18.1 MISSION AND PURPOSE OF .FUJIXEROX Xerox DNHC LLC (Xerox DNHC), a wholly owned subsidiary of Xerox Corporation (Xerox), has filed this application for a .FUJIXEROX gTLD to serve as a trusted, hierarchical, and intuitive namespace for the goods and services that Fuji Xerox provides to its... Read more
18.1 MISSION AND PURPOSE OF .FUJIXEROX
Xerox DNHC LLC (Xerox DNHC), a wholly owned subsidiary of Xerox Corporation (Xerox), has filed this application for a .FUJIXEROX gTLD to serve as a trusted, hierarchical, and intuitive namespace for the goods and services that Fuji Xerox provides to its customers in Asia. As a registry operator, Xerox DNHC will be entrusted to provide domain name registration services to Fuji Xerox, its subsidiaries, affiliates, licensees, strategic partners, and/or any other designated third party. Through a unified corporate approach, Xerox DNHC also intends to submit an application for a .XEROX gTLD.
Xerox is primarily pursuing this application in ICANN's first round for defensive reasons given the uncertainty regarding when ICANN will be opening a second round. Therefore, although Xerox DNHC is committed to moving forward with a .FUJIXEROX gTLD application, at the time of filing this application there has not been enough time or market information available to fully analyze and evaluate all potential use case options.
18.1.1 FUJI XEROX PARTNERSHIP
Fuji Xerox is an unconsolidated entity in which Xerox currently owns a 25% interest, and FUJIFILM Holding Corporation (FujiFilm) owns 75%. Fuji Xerox develops, manufactures and distributes processing products and provides document management services in Japan, China, Hong Kong, as well as other areas of the Pacific Rim, including Australia and New Zealand. Xerox retains significant rights as a minority shareholder, and Xerox's technology licensing agreements with Fuji Xerox ensure that the two companies retain uninterrupted access to each other's portfolio of patents, technology and products. See http://www.xerox.com/about-xerox/annual-report-2011/xerox-business/fuji-xerox/enus.html.
Xerox DNHC is filing this application for the .FUJIXEROX gTLD on behalf of this unconsolidated entity. In addition, Xerox DNHC will also be filing an application for a .XEROX gTLD on behalf of Xerox, the world's leading enterprise for business process and document management with over $22 billion in annual sales. With 140,000 employees worldwide and operations in 160 countries, Xerox's client base includes schools, small businesses, government agencies, healthcare providers, commercial printers, and Fortune 1000 companies. In addition to its own global sales force, Xerox relies upon an extended global network of 6,500 authorized sales agents and concessionaires, and approximately 10,000 technology resellers.
18.1.2 POTENTIAL BUSINESS PLAN
The potential use of the .FUJIXEROX gTLD will primarily be driven by Xerox's future business strategies for the Fuji Xerox partnership as identified in its annual report and investor filings; see http://news.xerox.com/pr/xerox/annual-reports.aspx. In addition, Xerox will be relying upon the valuable experience it has gained through the operation of the Xerox.com domain name since as early as 1986, predating the advent of HTML and the World Wide Web.
Xerox DNHC currently plans a four-stage rollout for Xerox DNHC's gTLDs:
1. Stage One
The initial stage of implementation of the gTLD will involve Xerox Corporation registering a limited number of .FUJIXEROX second-level domain names.
This initial use will provide Xerox Corporation's IT and security personnel the time to run a number of tests to ensure seamless and secure access using .FUJIXEROX gTLD domain names, interoperability with various software and Web-based applications, and unbroken and secure use of all names. This initial allocation will also allow the appropriate Xerox DNHC staff to coordinate with the internal and external staff responsible for the delegation and setup phases of the .FUJIXEROX gTLD to ensure a proper transition from delegation to full operation.
2. Stage Two
Once all testing has been successfully completed, Xerox DNHC will begin allocating domain names in .FUJIXEROX to Xerox Corporation for more widespread internal corporate use. During this same period of time, Xerox Corporation will begin evaluating strategies to potentially migrate traffic away from its current patchwork network of second-level domain names, which are registered in a variety of TLDs, to Xerox DNHC's new Family of gTLDs.
It is in Stage Two that Xerox Corporation will evaluate expanding the operations of the gTLD to permit registration by other registrants such as licensees or strategic partners. Should an assessment of its expansion strategy lead to a decision to extend registration rights to other parties, this expansion is currently planned to take place during Stage Three. However, any expansion would be conditioned upon a review of the Specification 9 (Registry Code of Conduct) set forth in the template Registry Agreement to ensure compliance with Xerox DNHC's business model.
3. Stage Three
Depending upon the analysis of the evaluations undertaken in Stage Two, Xerox DNHC may begin to implement the permanent migration of Internet traffic away from the TLDs in which Xerox Corporation's domain names are currently registered, and toward Xerox DNHC's new family of branded gTLDs. It is in this stage that Xerox DNHC also may implement Xerox Corporation's decision to extend registration rights to licensees or strategic partners, depending upon compliance with Specification 9 as noted above. The dates of such expansion are subject to change depending upon business, strategic, and industry factors at the time.
After consideration of the following factors: analysis of Xerox Corporation's existing domain name portfolio; internal analysis of marketing initiatives; and the fact that Xerox Corporation will have full control over the number of registrations in the .FUJIXEROX gTLD namespace, Xerox DNHC is confident that the number of domain name registrations will be less than 10,000 in the first five years of operation.
4. Stage Four
Based on their experience with any expansion implemented in StageThree, Xerox DNHC and Xerox Corporation will assess whether the business plan and expansion strategy should be augmented by extending registration rights to a broader class of licensees, and potentially customers of Xerox Corporation. It is anticipated by Xerox Corporation that changes to the domain name industry, and particularly the impact of .BRAND gTLDs, will take at least five years to be realized and assessed. Any decision to expand the gTLDs beyond corporate, qualified subsidiary/affiliate, and licensee/partner use will take into account this experience as well as the technical analysis of potential expansion.×