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Demand Media slates GAC’s new gTLDs demands

Kevin Murphy, May 9, 2013, Domain Policy

Demand Media has become the first new gTLD applicant to put its head above the parapet and tell ICANN that its latest batch of Governmental Advisory Committee advice is unworkable.

While its comment on the GAC’s Beijing communique is very diplomatically worded, it’s obvious that Demand reckons most of the “safeguard” advice it contains would be difficult, if not impossible, to implement.

The company has urged ICANN to refuse to adopt the advice, saying:

the spirit and actual letter of the GAC Advice related to these additional safeguards comes in a manner and form that is completely antithetical and contrary to ICANN’s bottom-up, multi-stakeholder, consensus-driven policy development process. Because the proposed safeguards, if implemented, would effectively change how new gTLDs are managed, sold, distributed, registered, operated, and used in the marketplace, the GAC Advice is tantamount to making “top-down,” dictatorial, non-consensus, policy which undermines the entire ICANN model. If ICANN chose to adopt any one of these three safeguards, ICANN itself would lose all legitimacy.

Demand seems to agree with many of the points raised in this DI post from a few weeks ago related to the GAC’s demand that hundreds of new gTLD registries should compel their registrants to stick to data security standards when they handle sensitive financial or healthcare data.

The GAC’s advice is extremely broad here and pays scant attention to the innumerable implementation questions raised. As such, Demand says in its comment (filed by applying subsidiary United TLD Holdco):

United TLD believes applicable laws and recognized industry standards should be developed and implemented by appropriate legislative, law enforcement and industry expert bodies and should not be developed by the registry operator.

It also takes issue with the GAC’s demand for registry operators to “establish a working relationship with the relevant regulatory body including developing a strategy to mitigate abuse.”

The company points out that many TLDs listed in the Beijing communique will have multiple uses, and even if there is a regulatory body for a subsection of registrants, it may not cover all.

For example, should a software engineer (an unregulated profession) have to agree to abide by rules developed for civil engineers when they register a .engineer domain name?

it would be inappropriate, and impossible, to find a “relevant regulatory body” with whom to establish a relationship related to the use of .ENGINEER. Additionally, what if the relevant regulatory body simply declined to work with a registry operator or does not respond to requests for collaboration?

The Demand comment is full of examples of problems such as this.

In broader terms, however, the registrar and applicant is utterly opposed to the GAC’s insistence that “certain” unspecified gTLDs representing regulated sectors should be forced, in effect, to transform into tightly restricted sponsored gTLDs.

The GAC wants these applicants to forge tight links with regulatory and self-regulatory bodies and vet each registrant’s credentials before allowing domains to be registered.

Demand said:

applicants, including United TLD, submitted their new gTLD applications believing that that they would be operating, managing and distributing generic TLDs. These three Safeguards completely change the nature of the new TLDs from being generic and widely available, to being “sponsored” TLDs restricted only to those individuals who must prove their status or credentials entitling them to register domain names with certain extensions. These three Safeguards are patently adverse to the core purpose of the new gTLD program and ICANN’s mission generally which is to promote consumer choice and competition.

While Demand is the first application to slam the GAC advice as a whole (a few others have submitted preliminary comments on specific subsets of advice), I’m certain it won’t be the last.

That said, .secure applicant Artemis Internet submitted what is possibly the most amusing example of “sucking up” I’ve ever seen in an ICANN public comment period.

The company actually requests to be added to the list of strings covered by the GAC advice on the grounds that its application was so gosh-darn wonderful it already planned to do all that stuff anyway.

I expect, by the time the comment period closes next Tuesday the prevailing mood from applicants will be more Demand and less Artemis.

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Interim CEO gets two C-level roles at Go Daddy

Go Daddy’s management shake-up continues apace, with the news last night that former interim CEO Scott Wagner has been appointed COO and CFO.

Wagner comes from KKR, one of three major investors to take a big stake in the registrar in 2011.

He was CEO in the interregnum between Warren Adelman’s short-lived stint and the appointment of Yahoo alum Blake Irving this January.

Irving has been filling senior spots at the company ever since taking over. Many of his new recruits are former Yahoo colleagues.

GoDaddy said in a press release that its sales hit almost $1.3 billion last year and that it has more than 11 million customers.

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.pw sees strongest growth in China

The recently launched .pw domain, managed by Directi, is doing particularly well in China, according to an early analysis from DomainTools.

The survey of data from name servers supporting 63,736 .pw domains found that well over half — 38,356 — were on Chinese IP addresses.

The Chinese registrar XinNet, which promotes low-cost .pw heavily on its home page, runs the second-largest number of name servers for the ccTLD’s registrants, DomainTools said.

According to the data, Directi’s own service is the third-largest name server host for .pw, followed by NameCheap and Sedo.

While Directi said from the outset that it expected to see growth from less-developed regions of the world, it has also come under fire recently for a massive spam outbreak from .pw addresses.

The ccTLD already has over 100,000 domains, according to the company.

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Three more registrars get breach notices

ICANN has told three registrars that they’re in breach of their contracts and risk losing their accreditations.

Two of the companies in receipt of breach notices this week — Internet Solutions and DomainSnap — have no gTLD domains under management, but the other, Aregentinian registrar Dattatec, has over 90,000, making it the 112th-largest registrar.

The former two have simply not paid their fees, according to ICANN.

Dattatec, meanwhile, also stands accused of not adequately responding to Whois accuracy complaints on a handful of distinctly spammy-looking domain names in its care.

All three have been given until almost the end of the month to sort out the problems or face the possibility of termination.

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Go Daddy building big new facility in Arizona

Go Daddy has “broken ground” on a new 150,000 square foot facility in Tempe, Arizona.

The new Global Technology Center will have room for 1,300 technology and customer care employees, the registrar said in a press release today. It expects to create 300 new jobs locally.

The construction project was ceremonially kicked off by CEO Blake Irving and Arizona governor Jan Brewer today.

Go Daddy is of course a native of the state, with its headquarters in Scottsdale.

The new two-story center will be located in Arizona State University Research Park, and is set for completion in 2014.

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