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Watch ICM’s first .xxx TV commercials

Kevin Murphy, September 14, 2011, Domain Registries

ICM Registry has posted its first wave of TV commercials for .xxx onto YouTube.
The theme running through the four commercials is that not registering a .xxx may save you a bit of cash, but that registering one will make you rich.
Or something.
I can’t say I “get” the humor, but I’m probably not the demographic.
Here’s the first three. The character, “King Gavin”, is played by Gavin McInnes, founder of Vice magazine.



ICM says the commercials will start to air on TV in the US soon.

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Windows 8 and the emotional reaction to new gTLDs

Kevin Murphy, September 14, 2011, Domain Policy

Watching videos and reading reports about the Windows 8 demos at Build 2011 yesterday, I found myself experiencing a quite overwhelming feeling of despair.
I’m not usually what you’d call an early adopter.
I did buy my current laptop on the day Windows 7 was released. Not because I’m a Microsoft fanboy; I just needed a new laptop and figured I may as well wait for the new OS to come out.
I resisted buying a mobile phone until 2006. The one I have now cost me £5. I have literally no idea if it does internet or not. The thing I thought was a camera lens turned out to be a flashlight.
I bought an iPod once, but the only reason I haven’t stamped it to pieces yet is because it’s full of photos of loved ones I cannot retrieve because it’s “synched” to a PC that I did stamp to pieces.
I’ve never owned a touch-screen device, and I don’t really want to.
I’m not interested in gestural interfaces or chrome-free environments; I want menus that tell me what the software does and let me click on the thing I want it to do.
Hence my despair at Windows 8, which appears to be doing away with useful stuff in favor of, I dunno, looking nice or something. Microsoft appears to be trying to appeal to (shudder) Apple users.
I felt the same about Google+, which I have yet to join. Apparently it’s quite good, but my initial reaction to its launch earlier this year was “For god’s sake, why?” and “Do we really need more shit to update?”
I fear change…
(tenuous link alert)
…and I feel certain I’m having exactly the same emotional reaction to Windows 8 as many people are having to ICANN’s new gTLD program.
Just as I don’t want to have to think about typing onto a screen (a screen, for crying out loud!) there are millions of people just as pissed right now that they’re being forced to think about new gTLDs.
“But we don’t need them!” they wail. “Everything works just fine as it is!”
Yeah, well that’s how I feel about all the shiny shiny fondlelabs everybody else in the world seems to be currently obsessing over.
I share your pain, Bob Liodice.
But sometimes technology companies come out with new stuff because they think that’s the way to innovate and (of course) make more money.
It’s just the way it is. You’ve got to accept it and move on. If you’re smart, you’ll figure out a way to turn the thing to your advantage.
Everybody currently using Windows 7, Vista or XP will eventually upgrade to Windows 8, even if it’s probably going to be a prettier but less useful version of its predecessors.
If you still buy DVDs, one day you’ll probably be forced to buy a Blu-ray player, just the same as you were forced to upgrade from VHS.
And if you think VeriSign’s mindshare monopoly on the domain name system is the way things should stay forever, new gTLDs are going to make you think again.

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How much money will ICM make from .xxx blocks?

Kevin Murphy, September 13, 2011, Domain Registries

There’s a pretty ludicrous report in the Australian media today, claiming that Aussie businesses are being forced to pay AUD $400 million to ICM Registry to protect their brands in .xxx.
The laughable number ($411 million) appears to have been fabricated from whole cloth. The report in the Murdoch-owned Herald Sun does not even bother trying to source or justify it.
But it’s becoming increasingly clear that ICM is going to make some money out of its .xxx sunrise, including from Sunrise B – the one-time defensive “blocks” that do not result in a domain registration.
The company priced Sunrise B at $162 per domain based on an assumption that it would see 10,000 of them. Any fewer and it would lose money, any more and it would profit.
According to official registry reports, no TLD launched in the last five years – .asia, .co, .jobs, .mobi – saw more than about 10,000 domains defensively registered during its sunrise period.
But my hunch is that .xxx will blow those out of the water. I would not be at all surprised if the final number tops 20,000 names.
It’s just a hunch at this point, based on a comparison to the .co launch – which had a reported 11,000 sunrise applications last year – and four main assumptions:
First, that 10,000 was a conservative estimate. I don’t think ICM would have risked making a big loss.
Second, based on a very small number of conversations, I think that some companies are not taking any chances. They’re applying for blocks in more second-tier brands that maybe they strictly need to.
Third, ICM has a much larger registrar channel than .co enjoyed, and much more aggressively FUDdy registrar marketing tactics.
ICM has approved about 70 registrars, compared to the 10 that .CO Internet had at launch, and a lot of registrar promotion has focused on the “Protect Your Brand!” angle, which was discouraged by .co.
Fourth, the vast amount of mainstream media attention the .xxx sunrise has been receiving, most which has doggedly followed the same line as the registrar FUD.
While the value of defending against typosquatting during the .co sunrise last year was probably more important to trademark holders from a security and traffic loss perspective, the brand protection angle did not receive nearly the same amount of press as .xxx has.
ICM president Stuart Lawley has done dozens of media interviews since the sunrise kicked off last week. I even heard him on a UK radio news show aimed at teenagers.
And this press has been going on for over six years, remember. ICANN first approved .xxx in 2005, and the story has been in and out of the media ever since.
It’s worth noting that a Sunrise B block, with its one-time fee, basically denies ICM Registry a bunch of recurring revenue events forever.
Nike is going to be paying $20 to .CO Internet for its defensively registered nike.co domain name every year until the end of time, in addition to the up-front sunrise fee.
If it blocks nike.xxx, it will pay $162 to ICM now but it will also deny the registry its $60 fee for every year it could have been a renewing domain. In three years, ICM’s losing revenue.
But Sunrise B is very probably going to be profitable for ICM. At 20,000 applications, its top line would be $3.24 million, with profit probably pushing seven figures.
Nowhere near $411 million, obviously, but not a bad payday for selling domain names that will never resolve.

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ICANN “not an advocate” for new gTLDs

Kevin Murphy, September 13, 2011, Domain Policy

ICANN is a facilitator of, not an advocate for, new top-level domains.
That’s the message ICANN is choosing to present as its executives begin their global awareness-raising campaign for the new gTLD program.
President Rod Beckstrom was in Sao Paolo, Brazil, at the Futurecom conference yesterday. In his address there, he said, according to an ICANN press release:

I want to make clear that ICANN is an organization that is not advocating new gTLDs for anyone. Our role is merely facilitation to implement the policy and the programs approved by our community, so we are here to educate not to advocate.

That will come as little surprise to anyone familiar with ICANN’s communications plan – it needs to tell people what new gTLDs are, and what they are not, without sounding like a salesman.
Senior ICANN staff, as well as chair Steve Crocker, are scheduled for a deal of outreach-focused globe-trotting over the next few months.
Beckstrom is due in London next week for a panel discussion on new gTLDs, and I understand similar events in Paris and Berlin have also been lined up.
I’m also on the London panel, along with Nominet’s Lesley Cowley and Lorna Gradden from Com Laude. The value of this kind of thing is in the questions, so hopefully there’ll be a decent turnout.
Beckstrom is also slated to appear at Gitex in Dubai next month.
Crocker is keynoting the newdomains.org conference in Munich in two weeks, and the Bulgarian Domain Forum event is also anticipating ICANN staff participation.

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ICANN hires CFO

Kevin Murphy, September 9, 2011, Domain Policy

Xavier CalvezICANN has found itself a chief financial officer, filling the role vacated by Kevin Wilson in January.
Xavier Calvez was most recently the CFO of the creative services division of Technicolor in Los Angeles.
He’s French, and has previously worked for Deloitte and KPMG.
Calvez has already started work at ICANN’s office in Marina Del Rey, but he still needs to be given the nod officially by the board of directors.

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How many brands will lie in their gTLD applications?

Kevin Murphy, September 9, 2011, Domain Policy

The Association of National Advertisers and related groups are currently telling ICANN and anyone who will listen that big brands don’t want new top-level domains.
But many of the ANA’s members, including members of its board, are understood to be currently talking to domain consultants and registries about applying for their own .brand gTLDs.
Assuming that the ANA is not lying, and that its members don’t want .brands, what on earth are these companies going to say in their applications next year?
If they are thinking about applying purely defensively (and I use that word loosely), truly believing that new gTLDs are useless, how will they answer the all-important Question 18(b)?

How do you expect that your proposed gTLD will benefit registrants, Internet users, and others?

The question, which was added to the Applicant Guidebook this year at the request of the Governmental Advisory Committee, is not scored, but is expected to be answered.
The answers will be published, and they will also be used in ICANN’s future reviews of the program.
The ANA is already on-record stating “there are no material or obvious benefits”, so an answer to 18(b) from one of its members that states anything other than: “We don’t think it will benefit anyone.” is going to look like a horrible lie.
And lying isn’t allowed. It’s in the Guidebook’s terms and conditions:

Applicant warrants that the statements and representations contained in the application (including any documents submitted and oral statements made and confirmed in writing in connection with the application) are true and accurate and complete in all material respects

Any company that lies in its application runs the risk of losing its whole $185,000 application fee and having its application rejected.
Okay, I admit, I’m being a bit cheeky here – I don’t really think anyone will be rejected for using a bit of colorful marketing BS in their applications. I doubt the evaluators will even notice.
I am perhaps suggesting that the ANA’s outrage today may not fully reflect the diversity of opinions among its board and general membership.
Either way, it’s going to be fascinating to read the applications filed by ANA members, and to compare their words to the positions they’re allowing ANA management to put forth on their behalf today.

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Go Daddy’s 60-day domain lockdown loophole

Kevin Murphy, September 8, 2011, Domain Registrars

Perhaps the most common complaint of the many leveled at Go Daddy over the years is that it refuses to allow customers to transfer domains to another registrar for 60 days after an ownership change.
The latest person to fire this criticism at the company is tech blogger Scott Raymond, who published a lengthy tirade against Go Daddy and its policy on ZDNet today.
Raymond points out that Go Daddy seems to be in violation of ICANN’s Inter-Registrar Transfer Policy, which explicitly prohibits the rejection of a transfer request due to a recent Whois change.
He’s not alone. Even Andrew Allemann of Domain Name Wire, hardly Go Daddy’s fiercest critic, said as recently as May that he thinks the company is in violation of the IRTP.
With good reason – this April 2008 ICANN advisory seemed to be specifically written with a ban on Go Daddy’s 60-day policy in mind.
But is the company non-compliant? ICANN doesn’t seem to think so.
I’ve tracked down this November 2009 email from David Giza, then ICANN’s head of compliance, in which he describes what seems to amount to a loophole Go Daddy and other registrars exploit.
Giza explains that the 2008 advisory “only addresses mandatory updates to Whois contact information, not a transfer or assignment to a new registrant”.
Registrants are obliged to keep their Whois data up-to-date; that’s what he means by “mandatory”.
Giza’s email adds:

the transfer policy does not prohibit registrars from requiring registrants to agree to the blocking of transfer requests as a condition for registrar facilitation of optional services such as the transfer of a registration to a new registrant.
We understand GoDaddy.com’s 60-day lock is a voluntary opt-in process where registrants are made aware of and agree to the restriction that the domain name is not to be transferred for 60-days following the completion of transfer. As such, this practice is not prohibited by the transfer policy.

In other words, there are “Whois Changes” and there are “Registrant Changes”, and registrars are only allowed to trigger a lock-down in the latter case, according to Giza.
And according to DNW’s reporting on the subject, that’s exactly what Go Daddy continues to do — locking the domain if certain fields in the registrant record are changed.
So the 60-day lock appears to be kosher, at least in the opinion of ICANN’s erstwhile compliance chief. Whether that could change under the department’s new management is unknown.
As it happens, the subject was raised by a recent working group that was looking into revising the IRTP, but it was so contentious that consensus could not be found.
The problem has been bounced down the road. The most recent mention came in this ICANN issue report (pdf, page 14-15).
Anyway, if I lost you several paragraphs ago, the net result of all this seems to be that Go Daddy probably isn’t breaking the rules, but that nobody can agree whether that’s a good thing or not.
The fact that one has to do this much digging into ICANN esoterica just to figure out whether Go Daddy is screwing its customers over isn’t very reassuring, is it?

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VeriSign CFO quits after buyout rumors

Kevin Murphy, September 8, 2011, Domain Registries

VeriSign has just announced that its chief financial officer, Brian Robins, will leave the company at the end of the month.
The announcement follows a couple of trading days in which VeriSign’s shares have rallied on rumors that the company was on the verge of being acquired.
Ironically, it was Robins’ decision to cancel an appearance at a financial conference that sparked the rumors.
Robins’ resignation follows that of his old boss, CEO Mark McLaughlin, who quit to join a pre-IPO tech startup in late July.
Robins’ destination is not yet known, and VeriSign has yet to name a replacement.

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If you pre-register a domain, you are the product

Kevin Murphy, September 8, 2011, Domain Registries

“If you’re not paying for it, you are the product.”
That’s a maxim that has been doing the rounds on the internet for the last few years to describe services such as Facebook, which gets users in for free and then monetizes them to third parties.
It struck me today that this saying also applies to services that allow you to pre-register domain names in non-existent top-level domains.
If you’ve recently registered your interest in a domain in a new gTLD – example.web, say – you’ve gained nothing and potentially lost a lot.
Pre-registering creates two main benefits as I see it, and neither accrues to the registrant.
First, you’re now on the company’s mailing list. When your selected new gTLD(s) go live, the company you pre-registered with is going to try to convert you into a paying customer.
Second, you’ve just freely contributed information to an extremely valuable database, possibly to your own detriment.
When new gTLDs launch, many registries are going to reserve thousands of premium domains to either sell or auction at a later date, to periodically drum up interest in their extensions.
How will these companies decide which domains to add to their premium lists? A database of hundreds of thousands of pre-registrations would be a great place to start looking.
If you pre-register, what you may be doing is voting for your desired domain to be reserved by the registry, for possibly years, and then sold at a large premium.
Something to think about.

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Another registrar on the ICANN naughty step

Kevin Murphy, September 6, 2011, Domain Registrars

ICANN has threatened to terminate the accreditation of Samjung Data Service, a South Korean domain name registrar.
The threat, the 13th ICANN’s compliance department has issued to a registrar this year, is notable because it’s a rare example where money does not appear to be an issue.
Samjung’s failing, according to ICANN’s termination letter, is its inability to escrow registrant data with Iron Mountain on the agreed schedule and in the required format.
The tiny registrar has also failed to make the technical contacts in its customers’ Whois records available online, and has been apparently ignoring ICANN’s calls and emails.
What ICANN does not do is accuse Samjung of not paying its accreditation fees, which in the past has been a notable feature of compliance actions.
Delinquent payments tend to alert ICANN that there may be other problems at a registrar, but this has led to criticisms that the organization is only concerned about its revenue.
Could the Samjung case be another example of the newly staffed-up ICANN compliance department taking the more proactive stance that was promised?

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