CADNA

Type:	Non-profit Organization
Industry:	Internet
Founded:	2007
Founder(s):	Josh Bourne Phil Lodico
Headquarters:	Washington, D.C.
Country:	USA
Website:	www.cadna.org
Blog:	CADNA Blog
Key People
Josh Bourne,co-founder & President Phil Lodico, co-founder

The Coalition Against Domain Name Abuse (CADNA) is a non-profit organization dedicated to fighting against domain name abuse, particularly cybersquatting, and other illegal cyber activities. The organization is fundamentally supportive of ICANN and its multi-stakeholder model, but is still critical of some of its decisions and actions, its new gTLD program in particular.

Background

FairWinds Partners' co-Managing Partners, Josh Bourne and Phil Lodico, together with several brand owners such as Dell Inc., Nike, Inc. and Marriott International, Inc. established the organization in 2007. CADNA's main objective is to decrease instances of cybersquatting in all its forms. CADNA is also campaigning for policy reforms within ICANN.

Fairwinds Partners

The co-founders of FairWinds, Josh Bourne and Phil Lodico, also co-founded the Coalition Against Domain Name Abuse (CADNA), a non-profit advocay group dedicated in combating domain name abuse by increasing people's awareness and encouraging internet users and stakeholders to take action to be able to stop all illegal internet activities such as cybersquatting and trademark infringement.

The distinction between their businesses has been criticized, given that FairWinds is offering new gTLD consultancy services and CADNA has been leading an oppositional effort against the new gTLD program. This line has not always been clear, such as when FairWinds seemingly changed their approach to utilize their CADNA association to highlight that they are able to help brands defensively submit applications for gTLDs and Brand gTLDs. They explicitly noted that some brands should be choosing to apply for generic strings in an attempt to head-off any moves that their direct competitors may make for the same string; the brand could then choose to opt-out for a 70% refund should it find that its competitors did not apply and it is no longer interested in the string. FairWinds is not the only consultancy service that will likely profit from defensive registration, despite the fact that ICANN led an outreach effort to educate brands that defensive registration is not necessary. The widespread perception that defensive registration was necessary was seen as a failure on ICANN's part, and it was largely addressed only after the new gTLd program was approved and high level critics, such as Secretary Lawrence Strickling of the U.S. Government, called on the organization to rectify the situation.

Specific Objectives

CADNA aims to achieve the following specific objectives:

• Reduce online infringements across all top-level domains (TLDs) and ensure that new TLDs are introduced in a secure and orderly manner that does not put companies or Internet users at risk
• Prevent cybercrime and cybersquatting by increasing penalties for these practices
• Create manageable online infringement monitoring and enforcement strategies for trademark owners to protect consumers efficiently
• Implement ICANN policies that discourage registrants and others who enable domain abuses
• Educate elected officials regarding domain-related policy reform that will improve consumer safety

Membership

The member organizations of CADNA are owners of several global brands. They jointly believe in the significance of online brands and trademarks protection. These organizations are represented by individuals who are experts in the field of Trademark Counsel, Online Marketing, Corporate and Government Affairs and Risk Management. A complete list of CADNA's membership can be found here.

ICANN Correspondence & Commentary

The Coalition Against Domain Name Abuse has openly criticized the current ICANN structure and claimed that much of the international Internet governing body's policy-making processes have been taken over by some of the stakeholders that are profiting from domain names. The organization actively participates in ICANN activities, particularly in providing its comments on policy issues related to the interests of businesses and consumers.

CADNA provided comments on numerous issues discussed by the ICANN community, particularly the latest issue of the implementation of the new gTLD expansion program, which launched in January, 2012. During the development process of the New gTLD Applicant Guidebook, CADNA was been active in submitting its public comments and recommendations. The organization recommended the following revisions to the Draft Application Guidebook Version 4:

• Intellectual Property should be a priority in background checks - CADNA wanted to know the about the selection criteria and detailed information on the agency that will be chosen to conduct background checks. It believes that checking the history of intellectual property violations should be the top priority of background checks.
• ICANN should require proof of good standing - CADNA argued that it is necessary to require applicants to prove their good standing early on to prevent a waste of time and resources.
• Whois requirements should be uniform - The organization reiterated that ICANN should be specific in its rules and ensure the maintenance of an accurate Whois Database.
• Mandatory Sunrise Period should not hold domain names hostage - CADNA recognized the importance of the Sunrise period and suggested that domain names should not be offered at a very high price. Registries should prioritize trademark owners to register their domain names and it shouldn't be too expensive.
• Trademark Clearinghouse should be more than a database - CADNA proposed that ICANN needs to further review the purpose of the Clearinghouse as a mechanism for the protection of trademarks and not just a mere repository for information.
• Certain Clearinghouse services should be limited - What entities that will be given the right to access the data services of the Clearinghouse should be clarified by ICANN. In addition, the organization suggested ICANN develop and implement mechanisms to guard data and guarantee its exclusive use by relevant trademark owners.
• The term "text mark" should be clearly defined - CADNA asked ICANN to clarify what constitutes a text mark.
• Cost should be shared by stakeholders - CADNA emphasized that the beneficiaries of the Trademark Clearinghouse are not only brand owners, therefore the costs should be borne by all stakeholders.
• Decision on third-party contractor should be open and transparent - The organization encouraged ICANN to select a contractor with a strong background in trademark protection issues and the process should be done in an open and transparent manner.
• The URS should be able to transfer domain names, expedit and utilize forms
• On Trademark Post-Delegation Dispute Resolution Procedure (PDDRP), CADNA suggested the following:

1. Registry operators should be held accountable for certain domain name infringements occurrences within their registries.

2. PDDRP should not unnecessarily burden complainant

3. Expert panel decisions should be enforced

4. ICANN should set limits for cost

• ICANN should combine the Registry Restrictions Dispute Resolution Procedure (RRDRP) and Post-Delegation Dispute Resolution Procedure (PDDRP)

Further Recommendations

Following the approval of the Applicant Guidebook, CADNA continued to offer critiques and recommendations to ICANN. These included announcing the date for the second round of gTLD applications; that .Brand applicants be given a discount on multiple applications; and that ICANN implement a policy that allows trademark owners to register a low cost, one-time block on their marks before the Sunrise or Landrush Periods. The last recommendation was inspired by a similar policy implemented by ICM Registry for its .xxx sTLD.

Praise of ICANN & The Multi-Stakeholder Model

In February, 2012, CADNA issued a statement that it fundamentally supported ICANN and its multi-stakeholder model. It seems the statement was made in response to others' recent criticism of ICANN and the desire by some countries and stakeholders to move authority over the root zone to the United Nations and its International Telecommunications Union. The statement also thanked Larry Strickling and NTIA for educating the American business community that it too had to be involved in ICANN's multi-stakeholder model in order to best protect their interests. While CADNA still has problems with ICANN's new gTLD program, it is still supportive of the organization and is opposed to any effort to strip ICANN of its current authority.

Recommendations for Perpetual Blocks

In September, 2012, CADNA sent a letter to ICANN, its GAC, and the U.S. National Telecommunications and Information Administration to request that all new, open gTLD registries are required to implement a Perpetual Block Option or a Domain Protected Marks List (DPML). A perpetual block option would allow a given corporation to protect their IP and trademarks through a one-time registration, and was compared by CADNA to the model used by ICM Registry when launching .xxx. A DPML would block users from registerting domain names related to trademarks registered with the Trademark Clearinghouse. CADNA notes that there are about 400 applications for generic terms that do not contain any such IP protection mechanisms, and consequently risk becoming spaces for IP infringement.

Request for Future New gTLD Applications

CADNA has been critical of ICANN's New gTLD Program, claiming that its launch is premature and the policy development process that led to the creation of the Program lacked transparency. However, the organization has clarified that is not totally against the introduction of new gTLDs. CADNA clarified this position when Josh Bourne, President of CADNA, sent a letter to ICANN President and CEO Rod Beckstrom asking the Internet governing body to disclose the schedule for future rounds of new gTLD applications. According to Bourne, after hosting a conference entitled "What's at Stake: The Reality of ICANN's New gTLD Program for Brands," participants concluded that CADNA would submit a proposal to the ICANN Board. In its proposal, CADNA asked that the ICANN Board "request an Issues Report to formally initiate a policy development process to determine when the next round of new gTLD applications will occur, thereby affirming its commitment to opening a second round in a timely manner." Bourne emphasized that CADNA does not object the promotion of innovation and improved competition through the introduction of new gTLDs; however, he said that ICANN has structured this New gTLD Program in such a way that it does not meet that objective. Furthermore, Bourne said that if ICANN would reveal a second round of applications, it might help ease the anxiety felt by businesses and subdue their hostility regarding the upcoming launch of the New gTLD Program, because it will give them the opportunity to prepare more thoroughly and decide if they will benefit from participating in the Program. As is, with the dates of future rounds unknown, many companies feel a sense of market scarcity and feel obliged to rush to apply immediately, before being able to weigh the costs and benefits.

CADNA Founders Promote New gTLD Consulting Services

On November 15, 2011, FairWinds Partners, one of the founding member organization of CADNA, issued a press release regarding its new, full-suite gTLD consulting services to brand owners that are planning to participate in the ICANN new gTLD program. Fairwinds Partners is marketing its expertise in the domain name industry and claims that it can clarify the confusions surrounding the program and it can help design a strategy for brand owners to make the most out of the opportunity. Fairwinds Partners promised that it will not only submit the application but it will also communicate with ICANN during the entire application process, the company admitted that it had been critical of the Internet governing body for years.

Reaction to Senate Hearing on New gTLD Program

In connection to the negative reactions of various organizations regarding the program, CADNA's included, a hearing was conducted by the Senate Committee on Commerce, Science and Transportation on December 8, 2011. This initiative by the Senate was commended by CADNA. The coalition believed that the hearing paved the way to reform and improve the new gTLD program and ICANN's policy development process. CADNA president Josh Bourne stated that the coalition is committed to looking for an attainable solutions to improve the new gTLD program and urged the Internet community to stop complaining about the policy and find constructive ways to improve it. He also said; "The Coalition has always supported the multistakeholder system and strongly believes that with some reforms, ICANN can better fulfill its designated mission".

However, the following week at a House of Representatives hearing on the new gTLD program, CADNA came to the support of ICANN. CADNA's change of heart came about as their sister group, FairWinds Partners, decided to provide new gTLD consultancy services. Bourne praised .xxx's novel trademark protection mechanisms, saying they should be mandatory for all new gTLDs, and claimed that Congress could help in fighting cybersquatters by revising the old US Anticybersquatting Consumer Protection Act. He did, however, request that ICANN announce dates for subsequent gTLD application rounds, in order to relieve the "condition of scarcity" that this uncertainty created.

In a press release on January 3rd, 2011, CADNA reiterated these suggestions. In addition, they also suggested ICANN adopt a pricing structure where trademark owners applying for multiple trademark TLDs be given a price cut for every additional TLD after the first, and that non-profit organizations be allowed to participate in the Applicant Support Program, which reduces the cost of the application from $185,000 to $47,000 for qualified applicants. CADNA also recommended that, if ICANN is awarded the new IANA contract following its expiration in March 2012, that NTIA should make it a short contract, with extension relying on an audit of ICANN's structure, policy development process, governance, transparency, and success of the new gTLD program. In addition to the press release, the recommendations were also relayed in a meeting with NTIA's Assistant Secretary Larry Strickling, and in a letter to ICANN.