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NCC sells Open Registry at huge discount

Kevin Murphy, January 6, 2017, Domain Registries

NCC Group has followed through on its promise to divest parts of its domain business, selling the Open Registry collection of companies at a huge discount to the original purchase price.

KeyDrive and a mysterious entity called Terrain.com SA have together acquired the companies for €3.75 million ($3.97 million).

That’s compared to the minimum of £7.9 million ($12 million) NCC originally paid just two years ago.

NCC said in a statement that the sold companies are:

  • Open Registry SA, a registry back-end provider with a handful of new gTLD clients.
  • ClearingHouse for Intellectual Property SA, aka CHIP, which provides software and billing support for the Trademark Clearinghouse.
  • Nexperteam CVBA, a tiny registrar.
  • Sensirius CVBA, the original Open Registry company, a new gTLD consultancy.

Missing from that list is Artemis, the new gTLD registry for .trust, which NCC separately acquired from Deutsche Post for an undisclosed sum in February 2014.

NCC is also keeping hold of its data escrow business, which is widely used by gTLD registries to comply with ICANN rules.

It’s not clear how the sold companies are being divided up between the two buyers.

KeyDrive is the Luxembourg-based holding company for the registrars Key-Systems and Moniker and other domain firms.

Terrain.com appears to belong to EuroDNS chair Xavier Buck, who was chair of Open Registry until NCC bought it, but the domain itself doesn’t seem to resolve right now.

NCC said that €2 million will be paid up front and €1.75 million will be deferred for 18 months.

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ICA worried ICANN will force URS on .net

Kevin Murphy, January 5, 2017, Domain Registries

The Internet Commerce Association has called for a “moratorium” on the Uniform Rapid Suspension policy being added to legacy gTLD contracts, months before Verisign’s .net contract is up for renewal.

In a blog post, ICA counsel Phil Corwin accused ICANN staff of making policy by the back door by compelling pre-2012 registries to adopt URS, despite a lack of ICANN community consensus policy.

In the last few years the registries for .jobs, .travel, .cat, .pro, .xxx and most recently .mobi have agreed to adopt many aspects of the 2012 Registry Agreement, which includes the URS, often in exchange for lower ICANN fees.

Corwin wrote:

the real test of [ICANN’s Global Domains Division’s] illicit strategy of incremental de facto policymaking will come later this year, when the .Net RA comes up for renewal. We have no idea whether Verisign will be seeking any substantial revisions to that RA that would provide GDD staff with substantial leverage to impose URS, nor do we know whether Verisign would be amenable to that tradeoff.

The .net RA is due to expire July 1 this year.

Verisign pays ICANN $0.75 for each .net domain registration, renewal and transfer. If that were to be reduced to the 2012 standard of $0.25, it would save Verisign at least $7.5 million a year.

The URS provides brand owners with a way to suspend trademark-infringing domains in clear-cut cases. It’s based on UDRP but is faster and cheaper and does not allow the brand owner to seize ownership of the domains.

ICA represents large domain speculators, most of which have their investments tied up in .com and .net domains. It’s complained about the addition of URS to other gTLDs but the complaints have largely fallen on deaf ears.

ICANN has said that it does not force URS on anyone, but that it takes the base new gTLD program RA as its starting point for bilateral negotiations with registries whose contracts are up for renewal.

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ICANN’s top DC lobbyist gets consumer safeguards role

Kevin Murphy, January 5, 2017, Domain Policy

ICANN has named veteran staffer Jamie Hedlund as its new senior VP for contractual compliance and consumer safeguards.

It’s a new executive team role, created by the departure of chief contract compliance officer Allen Grogan. Grogan announced his intention to leave ICANN last May, and has been working there part-time since August.

The “consumer safeguards” part of the job description is new.

ICANN first said it planned to hire such a person in late 2014, but the position was never filled, despite frequent poking by anti-spam activists.

Now it appears that the two roles — compliance and consumer safeguards — have been combined.

This makes sense, give that ICANN has no power to safeguard consumers other than the enforcement of its contracts with registries and registrars.

From the outside, it does not immediately strike me as an obvious move for Hedlund.

While his job title has changed regularly during his six or so years at ICANN, he’s mainly known as the organization’s only in-house Washington DC government lobbyist.

He played a key role in the recent IANA transition, which saw the US government sever its formal oversight ties with ICANN.

His bio shows no obvious experience in consumer protection roles.

His replacement in the government relations role is arguably just as surprising — Duncan Burns, a veteran PR man who will keep his current job title of senior VP of global communications.

The appointments seem to indicate that lobbying the US government is not as critical to ICANN in the post-transition world, and that institutional experience in the rarefied world of ICANN is a key qualifier for senior positions.

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ICANN terminates penis pill pimp registrar

Kevin Murphy, January 5, 2017, Domain Registrars

ICANN is to terminate the contract of a Chinese registrar linked to dodgy pharmaceuticals web sites and other malfeasance.

Nanjing Imperiosus Technology Co, which does business as DomainersChoice.com, has been told it will lose its registrar accreditation February 3.

ICANN said in the termination notice that the company had failed to keep records related to abuse reports, failed to validate Whois records, and failed to provide ICANN with registration records, all in breach of the Registrar Accreditation Agreement.

The breaches related to complaints filed by illegal pharmacy watchdog LegitScript last September, I believe.

DomainersChoice and its CEO Stefan Hansmann were listed in Whois as the owners of potentially hundreds of domains that were being used to sell medicines for conditions ranging from heart disease to erectile dysfunction.

The domains 5mg-cialis20mg.com, acheterdutadalafil.com, viagra-100mgbestprice.net and 100mgviagralowestprice.net were among those apparently owned by the registrar.

According to LegitScript, thousands of DomainersChoice domains were “rogue internet pharmacies”.

The registrar has also been linked by security researchers to mass typosquatting campaigns.

The company’s web site even has a typo generator. While one could argue such tools are also useful to brand owners, DomainersChoice’s name suggests it’s geared towards domainers, not brands.

DomainersChoice had about 27,000 domains under management at the last count, which ICANN will now migrate to another registrar.

It’s not known how many of those were self-registered domains and how many were being used nefariously, but LegitScript CEO John Horton estimated (pdf) at least 2,300 dodgy pharma sites used the registrar.

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GMO and Radix secure Chinese gTLD approval

Kevin Murphy, January 3, 2017, Domain Registries

GMO Registry and Radix have won Chinese government approval for their respective new gTLDs .shop and .site.

It’s the second batch of foreign new gTLDs to get the nod from China’s Ministry of Industry and Information Technology, following .vip, .club and .xyz in early December.

They’re also the first two Asian registries from outside China to get the right to flog their domains in China — GMO is Japanese and Radix is UAE-based with Indian roots.

Their new Chinese government licenses mean Chinese registrars will now be able to allow their customers to actually use .shop and .site domains to host web sites.

The registries in turn have had to agree to enforce China’s rather arbitrary and Draconian censorship policies on their Chinese customers.

The approvals were announced by MIIT December 29.

.site currently has about 570,000 domains in its zone file, making it a top-10 new gTLD by volume, while .shop, which launched much more recently, has over 100,000.

The ability for Chinese customers to develop their domains is no doubt good for the long-term health of TLDs, but it’s not necessarily a harbinger of shorter-term growth in a market where domains are often treated little more than meaningless baseball cards to be traded rather than commodities with intrinsic value.

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