1

.au Policy

Review Panel

w w w. a u d a . o r g . a u

Panel Correspondence:C/O Secretariat

PO Box 18315

Melbourne VIC 3001

policy.review@auda.org.au

Implementation of Second Level Domain

Name Registrations (Direct Registration) Issues Paper October 2017

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ContentsTERMSOFREFERENCE............................................................................................................................3

QUESTIONS.............................................................................................................................................4

Introduction...........................................................................................................................................5

Purpose..............................................................................................................................................5

Stakeholderinput...........................................................................................................................6

Makingasubmission..........................................................................................................................6

Background............................................................................................................................................7

.auccTLD...........................................................................................................................................7

AdvisoryPanels..............................................................................................................................7

.auDomainNameSystem..................................................................................................................7

Generalprinciples..........................................................................................................................7

.auStructure...................................................................................................................................8

DomainNameMarket......................................................................................................................10

Primarymarket.............................................................................................................................10

Secondarymarket........................................................................................................................11

Previousstakeholderconsultation...............................................................................................11

Internationalexperience..................................................................................................................12

UnitedKingdom............................................................................................................................13

IssuesandOptions...............................................................................................................................15

PriorityRegistrationRights...............................................................................................................15

Cut-offdate..................................................................................................................................15

Competingclaimsresolutionprocess...........................................................................................17

New2LDs..........................................................................................................................................22

ReservedNames...............................................................................................................................22

ImplementationProcess..................................................................................................................24

StagedProcess.............................................................................................................................24

Concurrentreservationandgeneralavailabilityprocess.............................................................25

AnnexureA...........................................................................................................................................27

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TERMSOFREFERENCETheauDABoardhasconvenedthePolicyReviewPaneltomakerecommendationson:

(1) thedevelopmentofanimplementationpolicyfordirectregistration;and(2) policyreform,ofthepoliciessetoutinAnnexure“A”.

ThePanelinperformingitsfunctionsmusthaveregardto2015NamesPolicyPanelFinalReportrecommendationsaswellasthefollowingmatters:

a) establishingmechanismstoensureauDAisresponsiveandaccountabletothesupplyanddemandsidesoftheAustralianInternetCommunity;

b) promotionoffairtrading;c) promotionofconsumerprotection;andd) adoptingopenandtransparentprocedureswhichareinclusiveofallpartieshavingan

interestinuseofthedomainnamesysteminAustralia.1ChairJohnSwinson,PartnerKing&WoodMallesonsastheChair.MembersThePanelcomprisestheChairandthefollowingmembers:BrettFenton SupplyclassNedO’Meara DemandclassProfessorAndrewChristie AcademicPaulZawaACCC GovernmentRegulatorNarelleClarkACCAN Consumerprotection Businessrepresentative ConsultationThePanelwillundertakeatleasttwopublicconsultationsoneachstageofthepolicyreformprocess,andmayusearangeofconsultationmechanisms,includingworkinggroupsandonlineandfacetofaceforums.TheChairwillprovideregularprogressreportstotheauDABoard.auDAwillprovidesecretariatandotheroperationalsupporttothePanel.

1Constitutionof.auDomainAdministrationLtd,cl3.2

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QUESTIONS

1. What date should be chosen as the cut-off date for determining registrant eligibility forpriorityregistrationofthesecondleveldomainname,andwhy?

2. Shouldregistrantsofdomainnamesatthefourthlevelwithinedu.auandgov.aubeeligibleforpriorityregistration?Ifso,whatrulesshouldapply?

3. Whatprocessshouldbeimplementedtoresolvecompetingclaimstothesame.aunameandwhy? Should registrantswhose claim is unsuccessful be given priority to register anothersecondleveldomainname?

4. Howmuchtimeshouldpriorityregistrantshavetoexercisetheirrighttoregisterthematchingsecondlevelnamebeforeitismadeavailabletothepublicforregistration?

5. Shouldcertainnamesbereservedforfutureuseas2LDs?Pleaseindicatewhichnamesandwhytheyshouldbereservedasfuture2LDs?

6. Aretherenameswhoseuseisnotprohibitedatlawthatshouldbereserved?

7. Shouldnamesthatarepotentiallyconfusingormisleadingwhenregisteredatthesecondlevelbereserved(ienotavailableforregistration)?

8. Shouldnamesthatareadeliberatemisspellingoftheexisting2LDsbeprohibitedfrombeingregisteredatthesecondlevel?

9. Should direct registration be implemented in .au using a staged process or concurrentreservationandopenavailabilityprocess,andwhy?

10. Shouldotherregistrantsorrightsholdersbegivenpriorityduringthelandrushorreservationperiodtoregisterasecondleveldomainname(trademarkowners)?

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Introduction

1. .auischanging.On18April2016,theBoardof.auDomainAdministrationLimited(auDA)approvedsecondleveldomainnameregistrationin.au,knownasdirectregistration.DirectregistrationwillgiveAustralianusersoftheInternetthechoiceofregisteringanamedirectlybeforethedotin.au,forexample,yourname.au.Theexisting2LDswillcontinuetooperateasdedicateddomainsforbusinesses,notforprofits,government,educationandindividuals.DirectregistrationwillnotonlyprovideAustralianuserswithadditionalchoicebutwillalsosignalthatAustraliaisadigitaleconomymovingwiththetimes.

2. ThePolicyReviewPanelhasbeenaskedtoexamineandmakerecommendationsontheimplementationofdirectregistrationandpolicyreform.Thepolicyreformprocesswillensurethatalldomainnamesin.auaresubjecttoauniformregulatoryregimethatisrobustandresponsivetoemergingissues.

3. ThePolicyReviewPanel(‘thePanel’)isundertakingitsworkprogramintwophases:

• Phase1:implementationofdirectregistration;and

• Phase2:policyreform.

4. Thefirstphasewillbeexamininganddevelopingatransitionalpolicyfortheimplementationofdirectregistration.Itisintendedthatdirectregistrationwillbeimplementedunderthenewpolicies(determinedinPhase2)nottheexistingsuiteofpolicies.However,theexistingpolicieswillhaveanindirecteffectindeterminingwhichregistrantswouldbeeligibleforpriorityregistrationofasecondleveldomainname.Anyimperfectionswiththosepolicyrules,whichwillbeaddressedonlyduringthesecondphase,willhaveimpactinthesunriseperiodfordirectregistration.Whilearegistrantmaybeeligibleforpriorityregistrationrights,theywouldstillberequiredtomeetanyeligibilityandotherrequirementsforthesecondleveldomainname(Phase2).Itisintendedthatthenewpolicies(Phase2)anddirectregistration(Phase1)willbelaunchedatthesametime.

5. Inthesecondphase,thePanelwillexamineanddevelopthepolicyruleswhichapplytosecondleveldomainnameregistrationaspartofitsreviewofexistingauDApublishedpolicies.Thisapproachreflectsthe2015NamesPolicyPanelFinalReportrecommendationthattheexistingsuiteofauDAPublishedPoliciesshouldapplytodirectregistration,includingthe2LDeligibilityandallocationrules.Alldomainsregistereddirectlyinthe.auspacewillbesubjecttoauDAPublishedPolicies.ThePaneldrawsstakeholderattentiontothefactthatthesepoliciesmaychangeaspartofthepolicyreformprocessbeingundertakenduringPhase2,andthiswillalsoimpactdirectregistration.

6. AllauDAPublishedPolicieswillapplytoregistrationofadomainnameatthesecond,thirdandfourthlevels.

Purpose

7. ThePanelisconsultingstakeholdersonthedevelopmentofanimplementationpolicyfordirectregistration(Phase1).TheTermsofReferencerequirethePanelinmakingrecommendationstotheBoardtohaveregardto:

a) the2015NamesPolicyPanelFinalReportrecommendations,

b) promotionoffairtradeandconsumerprotection,

c) establishingmechanismstoensureauDAisresponsiveandaccountabletothesupplyanddemandsidesoftheAustralianInternetCommunity;and

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d) adoptingopenandtransparentprocedureswhichareinclusiveofallpartieshavinganinterestinuseofthedomainnamesysteminAustralia.

ThePanelisnotrevisitingthemeritsofdirectregistration.2

8. ThePanelisconsideringtwoissuesraisedbythe2015NamesPolicyPanelFinalReport:

(1) givingexistingregistrantsacrossall2LDsprioritytoregistertheexactmatchingsecondleveldomainname;3and

(2) reservingcertainnamesforuseasnew2LDsorotherpurposes.4

9. The2015NamesPolicyPanelFinalReportdidnotmakeanyformalrecommendationsonpriorityregistrationrightsforexistingregistrantsandthecreationofnew2LDs.

Stakeholderinput

10. ThePanelisinvitingstakeholderinputonthreekeyimplementationissues:

• priorityregistrationrightsforexistingregistrantstothematching.auname,andallocationmethod;

• reservationofnamesforfutureuseas2LDsorotherpurposes;and

• mechanismsforimplementingdirectregistration.

11. ThePanelhasidentifiedoptionsforaddressingkeyimplementationissuesasatechniquetofocusstakeholderdiscussion.Stakeholdersarewelcometoproposealternativeoptions.

12. Stakeholdersareinvitedtomakesubmissionsonanyofthematerialcontainedinthisdiscussionpaper,includingbackgroundmaterialandanalysis.ThePanelisinterestedintheimpactonstakeholders’businessesorservicedeliveryandonconsumersandthepublicshouldanyoftheoptionsbeimplemented.

13. ThePanelwillundertakeasecondroundofpublicconsultationafterreviewingthesubmissions,whichmayinvolvethepublicationofapreferredoptionspaperordraftpolicy.

Makingasubmission

14. ThePanelinviteswrittensubmissionsbycloseofbusinessonFriday10November2017.Submissionscanbeemailedtopolicy.review@auda.org.auorbypostto:

PolicyReviewPanelc/o.auDomainAdministrationLtdPOBox18315MELBOURNEVIC3001

15. AllsubmissionswillbemadepubliclyavailableontheauDAwebsite<www.auda.org.au/policies/panels-and-committees/2017-policy-review-panel>,unlessmarkedconfidential.Intheabsenceofaclearindicationthatthesubmissionisconfidential,thePolicyReviewPanelwilltreatthesubmissionaspublic.ThePolicyReviewPanelwillnotconsidernorpublishanonymoussubmissions.

2TheauDABoardatitsmeetingof18April2016approvedtheintroductionofdirectregistrationwithoutreservation,andrequestedthedevelopmentofanimplementationplanhttps://www.auda.org.au/about-auda/our-org/board-meetings/.ThePolicyReviewPanelTermsofReferencerequirethePaneltodevelopanimplementationpolicyfordirectregistration.ItisnotwithinthescopeofthePanel’sTORstorevisitthemeritsofdirectregistration.

32015NamesPolicyPanel,2015NamesPolicyPanelFinalReport(December2015)94Ibid

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Background.auccTLD

16. .auisthecountrycodeTopLevelDomain(ccTLD)forAustralia.The.auccTLDisadministeredby.auDomainAdministrationLimited(auDA)underagreementswiththeAustralianGovernmentandtheInternetCorporationforAssignedNamesandNumbers(ICANN)forthebenefitoftheAustraliancommunity.

17. TheroleofauDAistobetheadministratorof,andself-regulatorypolicybodyfor,the.auccTLDanditsassociatedsecondleveldomains(2LDs).5Asaself-regulatorypolicybody,auDAsetsthepolicyrulesfortheregistration,renewalandcancellationof.audomainnamelicences.ThesepolicyrulesaredevelopedafterconsultationwiththeAustralianInternetCommunity.

18. TheAustralianInternetCommunitymeanstheusersandsuppliersofservicesviatheInternet,basedinAustralia.6Thisbroaddefinitionincludesconsumers,businesses,government,notforprofits,educationalserviceprovidersandassociations.

AdvisoryPanels

19. TheauDABoardusesadvisorypanelstoprovideindependentandobjectiveadviceondevelopingandimplementingpoliciestoregulate.au.Anadvisorypanelhasnobindingdecisionmakingauthority.TheauDABoardmayacceptandimplementtherecommendationsofanadvisorypanel,inwholeorpart.

20. Anadvisorypanel’sremitissetoutintheauDAConstitutionandtermsofreference.Advisorypanelsarerequiredtodeveloppoliciesthatpromoteconsumerprotection,fairtradeandcompetitionandareinclusiveofallpartieshavinganinterestintheuseofthedomainnamesysteminAustralia.InformationonthePolicyReviewPanelandpreviouspanelscanbefoundontheauDAPanelsandCommitteeswebpage.

.auDomainNameSystem

Generalprinciples

21. Currently,therearethreefundamentalprinciplesthatunderpinthe.audomainnameregistrationsystem:(1)noproprietaryrightsinadomainname,(2)nohierarchyofrightsand(3)firstcome,firstserved.

(1) Noproprietyrightsinadomainname.Aregistrantdoesnot‘own’adomainnamebuthasalicencetouseanddisposeofthedomainnameforaspecifiedperiodandsubjecttocertaintermsandconditions.7Aregistrantmaydisposeofthedomainnamebytransferringittoathirdparty,cancellingthelicenceorfailingtorenewthelicence.

Alicencetouseanddisposeofadomainnamegivesaregistrantexclusiveuseofthedomainnameinthe2LDinwhichitisregistered.Thesamenamemayberegisteredbyanotherregistrantinadifferent2LD.

(2) Nohierarchyofrights.Atrademarkownerhasnobetterentitlementtoadomainnamethanabusinessnameowner.Aregistrantofadomainnameinone2LDhasnogreaterentitlementtothesamenameinanother2LDthanathirdpartyoranother2LDregistrant.

5Constitutionof.auDomainAdministration,cl31.16Ibid,definitions7auDAPublishedPoliciessetoutthetermsandconditionsofthelicencetouseanddisposeofadomainname.AcopyofthePublishedPoliciescanbefoundat<https://www.auda.org.au/policies/>

8

(3) Firstcome,firstserved.Thefirstpersonthatappliestoregisteradomainnamewillbeentitledtoregisterthedomainname,subjecttotheavailabilityofthedomainnameandeligibilitycriteria.

.auStructure

22. Currently,alldomainnamesin.auareregisteredatthethirdandfourthlevels(Fig1).

.au TopLevelDomain

org.au SecondLevelDomain

yourname.org.au ThirdLevelDomain

yourname.vic.edu.au FourthLevelDomain

Figure1:DomainLevels

23. Domainnamesmustberegisteredina2LD.Therearenine2LDsthatareorganisedintosixspecialpurposecategorieswithdistincteligibilityrequirements(Table1).

24. The2LDSarealsostructuredintoopen,restrictiveandcloseddomains.Theopendomainsare‘open’tothepublictoregisteradomainname,subjecttomeetingtherelevanteligibilitycriteria.Theopendomainsarecom.au,net.au,org.au,asn.au,andid.au.

25. TherestrictivedomainsaretheStateandTerritory2LDs,alsoknownasCommunityGeographicDomainNames.Thesedomainsarereservedforusebygeographicallydefinedcommunitiestocreatecommunitywebsites.Theycanonlyberegisteredonbehalfofthelocalcommunitybyanotforprofitoraspecialcommitteeofthelocalcouncil.Forexample,theCarltonNeighbourhoodLearningCentrehasregisteredthedomainnamecarlton.vic.auandcreatedawebsitetoprovideinformationandnewstothelocalcommunity.

26. Theclosed2LDsarecsiro.au,gov.auandedu.au.Thesedomainsareclosedcommunitiesofinterest,whosemembershipismanagedbytheAustralian,StateandTerritoryGovernmentsunderagreementswithauDA.8Thegovernmentandeducation2LDsaredividedintosub-domains,whichreflectthefederalsystemofgovernment.Forexample,AustralianGovernmententitiesregisterdomainnamesatthethirdlevel(pmc.gov.au),whileStateandTerritoryGovernmententitiesmustregisterdomainnamesatthefourthlevelafterthethirdlevelStateorTerritorysignifier(dpc.vic.gov.au).

27. Theconf.au2LDisalegacy2LDusedbyLinuxtoadvertisenationalconferences.This2LDisclosedtonewregistrations.

8auDAPublishedPolicies,GovernanceArrangementsfortheedu.au2LD(01/07/2015);csiro.auisalegacy2LDthatisnotsubjecttoanauDAagreement.

9

Purpose 2LD NumberofDomainNames9

Eligibility10

commercial

com.au 2,750,678 Australianregisteredcompany,registeredbusinessnameholder,Australianpartnershiporsoletrader,registeredforeigncompany,registeredAustralianTradeMarkholderorapplicantforaTradeMark,incorporatedassociation,Australiancommercialstatutorybody

net.au 281,065

Non-commercial

org.au 69,533 Incorporatedassociation,politicalparty,tradeunion,employerassociations,sportingorspecialinterestclubs,charitiesandnotforprofits

asn.au 3,461

Individuals id.au 12,559 AustraliancitizenorresidentCommunityGroups

StateandTerritoryCommunityGeographicDomainNames

241 LocalcommunitygroupendorsedbythelocalCouncil

Education

edu.au,includingchildzones(nsw.edu.au;act.edu.au,tas.edu.au.sa.edu.au,wa.edu.au.vic.edu.au,ed.edu.au,catholic.edu.au)

16,499 EducationinstitutionsregulatedunderCommonwealthorStateandTerritorylegislation,andwhoseeligibilityisapprovedbyeDAC

government

gov.au,includingchildzones(act.gov.au,qld.gov.au,vic.gov.au,nsw.gov.au,tas.gov.au,sa.gov.au,wa.gov.au,nt.gov.au

4,71811 Australian,StateandTerritoryGovernmentbodiesandlocalgovernmentinstrumentalities

Conferences conf.au 1 ConferencesTable1:2LDsbypurpose,numberofdomainnamesandeligibility

9AusRegistryEOMReportforGeneralReleaseHigh-LevelScorecard(July2017)10AllregistrantsmustsatisfytheAustraliannexusrequirement,suchasanAustraliancitizenorresident,politicalpartyregisteredwiththeAustralianElectoralCommission,andaregisteredAustralianorforeigncompanyundertheAustralianSecuritiesandInvestmentCommissionAct2001(Cth).

11Thenumberdoesnotincludetas.gov.auandnt.gov.auastheyarenotmanagedbyAusRegistry(DataextractedfromAusRegistryon22August2017)

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DomainNameMarket

28. Therearecurrently3.2milliondomainnamesregisteredin.au(Table1).Thisnumberfluctuatesonanhourlybasisduetonewregistrationsanddropoffs(Table2).Dropoffsincludethedomainnamesthatexpiredwithoutrenewalorweredeleted.12

Process July2015 July2016 July2017

NewRegistrations 53,255 49,576 48,170

Renewals 80,949 84,269 87,628

RegistrantTransfers 1,451 1,574 1,354

DropOffs 41,793 46,110 42,138

Table2:FluctuationinDomainNamesDuringtheMonthofJuly2015-17

29. Thedomainnamemarketcomprisestheprimaryandsecondarymarkets.

Primarymarket

30. Theprimarymarketiswheredomainnamesarecreated.AbusinessorindividualmayapplytoaRegistrarorResellertoregisteranavailabledomainname.TheRegisterorresellerwillregisterthedomainnameonreceiptofthelicencefee.Adomainnamelicenceisfor2years.

31. Thereisnoprescribedlicencefeeforadomainname.ThewholesalepriceforadomainnameissetbyauDA.Thecurrentwholesalepriceacrossall2LDSforadomainnameis$19.25(Table3).

2LD AusRegistry fee (GST inc)

auDA fee (GST inc)

Total "wholesale" price (GST inc)

com.au $15.40 $3.85 $19.25

net.au $15.40 $3.85 $19.25

asn.au $15.40 $3.85 $19.25

id.au $15.40 $3.85 $19.25

org.au $15.40 $3.85 $19.25

Table3:Currentwholesalepricefordomainnamelicence.

32. Registrarsandresellerssettheretailpricefor2LDdomainnamelicences.

33. Registrarsandresellersmayofferadditionalservicesforafee,suchaswebhostingservices.TheseservicesarenotregulatedbyauDA.

12AusRegistry,AusRegistryEOMReportforGeneralRelease:Definitions(July2017)5

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Secondarymarket

34. Thesecondarymarketcomprisesmutuallyagreedtransfersofregistereddomainnamelicencesforaprice,anddroplistauctions.

35. DroplistauctionsareauctionsofdomainnameregistrationsthathaveexpiredorthathavebeencancelledordeletedunderauDApolicy.Approximately400,000domainnamesdropeachcalendaryear.ThedroplistispubliclyavailableontheauDAwebsiteandtheAusRegistrywebsite.

36. Withoutthenecessaryknowledgeortechnology,itcanbequitedifficultforthegeneralpublictopickupthesenamesthatdrop.Adropcatchingserviceallowsapersontolodgeapre-applicationforadomainnamebeforeitisduetodrop,andthenusesaspecialsoftwareprogramtoattemptto“catch”thedomainnameattheregistryassoonasitdrops.

37. Thereusuallyisafeeforusingadropcatchingservice,inadditiontothedomainnameregistrationfeethattheregistrantwillbechargediftheserviceissuccessfulincatchingthedomainname.Anotherfeatureofmanydropcatchingservicesisthat,ifmorethanonepersonisinterestedinadomainname,therewillbeanonlineauctionandthehighestbidderwillwintherighttobethesoleapplicantforthedomainnamethroughthatparticulardropcatchingservice.Whileemployingtheservicesofadropcatcherimprovesone’schancesofpickingupadomainname,itdoesnotguaranteeitastherecouldbeseveraldomaincatcherscompetingtopickupthesamenamethatisabouttobedropped.

38. Thevalueofadomainnameinthesecondarymarketisdeterminedbyhowmuchapersoniswillingtopayforit.Thereisnovisibilityofthepricespaidforthetransferofadomainnamelicenceduetotheconfidentialnatureofthesearrangements.However,registrarsthatprovideadropcatchingserviceoftenreportthepricespaidatauctionforadomainname.In2017,thepricesforadomainnamevariedconsiderably,forexample,from$132,000forfetch.com.auto$10forlipreading.com.au.

Previousstakeholderconsultation

2015NamesPolicyPanel

39. The2015NamesPolicyPanelwastaskedtoexaminewhether.aushouldbeopened-uptodirectregistrationsandwhat,ifany,policyrulesshouldapply,amongothermatters.The2015NamesPolicyPanelwasprohibitedunderitstermsofreferencefromconsideringimplementationissues.

40. The2015NamesPolicyPanelFinalReport(majorityreport)identifiedarangeofissuesraisedbystakeholdersthatwarrantconsiderationindevelopingadirectregistrationimplementationpolicy.Theseissuesare:

• existingregistrantsacrossall2LDs(openandclosed)shouldhaveequalaccesstothematching.aunamethroughanappropriateallocationmethod

• sameallocationandeligibilitypolicyruleswhichcurrentlyapplyinexisting2LDsshouldapplytodirectregistrations

• domainmonetizationshouldbeallowedindirectregistrations

• somenamesshouldbewithheldorexcludedpriortothereleaseofdirectregistrations,forpotentialfutureuseasnew2LDs;suchascourts.au

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• registrantofadirect.aunameshouldnotbepermittedtouseitasadefactonew2LDbysettingupaprivateregistry

• auDAshouldundertakefurtherstakeholdercommunicationandconsultationtodeterminethemostsuitablemethodofimplementation;and

• theremustbeawidespreadeducationandawarenesscampaignleadinguptothereleaseofdirectregistrations

41. The2015NamesPolicyPanelFinalReportisavailableathttps://www.auda.org.au/policies/panels-and-committees/2017-policy-review-panel

QualitativeandQuantitativeResearch

42. auDAcontractedHelmeConsultingtoundertakeresearchonindustryattitudestodirectregistration,usingin-depthinterviewswithkeystakeholdersandasurveyinstrumentonthecoreelementsofadirectregistrationmodel.Thesurvey(2017StakeholderSurvey)wasdistributedto209,050registrantsacrosstheopen2LDs(com.au,org.au,asn.au,net.auandid.au)andspecialinterestgroupsthroughsocialmediaandthewebsite,andregulatoryauthorities.

43. Theresearchfound:

• concernaboutconfusionastotheidentityofthedomainnameregistrantarisingfrom.au(government,charity,commercialorindividual)

• supportforclosed2LDs(gov.auandedu.au)tobeprotectedunderdirectregistration

• prioritizationofexistingdomainnameownerstoregisterthematching.audomainname

• competingclaimstoberesolvedinfavourofthelongestcontinuousregistrant

• implementationtimeframeof6-12monthsfromannouncementofthepriorityrightsperiodforexistingdomainnamelicenceholders;and

• supportforvariablelicencesof1-5years

44. Acopyofthereportcanbefoundat<https://www.auda.org.au/policies/panels-and-committees/2017-policy-review-panel>

Internationalexperience

45. ManyccTLDswhenlaunchingdirectregistrationhavegrantedexistingthirdleveldomainnameregistrantsprioritytoregisterthematchingsecondleveldomainname.However,thereisnouniformapproachtoresolvingcompetingclaims,aseachccTLDhasdevelopedaprocessthatreflectsthesizeandstructureofthedomainandthesocio-economic,politicalandlegalenvironmentinwhichtheyoperate.ThismeansthattheprocessesadoptedbyotherccTLDsmaynotbedirectlyapplicableortransferabletothe.aucontext.TheUnitedKingdom(.uk)experienceillustratesthis.

13

UnitedKingdom

46. Directregistrationwaslaunchedin.ukon10June2014.Atthattime,therewereapproximately10.4milliondomainnamesundermanagementbytheccTLDadministrator,Nominet.The.ukdomainisstructuredinto14specificpurpose2LDs.(Table4)

2LD Purpose Unrestricted,restricted,orclosed2LD

Eligiblefordirectregistration

co.uk Commercialentitiesandpurposes

Unrestricted yes

org.uk Notforprofitentities Unrestricted yes

me.uk Personalnames Unrestricted yes

ltd.uk Privatelimitedcompanies Restricted yes

plc.uk Publiclimitedcompanies Restricted yes

net.uk InternetServiceProviders’infrastructure

Restricted yes

ac.uk Higherandfurthereducationandresearchinstitution

Closed no

gov.uk National,regionalandlocalgovernmentbodiesandagencies

Closed no

mod.uk Militaryandrelatedpurposes closed no

mil.uk Militaryandrelatedpurposes closed no

nhs.uk NationalHealthService closed no

police.uk PoliceForces closed no

nic.uk Networkuseonly closed no

sch.uk Schools closed no

Table4:2LDsinthe.ukdomainanddirectregistrationelligibility

47. Theunrestricted2LDs(co.uk,org.uk,andme.uk)areopentoanylegalpersonthatwantstoregisteradomainnameforthespecifiedpurpose(commercial,notforprofit,andindividualuse).ThereisnorequirementforthepersontohaveaterritorialorcitizenshipnexuswiththeUK.ThispolicyisintendedtoreducebarrierstoentryforpersonswantingtoprovideservicesandproductstotheUKmarketbymakingiteasytoregisteraco.uk.TheUKistheworld’sfifthlargesteconomyandpartoftheEuropeancommonmarket.

14

48. Therestricted2LDsarereservedforcommercialentitiesandInternetServiceProvidersthatareregulatedunderUKlaw.Therearestricteligibilityandallocationrulesfordomainnamesinthese2LDs,whichreducesthepotentialforthesamenametoberegisteredinmorethanone2LD.Theclosed2LDsareclosedcommunitiesofinterestwhosemembershipismanagedbytheUKgovernmentorrelatedentities.

49. Directregistrationwasrestrictedtoregistrantsofsix2LDs:co.uk,org.uk,me.uk,net.uk,plc.ukandltd.uk.Registrantsofthese2LDswereeligibleforpriorityregistrationrightsifthedomainnamewasregisteredpriortothecut-offdate.TheUKchoseacut-offdateimmediatelypriortothepublicannouncementofdirectregistrationtoreducetheriskofbusinessesandindividualsprofiteeringfromtheannouncementbyregisteringthirdleveldomainnamesthatwouldbeattractivetobuyersatthesecondlevel.Thislimitsthepotentialnumberofcompetingclaimsforthesamesecondleveldomainname.

50. Allregistrantsofnamesregisteredonlyinone2LDwereautomaticallygivenprioritytoregisterthematchingsecondleveldomain.13Thisaccountedfor95%ofdomainnamesunderNominetmanagement.14Theremaining5%orapproximately500,000domainnameswereconflicted,wherethesamenamewasregisteredinmorethanone2LD.15Allconflictednameswerebetweenco.uk,org.ukandme.ukregistrants.16

51. Competingclaimswereresolvedinthefollowingorderofpriority:(1)co.ukregistrant,(2)org.ukregistrantand(3)me.ukregistrant.Thismeansthatwheretheconflictisbetweenregistrantsofaco.ukandorg.au,thentheco.ukregistrantwillbegivenprioritytoregisterthesecondleveldomainnameandsoon.Thisreflectstheoriginalpolicyintentthat.ukisaspacedesignedforbusiness.

13Duringthefirstroundofconsultation,theUKproposedthatsecondleveldomainnameregistrationsberestrictedtobusinesses.Priorityregistrationwouldbegiventoco.ukoverltd.ukandplc.uk.AsaresultofstakeholderfeedbacktheUKdecidedthatdirectregistrationshouldbeavailabletoallexistingregistrantsofcertain2LDs,withcompetingclaimsbeingdecidedinfavouroftheco.ukregistrant.

14Nominet,SecondLevelDomainRegistrationin.uk.NominetBackgroundDocument(1July2013)715ibid16Nominet,Rulesforthereleaseofdomainnamesatthesecondlevelin.uk(28October2013)1

15

IssuesandOptionsPriorityRegistrationRights

52. The2015NamesPolicyPanelFinalReport,2017Stakeholdersurveyandthequalitativeresearchrevealedwidespreadsupport,ifnotanexpectation,thatexistingregistrantswouldbegivenprioritytoregistertheexactmatchingsecondleveldomainname,subjecttoacompetingclaimsresolutionprocess.Therewasnoconsensusacrossthesesourcesastotheprocessforallocatingorresolvingcompetingclaimsforthesamesecondleveldomainname,exceptthatitisfairandtransparent.

53. Giventheextensivestakeholderconsultationalreadyundertakenonwhetherexistingregistrantsshouldbegivenpriorityregistrationrights,thePanelhasdecidednottorevisitthisissuebuttofocusondevelopingapriorityregistrationpolicy.Thedevelopmentofapriorityregistrationpolicyrequiresconsiderationofthefollowingissues:

• cut-offdatefordeterminingregistranteligibilityforpriorityregistration;

• processforresolvingcompetingclaimstothesamesecondleveldomainname;and

• thepriorityregistrationperiodinwhichregistrantswillhaveexclusiverightstoregisterthesecondleveldomainname.

54. ThePanelnotesthatpriorityregistrationrightswillbedeterminedunderthecurrentsuiteofpolicies,howeveraregistrantwithpriorityregistrationrightswillalsoberequiredtosatisfytheeligibilityandallocationrulesthatapplytosecondleveldomainnamesattimeofregistration.

Cut-offdate

55. Itisimportanttosetacut-offdatefordeterminingwhichregistrantshaveprioritytoregisterthematchingsecondleveldomainname.Thecut-offdatewillimpactonthefollowing:

• thenumberofconflictednames,

• riskofindustryinsidersprofiteeringfromthelaunchofdirectregistration,and

• registrantsthatregistera.audomainnameaftercut-off.

56. TheUKandNZsetthecut-offdatefordeterminingregistranteligibilityforpriorityregistrationasthedateoftheformalannouncementbytheBoardthatdirectregistrationwouldbeintroduced.Registrantsthathadregisteredathirdleveldomainnamepriortothisdatewouldbegivenprioritytoregisterthematchingsecondleveldomainname,subjecttoacompetingclaimsresolutionprocess.Therationaleforthisapproachwastopreventindividualsandbusinessesfromprofiteeringbyregisteringthirdleveldomainnamesthatwouldbeattractivetobuyersatthesecondlevel.TheUKofferedregistrantsofthirdleveldomainnamesregisteredafterthecut-offdateandbeforethelaunchdate,theopportunitytoregisterthedomainnameafterallpriorityregistrantshadexercisedtheirrightoffirstrefusal.

57. On18April2016,theauDABoardformallyannouncedtheintroductionofdirectregistration.Thisdateandanominaldateof1September2017wereusedtocalculatethenumberofconflictednamesatthesetwopointsintime(Table5).Aconflictednameiswherethesamenameorstringoccursinmorethanonezoneor2LD(regardlessofwhetherornottheregistrantisthesameordifferentforeachname).Forexample,thenameorstring‘yourname’mayoccuracrosstwozones,suchasyourname.com.auandyourname.net.au.Theregistrantsofyourname.com.auandyourname.net.au(ifdifferentregistrants)willhavecompetingclaimstothesamesecondleveldomainname,yourname.au.

16

Zones NamesorStrings

18April2016

DomainNames

18April2016

NamesorStrings

1September2017

DomainNames

1September2017

1 191 191 192 192

2 193645 387290 255909 511818

3 14654 43962 19933 59799

4 2342 9368 3045 12180

5 443 2215 621 3105

6 76 456 111 666

7 3 21 8 56

Total 211,354 443503 279819 587816

Table5:Conflictednamesandnumberofdomainnameseffectedasatthecut-offdate17

58. The2LDstructureofthe.audomainmeansthatthesamenamemayberegisteredbythesameordifferentregistrantinmultiple2LDsorzones.Forexample,asat18April2016,therewere193,645namesthathadbeenregisteredacrosstwozonesor2LDs,suchasyourname.com.auandyourname.org.au.Asthesamenameisregisteredintwozonesor2LDstherewillbe387,290domainnameseffected.

59. Therearefewerconflictednamesacrossallzoneswhenacut-offdateof18April2016ischosen.Whethertheincreaseinconflictednamesbetween18April2016and1September2017canbeattributedtoindustryinsidersattemptingtoprofitfromtheintroductionofdirectregistrationisdifficulttodeterminewithanycertainty.Itisinterestingtonotethatirrespectiveofthecut-offdatechosen,87%ofconflictednamesoccurwherethesamenameisregisteredacrosstwozonesand90%oftheseconflictsarebetweencom.auandnet.auregistrants.(Theseconflictsmaynotberealconflicts,becausetheregistrantsoftheconflicteddomainsmayinfactbethesameperson,orrelatedpeople,e.g.parentcompanyandsubsidiarycompany,orfounderandcompany.)

60. Choosingthe18April2016Boardannouncementasthecut-offdatefordeterminingpriorityregistrantrightswilldisadvantageregistrantsthathaveregisteredathirdleveldomainnameafterthisdate.Giventheuncertaintyaroundthelaunchdatefordirectregistration,lowawarenessamongthepublicaboutdirectregistrationandthepassageofmorethan18monthssincetheannouncement,itmaybemoreequitabletoselectacut-offdatesometimeinthefuture.TheNZandUKcut-offdatewasbetween3-6monthsbeforethelaunchdate.Alatercut-offdatemayincreasethenumberofconflictednames.

17gov.auandedu.auhavemultiplesub-domainsinwhichafourthleveldomainnamecanberegistered,suchaswa.gov.au,andnsw.edu.au.Thismeansthatthesamenamemaybeheldmultipletimeswithingov.auandedu.auorwithinonezone.

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61. Themethodforresolvingcompetingclaimsmayalsoimpactthechoiceofcut-offdate.Forexample,ifthelongestcontinuousregistrantapproachisadoptedtoresolvecompetingclaims,thechoiceofalatercut-offdatewillhavelessimpactthanifthelotteryapproachisadopted.

Question

Whatdateshouldbechosenasthecut-offdatefordeterminingregistranteligibilityforpriorityregistrationofthesecondleveldomainname,andwhy?

Competingclaimsresolutionprocess

62. ThePanelisworkingontheassumptionregistrantsofdomainnamesacrossall2LDsregisteredatthecut-offdatewillbeeligibleforpriorityregistration.

63. Themajorityofdomainnameregistrantsacrossall2LDsthatareeligibleatthecut-offdatewillbeabletoregisterthematchingsecondleveldomainnamewithoutparticipatinginacompetingclaimsprocess.Approximately14%ofdomainnameseligibleforpriorityregistrationatthecut-offdateof18April2016and18%ofdomainnameseligibleasof1September2017willbesubjecttoacompetingclaimsprocess.

64. Asignificantproportionofconflictednamesmaybedefensiveregistrations,wherethesameregistranthasregisteredthesamenameinmultiplezonesor2LDs,suchasauDA.org.au,auDA.net.au,auDA.asn.auandauDA.com.au.Apreliminaryanalysisofconflictednamesacrosstwozonessuggeststhatapproximately50%ofconflicteddomainnamesareregisteredtothesameregistrant.

edu.auandgov.au2LD

65. Theedu.auandgov.au2LDspresentauniquechallengeindevelopingacompetingclaimsprocessduetothehierarchicalstructurewithinthese2LDs.Adomainnamecanberegisteredatthethirdlevel(yourname.gov.au)oratthefourthlevelinoneofthesubdomainscorrespondingtoaStateorTerritory(yourname.vic.gov.au).DomainnamesregisteredatthethirdlevelareusedexclusivelybytheAustralianGovernmentinrespectofgov.auandAustralianGovernmentregulatedtertiaryinstitutionsinedu.au.ThefourthleveldomainnamesarereservedforStateandTerritoryentitiesorregulatededucationalinstitutions.

66. Thepotentialforconflictsbetweenthirdandfourthleveldomainnameswithinasinglezoneor2LDisillustratedbytheconflictednamesdata,wherethereare192namesheldmultipletimeswithintheonezone.18Thereisalsopotentialforconflictsbetweendomainnamesatthefourthlevelinthegov.auandedu.au2LDandthirdleveldomainnamesinother2LDs,suchasyourname.nsw.edu.au,yourname.com.auandyourname.org.au.Thisprobablyaccountsforsomeofthenamesthatoccurinmultiplezones,especiallywherethesamenameisregisteredinfiveormorezones.Thisraisestheissueofwhetherfourthlevelregistrantsshouldbegivenpriorityregistrationrightsorwhetherpriorityregistrationshouldberestrictedtothirdlevelregistrants.

67. Thefundamentalprinciplesthatunderpinthe.auregistrationsystemmeansthatafourthleveldomainnameregistranthasthesameentitlementtothematchingsecondleveldomainnameasaregistrantofathirdleveldomainname.Therequirementforregistrantstoregisteradomainnameatthefourthlevelreflectsregulatoryarrangementswithinthefederalsystemof

18Conflictednamesasat1September2017.

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government.Theseregulatoryarrangementsareredundantatthesecondlevelwhereanylegalpersonthatsatisfiestheeligibilityrequirementsofa2LDwillbeeligibletoregisterasecondleveldomainname.

68. Dependingontheoptionchosenforresolvingcompetingclaims,itmaybenecessarytodevelopspecialrulesforresolvingconflictsbetweenregistrantsofthesamenameheldmultipletimeswithina2LD.Forexample,ifcompetingclaimswereresolvedusingalotterysystemthentherewillbenorequirementforspecialrulesfortheedu.auandgov.au2LDsasthirdlevelandfourthleveldomainnameregistrantswillhaveanequalchanceofwinningthelottery.

Question

Shouldregistrantsofdomainnamesatthefourthlevelwithinedu.auandgov.aubeeligibleforpriorityregistration?

Ifso,whatrulesshouldapply?

OptionsforResolvingCompetingClaimstoConflictedNames

69. Thispaperbrieflycanvassesarangeofoptionsforresolvingcompetingclaimsinrespectofconflictednames.Theseoptionsareusedasamechanismtoillustratethecomplexityofthe.audomainandfocusstakeholderdiscussiononkeyissuesthatimpactonthedevelopmentandimplementationofacompetingclaimsresolutionprocess.Theoptionscanvassedarenotexhaustive,andstakeholdersareencouragedtoproposealternativeprocesses.

70. Thenon-exhaustiveoptionsdiscussedbeloware:

• orderofpriority;

• longestcontinuousregistration;

• longestcontinuousregistrant;

• lotteryorrandomallocation;

• auction;or

• acombinationofanyoftheabove.

Orderofpriority

71. Prioritycouldbegiventoexistingdomainnameregistrantsofconflictednamesbasedonanorderofprioritytakingintoaccountthe2LDorsomeotherfactor.Forexample,theregistrantofthe.com.audomainnameatthecut-offdatecouldtakepriorityovertheregistrantofthe.net.audomainnameatthecut-offdate.

72. TheUKestablishedanorderofpriorityforresolvingcompetingclaimsbetweeneligiblethirdleveldomainnameregistrantsinco.uk,org.ukandme.uk.Therewerenoconflictednamesacrossthenet.uk,plc.ukorltd.uk2LDs.Theorderofprioritywasco.uk,andiftherewasnoco.ukthenorg.ukandifnoorg.ukthanme.uk.Therewasnocascadingeffectiftheregistrantwithprioritydecidedtonotexercisetherighttoregisterthesecondleveldomainname.

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73. Thereisstakeholdersupportforanorderofprioritymodel,withcompetingclaimsbeingresolvedinfavourofthecom.auregistrantinthefirstinstance.19Somestakeholdershavemarketedthecom.auasthepremiumdomainextensionforAustralia,althoughthishasnotbeenauDApolicy.

74. Anorderofprioritymodelisproblematicinthe.aucontextdueto(1)thesameeligibilityrulesapplyingtomorethanone2LD,and(2)thepolicyjustificationforprioritisingregistrantsofone2LDoveranother.

75. Thesameeligibilityrulesapplytotheregistrationofadomainnameincom.auandnet.au,andinorg.auandasn.au.Onecouldconcludethatthecom.auandnet.auregistrantsshouldbetreatedasasingleregistrantclass,andthesamefororg.auandasn.auregistrants.However,thisapproachdoesnotresolvecompetingclaimsbetweencom.auandnet.auregistrantsororg.auandasn.auregistrantstothesamesecondlevelname.Theconflictednamesdataindicatedthat90%ofnameconflictsacrosstwozoneswerebetweenthecom.auandnet.auregistrants.Giventhatbothcom.auandnet.auareusedforcommercialpurposesitwouldbedifficulttojustifygivingprioritytooneoveranother.

76. Thehierarchyofrightsprinciplemeansthatnopersonorrightsholderhasabetterentitlementtoadomainnamethananyotherperson.The2LDstructureisbasedonspecialpurposecategorieswhichservedifferentneedswithintheAustraliancommunity.Anorderofpriorityrequiresthat2LDsarerankedaccordingtosomeformcriteria,forexample,ofsocio-economiccriteria.Thefollowingexamplesillustratethecomplexityoftryingtodetermineanappropriateandfairranking:

• In2016-17financialyear,AustralianGovernment(gov.au)spent$450billiononarangeofactivities,includingwelfare,health,policingandcourts.

• In2015,theAustraliancharitiessector(org.au)generatedatotalincomeof$134.5billionandemployed1,222,676staff.20CharitiesprovideessentialservicestodisadvantagedAustralians.

• In2014-15financialyear,internationaleducationisoneofAustralia’sfastestgrowingexportsandwasestimatedtohavecontributed$17.1billiontotheAustralianeconomy.

77. Anorderofprioritymayalsoneedtoapplytoall2LDs,includingthegov.auandedu.ausub-domains.ThiswouldrequireapoliticalunpalatabledecisionastotherankingoftheStateandTerritorysub-domains.

Longestcontinuousregistration

78. Competingclaimscouldberesolvedinfavourofthelongestcontinuousregistrationorcreationdateofadomainname.Thisapproachwasadoptedbythe.mxccTLDadministratorasitprovidedanobjectivedate,whicheliminatedtheneedforafactualassessmentofthemeritsofcompetingclaims.

79. Thedisadvantageofthisprocessisthatregistrantsoflegacydomainnameswillbeprioritisedoverregistrantsthathaveusedthedomainnametoestablishanonlinepresencewithitsownconsumerbase.Thismayalsobethecasewheredomainnamesareregularlytradedasa

192015NamesPolicyPanel,2015NamesPolicyPanelFinalReport(Dec2015)9,HelmeConsulting,QualitativeExplorationPhase1.Perceptionsofimplementationpolicyforopendomainnameregistrations.ExecutiveSummary(March2017)3

20AustralianCharitiesandNotforprofitCommission,AustralianCharitiesReport2015(December2016)10.

20

commodityasthecreationdatewillbethedateitwasfirstregisteredandnotthetransferdate.Forregistrantsthathavepurchasedadomainnamelicencefromadroplistauction,thecreationdateisthedatethattheyregisteredthedomainname,andnotthedateitwasfirstregistered.

80. Wheretwoconflictednameshavethesamecreationdate,theconflictwillberesolvedbyreferencetothetimestampofwhenthedomainnamewascreated.However,forsomedomainnamesregisteredpriorto2002,thecreationdatemaybeunreliable.

81. Thisoptionmaygiveprioritytotheownerofalongregisteredbutinactivedomainnameoveramorerecentusedandwell-knowndomainname.

Longestcontinuousregistrant

82. Inthisapproach,priorityisgiventotheregistrantwhohasheldthedomainnamelicenceforthelongestperiodoftime.

83. Thelongestcontinuousregistrantapproachassumesthatregistrantswhohavecontinuouslyregisteredthedomainnamemayhaveinvestedsignificantresourcesintheironlinepresence,searchenginelistingandotherdirectoryservicestoattractandengagewithconsumersorthepublic.Itrecognisesthatdomainnamesareanessentialpartofaregistrant’sgoodwillandreputation,irrespectiveofwhethertheregistrantisabusiness,charity,organisation,governmentorindividual.

84. Thisapproachwilldisadvantageregistrantsthathaverecentlyacquiredadomainnamelicenceonthesecondarymarketanddomainers.Adisputeresolutionprocessmayberequiredtodealwithregistrantclaimsthatthedateofregistrationisincorrectasaresultofregistrantcontactdetailsbeingwrongwhenfirstregistered,changeofregistrantbusinessnameorontransfer.

85. Thisoptionwillrequireadisputeresolutionprocesswheretheregistrantcontactdetailshavebeenupdatedasaresultoftheregistrantcontactchangingjobs,atransferbetweenrelatedcorporateentitiesorincorrectregistrantdetailsbeingenteredatregistration.

86. Thisoptionalsomaynoteasilyworkwherethelicencedateofthecompetingdomainnamesisthesame.Itmayalsoappearunfairwheretwocompetingclaimantshavebothbeenusingtheirdomainnamesforalongperiodoftimetogiveprioritytooneovertheother.Forsomedomainnamesregisteredpriorto2002,theregistryinformationmaybeunreliable.

87. Thisoptionmaygiveprioritytoaregistrantthathascontinuouslyrenewedthedomainnamelicencebuthasneverdevelopeditoveramorerecentusedandwell-knowndomainname.

Consensusapproach

88. Aconsensusapproachiswhereregistrantswithcompetingclaimstothematching.aunameagreeamongstthemselveswhoshouldhavepriority.Thisapproachwasusedbythe.nzccTLDadministrator,InternetNZ,whenimplementingdirectregistrationandisstillongoing.Theprocessinvolvedregistrantswithcompetingclaimshavingthreeyearstolodgewiththe.nzDomainNameCommissiononeofthefollowingpreferences:

• youwanttotryandgetashorterversionofyourdomainname

• youdon’tthinkanyoneshouldgetit

• youdon’twantitanddon’tcarewhogetsit.

89. Ifthecompetingclaimswerenotresolvedatthepreferencestage,registrantswouldbereferredtoafacilitationservicetoassisttheminreachinganagreement.Ifafter12months,registrantswereunabletoreachagreement,thenthe.nznamewouldbemadeunavailableforregistration.

90. Thisapproachwouldbeoverlycomplexinthe.aucontextgiventhenumberofconflictednames,andthepotentialforprotractednegotiationsbetweenmultipleregistrants.Competingclaims

21

forthesame.nznamearestillintheprocessofbeingresolvedthreeyearsafterdirectregistrationwaslaunchedforpublicregistrations.Itmayalsodisadvantagesmallbusinesses,individualsandnotforprofitorganisationsthatmaynothavethefinancialresourcestonegotiateasettlementintheirfavour.

LotteryorRandomallocation

91. ICANNhasusedalotterysystemforawardinglicencestooperategTLDregistries.Alotterysystemwouldrequireregistrantsinterestedinregisteringthesecondleveldomainnametopurchasealotteryticket.Aregistrantwouldbeabletopurchasealotteryticketforeachdomainnamelicenceheldbythem.Forexample,theAustralianBroadcastingCorporationwouldbeabletopurchasealotteryticketforabc.net.auandabc.com.au.Alternatively,asinglelotteryticketcouldbepurchasedbyeacheligibledomainnamelicenceholder,regardlessofthenumberofdomainnamelicencesheld.Thewinnerofthelotterywouldhavetherighttoregisterthesecondleveldomainname.Whereonlyoneregistrantpurchasedaticketforanygivenlotterythatregistrantwouldautomaticallybegiventherighttoregisterthesecondleveldomainname.

92. Thebenefitofthisapproachisthatallregistrantswhopurchasealotteryticketwillhaveanequalchanceofwinningthelottery.Therecouldbeanominalcostforthepurchaseofalotterytickettocoverthecostofathird-partyprovider,makingtheprocessaffordableforallregistrants.Athird-partyproviderwouldberesponsiblefororganisingandconductingthelottery.

Auction

93. Registrantswithconflictednamescouldbidatauctionfortheexactmatchingsecondleveldomainname,withthehighestbidderwinningtherighttoregisterthesecondleveldomainname.Athirdpartyproviderwouldbeengagedtoruntheauctionensuringanindependentandtransparentprocess.

94. Anauctionwouldfavourregistrantswiththe‘deepestpockets’anddisadvantagesmallnotforprofits,smallbusinessesandindividuals.Itmayalsobeperceivedasinequitableasregistrantsofdomainnamesthatarenotconflictednameswillbeabletoregisterthesecondleveldomainnameattheretailregistrationprice,whileconflictednamesregistrantswillpaythemarketpriceatauction.

CombinationApproach

95. Therecouldbeacombinationoftheaboveapproaches.Forexample,theorderofpriorityapproachcouldbecombinedwiththerandomapproach.Here,forexample,.com.auand.net.aucouldbegivenpriorityoverother2LDs,butforcompetingclaimsof.com.auand.net.aunames,theselectioncouldbecarriedoutbyrandomdraw.

Question

Whatprocessshouldbeimplementedtoresolveregistrantscompetingclaimstothesame.auname,andwhy?

Shouldregistrantswhoseclaimisunsuccessfulbegivenprioritytoregisteranothersecondleveldomainname?

PriorityRegistrationPeriod

96. Thepriorityregistrationperiodreferstotheperiodinwhicharegistranthasanexclusiverighttoregisterthesecondleveldomainname.The2017StakeholderSurveyfoundamajoritybelieved

22

that6-12monthswassufficienttimetoallowpriorityregistrantstoregisterthematchingsecondleveldomainnamewhilebalancingthedemandofthesaleschannel.

97. TheUK’sreservationperiodwasfiveyearsfromlaunchdatefordirectregistration.Itappearsthatafiveyearperiodwasconsideredappropriategiventheapproximately500,000conflictednames,internationalregistrantpopulationandtheintroductionofanewvalidationprocessforregistrantaddressdetails.However,thefive-yearreservationperiodappearstohaveresultedinaslowuptakeofsecondleveldomainnames,asregistrantshavenoincentivetoregisterthedomainnamepriortothe2019expirationdate.AsatMay2017,therewereonly637,360secondleveldomainnamesregisteredgiventhe10,039,279thirdleveldomainnamesundermanagement.21

98. TheNZinitiallyadoptedatwo-yearreservationperiodbutthelengthyandcomplexcompetingclaimsprocesshasseenthisblownouttofouryears,anditisstillongoing.TheNZexperiencedemonstratestheneedforanefficientcompetingclaimsprocessandcertaintyinthemarketplaceastowhenreserveddomainnameswillbeavailabletothepublicforregistration.

99. Ashorterperiodmaybemoreappropriateifthereissignificantpublicityandadvertisingregardingtheprocess.

Question

Howmuchtimeshouldpriorityregistrantshavetoexercisetheirrighttoregisterthematchingsecondleveldomainnamebeforeitismadeavailabletothepublicforregistration?

New2LDs

100. The2015NamesPolicyPanelFinalReportsuggestedthatcertainnamesshouldbereservedforfutureuseas2LDs,suchasparliamentandcourts.The2015NamesPolicyPanelmadeapersuasiveargumentthatnew2LDsshouldbecreatedforthecourtsandparliamentduetotheseparationofpowersdoctrine.Courtsandparliamentarecurrentlyregisteredunderthegov.au2LD,suchashcourt.gov.au.

101. Theremaybeothernamesthatshouldalsobereservedforfutureuseas2LDs,suchasltd.au,ptyltd.au,police.au,andthelike.

Question

Shouldcertainnamesbereservedforfutureuseas2LDs?Pleaseindicatewhichnamesandwhytheyshouldbereservedasfuture2LDs.

ReservedNames

102. TheauDAReserveListPolicysetsoutalistofnamesthatmaynotbeusedasdomainnames,exceptincertaincircumstances.Thesenamesare:

(1) words,phrasesandabbreviationswhoseuseisprohibitedorrestrictedunderCommonwealthlegislation;

21NominetUK,.ukRegisterStatistics.TotalDomainsunderManagementattheendoftheMonth.<https://www.nominet.uk/news/reports-statistics/uk-register-statistics-2017/>

23

(2) namesandabbreviationsofAustralianstatesandterritoriesandthename“Australia”;and

(3) namesthatmayposearisktotheoperationalstabilityandutilityofthe.audomain.

103. TheauDAReserveListcontainsalistofnameswhoseuseisprohibitedunderCommonwealthlegislation,exceptincertaincircumstances,suchasAnzac,RedCross,andCommonwealth.ThislistisnotexhaustiveandauDAhastherighttoreservenamesprohibitedunderCommonwealth,StateandTerritorylegislationatanytime.auDAwillexercisethisrightinthefollowingcircumstances:

(1) words,phrasesandabbreviationsareprohibitedunderStateorTerritorylegislationandthatlegislationhasextraterritorialjurisdictionsuchastheAustralianGrandPrixAct1994(VIC);and

(2) wheretheCommonwealthamendsexistinglegislation,orpassesnewlegislationprohibitingtheuseofcertainwords,phraseorabbreviations.Forexample,regulation9AoftheFamilyLawRegulations1984prohibitstheuseofcertainthirdleveldomainnames,exceptbyanauthorisedperson,suchaships.org.au.TheAustralianGovernmentmayamendtheregulationstoincludetheequivalentsecondleveldomainname.

104. Anyword,abbreviationorphraseprohibitedunderanAustralianlawwillnotbeavailableforregistrationatthesecondlevel,exceptaspermittedbylaw.

105. auDAcurrentlyreservesthenamesandabbreviationsofAustralianstatesandterritories,and“Australia.”Theremaybeothernamesthatshouldbereservedinthepublicinterest,suchasAustralianlandmarksoricons.

Question

Aretherenameswhoseuseisnotprohibitedatlawthatshouldbereserved?

106. auDAhastherighttoreservenamesforusebytheregistryandnamesthatmayposearisktotheoperationalstabilityandutilityofthe.audomain.22auDAisproposingtoreservethefollowingnames:

• example.au

• whois.au

• RDDs.au

• www.au

• auDA.au

• au.au

• Australia.au

• nic.au

107. auDAmayreserveatanytimenamesthatareaddedbyICANNtospecification5oftheRegistryAgreement.AcopyoftheRegistryAgreementandSpecification5isathttps://newgtlds.icann.org/sites/default/files/agreements/agreement-approved-31jul17-en.html

22auDA,ReservedListPolicy(2014-06)

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108. TheauDAReserveListPolicymayalsoneedtobeexpandedtoincludenamesthatarepotentiallymisleadingorconfusingwhenregisteredatthesecondlevelanddeliberatemisspellingsof2LDcategories,suchascomm.au,nett.auorcon.au.Namesthatendin“com”,“net”,“org”,“edu”,and“gov”(suchasnabcom.auorabcnet.au)mayalsobemisleadingorleadtoconfusionifanInternetusermistypesanexistingdomainname.NamesthatmaybepotentiallymisleadingorconfusingmayalsoincludenamesthatmaybetraditionallybeassociatedbythepublicwiththeCommonwealthgovernmentsuchasgovernment.auandhealth.au.

Question

Shouldnamesthatarepotentiallyconfusingormisleadingwhenregisteredatthesecondlevelbereserved(ienotavailableforregistration)?

Shouldnamesthatareadeliberatemisspellingoftheexisting2LDsbeprohibitedfrombeingregisteredatthesecondlevel?

ImplementationProcess

109. Internationally,ccTLDlaunchpoliciesfordirectregistrationtypicallyfollowoneoftwoprocesses:(1)astagedprocessor(2)aconcurrentreservationperiodandgeneralavailability.

110. Aregistrant,eventhosewithpriorityregistrationrights,willberequiredtosatisfytheeligibilityandallocationrulesforregisteringasecondleveldomainnameinforceatthetimeofregistration.ThismeansthatallPhase2policieswillapplytoallsecondleveldomainnameregistrations.

StagedProcess

111. AllgTLDlaunchpoliciesusethefollowingstagedprocess:sunriseperiod,land-rushperiodandgeneralavailability(Diagram1).Thisprocesswasusedby.mxccTLDwhenre-launchingdirectregistrationin2009.

Diagram1:Stagedapproachtodirectregistrationlaunch.

112. Thesunriseperiod(Stage1)iswherepriorityregistrantsaregiventheexclusiverighttomakeanapplicationtoregistertheexactmatchingsecondleveldomainname.Apriorityregistrantwillbeabletomakeanapplicationtoregisterthesecondleveldomainnameduringthisperiod,subjectto:

• availabilityofthedomainname

• satisfyingtheeligibilityandallocationrulesforregisteringasecondleveldomainnameinforceatthetimeofregistration;and

Stage1SunrisePeriod

GeneralAvailabilityStage2

Landrushperiod

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• demonstratingcontinuingeligibilitytoholdthethirdorfourthleveldomainnameundertheexistingsuiteofpolicies.

113. Thedurationofthesunriseperiodwilldependonthecomplexityofthecompetingclaimsprocess,andthelengthofthereservationperiod.Ifthesunriseperiodorreservationperiodistoolongitwilldelaywhensecondleveldomainnameregistrationismadeavailabletothepublic.

114. Thelandrushperiod(Stage2)providesregistrantsthatwereeligiblebutunsuccessfulinbeinggrantedpriorityregistrationduringthesunriseperiod,theopportunitytomakeanapplicationtoregisteranavailablesecondleveldomainname.Aregistrantwillabletoregisterthesecondleveldomainname,subjecttosatisfyingtheeligibilityandallocationrules.

115. Generalavailabilityiswheresecondleveldomainnameregistrationisopentoanypersononafirstcome,firstservedbasis.

116. Astagedapproachisattractiveasitprovideseligibleregistrantsthatmissedoutonpriorityregistrationtheopportunitytoregisterasecondleveldomainnamebeforethepublic.Thiswillamelioratetosomeextenttheimpactofthecompetingclaimsresolutionprocess,asunsuccessfulregistrantswillhavetheopportunitytoregisteranalternativesecondleveldomainname.However,astagedapproachwillrestrictnewdomainnamegrowthandrevenuestreamsforregistrarsastherewillbeconsiderabledelaybeforedirectregistrationisopentothepublic.

Concurrentreservationandgeneralavailabilityprocess

117. Aconcurrentreservationandgeneralavailabilityprocessiswheresecondleveldomainnameregistrationsissimultaneouslymadeavailabletothepublicandpriorityregistrants(Diagram2).

Diagram2:Concurrentreservationandgeneralavailability

118. Thisprocessrequiresallsecondleveldomainnamesthatmatchathirdleveldomainnameatthecut-offdateautomaticallybeingreservedforpriorityregistration.Registrantsthathavepriorityregistrationwillnotbeabletomakeanapplicationtoregisterthesecondleveldomainnameuntilsecondleveldomainnameregistrationismadeavailabletothepublic.Nooneotherthanthepriorityregistrantwillbeabletoregisterthereservedsecondleveldomainname.

119. Priorityregistrantsandthepublicwillbeabletoapplytoregisterasecondleveldomainnameonthedirectregistrationlaunchdate.Thismeansthatdirectregistrationwillbeavailabletothepublicatthesametimeaspriorityregistrants.Priorityregistrantswillhaveaspecified

GeneralAvailabilityReservationPeriod

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timeinwhichtoapplytoregisterthematchingsecondleveldomainnamebeforeitisreleasedforregistration.

120. Aconcurrentprocessmayprovidethefollowingbenefits:

• ensurespriorityregistrantshavethefirstrightsofrefusaltothematchingsecondleveldomainname;

• immediatelyopensupthe.audomaintothepublic

• reducespublicandindustryconfusionaboutthecommencementofdirectregistrationasthereisonelaunchdate

• stimulatesimmediategrowthofthe.audomainnamespaceandfinancialrevenueforregistrars

• providescostefficienciesastherewillonlyneedtobeonemarketingandeducationcampaign

121. Thedisadvantagesofaconcurrentprocessare:

• significantleadtimemayberequiredtoimplementtheautomaticreservationprocessand

• requiressufficienttimetorunapubliceducationandawarenessprogram

Question

Shoulddirectregistrationbeimplementedin.auusingastagedprocessorconcurrentreservationandopenavailabilityprocess,andwhy?

Shouldotherregistrantsorrightsholdersbegivenpriorityduringthelandrushorreservationperiodtoregisterasecondleveldomainname(trademarkowners)?

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Annexure A Schedule – Published Policies subject to review by the Policy Review Panel

No. Title

2015-01 Complaints Policy

2014-09 Reseller ID Application Form

2014-08 DNSSEC Policy and Practice Statement (DPS) for the .au Domain

2014-07 WHOIS Policy

2014-06 Reserved List Policy

2013-05 Registrar Accreditation Application Form

2013-04 Registrar Accreditation Criteria

2013-03 auDA Information Security Standard (ISS) for Accredited Registrars

2013-02 Transfers (Change of Registrar of Record) Policy

2012-04 Domain Name Eligibility and Allocation Policy Rules for the Open 2LDs

2012-01 Registrant Review Panel Rules List of auDA Review Panelists

2011-03 Transfers (Change of Registrant) Policy

2010-07 Registrant Contact Information Policy

2010-03 Registrar Review Panel Rules List of auDA Review Panelists

2010-01 Domain Renewal, Expiry and Deletion Policy

2008-09 Prohibition on Misspellings Policy

2008-07 Mandatory Terms and Conditions Applying to .au Domain Name Licences

2008-04 Policy Rules and Guidelines for Community Geographic Domain Names (CGDNs)

2007-02 Interim Policy on Use of Wildcard DNS Records in .au

2004-04 .au Domain Name Suppliers' Code of Practice

2004-01 Complaints (Registrant Eligibility) Policy

2002-29 Domain Name Password Policy

2013-01 Clarification of Auto-Renewal Services under the Code of Practice

2012-05 Guidelines on the Interpretation of Policy Rules for the Open 2LDs

2008-11 Clarification of Permissible Own Use Registration by Registrars

2002-16 Registrar Agreement - Meaning of Reseller

2002-15 Registrar Agreement - Clarification of Clause 14.1.7