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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
.ShoujiQIHOO 360 TECHNOLOGY CO. LTD.360.cnView
Although 360 intends to offer .Shouji TLD to eligible registrant, it is expected that trademark owners may wish to apply for 2nd level string in this TLD. 360 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 360 with a substantially lower risk of fraud and⁄or scams for its customers. 360 believes that the safeguards set forth in the Applicant Guidebook and the proposed business model outlined in Section 18(a) will minimize and potential negative social costs.


What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?
360 believes that the proposed operation of the .Shouji 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. 360 has proven track record of providing cost benefits to users, in which that China, the primary market 360 operates, has been highly price sensitive in online marketplace. 360 believes that by following the core corporate goals as identified in Section 18(a) 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?
360 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 360 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).
360 understands the discount benefits and price sensitivity to the market it currently serves, and shall be ready to adopt advantageous pricing or discount if necessary. On the other hand, it is irresponsible for 360 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, 360 will not make the decision of offering introductory discount pricing or bulk registration discount at this point.


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.
360 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. 360 shall be ready to further explore this option when necessary.