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

Prototypical answer:

i. How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?

Answer: There will be three main phases for domain name registration upon the launch of the registry namely:

1. Sunrise
a. Government
b. Trademarks
c. Company Name
2. Landrush
3. General Availability

During the Sunrise phase, there are three identified sub-phases as follows:

1. Government
This sub-phase is only open to government organizations. If there are multiple applications for the same domain name, the organizations that have applied for the same domain name will be notified of the contention. The domain name contention will be resolved via a English auction, where the highest bidder wins.

2. Trademarks
This sub-phase is only open to brand and trademark owners. The registry will work with the Trademark ClearingHouse for the verification and validation of registered marks. If there are multiple applications for the same domain name, Trademark ClearingHouse will only verify and validate the genuine owner(s) of the registered mark. If there are multiple owners of the registered mark in different countries, the registrants that have applied for the same domain name will be notified of the contention. The domain name contention will be resolved via an auction, where the highest bidder wins.

3. Company Name
This sub-phase is open to companies that would like to register a domain name similar to their company name but do not have an existing trademark. The company needs to submit a legal document that shows the legal name of the organization with its application. If there are multiple owners of the registered mark in different countries, the registrants that have applied for the same domain name will be notified of the contention. The domain name contention will be resolved via a English auction, where the highest bidder wins.

Next, multiple applications for the same domain name will be accepted in the Landrush phase. After the Landrush phase, registrants that have applied for similar domain names will be notified that the domain name contention will be resolved via an auction, where the highest bidder wins.

The registration of domain names in the last phase of the launch, General Availability will be on a first-com⁄first-serve basis.

ii. Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

Answer:
a). The registry intends to offer a low wholesale price of US$2 for registration and a competitive price for renewal and transfer.
b). The registry will make use rebate program to get registrars to push for more registrations. Every enrolled registrar will need to pass on some discounts to registrants.
c). we consider a discount price or free for seed users, like bloggers with frequently updated posts, Weibo (Chinese Twitter) users with 1 millions+ fans, Qzone (Chinese Facebook) users who shared photos a lot, celebrated domainers.

iii. Note that the Registry Agreement requires that registrars be offered the option to obtain initial domain name registrations for periods of one to ten years at the discretion of the registrar, but no greater than ten years. Additionally, the Registry Agreement requires advance written notice of price increases. Do you intend to make contractual commitments to registrants regarding the magnitude of price escalation? If so, please describe your plans.

Answer: Yes, Xiamen 35.com Technlogy Co. Ltd. will provide written notice of price hike in the registry agrreement. However, the registry shall not make any contractual commitment to Registrants regarding the magnitude of price escalation.

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