Delta variant cranks up Aussie domain regs in Q3

Australia’s ccTLD had a growth spurt in the third quarter, driven by pandemic lockdown rules.

Local registry auDA today reported that it took 171,846 new domain creates in Q3, up 22% on Q2. There were over 60,500 new regs in July, making it .au’s second-biggest sales month of all time.

auDA said in its quarterly report (pdf):

This increase took place at a time when COVID-19 restrictions were re-introduced in several states, and followed a levelling out of demand and seasonal dip over Easter in Q2. However, Q3 registrations are only slightly below the same period in 2020, which experienced a historic peak in new domain names created, driven by COVID-19.

Such lockdown bumps were experienced by many registries in 2020, as bricks-and-mortar businesses rushed to get an online presence to continue functioning while stores and venues were closed.

The delta variant of Covid-19 started worrying Australia in June, leading to lockdown rules in major cities that lasted most or all of July. The country has had a relatively low incidence of the virus, but has taken a hard line on restrictions.

At the end of September, .au registrations were up 5% at 3,386,186 names, auDA said. The .com.au level names were up 6% but .net.au was down 1.5%.

Next March, Australia will follow in the footsteps of some other ccTLDs and make second-level .au domains available for the first time.

.music goes live, plots 2022 launch

.music has become the latest new gTLD to join the internet, but it seems unlikely to hit the market before the 10th anniversary of the 2012 ICANN application period.

The TLD was added to the DNS root at the end of October, with the first domain, the obligatory nic.music, going live a few days later.

The registry, Cyprus-based DotMusic, said in a press release that it plans to launch the gTLD next year.

.music was one of the most heavily contested gTLDs from the 2012 application round, with eight total applicants.

It was one of two Community applications, which promised a more controlled, restricted namespace in exchange for a smoother ride through the ICANN approval and contention resolution processes.

But it failed to win its Community Priority Evaluation, leading to years of appeals and ICANN reviews.

The contention set was finally resolved in 2019, apparently via auction, with DotMusic prevailing against heavy-hitters including Amazon and Google.

But the victorious registry was slow out of the blocks after that, taking almost two years to negotiate its registry agreement with ICANN.

It’s still going to be a restricted-community space when it finally launches, which makes its success anything but assured, regardless of the unquestionable strength of its string.

Sadly, while DotMusic CEO Constantine Roussos looked every bit the part of the hip young rocker when the .music application was first filed, showing up everywhere in a sports car, cool haircut, and designer skinny jeans, today he lives in a senior-care home, drives a mobility scooter, and needs to be changed hourly.

Architect of Nominet boardroom bloodbath and Tucows backer win director seats

UK registry Nominet has announced the winners of its non-executive director election, with Simon Blackler securing a runaway victory. Ashley La Bolle of Tucows was also elected, with a strong share of the votes.

Blackler is the architect of the PublicBenefit.uk campaign, which was behind a boardroom bloodbath earlier this year, and La Bolle is director of domains at Tucows, the biggest registrar name to support that campaign.

According to Nominet, Blackler secured 1,285,370 of the 2,558,650 votes in the first-preference round of voting, a smidge over 50%. La Bolle got 750,447 votes, 29.3%, at the same stage, picking up the extra she needed after votes were transferred.

The other four candidates all received 7% or less of the votes in the first-preference ballot.

Voting was based on how many domain names members control, capped at 3% to avoid too much capture by the larger registrars.

Nominet said that turnout was 24.3% — 553 of the 2,276 eligible voters actually cast a ballot.

Blackler and La Bolle will join Nominet’s board at its next Annual General Meeting, which happens this Thursday.

They replace domain investor David Thornton, who had stood for reelection but received less than 6% of the first-round votes, and GoDaddy policy veep James Bladel, who did not stand.

Blackler, who runs the registrar Krystal Hosting, started the PublicBenefit.uk campaign earlier this year in protest at what was seen as Nominet’s unresponsiveness and lack of transparency towards its members.

He rallied a crowd of members upset with what they saw as the company’s diversification into non-core businesses, excessive director and executive compensation, and diminishing devotion to supporting public-benefit causes.

The campaign resulted in the forced resignation of the CEO, the ouster of the chair and almost half the directors, and a renewed focus on the .uk registry and charitable causes under a new chair.

Tucows was the biggest-name registrar to back the campaign, with La Bolle repeatedly blogging about how Nominet needed to be more transparent and engage better with its members.

“Humbled by the amount of support and looking forward to improving Nominet for ALL,” Blackler tweeted following the results announcement.

“I’m truly honoured to be appointed to Nominet’s Board as an NED and am grateful for the support and trust from my peers,” La Bolle said via email. “As well-stated throughout my campaign, I am committed to helping Nominet refocus on its core mandate and re-engage its members to better serve our entire community.”

Virgin territory as GoDaddy pushes $30 million porn domain renewals

Brand owners big and small are in for a potential surprise December 1, as their 10-year-old .xxx domain blocks expire and registrars bill their customers to convert them into a new annually-renewing GoDaddy service.

GoDaddy confirmed to DI today that it will “auto-convert” the old Sunrise B blocks, first sold by ICM Registry in 2011, to its new AdultBlock service, which provides essentially the same functionality but across four TLDs rather than one.

Tony Kirsch, head of professional services at GoDaddy Registry, said:

Registrars have been contacting all the Sunrise B owners and advising them that as of December 1 they will be grandfathered and automatically converted into an AdultBlock service, but they have a choice to expire that or stop that happening prior to December 1.

And if it is that they don’t do that before December 1, we’ll still give them a grace period of at least 45 days. If that happens they can then, as you’d normally do, just turn around to the registrar and say “We don’t want that” and we will of course refund the money.

This means that GoDaddy, which acquired .xxx and ICM from MMX earlier this year, is billing its .xxx registrar partners to convert and renew what could be as many as 81,000 Sunrise B blocks.

While the registry fee for AdultBlock has not been published, retail registrars I checked have priced the service at $370 to $400 per year, which we can probably assume is low-end pricing. Most .xxx domains are sold via the specialist brand-protection registrars like CSC and Markmonitor, which sometimes have more complex pricing.

So that’s something in the ballpark of $30 million worth of renewal invoices being sent out in the coming weeks, for something in many cases brand owners may have institutionally forgot about.

Kirsch said that AdultBlock was introduced by MMX about 18 months ago and that registrars have been preparing their customers for the Sunrise B expiration for some time.

Sunrise B was a program, unprecedented in the industry at the time, whereby trademark owners could pay a one-off fee — ICM charged its registrars about $160 wholesale — to have their brands removed from the available pool.

The domains exist in the .xxx zone file and resolve to a black page bearing the words “This domain has been reserved from registration”, but they’re not registered and usable like normal defensive or sunrise registrations would be.

Companies got to avoid not only the potential embarrassment of being porn-squatted, but also the hassle of having to explain to a tabloid reporter why they “owned” the .xxx domain in question.

The term of the Sunrise B block was 10 years. ICM told me at the time that this was because the company’s initial registry contract with ICANN only lasted for 10 years, so it was legally unable to sell longer-term blocks, but I’ve never been sure how much I buy that explanation.

Regardless, that 10 year period comes to an end in two weeks.

Because Sunrise B was unprecedented, this first renewal phase is also unprecedented. We’re in virgin territory (pun, of course, very much intended) here.

Will we see the industry’s first public “block junk drop”?

There are a number of reasons to believe trademark owners, assuming they don’t just blindly pay their registrar’s invoices, would choose to allow their blocks to expire or to ask for a refund after the fact.

First, the price has gone up — a lot.

While ICM charged $160 for a 10-year Sunrise B block (maybe marked up by registrars to a few hundred bucks) brand owners can expect to pay something like $3,000 retail for a single string blocked for 10 years.

But buyers do get a bit more bang for their buck. Unlike Sunrise B, AdultBlock also blocks the trademark in three additional GoDaddy-owned TLDs — .porn, .sex and .adult — as standard.

Kirsch said he expects buyers to see a 40% to 50% saving compared to the cost of defensively registering each domain individually.

Second, the appetite for defensive registrations has waned over the past 10 years, with trademark owners employing more nuanced approaches to brand protection, largely due to the flood of new gTLDs since 2013.

When .adult, .sex and .porn launched, without the possibility of Sunrise B blocks, they got about 2,000 regular sunrise registrations each. And that’s extraordinarily high — for most new gTLDs a couple hundred was a good turnout.

Third, the .xxx launch attracted a whole lot of controversy and overreaction, and the .xxx zone file today contains a lot of Sunrise B crap.

When I scrolled a little through the zone, cherry-picking silly-looking blocks in 2019, I found these examples:

100percentwholewheatthatkidslovetoeat.xxx, 101waystoleaveagameshow.xxx, 1firstnationalmergersandacquisitions.xxx, 1stchoiceliquorsuperstore.xxx, 2bupushingalltherightbuttons.xxx, 247claimsservicethesupportyouneed30minutesguaranteed.xxx, 3pathpowerdeliverysystembypioneermagneticsinc.xxx

Is it worth $400 a year to block the trademark “100 Percent Whole Wheat That Kids Love To Eat”? Is there any real danger of a cybersquatter going after that particular brand (apart from the fact that I’ve now written about it twice)?

Kirsch said a “small percentage” of Sunrise B owners have already said they don’t want to convert, but given that the rest will auto-convert, and that the registrars are doing all the customer-facing stuff, the company has limited visibility into likely uptake.

Brian King, director of policy at MarkMonitor, told us: “We generally encourage our clients to consider blocks. They can be cost effective and a lot of times clients would rather have their brand be unavailable without having to register in TLDs where they don’t want to own domain registrations for any number of reasons.”

One reason brand owners may want to consider converting to AdultBlock — it’s rumored that GoDaddy will be relaxing its eligibility criteria for .xxx next year, removing the requirement for registrants to have a nexus to the porn industry.

It’s always been kind of a bullshit rule, basically a hack to allow ICM to run a “sponsored” TLD under ICANN’s rules from the 2003 application round, but doing away with it would potentially make it easier for cybersquatters to get their hands on .xxx domains.

CSC told customers in a recent webinar that the rules are likely to be changed next year, increasing the risk of cybersquatting.

There’s some circumstantial evidence to suggest that CSC might be on to something — pretty much every “sponsored” gTLD from the same 2003 application round as .xxx has relaxed their reg rules to some extent, sometimes when their contracts come up for renewal and ICANN tries to normalize them with the text of the standard 2012-round agreement.

And GoDaddy’s .xxx contract with ICANN is being renegotiated right now. It was due to expire in March, but it was extended in February until December 15, a little under a month from now. We may soon see ICANN open up the new text for public comment.

Kirsch, who’s not part of the negotiations, could not confirm that the eligibility relaxation is going to happen or that it’s something GoDaddy is pushing for.

If it were to happen, it wouldn’t be for some time, and it wouldn’t necessarily impact on the December 1 deadline for Sunrise B conversions, which is going to be interesting to watch in its own right.

“There are registrations that are protecting people’s trademarks that are expiring and our primary objective here is to ensure that that protection continues, and that’s what we’ll do,” GoDaddy’s Kirsch said.

“If we just let them expire, it would create a lot of opportunity for brand infringement. Faced with that choice, our primary objective is to protect trademark owners,” he said.

Almost 300,000 UK .eu regs disappeared because of Brexit

UK-registered .eu domains dropped by about 43,000 in the third quarter, as the full impact of Brexit kicked in.

There were 3,714 domains registered from the UK at the end of the third quarter, according to EURid’s latest statistics.

This compares to 46,523 at the end of the second quarter, 150,024 a month before Brexit at the end of 2019, and 294,436 at the end of the second quarter 2016, just before the Brexit referendum.

UK-based residents that hold EU or EEA citizenship can still own .eu domains, and these are counted as a subset of the 16,676 “Eligibility based on citizenship” domains EURid started reporting this year.

Other .eu names previously owned in the UK will have been transferred to EU-based entities.

EURid said that at the end of September it had 3,705,728 .eu, .ею and .ευ domains in total, down quarterly from 3,731,298 and up from 3,576,302 a year earlier.

The total is still substantially down on the pre-Brexit quarterly peak of 3,907,406, at the end of 2014.

The fastest-growing territory was Latvia, at 6.8%, but that’s from a pretty low base and not really enough to counterbalance the UK losses.

The UK-registered names were given Withdrawn status at the end of June and the former registrants have until the end of the year to request reinstatement directly from EURid, before the names are batch-released back into the available pool.

CSC (not that one) scraps its dot-brand

A company formerly known as CSC has terminated its dot-brand gTLD contract four years after discontinuing the company name.

Computer Sciences Corporation, now known as DXC Technology, has told ICANN it no longer wishes to operate .csc, saying:

This gTLD was secured right before the merger of Computer Sciences Corporation (CSC) and Hewlett Packard Enterprise Services merged to form DXC Technology. Consequently, the gTLD has never been used and shutting it down will have no effect on internal or external stakeholders.

The CSC-HP merger and name changed happened in 2017.

At one point, nic.csc bore a notice saying it was the “registry for the .dxc top-level domain”, which was a cool trick given .dxc doesn’t exist and has never existed.

This CSC is different from the corporate registrar of the same abbreviation, where the CSC stands for Corporation Service Company. There’s a reasonable chance that this CSC will be able to apply for .csc in the next application round.

Verisign boss talks .web launch, timing and pricing

Verisign hasn’t fully won .web yet, but it expects to soon and is talking in general terms about what the it might look like live.

CEO Jim Bidzos yesterday told analysts that he expects the Independent Review Process panel currently considering an appeal by rival applicant Afilias to deliver its final verdict before the end of the year. No hearings are scheduled.

Afilias claims Verisign and its secret proxy, Nu Dot Co, cheated, and that ICANN broke its own rules, in the 2016 auction that saw Verisign promise to pay $135 million for .web. Verisign thinks the claims are rubbish.

Bidzos told analysts, wanting to known when they can put .web revenue into the models, that it while it’s a “bit early to speculate” when the company will launch .web, it will likely happen a “couple of quarters from delegation”.

On pricing, he noted that .web does not have the same price controls as .com and .net:

.web is, of course, different from .com and net and that it’s not a price controlled TLD… We do have flexibility with it that we don’t have with other TLDs, and premiums are available. Other sorts of options are available.

But will the company put its marketing muscle behind .web? Many people, myself included, have said that Verisign’s interest in the gTLD is more about keeping it out of its rivals hands. Bidzos said:

There certainly will be some sort of marketing launch that will occur, but I just think it’s too early to really talk about what that would look like and what the expense impact will be. But we certainly intend to market and promote .web. Our plan, our desire, as we’ve stated — and I’ll say again — is to offer our customers more choice and to make .web a very successful TLD.

His comments came as Verisign reported its third-quarter financial results.

The company reported revenue up 5.1% at $334 million and net income of $157 million compared to $171 million a year ago.

It had 172.1 million .com and .net domains in its registry at the end of the quarter, up 1.48 million sequentially and a 5.1% increase on the year-ago number.

First UNR gTLD buyer outs itself

A company from outside the domain industry with no revenue last year and doubts about its survival has announced itself as the buyer of one of UNR’s gTLDs, which were sold off earlier this year.

Digital Asset Monetary Network Inc issued a press release stating that it has “acquired a TLD”. It didn’t name the TLD, or the seller, but gave enough information for us to narrow it down to UNR:

The gTLD acquired by DigitalAMN was originally slated to be part of an auction recently conducted by a large retail registry and was mistakenly listed with the registry’s available inventory for auction. However, the Company and its domain industry partners were able to secure this digital asset completely outside of that auction.

UNR had listed these 23 gTLDs for sale at the April 28 auction: .audio, .blackfriday, .christmas, .click, .country, .diet, .flowers, .game, guitars, .help, .hiphop, .hiv, .hosting, .juegos, .link, .llp, .lol, .mom, .photo, .pics, .property, .sexy and .tattoo.

It’s not clear which of these was “mistakenly listed” and bought separately by DigitalAMN. When UNR announced the closure of the auction, it only said that it had sold “20+” of the names in its portfolio, though the company later confirmed to DI that all 23 had been sold.

The identities of the buyers, which may number as many as 17, have not yet been revealed. All 23 contracts appear to be still subject to ICANN’s regulatory scrutiny, even six months after the auction.

In a press release today, DigitalAMN CEO Ajene Watson said:

We believe this venture continues to support our ethos and mantra. Especially given the name of this gTLD, what it may represent culturally to a multi-billion-dollar global marketplace, and the anticipated financial literacy initiatives that could potentially be born from it.

Which strings does “financial literacy initiatives” suggest? .llp? .property? Your guess is as good as mine.

The press release states that DigitalAMN has two domain industry partners in its new venture. Again, they’re not named, but we can probably assume one’s a back-end registry provider.

DigitalAMN is listed on the over-the-counter markets in the US. It reported $145,000 of consulting revenue in the six months to June 30, but was burning cash and said it needed another $2 million to survive the next 12 months.

It calls itself a Public Accelerator Incubator (PAI) company, which appears to be a term of its own invention. It says it “operates an ecosystem that fosters growth opportunities for entrepreneurs looking to build their businesses”.

This seems to mean it tries to get start-ups investment through means such as crowdfunding and access to capital markets through “mini-IPOs” made possible through the US JOBS Act of 2012.

The company is possibly one of the “blockchain companies” that UNR referred to when it announced the auction results back in May.

DigitalAMN says it intends to introduce “new value-added services, leveraging the newest technologies incorporated in digital wallets and crypto currencies” to its new gTLD.

It’s going to be interesting to see what the company has in mind.

UPDATE: this article was updated November 5, 2021, to remove an inaccurate reference to the company’s Bitcoin position.

.basketball domain emerges under GoDaddy with fewer hoops

The .basketball gTLD has finally had its coming-out party, with the registry announcing general availability this week.

Fédération Internationale de Basketball has outsourced management of the gTLD to sports marketing agency Roar Domains, doing business here as Roar.Basketball, which in turn is using GoDaddy Registry for the technical registry functions.

The domain has been in a seemingly interminable series of qualified launch programs, community priority registration phases and sunrise periods for the last four years, but FIBA said yesterday .basketball is now open to all-comers.

Technically, it’s been in general availability for a few months, but the broader marketing effort only began this week.

Right now, it’s being marketed via Roar’s site at be.basketball, where the base registration price is $50 a year. Premiums are available at higher prices.

Roar appears to be using Australian registrar Bombora Technologies, which GoDaddy acquired as part of its Neustar deal last year, as its primary — possibly exclusive — registrar.

Roar’s FAQ states that be.basketball “is the only site where you can register and manage a .basketball domain name”.

Other registrars are accredited, and almost 20 have a handful of presumed sunrise regs, but currently Bombora holds 80% of the 600 domains currently under management.

Weirdly, GoDaddy itself does not appear to currently sell .basketball names through its primary storefront.

Roar/FIBA originally had MMX as its partner, with CentralNic as its back-end, but that changed earlier this year when GoDaddy acquired most of MMX’s assets, including the .basketball relationship.

EURid fends off rivals for .eu contract

EURid has been renewed as the European Union’s ccTLD operator for another five years.

The organization announced yesterday that the European Commission has asked it to continue to run .eu and associated internationalized domain names until October 2027.

EURid beat off competition from three competitors — the Estonian ccTLD registry and two Luxembourg non-profits that appeared to have been formed just to bid on the contract.

EURid has been running .eu since its inception in 2005.