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.xxx to get lower ICANN fees, accept the URS

Kevin Murphy, October 14, 2016, 08:17:11 (UTC), Domain Registries

ICM Registry has negotiated lower ICANN transaction fees as part of a broad amendment to its Registry Agreement that also includes new trademark protection measures.

The company’s uniquely high $2 per-transaction fee could be reduced to the industry standard $0.25 by mid-2018.

As part of the renegotiated contract, ICM has also agreed to impose the Uniform Rapid Suspension policy on its registrants.

URS is the faster, cheaper version of UDRP that allows trademark owners to have domain names suspended in more clear-cut cases of cybersquatting.

The $2 fee was demanded by ICANN when ICM first signed its RA in 2011.

At the time, ICANN said the higher fee, which had doubled from a 2010 draft of the contract, was to “account for anticipated risks and compliance activities”.

The organization seemed to have bought into the fears that .xxx would lead to widespread misuse — something that has noticeably failed to materialize — and was expecting higher legal costs as a result.

The companion TLDs .adult, .porn and .sex, all also managed by ICM, only pay $0.25 per transaction.

The overall effects on registrants, ICANN and ICM will likely be relatively trivial.

With .xxx holding at roughly 170,000 domains and a minimal amount of inter-registrar transfer activity, ICM seems to be paying ICANN under $400,000 a year in transaction fees at the moment.

Its registry fee is usually $62, though a substantial number of domains have been sold at lower promotional pricing, so the cost to registrants is not likely to change a great deal.

The reduction to $0.25 would have to be carried out in stages, with the earliest coming this quarter, and be reliant on ICM keeping a clean sheet with regards contract compliance.

Under the deal, ICM has agreed to adopt many of the provisions of the standard Registry Agreement for 2012-round gTLDs.

One of those is the URS, which may cause consternation among domainers fearful that the rights protection mechanism may one day also find its way into the .com registry contract.

ICM has also agreed to implement its existing policies on, for example, child abuse material prevention, into the contract as Public Interest Commitments.

The RA amendment is currently open for public comment at ICANN.

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