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Register.com hit by breach notice over 62,232 domains

Kevin Murphy, September 12, 2013, Domain Registrars

Register.com, a Web.com business that is one of the top ten registrars by domains under management, has been hit by an ICANN compliance notice covering 62,232 domain names.

It’s a weird one.

ICANN says that the company has failed to provide records documenting the ownership trail of the domains in question, which all currently belong to Register.com itself.

The notice names 000123.net, 0011pp.com, 00h4.com, 010fang.net, 01rabota.com, 02071988.com and 020tong.com, but it seems that these are merely the first in a alphabetical list that is much, much longer.

Judging by DomainTools’ Whois history, these domains all appear to have been originally registered at various times by individuals in China and India, then allowed to expire, then registered by Register.com to itself.

The only common link appears to be that they were kept by Register.com after they expired, for whatever reasons registrars usually hoard their customers’ expired domains.

According to the compliance notice, ICANN wants the registrar to:

Provide a detailed explanation to ICANN how 62,232 domains in which Register.com itself is the registrant are used for the purposes of Registrar Services, as defined by Section 1.11 of the RAA;

The Registrar Accreditation Agreement says registrars have to keep registrant agreement records, except for a limited class of cases where the domain is owned by the registrar itself and used for registrar-related stuff.

Register.com, one of the original five oldest competitive registrars, has been given until October 2 to come up with the requested information for face losing its accreditation.

The registrar has almost three million gTLD domains under management. Combined with its Web.com sister registrars, which include Network Solutions, the number is closer to 10 million.

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Donuts signs three more new gTLD contracts

Kevin Murphy, September 10, 2013, Domain Registries

Donuts today signed Registry Agreements covering the new gTLDs .land, .plumbing and .contractors, according to ICANN.

The deals mean ICANN now has contracts covering 40 gTLDs, 22 of them as a result of the new gTLD program and 16 of which are to be managed by Donuts.

Like all the gTLDs Donuts applied for, they’re to be operated with an “open” registration policy.

It’s therefore ironic that the company should become the contracted registry for .plumbing and .contractors — both regulated industries where I come from — on the same day we find out that it can’t have .architect because architecture is a licensed profession.

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dotShabaka Diary — Day 9, Unwelcome and Uninformed?

Kevin Murphy, September 10, 2013, Domain Registries

The ninth installment of dotShabaka Registry’s journal, charting its progress towards becoming one of the first new gTLDs to go live, written by general manager Yasmin Omer.

Tuesday 10 September 2013

After responding to ICANN’s COI Clarification Notification of 10 July 2013, including submitting the Letter of Credit and other required documentation, dotShabaka Registry proceeded to the Contracting Phase. The Registry Agreement was executed in Durban a couple of days later.

Now a full two months after our Letter of Credit was submitted to ICANN we received a portal comment that “ICANN requires an original of the Letter of Credit” and we need to respond “as soon as possible to avoid delaying your progress in the post-evaluation process.”

How is this a requirement that we are only now being made aware of? Why the two month wait? Why is the Letter of Credit suddenly on the critical path to delegation for the شبكة. TLD? We are on the other side of the world from Los Angeles and this cannot be completed in a couple of hours.

We are yet to receive ICANN’s ‘Welcome Pack’ for new gTLD Registry Operators. Are other new gTLD Registry Operators at the front-end of the new gTLD program feeling unwelcome and uninformed?

إذا كان الصبر مُرًّا فعاقبته حلوة – If patience is bitter then its result is sweet…

Read previous and future diary entries here.

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First three Community Objections decided: DotGay and Google win but Donuts loses

Kevin Murphy, September 10, 2013, Domain Policy

The International Chamber of Commerce has delivered the first three Community Objection decisions in the new gTLD program, killing off one application and saving two others.

These are the results:

.gay

The objection filed by Metroplex Republicans of Dallas, a gay political organization, against DotGay LLC has failed.

The panelist, Bernhard Schlink, decided that Metrolplex lacked standing to file the objection, stating:

while the conservative segment, with which Metroplex claims association, is a segment of the clearly delineated gay community, it is not a clearly delineated community in and of itself. That some LGBTQ people hold conservative political views and vote for conservative candidates may bring them into a statistical category, but does not make them connect, gather, interact, or do anything else together that would constitute a community, or, that would make them publicly visible as one.

It was the only objection against this .gay application, meaning it can now proceed to later stages of the new gTLD process.

.fly

The objection was filed by FairSearch.org, a coalition of companies that campaigns against Google’s dominance of online markets, against Google’s .fly application.

The application was originally for a “closed generic” registry, but Google has since stated that it has changed its mind and run .fly with an open registration policy.

FairSearch lost the objection, despite ICC panelist George Bermann giving it the benefit of the doubt multiple times during his discussion on its standing to object.

Instead, Google prevailed due to FairSearch’s failure to demonstrate enough opposition to its application, with Bermann writing:

A showing of substantial opposition to an application is critical to a successful Objection. Such a showing is absent here.

He also decided that Google presented a better case when it came to arguing whether or not its .fly would be damaging to the community in question.

.architect

Finally, Donuts has lost its application for .architect, due to an objection by the International Union of Architects, which supports Starting Dot’s competing application for .archi.

Donuts had argued that UIA did not have standing to object because an “architect” does not always mean the kind of architect that designs buildings, which is the community the UIA represents. It could mean a software architect or landscape architects, for example.

But panelist Andreas Reiner found that even if the UIA represents a subset of the overall “architect” community, that subset was still substantial enough, still a community, and still represented by the string “architect”, so that it did have the standing to use the Community Objection.

It also did not matter that the UIA does not represent all the “structural architects” in the world, the panelist found. It represents enough of them that its opposition to .architect passes the “substantial” test.

He eventually took the word “architect” in its most common use — people who design buildings — in determining whether the UIA was closely associated with the community in question.

On the question of whether architects would be harmed by Donuts’ plan for .architect, the panelist noted that architects are always licensed for public safety reasons.

Here are some extracts from his decision, which seem important:

Beyond concerns of public safety, habitat for human beings is of essential importance in society, at the human-social level, at the economic level and at the environmental level

it would be compatible with the above references public interests linked to the work of architects and with the related consumer protection concerns, to allow the domain name “.architect” to be used by anyone other than “architects” who, by definition, need to be licensed

The use of the top-level domain “.architect” by non-licenced architects is in itself an abuse. This top-level domain refers to a regulated professional service. Therefore all safeguards must be adopted to prevent its use by a non-licensed person.

The top-level domain “.architect” raises the legitimate expectation that the related website is the webiste of a licensed architect (or a group of licenced architects). Correct information is essential to consumers visiting websites.

Basically, Reiner trashed Donuts long-standing argument in favor of blanket open registration policies.

He noted specifically that whether to allow a gTLD to proceed might be considered a free speech question, but said that free speech often has its limits, such as in cases of consumer protection.

Worryingly, one of the pieces of evidence that the panelist considered was the Governmental Advisory Committee’s Beijing communique, which contains the GAC’s formal advice against over 500 applications.

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Domain.com owner files for $400m IPO, to spend $110m buying Directi

Kevin Murphy, September 10, 2013, Domain Registrars

Endurance International, owner of Domain.com and HostGator, plans to raise up to $400 million in a Nasdaq IPO, and said it will spend up to $110 million of that buying Directi, India’s largest domain registrar.

As part of the proposed acquisition, Endurance has also agreed to bankroll Directi’s new gTLD auctions to the tune of $62 million.

The acquisition is not final, and appears to depend on a number of targets related to the IPO and Directi’s revenue performance. Endurance’s S-1 filing with the US Securities and Exchange Commission reads:

In August 2013, we entered into a master share purchase agreement to acquire all of the outstanding capital stock of Directi from Directi Holdings, the seller, for an amount we estimate will be between $100 million and $110 million in cash or, at the election of the seller, a combination of cash and shares of our common stock, subject to the satisfaction or waiver of specified customary closing conditions and the achievement of specified financial targets.

The acquisition would close in the fourth quarter this year.

As well as running a top-ten registrar (and a few dozen others), Directi subsdiary Radix Registry has 29 active new gTLD applications, 26 of which are contested.

Endurance proposes to help Radix win these contention sets. On new gTLD auctions, the S-1 says:

in connection with our proposed acquisition of Directi, we entered into agreements with entities affiliated with Directi Holdings related to participation in the auction of new top level domain extensions and domain monetization activities, pursuant to which, among other things, we may be obligated to make aggregate cash payments of up to a maximum of approximately $62 million, subject to specified terms, conditions and operational contingencies.

Endurance is a complicated company. Its most familiar brands include Domain.com, iPage, FatCow, Homestead, Bluehost, HostGator, A Small Orange, iPower and Dotster.

But since December 2011 it has been controlled and majority owned by Warburg Pincus and Goldman Sachs, which paid a reported $975 million.

Its annual revenue for the last three calendar years has been $87.8 million, $190.3 million and $292.2 million. It’s currently not profitable, recording a net loss of $139.2 million in 2012.

It has seven million domains under management and had 3.4 million customers at the end of June 2013.

Judging by the S-1, the company has over a billion dollars of debt. Directi acquisition excluded, most of its IPO proceeds would go towards paying off some of that debt.

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