18(c) What operating rules will you adopt to eliminate or minimize social costs?

Prototypical answer:

now is one of the key brands under PCCW Limited, a company listed on the Stock Exchange of Hong Kong – HKEX, stock code: 0008. You may see from the financial reports provided on www.pccw.com that PCCW is financially strong and we do not foresee any difficulties in funding future operations. Furthermore, we believe that such foundation, including the proposal to first operate the “.now” TLD as a brand TLD ensures that social costs are minimized and that the TLD could be introduced in a stable and orderly manner.

At PCCW, we have a Risk Management department and other internal controls in place to supervise the usage and operation should we decide to widely use the gTLD.

Initially, the “.now” gTLD will be operated as a brand TLD and not open for registrations to external communities.

When we decide to offer the “.now” TLD for external communities, the Registry is committed to introducing the “.now” TLD in an orderly manner to minimize the social costs and maximize the social value of the TLD. Following the successful launch of the .ASIA TLD, and leveraging the experience and knowledge from the DotAsia (through Namesphere), the Registry is committed to developing and implementing a comprehensive startup process that would include, besides Sunrise and Landrush processes, a Multi-Category Pioneer Domains Program.

The Pioneer Domains Program will be designed to curb abusive registrations, whereby reducing social costs, as well as to promote the adoption of the TLD, to maximize the social value of the TLD. An important goal of the program is to allow for the introduction of showcase domains under the TLD in a well structured manner, while ensuring that the protection of the rights of others are maintained. The implementation of showcase domains support the development of positive foundation of usage of the TLD. More detailed explanation of the overall startup process is included in #29.

In response to the question specifically:

1. Mechanisms for Resolving Multiple Applications to a Domain

A comprehensive Sunrise and Landrush program will be put in place at the launch of the TLD. As an important stakeholder of the Registry, DotAsia (through Namesphere) will be lending its experience and knowledge in the development of an appropriate Sunrise and Landrush program that includes mechanisms for resolving multiple applications to a domain when the TLD is first launched. More detailed explanation of the approach is included in #29.

During regular operations of the registry (upon GoLive and after Sunrise and Landrush), domain registrations will be accepted on a first-come-first-served basis. In the cases of contention against abusive registrations, the Registry will adhere to the UDRP and URS procedures.

2. Cost Benefits for Registrants

The Registry may implement periodic cost reduction programs to encourage the adoption of the TLD by registrants. Introductory programs may also be important to drive awareness and interest in the TLD as well.

3. Contractual Commitments to Registrants

The Registry will abide by the ICANN Registry Agreement requirements as well as ICANN Consensus Policies, including offering domain registrations for periods of one to ten years at the discretion of the registrar upon GoLive (when normal first-come-first-served registrations begin).

Besides policies and rules implemented by the Registry, the applicant believes that prudent operations as an economically viable and socially responsible TLD operator is an important mitigation of increased social costs as a new gTLD is being introduced. The Registry will leverage the knowledge and expertise from its technology provider and DotAsia to ensure that a substantial portion of the costs for operating the registry is managed in variable costs leveraging the economies of scale from already established operations and focus on delivering value to registrants and consumers with the introduction of the .HKT TLD and its mission and features.

Other Operating Rules Which Eliminate Or Minimise Social Costs

Abusive registrations will be prevented through having in place and enforcing a robust anti-abuse policy; this policy is described in detail in the response to Question 28. Afilias, as provider of back-end registry services, has extensive experience and responsive mechanism to defend against DDOS attacks as well as preventive measures against abusive spamming, phishing, etc. Above and beyond the Trademark Clearing House requirements, additional abuse prevention and rights protection mechanisms will be put in place.

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