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ICANN AUTHORIZES A VIRTUAL REDLIGHT DISTRICT

By Megan L. Petrus

ICM1 has been long lobbying for the creation of a new .xxx domain name for the adult entertainment industry.  Despite an official rejection of the .xxx domain name by the Bush Administration in 2005 and current protests from both free-speech proponents and conservative political and religious groups alike, the Internet Corporation for Assigned Names and Numbers (“ICANN”)2 recently granted ICM the right to manage and support the new domain name.  The .xxx domain name will be available only for internet providers of adult entertainment.  The goal being to create a virtual red-light district, which signals clearly to internet browsers the underlying nature of the website’s content.

As with anytime a new domain name is created, a cyber land rush is expected to ensue.  A new domain name is a fertile ground for cyber squatters looking to drive traffic, to in this case their more salacious websites, by capitalizing on the goodwill of an established business.  Fortunately, ICM created a “Sunrise” period in which trademark owners can apply to “opt-out” of the .xxx domain name.  If a trademark owner’s application to opt-out is accepted by ICM, then use of their domain name is permanently blocked from the .xxx registry.  The Sunrise period runs from September 7, 2011 to October 28, 2011.  An opt-out application costs anywhere from $200-$300 dollars and is available to anyone with a pre-existing website or registered trademark.  Companies that do not currently maintain an online presence and have also not registered their trademarks or tradenames can still apply to opt-out; however, they will be subject to reoccurring fees to keep their intellectual property off the registry.  If a trademark owner fails to opt-out, or if a third party registers their name under the .xxx domain before the trademark owner files its opt-out application, then the owner’s only recourse is to pursue traditional legal remedies for intellectual property infringement.  And while this may offer little comfort to the John Smiths of the world, individuals should know that ICM will not permit anyone to register a first or last name that does not belong to them.

1 ICM Registry, LLC is a private company.

2 ICANN is an international, public benefit, non-profit organization.  It was created through a Memorandum of Understanding between the U.S. Department of Commerce and to transition management of the Domain Name System from the U.S. government to the global community.