Top Level Country Code Domain Names : Is it Time to Revisit the Open Governance Model?

Governance of top level country code domain names (ccTLDs) varies from country to country – however, there are two broad models. The open governance model allows the ccTLD to be purchased and used by any individual or organisation. The second model is protective, imposing rules regarding physical presence in the relevant country to which the ccTLD pertains. The open governance model is more popular internationally; an advantage being that it encourages more purchases of the ccTLD and thereby contributes to the economy of the country. However, there are disadvantages linked to open governance. In particular, unscrupulous offshore businesses are able to take advantage of their seemingly physical “presence” in a country, implied by their use of that country's ccTLD, to deceive unwary consumers and to benefit economically from that country while avoiding compliance with its domestic laws.A rationale for stricter regulation of a ccTLD is that, similar to a flag or a passport which represents the “brand” of a country and reassures us regarding the source of a product or person, so too a ccTLD bears a more profound meaning than other domain names. A ccTLD should therefore be available only to individuals and organisations with a physical presence in the particular country. This article describes the advantages and disadvantages of the two domain name governance policies and concludes that open governance of a ccTLD must be balanced with safeguards for consumers and domestic laws. As an exemplar, recommendations are provided for the ongoing governance of .nz. Such regulation will protect not only the domestic consumer but also the wider public interest in the New Zealand “brand”