The proposal is meant to prevent bad actors from registering. For example, a fraudster could set up a domain like redcross.charity to solicit donations.

Under Melbourne IT's proposal, , organisations would be able to register brands to a list of "high at-risk marks" (HARMs) and pay a one-time reservation fee preventing others from using the brand in their Web address, even with a gTLD that has not been registered. Melbourne IT is a domain name registration company.

"Well-known distinctive names have acted as a reliable signpost for consumers for centuries -- they allow consumers to quickly identify the organisation they are interacting with and carry implied trust or distrust based on those interactions," said Melbourne IT CEO, Theo Hnarakis.

"Trademark law was established to protect the use of these distinctive names. Domain name misuse abuses that consumer trust and the potential for misuse of well-known distinctive names among new gTLDs at the second level is significant.

Hnarakis said ICANN needs to go further in protecting trademark holders form fraudsters.