What is the best course of action in dealing with Domain Policies? For instance, if my company develops open source software at www.bestsoft.com, should my Domain Policy allow the creation of bestsoft.fr by a team of not directly affiliated supporters in France?
Would it be better to keep all top-level domains reserved for the company use (for trademark protection), and ask affiliates to use abbreviations (bs.fr) or sub-domains (bestsoft.france.fr), like WordPress does?
Why do you have a "domain policy" in the first place?
Is there a team in France that will create a site with the same name? if they want to, will they read all your policies before doing this? if they do, will they care? and if after all this they create the France site will you spend the money on an international law suite to stop them?
The point is that there is no way to enforce your domain policy unless you own all those domains, so you have to buy not only example.com but also example.fr (and .net, .org, .biz, .ly, .co, .co.uk, .org.uk ... there are lots of top level domain in the world).
If you are paranoid buy your name under all top level domain names, redirect them all to your main site and forget about it (this gets expensive and unless you are a huge multinational company it's a huge overkill)
Otherwise forget about it and stop producing policies and documents no one will care about.