Domain name bubble about to explode
warns President of ABC Namebank

Choosing a domain name should be executed with the same care and commitment as registering a trademark if companies are to profit and survive in the world of e-commerce, according to ABC Namebank President Naseem Javed.

Speaking at the Chamber's Jan. 25 roundtable luncheon, Mr Javed said, "In the United States these days, if you do not have an e-commerce strategy you cannot attract shareholders' attention or capital. And without a domain name you do not have an e-commerce strategy."

But with about 11,000 domain names being registered on the Web daily -- a figure which is expected to reach 50,000 by the end of this year -- chances are high that the domain name you wish to use for your company has already been taken.

In addition to the present six suffixes on the Web -- .com, .org, .net, .mil, .edu, .gov -- a global top level name memorandum of understanding is proposing introducing six new suffixes -- .shop, .firm, .web, .arts, .rec, .nom -- so that just about everyone will be able to get the name they want.

So we will have cnn.com, which is the CNN owned by Ted Turner, but we can also have cnn.firm downstairs for someone who wants to sell cookies.

"This will cause chaos. It is the most frightening thing that is going to hit us," he said.

"How many people can get a telephone registered in the name of a bank? [No one] Because you cannot do that. There are rules and regulations that govern this. How can we go out and say the Internet is going to do US$2 trillion worth of e-commerce if we do not have this system properly secure?"

The first-come, first-served principle is the cause of the chaos, he said. As long as you register your domain name first, you can call it whatever you wish. Case in point, whitehouse.com is not the home of the Clintons, he said, it is a site peddling porn.

This method of registering companies on the Internet is a serious problem which Mr Javed believes must be looked into quickly if e-commerce is to reach its full potential, because the purpose of a domain name is to take you to the right place.

"So far we have failed policies and all we have is a cyber bubble. And this bubble is really about to explode on an international scene," he said. "Unless there is a professional handle on creating and developing proper names, all these millions of domain names around the globe could run into serious jeopardy."

Mr Javed believes that the solution to the problem is in trademark laws, which should also be extended to domain names.

"A trademark and a domain name are really two sides of a coin. Without a good trademark you cannot have a good domain name, and if you have a domain name without a trademark it will change, you will lose it," he said.

The world-renowned nomenclator also shared with those attending the luncheon a few rules of thumb to remember when trying to find a name for a company or product.

Contrary to belief, choosing a name is not an exercise of colours, designs, logos and packaging. It is a painstaking intellectual exercise which incorporates language laws, nomenclature laws, domain e-commerce laws, marketing rules, and global translation, he said.

"A name must sell the concept," Mr Javed explained. "If you are a petroleum company but sound like dental supplies, you are doing a great disservice to the entire operation."

Ensuring your name sounds better than your competitors' and having a global protection plan in case someone encroaches upon your name are all part of the intricate naming process for success.

Names that are failures lookalike, sound-alike, are obscure, accidental and are short lived. If you have to continuously explain the meaning or how to spell your name, then sooner or later, your name will die, he said.

Names with dashes, slashes, numerals and alternative spelling of words such as E-SQUARED, i2-TECH, T2 Medical Inc., UC-ME ... are all recipes for confusion.

Likewise, copycat type names are difficult for people to remember. Two of the most popular words people like to include in their names are first and link. Mr Javed said there are currently 538,400 registered names using first -- Firstact, Firstbiz, Firstdata, Firstserve ...-- and a whopping 790,100 names trying to sound techie by using link -- Linknet, Linkmag, Linkpad, Linktech ... .