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Buy a $10k .club, get a free T-shirt

Kevin Murphy, December 13, 2016, Domain Registries

.CLUB Domains will today release 9,200 previously reserved .club names into the channel at premium prices.
Club T-ShirtThe registry is also offering free T-shirts to the first 500 people to purchase a premium name for $59.99 and more, personalized with said name.
While the names will become available at 1500 UTC today, the full list is not expected to be published until midnight UTC at landrush.club
CMO Jeff Sass gave the following list of examples of names to be released: watches.club, vino.club, ocean.club, elite.club, driving.club, comicbook.club, Chinese.club and gambling.club.
A thousand of the names are three-character strings.
The first-year prices are suggest at between $100 and $10,000 at the retail level, Sass said.
All premium names renew at standard-name pricing, he said.
The T-shirt offer requires the user to tweet using promotional hashtags and expires December 31.

Spot all the Easter eggs in this Radix mannequin viral [NSFW]

Kevin Murphy, December 7, 2016, Domain Registries

Domain registry Radix has shamelessly jumped on the “mannequin challenge” meme bandwagon, with the release of video plugging its forthcoming .fun gTLD.
It’s quite slickly produced, on the face of it shot in a single unbroken take (though I suspect there are a few edits hidden in the motion blur), but the real fun for me, as someone who’s obviously been working alone from his mother’s basement for the last decade, is having a nosey around the office of a modern tech company.
Radix, it seems, names its meeting rooms after Harry Potter characters and festoons its walls with inspirational quotes from self-help books.

There are a few visual gags too. One employee has hit the bottom of a bottle of Jack Daniels, presumably celebrating the wish-fulfilling sales figures we see on another’s monitor.
Another seems to be trying to offload a stack of banned Rs 500 and Rs 1000 notes on a colleague. Topical satire, kids!
Did you spot anything else amusing?
NB: If you’re wondering why a respectable company would produce a video backed with profane, sexist and sexually explicit lyrics, a young person I know assures me that using Rae Sremmurd’s chart-topper “Black Beatles” as the soundtrack is a standard component of the mannequin challenge meme.
UPDATE: Seems Key-Systems has done one too.

.xyz, .club and .vip get the nod to sell in China

Kevin Murphy, December 5, 2016, Domain Registries

The Chinese government has granted licenses to operate in the country to its first tranche of new gTLDs — .vip, .club and .xyz.
The agreements mean that Chinese registrars will be able to give their Chinese customers the ability to actually use their domains for web sites.
It also means the companies will be obliged to censor domains the government does not like, but only those domains registered via Chinese registrars.
The Ministry of Industry and Information Technology announced the licenses, given to the Chinese subsidiaries of Minds + Machines, .CLUB Domains and XYZ.com respectively, today.
M+M CEO Toby Hall told DI that it’s “a great moment of support for Chinese registrars”, giving them a “very clear signal about which TLDs they can focus on”.
XYZ.com said in a blog post that some of its Chinese registrars (its biggest channel) are planning on offering discounts to celebrate the approval.
It’s always been possible for Chinese people to register new gTLD domains via Chinese registrars — it’s estimated that 42% of the 27 million new gTLD domains in existence today are Chinese-owned.
However, Chinese citizens need a government license if they want to launch a web site, and the government only issues licenses for domains in approved TLDs.
In addition to .cn and China-based gTLDs, which were the first to be given the nod, Verisign was approved earlier this year for .com.
Hall said that while .vip has been popular with Chinese domainers, the MIIT license means it can start to tap the small business market there too.
Obtaining the license means that the three registries, which are all based in the US or Europe, will have to comply with Chinese regulations when it comes to Chinese customers.
That basically means the Chinese government gets to censor pretty much anything it doesn’t like, up to and including sites that “spread rumors”.
Hall said that there’s no chance of this censorship bleeding out to affect non-Chinese customers.
M+M, along with XYZ and .CLUB, are using Chinese registry gateway ZDNS to act as a proxy between their own back-ends (Nominet for .vip, Neustar for .club and CentralNic for .xyz) and Chinese registrars.
“All of our Chinese web sites go through ZDNS, so only web sites going through ZDNS would be affected,” Hall said, referring to the censorship rules.
Hall added that he was “not aware” of there being a blocklist of politically sensitive strings that Chinese customers are not allowed to register.

Donuts loses $22.5m .web lawsuit as judge rules gTLD applicants cannot sue

Kevin Murphy, November 30, 2016, Domain Registries

The promise not to sue ICANN that all new gTLD applicants made when they applied is legally enforceable, a California judge has ruled.
Judge Percy Anderson on Monday threw out Donuts’ lawsuit against ICANN over the controversial $135 million .web auction, saying the “covenant not to sue bars Plaintiff’s entire action”.
He wrote that he “does not find persuasive” an earlier and contrary ruling in the case of DotConnectAfrica v ICANN, a case that is still ongoing.
Donuts sued ICANN at first to prevent the .web auction going ahead.
The registry, and other .web applicants, were concerned that ultimately successful bidder Nu Dot Co was being covertly bankrolled by Verisign, which turned out to be completely correct.
Donuts argued that ICANN failed to adequately vet NDC to uncover its secret sugar daddy. It wanted $22.5 million from ICANN — roughly what it would have received if the auction had been privately managed, rather than run by ICANN.
But the judge ruled that Donuts’ covenant not to sue is enforceable. Because of that, he made no judgement on the merits of Donuts’ arguments.
Under the relevant law, Donuts had to show that the applicant contract was “unconscionable” both “procedurally” and “substantively”.
Basically, the question for the judge was: was the contract unfairly one-sided?
The judge ruled (pdf) that it was not substantively unconscionable and “only minimally procedurally unconscionable”. In other words: a bit crap, but not illegal.
He put a lot of weight on the fact that the new gTLD program was designed largely by the ICANN community and on Donuts’ business “sophistication”. He wrote:

Without the covenant not to sue, any frustrated applicant could, through the filing of a lawsuit, derail the entire system developed by ICANN to process applications for gTLDs. ICANN and frustrated applicants do not bear this potential harm equally. This alone establishes the reasonableness of the covenant not to sue.

Donuts VP Jon Nevett said in a statement yesterday that the fight over .web is not over:

Donuts disagrees with the Court’s decision that ICANN’s required covenant not to sue, while being unconscionable, was not sufficiently unconscionable to be struck down as a matter of law. It is unfortunate that the auction process for .WEB was mired in a lack of transparency and anti-competitive behavior. ICANN, in its haste to proceed to auction, performed only a slapdash investigation and deprived the applicants of the right to fairly compete for .WEB in accordance with the very procedures ICANN demanded of applicants. Donuts will continue to utilize the tools at its disposal to address this procedural failure.

It looks rather like we could be looking at an Independent Review Process filing, possibly the first to be filed under ICANN’s new post-transition rules.
Donuts and ICANN are already in the Cooperative Engagement Process — the mediation phase that usually precedes an IRP — with regards .web.
Second-placed bidder Afilias is also putting pressure on ICANN to overturn the results of the auction, resulting in a bit of a public bunfight with Verisign.
TL;DR — don’t expect to be able to buy .web domains for quite a while to come.

After shaky start, .blog launches today

Kevin Murphy, November 21, 2016, Domain Registries

The new gTLD .blog goes into general availability today, after some mild controversy about the way the registry allocated reserved domain names.
Knock Knock Whois There, the registry affiliated with WordPress maker Automattic, last week apologized to some would-be customers for declining to honor some landrush pre-registrations.
Some registrants had complained that domains that were accepted for pre-registration were subsequently added to KKWT’s list of registry-reserved names, making them unavailable for registration.
KKWT said in a blog post Thursday that the confusion was due to it not having finalized its reserved list until just before its landrush period kicked off, November 2.
Registrars, including those accepting pre-registrations, were not given the final lists until the last minute.
Landrush applications cost around $250 but were refundable.
KKWT also revealed the make-up of its founders program domains, the 100-strong list of names it was allowed to allocate pre-sunrise.
The founders program currently seems to be a bit of a friends-and-family affair.
Of the 25 live founder sites currently listed, about 20 appear to be owned by the registry, its employees and close affiliates.
The registry said in its blog post that 25 super-generic domains had been given to WordPress.com. It seems the blog host will offer third-level names in these domains for free to its customers.
.blog had 1,743 domains in its zone file yesterday.
General availability starts about 30 minutes from the time this post was posted, at 1500 UTC. Prices are around the $30 mark.

Famous Four exec moves to CentralNic

Kevin Murphy, November 21, 2016, Domain Registries

Famous Four Media has lost its chief marketing officer to CentralNic.
Andy Churley joined the London-based registry services provider as group marketing manager this month, according to press release.
He’s been with FFM for the first few years of its entry into the gTLD game, overseeing the launches of cheap TLDs such as .science, .download and .bid.
Previously, he was with the registrar Group NBT.
CentralNic now of course is also in the registrar business, having acquired Internet.bs and Instra over the last few years.

.food goes live, and it’s a closed generic

Kevin Murphy, November 15, 2016, Domain Registries

The new gTLD .food went live in the DNS on Friday, but nobody except the registry will be able to register domains there.
In what I would argue is one of the new gTLD program’s biggest failures, .food will be a dot-brand, closed to all except the “brand” owner.
The registry is Lifestyle Domain Holdings, a subsidiary of US media company Scripps Networks.
Scripps runs the Food Network TV station in the States and the site Food.com. It has a trademark on the word “Food”.
Its registry agreement for .food, signed back in April, includes Specification 13, which allows registries to restrict all the second-level domains to themselves and their affiliates.
So food producers, restaurants, chefs and the like will never be able to use .food for their web sites.
ICANN signed the contract with Scripps despite objections from several entities including the Australian government, which warned “restricting common generic strings, such as .food, for the exclusive use of a single entity could have a negative impact on competition”.
Under ICANN rules hastily cobbled together after outrage over so-called “closed generics”, a registry cannot run as a dot-brand a gTLD that is:

a string consisting of a word or term that denominates or describes a general class of goods, services, groups, organizations or things, as opposed to distinguishing a specific brand of goods, services, groups, organizations or things from those of others.

Almost all applications flagged as closed generics were subsequently amended to make them restricted but not brand-exclusive. Scripps was the major hold-out.
The loophole that allowed .food to stay in exclusive hands appears to be that Scripps’ trademark on “Food” covers television, rather than food.
If .food winds up publishing content about food, such as recipes and healthy eating advice, I’d argue that it would go against the spirit of the rules on closed generics.
It would be a bit like Apple getting .apple as a Spec 13 dot-brand and then using the gTLD to publish content about the fruit rather than computers.
No sites are currently live in .food.

Afilias retains .org back-end deal

Kevin Murphy, November 15, 2016, Domain Registries

Public Interest Registry is sticking with Afilias to run the .org registry back-end.
The announcement came yesterday after a open procurement process that lasted for most of 2016.
Over 20 back-end providers from 15 nations — basically the entire industry — responded to PIR’s February request for proposals, we reported back in March.
Afilias retaining the contract is not a huge surprise. The bidding process was widely believed to be a way for non-profit PIR to reduce its costs, believed to be among the highest in the industry.
PIR said yesterday:

Afilias was selected as the best value solution based on the objective criteria and requirements set forth in Public Interest Registry’s procurement process. It is anticipated that Afilias will commence operations under the new contractual agreement on Jan. 1, 2018.

It’s very likely that the new deal will be worth a lot less to Afilias than the current arrangement, which costs PIR about $33 million per year.
In 2013, the last year for which we have Afilias’ financials, .org brought in $31 million of its $77 million revenue.
It’s believed that PIR is currently paying about $3 per domain per year, but Kieren McCarthy at The Register, citing unnamed industry sources, reckons that’s now been bumped down to $2, saving PIR about $10 million per year.
The .org gTLD has about 11.2 million domains under management, but its numbers have been slipping for several months, according to registry reports.

GMO offers free SSL with .shop domains

Kevin Murphy, November 14, 2016, Domain Registries

GMO Registry is to offer .shop domain registrants a free one-year SSL certificate with every purchase.
The company said yesterday that the deal, made via sister certificate company GMO GlobalSign, should be in place by the end of the month.
The certs on offer appear to be the of low-end “Domain Validation” variety.
Nevertheless, GlobalSign usually sells them for over $150 per year, many times more expensive than .shop domains themselves.
Popular registrars are currently selling .shop names from $10 to $25.
There are about 90,000 domains in .shop’s zone file today.
That’s a goodish volume by new gTLD standards, but probably not good enough to help GMO recoup the $41.5 million it paid for .shop at auction any time soon.
Upsell opportunities such as the SSL offer, assuming they get any uptake, may help accelerate its path to breakeven.

Verisign and Afilias in open war over $135m .web

Kevin Murphy, November 11, 2016, Domain Registries

Two of the industry’s oldest and biggest gTLD registries escalated their fight over the .web gTLD auction this week, trading blows in print and in public.
Verisign, accused by Afilias of breaking the rules when it committed $130 million to secure .web for itself, has now turned the tables on its rival.
It accuses Afilias of itself breaking the auction rules and of trying to emotionally blackmail ICANN into reversing the auction on spurious political grounds.
The .web auction was won by obscure shell-company applicant Nu Dot Co with a record-setting $135 million bid back in July.
It quickly emerged, as had been suspected for a few weeks beforehand, that Verisign was footing the bill for the NDC bid.
The plan is that NDC will transfer its .web ICANN contract to Verisign after it is awarded, assuming ICANN consents to the transfer.
Afilias has since revealed that it came second in the auction. It now wants ICANN to overturn the result of the auction, awarding .web to Afilias as runner-up instead.
The company argues that NDC broke the new gTLD Applicant Guidebook rules by refusing to disclose that it had become controlled by Verisign.
It’s now trying to frame the .web debate as ICANN’s “first test of accountability” under the new, independent, post-IANA transition regime.
Afilias director Jonathan Robinson posted on CircleID:

If ICANN permits the auction result to stand, it may not only invite further flouting of its rules, it will grant the new TLD with the highest potential to the only entity with a dominant market position. This would diminish competition and consumer choice and directly contradict ICANN’s values and Bylaws.

Given the controversy over ICANN’s independence, all eyes will be on the ICANN board to see if it is focused on doing the right thing. It’s time for the ICANN board to show resolve and to demonstrate that it is a strong, independent body acting according to the letter and spirit of its own AGB and bylaws and, perhaps most importantly of all, to actively demonstrate its commitment to act independently and in the global public interest.

Speaking at the first of ICANN’s two public forum sessions at ICANN 57 in Hyderabad, India this week, Robinson echoed that call, telling the ICANN board:

You are a credible, independent-minded, and respected board who recognized the enhanced scrutiny that goes with the post-transition environment. Indeed, this may well be the first test of your resolve in this new environment. You have the opportunity to deal with the situation by firmly applying your own rules and your own ICANN bylaw-enshrined core value to introduce and promote competition in domain names. We strongly urge you to do so.

Then, after a few months of relative quiet on the subject, Verisign and NDC this week came out swinging.
First, in a joint blog post, the companies rubbished Afilias’ attempt to bring the IANA transition into the debate. They wrote:

Afilias does a great disservice to ICANN and the entire Internet community by attempting to make this issue a referendum on ICANN by entitling its post “ICANN’s First Test of Accountability.” Afilias frames its test for ICANN’s new role as an “independent manager of the Internet’s addressing system,” by asserting that ICANN can only pass this test if it disqualifies NDC and bars Verisign from acquiring rights to the .web new gTLD. In this case, Afilias’ position is based on nothing more than deflection, smoke and cynical self-interest.

Speaking at the public forum in Hyderabad on Wednesday, Verisign senior VP Pat Kane said:

This is not a test for the board. This issue is not a test for the newly empowered community. It is a test of our ability to utilize the processes and the tools that we’ve developed over the past 20 years for dispute resolution.

Verisign instead claims that Afilias’ real motivation could be to force .web to a private auction, where it can be assured an eight-figure payday for losing.
NDC/Verisign won .web at a so-called “last resort” auction, overseen by ICANN, in which the funds raised go into a pool to be used for some yet-to-be-determined public benefit cause.
That robbed rival applicants, including Afilias, of the equal share of the proceeds they would have received had the contention set been settled via the usual private auction process.
But Verisign/NDC, in their post, claim Afilias wants to force .web back to private auction.

Afilias’ allegations of Applicant Guidebook violations by NDC are nothing more than a pretext to conduct a “private” instead of a “public” auction, or to eliminate a competitor for the .web new gTLD and capture it for less than the market price.

Verisign says that NDC was under no obligation to notify ICANN of a change of ownership or control because no change of ownership or control has occurred.
It says the two companies have an “arms-length contract” which saw Verisign pay for the auction and NDC commit to ask ICANN to transfer its .web Registry Agreement to Verisign.
It’s not unlike the deal Donuts had with Rightside, covering over a hundred gTLD applications, Verisign says.

The contract between NDC and Verisign did not assign to Verisign any rights in NDC’s application, nor did Verisign take any ownership or management interest in NDC (let alone control of it). NDC has always been and always will be the owner of its application

Not content with defending itself from allegations of wrongdoing, Verisign/NDC goes on to claim that it is instead Afilias that broke ICANN rules and therefore should have disqualified from the auction.
They allege that Afilias offered NDC a guarantee of a cash payout if it chose to go to private auction instead, and that it attempted to coerce NDC to go to private auction on July 22, which was during a “blackout period” during which bidders were forbidden from discussing bidding strategies.
During the public forum sessions at ICANN 57, ICANN directors refused to comment on statements from either side of the debate.
That’s likely because it’s a matter currently before the courts.
Fellow .web loser Donuts has already sued ICANN in California, claiming the organization failed to adequately investigate rumors that Verisign had taken over NDC.
Donuts failed to secure a restraining order preventing the .web auction from happening, but the lawsuit continues. Most recently, ICANN filed a motion attempting to have the case thrown out.
In my opinion, arguments being spouted by Verisign and Afilias both stretch credulity.
Afilias has yet to present any smoking gun showing Verisign or NDC broke the rules. Likewise, Verisign’s claim that Afilias wants to enrich itself by losing a private auction appear to be unsupported by any evidence.