Go Daddy 2015 Annual Report Download - page 145

Table of Contents
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functions. We are accredited by ICANN as a domain name registrar and thus our ability to offer domain name registration
products is subject to our ongoing relationship with and accreditation by ICANN. The regulation of Internet domain names in the
United States and in foreign countries is subject to change. In particular, on March 14, 2014, the NTIA announced its intention to
transition key Internet domain name functions to the global multi-stakeholder community. At this time there is uncertainty
concerning the timing, nature and significance of any transition from U.S. oversight of ICANN to oversight of ICANN by another
body or bodies.
ccTLD Authorities. The regulation of ccTLDs is governed by national regulatory agencies of the country underlying the
specific ccTLDs, such as China (.cn), Canada (.ca) and the United Kingdom (.uk). Our ability to sell ccTLDs is dependent on our
and our partners’ ability to maintain accreditation in good standing with these various international authorities.
Advertising and promotional information presented on our websites and in our products, and our other marketing and
promotional activities, are subject to federal and state consumer protection laws regulating unfair and deceptive practices. U.S.
federal, state, and foreign legislatures have also adopted laws and regulations regulating numerous other aspects of our business.
Regulations relating to the Internet, including laws governing online content, user privacy, taxation, liability for third-party
activities and jurisdiction, are particularly relevant to our business. Such laws and regulations are discussed below.
Communications Decency Act. The CDA regulates content of material on the Internet, and provides immunity to Internet
service providers and providers of interactive computer services for certain claims based on content posted by third parties. The
CDA and the case law interpreting it generally provide that domain name registrars and website hosting providers cannot be liable
for defamatory or obscene content posted by customers on their servers unless they participate in creating or developing the
content.
Digital Millennium Copyright Act. The DMCA provides domain name registrars and website hosting providers a safe harbor
from liability for third-party copyright infringement. To qualify for the safe harbor, however, registrars and website hosting
providers must satisfy numerous requirements, including adoption of a user policy providing for termination of service access of
users who are repeat infringers, informing users of this policy, and implementing the policy in a reasonable manner. In addition,
registrars and website hosting providers must expeditiously remove or disable access to content upon receiving a proper notice
from a copyright owner alleging infringement of its protected works. A registrar or website hosting provider failing to comply
with these safe harbor requirements may be found liable for copyright infringement.
Anti-Cybersquatting Consumer Protection Act. The ACPA was enacted to address piracy on the Internet by curtailing a
practice known as "cybersquatting," or the bad-faith registration of a domain name identical or similar to another party’s
trademark, or to the name of another living person, in order to profit from that name or mark. The ACPA provides that registrars
may not be held liable for damages for registration or maintenance of a domain name for another person absent a showing of the
registrar’s bad faith intent to profit. Registrars may, however, be held liable if their activities are deemed outside the scope of
basic registrar functions.
Lanham Act. The Lanham Act governs trademarks and false advertising. Case law interpreting the Lanham Act has limited
liability for many online service providers such as search engines and domain name registrars. Nevertheless, there is no statutory
safe harbor for trademark violations comparable to the provisions of the DMCA and we may be subject to a variety of trademark
claims in the future.
Privacy and Data Protection. In the areas of personal privacy and data protection, the U.S. federal and various state and
foreign governments have adopted or proposed limitations on, and requirements associated with, the collection, distribution, use,
storage, and security of personal information of individuals. If our practices with respect to the collection, distribution, storage, or
security of personal information are challenged, we may not be able to demonstrate adequate compliance with existing or future
laws or regulations. In addition, in the European Union member states and certain other countries outside the U.S., data protection
is more highly regulated and rigidly enforced. As we conduct and expand our business within these countries, we expect
compliance with these regulatory schemes to be more burdensome and costly for us.
Laws and regulations relating to our activities are unsettled in many jurisdictions, or may prove difficult or impossible to
comply with in some jurisdictions. Additionally, federal, state, local and foreign governments are also considering legislative and
regulatory proposals that would regulate the Internet and our activities in more and different ways than exist today. It also is
impossible to predict whether new taxes will be imposed on our services, and depending upon the type of such taxes, whether and