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

gTLDFull Legal NameE-mail suffixDetail
.MERCKMerck Registry Holdings, Inc.fairwindspartners.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)?

MRH has proposed operating rules to limit registration to MRH and potentially qualified subsidiaries and affiliates and will provide a trusted online environment for end-users.

Therefore, one way in which social costs will be eliminated is that there will be no defensive need for other trademark and brand owners to register second-level domains in the .MERCK gTLD. In addition, the .MERCK gTLD will provide end-users with a trusted source for MRH information, goods, and services.

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

MRH believes that the proposed operation of the .MERCK gTLD as set forth in this application has no known negative consequences or cost implications to end users. On the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to end users.

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?

MRH does not envision multiple applicants for the same domain name, as domain names will only be allocated to its parent company, MSD, and potentially MSD’s qualified subsidiaries and affiliates.

18.3.4 Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

MRH does not envision any advantageous pricing, introductory discounts, or bulk registration discounts at this time because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .MERCK gTLD as a trusted online source identifier for MSD, and potentially its qualified subsidiaries and affiliates.

Moreover, it is the current intention of MSD to have MRH provide domain name registrations initially at no cost, at least for the first five years of operation.

However, the company reserves the right to reevaluate this decision and may choose to impose a fee in the future. Any potential registrant fees imposed upon licensees or strategic parties will be commensurate with commercial agreements and made if this class of registrants is permitted to register domain names in the .MERCK gTLD.

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.

MRH is committed to providing the domain name registration periods set forth in the Registry Agreement. Moreover, it is the current intention of MSD to have MRH provide domain name registrations initially at no cost, at least for the first five years of operation. Therefore, providing contractual commitments in a domain name Registrant Agreement regarding the magnitude of price escalations does not seem relevant or appropriate. MRH acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.”

MRH acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.” However, MSD, as the sole registrant within the .MERCK gTLD, intends to only register domain names on an annual basis through a single registrar.

This is done to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46, (e.g., no multi-year registration or deferred revenue).
gTLDFull Legal NameE-mail suffixDetail
.alibabaAlibaba Group Holding 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)?

Alibaba believes the proposed approach to initially limit registration to Alibaba Group and the CIU (see Section 18a) will provide a trusted online environment for consumers of Alibaba’s services. Therefore there is 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 Alibaba and Alibaba with a substantially lower risk of fraud and⁄or scams for its customers. Alibaba also believes that the safeguards set forth in the Applicant Guidebook and the proposed business models 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?

Applicant believes that the proposed operation of the .Alibaba gTLD as set forth in this application has no known negative consequences or cost implications on consumers. On the contrary, the proposed operation of this .Alibaba gTLD registry will likely lead to direct and quantifiable benefits to consumers. Applicant believes that by following the core corporate values as identified in Section 18b, it will be able to 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?

Applicant does not envision multiple applicants for the same domain name, as domain names will initially only be allocated to Applicant and the CIU. If and when Applicant decides to permit third party registrations within the gTLD, Applicant will evaluate and decide upon a best in class allocation mechanism consistent with its strategic corporate interests.


Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

Applicant does not envision any pricing, introductory discounts, bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .Alibaba gTLD as a trusted online identifier. Moreover, it is the current best thinking of Alibaba that .Alibaba domain name registrations will be provided at no-cost.

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.

Applicant is committed to provide the domain name registration periods set forth in the registry agreement. However, as noted above as .brand gTLD the registration and use of the domain name is conditioned upon the registrant being Alibaba Group themselves or its CIU. Therefore providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. Additionally, as noted above, the current approach of Applicant that .Alibaba domain name registrations will be provided at no-cost.