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Complaints about registrars dip in 2016

Kevin Murphy, February 2, 2017, Domain Registrars

There were slightly fewer complaints about domain name registrars in 2016, compared to 2015, according to newly published ICANN data, but complaints still run into the tens of thousands.

There were 43,156 complaints about registrars to ICANN Compliance in 2016, compared to 45,926 in 2015, according to the data (pdf). That’s a dip of about 6%.

The overall volume of complaints, and the dip, can be attributed to Whois.

About three quarters of the complaints directed at registrars in 2016 were for Whois inaccuracy — 32,292 complaints in total, down from 34,740 in 2015.

The number of complaints about gTLD registries was pretty much flat at 2,230, despite hundreds of new gTLDs being delegated during the year.

The vast majority of those gTLDs were dot-brands, however, with nowhere near the same kind of potential for abuse as generally available gTLDs.

The biggest cause for complaint against registries, representing about half the total, was the Zone File Access program. I’ve filed a few of these myself, against dot-brands that decide the ZFA policy doesn’t apply to them.

Formal, published breach notices were also down on the year, with 25 breaches, four suspensions and four terminations, compared to 32 breaches, six suspensions and eight terminations in 2015.

That’s the second consecutive year the number of breach notices was down.

GoDaddy revenue tops $1.8 billion in 2016

Kevin Murphy, January 27, 2017, Domain Registrars

GoDaddy today said that its revenue for 2016 topped $1.8 billion.

In a preliminary disclosure to the markets ahead of its formal February 15 earnings announcement, the registrar said that annual revenue for 2016 is expected to come in at $1.84 billion.

That compares to $1.6 billion in 2015.

Its fourth-quarter revenue is expected to be $486 million, up from $425 million in the fourth quarter of 2015.

GoDaddy said that at the end of the year it had $573 million in cash and equivalents and just over a $1 billion in long-term debt.

Celebrity cybersquatting to feature in Super Bowl commercial [video]

Kevin Murphy, January 25, 2017, Domain Registrars

Actor turned fashion designer John Malkovich is to feature in a Super Bowl commercial themed on cybersquatting.

The ad, for web host Squarespace, sees Malkovich complaining about the domain johnmalkovich.com belonging to some other guy by the same name.

In a roundabout way, this is also a commercial for Tucows, the newly-crowned second-largest domain registrar, which Squarespace acts as a reseller for.

Here’s the ad:

In reality, Malkovich owns the the .com of his full name. He sells clothes there.

However, he’s reportedly currently suing the owner of malkovich.com in France.

Clarification: a reader has asked me to clarify that using a domain in good faith isn’t strictly “cybersquatting”. Every DI reader already knows this, but apparently unless you spell it out every single time you risk incurring the anger of cretins.

Rightside sells eNom to Tucows for $83.5m

Kevin Murphy, January 23, 2017, Domain Registrars

Tucows is to become “the second largest registrar in the world” by acquiring eNom from Rightside, paying $83.5 million.

The deal will give Tucows another 14.5 million domains under management and 28,000 resellers, giving it a total of 29 million DUM and 40,000 resellers.

That DUM number, which appears to include ccTLDs, makes Tucows the undisputed volume leader in the reseller world and the second-largest registrar overall.

GoDaddy, the DUM leader, had about 55 million domains just in gTLDs at the last count.

Tucows CEO Elliot Noss told analysts that the deal, along with the April 2016 acquisition of Melbourne IT’s reseller business, were “individual opportunistic transactions”.

He said that Tucows will take its time integrating the two companies, but expects to realize cost savings (presumably read: job losses as duplicate administrative positions are eliminated) over 24 months.

The reseller APIs will not change, and Tucows will not migrate names over to its own existing ICANN accreditations. This could help with reseller retention.

For Rightside, the company said the spin-off will allow it to focus on vertical integration between its gTLD registry business and its consumer-facing registrar, Name.com.

Rightside had come in for a certain amount of high-profile investor criticism for its dogged focus on new gTLDs at the expense of its eNom and Name.com businesses.

Activist investor J Carlo Cannell, supported by fellow investor and Uniregistry CEO Frank Schilling, a year ago accused Rightside of putting too much emphasis on “garbage” new gTLDs instead of its more profitable registrar businesses.

Since then, Rightside has rebuffed separate offers for some or all of its gTLDs by rivals Donuts and XYZ.com.

Last June, it also announced plans to modernize eNom, which Cannell and others had accused of looking stale compared to its competitors.

Domain “slammer” making millions in Oz

Kevin Murphy, January 13, 2017, Domain Registrars

A company accused of the domain slamming scam made over $5 million over three years tricking companies into buying domains they didn’t need, it has been alleged.

Consumer Affairs Victoria, an Australian state government watchdog, has reportedly taken Domain Register Pty Ltd to court, claiming tens of thousands of people had been conned by fake invoices.

The company sent letters that appeared to be renewal notices for .com.au names, but were actually solicitations to buy the matching .com for AUD 249 ($186) a year, an Adelaide court reportedly heard.

Domain Register, which appears to be (or was) a reseller of TPP Wholesale, made AUD 7.7 million ($5.5 million) from 31,000 suckers between 2011 and 2014, according to local reports.

auDA, the .au domain registry, warned about the company as far back as 2011.

An example of a bogus invoice attributed to Domain Register can be found here.

It’s not clear whether the defendant in the case is linked to the Brandon Gray slamming outfit, which has also gone by names including Domain Registry of America, Domain Registry of Europe, Domain Registry of Canada and Domain Renewal Group.

Brandon Gray lost its ICANN accreditation in 2014.