Open top-level national domain names to free-trade or risk backlash, says Tucows

A prominent communications lawyer is calling for free-trade in top-level Internet domain names, warning that restrictive Canadian policies will trigger trade retaliation for domestic companies working abroad. Tim Denton, working on behalf of Tucows Interactive Ltd, told delegates at a recent conference in Ottawa that his client’s goal of becoming a global wholesale registrar of domain names could be thwarted if authorities limit .ca access to companies with a physical presence in Canada. Denton predicts that other countries may retaliate by disallowing a Canadian registrar from registering other countries’ top-level domains. Glen Bloom, vice-chair of the Canadian Internet Registration Authority (CIRA), disagrees with Denton’s assessment. He told Canadian NEW MEDIA the policies implemented in other countries to govern the use of their top-level domains are unlikely to be affected by any Canadian action. In September 1998, the Canadian Domain Name Consultative Committee – CIRA’s predecessor – issued a final report which was opened to public comment in April this year. The organization’s final recommendation was to restrict access to the .ca name: "Registrants must be Canadian citizens, residents, companies or other legal entities as defined by Canadian law and must be operating in Canada and have a physical presence in Canada (in the case of companies or legal entities) or be resident in Canada in the case of citizens." CIRA is in the midst of compiling public comment on that and other recommendations. While nothing is yet set in stone, Bloom says protection of the .ca domain name has important consumer protection implications for cyber-shopping and other online transactions. He says online shoppers prefer doing business with Canadian companies, and also want a clear indication of whether a company is Canadian or not when it comes time to consider taxation and delivery issues. He says the .ca name can be used to "brand" sites and instil consumer trust. Under the proposed rules, nothing would stop CIRA from acting as registrar for the domain name, so long as registrants were Canadian individuals and companies. Bloom says protecting the .ca name is the same as protecting a public asset. Still, late last month at a CIRA update session in Ottawa at the CANARIE-sponsored Net 2000 show, Denton didn’t hide his displeasure at the potential regulations. "Yes, this is a Canadian resource, but I don’t think we should worry that every aspect needs to be rooted in Canadian geography. There shouldn’t need to be a Canadian presence," he argued. "Every restriction you put on us will apply around the world. This is inherently a global business and you should be aware of that," he told CIRA board members Bloom and Bernard Turcotte. At stake, says Denton, is a wholesale domain name registration business that Tucows has already built to the point of registering 10,000 names per day. "We don’t want to be locked out (because of Canadian regulations)," he told Canadian NEW MEDIA. Without disclosing figures, he says the business of acting as a clearing house for domain names is "making money." Besides being a popular site for freeware and shareware, the company works with over 3,700 ISPs, hosting companies, and domain name resellers in more than 90 countries around the world. It is an ICANN accredited registrar and is one of the largest providers of wholesale domain name registrations. Denton says he’s worried that if Canada restricts access to the .ca name based on geography, that other countries will insist that their names be similarly locked.

Open top-level national domain names to free-trade or risk backlash, says Tucows

Broadcast | July 26, 2000

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