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Donuts spends $50 million on new gTLD auctions

Donuts has revealed that its bill for new gTLD auctions has so far come to $50 million.

That, coupled with some other data released in a blog post last week, suggests that it’s spent over $2 million, on average, per gTLD.

CEO Paul Stahura wrote that the company has participated in “roughly” 50 auctions and that it’s won more than 50% of those it’s participated in.

“We’ve spent $50M to win those auctions to secure the resulting TLDs,” Stahura wrote.

According to my numbers, Donuts has been in 45 auctions and won 23. I may be missing a couple, but the numbers fit with Stahura’s. That would make an average spend of $2.17 million per gTLD.

That doesn’t mean the company has burnt through $50 million of its funding, of course.

In private gTLD auctions, the winner pays the losers. By losing at least 22 auctions, Donuts could just as easily be breaking even.

Not all of Donuts’ auctions have been organized by Applicant Auction. A few were settled via other means. Applicant Auction takes a 4% cut, which means its take so far is approaching $2 million.

Amazon snubs ICANN auction to win .coupon privately

Amazon has won the new gTLD .coupon, after Minds + Machines withdrew its application this week.

I understand that the two-way contention set was settled privately via a third party intermediary, possibly via some kind of auction, with M+M ultimately being paid off to withdraw its bid.

.coupon was the only ICANN-managed “auction of last resort” scheduled for July, following the $600,000 sale of .信息 last week.

The next batch of ICANN auctions is now not due to happen until August, unless of course ICANN rejigs its schedule in light of the .coupon settlement.

It’s not clear why Amazon has suddenly decided it prefers the idea of a private commercial settlement after all, but it appears to be good news for M+M, which will see the majority of the cash.

However, it could be related to the fact that .coupon, and dozens of other Amazon new gTLD applications, recently made the switch from being “closed generics” to more inclusive proposals.

Amazon had originally intended that itself and its subsidiaries would be the “only eligible registrants” for .coupon, but in March it changed the application, among many others.

Now, Amazon talks in vague terms about .coupon names being available to “eligible trusted third parties”, a term that doesn’t seem ready to define before the TLDs are actually delegated.

It seems to me, from Amazon’s revised applications, that .coupon and its other gTLDs will be locked down tight enough that they could wind up being effectively closed generics after all.

When Amazon publishes its first eligibility requirements document with ICANN, I expect members of the Governmental Advisory Committee will be watching closely.

.hotel avoids auction with CPE win

A new gTLD applicant backed by the hotel industry has won a Community Priority Evaluation, meaning it gets to automatically win the .hotel contention set without going to auction.

If the decision stands, no fewer than six rival applicants for the string — including the likes of Donuts, Radix, Famous Four and Minds + Machines — are going to have to withdraw their applications.

It’s a bit of a shocker.

The CPE winner is HOTEL Top-Level-Domain, which scored 15 out of 16 available points in the CPE. The minimum required to vanquish all foes is 14 points.

The company will have spent a fair bit of cash fighting the CPE, but nothing compared to the millions of dollars an auction for .hotel would be likely to fetch.

Crucially, where HOTEL prevailed was on the “Nexus” criterion — demonstrating a link between the string and the community supporting the application — where four points are available.

In the first four CPE results to come through, back in March, each applicant scored a 0 on Nexus and none scored more than 11 points overall.

Dot Registry, which failed four CPEs (.inc, .llc, .corp and .llp) this week, also repeatedly flunked on this count.

HOTEL, however, scored a 3.

Rival applicants such as Donuts and M+M had argued that HOTEL’s stated community failed to take into account smaller hoteliers, such as bed and breakfast owners.

But the CPE panelist decided that the application did not “substantially overreach”:

The string nexus closely describes the community, without overreaching substantially beyond the community. The string identifies the name of the core community members (i.e. hotels and associations representing hotels). However, the community also includes some entities that are related to hotels, such as hotel marketing associations that represent hotels and hotel chains and which may not be automatically associated with the gTLD. However, these entities are considered to comprise only a small part of the community. Therefore, the string identifies the community, but does not over-reach substantially beyond the community, as the general public will generally associate the string with the community as defined by the applicant.

There’s no formal appeals mechanism for CPE, but rival applicants could try their luck with more general ICANN procedures such as Requests for Reconsideration.

HOTEL Top-Level-Domain is a Luxembourg-based entity, founded in 2008 to apply for the gTLD, backed by about a dozen international hotelier associations, including the International Hotel and Restaurant Association.

The IHRA counts 50 major hotel chain brands among its members and claims to be officially recognized by the UN for its lobbying work on behalf of the hospitality industry.

HOTEL intends to keep the .hotel gTLD restricted “initially” to only hotels as defined in the international standard ISO 18513.

Registrants will be verified against hotel industry databases. This will happen post-registration, but before the domain name can be activated in the DNS.

In other words, unless you’re a member of the hotel industry, you won’t be getting to use a .hotel domain name. Domainers are apparently not wanted.

All .hotel names will also be checked a year from registration to ensure that they have a web site displaying relevant content. Redirection to other TLDs may be allowed.

I was so convinced that the CPE was designed in such a way that it would be failed by all the applicants which had applied for it, I bet $50 (to go to an applicant-nominated charity) that none would.

If HOTEL wants to let me know which charity they want the $50 to go to, I’ll get it donated forthwith. I’m just glad I didn’t offer to eat my underwear.

Uniform Rapid Suspension comes to .us

Neustar is to impose the Uniform Rapid Suspension policy on the .us ccTLD.

This means trademark owners are going to get a faster, cheaper way to get infringing .us domains taken down.

From July 1, all existing and new .us names will be subject to the policy.

Neustar’s calling it the usRS or .us Rapid Suspension service, but a blog post from the company confirms that it’s basically URS with a different name.

It will be administered by the National Arbitration Forum and cost mark owners from $375 per complaint, just like URS.

Neustar becomes the second ccTLD operator to support URS after PW Registry’s .pw, which implemented it from launch.

URS and usRS only permit domains to be suspended, not transferred to the mark owner, so there’s less chance of it being abused to reverse-hijack domains.

The burden of proof is also higher than UDRP — “clear and convincing evidence”.

Three more dot-brands dumped

Two companies have yanked three bids for dot-brand new gTLDs this week.

The German financial advisor Allfinanz Deutsche Vermögensberatung withdrew its applications for .allfinanzberatung and .allfinanzberater, which mean Allfinanz “advice” and “advisers”.

As well as being a bit of a mouthful, they both appear to be unnecessary given that the company also applied for .allfinanz by itself. That application has passed evaluation and is still active.

Meanwhile, in Finland, one of the world’s biggest elevator/escalator manufacturers, KONE, has withdrawn its equally unfathomable application for .kone.

Roughly 55 dot-brand applications have been withdrawn to date. Hundreds remain.