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

Prototypical answer:

In line with Booking.com’s mission and purpose for the .booking gTLD, it is first and foremost important for Booking.com to safeguard and protect the key element out of its BOOKING.COM trademark at the top level of the DNS’ hierarchy. Such protection does not only extend to the actual registration, delegation and use of the TLD, but also to the domain names that are registered therein, and how these domain names are used.

Considering the fact that the actual award and delegation of the .booking gTLD to Booking.com is subject to the successful evaluation of our application, we have not yet defined in detail:

* the types of domain names that will be registered;
* who will be entitled to select which domain names will be registered
* who will be entitled to register such domain names;
* who will be entitled to use such domain names, and
* which types of use will be allowed or recommended.

As we believe that the development and implementation of one or more business cases could likely take a couple of months or even years, we have only focused on a number of high-level characteristics of our plans in relation to the operation of the .booking gTLD.

By all means, it is in Booking.com’s self-interest to, on the one hand, make the most of this initiative, promote its own business interests, and mitigate risks for its brand and brand reputation, whilst also reducing the (social) costs for others.

In this context, we intend to devise policies that encompass and comprise the following features:

At least during the initial months or even years following the delegation of the .booking gTLD to Booking.com, this extension is likely going to be a so-called “single registrant TLD” as contemplated by ICANN in Article 4.5 of the template Registry Operator Agreement (“Transition of Registry upon Termination of Agreement”). For the avoidance of doubt, a “single registrant TLD” is a TLD where “(i) all domain name registrations in the TLD are registered to, and maintained by, Registry Operator for its own exclusive use, and (ii) Registry Operator does not sell, distribute or transfer control or use of any registrations in the TLD to any third party that is not an Affiliate of Registry Operator.”

Therefore, parties who are not Booking.com will not be entitled to register domain names in the .booking gTLD.

Booking.com believes this to be in line with two of the main elements in its vision and mission statement, namely:

* Protecting and safeguarding the BOOKING.COM brand and its reputation, by keeping full control over the entire operation of the .booking registry and every domain name registered therein; and

* Guaranteeing to Booking.com’s key stakeholders who are interacting with Booking.com, by using domain names registered in .booking that they are in fact interacting with the brand owner.

Consequently, there will be no (social) costs for non-eligible (third) parties, given the fact that they will be unable to register domain names in the .booking gTLD in the first place.

However, even if only Booking.com will be entitled to register domain names, this does not exclude the hypothesis that disputes may arise with one or more third parties as regards domain names that are registered in the .booking gTLD.

In order to avoid these risks, Booking.com intends to implement the following policies and processes:

First, the domain names to be registered by Booking.com will likely relate to the following:

* registered trademarks of Booking.com;
* names of affiliates or hotel partners of Booking.com;
* names of departments within Booking.com
* names of subsidiaries.

Furthermore, Booking.com envisages registering a fair number of generic words that are directly or indirectly related to the day-to-day business activities and operations of Booking.com and its Affiliates.

Prior to effectively registering such domain names in the .booking gTLD, Booking.com will require its legal department to review the list of these domain names on a regular basis in order to satisfy itself that they will not infringe the rights of third parties.

In any case, Booking.com shall claim to have a legitimate interest in these domain names, as they are merely descriptive of the activities, products or services of Booking.com. So even if one or more of these domain names would be protected by a registered trademark, held by a third party, it is likely that a claim under the Uniform Dispute Resolution Policy or Uniform Rapid Suspension policy will fail.

As regards the names referred to in Specification 5 to the template Registry Operator Agreement, Booking.com will follow the processes and procedures established by ICANN and the Governmental Advisory Committee.

If Booking.com would determine, at its sole discretion, that it will gradually allow certain categories of stakeholders to register domain names in the .booking gTLD in their own name, Booking.com will devise policies to that effect.

However, Booking.com will at all times be entitled to restrict, limit or expand, among others:

* the category or categories of stakeholders who will be entitled to register one or more domain names in the .booking gTLD, including their criteria for qualification;
* the choice of domain name(s) registered in the .booking gTLD by and per such eligible stakeholder (category);
* the use made by an and per eligible stakeholder of a domain name registered in the .booking gTLD;
* the transfer of domain names registered in .booking..

Booking.com shall reserve the right to subject the registration or use of a domain name to internal approval processes and procedures, at each and every step of the domain name life cycle.

Given the fact that Booking.com may release such available domain names post launch in a highly controlled manner, this also reduces the likelihood that two or more applicants qualify for the registration of the same domain name in the .booking top-level domain;

As a method of last resort, and subject to the actual domain name registration policy adopted by the Registry Operator and in force at the time of registration, domain names will be allocated on a first-come, first-served basis.

In any event, Booking.com reserves the right to change or restrict any policies, procedures and practices at any point in time, especially if it is of the opinion that there would be a risk that, e.g. the reputation of the BOOKING.COM brand would be damaged.

The Applicant intends to make the .booking top-level domain available to qualifying domain name registrants at no cost to them; if the Applicant ⁄ Registry Operator would be required to charge a fee for the registration of domain names under the .booking TLD, the fee will be set at a cost-recovery or arm’s length basis, to be determined at that time by the Registry.

If Booking.com will be required to or would decide to increase the fees for the registration of domain names, such increases will keep pace with the comparable market rates at that point in time.

So, in brief:

1. The Applicant ⁄ Registry Operator may reserve, delegate and use a potentially large number of domain names that are directly or indirectly relevant to Applicant’s business in its own name. Since some of these domain names could be of a descriptive nature, the chances for qualifying ⁄ eligible applicants ⁄ registrants to register such domain names after the launch will be limited;

2. The Registry Operator shall be entitled at all times to release available domain names post launch in a highly controlled manner, which also reduces the likelihood that two or more applicants qualify for the registration of the same domain name in the .booking top-level domain;

3. As a method of last resort, and subject to the actual domain name registration policy adopted by the Registry Operator and in force at the time of registration, domain names will be allocated on a first-come, first-served basis;

4. If the Applicant decides to allow third parties to register a domain name under the .booking TLD, the Applicant intends to make.booking top-level domains available to qualifying domain name registrants at no cost to them; if the Applicant ⁄ Registry Operator would be required to charge a fee for the registration of domain names under the .booking TLD, the fee will be set at a cost-recovery or arm’s length basis, to be determined at that time by the Registry;

5. If the Applicant ⁄ Registry Operator will be required to increase the fees for the registration of domain names, such increases are intended to keep pace with comparable market rates. However, the Registry Operator shall at all times be entitled to bundle the registration of domain names with other products or services offered by or on behalf of Booking.com at a fee to be set by the Registry Operator.

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