New gTLDs: the High Cost of Branding Your Domain

In June, this year, the ICANN has released a new program, that will change domain naming, and even the Internet as we know it.  In the past, there were only 22 top-level domains (gTLDs) terminations, including .com, .biz, .info, .org and .net. But in the near future, gTLDs will be able to end with almost any word in any language. Imagine .nike, .coke, .france, or virtually any word you can think of.

But the probability that  small businesses can afford the luxury of even applying for a new gTLD is very low. The application fee is, for many,  exorbitant. The Internet Corporation for Assigned Names and Numbers ICANN estimates it at US$185,000. Applicants will be required to pay a US$5,000 deposit fee per requested application slot when registering. The US$5,000 will be credited against the evaluation fee. Other fees may apply depending on the specific application path. So who can afford to register a dot brand domain, when the costs are so discouraging?

Not many, and for small businesses, owning a dot brand domain may be out of reach. But for those who register their dot brand domains in the Grand Duchy of Luxembourg, there is hope. Luxembourg has a very friendly IP (intellectual property) legislation, that provides for an 80% exemption of certain types of IP-related income, as well as capital gains realized on the disposal of such IP.  Based on this IP friendly legislation, VAYTON Brand Capital can help businesses auto-finance the dot brand registration, meaning that  companies will be able to recoup their outlay quickly. In the space of one or two years, the investment will be offset by tax savings. Again, this opportunity is only available for companies registered in Luxembourg, companies that register their IP in Luxembourg, or companies whose IP assets are in use by a Luxembourg-based business.

The question is, what happens with companies not registering their dot brand domains in the Grand Duchy of Luxembourg? Are there any warrantees for them that US$185,000 is money well spent?