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Domain Names: What They Are and How They Work
Domain names are one of the most basic components of the Internet and are an essential contemporary marketing tool. Domain names are the gateway to Web sites, which are an invaluable medium used by various parties to quickly and inexpensively disseminate information. As a result, they are critical assets for all companies, individuals, and associations that operate online.
Domain names are defined as alphanumeric strings separated by dots that translate IP numbers into easier-to-remember labels. Domain names feature a hierarchy of levels, separated by dots. The root of the domain name is the portion of the name that follows the “www.” and precedes the extension. For example, “google” is the root of the domain name, www.google.com. The extension is the final portion of a domain name beyond the “domain root” and sometimes following the right-most “.” (for instance, the “.com” extension or the “.fr” extension). At other times the extension follows the second to last “.” when the “domain root” is followed by a third level extension (for instance the “.co.uk” extension or the “.com.mx” extension).
The life cycle of domain names begins when a name is registered for a period of time usually ranging from one to ten years. Domain names are typically registered through registrars, which are the retail commercial interface that work directly with domain name consumers. Registries operate more like wholesalers of domain names, selling names to businesses rather than to individual consumers. As the expiration/renewal date for a domain name approaches, the domain name owner is sent one or more reminders from their registrar indicating that they must renew the name if they wish to maintain ownership. If the name is renewed, its status continues to be listed as “registered.” If the name is not renewed and the domain name owner allows the registration to lapse, the domain name may be put on a registrar hold, depending on the TLD or extension.
Using .com as an example, during a registrar hold, another party cannot register the name and the site remains live. At this point, a “grace period” takes effect during which the original owner of the domain name can pay to renew their name. The domain name owner may be subject to reinstatement fees imposed by the registrar during this period. If the domain name is renewed during the grace period, it returns to “registered” status.
Following the initial grace period, there is an ICANN imposed “Redemption Grace Period” or RGP. ICANN developed the RGP because of the high level of fraud that resulted in unauthorized deletions of domain registrations. This gives holders of deleted names a 30-day grace period to detect and correct any mistaken deletions. During this time, the deleted name will be placed on REGISTRY-HOLD and the name will not be functional meaning that the site will no longer resolve. This feature helps ensure notice to the most recent registrant that the name is subject to deletion at the end of the RGP, even if the contact data the registrar has for the registrant is no longer accurate.
If the name is not renewed during the RGP, the registrar will subsequently delete the name. At this point, the name is about to return to the domain market and will once again become available for registration. Depending upon the perceived value of a particular domain name, there may be multiple parties lined up to obtain it as it is deleted. The process by which interested parties obtain names that are dropped is often referred to as “drop- catching.”
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