The 73rd ICANN conference that ended last week brought news about the fate of the so-called Closed Generics domains. Apparently, their delegation may be allowed at the next stage of the program for new gTLDs, according to Domain Incite. However, the conditions under which this will happen have not yet been determined.
It is worth recalling the background of the question. The term Closed Generics refers to top-level domains whose names are commonly used dictionary words, and in which names cannot be registered by anyone other than the registry itself and its exclusive partners. For example, imagine that the McDonald's chain takes control of the .BURGERS domain and prevents all other burger chains and restaurants from registering names in it.
In the first phase of the New Generic Domains program, there were no specific restrictions on Closed Generics. However, they were strongly opposed by the ICANN Governmental Advisory Committee. Its representatives counted 186 cases of Closed Generics among applications for new domains and stated that under such conditions, domains can be delegated only if they are of obvious public importance. ICANN Board has heeded this sentiment and suggested that the relevant applicants either change the terms to open registrations to third parties or withdraw their applications.
Most companies have adopted the new rules. Some, however, immediately found loopholes that made it possible to make formally open domains essentially closed. The most obvious way is to set a sky-high price for registration of names and its renewal. The Closed Generics issue remains one of the major stumbling blocks to opening the next phase of the New Domain Program, and ICANN intends to solve it. The corporation has announced that neither a total ban on the registration of Closed Generics, nor their permission without any restrictions are acceptable, therefore, it is necessary to work out the conditions under which such domains can exist. This task will be taken up by a working group of representatives from the Governmental Advisory Committee (GAC) and the Generic Names Supporting Organization (GNSO). GAC and GNSO representatives have already welcomed this initiative. The work of the group is expected to begin before the 74th ICANN meeting in June.
