August 19, 2008 -- (WEB HOST INDUSTRY REVIEW) -- International Internet regulation body ICANN (icann.org) announced this week that it will handle any disagreements over who wins the right to new generic top level domains by auction.
The organization said that it will hold auctions in the event that two organizations competing for the right to a gTLD are tied on other fronts.
In June, ICANN said that it would put an end to the number restriction on gTLD registration, enabling companies and individuals to register more than the previously allotted 21 gTLDs.
Many critics have called the decision a "nightmare" for brand owners because many of them will feel forced to buy their brand's name on the various kinds of TLDs.
This latest announcement by ICAAN to hold auctions to settle disputes regarding the right to register words as domains will likely be met with similar criticism.
The June announcement that allows any individual to register any word as a TLD must meet four conditions: the TLD must respect previous rights and marks, it cannot be confusingly similar to any existing TLD, it must be with the full agreement of that community, and it must adhere to general morality and public order.
In the event that two TLD bids are tied, ICANN said that it would hold an auction to decide who gets the right to register the domain.
The auction would only be used as the final means of settling dispute cases that have not been resolved at any of the previous stages in the process.
Consultancy firm Power Auctions released a report that cites a four year old paper produced by the Organization for Economic Cooperation and Development, which claims that auctions are the most efficient way to distribute domains in a fair manner.
The report also suggested a system of handicaps in favor of some kinds of applicants.
