How Sunrise Periods Protect Trademark Holders

In the ecosystem of domain name registration, one of the most significant mechanisms designed to protect intellectual property rights is the Sunrise Period. This carefully regulated window precedes the general availability of new top-level domains (TLDs) and grants trademark holders the exclusive opportunity to register domain names that exactly match their trademarks before the public can claim them. Introduced as a safeguard against cybersquatting and brand dilution, the Sunrise Period plays a pivotal role in the domain name launch process, ensuring that rights holders have a first line of defense in maintaining control over their digital identities as the DNS continues to expand.

The Sunrise Period is part of a broader framework of rights protection mechanisms mandated by the Internet Corporation for Assigned Names and Numbers (ICANN) for all new gTLDs introduced under its expansion programs. When a new TLD is delegated, the registry must offer a minimum thirty-day Sunrise Phase, during which eligible trademark holders can register names matching the textual elements of their marks. To participate, rights holders must first submit their trademarks to the Trademark Clearinghouse (TMCH), a centralized database operated by Deloitte and IBM under ICANN’s oversight. Once validated, these trademarks become eligible for Sunrise registrations across any subsequent gTLD that enters its launch cycle.

The Trademark Clearinghouse acts as a neutral third party, verifying the legitimacy of submitted trademarks across multiple jurisdictions and languages. This vetting process requires rights holders to provide documentary proof of registration, usage, and ownership. Once accepted, the trademark is issued an SMD (Signed Mark Data) file, which the registrant must present during the Sunrise registration process. This cryptographic file confirms the trademark’s authenticity and serves as a secure token that the registry uses to verify eligibility. This ensures that only genuine rights holders can participate in the Sunrise Period, preventing bad-faith actors from exploiting the early access system.

For trademark owners, the strategic advantage of the Sunrise Period is substantial. It allows them to preemptively secure critical domain names that correspond to their brands without having to compete in the open market or engage in legal disputes later. For instance, a global brand like Adidas can register adidas.shoes or adidas.shop during the Sunrise Phase, locking in valuable digital real estate before cybersquatters or speculative investors can make a claim. This not only prevents brand dilution and consumer confusion but also supports coherent branding strategies across multiple online properties. With the proliferation of new TLDs, from industry-specific names like .bank and .travel to culturally targeted ones like .tokyo or .nyc, having early access allows companies to extend their digital footprint in a controlled and intentional manner.

The Sunrise mechanism also reduces the burden on legal systems and dispute resolution processes. Prior to the introduction of the TMCH and mandatory Sunrise Periods, brand owners were frequently forced into post-registration remedies like the Uniform Domain Name Dispute Resolution Policy (UDRP) or court litigation to reclaim names registered in bad faith. These processes can be time-consuming, expensive, and reputationally damaging, especially if infringing sites are used for phishing, counterfeiting, or misleading promotions. By giving trademark holders the ability to secure domains before any potential misuse, the Sunrise Period shifts the balance in favor of brand protection rather than brand reaction.

However, the Sunrise Period is not without criticism or limitations. Some stakeholders argue that the process is overly complex and cost-prohibitive for smaller businesses, especially those with limited IP budgets or who lack the resources to monitor every new TLD launch. The requirement to register with the TMCH and manage SMD files across dozens of potential domains can be administratively burdensome. Additionally, the strict criteria for exact-match trademarks mean that companies with unregistered marks, common law rights, or variations of a name may not be eligible for Sunrise protection. This can leave gaps in coverage, particularly for regional brands or those with unique linguistic expressions that are not captured by formal trademark registration systems.

Another concern is the practice of some registries monetizing the Sunrise Period by charging premium prices for domains registered during this window. While the exclusivity of access is meant to be a benefit, the inflated pricing of Sunrise domains can feel punitive to brand owners, especially when they are essentially being asked to pay a premium to prevent abuse of their own intellectual property. This dynamic can create the perception that the domain industry profits from brand protection obligations, turning what should be a security mechanism into a cost center.

Despite these issues, the Sunrise Period remains a foundational element of domain name policy and brand protection strategy. Many companies treat participation as standard operating procedure during new TLD launches, often working through IP law firms or specialized brand monitoring services to stay ahead of release schedules and secure domains efficiently. The TMCH has evolved over time to include optional services such as Trademark Claims notifications, which alert trademark holders when third parties attempt to register names matching their marks after the Sunrise Phase has ended. These layered protections reinforce the overall intent of the system: to empower rights holders and maintain trust in the DNS.

As new rounds of gTLD applications are anticipated—such as the upcoming 2025 round—Sunrise Periods will once again play a prominent role in balancing the interests of brand owners and the open domain market. The lessons learned from previous rounds will likely inform policy refinements, potentially expanding eligibility, improving pricing transparency, and streamlining registry coordination. In this evolving landscape, understanding how Sunrise Periods function and how to leverage them effectively will remain a critical skill for trademark counsel, domain strategists, and digital brand managers alike.

In conclusion, the Sunrise Period is a vital mechanism designed to protect trademark holders from the risks of cybersquatting, brand erosion, and domain name abuse. By granting early access to verified rights holders and enabling them to register matching domain names before public release, the system establishes a proactive layer of defense in an otherwise highly competitive and fast-moving domain space. While not perfect, and often accompanied by operational and financial challenges, the Sunrise Period serves as a cornerstone of trust in the expanding universe of domain names and underscores the importance of aligning IP protection with digital asset strategy.

In the ecosystem of domain name registration, one of the most significant mechanisms designed to protect intellectual property rights is the Sunrise Period. This carefully regulated window precedes the general availability of new top-level domains (TLDs) and grants trademark holders the exclusive opportunity to register domain names that exactly match their trademarks before the public…