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Who should have rights to direct .au names?

Kevin Murphy, October 10, 2017, Domain Registries

Australian ccTLD registry auDA wants to know what you think about its plans to open up .au to direct second-level domain registrations.

It’s no longer a question of if the change should happen, but how it should be implemented.

A public consultation launched yesterday poses a series of questions about issues such as grandfathering, trademark rights and banning certain strings from registration.

It’s already been decided that existing third-level .au registrants should get first dibs on the matching second-level, but auDA has yet to decide what the eligibility cut-off date should be and for how long the names should be reserved before being released for registration by others.

The cut-off date is important because auDA has already seen some data suggesting possible domain investor gaming.

There were 193,645 strings that were registered as third-level domains in two zones at April 18, 2016, when the direct registration policy was announced, but that had risen to 255,909 as of September 1 this year.

That could be indicative of speculators obtaining low-value domains in .net.au or .org.au in the hope of beating the matching .com.au registrant to the possibly more valuable direct second-level .au domain.

If the April 2016 date is used, up to 14% of .au registrations will be subject to competing claims. The data shows that 90% of the conflicts are between .net.au and .com.au domains.

auDA has declined to draw any conclusions about gaming, however, saying that many of the conflicts could be defensive registrations made by the same registrant.

Where there are conflicts, a number of solutions have been posed. Among them: the longest continuous registration, priority for .com.au registrants, auction or lottery.

The consultation paper spends little time discussing the rights of trademark owners, something submissions from the IP lobby will no doubt seek to rectify.

Many of the questions auDA is posing are similar to those posed by the likes of .uk’s Nominet in previous ccTLD consultations.

There’s an additional wrinkle in the .au system as many state government and educational entities are required to register fourth-level names. So auDA wants to know what kind of rights these guys should have too.

The consultation is open until November 10 and all the relevant information can be found here.

Nine registries fighting for .au contract

Kevin Murphy, October 4, 2017, Domain Registries

Nine domain name companies are battling it out for the right to run Australia’s .au ccTLD.

That’s according to auDA, the .au registry, providing an update on the latest stage of its “registry transformation” project today.

A decision on which company to select could be made as soon as a month from now, though the process does seem to be running a week behind schedule due to contenders asking for more time to write their tenders.

One company that will certainly have applied for the job is incumbent Neustar, which has been running .au for the last 15 years (through its relatively AusRegistry acquisition).

Having earlier indicated that it was looking for somebody to build an in-house registry, auDA later clarified (or U-turned) that it wanted to stick with an outsourced back-end provider.

The apparent decision to bring the service in-house came in for some criticism from some auDA members, which waned when it emerged outsourcing was the only solution on the table.

There are about 3.1 million .au domains today, and the back-end gets roughly $5 a year (USD) per name.

In harsh tones, ccNSO rejects NomCom appointee

Kevin Murphy, October 2, 2017, Domain Registries

ICANN’s Country Code Names Supporting Organization has rejected the appointment to its Council of a Canadian registry director.

Saying NomCom ignored long-standing guidance to avoid appointing registry employees, the ccNSO Council has said the recent naming of Marita Moll to the role is “unacceptable”.

Moll will have to choose between sitting on the Council and being a director of .ca registry CIRA, the Council said in a letter to NomCom and the ICANN board.

Three of the Council’s 18 voting members are selected by NomCom. The rest are elected from ccTLD registries, three from each of ICANN’s five geographic regions.

To maintain balance, and promote independent views, the Council told NomCom most recently back in 2012 that it should refrain from appointing people connected to ccTLD registries.

The new Council letter (pdf) reads:

Council’s view (none dissenting) is that your Committee’s proposed selection directly contravenes this requirement, notwithstanding the clear and explicit assurance we received in 2012 from the then Chair of Nominating Committee that the Committee would be “avoiding any member already belonging to the ccTLD management participating in the ccNSO”.

The situation is exacerbated by the fact that CIRA already has representation on the Council in the form of CEO Byron Holland.

The letter concludes that the conflict is “irreconcilable” and the appointment “unacceptable”.

As the ccNSO does not appear to have refusal powers on NomCom appointees, it will presumably be up to Moll to decline the appointment.

Millions spent as three more new gTLDs auctioned

Kevin Murphy, September 26, 2017, Domain Registries

Two or three new gTLDs have been sold in a private auction that may well have seen over $20 million spent.

The not-yet-delegated strings .inc, .llc and (I think) .llp hit the block at some point this month.

They are the first new gTLDs to be auctioned since Verisign paid $135 million for .web a little over a year ago.

At this point, nobody wants to talk about which applicant(s) won which of the newly sold strings, but it seems that the proceeds ran into many millions.

MMX, which applied for .inc and .llc, said this morning that it has benefited from a $2.4 million windfall by losing both auctions.

The auctions evidently took place in September, but CEO Toby Hall declined to comment any further, citing non-disclosure agreements.

There were nine remaining applicants for .inc and eight for .llc.

I don’t think it’s possible to work out which sold for how much using just MMX’s disclosure.

But private auctions typically see the winning bid divided equally between the losers.

I believe .llp was probably sold off by auction at the same time.

The reason for this is that .llc, .inc and .llp were contention sets all being held up by one applicant’s dispute with ICANN.

Dot Registry LLC had applied for all three as “community” gTLDs, which meant it had to go through the Community Evaluation Process.

While it failed the CPE on all three counts, the company subsequently filed an Independent Review Process complaint against ICANN, which it won last August.

You may recall that this was the IRP that found disturbing levels of ICANN meddling in the drafting of the CPE panel’s findings.

Ever since then, ICANN has been conducting an internal review, assisted by outside experts, into how the CPE process worked (or didn’t).

Lawyers for Dot Registry and other affected applications (for .music and .gay) have been haranguing ICANN all year to get a move on and resolve the issue.

And yet, just as the end appeared to be in sight, Dot Registry seems to have decided to give up (or, possibly, cash out) and allow the strings to go to auction.

CEO Shaul Jolles declined to comment on the auctions today.

All I can currently tell you is that at least two of the Dot Registry holdout strings have been sold and that MMX did not win either of them.

The applicants for .inc were: Uniregistry, Dot Registry, Afilias, GMO, GTLD Limited, MMX, Nu Dot Co (now a known Verisign front), Donuts and Google.

The applicants for .llc were: MMX, Dot Registry, Nu Dot Co, Donuts, Afilias, Top Level Design, myLLC and Google.

MMX revenue slips despite domain growth

Kevin Murphy, September 26, 2017, Domain Registries

MMX today posted a smaller loss for the first half of the year, despite managing to grow domains under management and hit some important financial milestones.

The new gTLD registry formerly known as Mind + Machines, which announced a few months ago that it’s looking to be acquired, reported an H1 loss of $526,000 compared to a loss of $1.9 million a year earlier.

Revenue and billings were both down due to the lack of any big launches in the period; H1 2016 had benefited from the strong launch of .vip in China.

Revenue, which is recognized over the duration of the domain registrations, was $5.3 million compared to $7.4 million in 2016. Billings, a measure of cash sales, were $5.6 million compared to $8.1 million.

Despite these dips, MMX is happy enough that the “quality” of its revenue is getting better.

The company said that revenue from domain renewals more than doubled to $2.4 million and represented 45% of revenue. A year ago, it was 15%.

As another measure of the health of its business, it also said that its renewal billings was greater than its operating expenditure for the first time, after cost-cutting.

Domains under management went into seven figures for the first time, to 1.1 million. That was up from 821,000 at the start of the year.

It processed 318,000 new registrations in the six months, compared to 452,000 a year earlier (when .vip’s launch provided a boost).