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Happy 10th birthday new TLDs!

Kevin Murphy, November 15, 2010, Domain Registries

With all the excitement about ICANN’s weekend publication of the new top-level domain Applicant Guidebook, it’s easy to forget that “new” TLDs have been around for a decade.

Tomorrow, November 16, is the 10th anniversary of the ICANN meeting at which the first wave of new gTLDs, seven in total, were approved.

The recording of the 2000 Marina Del Rey meeting may look a little odd to any relative newcomers to ICANN.

The open board meeting at which the successful new registries were selected took well over six hours, with the directors essentially making up their selection policies on the spot, in the spotlight.

It was a far cry from the public rubber-stamping exercises you’re more likely to witness nowadays.

Take this exchange from the November 2000 meeting, which seems particularly relevant in light of last week’s news about registry/registrar vertical integration.

About an hour into the meeting, chairman Esther Dyson tackled the VI idea head on, embracing it:

the notion of a registry with a single registrar might be offensive on its own, but in a competitive world I don’t see any problem with it and I certainly wouldn’t dismiss it out of hand

To which director Vint Cerf, Dyson’s eventual successor, responded, “not wishing to be combative”:

The choices that we make do set some precedents. One of the things I’m concerned about is the protection of users who register in these various top-level domains… If you have exactly one registrar per registry, the failure of either the registrar or the registry is a serious matter those who people who registered there. Having the ability to support multiple registrars, the demonstrated ability to support multiple registrars, gives some protection for those who are registering in that domain.

Odd to think that this ad-hoc decision took ten years to reverse.

It was a rather tense event.

The audience, packed with TLD applicants, had already pitched their bids earlier in the week, but during the board meeting itself they were obliged to remain silent, unable to even correct or clarify the misapprehensions of the directors and staff.

As a rookie reporter in the audience, the big news for me that day was the competition between the three registries that had applied to run “.web” as a generic TLD.

Afilias and NeuStar both had bids in, but they were competing with Image Online Design, a company that had been running .web in an alternate root for a number of years.

Cerf looked like he was going to back the IOD bid for a while, due to his “sympathy for pioneers”, but other board members were not as enthusiastic.

I was sitting immediately behind company CEO Christopher Ambler at the time, and the tension was palpable. It got more tense when the discussion turned to whether to grant .web to Afilias instead.

Afilias was ultimately granted .info, largely due to IOD’s existing claim on .web. NeuStar’s application was not approved, but its joint-venture bid for .biz was of course successful.

This was the meat of the resolution:

RESOLVED [00.89], the Board selects the following proposals for negotiations toward appropriate agreements between ICANN and the registry operator or sponsoring organization, or both: JVTeam (.biz), Afilias (.info), Global Name Registry (.name), RegistryPro (.pro), Museum Domain Management Association (.museum), Société Internationale de Télécommunications Aéronautiques (.aero), Cooperative League of the USA dba National Cooperative Business Association (.coop);

If any of this nostalgia sounds interesting, and you want to watch seven hours of heavily pixelated wonks talking about “putting TLDs into nested baskets”, you can find the video (.rm format, that’s how old it is) of the MDR board meeting buried in an open directory here.

New TLD guidebook bans domain front-running

Kevin Murphy, November 15, 2010, Domain Registries

ICANN’s newly published Applicant Guidebook for new top-level domain operators contains a draft Code of Conduct for registries that, among other things, bans “front-running”.

The code, which I think is probably going to be one of the most talked-about parts of the AGB in the run-up to ICANN’s Cartagena meeting next month, is designed to address problems that could arise when registrars are allowed to run registries and vice versa.

Front-running is the name given to a scenario in which registrars use insider information – their customers’ domain availability lookups – to determine which high-value domains to register to themselves.

While there’s plenty of anecdotal evidence that such practices have occurred in the past, a study carried out last year by researcher Ben Edelman found no evidence that it still goes on.

Front-running was however held up as one reason why registrars and registries should not be allowed to vertically integrate, so the AGB’s code of conduct explicitly bans it.

It also bans registries accessing data generated by affiliated registrars, or from buying any domains for its own use, unless they’re needed for the management of the TLD.

Integrated registries will have to keep separate accounts for their registrar arms, and there will have to be a technological Chinese wall stopping registry and registrar data from cross-pollinating.

Registries will also have to submit a self-audit to ICANN, certifying their compliance with the code of conduct, before January 20 every year.

The code is currently a six-point plan, which, given the past “ingenuity” of domain name companies, may prove a little on the light side.

There’s lots more discussion to be had on this count, no doubt.

Go Daddy’s .co promo is a test

Kevin Murphy, November 14, 2010, Domain Registries

Go Daddy is was “testing” the .co top-level domain as its default extension, .CO Internet has revealed.

It’s been widely reported over the weekend that .co is now the first TLD in the drop-down menu on Go Daddy’s front page, but it looks like the news might not be as shocking as originally thought.

.CO Internet chief executive Juan Diego Calle has just blogged:

The GoDaddy test is exciting. Permanent? Not yet. While we have a great and expanding relationship with GoDaddy, we do not expect .CO to remain as the default TLD on a permanent basis. In fact this is only a test to measure conversions, customer feedback, and much more.

Still, onwards and upwards. It’s certainly good news for the marketing of the Colombian TLD.

Personally, I’d be interested not only in data on conversions but also on refunds. There’s bound to be the odd customer who blindly registers a nice-looking domain thinking it’s a .com, right?

UPDATE: Go Daddy is now showing me (and others) .com as the default TLD once more. I guess the data is in.

Could vertical integration kill registrar parking?

Kevin Murphy, November 14, 2010, Domain Registries

Will ICANN’s decision to allow registrars and registries to own each other help reduce the practice of registrars parking unused or expiring domain names?

A reading of the new top-level domain Applicant Guidebook in light of the recent “vertical integration” ruling it incorporates certainly raises this kind of question.

The AGB includes a policy called the Trademark Post-Delegation Dispute Resolution Procedure, or PDDRP, which allows trademark owners to seek remedies against cybersquatting registries.

The policy is quite clear that registries cannot be held accountable for cybersquatting by third parties in their TLD, unless they have, for example, actively encouraged the squatters.

But another example of infringement is given thus:

where a registry operator has a pattern or practice of acting as the registrant or beneficial user of infringing registrations, to monetize and profit in bad faith.

Now, this wouldn’t be a cause for concern in the current vertically separated market.

Most registries are only generally able to register domain names in their own TLD by going through an accredited registrar. Proving bad faith intent in that situation would be trivial.

But what of an integrated registry/registrar that also automatically parks recently registered or expiring domains in order to profit from pay-per-click advertising?

This is common practice nowadays. It’s been used to prove a registrant’s bad faith during many recent UDRP proceedings and one registrar is even being sued by Verizon for doing it.

Would a registrar parking an expired, trademark-infringing domain constitute it acting as a “beneficial user” of the domain “to monetize and profit in bad faith”?

Text added to the PDDRP section of the AGB in its most recent revision strongly suggests that “the registrar did it” would not be a defence for a vertically integrated company:

For purposes of these standards, “registry operator” shall include entities directly or indirectly controlling, controlled by or under common control with a registry operator

The PDDRP allows complainants to seek remedies such as injunctions, as well as the suspension of new registrations in a TLD and, exceptionally, the full revocation of their registry contract.

With that in mind, would an integrated registry/registrar want to risk any practice that puts their TLD at risk?

What does ICANN say about terrorism?

Kevin Murphy, November 14, 2010, Domain Registries

While it’s true that ICANN has excised specific references to terrorism from its new top-level domain Applicant Guidebook, don’t expect any such groups to be awarded TLDs.

As I reported in September, the AGB no longer contains the explicit mention of “terrorism”, which had caused complaints to be filed by a few members of the community.

But it does contain text that makes it abundantly clear that any group or nation the US considers a supporter of terrorism will have an extremely hard time finding approval.

Under a new section entitled “Legal Compliance”, ICANN notes that it “must comply with all U.S. Laws, rules, and regulations” including the sanctions program overseen by the US Office of Foreign Assets Control.

OFAC administers a List of Specially Designated Nationals and Blocked Persons. If you’re on the SDN list, American companies cannot do business with you without a license.

While ICANN has applied for exemption licenses in the past, in order to be able to deal with organizations in US-unfriendly nations (on ccTLD matters, presumably), the AGB now states:

ICANN generally will not seek a license to provide goods or services to an individual or entity on the SDN List. In the past, when ICANN has been requested to provide services to individuals or entities that are not SDNs, but are residents of sanctioned countries, ICANN has sought and been granted licenses as required. In any given case, however, OFAC could decide not to issue a requested license.

If you’ve never seen this list before, it can be downloaded here. It’s currently 475 pages long, and while it’s certainly a globally inclusive document, parts of it do read like the Baghdad phone book.

(Interestingly, many of the listed a.k.a’s are actually domain names)

Anybody who wanted ICANN to replace the amorphous term “terrorism” with something a little more specific have had their wishes granted.

No more hypothetical debate is required about whether Hamas, for example, is a terrorist group or a movement of freedom fighters. It’s in the book, so it’s probably not getting a TLD.