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Registrars want six-month stay on new Whois policy

Registrars representing the majority of the gTLD industry want ICANN to withhold the ban hammer for six months on its new temporary Whois policy.

As I reported earlier today, ICANN has formally approved an unprecedented Temporary Policy that seeks to bring the Whois provisions of its contracts into compliance with the EU’s General Data Protection Regulation.

It comes into effect next Friday, May 25, but it contains a fair few items that will likely take longer for registrars to implement.

While ICANN’s top lawyer has indicated that ICANN Compliance will act as reasonably as possible about enforcing the new policy, registrars want a moratorium of at least six months.

In a letter (pdf) dated May 16 (before the policy was voted through, but while its contents were broadly known), Registrar Stakeholder Group chair Graeme Bunton wrote:

Any temporary specification adopted now that significantly deviates from previously held expectations and models will be far too late for us to accommodate for a May 25, 2018 implementation date.

For this reason, we ask that any temporary specification include a formal ICANN compliance moratorium, not shorter than six (6) months, providing us an opportunity to conform, to the extent possible, our GDPR implementation with the GDPR-compliant aspects of any ICANN temporary specification

He added that some registrars may need even more time, so they should have the right ask for an extension if necessary.

The letter is signed by Endurance, GoDaddy, Tucows, Blacknight, 1&1, United Domains, NetEarth One and Cloudflare, which together account for most gTLD domains.

101domain founders suing Afilias over unpaid $1 million after $15.5 million acquisition

The two former owners of 101domain are suing Afilias over an unpaid $1 million portion of their $15.5 million acquisition deal.

And Afilias is suing them right back, claiming it doesn’t have to pay because the deal left it saddled with an undisclosed tax bill in excess of $1 million.

The suit was filed by Anthony Beltran and Wolfgang Reile, who has since died, in February and Afilias counter-sued a couple of weeks ago, but I only recently became aware of the case and I don’t believe it’s been reported elsewhere.

Afilias bought 101domain back in 2015 for a then-undisclosed sum, its first big push into the registrar side of the industry.

Court documents now reveal that the Ireland-registered company gave 90%-owner Reile and 10%-owner Beltran a combined $12.5 million cash, along with a promissory note to pay $3 million more over the next two years.

Afilias paid them the first $2 million owed in September 2016, but when it came to paying the remaining $1 million the company refused, saying it had discovered 101domain had a VAT liability from before the deal closed of around $875,000.

Last month, after the suit was filed, it re-estimated the alleged liability at over $1 million.

Under the terms of the promissory note, Afilias reckons it does not have to pay up. What’s more, it wants the two men to cover the difference between the money it owes them and the amount of the tax bill.

In their initial complaint (pdf), Reile and Beltran disputed whether the liability even exists, saying “Afilias has failed to provide an adequate accounting for the purported pre-closing VAT liability”.

Reile died April 6, but Afilias filed its counter-complaint (pdf) April 19 and the legal wheels still appear to be turning.

Beltran, who declined to comment on the case, is still listed as 101domain’s president on the registrar’s web site.

ICANN cancels registrar audit as GDPR headaches loom

Kevin Murphy, April 30, 2018, Domain Registrars

ICANN has decided to call off a scheduled audit of its registrar base, to enable registrars to focus on sorting out compliance with the General Data Protection Regulation.

The biannual audit, carried out by ICANN Compliance, was due to start in May. As you likely know by now, May 25 is GDPR Day, when the EU’s privacy law comes into full effect.

In a letter (pdf) to registrars, senior VP of compliance Jamie Hedlund said: “The April 2018 registrar audit round is on hold.”

He added: “We are reviewing the schedule, resources and risks associated with holding a single, larger audit round in autumn of 2018, as well as considering alternative approaches.”

His letter came in response to a plea (pdf) from Registrar Stakeholder Group chair Graeme Bunton, who said an audit that clashed with GDPR deadline would be an “enormous undertaking” for affected registrars.

The audits, which have been running for a few years, randomly select a subset of registries and registrars to spot-check compliance with their Registrar Accreditation Agreements and Registry Agreements.

The program looks at 20-odd areas of compliance, one of which is Whois provision.

Drop-catcher drops almost all remaining registrars

Kevin Murphy, April 23, 2018, Domain Registrars

Drop-catch specialist Pheenix has terminated almost all of its remaining registrar accreditations, leaving it with just its core registrar.

By my count, 50 shell registrars have terminated their ICANN contracts over the last few days, all of them part of the Pheenix dropnet.

Only Pheenix.com remains accredited.

That’s one registrar, down from a peak of about 500 at the end of 2016.

Almost 450 were terminated in November.

With registrars equating to connection time with the .com registry, it looks like Pheenix’s ability to catch dropping names through its own accreditations has been severely diminished.

By my count, ICANN currently has 2,495 accredited registrars, having terminated 524 and accredited about 40 since last July, when it said it expected to lose a net 750 over the coming 12 months.

Fifty registrars is worth a minimum of $200,000 in fixed annual fees to ICANN.

101domain founder Wolfgang Reile dies at 67

Kevin Murphy, April 14, 2018, Domain Registrars

Wolfgang Reile, founder and former CEO of the registrar 101domain, has died, according to his former business partner and other sources.

He died unexpectedly at 67, April 6, according to Anthony Beltran, who took over the management of 101domain from Reile when Afilias acquired it back in 2015.

Born in Munich, Reile migrated to the US in the early 1990s and founded the registrar in 1999, Beltran said. He told DI:

He was a regular fixture in the ICANN scene, was a fun guy to be around, and was a natural storyteller (once you got used to the authentic German accent)

He was a friend and mentor to many, especially the staff at 101domain, and if you knew him and his straight-forward German fashion — was very opinionated, passionate, and yelling at you only meant he considered you a friend. He brought a passionate and dedicated energy that’s rare these days.

His international business background, including a spell at Disney in Asia, inspired 101domain’s strategy of providing access to the broadest possible range of ccTLDs and gTLDs, Beltran said.

The company currently has close to 140,000 gTLD domains under management and says it has tens of thousands of clients.

After the two men sold 101domain to Afilias, Reile stepped away from the industry to focus on family, travel and other businesses, Beltran said.

He is survived by his wife and three daughters. I gather his funeral will be held in San Diego, California, later today.