XXX protection racket?

That's the title of my Slaw post for today.  It reads as follows. The .XXX top level domain application period is underway. This has been a very controversial topic. The XXX domain is available for users in the "sponsored community", being the "adult entertainment industry".

One of the criticisms of this TLD is the fear that people will try to register domains using names or trade-marks of those outside of the sponsored community. disney.XXX, or apple.XXX for example.

So a procedure is in place called "Sunrise B" where for a short period of time (September 7 to October 28), trade-mark owners can apply to have their marks blocked from registration. The wrinkle is that it costs hundreds of dollars to do that. Sunrise B applications are now being accepted.

So if you want to block your brand so others can't use it to get a XXX TLD - the time to act is now.

But doesn't this seem like a protection racket?