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
.BABY	Johnson & Johnson Services, 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)?

Over the past decade, ICANN has approved 15 new gTLDs which have historically been classified as either generic (.INFO, .BIZ, .NAME) or sponsored (.ASIA, COOP, .TRAVEL, .JOBS, etc.) gTLDs. It is anticipated that in this current new gTLD application round, many large international corporations will take the opportunity to register generic strings as top-level domains. This is a new approach to the operation of a gTLD in which the business plan relies on three important distinctions between it and the gTLDs that were approved in the 2001 and 2004 rounds of expansion.

First, there are now approximately ten small gTLDs that have fewer than 300,000 registrations and that offer clear models of successful operation; second, at least three experienced technical back-end suppliers (i.e., SRS⁄DNS services) are in place; and third, with many new .GENERIC gTLDs, well-understood registry operations will be fully supported by an established and financially sound business operating a .GENERIC gTLD in addition to and in conjunction with its primary business.

The .BABY gTLD presented here minimizes the risk and uncertainty of prior gTLDs by drawing upon more than a decade of gTLD industry development and by relying upon the established online track record of Johnson & Johnson.

JJSI believes that the safeguards set forth in the Applicant Guidebook and additional RPMs identified in Section 18.2.5 are primary drivers to minimize potential negative social costs.

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

JJSI believes that the proposed operation of the .BABY gTLD as set forth in this application has no known negative consequences or cost implications for consumers. On the contrary, the proposed operation of this registry will likely lead to direct benefits for consumers, as outlined 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?

JJSI does not envision multiple applicants for the same domain name, given the phased approach and limited initial registrant universe. However, if such an instance should arise, JJSI believes that a phased equitable allocation approach, modeled after the ones that ICANN has previously approved in connection with numerous ICANN Registry Service Evaluation Process (RSEP) requests, would be the most prudent path forward, i.e., RFP, auction, and then first-come-first-serve.

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

JJSI does not envision any advantageous pricing, introductory discounts, or bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .BABY gTLD, which is to be a trusted online source identifier. However, JJSI reserves the right to re-evaluate this business decision in the future and may impose a fee on partners or affiliates should it be deemed beneficial or relevant to Johnson & Johnson’s overall business strategy.

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.

JJSI is committed to providing domain name registration services in accordance with the periods set forth in the Registry Agreement and providing domain name registrants with pricing notice and predictability. However, as noted in the proposed business model (18.1.2), JJSI’ current best thinking envisions offering domain name registration services only to Johnson & Johnson and its qualified subsidiaries, affiliates, and partners at first. Therefore, having an existing relationship with Johnson & Johnson would initially be a condition precedent for the ability to register a .BABY domain name. These terms will be known by this class of domain name registrants prior to the creation of any legal obligation between the parties.

JJSI 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, Johnson & Johnson, as the primary registrant within the .BABY gTLD, will only be registering domain names on an annual basis. This is to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46 of this application, i.e., no multi-year registration or deferred revenue.

If JJSI moves forward with a validation process whereby parties outside the proposed network of Johnson & Johnson partners, without such a stringent commercial agreement, are permitted to register and use .BABY domain names, JJSI is fully committed to providing these domain name registrants with annual registrations that include pricing predictability and notice in connection with the registration of domain names corresponding to their business or trade name. However, in connection with potential premium generic or geographic domain names there may be additional requirements that would legally bind these registrants in connection with the registration and use of these domain names. These terms will be known by this class of domain name registrants prior to the creation of any legal obligation between the parties.