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.sucks “gagging” registrar critics?

Kevin Murphy, January 12, 2016, Domain Registries

.sucks may be all about freedom of speech, but some registrars reckon the registry is trying to ban them from criticizing the new gTLD in public.
Vox Populi is proposing a change to its standard registrar contract that some say is an attempt to gag them.
A version of the Registry-Registrar Agreement dated December 18, seen by DI, contains the new section 2.1:

The purpose of this Agreement is to permit and promote the registration of domain names in the Vox Populi TLDs and to allow Registrar to offer the registration of the Vox Populi TLDs in partnership with Vox Populi. Neither party shall take action to frustrate or impair the purpose of this Agreement.

It’s broad and somewhat vague, but some registrars are reading it like a gagging order.
While many retail registrars are no doubt happy to sell .sucks domains as part of their catalogs, there is of course a subset of the registrar market that focuses on brand protection.
Brand protection registrars have been quite vocal in their criticism of .sucks.
MarkMonitor, for example, last year wrote about how it would refuse to make a profit on .sucks names, and was not keen on promoting the TLD to its clients.
Asked about the new RRA language, Vox Pop CEO John Berard told DI that it was merely an attempt to clarify the agreement but provided no additional detail.
Registrars are also angry about a second substantial change to the contract, which would allow the registry to unilaterally make binding changes to the deal at will.
The new text in section 8.4 reads:

Vox Populi shall have the right, at any time and from time to time, to amend any or all terms and conditions of this Agreement. Any such amendment shall be binding and effective 15 days after Vox Populi gives notice of such amendment to the Registrar by email.

That’s the kind of thing that ICANN sometimes gets away with, but some registrars are saying that such a change would let Vox Pop do whatever the hell it likes and would therefore be legally unenforceable.

TLS says .feedback will be “UDRP-proof”, will hire lawyers to defend registrants

Kevin Murphy, December 21, 2015, Domain Services

Top Level Spectrum plans to make its .feedback domains dirt cheap for domainers during its forthcoming Early Access Period, and is claiming that its domains will be “UDRP-proof”.
CEO Jay Westerdal told DI today that the registry will even hire lawyers to defend its registrants if and when UDRP cases arise.
The company has also introduced a new $5,000 “claims” service that is guaranteed to drive the intellectual property community nuts.
.feedback is shaping up to be one of the most fascinating new gTLD launches to date.
The company’s original plan, to sell 5,000 trademark-match domains to a single entity after its sunrise period ends has been tweaked.
Now, it will instead offer huge rebates during its Early Access Period next month, which will bring the price to registrants down from as much as $1,815 to as little as $5.
It’s called the “Free Speech Partner Program”.
To qualify for the program rebate, registrants will have to agree to stick to using TLS’s specially designated name servers, which point to a hosted feedback service managed by the registry.
An example of such a site can be seen at donaldtrump.feedback, which is among several US presidential candidate names TLS has registered to itself recently.
That commitment will be passed on if the domain ever changes hands, and a $5,000 fee will be applicable if the registrant wants to switch to their own name servers.
A registry charging a lower fee during EAP than GA is unheard of, but that’s what TLS is planning.
Rebates will not be available during the first three days of EAP, which starts January 6 at $14,020 per name. Days two and three see domains priced at $7,020 and $3,520.
From January 9 to January 18, rebates will bring the prices down to $5 per domain.
That’s a quarter of the $20 registry fee it plans to charge during general availability.
“Our plan is to sell thousands of domains before normal GA,” Westerdal said.
“It is a great opportunity for domainers to register domains that will be UDRP proof,” he said. “As free speech sites they are going to improve the world and let anyone read reviews on any subject.”
“I think they are UDRP proof,” he said. “As a registry we will hire lawyers to fight cases that arise.”
Asked to confirm that TLS would pay for lawyers to defend its registrants in UDRP cases, he said: “Hell yes we will.”
The registry plans to give trademark owners a way to avoid UDRP, however, if they’re willing to pay $5,000 for the privilege.
“Free Speech” registrants will have to agree not only to use TLS’s feedback platform, but also to allow the owners of trademarks matching their domains to more or less unilaterally seize those domains for up to two years after registration.
This “claims period” is also unprecedented in new gTLD launches. It’s described like this:

The registry will accept trademarks for a period of 2 years after the initial registration on a “Free Speech Partner Program” domains. The cost is $5,000 to have the mark validated, if the trademark is found to be the first to successfully make a claim against a domain in the program the domain will be transferred to the mark holder. The mark holder will be allowed to change name servers and is not subject to the “Free Speech Partner Program” terms of service.
Domain registrants of the “Free Speech Partner Program” agree the outcome of a validated mark by the Registry have no further claim to the domain if it is transferred to a new registrant.

If TLS is trying to design a system that will enrage the trademark community to the maximum extent possible, it’s doing a fantastic job.
It even introduced a new clause (2.9, here) to its registration agreement earlier this month, obliging registrants to point their domains to a web page that collects feedback. That means nobody will be allowed to leave their .feedback domains dark.
Are these measures justifiable disincentives, or plain old extortion? Opinion will no doubt be split along the usual lines.

More on my Twitter.sucks reg

Kevin Murphy, December 21, 2015, Domain Registries

If you were reading on Friday, you’ll know that I brought about the registration of the domain twitter.sucks and took charge of a web site hosted at that address.
I hinted that there was a little more to the story, but couldn’t get into it.
The first part of the story is here.
What I didn’t mention was that twitter.sucks was in my This.sucks account for probably less than 10 minutes before I removed it.
I have no beef with Twitter and no particular desire to moderate a .sucks discussion forum.
After removing twitter.sucks from my account, I noticed that This.sucks again gave me the option to “register” a free .sucks domain.
So I experimentally “registered” thisdotsucks.sucks too.
Again, the domain started resolving, showed up in Whois, and the associated WordPress site went live within seconds.
At this point, I discovered that I had admin privileges for both twitter.sucks and thisdotsucks.sucks sites simultaneously.
Suspecting that I may have found a bug that would allow anyone to register an essentially unlimited number of free and potentially trademark-matching .sucks domains, I informed This.sucks of my findings in the interest of responsible bug disclosure and ended my blog post prematurely.
Late Friday, This.sucks spokesperson Phil Armstrong told me that it wasn’t a bug after all.
He said that the company allows one “do-over”. So if you register a name for free, then delete it, you get another one for free.
He also said that WordPress admin privileges for domains removed from user accounts expire after a period (I had admin rights for the twitter.sucks web site for roughly 48 hours after I deleted it from my account.)
Right now, the domain twitter.sucks still exists, registered to This.sucks as before, as does the associated web site. I have no idea if another user has taken over its administration or if it’s in some kind of limbo state.
All I know is that it’s nothing to do with me any more.

How I just registered Twitter.sucks for free in just five clicks

Kevin Murphy, December 18, 2015, Domain Registries

This morning, I caused the registration of and was given control of a web site at twitter.sucks.
I didn’t pay a thing, though I did — by checking a box linked to hidden terms and conditions — promise to pay $10,000 if I was later determined to be working for Twitter.
Ordinarily, registering a .sucks domain would have cost me over $200.
The controversial This.sucks service (which may share ownership with .sucks registry Vox Populi) has gone live and is giving out 10,000 .sucks web sites for free.
Users, who can sign up merely by connecting their Facebook or LinkedIn accounts, are able to cause This.sucks to register names on their behalf.
They are then immediately given limited control over a WordPress blog hosted at that domain, though not to the associated name servers or Whois records.
It’s actually quite a slick, streamlined service, that could quite easily dramatically increase the number of active .sucks site overnight.
But it’s going to cause no end of headaches for trademark owners.
Earlier this week, you may recall DI reporting that This.sucks seemed to have registered the .sucks names matching the brands of Twitter, Adobe, Goldman Sachs and Justin Timberlake.
It seems that this may have been a test of the This.sucks service, as I was tipped off last night that twitter.sucks was no longer registered.
Here’s how I got control over the twitter.sucks web site in just FIVE clicks.
This.sucks has a domain availability query box, just like a regular registrar. I looked up “twitter”:
This.sucks 1
Seeing that the domain was available, I went through the two-click process of allowing This.sucks to use my Facebook login credentials.
This.sucks 2
Obviously, while I used a genuine Facebook account, I see no reason why I couldn’t have used a fake one.
After connecting, I was bounced back to This.sucks and was given the ability to register twitter.sucks in a single click.
This.sucks 3
I also had to check a box confirming:

I’m a free-thinking individual, not a corporate yes-man. I agree to the terms and conditions and any penalties which may apply.

Clicking either of the T&C links, or hovering over the question mark, will introduce you to the concept of a $10,000 penalty.
This.sucks 4
That’s right — by causing This.sucks to register a .sucks domain, you agree to pay $10,000 if the company decides, in its “sole discretion” that you are affiliated with the matching trademark owner. The terms state:

Site Runners on this.sucks must be individuals who have no affiliation with the subject matter of the Site. You can’t be running the Site on behalf of a company, entity or anyone who is the subject of the Site.
As a Site Runner you agree that if you are found by this.sucks, in our sole discretion, to be in violation of this principal, that a $10,000 USD payment to This.sucks will immediately become due and payable. You will also no longer be a Site Runner with us. Your Site may also be given to a different Site Runner to run.
If you think a Site is being run by someone acting on behalf of the subject of the Site, please email us at whistleblower@this.sucks

Given that Twitter’s lawyers are probably going to hate me for doing this, I felt pretty confident in accepting this risk.
In addition, at this point This.sucks has not asked me for any payment information. If they want $10,000 off of me, they can take a hike, I figure.
So I clicked the “Register Now” button.
Bam! In under 10 seconds the domain name twitter.sucks existed in DNS, in Whois, and there was a simple WordPress web site there that I, to a significant extent, controlled.
The domain is registered to This.sucks, which makes it clear on its web site FAQ that its users — or “Site Runners” — do not actually own the domains they cause to be registered.
This.sucks 6
As administrator of the WordPress site, I am able to create and update blog posts as well as change the appearance by switching between a limited selection of themes. I can also edit and delete comments and manage registered users.
There’s a little bit more to my story — which I cannot get into for now.
For the moment, it must suffice to say that this is a whole new world for famous brand owners.
They can either pay the roughly $2,000 required to defensively register their brand in .sucks, or they can try to sneak through a free (or $0.99 per month) registration at This.sucks at the risk of being billed $10,000 if they get rumbled.

Twitter and Justin Timberlake targeted by This.sucks

Kevin Murphy, December 15, 2015, Domain Registries

This.sucks, a company with close ties to .sucks registry Vox Populi, has started registering domain names matching famous brands to itself.
Twitter, along with singer Justin Timberlake, software maker Adobe and investment bank Goldman Sachs all saw their matching .sucks domains registered by This.sucks on Friday, according to the .sucks zone file and Whois queries.
The domains twitter.sucks, goldmansachs.sucks, justintimberlake.sucks and adobe.sucks currently resolve in browsers, but only to a password-protected web site.
New York-based This.sucks says its service is in beta. It plans to give 10,000 .sucks domains away for free, and to sell them for as little as $12 per year. Its business model has not been revealed.
That’s a deep discount from their regular $250 suggested retail price, which rises to $2,500 for domains matching famous brands.
Technically, the company should have just paid around $10,000 for the four brand-matching domains it has just registered.
But it is broadly suspected that This.sucks shares ownership with Vox Populi, the .sucks registry operator, which would make this a case of the right hand paying the left.
As we uncovered in October, Vox Populi originally hosted This.sucks’ web sites and the CEO of Momentous, which founded Vox Pop, paid for its web site to be developed.
The two companies also share a physical address and a Cayman Islands lawyer.
Vox Pop has denied any involvement in This.sucks, saying it’s just another customer.
It will be interesting to see how long it takes for one of the four affected brands to file a UDRP or URS complaint on these new domains.
As far as I can tell, the .sucks namespace currently has an unblemished UDRP record.
Unlike rival Top Level Spectrum, which runs .feedback, neither Vox Pop nor This.sucks has revealed any plans to use brands belonging to third parties as part of their services.
TLS has said it plans to sell 5,000 branded .feedback domains to a third party after its sunrise period ends next month.
It has already registered fox.feedback to itself as one of its special 100-domain pre-sunrise registry allowance.
Since we last reported on .feedback a month ago, the registry appears to have also registered the names of all the current US presidential candidates — such as donaldtrump.feedback and hillaryclinton.feedback — to itself.
The sites are all live, as is santaclaus.feedback, which seeks commentary on the “fictional” character.

Schilling: registries could wind-down unprofitable gTLDs

Kevin Murphy, December 4, 2015, Domain Registries

New gTLD portfolio registries may one day decide to wind down some of their gTLDs if they fail to reach profitability.
That’s according to Uniregistry CEO Frank Schilling, who told DI today that registries may “sunset” under-performing TLDs.
His comments came in response to our post earlier today about registries going out of business involuntarily due to lack of sales.
But he’s referring to registries managing large numbers of strings, winding down the unprofitable ones in a controlled manner.
“I can’t see Uniregistry doing that today, but if in round two we get 100 strings that all kill it and we have some round one stuff that sucks, yes,” he said in an email. “I would consider raising prices to get the string profitable or sunset the string.”
“That said,” he added, “that’s 5-8 years out [and] by then even the slowest should be profitable.”

.feedback regs Fox trademark to itself during sunrise

Kevin Murphy, November 12, 2015, Domain Registries

Top Level Spectrum, the new .feedback registry, has painted a second gigantic target on itself by registering to itself a .feedback domain matching one of the world’s largest media brands.
The company has registered fox.feedback and put up a web site soliciting comment on Fox Broadcasting Company.
This has happened whilst .feedback is still in its sunrise period.
The intellectual property community is, I gather, not particularly happy about the move.
The domain fox.feedback points to a web site that uses TLS’ standard feedback platform, enabling visitors to rate and comment on Fox.
The site has a footnote: “Disclaimer: This site is provided to facilitate free speech regarding fox. No direct endorsement or association should be conferred.”
Fox had no involvement with the registration, which Whois records show is registered to Top Level Spectrum itself.
Registry CEO Jay Westerdal said that the domain is one of the 100 “promotional” domains that new gTLD registries are allowed to set aside for their own use under the terms of their ICANN contracts.
Registries usually register names like “buy.example” or “go.example”, along with the names of early adopter anchor tenant registrants, using this mechanism.
I’m not aware of any case where a registry has consciously registered a famous brand, without permission, as part of its promotional allotment.
“The website is hosted automatically by the Feedback platform,” Westerdal said. “Fox Television Network has raised no concerns and has not applied for the domain during sunrise. We are testing out promotion of the TLD with the domain as per our ICANN contract.”
Fox may still be able to buy the domain during sunrise, he said.
“This is a Registry Operation name. During sunrise, If we receive an application from a sunrise-eligible rights holders during sunrise for a Registry Operations name we may release the name for registration,” he said.
Fox’s usual registrar is MarkMonitor. Matt Serlin, VP there, said in an email that the TLS move could be raised with ICANN Compliance:

I find it curious that this branded domain name would have been registered to the registry prior to the sunrise period which is restricted to the 100 registry promotional names. The fact that the domain is actually resolving to a live site soliciting feedback for The Fox Broadcasting Company is even more troubling. MarkMonitor may look to raise this to ICANN Compliance once the registry is able to confirm how this domain was registered seemingly outside of the required process.

The IP community originally fought the introduction of the 100-domain pre-sunrise exception, saying unscrupulous registries would use it to stop trademark owners registering their brands.
While there have been some grumblings about registries reserving dictionary terms that match trademarks, this may be the first case of a registry unambiguously targeting a brand.
Top Level Spectrum courted controversy with the trademark community last week when it told DI that it plans to sell 5,000-brand match domains to a third party company after .feedback goes into general availability in January.
Westerdal told us this is not “cybersquatting”, as the sites contain disclaimers and are there to facilitate free speech.
What do you think about this use of brands as “promotional” domains?
It’s indisputably pushing the envelope of what is acceptable, but is it fair? Should registries be allowed to do this?

Forget .sucks, .feedback will drive trademark owners nuts all over again

Kevin Murphy, November 4, 2015, Domain Registries

Top Level Spectrum, the new gTLD registry behind .feedback, plans to give sell domains matching 5,000 of the world’s top brands to a third party that does not own the trademarks.
That’s one novel element of a .feedback business model that is guaranteed to drive the intellectual property community crazy in much the same way as .sucks did earlier this year.
The other piece of ‘innovation’ will see all .feedback domains — including the 5,000 brands — point by default to a hosted service that facilitates comment and criticism.
An example of such a site can be seen at www.eggsample.feedback. The registry’s CEO, Jay Westerdal, has a .feedback site at www.jay.feedback
If you agree to use the hosted service with your domain, the domain and service combined will cost a minimum of just $20 per year.
However, if you want to turn off the hosted service and use your .feedback like a regular domain, pointing to the web site of your choice, the price will ratchet up to $50 a month, or $620 a year.
Those are the wholesale prices. Both services will be offered through registrars, where some markup is to be expected.
The hosted service is being offered by Feedback SAAS LLC, a company that, judging by its web site, appears to share ownership with Top Level Spectrum, though Westerdal says the two firms have different employees.
It’s not dissimilar to the model employed by .tel, where name servers by default point to a registry-hosted service.
Unlike .tel, .feedback registrants will be able to opt out of using the SAAS service and point their domains to whatever name servers they want.
Westerdal told DI that .feedback is in the process of making a deal with a “third party” he could not yet name to have 5,000 branded .feedback domains deployed during the Early Access Period of the .feedback launch. That’s scheduled to start January 6.
“We are striking a deal to get feedback sites out there. We want everything to have feedback,” he said. “We are signing an agreement to get the ball rolling by doing a founders program to get names out there. Your favorite shoe, your pizza place, your everything.”
“The sites are all geared towards free speech and giving reviews,” he said. He said:

No trademark infringement will occur though, the sites are all geared towards free speech and giving reviews. Confusing the public that the brand is running the site will not happen, each site has a disclaimer and makes it clear the brand is not running the site.

Asked whether we were talking about a genuine third party or a shell set up by the registry, he said: “A real third party. I am not playing games.”
He said the higher pricing for the naked domain registration is intended to discourage companies from turning off the domains matching their brands.
The whole point of .feedback is to solicit feedback.
The as-yet unspecified third-party taking possession of the 5,000 brand names would not be prevented from selling the domains to the matching brand owner, or to any third parties, he said, though he would not be in favor of such a move.
He said that $20 a year to run a configurable .feedback site, with moderator privileges, is a “great deal” compared to the $300-a-month service he said consumer review site Yelp offers.
The SAAS service will make additional revenue by selling added features, suitable for enterprises, he said.
.feedback went into its sunrise period last week with a $2,000 wholesale fee — the same high price that attracted criticism for .sucks.
The original Registry Service Evaluation Process for the .feedback service hit ICANN over a year ago (pdf).
I missed it then. Sorry.
I noticed it today after corporate registrar MarkMonitor blogged about it.
Matt Serlin, VP of MarkMonitor, who blogged his opinion on .feedback’s strategy earlier today, said in an email that the .feedback strategy was “more objectionable” than he had thought, and that “[W]e would most likely look to raise to ICANN if that is his stated intent.”

.cars domains to start at $45,000, retail for $2,500

Kevin Murphy, October 29, 2015, Domain Registries

Cars Registry has set pricing for .car, .cars and .auto domains at crazy-high levels.
If you want to buy a domain in any of the three gTLDs on day one, it will cost you a whopping $45,000.
If you buy one during regular general availability, it’s likely to set you back $2,500.
The registry, a partnership of Uniregistry and XYZ.com, has set its registry fee at $2,000, according to an email sent to registrars this week.
That’s a buck higher than .sucks, one of the most expensive new gTLDs to launch to date.
The sunrise fee will be $3,000 — made up of the regular $2,000 fee plus an added $1,000. Again, that’s higher than .sucks.
The Early Access Period — which, as reported yesterday, has replaced the more usual landrush — will run for nine days with prices ranging from $45,000 to $5,000.
Compared to the usual models of XYZ.com and Uniregistry, which tend towards the mass-market, these prices are colossal.
I wonder how much the pricing was influenced by the fact that the registry has the car-related gTLD market almost entirely sewn up.
Its only potential competitor is .autos, which has been delegated for almost 18 months but has yet to even reveal its launch plans and probably isn’t going to be available to the mass market anyway.
Sunrise for all three gTLDS is due to start December 9, ending January 12. EAP will begin that day, and GA will start January 20.

Vox Pop denies links to free .sucks company

Kevin Murphy, October 10, 2015, Domain Registries

Vox Populi, the .sucks gTLD registry, has told DI that it is not involved with This.sucks, the company offering free .sucks domains, after evidence to the contrary was discovered.
Meanwhile, the president of ICANN’s intellectual property constituency says he’s concerned that the registry may be using This.sucks to try to misrepresent its prices.
This.sucks, as reported yesterday, is currently in pre-launch. It has said it plans to give away up to 10,000 .sucks domains to customers who want to run blog/forum sites commenting on companies, products and other general issues.
Its standard pricing would be $1 per month, a massive discount on the regular $200+ annual registry fee, which would require it to make substantial additional revenue to cover its costs.
That’s assuming it is really an independent company, of course.
Some people think it’s just a front for Vox Pop, and there are compelling reasons to believe they’re correct.
Rob Hall paid for the web site
The most compelling piece of evidence, for me, is that somebody called Robert Hall paid for design of the This.sucks web site.
The one-page launch site was created by a designer responding to an ad on the crowdsourcing web site DesignCrowd.
The title of the solicitation page is “Modern, Bold Web design job. Web brief for Robert Hall, a company in Turks and Caicos Islands”.
Rob Hall is the CEO of Momentous, the company that founded Vox Pop and as far as I know still owns most of it.
He’s the technical contact for .sucks in the IANA database, albeit with a Barbados, rather than Turks and Caicos, address.
The DesignCrowd contest seems to have been submitted around August 26 this year, two days before This.sucks existed as a legal entity in New York state.
Hall seems to have paid $370 for the winning design and $10 to five runners-up.
The site is/was hosted on Vox Pop’s server
Another compelling link between Vox Pop and This.sucks is the server on which their respective domains are hosted — it’s the same box.
According to DomainTools, this.sucks is hosted on a server with just 16 other domains. Four of those — everything.sucks and that.sucks, as well as sister sites this.rocks and that.rocks — belong to This.sucks Inc.
The remaining 12 domains — including buy.sucks, register.sucks, search.sucks — are all .sucks promotional sites owned and operated by Vox Populi.
This.sucks reverse Whois
Berard told DI in an email that Vox Pop has never hosted This.sucks sites:

I suspect that in doing the deal for the premium domain names they wanted, some remained pointed at one of our forwarding servers to which they were first assigned. But, as with the other names they have registered, that will sort itself out over time. We have never hosted their website.

It’s true that DomainTools warns that domains may still be listed for up to two weeks after they have been removed from an IP address.
But I don’t think Vox Pop’s explanation explains how this.rocks and that.rocks wound up listed as hosted on the same IP address as the .sucks domains.
The .rocks gTLD is run by Rightside, not Vox Pop, so I can’t see an obvious reason why they started out pointing to a Vox Pop box.
I asked Berard for clarification on this point but have yet to receive a reply. A This.sucks spokesperson has not responded to an inquiry about the apparently shared hosting.
Caymans link
It also turns out that somebody formed a Cayman Islands company called This.sucks Ltd on August 25 this year, three days before the New York-based This.sucks Inc was registered.
The Cayman company’s registered address is the Georgetown PO Box number for Cayman Law Group Ltd, a boutique law firm with a half-finished web site.
That’s the same address Vox Populi gave ICANN (pdf) when it transferred its Registry Agreement from its original Canadian corporate entity to a Cayman-based one this March.
As far as ICANN is concerned, Vox Pop’s legal address is the same address as the new This.sucks Ltd entity.
The New York entity’s official address is a PO Box at a strip-mall UPS store in small-town New York state.
It might be interesting, but probably not relevant, to note that Cayman Law’s domain name is owned, according to Whois, by a domainer who lost one of the first “-sucks.com” UDRP cases, back in 2003.
I asked Berard if Vox Pop had any links to the Cayman company but have not yet received a reply.
Everything.sucks
This.sucks has the same business model as was proposed by Vox Populi under its “Consumer Advocate Subsidy” program, which it proposed at the start of the year.
The company had planned to find an independent partner that would subsidize .sucks registrations in cases where the registrant was a genuine third-party critic (rather than the company itself).
The price was to be around $10 a year, the domains would be tied to a hosted forum service, and the name of the service would be Everything.sucks.
That domain, as I reported yesterday, now belongs to This.sucks Inc.
But Berard said This.sucks is not the Consumer Advocate Subsidy, for which a partner has not yet been found. He said:

This is not the consumer subsidy program we have hoped to foster with a non-profit, but it certainly is in keeping with the spirit of our effort. An effort, I must note, that continues. Somethings are harder to do than we’d like!

Why does this matter?
Whether This.sucks is a cloaked registry effort is important to intellectual property interests, which have claimed that subsidized .sucks prices are part of a “shakedown scheme” targeting trademark owners.
The IPC has long suspected that Everything.sucks was just going to be a case of Vox Pop hiding a registry service in a supposedly, but not actually, independent third-party company.
Brand owners that want to register their brand.sucks domain often have to pay over $2,000 a year, but the proposed subsidy would bring that price down to $10 as long as the registrant was not the trademark owner.
IPC president Greg Shatan told DI yesterday:

Any inkling that Vox Pop and This.sucks were linked and pretending not to be, and actively denying it, would be of great concern, not just to the IPC but to the ICANN community at large. It’s all highly suspicious. It’s very hard to believe that it is what they are claiming it is.

The concern centers on an apparent attempt to misrepresent their pricing and hide how much Vox Pop is actually being paid by brand owners vs. other registrants for domain registrations.
Any plans to monetize this.sucks sites would also be of considerable interest. The non-commercial nature of “sucks” sites (generically speaking) is often cited in response to cybersquatting concerns. I’m not sure how this would change that equation.

Back in March, as .sucks was getting ready to launch, the IPC wrote to ICANN to say Vox Pop was trying to “conspire with an (alleged) third party to ‘subsidize’ a complaint site should brand owners fail to cooperate in Vox Populi’s shakedown scheme”.
The IPC wrote (pdf):

Through this “subsidy,” Vox Populi effectively shows brand owners that, if they fail to register at an exorbitant price, a third party will be able to register for a pittance. This is an essential element of Vox Populi’s coercive scheme.

The IPC also claimed that the proposed subsidy would count as a “registry service” under the terms of Vox Pop’s contract and would therefore need approval by ICANN.
Berard told DI on Thursday, quite unambiguously, that This.sucks is “not a registry service”.
If This.sucks isn’t being financially supported by Vox Pop, it’s going to have to find a lot of revenue.
With a $199 basic registry fee, a 10,000-domain giveaway would cost almost $2 million.
Given that This.sucks is actively courting registrants of brand names — many of which are likely to appear on Vox Pop’s premium list — the cost could be literally 10 times as much.
Vox Pop has made it clear that it’s a subsidy, not a registry discount.
In a July blog post addressing perceived inaccuracies in the media coverage of .sucks, Berard wrote:

Whether a registration is subsidized, the price to the registrar and registry is unaffected. That is the nature of a subsidy. Neither is the program to be offered by the registry. We are talking to a number of free speech advocates and domain name companies to find the right partner.
When we do, likely sometime in the Fall, we will make sure that the information is clear and available so that, well, you can look it up.

(Thanks to George Kirikos for the tip about the existence of the Cayman company)