Brexit and beyond: Impacts and best practices for domain registrants around the world

Prudence MalinkiGlobal Relationship Manager

Brian KingDirector of Internet Policy and Industry Affairs

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Brexit/ˈbrɛksɪt,ˈbrɛgzɪt/

nounThe withdrawal of the United Kingdom from the European Union.

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How Did the UK Get Here?

A referendum (public) vote took place in June 2016 and the UK public voted to leave with a simple 51.89% to 48.11% majority

Since then there have been many attempts to negotiate a Brexit Deal (a plan for the transition) and to agree the terms upon which the UK will exit the EU

The UK is the first EU member state to attempt to leave the EU since its inception in 1993

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Brexit and Beyond

“Brexit Remorse”: A poll taken by YouGov two years after Brexit shows that voters are increasingly regretting their decision to leave the EU

With a Parliament currently divided, the outcome is unclear.

*Data from YouGov Polls, graphic courtesy of Chartr Daily

Global business impact

Possible post-Brexit outcomes and scenarios

Global Brexit Impact and Possible Scenarios

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Global Impact of Brexit:

• Citizenship and travel:• European residents for less than 5 years are not entitled to stay - applications for “Settled”

status after 5 years residence• Uncertainty as to visa requirements for travelling across the EU post Brexit

• Ambiguity relating to UK Constitution vs rights conveyed by EU legislation

• Currency markets

• Tax implications

• Corporate response:• Multinational companies closures of UK branches, EU head offices/ factories (Honda,

Philips, Panasonic, Sony, Monocle)• “Stockpiling” of products and materials in preparation for trade impacts and difficulties

(Coca- Cola, LMVH, Bosch, Nestle)

*Source Brexit Impact Tracker, Bloomberg https://www.bloomberg.com/graphics/brexit-impact-tracker/

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Possible Outcomes

There are multiple scenarios that would be the outcome of the “Brexit” vote:

1. No Brexit- Article 50 rescinded and the UK remains in the EU

2. Deal Brexit- The UK agrees and passes a transition deal and leaves the EU

3. No Deal Brexit- The UK leaves the EU without a deal and no clear transition plan.

With a deadline looming (March 29th) Article 50 may need to be extended (requiring unanimous agreement of all Member States)

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"Deal Brexit" Possible Scenarios

https://macromatters.lgim.com/categories/macrobites/can-someone-please-tell-us-what-we-just-voted-on/

Types of nexus requirements

Likely post-Brexit changes

ccTLD Requirements and Changes

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Nexus Requirement Examples:

France

Italy

Croatia

Slovakia

Bulgaria

Hungary

The registrant must be located in the EU or Norway, Iceland, Switzerland or Lichtenstein.

The registrant must be located in an EEA or EFTA country, or be a neighboring country of Hungary.

The registrant must be located in the EU, Norway, Iceland, Switzerland, Liechtenstein, San Marino, or the Vatican.

All WHOIS contacts must have a postal address in an EU Member State, EEA, or EFTA.

Other requirements, including TM

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Brexit Implication for UK Registrants

Some extensions where UK Registrants could register in “Post Brexit” scenarios they are no longer eligible.

Some Registries have made allowances to still permit UK registrants, however some have not.

Registry that has a EU Nexus Requirement

UK Resident

Registry that has a EU Nexus Requirement

DOMAIN REGISTRATION

GRANTED

DOMAIN REGISTRATION

DENIED (ineligible)

UK Resident(Post Brexit)

In a “Post Brexit” scenario UK registrant’s eligibility for domain registrations comes into question

Pre Brexit Registration Post Brexit Registration

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Registry Stances and Positions

Some of the ways Registries are interpreting the eligibility of UK registrants to their domain names are as follows:

• UK registrants no longer eligible to apply for registrations (Bulgaria)

• UK registrants are still eligible on basis on membership of EEA/ EEC/ EEFTA/ Council of Europe (Hungary Slovakia)

Registries have discretion as to whether UK registrants retain registrant eligibility

France

Italy

Croatia

Slovakia

Bulgaria

Hungary

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Unaffected Registries and Countries

The following extensions and regions are unaffected by Brexit as their requirements will neither change nor need revision when the UK leaves the EU

Austria

Germany

Sweden

Denmark

Netherlands

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Registry Stances and Positions (continued) The Stance of the Registry for .eu is slightly different

.eu is governed by the European Commission (EC)

In the occurrence of a “No Deal” Brexit EURid shall be placing all domain names registered to UK registrants in a “Withdrawn” status:

• 2 Notifications: • 23rd March EURid sends a notification to

registrants • 30th March EURid sends a second

notification to registrant

2 month “Cooling Off” period available: allowing time for further updates and modifications, no renewals possible: • 30th May 2019 all domain names withdrawn• 30th March 2020 domains revoked and available in

Batches

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Registry Stances and Positions (continued)

In a “Deal Brexit” scenario the withdrawal process is as follows:

• 2 Notifications: • 23rd December 2020 EURid sends a

notification to registrants • 1st January 2021 EURid sends a second

notification to registrant

2 month “Cooling Off” period available: allowing time for further updates and modifications, no renewals possible• 2nd March 2021 all domain names withdrawn• 1st January 2022 domains revoked and available in

Batches

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Changes in Eligibility Criteria

Changes are confirmed for the eligibility criteria for .eudomain names. Where EU citizens shall be able to register EU domain names regardless of their country of residence:• EU citizens that reside in the UK shall have their

eligibility return in Q4 2019

• There shall be a “reinstatement” process that is applicable to them

• EU citizens with UK addresses shall have their domain names in a “withdrawn” status for a number of months.

https://eurid.eu/en/register-a-eu-domain/brexit-notice/

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What Happens Next?

The overarching ccTLD impact is not confirmed yet with a number of registries awaiting the decisions and actions of EURid before they take their actions as to eligibility and requirements of UK registrants

Actions needed

Best practices

Next Steps

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Actions Needed

Identify .eu domains using UK Registrant

Details

ImmediateLocate alternative EU

based subsidiary/ affiliate

Update Registrant information

Ongoing Identify whether EMEA address and/or

TM is UK based

Locate alternative EU based subsidiary/

affiliate

Use new EU address for registrations

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Best Practices

• For .eu domain names look at your portfolio and identify domain names that are registered to UK address information.

• MarkMonitor is performing this analysis for our clients. Please contact your CSM if we haven’t already contacted you.

• Identify eligible subsidiaries or affiliated businesses that can take ownership of the domain names

• Consult legal, finance, and tax departments

• Start the process of updating ownership in advance of the withdrawn dates - prevention is better than cure!

• If no eligible subsidiaries, use local presence or proxy services where possible

• Reallocate budget: good opportunity to consider letting domains expire if not needed

Brian King, Director of Internet Policy and Industry Affairs | +1 443-761-3726 | brian.king@markmonitor.com | markmonitor.comPrudence Malinki, Global Relationship Manager | +44 207-433-4869 | prudence.malinki@markmonitor.com | markmonitor.com