauses regarding price escalation between the .ART Registry and its registrars.

The .ART business plan is designed to avoid any future necessity to increase registry price in real terms. The fundamental principle is prudence: starting from conservative price levels that allow self-sustainability at the registration levels projected and gradually lowering prices as registration volumes increase beyond the minimum necessary for self-sustained operation. This method ensures sufficient financial reserves, favors optimal allocation of domain names, helps prevent misuse and supports an orderly registration process.

gTLDFull Legal NameE-mail suffixDetail
.beautyTop Level Domain Holdings Limitedgmail.comView
18c Rules
This applicant, like most organizations, takes its good reputation seriously. We are fully cognizant, for example, that artistic, political, economic and social issues, all of which can be associated with beauty, often provoke heated debate and are at times controversial. However, we recognize and support the free speech rights of both registrants and Internet users as fundamental rights and believe that such free speech rights are important to the success of the .BEAUTY business plan. We believe that any plan to stifle free speech would be more harmful to .BEAUTY’s reputation and business success than any attempt by us to govern speech. That being said, to protect .BEAUTY’s reputation and the associational benefits it offers registrants and Internet consumers, we will actively promote and enforce our Acceptable Use and Abuse Prevention policies and procedures, which we believe will effectively combat improper or unlawful unprotected speech and online conduct. We believe that these mechanisms will be effective in assuring the reputation of the .BEAUTY top-level domain, its registrants, Internet Users, as well as the public.

The .BEAUTY top-level domain will be marketed to registrants who want to associate themselves, their products, services, thoughts, ideas or anything else in a positive way with beauty, as well as to those who want to communicate with them in an easily identifiable way. Therefore we believe that the great majority of registrants who apply for a .BEAUTY domain name will do so because of its association with or because they want to reach those who do, and not for other reasons. In these ways, the .BEAUTY top-level domain will bring a special association with beauty to the top-level domain name space.

We are dedicated to protection of third-party rights and prevention of abusive uses of the .BEAUTY domain name. We intend to achieve this goal by crafting our Naming Policy, Acceptable Use Policy, and other policies to be readily understandable and easily accessible, and by making sure that our mechanisms for enforcing rights and preventing abuse (such as our Complaint Resolution Service) operate effectively, efficiently, and fairly. In addition, we will ensure that they work symbiotically with other ICANN-mandated rights protection mechanisms such as the UDRP.

We have crafted a draft framework for registration of .BEAUTY domains that fully supports the goals and benefits set forth above. Our draft registration framework is based on advice from ICANN, WIPO, applicable laws, and a variety of other expert sources. Specifically, the .BEAUTY draft framework includes these interrelated sets of agreements setting forth our policies and regulations, all of which registrants must agree to be bound by:

- The Registrant Agreement, which registrars contracted with .BEAUTY must present to registrants. This is a collateral agreement to the Registrar Registry Agreement (detailed below), and will bind registrants to .BEAUTY’s Acceptable Use Policy (as detailed below), .BEAUTY’s Privacy & Whois Policy (detailed below), ICANN-mandated rights protection mechanisms (including the Universal Dispute Resolution Policy (“UDRP”), and the Complaint Resolution Service;

- The Acceptable Use Policy (“AUP”), which details the proper use of domain names that end in .BEAUTY, which is incorporated by reference in the Registrant Agreement that registrants must agree to;

- The Privacy and Whois Policy, which describes how a registrant’s personal data is to be used, which is also incorporated by reference in the Registrant Agreement;

- The Registrar-Registry Agreement, which is the contract between .BEAUTY and its ICANN-accredited registrars, which sets forth, inter alia, the duties and obligations of the registrar with respect to .BEAUTY registrants and the .BEAUTY registry; and

- The Naming Policy, which sets out .BEAUTY’s policies governing prohibited, blocked or reserved domain names.

These agreements and policies are designed to ensure transparent and non-discriminatory policies for the registration of .BEAUTY names; fair and competitive pricing; protection of personal data and privacy; adherence by registrars and registrants to the AUP; protection of trademarks, the names of natural and legal persons and other property rights; prevention of the registration of illegal terms; and the prevention violations of the law. Moreover, our policies promote competition among registrars, combat abuse of the DNS, address cybercrime, protect intellectual property rights, and align the .BEAUTY top-level domain with applicable regulatory and legislative environments and Internet registry best practices.

These policies will effectively support the key mission, purposes and goals of the .BEAUTY top-level domain, which is to allow registrants who want to associate themselves with, while at the same time protecting third-party rights and preventing abuse.

We specifically examined more restrictive registration policies, such as limiting registration to members of organizations with a specific tie to beauty. We rejected such limitations because they would interfere with .BEAUTY’s primary mission, purpose and goals--which is to encourage as many registrants as possible to associate themselves with beauty for any legal purpose. Factors that we took into account when considering a more restrictive registration policy included:

- Our recognition that registrants of a .BEAUTY domain name will self-select because they have an interest in beauty, naturally reducing the number of potential registrants; and, because restrictive policies such as, for example, requiring membership in a specific organization or organizations, would exclude many legitimate registrants from obtaining a .BEAUTY domain name. For example, and by way of illustration, if membership an organization were required for registration, businesses and charitable organizations that would find a .BEAUTY top-level domain name an effective marketing tool would be excluded from registering a .BEAUTY domain name as they might not be eligible to be members in an organization that accepted only natural persons for membership.

With respect to protecting registrant privacy and confidential information, we will comply with all applicable ICANN rules, including Whois policies, and all applicable laws, rules and regulations of appropriate jurisdictions. Registrant privacy and use of confidential information are set forth in our Privacy & Whois Policy. Information concerning updates and changes to the Privacy & Whois Policy will be promptly and prominently displayed on the .BEAUTY web site.

.BEAUTY’s back-end registry services provider will also be required to employ industry-standard procedures to prevent the unauthorized or illegal access of registrant privacy or confidential information.

With respect to users, .BEAUTY’s Registration Agreement will require that all registrants comply with any and all applicable laws, rules or regulations concerning user privacy and confidential information for applicable jurisdictions; failure to do so may result in suspension or loss of their .BEAUTY name and may, in addition, result in legal actions by appropriate authorities.

We plan to minimize social costs primarily through clearly written, widely disseminated, and easy-to-understand policies. Our Acceptable Use Policy clearly delineates unacceptable behavior and prohibited content by registrants using domain names in the .BEAUTY zone.

Our rules concerning applications for the same domain name establish clearly delineated rules, and will be published well in advance. They provide adequate safeguards for the rights of all participants as well as expeditious and cost-effective challenge procedures in the event of disputes.

During the Sunrise period and Landrush periods, multiple applications for the same name will be resolved by auction. UDRP or URS will be used if there are disputes as to rights to a name.

After Sunrise and Landrush, domain names will be allotted on a first-come, first-serve basis. All domains are subject to UDRP and URS challenges.

At all times, .BEAUTY’s Complaint Resolution Service will be available to registrants and the public in the case of alleged prohibited use or content.

.BEAUTY does not envision special discounts for different classes of registrants, but may consider such offers in the future. We may offer introductory discounts for first-time registrants in .BEAUTY. Bulk registration discounts are not being considered at this time.

.BEAUTY plans to make contractual commitments to registrants regarding the magnitude of price increases. .BEAUTY will contract with its registrars that any percentage increase in renewal and first registration fees will be applied uniformly across all registrations, and that notice of any price increases will be provided on the registrar’s website and by the registrar to registrants via email six months or more in advance.