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Egyptian software exec is ICANN’s new CEO

Kevin Murphy, June 22, 2012, Domain Policy

ICANN has named Fadi Chehade as its new CEO.
Lebanon-born Chehade is a California-based software industry executive currently CEO of Vocado, a maker of educational software.
“I’m here because I owe the internet everything I’ve achieved to date,” he said at a press conference (ongoing).
He’s not due to take over until October 1. Until then, COO Akram Atallah will hold the reins, ICANN confirmed.
Chehade has known Atallah since they were kids — they used to be in the same boy scout troop, he said — and they worked together at Core Objects, where Chehade was CEO.
ICANN chairman Steve Crocker pointed to Chehade’s role as founder of RosettaNet, a supply chain software standards consortium, as evidence of his experience of consensus-building work.

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ICANN’s new gTLD director quits

Kevin Murphy, June 22, 2012, Domain Policy

Michael Salazar, director of ICANN’s new gTLD program, has quit.
He’ll be replaced on an interim basis by Kurt Pritz, senior director of stakeholder relations, according to a statement from ICANN this evening.
No reason for his resignation, which comes shortly after the Big Reveal and on the eve of ICANN’s public meeting in Prague, was given.
Salazar, a KPMG alum, joined ICANN in July 2009. Unlike Pritz, he’s not been a particularly public face of the program.
It’s not entirely unusual for people to leave companies after hitting project milestones, but the timing in this case, given ICANN’s ongoing public perception problem, is unfortunate.
The organization is due to reveal its new CEO in about 12 hours time, and from what I gather the new appointee isn’t expected to take on the role for a couple months.
Having another senior staffer with responsibility over the new gTLD program quit at the same time will look bad.

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Most new gTLDs could be closed shops

ICANN’s new generic top-level domain program could create almost 900 closed, single-user namespaces, according to DI PRO’s preliminary analysis.
Surveying all 1,930 new gTLD applications, we’ve found that 912 – about 47% – can be classified as “single registrant” bids, in which the registry would tightly control the second level.
Single-registrant gTLDs are exempt from the Registry Code of Conduct, which obliges registries to offer their strings equally to the full ICANN-accredited registrar channel.
The applications include those for dot-brand strings that match famous trademarks, as well as attempts by applicants such as Amazon and Google to secure generic terms for their own use.
Our definition of “single registrant” includes cases where the applicant has indicated a willingness to lightly share second-level domains with its close affiliates and partners.
It also includes applications such as those for .gov-style zones in non-US jurisdictions, where domains would be available to multiple agencies under the same government umbrella.
But it does not include gTLD applications that would merely require registrants to provide credentials, be a member, or agree to certain restrictions in order to register a domain.
Since there’s been a lot of discussion this last week about whether the single-registrant model adds value to the internet, I thought I’d try to measure the likely scale of the “problem” when it comes to eventual delegation into the DNS root zone.
How many closed registries could we see?
According to the DI PRO database, of the 912 single-registrant applications, 132 are in contention sets. There are 101 contention sets with at least one such applicant.
Some are up against regular multiple-registrant applications (both open and restricted gTLDs), whilst others are only fighting it out with other single-registrant applicants.
Let’s look at a couple of hypothetical scenarios.
Scenario One – Single-Registrant Applicants Win Everything
First, let’s assume that each and every applicant passes their evaluations, does not drop out, and there are no successful objections.
Then let’s imagine that every contention set containing at least one single-registrant bidder is won by one of those single-registrant bidders.
According to my calculations, that would eliminate 31 single-registrant applications and 226 multiple-registrant applications from the pool.
Another 264 multiple-registrant gTLD applications would be eliminated in normal contention.
That would leave us with 881 single-registrant gTLDs and 528 regular gTLDs in the root.
Scenario Two – Single-Registrant Applicants Lose Everything
Again, let’s assume that everybody passes their evaluations and there are no objections or withdrawals.
But this time let’s imagine that every single-registrant applicant in a contention set with at least one multiple-registrant bidder loses. This is the opposite of our first scenario.
According to my calculations, that would eliminate 117 single-registrant applications and 140 multiple-registrant applications.
Again, normal contention would take care of another 264 multiple-registrant applications.
That would leave us with 795 single-registrant gTLDs in the root and 614 others.
In both of these scenarios, at either extreme of the possible contention outcomes, single-registrant gTLDs are in the comfortable majority of delegated gTLDs.
Of course, there’s no telling how many applications of all types will choose to withdraw, fail their evaluations, or be objected out of the game, so the numbers could change considerably.
As another disclaimer: this is all based on our preliminary analysis of the applications, subject to a margin of error and possible changes in future as we refine our categorization algorithms.

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gTLD bid reveals world’s biggest ego — Richard Li

Richard LiIs this the biggest-headed person in the world?
He’s Richard Li, chairman of Hong Kong investment group PCCW, and he’s applied to ICANN for his very own gTLD, .richardli.
According to the application, which was filed by PCCW subsidiary Pacific Century Asset Management:

An important goal of the TLD is the safeguard of the intellectual property right of our Chairman’s name Richard Li.

To Internet users and others – Richard Li is a well-known and successful businessman in Hong Kong and internationally. The .richardli domain provides a more direct way of reaching our Chairman’s information with a better user experience as they will be able to access it directly under the .richardli domain. Internet users and others will benefit from the proper use of “.richardli” domain.

According to Wikipedia, citing Forbes, Li is one of Hong Kong’s richest people, with a net worth of $1.3 billion.
As far as I can tell, he’s the only person to apply for a gTLD in his own personal name.
His personal home page, richardli.com, does not appear to have been updated since June 2010.

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ICANN may renew Verisign’s .com deal this weekend

ICANN’s board of directors is set to vote on Verisign’s .com registry agreement at a meeting in Prague this Saturday.
The meeting is scheduled for June 23, the day before ICANN 44 officially kicks off. Read the agenda here.
The contract has been controversial because it will continue to allow Verisign to raise prices by 7% in four out of the six years of its duration.
Opportunistic intellectual property interests have also called for Verisign to be obliged to follow new rights protection mechanisms such as the Uniform Rapid Suspension policy.
But I’m not predicting any big changes from the draft version of the agreement that was published in March.
If and when the ICANN board approves the contract, it will be sent off to the US Department of Commerce for, I believe, another round of public comment and eventual ratification.
If Verisign is to run into any problems with renewal, it’s in Washington DC where it’s most likely to happen.

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TLDH posts six-month loss

Top Level Domain Holdings has posted a loss of $2.2 million in its latest interim financial report.
The company, which is one of the largest new gTLD applicants, saw a loss of £1.4 million ($2.2m) for the six months ended April 30, on revenue that was up from £26,000 to £136,000 ($213,000).
Given that TLDH’s game plan is to make money selling domain names in many of the 92 new gTLDs it hopes to have an interest in, its profitability runway is still dependent to a large extent on ICANN’s schedule.
The revenue in its latest period came mostly from consulting services.
On the up side, the company’s balance sheet is looking much better; it had an extra £10.7 million ($16.8m) in receivables on its books as of April 30 (which appears to be its “investment” in ICANN application fees), as well as £4.3 million ($6.7m) cash.
Its interim report can be read in PDF format here.

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Your first look inside ICANN’s new global HQ

Kevin Murphy, June 20, 2012, Gossip

After over a decade, ICANN moved its global headquarters from the LA suburb of Marina Del Rey to a new location a few miles down the road in Playa Vista this week.
Now, thanks to the magic of Facebook, I can bring you the exclusive first photograph from inside the building.
Methane Alarm
Playa Vista, it turns out, already had substantial build-ups of methane before ICANN showed up.
I can’t help but feel that the new tenants can only exacerbate things.
It’s well known to environmentalists that bovine flatus is a leading cause of atmospheric methane. I sincerely hope that Playa Vista’s ecology can handle its new influx of concentrated bullshit.

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ARI: digital archery is a lottery and we can prove it

Kevin Murphy, June 19, 2012, Domain Policy

ARI Registry Services has tested ICANN’s digital archery system and concluded that it’s little better than a “lottery”.
The company today released the results of a network latency test that it conducted earlier this month, which it says proves that applicants in North America have a “significant advantage” over others in securing a place in ICANN’s first new gTLD evaluation batch.
ARI basically tried to figure out how important the geographic location of the applicant is on digital archery.
It concluded that the further away you were, there was not only more network latency, as you would expect, but also that the latency became less predictable, making archery less about skill and more about luck.
According to the company (with my emphasis):

The conclusion is simple; the closer an applicant is to the ICANN Data Centre in Virginia, the greater likelihood of repeatable results, allowing a significantly higher chance of calibrating the network latency and thus setting a low Digital Archery time. It is therefore a significant advantage being located as close as possible to ICANN’s Digital Archery target or employing an organisation who is.
It is ARI’s contention that the frequency and size of network changes seen in networks outside North America mean the greatest influence on an applicant’s Digital Archery shot is luck. The further one is from North America, the greater the influence luck has on an applicant’s Digital Archery shot. Those applicants without the resources to access systems or representative organisations within North America are to all intents and purposes, playing a lottery, hoping that latency remains consistent between their calibration tests and their actual shot. The applicant’s ability to influence this game of chance reduces the further they are from North American networks.

While it might read for the most part like a technical white paper, make no mistake: this is a strongly political document.
By putting this information out there and linking it directly to the legally scary word “lottery”, ARI knows that it is putting ICANN in a very uncomfortable position.
The reason ICANN settled upon the digital archery system in the first place — rather than the preferred option of random selection — was because gambling is illegal in California and the organization’s lawyers were worried about nuisance lawsuits.
ARI has, essentially, just given fodder to the kinds of legal vultures that will be thinking about such lawsuits anyway.
The company is one of the strongest opponents of digital archery. In a recent interview with DI, CEO Adrian Kinderis called for batching to be scrapped in favor of a single evaluation period of 10 to 12 months.
You can read ARI’s 19-page report here.

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Three more digital archery services launch

Kevin Murphy, June 19, 2012, Domain Services

Surely the market must be saturated by now?
With a little over a week left before ICANN shuts down its digital archery new gTLD batching mechanism, three more companies are vying for applicants’ business.
We’ve received three press releases from newcomers this week, which I believe brings the total to eight.
Of course, it’s looking somewhat possible that digital archery will prove to be irrelevant, should ICANN decide to abandon batching altogether next.
In no particular order, these are the new ones:
Timestamp Technology
American. Affiliated with Nations Media Partners, Timestamp says it will offer applicants a 150% refund if it fails to get them into the first batch. It costs $20,000 for a single application.
MySingleShot
Bulgarian. Affiliated with Uninet. Says 90% of its shots come within 10ms of target. It’s a software play, with licenses selling for $1,000. If you want somebody to take the shot for you, it’s an extra $100 per TLD.
Digital Archery Hotshots
British. Run by Vladimir Shadrunov, a former Telnic executive now gTLD consultant. Fees not disclosed on the web site, but claims to have a “guaranteed lowest price”.

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Delays likely as governments demand gTLD timetable rethink

Kevin Murphy, June 19, 2012, Domain Policy

If you think you’ll be able to launch your new generic top level domain in the first quarter of 2013, you can pretty much forget it.
The Governmental Advisory Committee told ICANN yesterday that it does not think it will be able to provide advice on new gTLD applications until April 2013 at the earliest.
It’s also told ICANN to seriously reconsider its controversial digital archery program and the whole gTLD application batching concept.
The current timetable calls for GAC Early Warnings – the “headsup” stage for applicants – to be submitted concurrently with the public comment period, which runs through August 12.
The more substantial GAC Advice on New gTLDs period is meant to track with the regular objection window, which is expected to close about seven months from now, in January 2013.
Now the GAC says it won’t be able to meet either of those deadlines.
In a letter to ICANN chairman Steve Crocker, GAC chair Heather Dryden gave applicants several excellent reasons to believe that the Applicant Guidebook’s timetable will not be met:

the GAC has identified several benefits from having a single Early Warning period in relation to all applications (these relate to efficiency, consistency, and timeliness). On this basis, the GAC advises the Board that it is planning to issue any Early Warnings shortly after the Toronto ICANN meeting, in October 2012.

Given the delays to the gTLD application process, the timing of upcoming ICANN meetings, and the amount of work involved, the GAC advises the Board that it will not be in a position to offer any advice on new gTLD applications in 2012. For this reason, the GAC is considering the implications of providing any GAC advice on gTLD applications. These considerations are not expected to be finalised before the Asia-Pacific meeting in April 2013.

The bold text was in the original, indicating that this is official GAC advice that should not be ignored.
Given the bigger picture, with the looming threat of the ITU’s big summit in December, ICANN is likely to be extra receptive to governmental advice.
Readers will notice that Dryden isn’t saying that the GAC will provide its objections before April 2013, merely that it won’t have finished thinking about the “implications” of such advice before April 2013.
What this means for the gTLD evaluation timeline is anyone’s guess. I expect more clarity will be requested during ICANN’s public meeting in Prague next week.
These two pieces of timing advice have the effect of focusing ICANN’s mind on the more immediate problem of application batching.
The GAC seems to be backing calls from registries and intellectual property interests to scrap the batching concept and the ramshackle “digital archery” system.
Dryden wrote (pdf):

the GAC is concerned that the potential risks associated with the digital archery and batching mechanisms may outweigh the benefits. In light of ICANN’s decision to initiate digital archery on 8 June 2012, the GAC advises the Board to consult with the community as a matter of urgency to consider ways to improve its assessment and delegation processes in order to minimise the downside risks and uncertainty for applicants.
In line with the concerns raised by the community, this should include a focus on competition and fairness with delegation timing.

Far be it from me to suggest that the GAC picked its revised advice deadlines strategically, but they do seem to fit quite nicely into a batchless Initial Evaluation period that lasts about a year, as some community members have recently proposed.
Those who were paying attention during the panel discussion portion of Reveal Day last week will have noticed me and a couple of audience members putting Cherine Chalaby, chair of ICANN’s board new gTLDs committtee, on the spot about batching.
Chalaby confirmed that the committee – which has the powers of the board when it comes to new gTLDs – wants to hear from the community about batching during the Prague meeting.
The trick, he indicated, is to be able to reconsider batching without simply relocating it to the pre-delegation phase of the program, which will probably be next year.
“We will listen to alternatives and we will think about it, there’s no doubt, you have to be open minded about it,” he said.
My sense is that if opponents of batching want to have a shot at getting it killed off, they’re going to have to present a strong case – with a fully considered alternative – during their face-to-face with the ICANN board of directors on Monday.
Moaning and whining isn’t going to cut it this time, ICANN is going to want to see dates, delegation models, the works.

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