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<DIV dir=ltr align=left><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2><SPAN class=796083523-30082007>The Business and Commercial Users'
Constituency is </SPAN>deeply concerned about abusive registrations in existing
TLDs and in new TLDs. The GNSO Task Force’s Final Report re New TLDs does
very little to alleviate these concerns that well-known, large scale
cybersquatting practices will expand unabated into new TLDs. Part of the
reason for this omission is that solutions to abusive registration practices
need to address both existing and new TLDs, and this Task Force was not scoped
to address issues in existing TLDs.<o:p></o:p></FONT></SPAN></DIV>
<DIV class=Section1>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p><FONT
size=2> </FONT></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2>However, as the BC suggested in its Constituency Impact statement to the
Task Force (Part B, Part 7 of the Final Report), we remain highly concerned that
the proposed new TLD policy seems to ignore the problem of abusive registrations
almost entirely. As we said in our Constituency Impact Statement, without
substantial policy development designed to curb abusive registrations, we
foresee, upon introduction of more new TLDs, a world of increased opportunity
for abusive competitive practices and fraud -- including typo-squatting,
phishing, malware distribution and other forms of bad faith activity. We
then outlined a number of recommendations that could help to control these
abusive practices:<o:p></o:p></FONT></SPAN></P>
<UL style="MARGIN-TOP: 0in" type=disc>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l0 level1 lfo1"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>graduated sanctions
for contract non-compliance by Registries and Registrars
<o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l0 level1 lfo1"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>avoiding confusingly
similar domain names <o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l0 level1 lfo1"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>avoiding infringement
of third party prior rights especially trade mark rights
<o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l0 level1 lfo1"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>clear, quick and
low-cost procedures for dispute resolution and the removal of bad faith
registrations <o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l0 level1 lfo1"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>measures to prevent
abuse of personal data or other commercially-valuable data.
<o:p></o:p></FONT></SPAN></LI></UL>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2> <o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2>The Task Force has recommended that new TLDs not be confusingly similar
to existing TLDs, but otherwise has largely avoided these recommendations and
the issue of cybersquatting generally. It remains to be seen how this
confusing similarity standard for TLDs could be adjudicated in practice, given
the existing similarity of many existing TLDs (e.g. .com, .co, .cm<SPAN
class=796083523-30082007>, </SPAN><SPAN class=796083523-30082007> .cn,
.ch </SPAN>). The Task Force did not consider any other policy
recommendations to attempt to curb abusive registrations. Rather, the Task
Force has agreed to state potential Rights Protection Mechanisms (“RPMs”) as
Implementation Guidelines which could be employed by new TLD operators at their
option. A small ad hoc group is working to draft those RPMs, but it is
unclear whether new registry operators will choose to employ them since they
will have no obligation to do so.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p><FONT
size=2> </FONT></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2>Consequently, unless ICANN tackles the abusive registration problem
directly and implements new policies prior to public availability of domains in
any new TLDs, we expect that new TLDs may have a substantially negative impact
on business users from:<o:p></o:p></FONT></SPAN></P>
<UL style="MARGIN-TOP: 0in" type=disc>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l1 level1 lfo2"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>user confusion about
site ownership and subsequent reputational damage to well-known businesses
<o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l1 level1 lfo2"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>costs from diminished
user confidence in e-commerce <o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l1 level1 lfo2"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>wasted costs of
defensive registrations and online brand monitoring and enforcement
<o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l1 level1 lfo2"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>wasted costs in legal
and other actions to prevent avoidable criminal and cyber-squatting activity
<o:p></o:p></FONT></SPAN>
<LI class=MsoNormal
style="TEXT-ALIGN: justify; mso-list: l1 level1 lfo2"><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT size=2>wasted costs and
fraudulent losses to businesses and their customers from phishing and malware
sites. <o:p></o:p></FONT></SPAN></LI></UL>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2> <o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2>We hope that the new TLDs will only comprise a relatively small part of
the overall cybersquatting problem. The problem appears likely to remain
much more substantial in existing TLDs, particularly .com. Strong action
is needed to begin to curb that existing problem for online businesses, and
ensure it is not replicated in new TLDs. <o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p><FONT
size=2> </FONT></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2>We urge ICANN to continue its work to address domain tasting, as it most
certainly increases the volume of abusive registrations by allowing free use of
domains. We further urge ICANN to consider mandatory Rights Protection
Mechanisms and, in particular, a review of UDRP <SPAN
class=796083523-30082007> procedures </SPAN>and practices
designed <SPAN class=796083523-30082007> with the goal </SPAN>to
make the UDRP <SPAN class=796083523-30082007> rules </SPAN>more cost
effective and timely <SPAN class=796083523-30082007> to
enforce, </SPAN>in hopes that <SPAN
class=796083523-30082007> they </SPAN>could <SPAN
class=796083523-30082007> someday </SPAN>act as a deterrent to
cybersquatting. If ICANN continues to rely on the existing UDRP<SPAN
class=796083523-30082007> process</SPAN> as the sole, mandatory policy
designed to curb abusive registrations, then many online businesses will
continue to suffer significantly as many registrars, registries and ICANN
continue to <SPAN class=796083523-30082007>increase
revenue </SPAN>from this illegal activity. We further expect the
problem only will continue to grow in volume and intensity, as indicated by the
rapid rise of phishing and malware sites that are generally not subject to
rational resolution via the UDRP.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p><FONT
size=2> </FONT></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><FONT
size=2>In addition to clear, quick and low-cost procedures for dispute
resolution and the removal of bad faith registrations, the BC would also like to
see ICANN impose graduated sanctions on registrars and registries who are not in
compliance with their contracts, including <SPAN
class=796083523-30082007>any </SPAN>consensus policies yet to be developed in an
effort to curb cybersquatting. The BC is interested in all other ideas as
to how abusive registrations can be abated, and remains eager to participate in
any and all ICANN efforts to minimize them.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p><FONT
size=2> </FONT></o:p></SPAN></P>
<DIV>
<P class=MsoNormal><SPAN
style="FONT-SIZE: 12pt; COLOR: navy; FONT-FAMILY: Arial"><FONT size=2><FONT
color=#000000>Mike Rodenbaugh<o:p></o:p></FONT></FONT></SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 12pt"><FONT face=Arial><FONT
size=2>Officer, Business and Commercial Users
Constituency<o:p></o:p></FONT></FONT></SPAN></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></P></DIV>
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