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Donuts bought .reise

Donuts has been confirmed by a German news site as the new owner of .reise, which was auctioned by its previous owner last week.

It was the first time a live gTLD had been sold at auction.

The deal, which is believed to have cost Donuts at least $400,000, means the company now owns .reise and .reisen.

Both mean “.travel”. According to my GCSE German skillz, last exercised 22 years ago, .reisen is a verb and .reise is a noun, but .reisen is also the plural of the noun .reise.

I believe this means that Donuts is the first company to own both the plural and singular forms of a new gTLD string.

Heise Online reports that former registry Dotreise was forced to sell up due to competition from Donuts.

Donuts’ .reisen has over 4,000 names in its zone file, compared to .reise’s 1,300. It’s a small market so far, but Donuts has the lion’s share.

The article notes that Donuts got a better position in ICANN’s prioritization draw in late 2012, meaning it got to market slightly earlier. Donuts also sells for a much lower price.

I doubt time to market was as much of a factor as price.

But it might be interesting to note that while Donuts’ advantage was just six days in terms of contract-signing, that lead had been extended to six weeks by the time .reise was delegated.

Donuts, which has more experience than any other company when it comes to the transition to delegation process, managed to hit general availability two weeks sooner than .reise, even though Donuts’ sunrise period was twice as long.

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ICANN wins .hotels/.hoteis confusion appeal but has to pay up anyway

Kevin Murphy, March 5, 2015, Domain Policy

The proposed new gTLDs .hotels and .hoteis are too confusingly similar to coexist on the internet.

That’s the result of an Independent Review Process decision this week, which denied .hotels applicant Booking.com’s demand to have ICANN’s string confusion decision overturned.

But the IRP panel, while handing ICANN a decisive victory, characterized the string confusion and IRP processes as flawed and said ICANN should have to pay half of the panel’s $163,000 costs.

Booking.com filed the IRP a year ago, after the new gTLD program’s String Similarity Panel said in February 2013 that .hotels was too similar to rival Despegar Online’s proposed .hoteis.

.hoteis is the Portuguese translation of .hotels. Neither string was contested, so both would have been delegated to the DNS root had it not been for the confusion decision.

In my view, the String Similarity Panel’s decision was pretty sound.

With an upper-case i, .hoteIs is virtually indistinguishable from .hotels in browsers’ default sans-serif fonts, potentially increasing the ease of phishing attacks.

But Booking.com, eager to avoid a potentially costly auction, disagrees with me and, after spending a year exhausting its other avenues of appeal, filed an IRP in March 2013.

The IRP decision was handed down on Tuesday, denying Booking.com’s appeal.

The company had appealed based not on the merits of the SSP decision, but on whether the ICANN board of directors had acted outside of its bylaws in establishing an “arbitrary” and opaque SSP process.

That’s because the IRP process as established in the ICANN bylaws does not allow appellants to changed a decision on the merits. IRP panels are limited to:

comparing contested actions of the Board to the Articles of Incorporation and Bylaws, and with declaring whether the Board has acted consistently with the provisions of those Articles of Incorporation and Bylaws.

The IRP panel agreed that the SSP process could have been fairer and more transparent, by perhaps allowing applicants to submit evidence to the panel and appeal its decisions, saying:

There is no question but that that process lacks certain elements of transparency and certain practices that are widely associated with requirements of fairness.

But the IRP panel said Booking.com was unable to show that the ICANN board acted outside of its bylaws, highlighting the limits of the IRP as an appeals process:

In launching this IRP, Booking.com no doubt realized that it faced an uphill battle. The very limited nature of the IRP proceedings is such that any IRP applicant will face significant obstacles in establishing that the ICANN Board acted inconsistently with ICANN’s Articles of Incorporation or Bylaws. In fact, Booking.com acknowledges those obstacles, albeit inconsistently and at times indirectly.

Booking.com has failed to overcome the very obstacles it recognizes exist.

The IRP panel quoted members of ICANN’s New gTLD Program Committee extensively, highlighting comments which questioned the fairness of the SSP process.

In contrast to usual practice, where the losing party in an IRP bears the costs of the case, this panel said the $163,000 costs and $4,600 filing fee should be split equally between ICANN and Booking.com:

we can — and we do — acknowledge certain legitimate concerns regarding the string similarity review process raised by Booking.com, discussed above, which are evidently shared by a number of prominent and experienced ICANN NGPC members.

In view of the circumstances, each party shall bear one-half of the costs of the IRP provider

Booking.com and Despegar will now have to fight it out for their chosen strings at auction.

The full decision can be read in PDF format here. Other documents in the case can be found here.

The TL;DR version: ICANN wins because it has stacked the appeals deck in its favor and the IRP process is pretty much useless, so we’re going to make them pay up for being dicks.

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Neustar set to lose contract that provides HALF its revenue

Neustar has been devastated by the news that it is likely to lose a US government contract that provides almost half of its annual revenue.

The US Federal Communications Commission yesterday recommended that Telcordia Technologies take over the Local Number Portability Administrator contract, which Neustar has held since 1997.

The service is basically North America’s centralized phone number registry. It’s not directly related to its domain name businesses.

In 2014, the deal was worth $474.8 million to Neustar, or 49% of its annual revenue.

On the news, the company’s share price fell off a cliff, losing almost 20% of its value before recovering slightly to end the day almost 12% down.

Neustar expressed dismay and anger in a press release, saying the FCC was putting the security of the US phone system at risk:

Although apparently the LNPA is used to port numbers, it is also critical for technology migrations, mergers and acquisitions, disaster recovery, accurate 911 location, and is the only authoritative database for the proper call completion of 11 billion voice calls and text messages each day. The recommendation misunderstands the operating system and would harm public safety, law enforcement, fundamentally burden small carriers, and disrupt service for 12 million consumers — all in pursuit of theoretical savings for a few carriers, which Neustar believes will be dwarfed by the costs and risks of transition.

Switching to Telcordia is currently only a recommendation that FCC commissioners must approve, and Neustar said it will “review all of its options”.

The LNPA deal is due to expire June 30 this year.

Neustar’s domain business — or “security services” as the company calls it — comprises DNS resolution, the registries for .us, .biz and .co, and the back-end registry for many new gTLDs. It brought in revenue of $140.3 million in 2014.

According to Reuters, Neustar is currently talking to advisers about the potential sale of the company, which is currently listed on the New York Stock Exchange, to private equity.

The potential buyers are reportedly waiting for the award of the number portability contract before sealing the deal.

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Live gTLD .reise sold at auction

Kevin Murphy, March 3, 2015, Domain Sales

The first auction of a live new gTLD resulted in a sale, I can reveal.

Dotreise’s .reise, which is German for “.travel”, changed hands in an auction managed by Applicant Auction last Friday.

Unfortunately, I haven’t been able to identify the winning bidder or the winning bid, but the winner’s identity will inevitably be revealed sooner or later.

Applicant Auction had said there was to be a $400,000 starting bid on the gTLD.

.reise has been general availability since August but has only about 1,300 names in its zone file. It retails for up to $180 a year.

If the TLD’s new owner is not Donuts, the company will find itself competing with Donuts’ much cheaper and more popular .reisen.

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Tucows and Namecheap exit $14m .online deal

Tucows and Namecheap have both pulled out of their joint venture with Radix to run the .online registry.

Tucows revealed the move, which will see Radix run .online solo, in a press release yesterday.

Both Tucows and Namecheap are registrars, whereas Radix is pretty much focused on being a registry nowadays.

While financial terms have not been disclosed, Tucows CEO Elliot Noss had previously said that each of the three companies had funded the new venture to the tune of $4 million to $5 million.

I estimate that this puts the total investment in the deal — which includes the price of winning .online at auction — at $13 million to $14 million.

Noss has also hinted that the gTLD sold for much more than the $6.8 million paid for .tech.

.online has not yet been delegated.

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