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The GNSO Council is considering the issue of "domain tasting", a term used to describe the case when someone registers a domain name and then tests to see if the name has sufficient traffic to provide more income than the annual registration fee (usually through pay-per-click advertising). If the name is deemed sufficiently profitable, it is kept.
If not, the current "add grace period" (AGP) - where domains can be
returned within five days without cost - is used to return the domain
at no net cost to the registrant. Recently there has been a significant
increase in the number of domains registered and returned within the
AGP. ICANN staff prepared an Issues Report in June 2007 and subsequently a GNSO working group published an Outcomes Report in October 2007. The GNSO Council decided on 31 October 2007 to launch a policy development process (PDP) on domain tasting. An Initial Report
was produced for public comment, outlining the policy development
process, possible actions that might be taken, and the arguments put
forward for and against such actions. Public comments were incorporated
into a draft Final Report (posted 8 February) for GNSO Council review and action.
Members of the Council subsequently drafted this motion
to curb domain tasting. It would prohibit any gTLD operator that has
implemented an add grace period from offering a refund for any domain
name deleted during the AGP that exceeds 10% of its net new
registrations in that month, or fifty domain names, whichever is
greater. An exemption may be sought for a particular month, upon the
documented showing of extraordinary circumstances, as detailed in the
motion.
The GNSO Council will consider public comments and constituency impact
statements regarding the draft motion and incorporate them into a
further draft for Council consideration at its scheduled 17 April
meeting.
Source: ICANN Announcement - May 1st, 2008



