Donuts Domain Registrations: A Post-Sunrise Analysis

The launch of new Top-Level Domains (TLDs) has brought significant changes to the domain name landscape. Donuts, a leading registry operator, has introduced several new TLDs, each undergoing a “sunrise period” designed to give trademark holders the first opportunity to register domain names matching their trademarks. This article delves into an analysis of the initial registrations for seven Donuts TLDs after their sunrise periods, revealing interesting trends, potential strategic maneuvers, and some concerning loopholes in the system.

Donuts recently published zone files for seven TLDs that recently completed their sunrise phases: .bike, .clothing, .guru, .holdings, .plumbing, .singles, and .ventures. A review of these zone files reveals that most of these TLDs have at least 100 registered domains. However, a closer examination uncovers potentially questionable activity, suggesting that some applicants may have attempted to exploit the system.

Understanding the Data: Caveats and Considerations

Before diving deeper, it’s crucial to acknowledge some important limitations and considerations regarding the zone file data:

• Timing: The zone files, dated January 31st, represent a snapshot of registrations *after* the sunrise period. This includes domains registered during the sunrise phase and those registered during the subsequent “Early Access Program” (EAP).
• Incomplete Data: It’s possible that some registered domains might not be included in these zone files. For example, wordpress.guru was registered during the sunrise period but doesn’t currently have active nameservers and might not be reflected in the data.
• Blocked Domains: The zone files do not include domains blocked due to name collision issues or through the Domain Protected Marks List (DPML), a service that allows trademark holders to block their marks across multiple TLDs.
• Early Stage: The TLDs are still relatively new, and the registration landscape is likely to evolve over time.

Therefore, the registration numbers presented here should be considered as the *minimum* number of actual registrations. Further growth and changes are expected as awareness of the new TLDs increases and brand protection strategies evolve.

Registration Volume: A TLD-by-TLD Breakdown

Analyzing the seven TLDs, we observe significant variations in registration volume:

• Moderate Volume (100-200 Domains): Four TLDs – .bike, .ventures, .holdings, and .guru – fall within the range of 100 to 200 registered domains. This suggests a moderate level of interest and adoption for these extensions.
• Lower Volume (Below 100 Domains): The .plumbing and .singles TLDs exhibit registration volumes below 100. This could indicate a lower perceived value or relevance for these specific extensions, or it could simply be a matter of time before adoption increases.
• Higher Volume (Over 500 Domains): The .clothing TLD stands out with over 500 registered domains. This strong interest likely reflects the importance of brand protection within the fashion and apparel industry, with many brands proactively securing their trademarks in this relevant extension.

It’s anticipated that registration numbers will generally increase across all TLDs as more businesses and individuals become aware of the new options and understand the importance of protecting their intellectual property.

Brand Protection Strategies: A Closer Look

The sunrise period is designed to allow trademark holders to protect their brands by registering corresponding domain names. However, the effectiveness and efficiency of this process can vary significantly. Some organizations are adopting a comprehensive approach, registering their brands across numerous TLDs, while others are taking a more selective approach.

For example, the decision by TD Ameritrade to register TDAmeritrade.plumbing is somewhat puzzling. While securing a domain that matches their brand is generally a good practice, it’s unclear why they chose this particular TLD. A more cost-effective and strategic approach might have been to use the Domain Protected Marks List (DPML) to block their trademark across a wider range of TLDs.

Early Access Program: A Premium Option

The Early Access Program (EAP) offers an opportunity to register domain names before general availability, but at a significantly higher price. The example of soccer.guru, registered to an individual in Ontario, Canada, highlights the premium associated with EAP registration. The buyer likely paid at least $10,000 to secure this domain, demonstrating the perceived value of a specific domain name within a particular niche.

Potential Abuse: Gaming the System?

A significant concern arises regarding the potential for abuse of the Trademark Clearinghouse (TMCH) and the sunrise registration process. In the past, during the launch of TLDs like .eu and .info, some individuals and companies attempted to “game” the system by registering dubious trademarks specifically to secure domain names during the sunrise period.

The Trademark Clearinghouse, intended to validate legitimate trademarks, has been criticized for containing marks of questionable quality. New TLD registries, bound by their contracts with ICANN, are generally obligated to grant sunrise registrations to anyone with a validated TMCH registration, regardless of the underlying legitimacy of the trademark.

This loophole appears to have been exploited in the case of Donuts TLDs. Donuts was required to grant sunrise registrations for domains like luxury.guru, cloud.guru, bet.guru, realestate.guru, wedding.clothing, travel.singles, and finance.holdings at significantly discounted sunrise prices (under $200).

The common denominator among these trademarks is their origin: Switzerland. Further investigation reveals that the trademarks are owned by other new TLD applicants, all sharing the same address: 427 N. Camden Drive in Beverly Hills. This address is associated with .Luxury, What Box? Holdings (another TLD applicant), and lawyer Thomas Brackey. It has also been discovered that What Box? holds a TMCH registration for the mark “credit.”

This pattern strongly suggests a deliberate attempt to exploit the sunrise registration process by registering trademarks solely for the purpose of securing valuable domain names in competing TLDs.

Mitigation Strategies: Lessons Learned

Uniregistry’s decision to include a provision in its registration agreements that restricts the transfer of sunrise-registered domains is a proactive step to mitigate potential abuse. This measure makes it significantly more difficult for individuals or companies who acquire domains through questionable means to profit from them by selling them to legitimate brand owners.

Other registries should consider implementing similar safeguards to protect the integrity of the sunrise process and prevent the exploitation of the Trademark Clearinghouse. Tighter scrutiny of trademark applications within the TMCH is also needed to ensure that only legitimate marks are validated and used to justify sunrise registrations.

Conclusion: Navigating the New Domain Landscape

The launch of new TLDs presents both opportunities and challenges for businesses and individuals. While the sunrise period offers a valuable opportunity to protect trademarks and secure valuable domain names, potential loopholes and strategic maneuvers require careful consideration. By understanding the dynamics of the domain registration process, the limitations of the data, and the potential for abuse, stakeholders can develop effective strategies to navigate the evolving domain landscape and protect their brands in the digital age.