SMEs warned time running out to prevent squatter grabbing XXX domain names

Small and medium businesses have been warned they are running out of time to register their businesses under the new XXX domain names reserved for members of the adult entertainment community.

The sunrise period for businesses has passed, during which SMEs outside of the adult entertainment industry could register a name, and now only members of that community are able to do so. But experts warn businesses have one last chance when applications open again on December 6.

Legal expert Luke Dale of Kelly & Co says businesses need to pencil that date in their calendars to ensure squatters don’t get the upper hand.

“Businesses really should have jumped on it before the end of last week, with the general availability opening up next month.”

“If something is available then, you can register then, but the big risk is that between now and then someone who wants to set up an adult-themed website will use your brand name.”

The issue is that anyone wanting to set up an adult themed website could use the brand name of an SME to register. Although some registrations using the same name may just be a coincidence, Dale warns that some may use the opportunity to slander a business and ruin its reputation.

For the cost of a few hundred dollars, he says, that situation can be avoided. Already in the United States, some universities have been registering their domain names in an attempt to stave off attacks on their reputation.

ICM Registry has been appointed by the Internet Corporation for Assigned Names and Numbers to distribute the domains, with the latter warning users on its website that businesses should think about registering early.

“Although there will be post launch rights protection mechanisms in place, we believe that many rights owners will take a prevention is better than cure approach,” it says.

Dale says when the general availability opens next month, businesses should rush to ensure their names are registered for only a few hundred dollars.

“Put that date in your calendar – December 6. It’s a minimal cost, and it goes a long way to ensuring protection,” he says.

“Of course, no one can guarantee how prevalent this new section of the internet is going to be, but given there is so much money here, you can expect that it will be adopted.”

“If you look at technology like Blu-Ray, it was adopted because of the pornography industry. It can be a force that dictates certain trends.”