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Brand-blocking service plotted for porn gTLDs

MMX wants to offer a new service for trademark owners worried about cybersquatting in its four porn-themed gTLDs.

The proposed Adult Block Services would be similar to Donuts’ groundbreaking Domain Protected Marks List and the recent Trademark Sentry offering from .CLUB Domains.

The service would enable big brands to block their marks from registration across all four TLDs for less than the price of individual defensive registrations.

Prices have not been disclosed, but a more-expensive “Plus” version would also allow the blocking of variants such as typos. The registry told ICANN:

The Adult Block Services will be offered as a chance for trademark owners to quickly and easily make labels unavailable for registration in our TLDs. For those trademark owners registering domain names as a defensive measure only, the Adult Block Services offer an easy, definitive, and cost-effective method for achieving their goals by offering at-a-stroke protection for TLDs included in the program. The Adult Block Services are similar to the Donuts’ DPML, Uniregistry’s EP and EP Plus and the .Club UNBS and should be immediately understood and accepted by the trademark community.

The Adult Block will allow trademark owners to block unregistered labels in our TLDs that directly match their trademarks. The Adult Block Plus will allow trademark owners to block unregistered, confusingly similar variations of their trademarks in our TLDs.

It seems more akin to DPML, and Uniregistry’s recently launched clone, than to .CLUB’s forthcoming single-TLD offering.

The Registry Service Evaluation Process request was filed by ICM Registry, which was acquired by MMX last year.

It only covers the four porn gTLDs that ICM originally ran, and not any of the other 22 gTLDs managed by MMX (aka Minds + Machines).

This will certainly make the service appear less attractive to the IP community than something like DPML, which covers Donuts stable of 242 TLDs.

While there’s no public data about how successful blocking services have been, anecdotally I’m told they’re quite popular.

What we do have data on is how popular the ICM gTLDs have been in sunrise periods, where trademark owners showed up in higher-than-usual numbers to defensively register their marks.

.porn, .adult and .sex garnered about 2,000 sunrise regs each, more than 20 times the average for a new gTLD, making them three of the top four most-subscribed sunrise periods.

Almost one in five of the currently registered domains in each of these TLDs is likely to be a sunrise defensive.

Now that sunrise is long gone, there may be an appetite in the trademark community for less-expensive blocks.

But there have been calls for the industry to unify and offer blocking services to cover all gTLDs.

The brand-protection registrar Com Laude recently wrote:

What brands really need is for registry operators to come together and offer a universal, truly global block that applies across all the open registries and at a reasonable price that a trademark owner with multiple brands can afford.

Quite how that would happen across over 1,200 gTLDs is a bit of a mystery, unless ICANN forced such a service upon them.

Defunct Famous Four ordered to hand $1.5 million back to investors

Former domain registry manager Famous Four Media has been ordered to return money to investors that was being used as insurance against its portfolio of gTLDs going out of business.

In an April 18 ruling (pdf) from Gibraltar’s Supreme Court, FFM and its CEO Iain Roache are told that original investors Domain Venture Partners are the true owners what looks to be about $1.5 million being used to back letters of credit in ICANN’s name.

It’s a very complicated ruling, reflecting the complex structure of the FFM/DVP relationship. It wants for clarity in some areas, and is probably best suited to interpretation by a forensic accountant.

Nevertheless, I’ll give it a shot.

Basically, back in 2011 businessman Iain Roache recruited a bunch of international investors to join him in funding applications for 60 new gTLDs. The investment vehicle was and is called Domain Venture Partners.

Each application had an associated “bid vehicle”, essentially a Gibraltar-based shell company with names along the lines of Dot Science Ltd or Dot Accountant Ltd.

Those of the vehicles that were successful in their applications continue to be the official registry sponsors for 16 active gTLDs. They’re all owned by DVP.

Famous Four was a separate company, owned 80:20 by Roache and business partner Geir Rasmussen, hired by DVP to manage the business of actually selling domains.

For many years, myself and pretty much everybody else covering the domain name industry referred to FFM as if it was the owner of the TLDs, more or less interchangeably with DVP.

In fact, FFM was just a DVP contractor and behind the scenes DVP was growing increasingly unhappy with how the domains were being managed, DVP investor Robert Maroney told DI last August.

For about a year now, FFM has been in liquidation. DVP kicked it out of the registry management business and replaced it with a new company that it controls called GRS Domains, managed by a PricewaterhouseCoopers accountant called Edgar Lavarello.

Thirteen of the DVP bid vehicles sued Famous Four to claim ownership of, among other things, the money backing the so-called “Continuing Operations Instruments” that ICANN demanded from each new gTLD applicant.

The COI, usually a letter of credit from a big bank, were used to give ICANN the confidence that new gTLD domain registrants would not be affected by dodgy registries going out of business and their domains immediately going dark. The money would fund ongoing technical operations for a few years, giving registrants time to find a new home for their web sites.

In this case, Famous Four’s liquidator refused to agree that the money backing the COIs was rightfully DVP’s.

What seems to have happened is that in mid-2016 the DVP letters of credit were hastily switched from Credit Suisse to Barclays, after Credit Suisse closed down its Gibraltar branch.

There was a period in which both sets of LoCs were active, in order to remain compliant with ICANN’s rule that there must be an active COI at all times.

The original Credit Suisse LoCs had been funded by DVP, but the Barclays LoCs were funded by FFM, or quite possibly Roache himself, to the tune of about $1.5 million.

FFM was then repaid by the return of the money backing the Credit Suisse LoCs, when those LoCs were closed, according to Chief Justice Anthony Dudley’s ruling.

After the switch of banks, the LoCs were no longer in the names of the DVP bid vehicles; they belonged to FFM. The money DVP put up to originally secure the COIs was now in FFM’s control.

Dudley now seems to have ruled that FFM now owes DVP this money back, and that the liquidator, Grant Jones of Simmons Gainsford, was wrong to withhold it.

In fact, the judge has some quite stern words for Jones, saying that he was “wholly inappropriate” when he temporarily turned over his responsibilities as liquidator to Roache and his law firm. Dudley wrote:

It may be that it arises as a consequence of the Liquidator having limited funds with which to engage in litigation. But whatever the reason, the position adopted by the liquidator of FFM in these proceedings has been unusual and certainly capable of being construed as running counter to the fundamental principle of objectivity required of a Liquidator, now codified in the Insolvency Practitioner Regulations 2014. Rather than formulate his own view (or as urged by me at a preliminary hearing seek his own independent legal advice) by letter dated 1 March 2019 GJ sought to abrogate his responsibility and authorised IR and JSF to act on behalf of FFM

That aside, the main piece of evidence that appears to have caused Dudley to side with DVP was a set of emails from Famous Four chief legal officer Oliver Smith to DVP investors that were sent at the time the LoCs were switching banks.

Smith confirmed in one of these emails that FFM was basically just acting as a conduit for DVPs bid vehicles, which by that point were operational registries.

The judge noted that the Smith email that confirmed this was submitted in evidence by Lavarello and Maroney only after Roache had submitted the rest of the thread, excluding this email, in his own evidence.

Dudley ruled that the DVP companies should get what they asked for, namely the funds associated with the LoCs. It’s not entirely clear from his ruling how much this is, but by my reading it’s around the $1.5 million mark.

The liquidation, which is ongoing, is to the best of my knowledge unrelated to the still unexplained demise of AlpNames, the registrar and close FFM partner also owned by Roache and Rasmussen.

Finally, a disclaimer.

Because I’ve already had one spurious legal threat related to my ongoing coverage of Famous Four’s demise, and don’t really need the arseache of any more, I’m going to state unequivocally for the record that I’m not alleging any wrongdoing by anyone.

If I’ve got anything wrong, as always I will gladly issue a correction. Just ask, and show your working. No need to sic the lawyers on me.

You can read the judge’s decision (pdf) and decide for yourself what’s been going on.

Future of .io domains has become party-political issue in the UK

The future of the Chagos Islands and therefore the longevity of .io domain names may well depend on which party holds the reins of power in the UK.

The current Conservative government under Theresa May has this month rejected an international court ruling calling for the British Indian Ocean Territory — currently the official name of the archipelago — to be wound down and the lands returned to the exiled Chagossians.

But the leader of the official opposition, Jeremy Corbyn, has reportedly slammed the government’s position and said Labour is “committed to respecting the advisory opinion in full, so as to ensure that Chagossians are able to return to their homes”.

In February, the International Court of Justice ruled that the UK had kept control of the islands unlawfully when Mauritius, which had the prior claim, gained its independence in 1968.

The couple thousand natives were kicked out of the country a few years later to make way for a US naval base, and have been living in Mauritius and the Seychelles with no ability to return ever since.

Were the UK to follow the ICJ ruling, it would quite possibly mean the end of BIOT as the name of the islands and therefore the demise of its two-letter country code, IO, and therefore the eventual retirement of the popular .io domain name.

.io, which is believed to have around 270,000 domains, is run by London-based Internet Computer Bureau Ltd, which Afilias bought for $70 million two years ago.

It’s popular with tech startups as a kind of domain hack for “input/output”.

Now that the UK government has officially come out against the ICJ ruling, and Labour has supported it, it appears the future of the Chagossians and .io registrants alike will depend rather on who is occupying 10 Downing Street in future.

Dead dot-brands hit 50

Two more dot-brands are on their way out, bringing the total to fall on their swords to date to a nice round 50.

Both of the new departures appear to be brands belonging to the Saudi telecommunications company Etihad Etisalat, which does business as Mobily and has annual revenue approaching $1.8 billion.

The gTLDs in question are .mobily and موبايلي., the Arabic version of the brand, which sits in the root as .xn--mgbb9fbpob.

As is usual in cases of dot-brand self-termination, neither TLD had actually been put to any use beyond the obligatory nic. site.

Despite Mobily being based in Saudi Arabia, the registry is actually a Bahrain company, Greentech Consulting, apparently being run by a US-based new gTLD consultancy called WiseDots.

I’ve never heard of this outfit or its point man before today and its social media activity seems to have dried up shortly after the new gTLD application window closed in 2012.

The registry was hit by a breach of contract notice in December 2016 after it apparently forgot to pay its ICANN fees for a while, but it managed to resolve the issue without further action.

Turkish government takes over ccTLD

Turkey’s ccTLD has been transferred into government hands.

ICANN’s board of directors at the weekend formally approved a redelegation request from the country to its IANA division.

The new official ccTLD manager is Bilgi Teknolojileri ve İletişim Kurumu (BTK), which translates as Information and Communication Technologies Authority.

That’s Turkey’s telecommunications regulator, part of the government.

The original manager, since the delegation in 1990, was Middle East Technical University, an Ankara-based university that caters to over 30,000 students.

As is usual with ccTLD redelegations, all the discussions happened behind closed doors. Typically, the losing manager has to agreed to the transfer.

IANA will release a report at some point explaining the process leading up to the handover.