Dropping C’s to Get .XXX

Readers of FairWinds’ Weekly News Brief will have already learned about Go Daddy’s announcement about its pricing structure for domain name registrations in the .XXX TLD. In the Sunrise A period, each domain will cost $209.99 the first year, which includes the application fee and the first year registration, and renewals will cost $99.99 per year. For Sunrise B, trademark owners will pay a one-time fee of $199.99 to block their trademarks for ten years. Those who participate in the .XXX landrush will be charged $199.99 the first year, which includes the application fee and the first year registration, and $99.99 per year for renewals. After that, General Availability domains will cost $99.99 for both the first year registration, and for yearly renewals.

We’ve already discussed on this blog the great lengths ICM Registry, which operates .XXX, is going to in order to provide resources for trademark owners to protect their marks. The fact that Go Daddy, one of the most widely recognized domain name registrars, is pricing .XXX domain names at $100 a pop is also likely to further deter cybersquatting in the TLD. Normally, cybersquatters squat on domain names because it is a quick, easy and, most importantly, cheap way to earn money. Setting the price to register .XXX domain names so high is likely going to discourage many cybersquatters who do not want to pay the registration fee.

While new schemes could evolve that make cybersquatting in .XXX profitable, many small-time cybersquatters are unlikely to have the stomach to pay to play this game.