Sunrise Recommendation #3 

In the absence of wide support for a change to the status quo, the Working Group does not recommend the creation of a challenge mechanism.


Context: 

The Working Group had diverging opinions on whether Registry Operators should be required to create a mechanism that allows trademark owners to challenge the determination that a second level name is a Premium Name or Reserved Name. The Working Group noted that Premium Names and Reserved Names are very different, and Premium Names are not clearly defined due to the multiple pricing tiers set by Registry Operators. 


Some Working Group members supported the idea that ICANN org establish a uniform challenge mechanism and proposed a list of implementation guidance. Additionally, some Working Group members believed that the ICANN org should require Registry Operators to create a release mechanism in the event that a Premium Name or Reserved Name is challenged successfully.  


Some Working Group members opposed establishing such a challenge mechanism and listed some possible concerns, including but not limited to: 1) restricting Registry/Registrar’s name lists and pricing; 2) impact on Registry Operators’ ability to operate their platforms; 3) increase workload for Registry Operators and Registrars to handle challenges; 4) unpredictable consequences such as the violation of applicable law/ICANN policies and security/stability concerns; and 5) gaming by trademark owners. 


To address those concerns, some Working Group members attempted to modify some elements of the proposed challenge mechanism, introduce a less formal challenge mechanism, or leverage existing mechanisms. However, there was no wide support for a challenge mechanism in any shape or form.