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.web auction to go ahead after ICANN denies Donuts/Radix appeal

The new gTLD .web seems set to go to auction next week after ICANN rejected an 11th-hour delay attempt by two applicants.

ICANN’s Board Governance Committee said yesterday that there is no evidence that applicant Nu Dot Co has been taken over by a deep-pocketed third party.

The BGC therefore rejected Donuts’ and Radix’s joint attempt to have the July 27 “last resort” auction delayed.

Donuts and Radix had argued in a Request for Reconsideration earlier this week that Nu Dot Co has changed its board of directors since first applying for .web, which would oblige it to change the application.

Its failure to do so meant they auction should be delayed, they said.

They based their beliefs on an email from NDC director Jose Ignacio Rasco, in which he said one originally listed director was no longer involved with the application but that “several others” were.

There’s speculation in the contention set that a legacy gTLD operator such as Verisign or Neustar might now be in control of NDC.

But the BGC said ICANN had already “diligently” investigated these claims:

in response to the Requesters’ allegations, ICANN did diligently investigate the claims regarding potential changes to Nu Dot’s leadership and/or ownership. Indeed, on several occasions, ICANN staff communicated with the primary contact for Nu Dot both through emails and a phone conversation to determine whether there had been any changes to the Nu Dot organization that would require an application change request. On each occasion, Nu Dot confirmed that no such changes had occurred, and ICANN is entitled to rely upon those representations.

ICANN staff had asked Rasco via email and then telephone whether there had been any changes to NDC’s leadership or control, and he said there had not.

He is quoted by he BGC as saying:

[n]either the ownership nor the control of Nu Dotco, LLC has changed since we filed our application. The Managers designated pursuant to the company’s LLC operating agreement (the LLC equivalent of a corporate Board) have not changed. And there have been no changes to the membership of the LLC either.

The RfR has therefore been thrown out.

Unless further legal action is taken, the auction is still scheduled for July 27. The deadline for all eight applicants (seven for .web and one for .webs) to post deposits with ICANN passed on Wednesday.

As it’s a last resort auction, all funds raised will go into an ICANN pot, the purpose of which has yet to be determined. The winning bid will also be publicly disclosed.

Had the contention set been settled privately, all losing applicants would have made millions of dollars of profit from their applications and the price would have remained a secret.

NDC is the only applicant refusing to go to private auction.

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

The RfR decision can he read here (pdf).

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One and two-letter .at domains coming soon

Nic.at will next month start selling .at domains shorter than three character domains for the first time.

All one-character and two-character domains will be released, the ccTLD registry said, about 5,000 domains in total.

The released domains include those containing any of the 34 non-Latin letters Nic.at supports, it said.

Holders of trademarks valid in Austria before July 1 get the first crack at the names, during a August 29 to September 23 sunrise period.

During this phase, domains will cost €240 ($265) with a €120 ($132) application fee. Contested sunrise names will be auctioned in October.

Everything not grabbed by trademark interests will be put to a public auction from November 7, where the minimum bid will be €72 ($79).

If there’s anything left after that, it will be released into the general available pool for registration at standard .at prices.

Nic.at plans to dump all registered one and two-character domains into the .at zone file, so they can be used, at the same time on December 6.

Austria has no local presence requirements for ccTLD registration.

Given “at” has some semantic value in English, it could be a popular launch.

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ICANN to flip the secret key to the internet

Kevin Murphy, July 20, 2016, Domain Tech

ICANN is about to embark on a year-long effort to warn the internet that it plans to replace the top-level cryptographic keys used in DNSSEC for the first time.

CTO David Conrad told DI today that ICANN will rotate the so-called Key Signing Key that is used as the “trust anchor” for all DNSSEC queries that happen on the internet.

Due to the complexity of the process, and the risk that something might go wrong, the move is to be announced in the coming days even though the new public key will not replace the existing one until October 2017.

The KSK is a cryptographic key pair used to sign the Zone Signing Keys that in turn sign the DNS root zone. It’s basically at the top of the DNSSEC hierarchy — all trust in DNSSEC flows from it.

It’s considered good practice in DNSSEC to rotate keys every so often, largely to reduce the window would-be attackers have to compromise them.

The Zone Signing Key used by ICANN and Verisign to sign the DNS root is rotated quarterly, and individual domain owners can rotate their own keys as and when they choose, but the same KSK has been in place since the root was first signed in 2010.

Conrad said that ICANN is doing the first rollover partly to ensure that the procedures in has in place for changing keys are effective and could be deployed in case of emergency.

That said, this first rotation is going to happen at a snail’s pace.

Key generation is a complex matter, requiring the physical presence of at least three of seven trusted key holders.

These seven individuals possess physical keys to bank-style strong boxes which contain secure smart cards. Three of the seven cards are needed to generate a new key.

Each of the quarterly ZSK signing ceremonies — which are recorded and broadcast live over the internet — takes about five hours.

The first step in the rollover, Conrad said, is to generate the keys at ICANN’s US east coast facility in October this year. A copy will be moved to a facility on the west coast in February.

The first time the public key will appear in DNS will be July 11, 2017, when it will appear alongside the current key.

It will finally replace the current key completely on October 11, 2017, by which time the DNS should be well aware of the new key, Conrad said.

There is some risk of things going wrong, which could affect domains that are DNSSEC-signed, which is another reason for the slowness of the rollover.

If ISPs that support DNSSEC do not start supporting the new KSK before the final switch-over, they’ll fail to correctly resolve DNSSEC-signed domains, which could lead to some sites going dark for some users.

There’s also a risk that the increased DNS packet sizes during the period when both KSKs are in use could cause queries to be dropped by firewalls, Conrad said.

“Folks who have things configured the right way won’t actually need to do anything but because DNSSEC is relatively new and this software hasn’t really been tested, we need to get the word out to everyone that this change is going to be occurring,” said Conrad.

ICANN will conduct outreach over the coming 15 months via the media, social media and technology conferences, he said.

It is estimated that about 20% of the internet’s DNS resolvers support DNSSEC, but most of those belong to just two companies — Google and Comcast — he said.

The number of signed domains is tiny as a percentage of the 326 million domains in existence today, but still amounts to millions of names.

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Donuts joins fight to delay .web gTLD auction with emergency appeal

Donuts and Radix have filed an “emergency” appeal with ICANN in an attempt to get the forthcoming auction for the .web gTLD delayed.

The companies, both of which have applied for .web, say they have evidence that one of their rival bidders recently changed ownership without telling ICANN, in breach of application rules.

They filed a Request for Reconsideration (pdf) with ICANN (pdf) on Sunday, demanding the delay and an investigation into whether Nu Dot Co LLC is under new control.

The move follows speculation, which we reported last week, that Nu Dot Co is now being controlled by a major legacy gTLD registry player such as Verisign.

The evidence for the the change of ownership comes to light for the first time in the RfR. It’s an email from Nu Dot Co director Jose Ignacio Rasco to Donuts dated June 7. It reads:

Nicolai is at NSR full time and no longer involved with our TLD applications. I’m still running our program and Juan sits on the board with me and several others.

“Nicolai” is Nicolai Bezsonoff, who is listed as an NDC director in its .web application. NSR is presumably Neustar, where Bezsonoff went to work when it acquired .CO Internet.

“Juan” is Juan Calle, the third NDC director, CEO, and former CEO of .CO Internet.

Donuts and Radix believe that Bezsonoff’s departure and the apparent appointment of the unnamed “several others” as NDC directors gave NDC the obligation, under Applicant Guidebook rules, to inform ICANN of the changes.

The Guidebook states:

If at any time during the evaluation process information previously submitted by an applicant becomes untrue or inaccurate, the applicant must promptly notify ICANN via submission of the appropriate forms. This includes applicant-specific information such as changes in financial position and changes in ownership or control of the applicant.

(With that in mind, one wonders whether the acquisition of .blog at auction was strictly legit).

Donuts and Radix now want ICANN to delay the “last resort” auction, which is currently slated for July 27, and “conduct a thorough and transparent investigation into the apparent discrepancies and/or changes in NDC’s .WEB/.WEBS application”.

NDC is believed to be the only one of the eight .web/.webs applicants to be refusing to settle the contention set via a private auction, where the losers get an equal share of the winning bid.

If the set goes to ICANN’s last-resort auction, ICANN gets all the cash.

The final price of .web could easily be in the ball park of $50 million, so each applicant stands to lose several million dollars if the July 27 auction goes ahead as planned.

Radix and fellow .web applicant Schlund had previously written to ICANN to request the delay, but were rebuffed in a letter last week.

The decision outlined in that letter is what the new RfR challenges.

RfRs have a long track record of being dismissed by ICANN’s Board Governance Committee, very often because the requester has not supplied ICANN with any new information with which to change its mind.

That’s a risk here, too, given that ICANN seems to have been in possession of the Rasco email since June 22, before decision to go ahead with the auction was made.

However, that decision seems to have been made by ICANN staff. An RfR makes sure it gets the attention of the ICANN board of directors.

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Cruz’s ICANN paranoia is now official Republican policy

Kevin Murphy, July 20, 2016, Domain Policy

US Republicans have endorsed hitherto fringe views on the IANA transition as official party policy.

Yesterday delegates at the Republican National Convention approved the party’s 2016 Platform of the party, which “declares the Party’s principles and policies”.

Internet policy takes up just half a page of the 66-page document, but it’s half a page straight out of the paranoid mind of former presidential candidate Senator Ted Cruz.

It talks of the transition of the US government from its involvement in DNS root zone management (what the GOP calls “web names”) as an “abandonment” of internet freedoms to Russia, China and Iran, which are ready to “devour” them.

Here’s the relevant passage in (almost) full.

Protecting Internet Freedom

The survival of the internet as we know it is at risk. Its gravest peril originates in the White House, the current occupant of which has launched a campaign, both at home and internationally, to subjugate it to agents of government. The President… has unilaterally announced America’s abandonment of the international internet by surrendering U.S. control of the root zone of web names [sic] and addresses. He threw the internet to the wolves, and they — Russia, China, Iran, and others — are ready to devour it.

We salute the Congressional Republicans who have legislatively impeded his plans to turn over the Information Freedom Highway to regulators and tyrants. That fight must continue, for its outcome is in doubt. We will consistently support internet policies that allow people and private enterprise to thrive, without providing new and expanded government powers to tax and regulate so that the internet does not become the vehicle for a dramatic expansion of government power.

The internet’s independence is its power. It has unleashed innovation, enabled growth, and inspired freedom more rapidly and extensively than any other technological advance in human history. We will therefore resist any effort to shift control toward governance by international or other intergovernmental organizations. We will ensure that personal data receives full constitutional protection from government overreach. The only way to safeguard or improve these systems is through the private sector. The internet’s free market needs to be free and open to all ideas and competition without the government or service providers picking winners and losers.

Previously, such views had been expressed by just a handful of elected Republicans, notably Cruz, who has introduced a bill to block the IANA transition until Congress passes law specifically allowing it.

The irony in the latest GOP statement is that the transition is actually a transfer of power away from governments (specifically, the US government) into the private sector.

The current plan for a post-US ICANN, which was put together over two years by hundreds of participants mostly from the private sector, would see Governmental Advisory Committee advice carry less weight unless it receives full consensus.

In other words, if Iran, China and Russia want to destroy freedom of speech, they’ll have to persuade over 150 other governments to their cause.

Should that ever happen, a new multi-stakeholder (and in this example, government free) “Empowered Community” would have the power to put a stop to it.

The goal is to have the transition completed shortly after the current IANA contract between ICANN and the US Department of Commerce expires at the end of September.

That’s before the US presidential elections, of course, which take place in November.

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