ICANN plots change to unlimited domain names

Often, because the illegally registered domain names carry an important variant of the company’s name, the fraudsters end up being paid millions of dollars to reverse the “brand-jacking”.

According to the World Intellectual Property Organisation (WIPO), there were 2,156 reported cases of cybersquatting in 2006, representing an 18 per cent increase over 2006 and a 48 per cent increase over 2005.

Companies around the world have been registering one or all of their brands on the few domain names in a bid to fend off the fraudsters.

The businesses fear that a multiplicity of domain names will push them to register their brands and pay annual fees to rights holders of each of the new domains who pay ICANN a non-refundable deposit of $55,000 and $185,000 for evaluation.

But analysts say the fears are unfounded since the new domain names will lead to fragmentation that will not harm established businesses.

For instance, a company involved in sale of computer hardware is unlikely to be affected by registration of its name on a .food domain.

The fragmentation is likely to puncture the big business of re-selling domain names.

Some of the most expensive domain names have been sold from $2 upwards, riding on the back of their unique names that draw in massive traffic.

Sex.com which was sold for $14 million back in 2006 is set to be auctioned next week, with bids starting from $1 million.