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.xyz starts to plummet — NetSol freebies to blame?

XYZ.com has been seeing its .xyz zone file shrink rapidly over the last five days, likely as a result of free domains pushed out to Network Solutions customers starting to expire.

DI PRO stats show that .xyz has shrunk by 49,658 domains this week — today at 888,413 names compared to a June 4 peak of 942,927.

It was June 4 last year when the industry become aware that NetSol was automatically pushing .xyz names into the accounts of its existing customers without their explicit consent.

Renewal rates usually do not become clear for 45 days after expiration, due to grace periods, but domains can delete earlier.

On June 9, 2014, one year ago today, .xyz had 87,073 domains in its zone file. It’s difficult to see where a loss of almost 50,000 names this week could come from if not the NetSol freebies deleting.

It is believed that the NetSol giveaway contributed about 350,000 names to .xyz’s zone over the period of its offer.

NetSol has been bundling .xyz renewals — which along with the free year of email and privacy comes to a whopping $57 — when it asks its customers to renewal their matching .com/.net/.org domains.

.xyz likely hasn’t seen the worst of its total shrinkage yet.

When eNom pushed free .info domains into its customers’ accounts about 10 years ago the renewal rate on those names was virtually zero.

New gTLD trade group launches

A group of new gTLD registries have got together to form the TLD Operator Community, a new “think tank” devoted to the commercial aspects of running new TLDs.

According to its web site:

The TLD Operator Community is designed to provide all new TLD applicants with an opportunity to share their experiences, learn from each other and focus on the commercial realities of operating a TLD – away from the confines of ICANN, policy or technical discussions.

The group appears to be coordinated right now by ARI Registry Services.

The distinction between the TLD Operator Community and the Domain Name Association appears to be that the DNA has more of a focus on outreach and education beyond the industry.

The new group will hold an introductory webinar June 30 (or July 1, depending on your time zone) featuring speakers from Donuts, Vox Populi, dotBerlin, Barclays and others.

ICM beats own annual projections with .porn on day one

ICM Registry says it managed to comfortably beat its own expectations for annual sales within the first eight hours of .porn and .adult going into general availability yesterday.

CEO Stuart Lawley said that there were 10,038 .porn domains and 8,277 .adult domains in its registry at the end of yesterday.

The company’s new gTLD applications with ICANN had predicted 10,000 .porn domains and 3,000 .adult domains at the end of the first year of availability, he said.

“We are therefore delighted to have exceeded those numbers on day one of GA,” he said. “We are particularly pleased with the high numbers from .adult.”

The majority of the names were registered either during the sunrise periods (ICM had two per TLD) or the recently ended “domain matching” program, which gave .xxx owners first dibs on matching .porn and .adult names.

A month ago, the company said .porn received 3,995 registrations while .adult had 3,902 at the end of the sunrises.

Earlier this week, after domain matching ended, Lawley said that .porn had almost 7,500 names while .adult had almost 7,000.

ICM will launch .sex in September.

Are new gTLD registries ripping off brands with unfair sunrise fees?

Forget .sucks — several less controversial new gTLD registries have come under fire from the likes of Google, Facebook and Adobe for charging sunrise fees as high as $17,000 for domains matching famous trademarks.

According to figures supplied to DI by ICANN’s Business Constituency, the domain instagram.love carries a $17,610 “Premium Name Fee” during the current sunrise period.

Instagram is of course the photo sharing service belonging to Facebook, and to the best of my knowledge not a dictionary word.

The domain facebook.love has a $8,930 fee, these figures show, while google.love costs $6,610, both in addition to sunrise fees of $350 and annual fees of $60.

The regular sunrise fee for .love comes in at $265 at some registrars.

The new gTLDs .design, .video, .wang, .wein, .rich and .top also seem to carry very high fees for brands such as Facebook, according to the BC’s numbers.

Google recently filed a public comment with ICANN which warned:

some registry operators are taking advantage of rights owners during Sunrise by charging exorbitant and extortionate Sunrise registration fees. Although such pricing policies are not strictly within the ICANN compliance mandate, they contravene the spirit of the RPMs [rights protection mechanisms], damage ICANN’s reputation, harm consumers in contravention of ICANN’s mandate to promote the public interest, and create disincentives for rights owners to take advantage of the Sunrise period

Similar comments were sent by the Intellectual Property Constituency, BC, and others.

The issue of registries charging super-high “premium” fees for trademarked names has been on the radar of the BC and the IPC since at least 2013.

It seems that in at least some cases, trademark owners are being hit with the higher fees because their marks are dictionary words that the registry has identified as premium due to their regular meaning.

For example, adobe.design is on the list of names provided by the BC, carrying a $1,175 registration fee.

But Andrew Merriam, director of business development at .design registry Top Level Design, denied that the software company is being targeted. Instead, he said “adobe” refers to the material used in architecture — its dictionary meaning.

He said: “Stucco.design, concrete.design, wood.design, granite.design (and many other materials and building styles) are all on the premium list, at varying prices. In fact, adobe.design is priced on the lower end of all these materials.”

Merriam said the registry’s premium fee for adobe.design is actually $250 and speculated that $1,175 could be the price quoted by Adobe’s brand protection registrar post-markup. It was $349 at Go Daddy, he said.

In other cases, trademarks may have found their way on to premium lists due to a lack of manual vetting by the registry, rather than nefarious targeting.

In the case of instagram.love, Evatt Merchant of .love registry Merchant Law Group told DI that Facebook can buy the name for the normal sunrise fee if it wants.

He told DI that trademark owners should contact the registry if they believe their marks have been wrongly given premium prices. He said:

While it is possible that some brand terms that are frequently googled have ended up on the premium list, valued based on their Google search frequency, there is a simple solution. During the sunrise period, brands seeking non-dictionary trademarked domain names can contact the registry so that a review of individual sunrise pricing can occur. As has already occurred, such requests will often result in the .LOVE TLD voluntarily offering to reduce their sunrise application cost to the base sunrise price and that would certainly be the case for Instagram.

ICANN’s does not regulate pricing in new gTLDs, but nevertheless the IPC and BC and their members have asked ICANN to include premium pricing of trademarked names in its upcoming review of rights protection mechanisms.

Is the Defending Internet Freedom Act pro-crime?

The Defending Internet Freedom Act of 2015, introduced to the US Congress last month, contains a provision that could be interpreted as pro-pron, pro-piracy or even just pro-crime.

The act is designed to prevent the US giving up its oversight of ICANN/IANA unless certain quite strict conditions are met.

It’s a revised version of a bill that was introduced last year but didn’t make it through the legislative process.

Like the 2014 version, it says that the US cannot sever ties with ICANN until its bylaws have been amended in various ways, including:

ICANN is prohibited from engaging in activities unrelated to ICANN’s core mission or entering into an agreement or modifying an existing agreement to impose on a registrar or registry with which ICANN conducts business any condition (such as a condition relating to the regulation of content) that is unrelated to ICANN’s core mission.

It’s the “regulation of content” bit that caught my eye.

Presumably written as a fluffy, non-controversial protection against censorship, it ignores where the real content regulation conversations are happening within the ICANN community.

It’s a constant mantra of ICANN that is “doesn’t regulate content”, but the veracity of that assertion has been chipped away relentlessly over the last several years by law enforcement, governments and intellectual property interests.

Today, ICANN’s contracts are resplendent with examples of what could be argued is content regulation.

Take .sucks, for a timely example. Its Registry Agreement with ICANN contains provisions banning pornography, cyber-bulling and parked pages.

That’s three specific types of content that must not be allowed in any web site using a .sucks domain.

It’s one of the Public Interest Commitments that were voluntarily put forward by .sucks registry Vox Populi, but they’re still enforceable contract provisions.

Using a dispute resolution process (PICDRP), ICANN would be able to levy fines against Vox Pop, or terminate its contract entirely, if it repeatedly allows porn in .sucks web sites.

This sounds quite a lot like content regulation to me.

It’s not just .sucks, of course. Other registries have PICs that regulate the content of their gTLDs.

And every contracted new gTLD registry operator has to agree to this PIC:

Registry Operator will include a provision in its Registry-Registrar Agreement that requires Registrars to include in their Registration Agreements a provision prohibiting Registered Name Holders from distributing malware, abusively operating botnets, phishing, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law, and providing (consistent with applicable law and any related procedures) consequences for such activities including suspension of the domain name.

It’s convoluted, but it basically indirectly forces (via registrars) new gTLD domain registrants to, for example, agree to not infringe copyright.

The PIC is paired with a provision (3.18) of the 2013 Registrar Accreditation Agreement that requires all registrars to investigate and “take necessary and appropriate actions” in response to abuse reports within 24 hours of receipt.

Section 3.18 is essentially the RAA mechanism through which ICANN can enforce the PIC from the RA.

This is currently one of the most divisive issues in the ICANN community, as we witnessed during the recent Congressional hearings into ICANN oversight.

On the one hand, big copyright owners and online pharmacy watchdogs want ICANN to act much more ruthlessly against registrars that fail to immediately take down sites that they have identified as abusive.

On the other hand, some registrars say that they should not have to engage in regulating what content their customers publish, at least without court orders, in areas that can sometimes be amorphously grey and fuzzy.

Steve Metalitz, from a trade group that represents the movie and music industies at ICANN, told the US Congress that registrars are dismissing piracy reports without investigating them, and that “unless registrars comply in good faith, and ICANN undertakes meaningful and substantive action against those who will not, these provisions will simply languish as empty words”.

John Horton from pharmacy watchdog used the same Congressional hearing to out several registrars he said were refusing to comply with 3.18.

One Canadian registrar named in Horton’s testimony told DI that every complaint it has received from LegitScript has been about a web site that is perfectly legal in Canada.

In at least some cases, it seems that those pushing for ICANN to more stringently regulate content may have “internet freedom” as the least of their concerns.

If the Defending Internet Freedom Act becomes law in the US, perhaps it could prove a boon to registries and registrars upset with constant meddling from rights owners and others.

On the other hand, perhaps it could also prove a boon for those operating outside the law.