Doman Name Expansion Solution - Essay Example

 Doman Name Expansion 1.0 Introduction The Internet Corporation for Assigned Names and Numbers (ICANN) was created in 1998 to manage and coordinate the Domain Name System (DNS). ICANN’s duty is to ensure that each address is unique and that users are able to locate addresses that are valid. In order to facilitate this process ICANN oversees ‘the distribution of unique IP addresses and domain names (ICANN 2012a). Additionally, ICANN ensures that domain names are mapped to the appropriate IP address. ICANN also has the responsibility of accrediting domain name registrars. Therefore, the organisation is tasked with the responsibility of identifying and setting minimum standards for which they must adhere in performing their functions as registrars. In furtherance of its duties ICANN also gives recognition to persons as well as entities that meet these standards ‘and to enter into an accreditation agreement that sets forth the rules and procedures applicable to the provision of Registrar Services’ (ICANN 2012a). Since its inception ICANN has been gradually increasing the suffixes attached to domain names or generic top level domains (gTLDs). This has been done in response to problems encountered by various groups including businesses and customers. The original domain suffixes include .com, .org and .net. The first set of changes took place in 2001when ICCAN increased the number of gTLDs to 22 to include suffixes such as: .uk, .au and .en. They include the original .com, .net and .org. In addition to that, there are 254 domains that are specific to countries and regions – 120 of these are country code domains and 134 At-Large Structures (ALSes) from all geographic regions (ICANN 2012b). The country code domains are represented by the Country Code Names Supporting Organisation (ccNSO). In spite of that increase, a great demand continued to exist for internet names. On June 20, 2011 Internet minders voted unanimously to expand the number of domain names based on company brands, entertainment and political causes. According to The Associated Press (2011) this is the greatest change since the debut of .com in 1984. With this change organisations are now able to make application for gTLDs that contain virtually any word in any language or script (Alex Hall 2011). This change is expected to benefit individuals, companies, cities and regions. It is also expected to reduce the number of disputes that requires resolution. 2.0 Reasons for expanding domain name suffixes Several reasons have been given for the move to expand indefinitely the number of domain name suffixes. However, there have been concerns surrounding this change. Some of the reasons given include insufficient domain resulting from the high demand for websites. Additionally, this has resulted in individuals and enterprises investing in websites that they think will be demanded by customers including big businesses. It is expended that this expansion will reduce the level of cyber squatting which has negatively affected both consumers and businesses. Cyber squatting is the act of registering a third parties trademark in their domain name. Individuals and companies have attempted to benefit from this in the past (Howard 2001). 3.0 Benefits to Users The expansion of domain names provides opportunities to businesses to market themselves in a different way using their address on the internet as well as offer a greater level of security in online banking. This new system increases the level of scrutiny, money and effort that is necessary to facilitate the registration of new internet addresses. This latest move will affect both private individuals in their roles of consumers and corporations. 3.1 Private Consumers stand to benefit from these changes as they are affected by cyber squatting. Grant (2008) indicates that cyber squatting is ‘the registration of web addresses that similar to legitimate brands.’ Customers of legitimate businesses are lured to these sites through search engine optimisation where scammers use their skills to get them to choose fraudulent sites offering discounts. The airline industry is the latest group to be affected by these scams as customers are offered huge discounts (Grant 2008). With the expansion only legitimate business can use the .travel extension. In fact, the Chief Executive Officer of MarkMonitor Irfan Salim (2008; cited in Grant 2008) indicates that the expectation is that there will be an increase in the level of fraudulent activities in relation to refunds, credits and vouchers as a result of the bankruptcies in the airline travel industry. MarkMonitor observes what is happening on the Web for over 400 companies, including 50 that are classified as Fortune 100 companies (Computer Weekly 2009). This expansion is expected to benefit consumers in such a way where output can be expanded, resulting in a reduction in the prices of goods and services and an increase in creativity and innovation (Computer Weekly 2009). 3.2 Corporations In spite of the high costs of obtaining a more unique internet address this change will be beneficial to companies as it will facilitate: i. The provision of marketing opportunities for different types of businesses ii. A more secure online environments iii. A higher level of security in relation to online banking iv. Higher levels of scrutiny v. Responsibility for administering own domain vi. Reduce the risk of cyber squatting 3.2.1 The provision of marketing opportunities for different types of businesses Organisations including those in the airline industry, the financial services industry and consumer goods industry will be able to increase the marketing of their services as only genuine businesses will be able to use .travel, .bank and other customised gTLDs. In fact, Irfan Salim (2009, cited in Computer Weekly 2009) indicates that some of the companies that stand to benefit from these changes include eBay, Google and Amazon. However, some of them including Coca Cola needs to pay close examine how they would benefit from having their own domain (Irfan Salim 2009; cited in Computer Weekly 2009). 3.2.2 A more secure online experience Organisations such as banks which suffer from fraudulent activities will be able to benefit from the expansion of gTLDs as they will be able to secure themselves more effectively than under the current scenario. Banks and businesses in the travel industry as well as the consumer goods industry will be able to achieve this as they will have the responsibility of administering their own domains (Hall 2011). This level of increased security will help to facilitate an increase in the level of online transactions and therefore an increase in business for legitimate companies that facilitate trade online. 3.2.3 A higher level of security in relation to online banking According to MarkMonitor Inc (2009; cited in Savage 2009) the top brands in the banking industry are being exploited by scammers on the internet. MarkMonitor looked at four of the top U.S and international brands in the industry undergo exploitation from over 7,300 domains (Savage 2009). In fact, as much as 16% of these domains were registered within nine months of the date of the article – June 30, 2009. That works out to one cyber squatter site being developed each day. This period represents the height of the recession and cyber squatters sought to capitalise on the financial woes of mortgage holders and job seekers by using terms such as refinancing, mortgage and many other search optimisation terms and strategies. 3.2.4 Higher levels of scrutiny The expansion of gTLDs has being accompanied by a higher level of scrutiny and therefore requires additional financing and effort in order to fight against cyber squatters (Crosman 2011). These are some of the requirements to register new internet addresses (Crosman 2011). This will no doubt reduce the activities of scammers who seek to benefit from the brand image of major companies. 3.2.5 Responsibility for administering own domain Companies such as eBay, Coca Cola, Amazom.com and many others will be allowed the opportunity to administer their own domain. The banking industry, travel industry and the pharmaceutical industry will benefit tremendously form this. Hall (2011) indicates that this move could provide a certain level of control for such companies. 3.2.6 Reduce the risk of cyber squatting Companies lose customers and therefore valuable business to cyber squatters. This has resulted in the reluctance of some consumers to do business on the internet. There are perceived risk in terms of how secure and reliable the internet is in facilitating online transactions with the bank and other organisations (Amini et al 2011, Gerard et al 2006). The use of customised and industry specific gTLDs will definitely go a far way in reducing the level of cyber squatting and phishing on the internet. 4.0 Risks involved There are a number of risks that private and corporate internet users and website owners face in doing business on the net. Instead of reducing the risks the expansion of gTLDs are expected to increase the risks. These risks include: i. High fees payable to entities controlling specific domain names ii. Some names not suitable for the model iii. Costs related to the expected increase in the number of expensive legal disputes iv. Increased risks of cyber squatting v. Risk to customers 4.1 High fees payable to entities controlling specific domains High fees being charged by those controlling specific domain names. For example, Crossman (2011) indicates that when of the concerns of the American Bankers Association is that the entity that controls the domain with the suffix .bank may charge high fees to institutions in the banking industry who want to ensure that their intellectual property is protected. Additionally, the American Bankers Association fear that the entity may not be able to effectively secure the operations of these domains (Crosman 2011). In fact, this is not the only costs as Pepitone (2012) points out that a number of suitors are expected to compete in order to obtain rights over domains like .law and .sport. If ICANN finds them all qualified then the name will be auctioned and this could end up costing the winner millions of dollars. 4.2 Some names not suitable for the model Some organisations may have names that are not suitable for the model. Crosman (2011) indicates that banks have problems with their ‘klunky’ names which may not be suited to the model that has been put forward for generic top-level domain names since the structure of their name would not help them to qualify. For example, Naseem Javed (2011; cited in Crosman 2011) indicates that if the name of the bank is Bank of New York, the suffix .bank would not be appropriate. Javed specialises nomenclature and is also the founder of ABC Namebank which is based in New York (Crossman 2011) . This and many other bank names will encounter problems with this new change and their ability to protect their brands. However, Crosman (2011) indicates that as long as the right names are found for special domain names this expansion will lead to an improvement in security in relation to transactions that take place online. This represents a tightening of the controls relating to the domains that can be used by different entities (Crosman 2011). 4.3 Costs related to expected increase in the level of expensive legal disputes Legal disputes as well as the costs associated in resolving them are expected to increase with the expansion of gTLDs. Cyber squatters will seek to benefit from traffic to well known brands by choosing their brand as an extension before they do. This will result in an increase in the amount of legal disputes. Additionally, there are those individuals and entities that sell domain names. In order to make money, names that are beneficial to their profit motive are registered. Therefore, if a company wants to use that name they would have to purchase it from the owner. However, ICANN indicates that only companies are able to apply for gTLDs. This measure along with the extensive form filling process and improved dispute resolution may help to deter would be scammers. 4.4 Increased risk of cyber squatting This risk is expected to increase with the number of gTLD. Although the cost is high for using tailored gTLD such as a brand extension – more than £1m, it may be lost forever if a cyber squatter gets it before the legitimate owner does (Howard 2001). In the past companies had to pay substantial amounts in order to buy domain names that matched their brands as cyber squatters use their brands in an effort to increase traffic to their website and also to prevent customers from getting to the web sites they want to reach. However, organisations will get a chance to object to others applying for extensions that include their trademarks as all applications will be available for scrutiny on ICANN’s website. Additionally, ICANN has put in place a detailed and time consuming form filling process that will in addition to the cost deter most of those who will seek to do so. Despite all of that, Abrahams (2011) indicates that whether or not companies apply they need to put a plan in place to protect their brands as the abuse of brands is expected to multiply significantly. 4.5 Risk to customers Hometown Source (2011) quoted two U.S. Senators – Senator Amy Klobucher and Kelly Ayotte as saying that this expansion could present increased opportunities for cyber squatters to ‘prey on consumers’ and create challenges for some organisations. Businesses may also pass on the cost of setting up and maintaining the site to customers. 5.0 Conclusion There is a lot that needs to be done to resolve the problems faced by legitimate businesses and customers on the internet. The changes will be very costly for businesses and may instead of reducing prices charged to customers result in even higher prices as a result of the costs of the application process and the costs to resolve legal disputes. However, there are many benefits that can be had. It requires an extensive educational campaign informing individuals and companies of the changes and what they mean. They will also need to be informed of the specifics to look for when they need to use the internet. Pepitone (2012) points out that this expansion will not come any time soon based on the complications that are associated with the process. This has irked those who stand to benefit from it. Stuart Lawley (2012; cited in Pepitone 2012) indicates that he always warns people about the unreliability of these timetables. Stuart Lawley is the Chief Executive Officer of ICM Registry which is in the process of launching the .xxx domain earlier. A glitch associated with the recent expansion caused some users to view other applicants information This resulted in ICANN taking the system offline for over one month and an extension of the approximately four month application period (Pepitone 2012). References Abrahams, C. (2011). Top five tips for gTLD strategy: What does Icann’s Decision mean for your business? [Online] Available at http://www.computerweekly.com/opinion/Top-five-tips-for-gTLD-strategy-What-does-Icanns-decision-mean-for-your-business?__utma=1.308413983.1343175237.1343175237.1343175237.1&__utmb=1.1.10.1343175237&__utmc=1&__utmx=-&__utmz=1.1343175237.1.1.utmcsr=users.techtarget.com|utmccn=(referral)|utmcmd=referral|utmcct=/registration/searchfinancialsecurity/ActivateUpdateUser&__utmv=-&__utmk=198073647. [Accessed 23 July 2012] Amini, M.T., Ahmadinejad, M and Azizi, M.J. (2011). Adoption of Internet Banking by Iranian Customer: An Empirical Investigation. The International Journal of Management Science and Information Technology, 1(1); p. 47 – 64 Ashford, W. (2008). Domain name move could trigger flood of disputes. [Online] Available at http://www.computerweekly.com/news/1280096736/Domain-name-move-could-trigger-flood-of-disputes. [Accessed 24 July 2012] Computer Weekly. (2009). New top level domains could help brands beat cybersquatters. [Online] Available at http://www.computerweekly.com/news/2240089648/New-top-level-domains-could-help-brands-beat-cybersquatters. [Accessed 24 July 2012] Crosman, P. (2011). New Doman Names Pose Opportunity and Challenge to Banks. http://www.americanbanker.com/issues/176_152/online-banking-security-icann-gtld-1040941-1.html Gerard, P., Cunningham, J.B and Devlin, J.F. ((2006). Why consumers are not using internet banking: a qualitative study. Journal of Services Marketing, 20(3); p. 160 - 168 Grant, I. (2008). Bargain hunters targeted by brand scammers. [Online] Available at http://www.computerweekly.com/news/2240103976/Bargain-hunters-targeted-by-brand-scammer. [Accessed 24 July 2012] Hall, A. (2011). ICANN’s expansion of domain names suffixes: the benefits and disadvantages to businesses. [Online]. Available at http://www.computerweekly.com/opinion/ICANNs-expansion-of-domain-names-suffixes-the-benefits-and-disadvantages-to-businesses [Accessed 23 July 2012] Howard, D.L. (2001). Trademarks and Service Marks and Internet Doman Names: Giving ICANN Deference. 33 Arizona, St. Louis Journal 637 ICANN. (2012a). FAQs. [Online]. Available at http://www.icann.org/en/about/learning/faqs. [Accessed 23 July 2012] ICANN (2012b).Welcome to ICANN. [Online] Available at http://www.icann.org/en/about/welcome. [Accessed 23 July 2012] Pepitone. J. Bugs and bungling slow major internet name expansion. [Online] Available at http://money.cnn.com/2012/06/08/technology/ICANN-domain-expansion/index.htm [Accessed 29 July 2012] Savage, M. (2009). Online scammers explot bank brands and consumers’ financial woes. [Online] Available at http://searchfinancialsecurity.techtarget.com/news/1360611/Online-scammers-exploit-bank-brands-and-consumers-financial-woes?__utma=1.308413983.1343175237.1343175237.1343175237.1&__utmb=1.11.10.1343175237&__utmc=1&__utmx=-&__utmz=1.1343175237.1.1.utmcsr=users.techtarget.com|utmccn=(referral)|utmcmd=referral|utmcct=/registration/searchfinancialsecurity/ActivateUpdateUser&__utmv=-&__utmk=219462681. [Accessed 23 July 2012] Read More