You could argue ICANN extorts money here by putting pressure on companies to apply for gtld's in order to protect their marks. Many companies do not want to apply. For example, the world's most valuable trademark is missing from this applicant pool: Coke. There's no reason ICANN has to create gtld's that match trademarks by putting them in the ICANN root zone. It is domainers that want new gtld's the most. (For the simple reason why, see below.) How hard is it to do 2000 trademark searches? Essentially ICANN is profiting (they get a small fee for every domain name registration that is later sold) by selling the rights to use someone else's trademark.
Then there is the extortion that is carried out by the registries and registrars and domainers. Companies are forced to purchase and renew registrations for direct matches and typos of their trademarks in many different gtlds. More tld's equals more money. Also companies register and renew names in the form [companyname]sucks.tld. That is why you see some applications for a .sucks gtld. These defensive registrations are the bread and butter of the domain name "business". Again, they have no right to sell use of these trademarks. But they do. And they make a handsome profit from the "protection money" that must be spent by companies as a result.
That said, you do have a point: If you are a large company, $2000 and the fees to register domain names in lots of tld's, or to file UDRP's, are essentially nothing. It's easier for companies to just pay the fees rather than try to figure out how DNS actually works and how ICANN and their followers manage to pull off this scam.
You could argue ICANN extorts money here by putting pressure on companies to apply for gtld's in order to protect their marks.
You could, except I've shown that you don't have to register the mark to protect it.
Companies are forced to purchase and renew registrations for direct matches and typos of their trademarks in many different gtlds.
No, they aren't, Amazon doesn't own amazon.net and nobody gives a fuck, because people don't write domains, they write "amazon" and click on the first result of the search engine.
Companies buy other domains for irrational fears based on outdated assumptions from when dinosaurs roamed the Earth and search engines sucked.
Nonetheless, those outdated assumptions linger and the irrational fears are widespread and easy to exploit. And that is exactly what is happening, every time a new gtld is opened.
You want to use Amazon as the example? It's a terrible example, because Amazon are savvy. And yet, it turns out, even they do own amazon.biz and amazon.info. The worthlessness of those namespaces is evident: it didn't even occur to you to check them!
Amazon didn't register those for the SEO; it's a pure defensive registration.
Feel free to write to Jeff, tell him to let those registrations lapse 'cos he doesn't need 'em.
There's money to be made by owning a domain like amazon.net. You would be amazed at how many people type searches and erroneous strings (e.g., .net when they mean .com) into the Address Bar.
Just because we can't imagine anyone doing this does not mean they don't. They do. That's why numerous domainers are millionaires, some of them a hundred times over, and that's why they are salivating at the thought of running a registry.
Zappo's had shoes.com. Now it belongs to Amazon. Amazon knows the power of domain names. Users do type in the Address Bar. We might not know who these users are, but they exist. They have made a number of domainers very wealthy. And Amazon has paid millions to acquire domain names, no matter how ridiculous we may think domain names are, e.g., they paid a premium to acquire a.co
You could argue ICANN extorts money here by putting pressure on companies to apply for gtld's in order to protect their marks. Many companies do not want to apply. For example, the world's most valuable trademark is missing from this applicant pool: Coke. There's no reason ICANN has to create gtld's that match trademarks by putting them in the ICANN root zone. It is domainers that want new gtld's the most. (For the simple reason why, see below.) How hard is it to do 2000 trademark searches? Essentially ICANN is profiting (they get a small fee for every domain name registration that is later sold) by selling the rights to use someone else's trademark.
Then there is the extortion that is carried out by the registries and registrars and domainers. Companies are forced to purchase and renew registrations for direct matches and typos of their trademarks in many different gtlds. More tld's equals more money. Also companies register and renew names in the form [companyname]sucks.tld. That is why you see some applications for a .sucks gtld. These defensive registrations are the bread and butter of the domain name "business". Again, they have no right to sell use of these trademarks. But they do. And they make a handsome profit from the "protection money" that must be spent by companies as a result.
That said, you do have a point: If you are a large company, $2000 and the fees to register domain names in lots of tld's, or to file UDRP's, are essentially nothing. It's easier for companies to just pay the fees rather than try to figure out how DNS actually works and how ICANN and their followers manage to pull off this scam.