gTLD	Full Legal Name	E-mail suffix	Detail
.MERCK	Merck Registry Holdings, Inc.	fairwindspartners.com	View

18.3.1 What operating rules will you adopt to eliminate or minimize social costs (e.g., time or financial resource costs, as well as various types of consumer vulnerabilities)?

MRH has proposed operating rules to limit registration to MRH and potentially qualified subsidiaries and affiliates and will provide a trusted online environment for end-users.

Therefore, one way in which social costs will be eliminated is that there will be no defensive need for other trademark and brand owners to register second-level domains in the .MERCK gTLD. In addition, the .MERCK gTLD will provide end-users with a trusted source for MRH information, goods, and services.

18.3.2 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?

MRH believes that the proposed operation of the .MERCK gTLD as set forth in this application has no known negative consequences or cost implications to end users. On the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to end users.

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

MRH does not envision multiple applicants for the same domain name, as domain names will only be allocated to its parent company, MSD, and potentially MSD’s qualified subsidiaries and affiliates.

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

MRH does not envision any advantageous pricing, introductory discounts, or bulk registration discounts at this time because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .MERCK gTLD as a trusted online source identifier for MSD, and potentially its qualified subsidiaries and affiliates.

Moreover, it is the current intention of MSD to have MRH provide domain name registrations initially at no cost, at least for the first five years of operation.

However, the company reserves the right to reevaluate this decision and may choose to impose a fee in the future. Any potential registrant fees imposed upon licensees or strategic parties will be commensurate with commercial agreements and made if this class of registrants is permitted to register domain names in the .MERCK gTLD.

18.3.5 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.

MRH is committed to providing the domain name registration periods set forth in the Registry Agreement. Moreover, it is the current intention of MSD to have MRH provide domain name registrations initially at no cost, at least for the first five years of operation. Therefore, providing contractual commitments in a domain name Registrant Agreement regarding the magnitude of price escalations does not seem relevant or appropriate. MRH acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.”

MRH acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.” However, MSD, as the sole registrant within the .MERCK gTLD, intends to only register domain names on an annual basis through a single registrar.

This is done to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46, (e.g., no multi-year registration or deferred revenue).

gTLD	Full Legal Name	E-mail suffix	Detail
.ALLSTATE	Allstate Fire and Casualty Insurance Company	fairwindspartners.com	View

18.3.1 What operating rules will you adopt to eliminate or minimize social costs (e.g., time or financial resource costs, as well as various types of consumer vulnerabilities)?

AFCIC’s proposed operating rules to limit registration as described herein will provide a number of benefits, as well as a trusted online environment for consumers of Allstate content and other information and services. Trademark and brand ownersʹ costs will be mitigated, since there will be no need to defensively register second-level domains in .ALLSTATE.

In addition, this verified ecosystem will provide consumers with a single, trusted source for Allstate content with a substantially lower risk of exposure to phishing, fraud and⁄or other Internet scams, thus reducing the level of consumer vulnerability.

18.3.2 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?

AFCIC believes that the proposed operation of the .ALLSTATE gTLD as set forth in this application has no known negative consequences or direct cost implications to consumers.

On the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to consumers given the trusted nature of the .ALLSTATE gTLD namespace, as described in detail above.

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

Given the restrictions on registrations noted above, AFCIC does not envision multiple applicants for the same domain name.

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

AFCIC does not envision any pricing, introductory discounts, or bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the Purpose of the .ALLSTATE gTLD. There is no anticipated market for second-level registrations in the .ALLSTATE gTLD.

Moreover, it is the current intention of AFCIC to provide domain name registrations to Allstate Insurance Company, and qualified subsidiaries and affiliates as well as business partners having the Required License, at cost or at no cost, though AFCIC reserves the right to reevaluate any pricing decision and may choose to impose additional fees in the future. Any registrant fees imposed in the future will be consistent with the Purpose as well as the Draft New gTLD Registry Agreement and ICANN Consensus Policies.

18.3.5 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.

AFCIC is committed to providing the domain name registration periods set forth in the Registry Agreement. However, as noted above, the registration and use of a .ALLSTATE domain name is restricted.

Therefore, providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. Additionally, as noted above, the current business model envisions AFCIC providing domain name registrations at cost or at no cost.

AFCIC acknowledges that the current Draft New gTLD Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.” However, the selection of the number of years for which a particular second-level domain name is registered is a decision of the registrant and not the registrar. Given that all second-level registrations will be consistent with the Purpose and restricted as set forth above, AFCIC intends to only register domain names on an annual basis.

This is done to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46, e.g., no multi-year registrations or deferred revenue.