Next month, ICANN (The Internet Corporation for Assigned Names and Numbers, the organization that largely controls the world of domain names and registries) will be holding a forum in Cairo, Egypt to determine whether or not to add more new top-level domain names to those currently offered.

A top-level domain (TLD) is the term for the basic suffixes that all domain names must have, such as .com, .net, and .org. Since the introduction of newer TLDs such as .info a few years ago, there has been a renewed interest in domain name activity and speculation.

This news comes on top of a huge announcement this summer that ICANN will also be expanding TLDs to include customized, brand name-oriented names — .nike, for example, or .disney could become viable TLDs under the proposed new rules that may go into effect as early as next year.

All such plans to expand the range of available TLDs have drawn criticism. Some say that the wider variety of TLDs mean that online branding is getting watered down. Since there are so many new options, it’s hard to tell just which is the most legitimate. Are companies supposed to buy new domain names in each new TLD as it becomes available? If they don’t, what are the risks of someone else snatching it up?

ICANN defends its plans, claiming that it’s trying to provide online businesses with an increased number of options: “It’s an expansion in Internet real estate so that people have got more choices in the kind of searches they do,” said Paul Levins, vice president of corporate affairs for ICANN (as quoted in the Orlando Sentinel last week).

Yet, with these new customized domains likely costing at least $100,000, it’s not at all clear what kind of advantages they’re going to offer in the long run; and it seems apparent that smaller companies will have a harder time becoming competitive under the new rules of the online business game.

More from the Orlando Sentinel:

Supporters say the move will make browsing the Internet more intuitive and also give companies a new way to reinforce their brand names. But others warn that it could confuse consumers and become a headache for companies that may not want to purchase a bunch of new domains.

Besides the obvious benefit of a company such as Disney being able to direct visitors to a URL such as “parks.Disney” instead of the current “Disney.com/parks,” the expansion of domain names could benefit geographic regions.

For instance, if the .orlando domain were established by the city government or an economic-development group, it could streamline searching for local services by having a directory of plumbers listed at “plumbers.orlando,” or a list of swimming pools at “pools.orlando.” Businesses licensed by the city also could be granted a .orlando address. …

And since it won’t be a first-come, first-served basis, businesses and individuals will have a better shot at getting their desired Web addresses than they did during the first Internet gold rush. …

Levins said applicants will have to pay at least $100,000 to apply and will have to prove that if they are granted a top-level domain, they are capable of then selling Web addresses within that domain … .

“This is no $6 exercise,” said Levins, adding that an independent board will oversee the process. “Running a top-level domain is actually a big business.”

Palage said cities and special-interest groups such as the National Rifle Association or the University of Florida Alumni Association could see the biggest benefit from having their own top-level domains because it’s similar to offering specialty license plates with that group’s name on them.

“[If I am a business,] I want a .orlando because I want to associate with my customers to show I am a member of the local community,” Palage said.

A spokeswoman for the Walt Disney Co. said the company is aware of the new domain-name plan but would not comment.

Palage said many companies aren’t pleased with the new domains because it means that after years spending time and money to protect their brands with the existing domains, they’re going to have to do it again.

The law firm Cash Klemchuck Powers Taylor LLP also envisions negative outcomes resulting from these changes. From a news release issued by that firm:

“ICANN’s goal is to give end-users more choice in their presence on the Internet and stimulate competition,” said Darin M. Klemchuk. “However, critics have compared the introduction of new domains with the printing of money: the value of your current registration is decreased because of possible brand dilution and public confusion, while the cost of protecting one’s brand increases.”

ICANN encourages users to avoid registering gTLDs that are confusingly similar to an already existing gTLD in order to prevent confusion in the marketplace. The introduction of new gTLDs will increase the open avenues for registering confusingly similar variations of brand names. ICANN encourages applicants to adopt curative measures, such as Uniform Dispute Resolution Policy (UDRP), to cure such confusion. Additional preventative measures include the registration of many domain names. “With the multiplication of top level domain registrations, businesses will experience difficulty in policing their brands online and will likely incur substantial costs,” noted Mr. Klemchuk. “This expansion of domain names will also make phishing schemes more prevalent. All of this will require businesses to be more vigilant and proactive in protecting their online brands.”

Read “Explosion of New Domain Names Presents Risks for Online Brands” here. Read “What’s in a dot.com name … ” in the Orlando Sentinel here.