ICANN is getting closer to launching the second stage of the New gTLD Program. However, one of the main issues standing in the way, the Closed Generic domains, remains unresolved, and moreover, the prospects for resolving it look less bright. Closed Generics are domain names that match commonly used dictionary words. But domain registries use them as branded domains solely for their own purposes, closing the possibility of third-party registrations.
At first, ICANN had nothing against Closed Generics, and the number of such applications exceeded 180 during the first application round. For example, L’Oreal wanted to use .MAKEUP, and Symantec wanted .ANTIVIRUS. However, ICANN’s Governmental Advisory Committee (GAC ICANN) took a disliking to these applications. Its members insisted that Closed Generics could only be used if the registries act in the interests of the society. It is almost impossible to prove this, or even define the interests of the society. As a result, ICANN decided to temporarily ban the delegation of Closed Generic domains, so most applicants withdrew their bids, while others resorted to clever tricks to make formally open domains essentially closed (the most obvious way is by charging exorbitant prices for registration).
However, ICANN fully intends to resolve this issue at the next stage of the new gTLD program. There was a hint of a breakthrough a year ago when a working group with representatives of GAC ICANN and GNSO (Generic Names Supporting Organization) was formed. The members of the working group decided to refuse to consider two extreme options: prohibiting Closed Generics under any circumstance or allowing Closed Generics without restrictions or limitations.
Unfortunately, the efforts of the working group have not yet produced the expected results. Domain Incite notes that the final communique of ICANN76, which concluded a few days ago in Cancun, says: "In view of the initial outputs from the facilitated dialogue group on closed generics, involving representatives from the GAC, GNSO and At-Large, the GAC acknowledges the importance of this work, which needs to address multiple challenges. While the GAC continues to be committed to the facilitated dialogue, no policy option, including the prohibition of Closed Generics, should be excluded if no satisfactory solution is found." This makes it look like GAC ICANN is going back on the commitments it made a year ago. It cannot be ruled out that this is just an ICANN GAC negotiation process, and yet the situation raises great concern in observers.
