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How much do brand owners spend on new domains?

As we wrote earlier, fears that new top-level domains will cause a wave of violations of intellectual property rights have not been justified. Evidence of this is a relatively small number of complaints of violations, as well as a low level of cybersquatting.

Today, new numbers have appeared that give some idea of ​​the costs of holders for registering domains in order to reserve the name of their brand.


Of course, this is only an approximate data, since it is impossible to say exactly for what purpose a particular domain is registered, but one thing is for sure: brand owners do not seek to massively occupy names in new zones in order to protect against cyberswitching.
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At the moment, the priority registration period for trademark owners (Sunrise) has ended in 128 zones, sales information is known for 101 zones.

The most names in this period were registered in the .clothing zone - 675. This is about 6% of the total number of registrations in this zone (11.301). More than three months have passed since the start of registration. The lowest number of domains during the Sunrise period is registered in the Arab zone شبكة. ("Network") -5 names -, but it only allows registration of Arab brands.

In all zones about which we have information (101 top-level domains), 14.567 domains were registered during the Sunrise period, an average of 144.2 per zone. According to official data, 1.87% of domains are occupied during the priority registration period, but this is a very high figure, since the calculation used data on zones in which free registration has not yet opened.

These figures cannot be compared, for example, with the start of .co or .xxx domains, in which during priority registration 11,000 and 80,000 names were registered, respectively.

It is easy to see that the phenomenon of mass registration in order to protect brands does not exist. Moreover, as we noted, there are quite a few fake brands that were registered only to occupy a domain with a keyword during the period of priority registration.

In the trademark database (Trademark Clearinghouse) currently 30.251 names are registered. The average cost of registration is about $ 150, so $ 4,537,650 was spent on this service. In total, 18.461 domains are occupied in the completed stages of priority registration. The average cost is about $ 165, a total of $ 3,046,089 was spent directly on domain registration.

Add to this the $ 100,000 spent on 50 reported complaints under the URS procedure (suspension of the cybersquatter domain at the request of the copyright holder).
Total - in all 128 new zones, brand owners spent only $ 7,683,739 on trademark protection.

Is it a lot or a little? Everyone has their own assessment criteria, but this is several orders of magnitude smaller than the amounts that were predicted by various experts on the protection of intellectual property. For example, back in September last year, the Coalition on Combating Violations in the Domain Sphere (CADNA) wrote that companies can spend up to 10 billion dollars to protect brands in new gTLDs.

Source: https://habr.com/ru/post/225037/


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