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.com-dominated NamesCon auction already has one million-dollar bid

Kevin Murphy, January 17, 2017, Domain Sales

There’s still about week to go until this year’s NamesCon conference kicks off in Las Vegas, but the live auction that will close the first day of the show has already seen pre-bidding action.

One batch of domains has already received a high bid of $1,010,000, but does not appear to have yet met its reserve.

The batch is led by bar.com, but also includes bar.net, cafes.com, grill.com, place.com, pub.com and shelter.com.

Another five domains on the list, all .com names, have attracted bids in six figures, topped by the $800,000 bid for ol.com.

The list of names up for pre-bid on NameJet (100 of which will hit the live auction) is dominated by Verisign TLDs — .com, obviously, and to a lesser extent .net and .tv.

The biggest pre-bid for a 2012-round gTLD is the $1,010 currently offered for gold.club, roughly 110th on the list as ordered by current bid.

The most active new gTLD auction is currently shoes.xyz, which has 28 bidders but a top bid of just $330.

I’m not sure how much can be inferred from pre-bids, but it certainly seems that most of the money from domain investors is still being put into short, one or two-word .com domains.

The auction will begin at 1500 US Pacific Time next Monday, January 23.

The auction is being managed and promoted by Right Of The Dot and NameJet. Would-be buyers need a NameJet account to participate.

Names not sold during the live event will go to an extended auction until February 9. ROTD’s Monte Cahn said this is in order to give Chinese bidders time to bid after Chinese New Year (January 28 this year).

Short .at domain auction raises over $1m

Kevin Murphy, November 30, 2016, Domain Sales

Nic.at’s three-stage auction of one and two-character .at domains has raised over $1 million.

Auction house Sedo announced today that over 1,000 .at names were sold, for a combined total of over $1 million.

The biggest-ticket name was c.at, which went for €56,000, according to Sedo.

Bidders were not restricted to Austria or German-speaking nations. Sedo said notable bids came in from China, the US and Canada.

Here’s the top-ten list, priced in euros:

c.at€€56,000
1.at€€26,008
at.at€€20,500
e.at€€12,500
b.at€€11,100
6.at€€11,001
d.at€€10,100
ep.at€€10,099
ch.at€€10,002
f.at€€10,000

.web could already be a record-breaker as auction enters day two

Kevin Murphy, July 28, 2016, Domain Sales

It seems likely that .web has already smashed through the $41.5 million record sale price for a new gTLD at ICANN auction.

The auction, which kicked off properly at 1300 UTC yesterday, seems to have ended its first day of bidding at around 2300 UTC last night without a winner.

That suggests, based on the rules and how previous auctions have played out, that we’re probably already looking at high bids over $50 million.

The previous top price for a gTLD at ICANN auction was .shop, which sold to GMO for $41.5 million earlier this year.

The signs are that .web will go for more.

Be warned, this is mostly informed guesswork. I don’t know what the current bids are.

ICANN auctions work in rounds. In each round the minimum bid is either $1 (for round one) or the previous round’s maximum bid (for all subsequent rounds).

The maximum bid in each round is set by the auctioneer, who has broad discretion, based on the action at the time.

The range between minimum and maximum bids seems to get bigger in each passing round, based on previous auction results.

According to ICANN auction rules (pdf) each bidding round lasts 20 minutes and is immediately followed by a 20-minute recess.

This schedule is somewhat flexible. It could be slowed down or sped up with the consent of all bidders.

The .web auction was due to kick off at 1300 UTC yesterday, according to court papers, though it seems probable that round-one bids were accepted the previous night.

The first day’s bidding was due to end at 2330 UTC yesterday.

So that’s over 10 hours of bidding yesterday, which works out to about 15 rounds if they stuck to the 40-minute round schedule.

When .shop sold for $41.5 million, it did so in just 14 rounds, carried out in a single day.

The final round of that auction saw an acceptable bidding range of $36.8 million to $46 million — an almost $10 million spread.

So, if we can assume that there were at least 15 rounds in the .web auction yesterday and we can assume that the auctioneer is following a similar playbook to the .shop auction, the maximum bid when the auction paused overnight was likely well over $50 million.

By the time you read this, this guesswork could be moot anyway. I expect we’ll find out later today whether those assumptions were accurate. It seems unlikely that a third day’s bidding will be required.

The applicants for .web are NDC, Radix, Donuts, Schlund, Afilias, Google and Web.com. Vistaprint’s bid for .webs is also in the auction.

Instagram paid Chinese cyberquatter $100,000 for instagram.com, Facebook lawsuit reveals

Kevin Murphy, January 20, 2016, Domain Sales

Facebook has sued a Chinese cybersquatter for trying to renege on a five-year-old deal that saw it buy the domain instagram.com for $100,000.

The lawsuit, filed in California last week, claims that a family of known cybersquatters, based in Guangdong, is trying to have the purchase invalidated by a Chinese court.

The company, which acquired Instagram for $1 billion in 2012, wants the court to rule that the domain deal was legal, preventing the cybersquatters retaking control of the domain.

Photo-sharing app Instagram launched in October 2010 using the domain instagr.am.

At that time, instagram.com was owned by a US-based domain investor, but it was bought by Zhou Weiming about a month later.

Zhou, Facebook says, was the now-dead father of three of the people it is suing, and the husband of the fourth.

When Zhou purchased the domain, Instagram had become wildly popular, well on the way to hitting the million-user mark in December 2010.

Instagram had applied for the US trademark on its name in September 2010, less than a month before its launch.

The company made the decision to pay $100,000 for the domain in January 2011.

The Whois information for instagram.com changed from Zhou Weiming to Zhou Murong, apparently his daughter, around about the same time, though the registrant email address did not change.

The purchase was processed by Sedo, according to a copy of the deal filed as evidence (pdf).

Now, Murong’s mother and sisters are suing her and Instagram in China, claiming she did not have the authority to sell the domain, according to Facebook’s complaint.

Facebook claims the Chinese suit is a “sham” and that the whole Zhou family is acting in concert.

The company wants the California court to declare that the sale was valid, and that registrar MarkMonitor should not be forced to transfer the domain back to the Zhous.

Facebook in 2014 won a 22-domain UDRP case against Murong Zhou, related to typos of its Instagram trademark.

Read the full California complaint as a PDF here.

Top 2015 new gTLD sale looks like cybersquatting

Kevin Murphy, January 8, 2016, Domain Sales

One of the top secondary market domain sales of 2015, as reported by Sedo, appears to be a case of somebody selling a domain matching a trademark to the trademark’s owner.

According to a press release yesterday, the domain basic-fit.fitness was the third-priciest reportable new gTLD domain sale handled by Sedo last year.

It went for €7,949 ($8,634).

Given that it’s not intrinsically an attractive-looking domain, I tried to figure out why it sold.

Judging by Whois records, the buyer is the corporate owner of Basic-Fit, a chain of over 300 gyms in four European countries.

It has at least one trademark on “Basic-Fit”.

The original registrant, according to records cached by DomainTools, was a Belgian web designer.

The domain seems to have changed hands around May last year. In April, it spent a couple of weeks under Whois privacy.

The domain was registered August 27, 2014, the day .fitness exited its Early Access Period and domains were available at regular prices.

It seems the same Belgian web designer owns several more new gTLD domain names matching brands that are parked with Sedo and available to buy instantly.

Many are .immo (“.realestate”) domains matching the brands of Belgian real estate firms. There are also a few .beer domains under his name matching the brands of breweries and beers in the UK, US and Czech Republic.

It’s not unheard of for web developers to register domains on behalf of clients. It’s rather less common for them to then list them for sale, with buy-now prices, on domain marketplaces.

Looks dodgy to me.