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.WALMART New gTLD Application

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New gTLD Application Submitted to ICANN by: Wal-Mart Stores, Inc.

String: WALMART

Originally Posted: 13 June 2012

Application ID: 1-1244-56727

 

Applicant Information

 

  1. Full legal name

Wal-Mart Stores, Inc.

 

  1. Address of the principal place of business

702 Southwest 8th Street

Bentonville  72716

US

 

  1. Phone number

+01 479 273 4505

 

  1. Fax number

+01 479 277 5991

 

  1. If applicable, website or URL

 

Primary Contact

 

6(a). Name

Joshua Bourne

 

6(b). Title

Managing Partner, FairWinds Partners, LLC

 

6(c). Address

 

6(d). Phone Number

+01 202 223 9252

 

6(e). Fax Number

 

6(f). Email Address

This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Secondary Contact

 

7(a). Name

Myron Eng

 

7(b). Title

Associate General Counsel, Wal-Mart Stores, Inc.

 

7(c). Address

 

7(d). Phone Number

+01 479 277 2368

 

7(e). Fax Number

 

7(f). Email Address

This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Proof of Legal Establishment

 

8(a). Legal form of the Applicant

Corporation

 

8(b). State the specific national or other jursidiction that defines the type of entity identified in 8(a).

Delaware

 

8(c). Attach evidence of the applicant's establishment.

Attachments are not displayed on this form.

 

9(a). If applying company is publicly traded, provide the exchange and symbol.

New_York_Stock_Exchange;WMT

 

9(b). If the applying entity is a subsidiary, provide the parent company.

 

9(c). If the applying entity is a joint venture, list all joint venture partners.

 

Applicant Background

 

11(a). Name(s) and position(s) of all directors

Aida M. Alvarez Director

Arne M. Sorenson Director

Christopher J. Williams Director

Douglas N. Daft Director

Gregory B. Penner Director

  1. Lee Scott, Jr. Director

James I. Cash, Jr. Director

James W. Breyer Director

Jim C. Walton Director

Linda S. Wolf Director

  1. Michele Burns Director

Roger C. Corbett Director

  1. Robson Walton Director, Chairman of the Board

Steven S. Reinemund Director

 

11(b). Name(s) and position(s) of all officers and partners

  1. Douglas McMillon Executive Vice President, President and Chief Executive Officer, Walmart International

Charles M. Holley, Jr. Executive Vice President, Chief Financial Officer

Jeffrey J. Gearhart Executive Vice President, General Counsel and Corporate Secretary

Leslie A. Dach Executive Vice President, Corporate Affairs

  1. Susan Chambers Executive Vice President, Global People

Michael T. Duke President and Chief Executive Officer

Neil M. Ashe Executive Vice President, President and Chief Executive Officer, Global eCommerce

Rollin L. Ford Executive Vice President, Chief Administrative Officer

Rosalind G. Brewer Executive Vice President, President and Chief Executive Officer, Sam’s Club

Steven P. Whaley Senior Vice President, Controller

William S. Simon Executive Vice President, President and Chief Executive Officer, Walmart U.S.

 

11(c). Name(s) and position(s) of all shareholders holding at least 15% of shares

Walton Enterprises, LLC Not Applicable

 

11(d). For an applying entity that does not have directors, officers, partners, or shareholders: Name(s) and position(s) of all individuals having legal or executive responsibility

 

Applied-for gTLD string

 

  1. Provide the applied-for gTLD string. If an IDN, provide the U-label.

WALMART

 

14(a). If an IDN, provide the A-label (beginning with "xn--").

 

14(b). If an IDN, provide the meaning or restatement of the string in English, that is, a description of the literal meaning of the string in the opinion of the applicant.

 

14(c). If an IDN, provide the language of the label (in English).

 

14(c). If an IDN, provide the language of the label (as referenced by ISO-639-1).

 

14(d). If an IDN, provide the script of the label (in English).

 

14(d). If an IDN, provide the script of the label (as referenced by ISO 15924).

 

14(e). If an IDN, list all code points contained in the U-label according to Unicode form.

 

15(a). If an IDN, Attach IDN Tables for the proposed registry.

Attachments are not displayed on this form.

 

15(b). Describe the process used for development of the IDN tables submitted, including consultations and sources used.

 

15(c). List any variant strings to the applied-for gTLD string according to the relevant IDN tables.

 

  1. Describe the applicant's efforts to ensure that there are no known operational or rendering problems concerning the applied-for gTLD string. If such issues are known, describe steps that will be taken to mitigate these issues in software and other applications.

Walmart foresees no known rendering issues in connection with the proposed .WALMART gTLD for which it is applying. This answer is based upon consultation with Walmart’s selected back-end provider, VeriSign, Inc., which has successfully launched a number of new gTLDs over the last decade. In reaching this determination, the following data points were analyzed:

 

-ICANN’s Security Stability Advisory Committee (SSAC) entitled Alternative TLD Name Systems and Roots: Conflict, Control and Consequences (SAC009);

-IAB - RFC3696 “Application Techniques for Checking and Transformation of Names”

-Known software issues which Verisign has encountered during the last decade launching new gTLDs;

-Character type and length;

-ICANN supplemental notes to Question 16; and

-ICANN’s presentation during its Costa Rica regional meeting on TLD Universal Acceptance.

 

  1. (OPTIONAL) Provide a representation of the label according to the International Phonetic Alphabet (http://www.langsci.ucl.ac.uk/ipa/).

 

Mission/Purpose

 

18(a). Describe the mission/purpose of your proposed gTLD.

18.1 Mission and Purpose of .WALMART

 

Wal-Mart Stores, Inc. (ʺWalmartʺ) serves customers and members more than 200 million times per week around the world. Walmartʹs mission and founding principle is ʺsaving people money to help them live better,ʺ and Walmart has been recognized as a leader in sustainability, philanthropy, and employment opportunity. In the U.S., Walmart operates more than 4,400 retail facilities, including Walmart Stores and Samʹs Club warehouses. Walmart International operates more than 5,200 retail units in 27 countries outside the U.S. Walmart.com has been known for bringing the convenience, quality merchandise, and low prices of Walmart to the Internet. Walmart content is accessible in multiple TLDs, including the .COM, .NET, and .ORG gTLDs, and the .CA, .CO.UK, and .US ccTLDs.

 

In recent years, Walmart has invested heavily in global eCommerce in order to reach more customers. In 2010, Walmart consolidated its eCommerce activities around the world in a Global eCommerce Division with three goals: 1) Develop and execute a global eCommerce strategy; 2) Accelerate global online channel growth; and 3) Create technology platforms and applications for every Walmart market. Walmart understands the impact that changing technology has had on retail and has dedicated eCommerce platforms around the world; the investments made in these platforms are helping to accelerate Walmartʹs growth in other markets.

 

The intended future mission and purpose of the .WALMART gTLD is to serve as a trusted, hierarchical, and intuitive namespace for the benefit of Walmart’s customers and Internet users in general. Walmart will be the entity to bring the .WALMART gTLD to market.

 

Although ICANN has not specifically recognized a .BRAND gTLD specification in the current version of the Applicant Guidebook, it is widely anticipated within the brand owner community that this will become a specialty subset of new gTLDs. The .WALMART gTLD was planned as a .BRAND gTLD, with the goal of protecting Walmartʹs online presence and identity, expanding its marketing and promotional efforts, providing a secure channel for products and information online, and offering a platform on which to consolidate many of the intellectual property activities of Walmart.

 

Walmart intends to initially limit registration and use of domain names within the .WALMART gTLD to Walmart and its qualified subsidiaries and affiliates. This initial use will allow Walmart to establish its operations and achieve full sustainability. This limited distribution, coupled with the other requirements set forth in Specification 9 of the template Registry Agreement, is intended to exempt Walmart from its annual Code of Conduct Compliance requirements.

 

Walmart has currently planned a four-stage rollout for the .WALMART gTLD:

 

1) Stage 1

 

The initial stage of implementation of the .WALMART gTLD will involve Walmart registering a limited number of second-level domain names.

 

This initial use will provide Walmartʹs IT and security personnel with the time to run a number of tests to ensure seamless and secure access using .WALMART domain names, interoperability with various software and Web-based applications, and unbroken and secure use of all domain names. This initial allocation will also allow the appropriate Walmart staff to coordinate with the internal and external staff responsible for the delegation and setup phases of the .WALMART gTLD to ensure proper transition from delegation to full operation.

 

2) Stage 2

 

Once all testing has been successfully completed, Walmart will begin allocating domain names in .WALMART for more widespread internal use. During this same period of time, Walmart will begin evaluating strategies to potentially migrate traffic away from its current network of second-level domain names, which are registered in a variety of TLDs, to the new Walmart family of gTLDs.

 

It is during Stage 2 that Walmart will evaluate expanding the operations of the gTLD to permit registration by other registrants, including licensees and strategic partners. Should an assessment of its expansion strategy lead to a decision to extend registration rights to other parties, the expansion would take place during Stage 3. However, any expansion would be conditional upon a review of Specification 9 (Registry Code of Conduct), as set forth in the template Registry Agreement, to ensure compliance with Walmartʹs business model.

 

3) Stage 3

 

Depending upon the analysis of the evaluations undertaken in Stage 2, Walmart may begin to implement the permanent migration of Internet traffic away from the TLDs in which Walmartʹs domain names are currently registered, toward the Walmart family of gTLDs. It is during this stage that Walmart may also implement its decision to extend registration rights to a wider class of registrants, including licensees and strategic partners, depending upon compliance with Specification 9, as noted above. The dates of such an expansion are subject to change depending upon business, strategic, and industry factors at the time.

 

After consideration of the following factors: analysis of Walmartʹs existing domain name portfolio; internal analysis of marketing initiatives; and the fact that Walmart will have full control over the number of registrations in the .WALMART gTLD namespace, Walmart is confident that the number of domain name registrations will be less than 10,000 in the first five years of operation.

 

4) Stage 4

 

Based on its experience with any expansions implemented in Stage 3, Walmart will assess whether its business plan and expansion strategy should be augmented by extending registration rights to a wider class of registrants, including, potentially, Walmart customers. Walmart anticipates that changes to the domain name industry, particularly the impact of .BRAND gTLDs, will take at least five years to be realized and assessed. Any decision to expand the .WALMART gTLD beyond use by Walmart and its qualified subsidiaries and affiliates will take into account this experience as well as the technical analysis of potential expansion.

 

The potential use of the .WALMART gTLD by Walmart will also be driven by Walmartʹs future business strategies as identified in its annual report and investor filings, see http:⁄⁄investors.walmartstores.com⁄phoenix.zhtml?c=112761&p=irol-irhome.

 

Utilizing current projections based upon Walmartʹs existing businesses, future business plans, current domain name portfolio, and other strategic factors, Walmart estimates that second-level domain name registrations will be in line with the projections set forth in the financial template provided in response to Question 46 of this application.

 

18(b). How do you expect that your proposed gTLD will benefit registrants, Internet users, and others?

18.2 How do you expect that your proposed gTLD will benefit registrants, Internet users, and others?

 

Walmart believes that the proposed .WALMART gTLD has the potential to offer the following benefits to Internet users:

 

1) Establish a trusted source of information about Walmart for the millions of consumers who purchase goods in its stores and online, for investors seeking information about Walmart, and for the general Internet user population as a whole;

 

2) Provide Walmart and its qualified subsidiaries and affiliates with short and memorable Internet addresses;

 

3) Improve navigation to Walmart products, services, advertising campaigns, public interest content, public awareness initiatives, etc.;

 

4) Through the adoption of new gTLDs by the wider Internet community, benefit users from a lower incidence of phishing and malware, which are often associated with typos of domain names in the .COM space and owned by cybersquatters, since they will be navigating to domain names in gTLDs like .WALMART instead;

 

5) Minimize the cost and need for defensive registrations because domain names within the .WALMART gTLD will be allocated by Walmart only; and

 

6) Develop a potential platform for the secure access to, and purchase of, Walmart products and information, in order to minimize the potential for counterfeit or infringing goods and services.

 

In addition, Walmart currently operates a number of websites using a combination of second-level and top-level domain names. A representative sampling of Walmart websites that incorporate geographical identifiers into the domain name include:

 

Wal-martchina.com

Walmartmexicoycam.com

Walmartmexico.com.mx

Walmart.com.cn

Walmart.ca

Walmart.com.ar

 

Given its broad consumer base and operations in the U.S. and abroad, Walmart believes that the .WALMART gTLD can provide an online, single-source identifying function for consumers. This could potentially replace the inefficient approach that Walmart is currently forced to resort to in the current domain name space.

 

18.2.1 What is the goal of your proposed gTLD in terms of areas of specialty, service levels, or reputation?

 

The primary mission and purpose of the .WALMART gTLD is to provide a trusted, hierarchical, and intuitive online vehicle to deliver Walmart content and products, as well as information about the companyʹs brands, business, and focus. As Walmart continues to expand, it is the companyʹs desire to continue to pursue and develop opportunities to market and distribute its products and brands, in the U.S. and internationally, through a variety of platforms, including the Internet. Given that consumers are increasingly demanding access to companies and brands via a number of online channels, including domain names, Walmart believes that the .WALMART gTLD has the potential to provide an innovative, virtual avenue to Walmart products and information that will deepen and broaden the companyʹs relationship with consumers.

 

Through use of the .WALMART gTLD, Walmart will also be able to provide access to its content, brands, and products in a namespace devoid of piracy, cybersquatting, and other malicious cybercriminal activities. Providing consumers with a safe experience is paramount to Walmart, and the .WALMART gTLD will be used to further that goal.

 

While Fortune 500 companies such as Walmart must fight a never-ending battle to protect their intellectual property from piracy on the Internet, the .WALMART gTLD has the potential to offer consumers a safe and intuitive means of accessing authorized Walmart content and products.

 

Walmart is supportive of existing anti-cybersquatting legislation and consumer protection measures, including the U.S. Anti-Cybersquatting Consumer Protection Act (ACPA) and others. As Walmart invests in the expansion of the domain name space through the establishment of .WALMART, it will also work to actively prevent cybersquatting, fraud, phishing, and other malicious activities within the .WALMART gTLD. Maintaining the highest standards within the .WALMART gTLD will give Walmart the opportunity to take a proactive approach to protecting intellectual property rights and fostering a safer online experience for all Internet users.

 

18.2.2 What do you anticipate your proposed gTLD will add to the current space, in terms of competition, differentiation, or innovation?

 

As a .BRAND gTLD, the primary driving factors behind .WALMART are differentiation and innovation. The success of the gTLD will not be measured by the number of domain names registered, but by the levels of consumer recognition and trust that are placed in .WALMART. Using this as a benchmark, Walmart will strive to build consumer recognition and trust, through the usage of .WALMART, that rise to the levels of those found in the .EDU and .GOV gTLDs.

 

18.2.3 What goals does your proposed gTLD have in terms of user experience?

 

Walmart believes that the .WALMART gTLD will provide a single, trusted, ecosystem experience for Internet users worldwide, particularly consumers seeking Walmart products or information online. In addition to providing Walmart with short, memorable, and intuitive domain names, the .WALMART gTLD will also indicate to users that they are navigating in a secure space where all domain names and content are owned and controlled by Walmart, thereby assuring them that they are protected from potential unauthorized, infringing, pirated, or malicious content.

 

The initial use of the .WALMART gTLD will involve the registration of only a limited number of second-level domain names. This initial use will provide Walmartʹs IT and security personnel with the ability to run a number of tests to ensure seamless and secure access to Walmart websites, and interoperability with various software and Web⁄mobile-based applications. Once the appropriate security and stability issues have been satisfactorily addressed, Walmart will likely begin allocating domain names for internal use and may redirect new .WALMART domain names to pre-existing content. This phased rollout will likely take place over a multi-year period, but is subject to change depending upon a range of external factors.

 

At the same time, Walmart will evaluate potential strategies to migrate traffic away from its current network of second-level domain names registered in various gTLDs, to the .WALMART gTLD, which offers the potential to provide customers with a single, trusted online source for Walmart’s products and services.

 

18.2.4 Provide a complete description of the applicant’s intended registration policies in support of the goals listed above.

 

Walmart currently intends for the .WALMART gTLD to be initially used exclusively by Walmart and its qualified subsidiaries and affiliates. Because of this condition, any registration and use requirements are more appropriately vested in these corporate⁄affiliate agreements and not in a domain name registration agreement.

 

Notwithstanding this, Walmart will incorporate all required ICANN consensus policies and other legal⁄policy requirements imposed on new gTLD applicants into the terms and conditions of the domain name registration agreement that each qualified subsidiary or affiliate would execute.

 

18.2.5 Will your proposed gTLD impose any measures for protecting the privacy or confidential information of registrants or users? If so, please describe any such measures.

 

As a global retail company, Walmart respects the privacy of its customers and other consumers. The company employs a variety of physical, electronic, contractual, and managerial safeguards to protect personal and confidential information in its stores and on its websites. Walmart will take similar precautions to protect registrant and user data associated with the .WALMART gTLD. Furthermore, given that every domain name will be registered to Walmart or a qualified Walmart subsidiary or affiliate, Walmart has a vested interest in ensuring that accurate and current registrant information is readily available in connection with each .WALMART domain name.

 

Walmart will ensure that the operation of the .WALMART gTLD will be consistent with its Privacy Policy, see http:⁄⁄walmartstores.com⁄PrivacySecurity⁄9243.aspx.

 

In addition, Walmart intends to incorporate contractual language in its Registry-Registrar Agreement (RRA) modeled after language that has been included in the template Registry Agreement that has been successfully utilized by existing ICANN gTLD Registry Operators. The template Registry Agreement states, “Registry Operator shall (i) notify each ICANN-accredited registrar that is a party to the registry-registrar agreement for the TLD of the purposes for which data about any identified or identifiable natural person (“Personal Data”) submitted to Registry Operator by such registrar is collected and used under this Agreement or otherwise and the intended recipients (or categories of recipients) of such Personal Data, and (ii) require such registrar to obtain the consent of each registrant in the TLD for such collection and use of Personal Data. Registry Operator shall take reasonable steps to protect Personal Data collected from such registrar from loss, misuse, unauthorized disclosure, alteration or destruction. Registry Operator shall not use or authorize the use of Personal Data in a way that is incompatible with the notice provided to registrars.ʺ

 

18.2.6 Describe whether and in what ways outreach and communications will help to achieve your projected benefits.

 

Although Walmart sees the potential for this gTLD to play a role in Walmartʹs future online strategic initiatives, the extent to which this gTLD will benefit Walmart’s digital strategy will likely depend upon consumer recognition and the rate of adoption of new gTLDs, as well as the response from search engines in the marketplace. These factors will also likely influence communication and use case strategies for the gTLD.

 

Notwithstanding this, Walmart anticipates a phased-in approach to using and promoting the gTLD, in which Walmart will initially redirect .WALMART domain names to existing Walmart .COM content. Walmart also plans to carefully review the release of new gTLDs by others, the response from search engines to brand gTLDs, and consumer perception. After this analysis, Walmart may act upon a broader initiative, should the results of this evaluation be satisfactory. As Walmart’s digital strategy and the gTLD marketplace evolve, Walmart will invest in the appropriate outreach and communication to ensure that consumers, as well as Internet users as a whole, continue to interact online with Walmart in a simplified and efficient manner.

 

18(c). What operating rules will you adopt to eliminate or minimize social costs?

18.3 What operating rules will you adopt to eliminate or minimize social costs (e.g., time or financial resource costs, as well as various types of consumer vulnerabilities)?

 

Walmartʹs proposed operating rules to initially limit registration to Walmart and its qualified subsidiaries and affiliates will provide a trusted online environment for consumers and will minimize social costs by default. This verified ecosystem will provide users with a single, trusted source for Walmart content, products, and information, with a substantially lower risk for the types of misdirection, infringement, and scams that consumers are typically plagued by in .COM and other open TLDs.

 

Walmart does not anticipate consumer vulnerabilities. In fact, social costs will actually be eliminated in that there will be no need for other trademark and brand owners to defensively register second-level domains in the .WALMART gTLD. Walmartʹs expectation is that use of the .WALMART gTLD will eliminate many of the vulnerabilities that consumers face in the wider Internet today.

 

18.3.1 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?

 

Walmart believes that the proposed operation of the .WALMART gTLD, as set forth in this application, will have no negative consequences or cost implications to consumers. On the contrary, the proposed operation of .WALMART will likely lead to direct benefits for consumers as outlined above.

 

18.3.2 How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?

 

Walmart does not envision multiple applicants for the same domain names given that domain names will only be allocated by Walmart initially for use by Walmart and its qualified subsidiaries and affiliates.

 

18.3.3 Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

 

Walmart will not offer any advantageous pricing, introductory discounts, or bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .WALMART gTLD as a trusted online source identifier. Moreover, it is Walmartʹs current intention to provide domain name registrations internally and to its qualified subsidiaries and affiliates at no cost, though the company reserves the right to reevaluate this decision and may choose to impose a nominal fee in the future.

 

18.3.4 Note that the Registry Agreement requires that registrars be offered the option to obtain initial domain name registrations for periods of one to ten years at the discretion of the registrar, but no greater than ten years. Additionally, the Registry Agreement requires advance written notice of price increases. Do you intend to make contractual commitments to registrants regarding the magnitude of price escalation? If so, please describe your plans.

 

Walmart is committed to providing the domain name registration periods set forth in the Registry Agreement. However, as noted above, as a brand gTLD, the registration and use of .WALMART domain names will be conditional upon a separate, qualified subsidiary or affiliate relationship with Walmart. Therefore, providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. Additionally, as noted above, the current business model involves Walmart providing domain name registrations to itself and its qualified subsidiaries and affiliates at no cost.

 

Walmart acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.” However, Walmart and its qualified subsidiaries and affiliates, as the sole registrants within the .WALMART gTLD, will only be registering domain names on an annual basis. This is done to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46, i.e., no multi-year registration or deferred revenue.