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

Prototypical answer:

As a restricted gTLD, registration will only be open to wholly-owned affiliate entities and select business partners having the Required License at this stage. No other third parties will be able to register domain names under .netflix domain space and the right to continue to hold the domain name registration is subject to the Required License remaining in effect.

Therefore, it is not anticipated that third party trademark owners will incur costs in relation to the .netflix gTLD since there is no public market in .netflix domain names and therefore so-called “defensive” registrations are both unnecessary and unavailable. The affiliate and authorized entities wishing to register domain names must comply with all the policy requirements for registration and Applicant will ensure that all such requirements are fully satisfied. Netflix will utilize the services of the proposed Trademark Clearinghouse to ensure that domain names registered and the use of those domain names, do not infringe any registered third party intellectual property rights.


18(c)i. HOW WILL MULTIPLE APPLICATIONS FOR A PARTICULAR DOMAIN NAME BE RESOLVED, FOR EXAMPLE, BY AUCTION OR ON A FIRST-COME⁄FIRST-SERVE BASIS?


The use of the proposed new gTLD will be restricted as set forth above. Therefore, conflicts between multiple applications will not occur.


18(c)ii. EXPLAIN ANY COST BENEFITS FOR REGISTRANTS YOU INTEND TO IMPLEMENT (E.G., ADVANTAGEOUS PRICING, INTRODUCTORY DISCOUNTS, BULK REGISTRATION DISCOUNTS).
This gTLD will be used for the advancement of Netflix’s strategy goals only, so pricing incentives are not applicable or relevant.

18(c)iii. 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 PLAN.

This gTLD will be used for the advancement of Netflix’s goals only, so pricing incentives or pricing increases are not applicable or relevant as no additional fees are to be charged.

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