Two-character domain names are likely to raise more intellectual property issues than one-character domain names because of their connection to company names, Switzer admitted.

"I can see two-character names being used with company names, stock symbols or the respective chambers of commerce for the states," Switzer says.

Two-character domain names are already available in the .net and .com domains.

The .biz domain has more than 2 million domain names registered, focused primarily on small and midsized businesses.

The phenomenon of short domain names may be spreading across the Internet. Switzer says the .pro and .travel domains have already requested permission from ICANN to sell one- and two-character domain names, too.