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ICA opposes Aussie domaining ban

Kevin Murphy, April 10, 2019, Domain Policy

The Internet Commerce Association has weighed in to the debate about whether domain investing should be effectively banned in Australia’s .au ccTLD.

Naturally enough, the domainer trade group opposes the ban, saying that investment is a natural part of any market, and very probably supplying the registry with millions of dollars of revenue.

The comments came in a letter to auDA (pdf) from ICA general counsel Zak Muscovitch in response to auDA’s latest policy review proposals, which I reported on two weeks ago, that propose to further crack down on “warehousing”.

auDA wants to ban the practice of registering domains “primarily” for resale or warehousing, clarifying the current rule that prohibits registering “solely” for resale (which is easily evaded by, for example, parking).

A set of indicators would be used to zero in on offenders, such as observing the registrant’s history of selling or offering to sell domains, the existence of an auction listing for the domain, or the fact that the registrant owns more than 100 .au names.

But ICA reckons the effort is misguided and could even be damaging to auDA’s finances, pointing out that it and its registrars likely receive millions of dollars from the registration and renewal of speculative domain names.

Muscovitch’s letter goes on to question whether the policy review panel that came up with the proposals did any research into the potential economic impact of banning domain investment, pointing out that in some cases to seize domainers’ portfolios could wipe out a family’s life savings.

ICA also questions whether the panel has sufficiently thought through how enforceable its proposed rules would be, given the additional complexity introduced into the system.

The policy review paper is still open for comments, but if you want to chip in you’d better be quick. The comment period ends at 1700 AEST Friday, which is 0700 UTC.

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“Just give up!” ICANN tells its most stubborn new gTLD applicant

Kevin Murphy, April 8, 2019, Domain Policy

ICANN has urged the company that wants to run .internet as new gTLD to just give up and go away.

The India-based company, Nameshop, actually applied for .idn — to stand for “internationalized domain name” — back in the 2012 application round.

It failed the Geographic Names Review portion of the application process because IDN is the International Standards Organization’s 3166-1 three-letter code for Indonesia, and those were all banned.

While one might question the logic of applying for a Latin-script string to represent IDNs, overlooking the ISO banned list was not an incredibly stupid move.

Even a company with Google’s brainpower resources overlooked this paragraph of the Applicant Guidebook and applied for three 3166-1 restricted strings: .and, .are and .est.

But rather than withdraw its .idn bid, like Google did with its failed applications, Nameshop decided to ask ICANN to change its applied-for string to .internet.

There was a small amount of precedent for this. ICANN had permitted a few applicants to correct typos in their applied-for strings, enabling DotConnectAfrica for example to correct its nutty application for “.dotafrica” to its intended “.africa”.

But swapping out .idn for .internet was obviously not a simple correction but rather looked a complete upgrade of its addressable market. Nobody else had applied for .internet, and Nameshop was well aware of this, so Nameshop’s bid would have been a shoo-in.

To allow the change would have opened the floodgates for every applicant that found itself in a tricky contention set to completely change their desired strings to something cheaper or more achievable.

But Nameshop principal Sivasubramanian Muthusamy did not take no for an answer. He’s been nagging ICANN to change its mind ever since.

There’s a lengthy, rather slick timeline of his lobbying efforts published on the Nameshop web site.

He filed a Request for Reconsideration back in 2013, which was swiftly rejected by the ICANN board of directors.

In July 2017, he wrote to ICANN to complain that Nameshop’s string change request should be treated the same as any other:

It seems that if ICANN can allow string changes from a relatively undesirable name to a more desireable name based on misspelling, then ICANN should allow a change from a desireable name in three characters(IDN) to longer name in eight characters (Internet) based on confusion with geographical names

Meetings with ICANN staff, the Ombudsman, the Governmental Advisory Committee and others to discuss his predicament several times over the last several years have proved fruitless.

Finally, today ICANN has published a letter (pdf) it sent to Muthusamy on Friday, urging him to ditch his Quixotic quest and get his money back. Christine Willett, VP of gTLD operations, wrote:

Given we are unable to take further action on Nameshop’s application, we encourage you to withdraw the application for a full refund of Nameshop’s application fee.

I doubt this is the first time ICANN has urged Nameshop to take its money and run, but it seems ICANN is now finally sick of talking about the issue.

Willett added that ICANN staff and directors “politely decline” his request for further in-person meetings to discuss the application, and encouraged him to apply for his desired string in the next application round, whenever that may be.

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Did Roussos pull off the impossible? Google, Donuts, Radix all drop out of .music race

Google won’t be the registry for the .music gTLD.

The company, along with pure-play registries Donuts and Radix, late last week withdrew their respective applications from the .music contention set, leaving just three possible winners in the running.

Those are Amazon, MMX, and DotMusic, the company run by long-time .music fanboy Constantinos Roussos.

As I blogged last week, applications from Domain Venture Partners and Far Further have also been withdrawn.

I suspect, but do not know for a fact, that the contention was settled with a private deal, likely an auction, recently.

The logical guess for a winner would be Amazon, if only because of the nexus of its business to the music industry and the amount of money it could throw at an auction.

But I’m beginning to suspect that DotMusic might have prevailed.

The company appears to have recently revamped its web site, almost as if it’s gearing up for a launch.

Comparing the current version of music.us to versions in Google’s cache, it appears that the site has been recently given a new look, new copy and even a new logo.

It’s even added a prominent header link inviting prospective resellers to sign up, using a form that also appears to have been added in the last few weeks.

These changes all seem to have been made after the crucial ICANN vote that threw out the last of DotMusic’s appeals, March 14.

Are those the actions of an applicant resigned to defeat, or has Roussos pulled off the apparently impossible, defeating two of the internet’s biggest companies to one of the industry’s most coveted and controversial strings?

Participants in gTLD auctions typically sign NDAs, so we’re going to have to wait a bit longer (probably no more than a few days) to find out which of the remaining three applicants actually won.

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“Stringent” new online censorship law could affect domain companies

Kevin Murphy, April 8, 2019, Domain Policy

Blame Zuck.

The UK government is planning to introduce what it calls “stringent” new laws to tackle abusive behavior online, and there’s a chance it could wind up capturing domain name registries and registrars in its net.

The Department for Culture, Media and Sport this morning published what it calls the Online Harms White Paper, an initial 12-week consultation document that could lead to legislation being drafted at a later date.

The paper calls for the creation of a new independent regulator, charged with overseeing social media companies’ efforts to reduce the availability of content such as incitements to violence, self-harm, suicide, child abuse, “hate crime” and even “fake news”.

It basically would increase the amount of liability that companies have for user-generated content hosted on their services, even when that content is not necessarily illegal but is nevertheless considered “harmful”.

The regulator would have to create a code of conduct for companies the legislation covers to abide by.

When the code is breached, the regulator would have the authority to issue fines — possibly comparable to the 4% of profits that can be fined under GDPR — against not only the companies themselves but also their senior management.

The paper seems to most directly address ongoing tabloid scandals related to Facebook and its ilk, such as the suicide of Molly Russell, a 14-year-old who viewed material related to self-harm on Instagram before her death.

While it does not mention domain names once, the government clearly anticipates casting a wide net. The paper states:

The scope will include companies from a range of sectors, including social media companies, public discussion forums, retailers that allow users to review products online, along with non-profit organisations, file sharing sites and cloud hosting providers.

That’s a broad enough definition such that it could even cover blogs, including this one, that allow users to post comments.

The paper also discusses asking search engines to remove sites from their indexes, and compelling ISPs to block abusive sites as a “last resort” measure.

There’s a short mental hop from ISP blocking to domain name takedowns, in my view.

The paper also discusses steps the regulator could take to ensure companies with no UK legal presence are still covered by the rules.

While the paper, as I say, does not mention the domain name industry once, subsidiary services provided by registrars, such as hosting, could be directly affected.

There’s no guarantee that the paper will become a bill. There’s already a backlash from those who believe it constitutes unacceptable censorship, comparable to regimes such as in China.

There’s also no guarantee such a bill would eventually become law. The UK government is arguably currently the weakest it has ever been, with a propped-up minority in Parliament and many MPs in open revolt over Brexit.

With talk of an early general election incessant recently, it’s also possible the government may not last long enough to bring its plans to fruition.

Still, it’s probably something the domain industry, including ICANN, should probably keep an eye on.

The full 100-page white paper can be found here (pdf) and an executive summary can be read here.

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Looks like .music is finally on its way

The hard-fought battle for .music appears to be over.

I’m not yet in a position to tell you which of the eight applicants for the new gTLD has been successful, but I can tell you some of those who were not.

Two applicants have this week withdrawn their bids, an almost certain sign that the contention set has been privately settled.

The first applicant to ditch its bid was dot Music Ltd, an application vehicle of Domain Venture Partners (we used to call this outfit Famous Four Media, but that’s changed).

The other is .music LLC, also known as Far Further.

We can almost certainly expect all but one of the remaining applicants to withdraw their applications over the coming days.

Applicants typically sign NDAs when they settle contention privately, usually via an auction.

Far Further was one of two unsuccessful “community” applicants for .music. It had the backing of dozens of music trade groups, including the influential Recording Industry Association of America. Even Radiohead’s guitarist chipped in with his support.

Evidently, none of these groups were prepared to fund Far Further to the extent it could win the .music contention set.

The .music contention set has been held up by the continuing protestations of the other community applicant, DotMusic Limited, the company run by long-time .music cheerleader Constantinos Roussos.

After DotMusic lost its Community Priority Evaluation in 2016, on the basis that the “community” was pretty much illusory under ICANN rules, it started to complain that the process was unfair.

The applicant immediately filed a Request for Reconsideration with ICANN.

.music then found itself one of several proposed gTLDs frozen while ICANN conducted an outside review of alleged irregularities in the CPE process.

That review found no impropriety in early 2018, a verdict DotMusic’s lawyer dismissed as a “whitewash”.

It has since stalled the process several times with requests for information under ICANN’s Documentary Information Disclosure Policy, and more RfRs when those requests were denied.

But this series of appeals finally came to an end March 14, when ICANN’s board of directors finally ruled against DotMusic’s 2016 RfR.

That appears to have opened up the .music set for private resolution.

So who won? I don’t know yet, but the remaining applicants are: DotMusic itself, Google, Amazon, MMX, Donuts and Radix.

There are certainly two very deep-pocketed companies on that list. Could we be looking at Google or Amazon as the new proprietors of .music?

If either of those companies has won, prospective registrants might find they have a long wait before they can pick up a .music domain. Neither of these giants has a track record of rushing its new gTLDs to market.

If the victor is a conventional gTLD registry, we’d very probably be looking at a launch in 2019.

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