The problem is that it is not just those who registered domains for resale / profit that will be impacted, if you are a small business up against a multi-national, you will just not be able to afford your name. In effect your site / business becomes relegated as a 2nd class UK business due to the way that .uk is being presented (we all understand domains, however, the facebook generation generally has no clue and simply accept what they are told). If Nominet choose not to tell all current domain holders (some odd thing about data protection when you already get emails from Nominet) then you are down to your registrar telling you to apply for it again, if you don't get told (after all a lot of small business have their sites done by "bedroom developers") then you are likely to find out when it is too late.
How do you define a dispute process? Surely if there was a valid dispute criteria the potential alternative registrant would be able to DRS the current .co.uk which being the leading UK domain branding would be the current domain of choice.
'Cannot afford' is not true in my proposed version of events, where a dispute process with a shared fixed fee is used instead of an auction.
However I agree completely with you about needing much more widespread communication should the proposal go ahead.
In my proposal, every domain with more than one applicant would go through a 'who deserves it most' adjudication by a third party (might well effectively be the existing dispute mechanism). I'm not suggesting there's any dispute of existing registrations, just that there will often be more than one applicant who is deserving - it's a question of deciding who is most deserving.
For instance, trademarks which are not in active use or have been inappropriately registered would fail to trump a genuine business with the .co.uk.
The biggest problem with this whole proposal is that it's difficult to decide who is most deserving. So that's what I've focused my response on.
Edit: And worth saying that I don't like the auction because it unfairly favours those with the deepest pockets, and the only winners are Nominet who don't need the money.
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