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ICANN heads to Mar-a-Lago for budget crisis talks

Kevin Murphy, April 1, 2018, Gossip

Cash-strapped ICANN has invited select community members to emergency budget talks at the Mar-a-Lago resort in Florida, DI has learned.

The three-day summit next week will address how best to spend the organization’s $138 million annual budget, along with its $236 million auction proceeds war chest and its $80 million of leftover new gTLD application fees.

“Recent public comments have made it clear than many valued ICANN community members have misunderstood our FY19 budget,” CEO Goran Marby said. “I believe a long weekend of intensive discussions at Mar-a-Lago should persuade the community that we’re actually on the right track.”

To encourage participation from an increasingly weary volunteer pool, attendees will be treated to complimentary spa treatments, golfing, and the most beautiful pieces of chocolate cake, he said.

DI has managed to obtain a preliminary agenda for the summit, which can be read here (pdf).

Business-class flights and three nights’ accommodation at the exclusive members club will be covered by ICANN.

Mar-a-Lago, purchased by Donald Trump in the 1980s, is a “six-star” resort in Palm Beach, Florida. It was originally a five-star hotel, until 2004 when Trump purchased the one-star hotel next door and knocked through.

Marby defended the choice of venue, pointing out that the guest list is to be strictly limited to the ICANN board of directors, industry CEOs, and members of the Intellectual Property Constituency.

DI understands that the IPC will be permitted to invite members of the Non-Commercial Stakeholder Group to attend, should they require golf caddies.

To ensure gender diversity, all attendees will be able to bring along their spouses or partners. ICANN will make up any shortfall by hiring decorative females from a pool of Trump litigants.

A small support team of 50 ICANN staffers will also be available to hand out fresh towels, collect empty glasses, and so on.

Remote participation will be available via AOL Instant Messenger.

Chief financial officer Xavier Calvez declined to disclose the cost of the summit, citing privacy concerns caused by “GDPR or something”, but DI understands it is to be accounted for as a line item in ICANN’s Federal lobbying disclosure.

Calvez said ICANN has managed to negotiate “substantial” bulk discounts on the usual $200,000 Mar-a-Lago membership fees and $2,000-a-night room rates.

The cost will also be offset by sponsorship contributions from ICANNwiki and the National Rifle Association, he said.

Registry and registrar CEOs polled by DI this weekend were split on whether they would attend.

“Of course I’m going,” Blacknight CEO Michele Neylon told us by phone from an airport lounge in Kigali.

But .xyz chief Daniel Negari said he would attend only if he can secure sufficient funding for his bus fare to the airport.

Among the cost-cutting proposals on the menu, DI understands, is a request to consolidate all current and future policy working groups into a single, unified WG.

Sources say this would have the added benefit of reducing the annual policy implementation budget to zero dollars between now and, at the earliest, 2045.

Cybersquatting cases up because of .com

Kevin Murphy, March 23, 2018, Domain Services

The World Intellectual Property Organization handled cybersquatting cases covering almost a thousand extra domain names in 2017 over the previous year, but almost all of the growth came from complaints about .com names, according to the latest WIPO stats.

There were 3,074 UDRP cases filed with WIPO in 2017, up about 1.2% from the 3,036 cases heard in 2016, WIPO said in its annual roundup last week.

That’s slower growth than 2016, which saw a 10% increase in cases over the previous year.

But the number domains complained about in UDRP was up more sharply — 6,370 domains versus 5,374 in 2016.

WIPO graph

WIPO said that 12% of its 2017 cases covered domains registered in new gTLDs, down from 16% in 2016.

If you drill into its numbers, you see that 3,997 .com domains were complained about in 2017, up by 862 domains or 27% from the 3,135 seen in 2016.

.com accounted for 66% of UDRP’d domains in 2016 and 70% in 2017. The top four domains in WIPO’s table are all legacy gTLDs.

As usual when looking at stats for basically anything in the domain business in the last few years, the tumescent rise and meteoric fall of .xyz and .top have a lot to say about the numbers.

In 2016, they accounted for 321 and 153 of WIPO’s UDRP domains respectively, but they were down to 66 and 24 domains in 2017.

Instead, three Radix TLDs — .store, .site and .online — took the honors as the most complained-about new gTLDs, with 98, 79, and 74 domains respectively. Each of those three TLDs saw dozens more complained-about domains in 2017 than in 2016.

As usual, interpreting WIPO’s annual numbers requires caution for a number of reasons, among them: WIPO is not the only dispute resolution provider to handle UDRP cases, rises and falls in UDRP filings do not necessarily equate to rises and falls in cybersquatting, and comparisons between .com and new gTLDs do not take into account that new gTLDs also have the URS as an alternative dispute mechanism.

CentralNic and KeyDrive in merger talks

Kevin Murphy, March 14, 2018, Domain Registries

CentralNic and KeyDrive, two major European domain firms, are in merger talks, CentralNic confirmed this morning.

CentralNic said that the transaction, should it close, would be a “reverse takeover” of itself by KeyDrive.

That’s where a private company, in this case KeyDrive, reverses into a public one, in this case AIM-listed CentralNic.

Luxembourg-based KeyDrive is the holding company for brands including the registrars Key-Systems, Moniker and BrandShelter and the registries OpenRegistry and KSRegistry.

London-based CentralNic is a registry provider for the likes of .xyz, recent acquirer of Slovakian TLD .sk, and owner of registrars Internet.bs and Instra.

CentralNic said: “CentralNic and KeyDrive Group believe that the combination of the two businesses would have strong strategic logic and economies of scale, and would represent an opportunity to create a group with advanced technology platforms delivering significant recurring revenues for every major customer type within the industry.”

If a deal should be struck, it would happen in the second quarter, the company said.

The announcement was made today after news of the talks leaked.

Trading in CentralNic shares has been temporarily suspended.

Industry report show slightly stronger growth than Verisign’s

The latest domain name industry growth figures from CENTR show slightly better performance than a recent report from Verisign covering the same period.

CENTR says in its latest DomainWire Global TLD Report there were 331.1 million registered domains at the end of 2017, whereas Verisign, in its Domain Name Industry Brief last month, put that at 332.4 million domains.

But CENTR’s figures show growth of 1.2% compared to the end of 2016, a figure Verisign put at 0.9%.

The CENTR report shows growth in ccTLDs offset by a 0.4% decline in gTLD registrations. The drag factors for gTLDs were largely .net, .xyz and .top.

CENTR and Verisign use mostly the same sources for their data — published zone files for gTLDs and cooperative ccTLDs, and independent researcher Zooknic to plug the gaps — but they vary in how they calculate their growth numbers.

For example, Verisign said .com ended the year with 131.9 million names, but CENTR puts that number at 130.4 million. It looks to me like Verisign counts registered domains that do not appear in the .com zone file to get to its total.

In addition, CENTR excludes dot-brand gTLDs, gTLDs with fewer than 500 domains, and ccTLDs that do not provide reliable quarter-to-quarter data from its calculations.

The CENTR report can be downloaded here.

Domain universe grows almost 1% in 2017 despite new gTLD slump

Kevin Murphy, February 16, 2018, Domain Registries

The total number of registered domain names in all TLDs was up 0.9% in 2017, despite a third-quarter dip, according to the latest data compiled by Verisign.

The latest Domain Name Industry Brief, published yesterday, shows that there were 332.4 million domains registered at the end of the year.

That’s up by 1.7 million names (0.5%) on the third quarter and up 3.1 million names (0.9%) on 2016.

Growth is growth, but when you consider that 2015-2016 growth was 6.8%, under 1% appears feeble.

The drag factors in 2017 were of course the 2012-round new gTLDs and Verisign’s own .net, offset by increases in .com and ccTLDs.

New gTLD domains were 20.6 million at the end of the year, down by about 500,000 compared to the third quarter and five million names compared to 2016.

As a percentage of overall registrations, new gTLDs dropped from 7.8% at the end of 2016 to 6.2%.

The top 10 new gTLDs now account for under 50% of new gTLD regs for the first time.

The numbers were primarily affected by big declines in high-volume spaces such as .xyz, which caused the domain universe to actually shrink in Q3.

Verisign’s own .com fared better, as usual, with .net suffering a decline.

The year ended with 131.9 million .com names, up by five million names on the year, exactly offsetting the shrinkage in new gTLDs.

But .net ended up with 14.5 million names, a 800,000 drop on 2016.

In the ccTLD world, total regs were up 1.4 million (1%) quarterly and 3.4 million (2.4%) annually.

Excluding wild-card ccTLD .tk, which never deletes domains and for which data for 2017 was not available to Verisign, the growth was a more modest 0.7 million (0.5%) quarterly and 2.3 million (1.8%) annually.

The DNIB report for Q4 2017 can be downloaded here (pdf).

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