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$41m auction loser tries to slam brakes on .shop

Kevin Murphy, February 1, 2016, Domain Registries

Lawyer-happy gTLD applicant Commercial Connect has put GMO Registry’s $41 million purchase of the new gTLD .shop in jeopardy by filing an appeal with ICANN.

On January 26 — the day before the .shop auction — the Connecticut-based company filed an Independent Review Process complaint with ICANN, asking a panel of judges to enjoin ICANN from delegating .shop or even signing a registry contract with GMO.

It’s applied for “emergency” relief. Its full IRP complaint has yet to be filed.

GMO won a seven-way ICANN auction for .shop last week, agreeing to pay $41.5 million into ICANN coffers.

The IRP news will not be particularly surprising for anyone who has followed the .shop contention set closely.

Commercial Connect has deployed pretty much every legal avenue available to it in order to win .shop, which had eight competing applications.

It applied as a “community” applicant, but unsurprisingly failed to meet the stringent criteria that a Community Priority Evaluation requires.

It scored a measly 5 out of the 16 available CPE points, missing the 14-point target.

The company also spunked goodness knows how much cash filing 21 formal objections against other gTLD applicants — ridiculous complaints that “.supply” or “.セール” or “.services” were “confusingly similar” to .shop.

It actually managed to win two of its string similarity challenges, when panelists apparently decided to write their judgments before their morning coffee had kicked in.

It was probable that .shopping and .通販 would be confused with .shop in the mind of the average internet user, these panelists decided.

The .通販 decision was thrown out when sanity prevailed, but the .shopping decision stood. Only a recent back-room deal between Uniregistry and Donuts prevented the .shop auction being a head-explodingly confusing mess.

Now, with its IRP, Commercial Connect is claiming that the whole CPE system goes against ICANN rules.

According to its initial complaint, the fact that the CPE adjudicator, the Economist Intelligence Unit, came up with its own supplemental “CPE Guidelines” means that the the CPE system is not “ICANN policy” and should therefore be disregarded.

At first glance, it seems weak. But I said the same about the DotConnectAfrica IRP case, which DCA won.

IRP panels have been known to be somewhat “activist” (not necessarily a bad thing) recently, so it’s hard to call which way they will swing in any specific case.

But it does seem quite possible that the emergency relief that Commercial Connect requests — that is, no .shop contract until the IRP is over — will be granted.

For GMO, that means it’s just spent $41.5 million on a gTLD it probably won’t be able to launch for well over a year.

It’s perhaps interesting that Commercial Connect doesn’t seem to make any reference in its IRP to its original 2000-round application for .shop.

If that comes up in future filings, it could open up an entirely new can of worms.

Donuts adds two millionth domain

Kevin Murphy, February 1, 2016, Domain Registries

Donuts today said that it has added its two millionth new domain name registration.

The domain in question was schedule.holiday, the company said.

The number appears to refer to fresh registrations, not including renewals, across all of its TLDs.

Its first batch of gTLDs launched about two years ago.

The registry currently has 192 new gTLDs, 185 of which are in general availability, according to DI records, making the average haul about 10,000 names per TLD.

If we were talking $20 per registration (an estimate, as Donuts doesn’t publish its registry fees), the company would have made $40 million from new regs.

That’s not including its sunrise fees, renewals, or recurring premium-fee domains, of course.

It spent almost $57 million just on ICANN application fees.

It expects to wind up with about 200 by the time the current application round ends.

Its best performer to date is .guru, one of its first to launch, which has about 65,000 names in its zone file today and, according to Donuts, over 67,000 names in total.

UN group supports community .gay bid

Kevin Murphy, January 30, 2016, Domain Registries

An organization representing staff members of the United Nations has come out in support of dotgay LLC’s struggling community application for the .gay gTLD.

UN-GLOBE comprises UN employees who identify as “lesbian, gay, bisexual, transgender, and inter-sex”. Its primary goals are pushing for equal rights for these groups within the UN system.

In a letter to ICANN (pdf) earlier this month, the organization said it supports dotgay’s application, despite its Community Priority Evaluation being rejected twice.

The Economist Intelligence Unit’s judging panel has kicked out both of dotgay’s CPEs on the grounds that the applicant’s definition of “gay” includes straight people, and straight people aren’t gay.

But UN-GLOBE, echoing dotgay’s own view, wrote:

We also express our disagreement over the results of the Community Priority Evaluation of October 8, 2015 that rejected dotgay LCC’s community application based on its narrow analysis of the term gay. The term gay should be understood globally instead, as it is generally understood by the internationally diverse lesbian, gay, bisexual, transgender, queer, intersex, and ally (LGBTQIA) community represented in dotgay LLC’s application.

It might be worth noting that UN-GLOBE makes no mention of its own membership including “allies” — that is, people who are not LGBTQI but nevertheless support equal rights — in its letter or on its web site.

dotgay currently has an outstanding Request for Reconsideration against its latest CPE loss, which is expected to be decided by ICANN’s Board Governance Committee on Monday.

If ICANN closes the door on more appeals, the .gay contention set will go to auction where its rivals are Rightside, Top Level Design and Minds + Machines.

One way or another, there will be a .gay gTLD, the only question is whether it will be restricted to approved “gay community” members or open to all.

.shop gTLD sells for record $41.5 million

Kevin Murphy, January 28, 2016, Domain Registries

The nine-way fight for the .shop gTLD has raised $41.5 million at auction.

It’s the most-expensive reported new gTLD sale to date.

The victor was GMO Registry of Japan, which runs a few Asian geographic gTLDs and acts as service provider for over a dozen dot-brands.

GMO wanted .shop so badly it actually applied twice for the gTLD in the 2012 application round.

Only two bidders, GMO and an unidentified rival, were prepared to pay over $15 million, according to ICANN.

The previous record-holder for an ICANN gTLD auction was .app, which Google bought for a smidgen over $25 million last February.

Dozens of contention sets have “self resolved” via private auction, but the winning bids of those are typically not disclosed.

According to GMO’s .shop application, .shop will be an open, unrestricted namespace. The company seems to be planning to sell value-added e-commerce services in addition to domain names.

But domainers will not be welcome in the gTLD. GMO’s application reads:

Registration of a .SHOP domain name solely for the purpose of selling, exchanging, trading, leasing the domain name shall be deemed as inappropriate use or intent.

The company plans to do random spot checks to make sure no registrants are breaking this rule.

GMO is using CentralNic as its back-end registry services software provider, following a 2013 deal.

Radix, Famous Four, Donuts, Google, Amazon, 2000-round applicant Commercial Connect and a company called Beijing Jingdong 360 had all applied for .shop.

But according to ICANN only seven of the original applicants qualified for the auction.

One of the drop-outs was GMO itself. The company has actually applied for .shop twice — once as a regular applicant and once as a “community”.

The non-community application was the one that participated in the auction.

Unsuccessful community applicant Commercial Connect, which has been fighting for .shop since first applying for it in 2000, also did not participate.

On Tuesday, it filed a futile Request for Reconsideration (pdf) with ICANN, complaining about the fact that it lost its Community Priority Evaluation.

.shop was originally linked to .shopping, due to a badly decided String Similarity Objection, but that contention set was resolved separately by Donuts and Uniregistry last week.

ICANN tests emergency registry with dead dot-brand

Kevin Murphy, January 27, 2016, Domain Registries

ICANN is running a test of its Emergency Back-End Registry Operator program, using the dead dot-brand gTLD .doosan as its guinea pig.

Doosan Group, a large Korean conglomerate, decided to kill off its gTLD, .doosan, last September. ICANN revealed the news in October.

The dot-brand had never been put to productive use and really only ever had nic.doosan live.

As it’s a dot-brand, it’s protected by the part of the Registry Agreement that prevents it being transferred to another registry operator.

Rather than letting the gTLD slip away into the night, however, ICANN is taking it as an opportunity to test out its EBERO system instead. ICANN says:

Simulating an emergency registry operator transition will provide valuable insight into the effectiveness of procedures for addressing potential gTLD service interruptions. Lessons learned will be used to support ICANN’s efforts to ensure the security, stability and resiliency of the Internet and the Domain Name System.

EBERO is the process that is supposed to kick in when (or if, I guess) a gTLD with a significant number of third-party registrations goes out of business and no other registry wants to take it over.

The EBERO provider takes over the running of the TLD’s critical functions for a few years so it can be wound down in an orderly fashion, giving registrants enough time to migrate to other TLDs.

Nominet, one of the designated EBERO operators, has taken over .doosan for this test, which is only a temporary measure.

Its IANA record was updated today with Nominet named as the technical contact and ICANN as the sponsor and administrator. Its name servers have switched over to Nominet’s.

Right now, www.nic.doosan resolves to ICANN’s EBERO web page. The non-www. version doesn’t seem to do anything.

ICANN said it will provide updates when the test is over.