Two more dot-brand gTLD bids withdrawn
Two applications for “dot-brand” new gTLDs were pulled last week.
General Motors has withdrawn its bid for .gmc and Hartford Fire Insurance Company dropped .thehartford.
Both bids had been assigned priority numbers in ICANN’s prioritization draw last December, but neither applicant had purchased tickets, suggesting a lack of interest in operating the TLDs.
The withdrawal of .gmc at this time, less than two weeks before the publication by ICANN of string similarity evaluation results, is particularly interesting, and a little strategically puzzling.
There’s an active application by GMO Internet for .gmo, which could conceivably be ruled confusingly visually similar to .gmc.
By pulling out now, GM has lost its right to file a string similar challenge at a later date, and may have lost its ability to win .gmc in all future application rounds too (if .gmo is approved this time around, GMO could claim confusing similarity against future .gmc bids).
But GM still has active bids for the much more meaningful .chevrolet, .buick, .chevy and .cadillac, all of which also have prioritization numbers suggesting GM mainly applied defensively.
Hartford’s .thehartford was its only application.
The two withdrawals bring the total to date to 15, at least 10 of which were dot-brands. There are now 1,915 applications still in play.
The new gTLD consultants involved in the withdrawn bids — which one assumes were mostly filed defensively based on advice received — are a fairly mixed bunch so far.
ICANN seeks more power over new gTLD registries
When ICANN published a new draft of its basic Registry Agreement for wannabe new gTLD operators last week, much of the focus was on the new Public Interest Commitments mechanism, but a whole bunch of other big changes were also proposed.
ICANN has floated some quite significant amendments that would give it greater powers to approve mergers and acquisitions and more or less unilaterally change registries’ contracts in future.
Here’s my take on the biggest changes.
Regulating M&A activity
When a new gTLD registry business is acquired, ICANN wants to have greater rights to approve the transaction.
Changes to Section 7.5 would enable ICANN to check that the buyer and its ultimate parent company “meets the ICANN-adopted specification or policy on registry operator criteria then in effect”.
That would specifically include fresh background checks on the acquirer and its parent company.
For new gTLD applicants planning to flip their gTLDs in future, it means the buyers would be subject to the same scrutiny as the applicants themselves are today.
But — and it could turn out to be a big but — these checks would not be carried out if the registry’s buyer was already itself a compliant, ICANN-contracted gTLD registry.
In other words, it is going to be much easier for gTLD registries to acquire each other than it will be for outsiders to acquire them.
Had the rules been in place before now they would have complicated, for example, the acquisition of .pro by Hostway (not already a registry), but not its subsequent acquisition by Afilias (which already had .info).
Powers to change the contract
ICANN wants to grant itself the ability to make “Special Amendments” to all gTLD registry agreements in future without the consent of the registries.
Under the current version of the Registry Agreement, such amendments would need the approval of registries representing two-thirds of all registry fees paid to ICANN before they became law.
(It’s possible that this would give Verisign, as .com/.net registry, a de facto veto due to its market share).
But ICANN wants to change this rule to give its own board of directors the ability to impose amendments to the contract on registries, even if the registries vote against them.
The board would need a supermajority vote (66%, which pretty much every board vote receives anyway) and would need to be “justified by a substantial and compelling need”, quite a subjective threshold, in order to ignore the registries’ protests.
Special Amendments could not cover basic things like pricing or the definition of “registry services”.
ICANN, no doubt bruised by 18 months of laborious Registrar Accreditation Agreement renegotiations, says the change is “of fundamental importance and deserves careful attention given the long-term nature of registry agreements”.
But ICANN contracted parties are usually pretty reluctant to give ICANN more powers over their businesses, especially when it comes to sacrificing their right to renegotiate their contracts, so I can’t see these proposed changes to the Registry Agreement being accepted without hot debate.
Reserved Names
Section 2 of the agreement has been tweaked to make it a bit clearer under what circumstances registries are able to register names for their own use, or block them, and when they have to pay ICANN fees to do so.
The new language makes it clear that registries will not have to pay ICANN fees, and won’t have to use accredited registrars, for domains that are completely blocked from registration and are not used by the registry or anyone else.
By my reading, this could cover the kind of defensive blocking services that many applicants plan to offer to trademark owners, and other anti-abuse mechanisms, but not domains that registries plans to “reserve” for their own use.
At first glance, this might be seen as something that primarily affects dot-brands (which own all the second-level domains in their gTLDs) but most will probably be protected by the 50,000-domain threshold that must be passed before per-domain ICANN fees kick in.
Names that are held back for the registry to use would still have to be registered through a registrar and would incur ICANN fees, with a handful of named exceptions (nic.tld, www.tld, etc).
The new Registry Agreement also includes the final list of strings related to the Red Cross and International Olympic Committee that need to be reserved at the second level, along with a placeholder for reservations of strings related to other intergovernmental organizations.
Other stuff
There are quite a lot of proposed changes (pdf) to the agreement, which are currently open for public comment, and it’s possible I may have missed something equally important as the above.
I’m wondering, for example, about the possible impact of the changes to Specification 7 that seem to make registries responsible if their registrars do not uphold intellectual property rights protection mechanisms.
Also, do the changes to Spec 4 suggest that ICANN plans to outsource the job of Centralized Zone Data Access Provider? What’s the impact on applicants of the changes to Continuing Operations Instrument?
What have you spotted?
How .pw signed up more launch registrars than .xxx
Directi has signed up more registrars for its launch of the .pw top-level domain than .xxx managed a year ago, crediting pricing and “operating in new gTLD mode” for its progress.
Sandeep Ramchandani, business head of .pw at the company, said that over 90 registrars are currently accredited. That’s compared to the about 80 that ICM Registry launched .xxx with in December 2011.
The ccTLD for the tiny nation of Palau (pop. 20,956), .pw isn’t what you’d call an intrinsically exciting string, despite Directi’s attempt to rebrand it as “Professional Web”, making its relatively strong launch channel a bit of a head-scratcher.
The fact that Directi also runs registrar-in-a-box provider LogicBoxes has helped it add some registrars, no doubt.
But Ramchandani reckons a combination of low pricing, open registration policies, a focus on developing markets, and attractive registrar incentives, are helping the TLD gain channel traction.
“There’s going to be a massive shift in power from registries to registrars,” he said. “We’re basically operating .pw in the new gTLD mode.”
I had assumed that many registrars might have wanted to plug in to .pw in order to ease the need for integration work with Directi’s registry if/when the company launches the 30-odd gTLD it has applied for, but Ramchandani pointed out that this is not the case.
The company is using CentralNic as the back-end for .pw, but it’s signed up to use ARI Registry Services for its gTLDs.
“This is not something related to our gTLD business, because we’re working off a completely different platform,” Ramchandani said.
But with the imminent launch of new gTLDs, there’s recently been an increased industry focus on how registrars should be paying their registry fees. Typically, they prepay each TLD registry before they sell domains to registrants, tying up capital that they could be using for other purposes.
That model may work in a world of 1,700 registrars and 18 gTLDs, but it will become increasingly cumbersome and uneconomical for registrars as the number of TLDs approaches 1,000.
Some say it will make more sense for registries to scrap the prepay model, if they want to attract more registrars.
While Directi has stopped short of offering blanket post-pay to its registrars, Ramchandani said it will offer the model in some cases (unlike ICANN-contracted gTLDs, .pw has leeway to treat registrars differently).
“We will be asking for prepayment, but if a registrar is doing significant volume… If they feel they’re blocking a lot of capital and require a more convenient and flexible model we could offer post-payment,” he said. “But it’s not something we can offer every registrar.”
It’s also offering what it says is a more attractive way of handling promotional pricing.
Typically, if a gTLD registry runs a pricing promotion today it will rebate its registrars the difference between the promo price and the regular fee monthly or quarterly based on their sales volumes.
Ramchandani said the .pw model is more attractive to registrars: “With our programs, we will charge the discounted amount up-front, as opposed to charging the full amount and rebating later.”
“We will be coming up with some very, very aggressive promotions that will bring down the first-year registration cost a lot,” he added.
In contrast to SX Registry’s .sx (for the new nation of Sint Maarten), which is launching with prices of around $50 a year, Directi is selling .pw domains with a registry fee “sub-.com” before discounts.
Exact registry pricing for .pw domains has not been publicly disclosed, and Ramchandani declined to give out that information, but given current .com prices we can estimate a ceiling of about $7.85.
Directi reckons the low prices will drive volumes in developing markets, such as its native India.
The .pw launch is currently in the last few days of sunrise — which like so many other recent sunrise periods has been extended to cope with last-minute filings — during which trademark holders can defensively register their brands as domain names for a higher fee.
Not ever registrar is participating in sunrise; eNom, for example, which is .pw’s biggest registrar signing to date, does not plan to get involved until landrush.
Directi has something interesting planned for landrush, which begins next Monday, too.
According to Ramchandani, the registry will release and promote a list of unreserved “premium” domains that are available for registration during the landrush period.
This is slightly different to the standard registry practice of holding back premiums for auction. The names .pw will promote will not be “reserved”, they’ll just be examples of decent strings picked out of the available pool.
Each could technically be sold for the basic landrush fee if only one registrant attempts to register them. In practice, due to the promotion, there’s a higher likelihood of the domains going to auction, however.
“We’re making available a much larger set of premium names during landrush,” Ramchandani said. “We think it will help raise awareness to say: ‘Hey, these are the top picks.'”
“Since those names are generally reserved by the registry, we think it’s important to say: these are available,” he added.
The full list of registrars participating in .pw’s launch is available here.
Directi is promoting those registrars that have committed some marketing resources to the TLD, such as by creating dedicated landing pages.
It has not yet signed up Go Daddy, which is typically responsible for a quarter or more of all sales in gTLDs it sells, but Ramchandani said he expects more “top five” registrars to follow eNom in supporting .pw soon.
.web lawsuit thrown out of court, “too generic” to be a trademark
A California lawsuit that threatened to scupper all seven applications for the .web new gTLD has been thrown out.
The judge in Image Online Design v ICANN yesterday granted ICANN’s motion to dismiss the case, saying that IOD had no claim for breach of contract and, significantly, that “.web” is too generic to be a trademark.
Here’s the money quote:
This court agrees with ICANN that the mark .WEB used in relation to Internet registry services is generic and cannot enjoy trademark protection.
IOD applied for .web during ICANN’s proof-of-concept new gTLD round in 2000, but was not approved.
It sued ICANN last October, claiming breach of contract and trademark infringement and interference with its business.
The company has been running .web in an alternate DNS root, where hardly anyone uses it, since the 1990s.
Unfortunately for IOD, when it applied in 2000 it signed a document releasing ICANN from all legal liability in relation to the application, so the judge yesterday ruled that it could not sue for breach of contract.
The court also upheld the longstanding position of the US courts that top-level domains cannot be trademarks.
The US Patent & Trademark Office is of the view that TLDs do not indicate the source of goods or services; only the second-level domain does.
IOD had argued in court that, with the imminent introduction of dot-brands, the USPTO expects to modify its position. The judge in this case, Dean Pregerson, agreed in part, stating:
For instance, if ICANN were to introduce the TLD .APPLE, the user would arguably expect that that TLD is administered by Apple Inc. In such a case, the TLD might be considered a source indicator. If Sony tried to administer the TLD .APPLE, Apple Inc. would likely argue and possibly prevail on a trademark infringement claim.
This said, it appears to the court that today only the most famous of marks could have a source indicating function as a TLD. Some marks, such as .WEB, might remain generic even if they were famous, since .WEB in connection with registry services for the World Wide Web appears to refer to the service offered, rather than to only a particular producer’s registry service.
…
the mark .WEB is not protectable under traditional trademark analysis because it “seems to represent a genus of a type of website” and thus answers the question “What are you?” rather than “Who vouches for you?”
IOD’s other claims were also thrown out. Read the court’s order here.
The ruling means that a similar lawsuit filed by fellow 2000-round new gTLD applicant Name.Space, which is looking for an injunction against 189 gTLD applications, may be on shaky ground too.
Sunrise for .pw extended by a week
The sunrise period for the liberalizing ccTLD .pw has been extended by a week until February 15.
.PW Registry said that the extension comes due to demand; it will allow further time for trademark owners to defensively register their brands.
The company, owned by the Directi, has about 80 accredited registrars listed on its web site, many of them specialists in brand protection.
It also recently signed up some big mass-market registrars, including volume number two eNom. Market leader Go Daddy has yet to accredit, judging by the .PW web site.
While .pw is the ccTLD for Palau, the registry is positioning it as a competitor to .pro, meaning “Professional Web”. Unlike .pro, however, there are no registration restrictions.
Directi is an applicant for over 30 new gTLDs, almost all contested, so the .pw launch could in some respects be seen as a test run for its bigger TLDs, should it win any of its contention sets.
Verisign raises .name prices
Verisign plans to add 10% to the price of a .name domain name, judging by published correspondence.
In a price list sent to ICANN last week, the maximum registry fee for a one-year registration at the second level in .name will be set at $6.60 from August 1, 2013.
It appears to be the first such price increase in .name since the current registry contract was signed back in 2007. That contract set the fee at $6, with maximum hikes of 10% a year.
The new price list (pdf) is rather extensive, also covering products such as email forwarding and .name’s rather expensive wildcard-based defensive registrations.
Links to Verisign’s current pricing for these services are currently broken, so I can’t tell right now whether they’re going up, down, or staying the same.
It’s the second price increase Verisign has announced since it lost the right to hike the registry fee for .com last year. It is also raising .net prices later this year.
Jiwani quits as president of RegistryPro
Karim Jiwani, president of Afilias unit RegistryPro, has quit to explore new opportunities in the domain name business.
Jiwani, whom we profiled in depth recently, joined Afilias when it acquired RegistryPro, the .pro registry, a year ago, so the move is not entirely surprising.
Prior to RegistryPro, he headed up Afilias’ business in Europe.
“Mr. Jiwani plans to pursue other opportunities in the expanding domain industry,” Afilias said.
Google backing new gTLD trade association
New gTLD applicants and others have been meeting in Amsterdam this morning to discuss setting up a new trade association to promote new gTLDs and domain names in general.
The meeting, which was organized by Google, coincided with but was separate from an ICANN registry-registrar gathering in the city.
According to sources on the ground, the proposed trade association would be focused on raising consumer awareness about domain names and their benefits, outside of the ICANN community.
It’s a very early-stage idea, and today’s meeting — we hear — discussed things like possible funding sources and membership requirements.
More details are expected to emerge later today.
We also hear that the important topic of “universal acceptance” of TLDs has been discussed.
As we reported earlier in the week, there’s still not enough support from major software developers (including browser makers, whose job it is to connect users to web sites) for some of the newest TLDs.
Lack of awareness could cause technical problems as well as marketing ones, so a trade association — especially one back by Google’s headline-raising powers — may well be good for the industry.
Google is an applicant for almost 100 new gTLDs.
Afilias doubles .pro registrations in a year
Afilias says it has managed to grow .pro by 100% just one year after acquiring RegistryPro, despite an abuse crackdown and a tightening of registration policies.
RegistryPro president Karim Jiwani, speaking to DI earlier this month, said that .pro currently has roughly 160,000 domain names under management, compared to 120,000 at the time of the deal.
However, .pro lost about 40,000 domains — all Zip codes registered to former registry owner Hostway — six months ago. Excluding these names, domains leaped from 80,000 to 160,000.
Jiwani said that steep discounting and the on-boarding of a few big new registrars — notably Directi — are mostly responsible for the growth.
It’s all organic growth — regular registrations — he said, with none of the dubious type of big one-off deals that gTLD registries often rely on to show adoption.
The growth has come despite the fact that Afilias is cracking down on loopholes that have previously enabled registrars to sell .pro names to people without professional credentials.
At the time of the acquisition, registrars were accepting business licenses as credentials, but Jiwani said that this should no longer be possible.
“We’ve been trying to get to the registrars and let them now that a business license is not acceptable as a verification tool,” he said, “and we will continue to reach out to registrars and let them know.”
With some profession-specific new gTLDs (such as .doctor and .lawyer) likely to be approved by ICANN over the next year or two, Afilias wants it to be known that .pro has a broader customer base.
“What we did was try to get out to registrars and explain to them that you don’t just have to be a doctor or a lawyer to get a .pro domain,” Jiwani said.
“We explained to them that there are many, many professions in the world — from massage therapists to radiologists to tour guides,” he said. “It opened up the mindset of the registrars a little bit and they were promoting it to a wider array of professionals.”
Our full interview with Jiwani, in which he discusses the challenges of growing a restricted registry, fighting abuse, and how legacy gTLDs can compete with new gTLDs can be read on DI PRO:
Interview: RegistryPro president Karim Jiwani on the challenges of growing a restricted gTLD
Nominet sues domainer gripe site for defamation
Nominet has sued a fierce critic of the organization after apparently trying and failing to have his web site shut down.
The company, which runs .uk, said is has filed High Court defamation proceedings against Graeme Wingate and his company That Internet Limited, seeking an injunction against that.co.uk and avoid.co.uk.
The two sites have since last October last year carried a number of rambling allegations against Nominet and, more specifically, its CEO, Lesley Cowley.
Wingate, like many .uk domainers, is furious that Nominet plans to launch direct second-level registrations under .uk, giving trademark owners sunrise priority over owners of matching .co.uk domains.
While that.co.uk focuses mainly on this Direct.uk initiative, avoid.co.uk takes broader swipes at Cowley specifically, stating:
the idea behind Avoid.co.uk is to focus solely on the leadership of Ms Lesley Cowley, Chief Executive of Nominet and her immediate removal as CEO on the grounds of dishonestly, transparency and incompetence.
While not spelling out exactly what content it considers defamatory, Nominet said:
While we are entirely comfortable with legitimate protest about Nominet’s actions or proposals, there are assertions about Nominet and our CEO published on the avoid.co.uk and that.co.uk sites that are untrue and defamatory.
The Board is united in its view that harassment and victimisation of our staff is unacceptable, and that Nominet should take appropriate action to support staff and protect our reputation.
According to avoid.co.uk, Nominet tried to get the sites taken down by their web hosts on at least two separate occasions since November. It’s moved to a Chinese host in an attempt to avoid these takedown attempts.
The antagonism between some domainers and Cowley is long-running, rooted in a clash between domainer members of its board of directors and senior executives in 2008.
As I reported for The Register last August, evidence emerged during an employment tribunal case with a “whistleblower”, former policy chief Emily Taylor, that Nominet may have secret colluded with the UK government in order to architect a reform process that would give domainers substantially less power over the company.
It later emerged that Nominet and UK civil servants communicated via private email addresses during this process, apparently in order to dodge Freedom Of Information Act requests.
A subsequent internal investigation by Nominent chair Baroness Rennie Fritchie last November concluded that “Nominet did not manufacture Government concern” and that the private emails were a “misguided attempt to ensure that open and honest conversations… could take place” rather than attempts to avoid FOI.
Recent Comments