Can Icann clarify dot-eu names?

We've heard about household names such as AOL, Alcoholics Anonymous and Marks & Spencer falling foul of cybersquatting attempts. However, now Icann, the body controlling much rulemaking on the internet, is discussing the release of five new domain names just as likely to affect companies.

Among these is dot-eu (.eu), and a storm is brewing after Icann allowed an internet group to roll out a dot-eu dot-com address - in direct competition with European Commission (EC) efforts to obtain authorisation for dot-eu.

The registering company in question - Centralnic - has come under fire, accused of trying to scupper European plans.

Christopher Wilkinson, spokesman for the European Commission, called the use of dot-eu dot-org "faddish", claiming it had not caused any serious problems.

But at the same time he criticised Centralnic for acting without prior authorisation from Icann or the European Union (EU).

He said: "Centralnic has done it off their own bat. They have no right in the EU code to use it and frankly the next thing I expect to see is the trademark people knocking on their door in relation to possible cybersquatting problems."

But action can only be taken against a company if the use of dot-eu dot-com leads to any infringements or complaints of cybersquatting, he said.

However, the debacle does call into question Icann's role as internet watchdog.

Nick Lockett, lawyer at Sidley & Austin, questioned Icann's competency.

"This calls into question the commercial awareness of Icann and their competence when it comes to administration of the internet. How can a competent regulator allow a launch of a dot-eu dot-com domain having just announced the creation of a dot-eu top level domain? The confusion is going to be unbelievable."

The main problem, he claimed, is that the rival URL creates a back door to early registration for companies eager to have a dot-eu address. Once a company is registered as dot-eu dot-com it becomes an issue of intellectual property rights.

"For example, the owner of videos.eu.com will be able to claim rights in the name videos.eu and that anyone registering videos.eu will be breaching the trademark and intellectual property rights of videos.eu.com. The registrations in the dot-eu domain are likely to be confusingly similar under trademark law and may fall foul of the bad-faith registration provisions," explained Lockett.

New rules for dot-eu are going to have to be very carefully thought out, he warned, and it is going to create a nightmare for the opening of registrations in the dot-eu domain.

The EC is attempting to have dot-eu registered as a new generic Top Level Domain name (gTLP) giving it the same prestige as dot-com, dot-net or dot-org. But it had been working on its proposal for months before the storm blew up.

When the Commission published its working paper for dot-eu in February, it received 92 responses including 28 from industry organisations, domain name registration companies and six national administrators all supporting and offering advice on the domain name.

Icann is expected to announce the latest additions on 20 November. Names expected to be released include dot-shop, dot-travel and dot-sex. However, domain name registrars will have to pay an advance fee of $50,000 and demonstrate they can competently administer the names before Icann distributes them.

In this respect, the EC is ahead of the game. It has started work on a legal framework for the implementation and operation of dot-eu which will "include measures to counter the speculative and abusive registration of names". It has also informed the US government and Icann that it will be the public body charged with managing the name.

Also in the EC's favour is its attitude towards domain name registration rules. It claims rules will be tightened up to exclude non-EU-based businesses. Companies wanting to register their names will have to show a presence in at least one European Union country or pay taxes in the EU.

But despite its best efforts the EU is facing a dilemma as Centralnic continues to offer the rival domain name.

It and other domain name registering bodies look set to keep on pushing current rules and guidelines, and this will continue to cause problems. Already some industry groups are calling for stronger rules for governing registrars as well as domain names.