ICANN throws lifeline to flopping new gTLDs

New gTLD registries with lower than expected sales will now be able to reduce the amount of their “failure bond”.
ICANN has introduced a new Continued Operations Instrument Amendment Service, which will enable registries to raise or lower the amount of their COI depending on how business is going.
A COI is a letter of credit or cash in escrow that registries must secure in order to fund three years of emergency operations in the event that their businesses fail.
The amount of the COI is calculated from sales projection and ranges from $18,000 (for under 10,000 names) to $300,000 (over 250,000 names).
Let’s face it, at the moment the amendment service must surely be targeted largely at companies that over-estimated their future sales and secured a COI much larger than they needed.
If they’ve escrowed cash, the new service will allow some of that money to be freed up to spend on more useful activities.
ICANN said that if it determines that a registry has under-projected its sales, it will be able to refer it to the new service in order for the COI to be increased.
Currently, only four new gTLDs have over 250,000 names under management, judging by zone files.

Retail sales see CentralNic over double revenue

CentralNic saw a huge 171% increase in revenue and a tripling of billings in the first half of the year, based on its newly acquired retail business and the sale of premium names.
For the six months to the end of June, the London-based firm saw revenue of £4.4 million ($6.8 million) compared to £1.6 million ($2.5 million) a year earlier.
It moved into profit during the period, netting £287,000 ($442,000) after tax compared to a loss of £599,000 in the 2014 period.
CentralNic broke down its numbers into segments, showing that its new business areas were responsible for most of the growth, while the core registry business was relatively slow.
Registry was up 13% to £1.6 million ($2.5 million).
The new registrar business, which is lead by its $7.5 million Internet.bs acquisition, leaped from £180,000 to £1.8 million (£2.8 million), while its premium name sales business was £1.1 million compared to a negligible £50,000 a year earlier.
The company noted in a statement that Google was the first “megabrand” to use a .xyz domain name and expressed optimism that this may increase awareness of new gTLDs in future.
CentralNic is the second-largest new gTLD back-end, as measured by registration volume, largely due to its .xyz contract.
It also acts as back-end for .online, which left the blocks very quickly earlier this month, racking up over 57,000 names so far.

Neustar shoots the corpse of .kids.us

The ill-conceived, barely used .kids.us domain is to stay dead, Neustar confirmed last night.
The .us registry operator said that its Stakeholder Council met August 17 and:

carefully considered the report on the kids.us domain and unanimously recommended that the requirement be suspended for the life of the .us contract.

Neustar had been forced into making a call about reintroducing .kids.us by its current .us contract, which it signed in March 2014.
One October 2014 expert report and May 2015 comment period later, and the decision has been made to keep the idea suspended.
.kids.us was introduced via US legislation as a way to make politicians look like they were doing something create a friendly space for the under 13s.
But the zone wound up with reg numbers that make new gTLDs look popular, so the decision was made in 2012 to kill it off.
Neustar’s .us contract lasts another two to four years, and that’s how long the suspension will last, at least.

XYZ fighting red tape to serve Chinese customers

XYZ.com is trying to become one of the first non-Chinese gTLD registries to be able to sell unhindered into the Chinese market, in the face of Draconian government regulations.
The company has filed a Registry Services Evaluation Process request with ICANN — the first of its kind — that would let it use a gateway service, based in China, to comply with strict local laws on registries, registrars and registrants.
The Ministry of Industry and Information Technology regulations have been in place for a decade, but it’s only in the last year or so, in light of the new gTLD program, that China has been strictly enforcing them.
Anyone in China can buy a domain, but you need a license if you want to put up a web site, according to Gavin Brown, CTO of .xyz back-end CentralNic. Registrants also need to have their Whois information verified and validated, he said.
The problem for Chinese residents today is if they buy a domain in a TLD that is not licensed by the government, they won’t be able to obtain a license to host a web site on that domain.
The .xyz gTLD is believed to have a few hundred thousand domains registered via Chinese registrars, a substantial portion of its total.
There’s a worry that China could demand the deletion of these names and others, as it has previously in .cn, if the proper licenses have not been obtained.
Naturally, the inability to use these domains has led to a lot of pissed-off registrants. XYZ says has been receiving complaints from its registrars in the country, which in turn have been receiving complaints from their customers.
XYZ proposes to fix the problem by using a gateway service provided by ZDNS, a DNS provider based in mainland China.
Registrars in the country would maintain a separate EPP connection to ZDNS, which would act as a proxy to CentralNic’s UK-based primary EPP system.
ZDNS, which is prominently promoting its gateway service on its web site, would handle the Whois verification and also proxy the .xyz Whois lookup service, but only as it pertains to Chinese registrants and queries originating in China.
Data on non-Chinese registrants would continue to be housed with CentralNic.
ZDNS would also prevent Chinese registrants registering domains containing strings that have been banned by the government.
XYZ’s RSEP request (pdf) is currently undergoing its technical/competition review with ICANN. Assuming it passes, it would be exposed to public comment before being approved.
The RSEP states: “we are confident that the entire Internet user base of China would endorse this service and that Chinese registrars would strongly endorse this service.”
It’s the first such request to ICANN, suggesting that an awful lot of gTLDs are still not compliant with the Chinese regulations.
As of April, only 14 TLDs — all managed by China-based companies — were licensed to operate in China.

Architelos: shadiest new gTLD is only 10% shady

Disputing the recent Blue Coat report into “shady” new gTLDs, domain security firm Architelos says that the shadiest namespace is just under 10% shady.
That’s a far cry from Blue Coat’s claim earlier this week that nine new gTLDs are 95% to 100% abusive.
Architelos shared with DI a few data points from its NameSentry service today.
NameSentry uses a metric the company calls NQI, for Namespace Quality Index, to rank TLDs by their abuse levels. NQI is basically a normalized count of abusive domains per million registered names.
According to Architelos CEO Alexa Raad, the new gTLD with the highest NQI at the end of June was .work.
Today’s NameSentry data shows that .work has a tad under 6,900 abusive domains — almost all domains found in spam, garnished with just one suspected malware site — which works out to just under 10% of the total number of domains in its zone file.
That number is pretty high — one in 10 is not a figure you want haunting your registry — but it’s a far cry from the 98.2% that Blue Coat published earlier this week.
Looking at the numbers for .science, which has over 324,000 names in its zone and 15,671 dodgy domains in NameSentry, you get a shadiness factor of 4.8%. Again, that’s a light year away from the 99.35% number published by Blue Coat.
Raad also shared data showing that hundreds of .work and .science domains are delisted from abuse feeds every day, suggesting that the registries are engaged in long games of whack-a-mole with spammers.
Blue Coat based its numbers on a sampling of 75 million attempted domain visits by its customers — whether or not they were valid domains.
Architelos, on the other hand, takes raw data feeds from numerous sources (such as SpamHaus and SURBL) and validates that the domains do actually appear in the TLD’s zone. There’s no requirement for the domain to have been visited by a customer.
In my view, that makes the NameSentry numbers a more realistic measurement of how dirty some of these new gTLDs are.

Two .cpa applicants lose CPE

Two applicants that applied for the gTLD .cpa as a “Community” have lost their Community Priority Evaluations.
The American Institute of Certified Public Accountants scored 11 points out of 16, CPA Australia scored 12.
While relatively high scores for CPE, they both failed to pass the 14-point winning threshold.
The string, which stands for “certified public accountant”, is contested by a total of six applicants, which will now have to fight it out at auction.
Both applicants failed to score any of the four available points on the “nexus” criteria, which require the applicant-defined community to closely match the community described by the string.
In both cases, the CPE panel noted that the applicant wanted to restrict .cpa to members of their organizations, which only represents a subset of CPAs in the world.
The decisions can be found here.
Only two CPEs now remain unresolved — the reevaluation of DotGay’s .gay, and DotMusic’s .music. The status of .med and .kids is currently unknown.

.cam given the nod as Rightside wins confusion appeal

Rightside’s application for .cam will be un-rejected after the company beat Verisign in an appeal against a 2013 String Confusion Objection decision.
That’s right, .cam is officially no longer too confusingly similar to .com.
In a just-published August 26 decision (pdf) a three-person International Centre for Dispute Resolution panel overruled the original SCO panelist’s decision.
The new panel wrote:

Based on the average, reasonable Internet’s user’s experience, and the importance of search engines, in the [Final Review Panel]’s view, confusion, if any, between .COM and .CAM is highly likely to be fleeting. While a fleeting association may create some “possibility of confusion” or evoke an “association in the sense that the string brings another string to mind,” both such reactions are insufficient under the ICANN SCO standard to support a finding that confusion is probable.

It’s not quite as clear-cut a ruling as the .shop versus .通販 ruling last week, relying on the appeals panel essentially just disagreeing with some of the finer points of the original panel’s interpretation of the evidence.
Relating to one piece of evidence, the appeals panel found that the original panelist “improperly shifted the burden of proof” to Rightside to show that .cam was intended for camera-related uses.
Rightside was one of two applicants given the opportunity to appeal its SCO decision by ICANN last year, largely because two other .cam applicants managed to pass their Verisign objections with flying colors, creating obvious inconsistency.
Taryn Naidu, Rightside’s CEO, said in a statement:

We always felt strongly that the first panel’s decision was seriously flawed. How can .CAM in one application be different from the .CAM in another application when evaluated on the basis of string similarity? The fact is, it can’t.

It’s always struck me as unfair that Verisign did not get the chance to appeal the two SCOs it lost, given that the panelist in both cases was the same guy using the same thought processes.
The question now is: is the appeals panel correct?
I suppose we’ll find out after .cam goes on sale and unscrupulous domainers attempt to sell .cam names for inflated prices, hoping their would-be buyers don’t notice the difference.
The other two .cam applicants are AC Webconnecting and Famous Four Media. All three will now go to auction.

Another new gTLD goes to a closed generic applicant

Dish DBS has won the contention set for the .data gTLD, even though its proposed business model has been banned by ICANN.
Competing applicants Donuts and Minds + Machines have both withdrawn their competing applications.
It’s the second string this week to go to a “closed generic” applicant, that wants to keep all the domains in the TLD to itself even though it’s not a dot-brand.
Earlier this week, the company behind the Food Network TV show won .food.
Most companies that applied for closed generics changed their minds after the Governmental Advisory Committee issued advice against the model, but Dish was one of the ones that stuck to its original plans.
In June, ICANN ruled that .data, .food and a few others could either withdraw their bids, drop their exclusivity plans, or have their applications frozen until the next new gTLD round.
As withdrawal now seems to be off the cards, it seem that .data will not see the light of day for some time to come.

Third ICM windfall due as .sex hits sunrise

If we’ve learned one thing about new gTLD sunrise periods, it’s that adult-oriented TLDs sell quite well.
ICM Registry started its third such period yesterday, as .sex went into its “TMCH Sunrise” phase.
Until October 1, any company with a trademark in the Trademark Clearinghouse will be able to buy a matching .sex domain on a first-come, first-served basis.
From October 5 to October 30, anyone with a .xxx domain name or current .xxx “Sunrise B” block will be able to buy the matching .sex during the Domain Matching phase.
Anyone who buys a .xxx before October 1 will be able to participate in this second sunrise.
ICM reported in May that .porn received 3,995 sunrise registrations while .adult sold 3,902 — both via a combination of TMCH Sunrise sales and blocks.
At ICM’s prices, that’s enough to comfortably cover its ICANN application fees.
Every other new gTLD with the exception of .sucks has sold fewer than 1,000 sunrise names.
General availability for .sex starts November 4.

Laughable security report labels Google Registry “shady”

A report by security company Blue Coat Systems today denounced new gTLDs as “shady” and recommended organizations think about blocking the “shadiest” ones entirely.
The study classified “tens of millions” of domains requested by users of its censorware service according to whether they had content that posed a security risk.
It found that nine new gTLDs and one ccTLD scored over 95% — that is, 95% of the domains in those TLDs requested by its customers were potentially unsafe.
But its numbers, I believe, are bollocks.
My main reason for this belief? Blue Coat has ranked .zip as “100% shady”.
This means that, according to the company, every single .zip domain its customers have visited is either spam, malware, a scam, a botnet, suspicious, phishing or potentially unwanted software.
The problem is that the entire .zip zone file currently consists of precisely one (1) domain.
That domain is nic.zip, and it belongs to Google Registry. This is a pre-launch TLD.
As far as I can tell, Google Registry is not involved in distributing malware, spam, phishing, etc.
Nevertheless, Blue Coat said network administrators should “consider blocking traffic” to .zip and other “shady” TLDs.
The top 10 list of the worst TLDs includes .country, .kim, .cricket, .science, .work, .party, .gq (Equatorial Guinea) and .link.
That’s a mixture of Afilias, Minds + Machines, Famous Four and Uniregistry. The common factor is the low cost of registration.
The full Blue Coat report, which can be downloaded here, does not give any of the real underlying numbers for its assertions.
For example, it ranks .review, one of Famous Four Media’s portfolio, as “100% shady” but does not reveal how many domains that relates to.
If its customers have only visited 10 .review domains, and all of those were dodgy, that would equate to a 100% score, even though .review has over 45,000 domains in its zone.
At the other end of the table, .london’s score of 1.85% could have been positively affected by Blue Coat customers visiting a broader selection of .london domains.
The company claims that the report is based on “tens of millions” of domains, but I’d hazard a guess that most of those are in .com and other more established TLDs.
That’s not to say that there’s no truth in Blue Coat’s broader assertion that a lot of new gTLDs are full of garbage — do a Google search for .review sites and see if you can find anything worth looking at — but I don’t think its numbers are worth the pixels they’re written with.