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Now auDA loses its CEO too

The CEO of Australian ccTLD registry auDA has quit, just weeks after the organization’s chair resigned.

Cameron Boardman submitted his resignation yesterday, according to a statement.

Former chair Chris Leptos also quit last month, reportedly after a disagreement with Boardman.

Boardman said he wants “to seek new challenges”.

His functions will be carried out by other members of the executive team while a replacement is sought by the board.

Boardman joined as CEO in March 2016, after 16-year veteran Chris Disspain was fired.

For much his tenure, auDA has been beset by controversy, with fights between the board and members leading to government review, several board resignations, police investigation, and a seemingly endless series of tit-for-tat allegations.

Boardman was among four auDA directors who survived a no-confidence vote brought by domain investors last year.

Porn blocks could be worth millions to MMX

Minds + Machines could find itself making millions of dollars a year out of non-resolving defensive registrations in its recently acquired portfolio of porn-themed gTLDs.

The company recently announced the launch of AdultBlock and AdultBlock Plus, which will enable trademark owners to prevent anyone else registering their marks, and variants thereof, for up to 10 years.

Running the numbers, and taking into account MMX’s already substantial established client base for such services, AdultBlock could bring in as much as $11 million a year. But it’s almost certainly going to be much less than that.

The company won’t disclose it’s exact pricing for AdultBlock, or its revenue estimates, but it’s possible to do some back-of-the-envelope calculations and come to some ball-park guesses.

MMX has said that it’s pricing the service such that customers should be able to see a 35% saving compared to the cost of registering a single string across all four of its porn TLDs

The company acquired .xxx, .porn, .adult and .sex when it bought ICM Registry last year.

The wholesale fee for each of the four is believed to be about $68 a year. From this, we can calculate that the wholesale price of AdultBlock may well be around the $175-a-year mark.

There’s some room for error here, as MMX hasn’t revealed precisely how it came to its 35% number, but I think we can safely say we’re looking at $150 to $200 a year. For the purposes of this envelope, let’s split the difference and assume it’s $175.

It’s quite a high number, a bit like a recurring sunrise fee for a domain that you don’t even get to use.

But how many domains can MMX expect to be blocked?

A low-ball estimate could be modeled on the .porn/.adult/.sex sunrise periods.

.porn launched in 2015 and gathered 2,091 sunrise registrations, according to ICANN records, making it one of the largest new gTLD sunrise periods. The other two TLDs weren’t far behind.

If that’s a good guide for AdultBlock uptake, we’re talking about a piddling $360,000-a-year business.

But MMX has a secret weapon that it inherited from .xxx.

When .xxx launched back in 2011, it kicked off with two sunrise periods. Sunrise A was for trademark owners in the porn business who wanted to use their .xxx names. Sunrise B was for everyone else, who didn’t.

In Sunrise B, brand owners paid $162 (plus their registrar’s markup) to block their domains for a flat period of 10 years.

Customers couldn’t use their domains. They were registered to ICM and used specially designated ICM name servers to resolve to a standard, non-monetized placeholder page stating “This domain has been reserved from registration.”

There are over 80,000 domains using these name servers, but about 15,000 of those represent names of celebrities, cities, and religiously and culturally sensitive terms that ICM culled from Wikipedia and unilaterally reserved to help avoid a tabloid crucifixion if mileycyrus.xxx ever started bouncing children to something pornographic, such as one of her music videos.

(As an aside, I think it’s worth mentioning that the .xxx zone file only has 93,000 names in it. These means about nine out of 10 live .xxx domains are reserved by the registry.)

So we’ve got 65,000 trademarks that are currently blocked in .xxx, and they’re all going to expire in 2021 because ICM only sold blocks for the duration of its original 10-year ICANN contract.

If all 65,000 domains are upgraded to AdultBlock, the service would be worth over $11 million a year, to a company currently reporting annual revenue around $15 million.

But they won’t.

You don’t have to scroll too far down the .xxx zone file (and I didn’t) to discover some absolute garbage, no doubt the result of scaremongering around the 2011 .xxx launch.

I mean, seriously, look at some of this Sunrise B guff:

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

I think we’re going to be looking at a significant junk drop of blocked domains come 2021.

That said, I think MMX may have a psychological advantage here, when it comes to persuading Sunrise B users to “renew”.

Who hasn’t renewed a domain name they strongly suspect they will never use or sell, simply because they couldn’t bear the thought of somebody else owning “their” domain?

An additional consideration for brand owners is that these Sunrise B names are going to show up on drop-lists when they are eventually deleted from the .xxx zone file, perhaps giving inspiration to cybersquatters.

This is a fantastic opportunity for MMX and brand protection registrars to put the hard sell on its Sunrise B customers to “renew” their blocks by upgrading to the new and improved AdultBlock service, which could cost literally 10 times more than what they originally signed up for.

AdultBlock is of course more comprehensive than Sunrise B. It covers three additional TLDs, for starters, and customers can pay a little more for potentially thousands of potential homographs (non-Latin-script domains that look almost identical to the original) to also be blocked.

MMX isn’t waiting until 2021, however. It’s currently offering companies that buy a 10-year-block before the end of 2019 the AdultBlock+ service for the price of the vanilla, no-variants offering.

Existing Sunrise B customers have until the same deadline to purchase the new service without having to have their trademarks re-verified, which carries an additional fee.

For those that miss this early-bird offer, come December 2021, the holders of up 65,000 trademarks are going to face a stark choice: sign up to pay a couple hundred bucks a year, or risk their brands being snapped up by pornsquatters.

Cryptocurrency firms to be banned from .bank

The registry for the already heavily restricted .bank and .insurance gTLDs wants to change its policies to make it clear that cryptocurrency firms are not welcome.

fTLD Registry Services has opened up a public comment period on proposed changes to its eligibility policies for the two TLDs which would drop the “service provider” category of registrant.

It would also clarify that eligible entities have to be “retail” banks regulated by a proper government authority.

The elimination of “service providers” is an effort to clarify that .bank is for banks and not peer-to-peer or cryptocurrency payment providers.

Heather Diaz, senior director of compliance and policy at fTLD, told us that the service provider category was created to allow “banking core processors” and the like to register domains. She said in an email:

More recently, as the financial services arena has evolved, particularly as it relates to fintechs offering financial products/services (e.g., P2P payment providers, cryptocurrency companies), we have found that some prospective Registrants were seeking domains to enhance their legitimacy to market to regulated entities and/or consumers.

By eliminating the category, fTLD hopes to clarify that .bank is just for regulated banks.

Registrants that already own service provider domains (it sounds like there are only one or two) would be grandfathered under the proposed policy, so nobody’s going to lose their existing domains.

The proposed changes were boiled up by fTLD’s bank-led Advisory Committee and its board of directors.

Comments are being accepted until August 24, after which the company’s board will decide whether to implement the new policies.

Cybersquatting cases down a bit in the UK

The number of cybersquatting complaints filed with Nominet declined slightly in 2018, according to the registry.

Nominet’s Dispute Resolution Service, which is a bit like the UDRP, handled 671 cases last year, compared to 712 in 2017.

The number of domains at issue was down from 783 to 763.

The slight decline appears to be because fewer complaints were filed against .org.uk, .me.uk and plain .uk domains.

The number of .co.uk registrations challenged was flat between 2017 and 2018 at 617 domains.

Only 49% of cases resulted in the disputed domain being transferred, according to the registry’s annual report (pdf).

Looks like .fans has a new Chinese owner

It appears that the struggling new gTLD .fans has changed ownership for the second time in a year.

According to ICANN’s web site, the .fans Registry Agreement was assigned to a company called ZDNS International on June 28.

Since August 2018, the contract had been in the hands of a CentralNic subsidiary called Fans TLD, having been originally operated by Asiamix Digital.

ZDNS International appears to be a newish Hong Kong subsidiary of major China-based DNS service provider ZDNS.

ZDNS provides DNS services for more than 20 TLDs, mostly Chinese-language, but as far as I can tell it is not the contracted party for any.

It’s also known for providing registry gateway services for non-Chinese registries that want to set up shop in the country.

CentralNic took over .fans last year after Asiamix failed to get the TLD’s sales to take off.

.fans had about 1,700 domains under management at the time, and it’s been pretty much flat ever since. I don’t think CentralNic has been promoting it.

Over the same period, singular competitor .fan, which Donuts acquired from Asiamix last year, has gone from 0 to almost 3,000 registrations.

If CentralNic, a public company, made a profit on the flip it does not appear to have been material enough to require disclosure to shareholders.