.MSD New gTLD Application
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New gTLD Application Submitted to ICANN by: MSD Registry Holdings, Inc.
Application Downloaded On: 08 Mar 2014
String: MSD
Application ID: 1-1704-5879
Applicant Information
- Full legal name
MSD Registry Holdings, Inc.
- Address of the principal place of business
One Merck Drive Whitehouse Station, New Jersey - 08889 US
- Phone number
+1 908 423 1000
- Fax number
+1 908 423 1487
- If applicable, website or URL
Primary Contact
6(a). Name
Rashi Rai
6(b). Title
Associate Director- Merck & Co., Inc.
6(c). Address
6(d). Phone Number
+1 908 423 2831
6(e). Fax Number
6(f). Email Address
Secondary Contact
7(a). Name
David Taylor
7(b). Title
Partner, Hogan Lovells
7(c). Address
7(d). Phone Number
+33 1 53 67 47 35
7(e). Fax Number
+33 1 53 67 47 48
7(f). Email Address
Proof of Legal Establishment
8(a). Legal form of the Applicant
Corporation
8(b). State the specific national or other jurisdiction that defines the type of entity identified in 8(a).
New Jersey
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.
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
Name
Position
John C. Filderman Director
Joseph Brian Promo Director
Stephen C. Propper Director
11(b). Name(s) and position(s) of all officers and partners
Name
Position
James N. Ciriello President
11(c). Name(s) and position(s) of all shareholders holding at least 15% of shares
Name
Position
Merck Sharp & Dohme Corp. 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
- Provide the applied-for gTLD string. If an IDN, provide the U-label.
MSD
14A. If applying for an IDN, provide the A-label (beginning with "xn--").
14B. 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.
14C1. If an IDN, provide the language of the label (in English).
14C2. If an IDN, provide the language of the label (as referenced by ISO-639-1).
14D1. If an IDN, provide the script of the label (in English).
14D2. If an IDN, provide the script of the label (as referenced by ISO 15924).
14E. If an IDN, list all code points contained in the U-label according to Unicode form.
15A. If an IDN, upload IDN tables for the proposed registry. An IDN table must include:
the applied-for gTLD string relevant to the tables,
the script or language designator (as defined in BCP 47),
table version number,
effective date (DD Month YYYY), and
contact name, email address, and phone number.
Submission of IDN tables in a standards-based format is encouraged.
15B. Describe the process used for development of the IDN tables submitted, including consultations and sources used.
15C. List any variants to the applied-for gTLD string according to the relevant IDN tables.
- 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.
MSD Registry Holdings, Inc. (“MSDRH”) foresees no known rendering issues in connection with the proposed .MSD gTLD for which it is applying. This answer is based upon consultation with MSDRH’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.
- OPTIONAL.
Provide a representation of the label according to the International Phonetic Alphabet (http://www.langsci.ucl.ac.uk/ipa/).
18A. Describe the mission/purpose of your proposed gTLD.
18.1 Mission and Purpose of .MSD
MSD Registry Holdings, Incorporatedʹs (“MSDRH”) parent company, Merck Sharp & Dohme, Corp. (“MSD”), is a leading healthcare company serving the wide-ranging needs of end-users and providers around the world, with approximately 86,000 employees in more than 140 countries. MSD serves a variety of retailers, physicians, veterinarians, managed health care providers, food chain and mass merchandiser outlets, hospitals, and government agencies. MSD’s stated mission is to discover, develop, and provide innovative products and services that save and improve lives.
MSD has operations in several main business segments:
-PHARMACEUTICAL: MSD’s Pharmaceutical segment offers therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, oncology, infectious diseases, etc. The unit also offers preventive vaccines for children, adolescents, and adults.
-ANIMAL HEALTH: MSD’s Animal Health segment provides antibiotics, anti-inflammatory products, vaccines, and parasiticides for a variety of animals including cats, dogs, cattle, horses, and fish.
-CONSUMER CARE: In addition, MSD offers a wide range of over-the-counter products such as antihistamines, foot and skin care lotions, heartburn medication, and constipation relief treatments.
-ALLIANCES: MSD partners with a variety of corporations, organizations and educational institutions in product development and research efforts across the world.
The potential use of the .MSD gTLD by these or other business segments will primarily be driven by MSD’s future business strategies as identified in its annual report and investor filings, see http:⁄⁄www.merck.com⁄investors⁄home.html.
The intended future mission and purpose of the .MSD gTLD is to serve as a trusted, hierarchical, and intuitive namespace for MSD and end-users, and potentially MSD’s qualified subsidiaries and affiliates and potentially its licensees and other strategic parties.
Recognizing the potential dynamic evolution of the .MSD gTLD as a trusted brand namespace, MSD has decided to utilize a wholly owned subsidiary, MSDRH, as the entity to file this application and bring the .MSD gTLD to market. Although MSDRH is committed to moving forward with the .MSD gTLD application, it has not at the time of filing this application been able to fully vet and analyze all potential use case options.
Although ICANN has not specifically recognized a .BRAND gTLD specification in the current gTLD application round, it is widely anticipated in the brand owner community that this will become a specialty subset of gTLDs.
.MSD is intended to be one of those .BRAND gTLDs, with the goal of protecting MSD’s online presence and identity, expanding its marketing and promotion efforts, providing a secure channel for online products and services, and offering a platform through which to consolidate many of the intellectual property activities of MSD.
MSDRH intends to initially limit registration and use of domain names within the .MSD gTLD to MSD and potentially its qualified subsidiaries and affiliates. This initial limited use will allow MSD 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 MSD from its annual Code of Conduct Compliance requirements.
After Stage 3 (see below), MSD and MSDRH will evaluate whether opportunities exist to carry out the business strategy for the .MSD gTLD through expansion that continues the sustainable operations of the registry through registrations that may or may not be fee-based to parties other than MSD and its qualified subsidiaries and affiliates.
MSDRH currently plans a four-stage rollout for the .MSD gTLD:
- Stage One
The initial stage of implementation of the gTLD will involve MSDRH registering a limited number of .MSD second-level domain names.
This initial use will provide MSDʹs IT and security personnel the time to run a number of tests to ensure seamless and secure access using the .MSD gTLD domain names, interoperability with various software and Web-based applications, and unbroken and secure use of all names. This initial allocation will also allow the appropriate MSDRH staff to coordinate with the internal and external staff responsible for the delegation and setup phases of the .MSD gTLD to ensure a proper transition from delegation to full operation.
- Stage Two
Once all testing has been successfully completed, MSDRH will begin allocating domain names in .MSD for more widespread internal corporate use.
It is in Stage Two that MSDRH will evaluate expanding the operations of the .MSD gTLD to permit registration by other registrants, such as licensees of MSD or other strategic parties. Should an assessment of its expansion strategy lead to a decision to extend registration rights to other parties, this expansion is currently planned to take place during Stage Three.
However, any expansion would be conditioned upon a review of Specification 9 (Registry Code of Conduct) set forth in the template Registry Agreement to ensure compliance with MSDRH’s business model.
- Stage Three
It is in this stage that MSDRH may implement its decision to extend registration rights to MSD licensees or strategic parties, depending upon compliance with Specification 9 as noted above. The dates of such expansion are subject to change depending upon business, strategic, and industry factors at the time.
After consideration of the following factors: analysis of MSDʹs existing domain name portfolio; internal analysis of marketing initiatives; and the fact that MSDRH will have full control over the number of registrations in the .MSD gTLD namespace, MSDRH is confident that the number of domain name registrations will be less than 10,000 in the first five years of operation.
- Stage Four
Based on its experience to the end of Year 5, and based on its experience with any expansion implemented in Stage Three, MSDRH will assess whether its business plan and expansion strategy should be augmented by extending registration rights to a broader class of licensees and strategic parties. It is anticipated by MSD that changes to the domain name industry, and particularly the impact of .BRAND gTLDs, will take a number of years to be realized and assessed. Any decision to expand the gTLDs beyond corporate use, and potentially use by qualified subsidiaries, affiliates, licensees, and strategic parties, will take into account this experience as well as the technical analysis of potential expansion.
Utilizing current projections based upon MSDʹs existing businesses, future business plans, current domain name portfolio, and other strategic factors, MSDRH estimates second-level domain name registrations to be in line with the projections set forth in the financial template provided in the response to Question 46 of this application.
18B. 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?
MSDRH believes that the proposed .MSD gTLD has the potential to offer a variety of benefits to Internet end users, such as establishing a trusted source of information and online marketplace for the millions of end-users searching for related information through MSD’s online resources.
In addition, MSDRH anticipates that .MSD can provide MSD and potentially its qualified subsidiaries and affiliates with short and memorable Internet addresses, as well as provide increased navigation to products, services, advertising campaigns, public interest content, and public awareness initiatives.
A .MSD gTLD can also minimize the cost and need for defensive registrations because domain names within the .MSD gTLD will initially only be allocated by MSDRH to MSDʹs internal departments and potentially to qualified subsidiaries and affiliates of MSD.
Also, end users may benefit from lower incidents of phishing and malware often associated with mistypes of domain names in the .COM space that are owned by cybersquatters since they will be navigating to domain names in the .MSD gTLD.
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 .MSD gTLD is to provide a trusted, hierarchical, and intuitive online marketplace for MSD content and other products and services. Given that end-users are increasingly demanding access to MSD information through a variety of channels, which include domain names, MSDRH believes that the .MSD gTLD has the potential to provide an innovative, virtual avenue to content from MSD that will deepen and broaden its relationship with these end-users.
As MSDRH’s parent company, MSD, continues to expand its product offerings and research areas, the company has considered using .MSD to pursue and develop opportunities to market and distribute its online content and products to end users on various platforms, including the Internet and mobile devices, among others. Providing end-users with a trusted experience is paramount to MSDRH and its parent company, MSD, and the .MSD gTLD will be used to further that goal.
While healthcare companies, such as MSD, fight never-ending battles to protect their valuable intellectual property from fraud and piracy on the Internet, the .MSD gTLD would offer end-users a safe and intuitive means of accessing authorized content from MSD and potentially MSD’s qualified subsidiaries and affiliates and potential licensees and strategic parties.
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 of the .MSD gTLD are differentiation and innovation. The success of the gTLD will not be measured by the number of domain names registered.
Instead, it will be measured by the levels of consumer recognition and trust that are placed in the .MSD gTLD. Using this benchmark, MSDRH will strive to build consumer recognition and trust that rise to the levels of those found in the .EDU and .GOV gTLDs.
As noted above. MSDRH’s parent, MSD, is a leading healthcare company that leverages emerging technologies to deliver healthcare information, products, and services internationally.
The .MSD gTLD has the potential to aid this online strategy, if potential consumer benefits that ICANN experts have anticipated become a reality.
18.2.3 What goals does your proposed gTLD have in terms of user experience?
MSDRH believes that the .MSD gTLD will provide a single, trusted ecosystem experience for the millions of end-users seeking information about MSD and its products and services. In addition to providing end-users with short, memorable, and intuitive domain names, MSDRH will have best-in-class safeguards to minimize any potential infringing or pirated content within the .MSD gTLD.
MSD will continue to stay abreast of changes in the new gTLD space following commencement of operations and will adjust its strategy as needed to ensure it is providing the most valuable and relevant experience for end users.
18.2.4 Provide a complete description of the applicant’s intended registration policies in support of the goals listed above.
The .MSD gTLD is currently intended to be exclusively used by MSD and potentially MSD’s qualified subsidiaries and affiliates.
Because of this condition precedent, any registration and use requirements are more appropriately vested in corporate⁄affiliate agreements and not in a domain name registration agreement. MSDRH reserves the right to consider allowing third party registrants outside of current affiliate or subsidiary relationships to own .MSD domains for a fee at a future date. This would only be determined following an extensive, internal evaluation of MSD’s on-going branding and online goals, and discussions with MSD’s registry services provider.
MSDRH will incorporate all required ICANN consensus policies and other legal⁄policy requirements imposed on new gTLD applicants into the appropriate agreements.
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.
MSD recognizes first hand that this is an evolving area of law in which there is no uniform international standard. As a global healthcare company, MSD respects the privacy of its end-users. The company employs a variety of physical, electronic, contractual, and managerial safeguards to protect personal and confidential information on its websites. MSDRH will take similar precautions to protect registrant and user data associated with the .MSD gTLD.
Furthermore, given that every domain name will be registered to MSD or potentially a qualified subsidiary or affiliate and potentially licensees or strategic parties, MSDRH has a vested interest in ensuring that accurate and current registrant information is readily available in connection with each .MSD domain name.
MSD will ensure that the operation of the .MSD gTLD will be consistent with MSD’s Statement of Privacy Principles, available on its website at http:⁄⁄www.merck.com⁄privacy⁄.
In addition, MSDRH intends to incorporate contractual language in its Registry-Registrar Agreement (RRA) modeled after language that has been included in the template Registry Agreement and that has been successful 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.
MSDRH plans to start using .MSD domain names primarily as redirects to existing .COM and other domains that MSD and potentially, MSD’s qualified subsidiaries and affiliates, currently operate. MSDRH also plans to carefully review the response from search engines to .BRAND gTLDs, and the perception of end users. As the marketplace evolves, MSDRH will invest in outreach and communication as needed to ensure that its end-users continue to interact with MSDRH content, services, and products in a simplified, efficient, and productive manner.
18C. 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)? What other steps will you take to minimize negative consequences/costs imposed upon consumers?
18.3.1 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)?
MSDRH has proposed operating rules to limit registration to MSDRH and potentially qualified subsidiaries and affiliates and will provide a trusted online environment for end-users.
Therefore, one way in which social costs will be eliminated is that there will be no defensive need for other trademark and brand owners to register second-level domains in the .MSD gTLD. In addition, the .MSD gTLD will provide end-users with a trusted source for MSDRH information, goods, and services.
18.3.2 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?
MSDRH believes that the proposed operation of the .MSD gTLD as set forth in this application has no known negative consequences or cost implications to end users. On the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to end users.
18.3.3 How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?
MSDRH does not envision multiple applicants for the same domain name, as domain names will only be allocated to its parent company, MSD, and potentially MSD’s qualified subsidiaries and affiliates.
18.3.4 Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).
MSDRH does not envision any pricing, introductory discounts, or bulk registration discounts at this time because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .MSD gTLD as a trusted online source identifier for MSD, and potentially its qualified subsidiaries and affiliates.
Moreover, it is the current intention of MSD to have MSDRH provide domain name registrations initially at no cost, at least for the first five years of operation.
However, the company reserves the right to reevaluate this decision and may choose to impose a fee in the future. Any potential registrant fees imposed upon licensees or strategic parties will be commensurate with commercial agreements and made if this class of registrants is permitted to register domain names in the .MSD gTLD.
18.3.5 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.
MSDRH is committed to providing the domain name registration periods set forth in the Registry Agreement. Moreover, it is the current intention of MSD to have MSDRH provide domain name registrations initially at no cost, at least for the first five years of operation. Therefore, providing contractual commitments in a domain name Registrant Agreement regarding the magnitude of price escalations does not seem relevant or appropriate.
MSDRH 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, MSD, as the sole registrant within the .MSD gTLD, intends to only register domain names on an annual basis through a single registrar.
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, (e.g., no multi-year registration or deferred revenue).