auDA board backs plan to drop 'close and substantial connection' rule for .com.au
in plain words
Australia's .com.au domain name A readable internet name made of labels separated by dots. Full definition of domain name currently can be registered if they closely relate to a business, even without an exact trademark match. The country's registry The central database and system of a top-level domain, or loosely the organization that runs it. Full definition of registry, auDA .au Domain Administration The not-for-profit body that manages Australia's .au domain and sets its rules. Full definition of auDA, now wants to scrap that loose rule because it says speculators abuse it. One domain investor thinks over a million existing domain names could be put at risk if the change goes ahead.
auDA, the registry overseeing Australia's .au domain space, has approved in principle a recommendation to remove the 'close and substantial connection' eligibility criterion used for registering .com.au domain names. Under current rules, a .com.au name can be registered if it matches the registrant The person or organization that holds a domain name registration. Full definition of registrant's name, an Australian trademark, or the name of a related product, service, event or premises under this broader connection test. auDA's board believes the criterion has been too loosely applied, enabling speculative domain registration Obtaining the right to use a domain name for a set period. Full definition of registration.
The board has not yet decided how the change would apply to existing registrations. auDA says its implementation plan will take into account the volume and categories of affected registrations and will include appropriate transitional measures. One domain investment and monetisation company executive estimates that more than a million domain names could be threatened by the reform.
Australian domain investors, who often hold large portfolio A collection of domains held by one owner. Full definition of portfolio, are expected to be hit hardest and have been vocal in opposing the proposal. Corporate domain portfolios could also be affected. A typical risk scenario involves a company whose Australian entity holds .com.au names for group brands that are not all trademarked in Australia; some of these names may have relied on the 'close and substantial connection' test rather than an exact trademark match, potentially forcing the company to register the trademark, adopt a matching business name, or give up the domain.
Another scenario involves older registrations made ahead of a trademark filing for strategic reasons, where eligibility records were never updated once the trademark was secured. These domains could become ineligible under the new rules, though existing eligibility details can be updated if another valid basis exists.
So far, auDA's board has only approved the recommendation in principle and plans to develop an implementation plan along with draft new Licensing Rules, which will go to public consultation. No timeline has been set, and debate over the reform is expected. In the meantime, businesses holding .com.au domains are being advised to audit their portfolios now to identify names that rely on the connection test and may need remedial action before any new rules take effect.