Sedo Outlines ICANN Proposal for Distribution of One-Letter Domain Names

[SedoCoUk]

Just and FYI for everyone that didn't catch this on the wire:

Democratic Process Designed as a Model for Issuing Similar High Value Domain Names Could Eliminate Additional ‘Internet Tax’

Cambridge, Mass. – January 25, 2006 – Sedo today issued a proposal whereby the Internet Corporation for Assigned Names and Numbers (ICANN), the independent body which oversees domain name distribution, could conduct an all-inclusive, transparent online auction for one-letter .com domain names. Sedo’s objective is to allow any global citizen that is interested in purchasing these high-value domain names to do so at fair market value, rather than limiting the process to large corporations or to those with a technology advantage.

The proposal comes in response to discussions that ICANN is considering making one-letter .com domains, such as O.com, available to the public. These domain names would be extremely valuable to any potential owner due to their branding potential. Most experts estimate these domain names could be worth up to six or seven-figures each.

Concurrently, ICANN is proposing an increase to its imposed fees per domain name registered. Critics argue that ICANN does not have legal standing to issue such fees or increases and such decisions should be governed by an outside body.

“As ICANN comes under increasing scrutiny from international critics, it must operate in the most self-sufficient and democratic way possible,” said Matt Bentley, CEO of Sedo. “This proposal allows ICANN to accomplish both goals by capitalizing on its most underutilized asset – high-value domain names – and distributing them in a fair, transparent manner and using those funds to eliminate any proposed ‘Internet taxes.’”

Typically, new domain names are distributed on a first-come, first-serve basis. However, this is not a truly democratic process as it favors those who have computer programs written to monitor and immediately purchase newly available domains.

Sedo proposes that the proceeds from the auction of uniquely valuable domains go directly to bolster the ICANN budget, offsetting the proposed new ICANN fees. The company estimates that the sale of the remaining 23 one-letter .com names would generate approximately $2 to $5 million. The auction would serve as an ideal test-case to determine whether the practice can be used in similar future situations.

For more information on Sedo’s proposal, please contact at Matt Bentley at Matt@sedo.com or visit http://www.sedo.com/ICANNproposal/.

[denny007]

All good, except each name would not be 6~7-figures but 7~8-figures and it would not generate $2-5M but rather $20-$50M. Google g.com, yahoo y.com - both can pay $10M easily...

[Bender]

... both can pay $10M easily...

it's a difference between what they CAN pay and what they are willing to pay.
If they can get them for free (or lawyer fees), they will.

[denny007]

Of course I expect that there will be an AUCTION for those names, as sedo proposes.
Any other way of distributing those domains will be pure fraud with corruption involved for sho...

[TurNIC.com]

I read that but I still can not understand the logic how auctining those names is "fair". Average Joe, myself and google or yahoo or some big boy with golden WC set will be part in an open auction and guess who is going to win!!

If you want a fair distribution of those 23 names why dont you just make a preregistration.

sedo should not need escrow money.
TurNIC

[dvdrip]

.org is putting 2 letters on hold and sedo proposes to release 1 letter .coms?
Yeah ok, and I want to buy "."!
Boring. Next discussion.
sedo should work harder on their business and leave ICANN to screw up on their own.

[Adonis]

Typically, new domain names are distributed on a first-come, first-serve basis. However, this is not a truly democratic process as it favors those who have computer programs written to monitor and immediately purchase newly available domains.

These names are basically "not owned" yet so how can one auction these off? The fair thing to do would be to allow anyone to apply for a name and use a lottery system to award the names at normal registration prices. Or better yet, not allow these single letter names at all. How rediculous to sell these 23 names off at a total value of $2 to $5 million, making the rich even richer and disallowing "average" people from even having a chance on obtaining these names. Your proposal is far from being democratic.

[Poker]

[QUOTE=Adonis]...making the rich even richer and disallowing "average" people from even having a chance...[QUOTE]

Welcome to the real world, don't hit the snooze button...

[namestrands]

off course with the sedo 10% cut, would sedo waive that? would be interesting to know...

Sedo proposes that the proceeds from the auction of uniquely valuable domains go directly to bolster the ICANN budget, offsetting the proposed new ICANN fees. The company estimates that the sale of the remaining 23 one-letter .com names would generate approximately $2 to $5 million. The auction would serve as an ideal test-case to determine whether the practice can be used in similar future situations.

[aacommerce]

off course with the sedo 10% cut, would sedo waive that? would be interesting to know...

For the notoriety I'm sure SEDO would glady waive the fee. They'll make more than their fair share as a result of the press.

[MrDude]

Something more fair would be to use some system to randomly give the name to current domain holders out the whois database, would be fair and everyone has the possibility.

Icann nor sedo deserve to profit from this imo

[financialtraffic]

Here, let me sell you a bridge. Don't mind the fact that I actually don't own it, but all the same I feel that I'm entitled to auction it off to the highest bidders.

I don't need the money either, it will be going to charity of course.

Now, who would like to bid?

[Acro]

Depends, do you own the land to either sides of the bridge? :-D

[maxo]

To say truth I do not really see any point, why will ICANN auction 1 letter domain names at sedo and why they should give 10% cut to them.

ICANN can easily set up the auction themselves and manage the auction. I think it is just sedo dreaming to get 10% cut out of those names.

[Acro]

It's called a PR for a reason.

[thejosh]

There is NO WAY that sedo will be able to auction these names! Why should sedo receive these names to auction, I will do it for a quarter of the price.

Why should they have the right?

[namestrands]

I would love to hear from sedo if they plan to take a commission on this..

Anyway, Even if ICANN where to Auction off Every 1 letter Domain, the proceeds would not delay any price rises. The problem here is not just ICANN its the Current operators of the .COM (Verisign).

If the .com market was opened up to competitive bidding then the price of Domains would have dropped, instead control is left with Verisign for another 6 Years at least.

Nothing is written in stone.. as only the other day ICANN has proposed a revised agreement that would put a CAP on any Price Increases.

SEDOs PR is somewhat misguided and misinformed, the fact that ICANN would want to release the domains should be in the same manner in which its foundation of domain ownership is built on "FIRST COME FIRST SERVE".. once you start messing with this, you are in danger of setting precedence.

SEDOs heading in there Press Release Pages States "We urge ICANN to make one-letter .com domains equally available to all interested parties" An auction does not make things equally available as it will prejudice the people who can not afford such high bids.

But, on the flipside from a business point of view I admire SEDOs balls for even suggesting such a request. Personally, the .com market will fade with the release of more TLDs, and incidents like this one will only serve to fuel the talks of a new internet.

[DomainFatigue]

Legalities aside for a moment, I'd like to see a domain lottery of some sort or another, perhaps where each person contributes a set amount to get in, and one by one, each winner can choose to register one domain name from the available pool. It would provide funding for ICAAN, but still allow the little guy a chance. Why should only the big boys get to play...

Now, back to reality... When compared to other markets, who really makes the money off an IPO?

[Sarcle]

No matter what way this goes down. People will not be happy and lawsuits will happen.