A significant change compared to 2012’s application round, is the introduction of the so-called “Replacement String”: every applicant could choose to submit a second extension – the replacement string. If the first extension (“primary string”) appears to be in competition with a third party, the applicant can switch to its replacement string. This way, ICANN aims to offer applicants an alternative to costly auctions.
Contention resolution
This all has to do with the fact that an extension can only be assigned to one managing entity. Each so-called registry holds a monopoly position. If the same extension is applied for more than once, a solution must be found. This process is known as “Contention Resolution.” Although it sounds impressive, it is actually just an auction that assigns the extension to the highest bidder.
Replacement period
If you are a small applicant and realise that you will have to compete with giants such as Google or Amazon, you might want to drop out immediately. That is the moment to change to your Replacement String. Speed is key, as you can only do this within the first 14 days after Reveal Day – after the 21st of October, 23:59, it is no longer allowed to change. This 14-day period is called the “Replacement Period.”
After those 14 days, ICANN will compile the final list of extensions and publish it on the 17th of November (String Confirmation Day). It is only at that date that will know for sure which extensions will progress to the next stage of the process.
It’s almost certain that applicants will change: among the 1.615 applications, we count almost 650 duplicates: 263 extensions have been applied for twice or more. The biggest competition is for .agent (13x) and .bit (11x).
Restrictions
A replacement is not always possible. One of the most important restrictions is that someone else should not have applied for the same string, being either their primary or replacement string. For this reason, ICANN has already marked 727 replacement strings as “Deactivated.” Applicants of these will have no choice but to continue with their primary string.
This can lead to interesting situations. For example, 58 extensions were applied for as replacement string by two or more applicants, but no-one put them as primary string. These extensions will not be issued in this round at all. Some examples of such extensions are very generic ones like .about and .library.
Be careful!
An applicant who wants to switch to its replacement string, should take care not to create a different contention set. It is not only identical strings that are put in contention, but also extensions that are too similar to each other or that are each other’s singular and plural forms.
An example of the first case is the pair of .ball and .bali: a capital “i” is too similar to a lowercase “L” and could be exploited for abuse. That’s why those two extensions will be placed in a contention set together.
Singular and plural only applies if the words have identical meanings. The extension .file has been applied for in the meaning of “the computer term “document”, which is also the meaning of .files. Only one of these will continue. However, if a Dutch applicant had applied for the extension .file in the meaning of the Dutch word for “traffic jam”, both applications would have continued.
Therefore our advice is to to check potential new contention sets carefully before switching to your replacement string.