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Domains “worth $3 million” put up for first industry hackathon

Kevin Murphy, April 12, 2016, Domain Services

The domain name industry is about to get a new type of conference.

Domain broker Ryan Colby of Outcome Brokerage is to host what is believed to be the first domain “hackathon”, and says he already has domains he estimates as being worth $3 million submitted for the event.

Codemology, as the conference will be called, will be held over two days in Charlotte, North Carolina, in October.

The idea is to bring the owners of premium domain names together with angel investors and young, skilled developers, with the hope that some workable business ideas might emerge.

“We are trying to utilize the ‘excess capacity’ of premium domains in the marketplace, which are just sitting there doing nothing, oozing with potential, waiting for the next killer idea,” Colby told DI today.

Over the weekend of the event, the goal will be to create a bunch of “minimal viable products” for each selected domain that could be developed further.

It’s a free event, but attendees need to go through an application process before being given tickets. Colby said he’s marketing the event at university students and those who regularly attend hackathons.

The list of domains that will be used has not been finalized yet, but Colby’s clients have already submitted at least four pretty terrific one-word dictionary .coms.

Domains in new gTLDs will also make an appearance.

“If you’re a domain owner, why not submit it to the kid from MIT who might have a winning idea? There’s no risk, and huge upside if something comes about,” Colby said.

The developers keep the IP rights to whatever they code during the event, he said.

“It’s up to the domain owner to choose to collaborate, buy their IP or walk away,” he said.

Colby said he’s working on an app that will allow people to vote on domains that have been submitted, with the most popular ones being used at Codemology.

He said he’s hopeful of running similar events in other cities after the Charlotte conference.

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No, .kids isn’t a community either

Kevin Murphy, April 12, 2016, Domain Registries

DotKids Foundation has comprehensively lost is .kids Community Priority Evaluation.

The company’s CPE results came out at the weekend (pdf), showing a score of 6 out of the 16 available points, a long way short of the 14-point passing score.

Like other “community” new gTLD bids before it, .kids failed because the Economist Intelligence Unit panel decided that the application was an attempt to create a community rather than represent an existing one. It wrote:

The Panel determined that this application refers to a “community” construed to obtain a sought-after generic word as a gTLD string, and that the application is attempting to organize the various groups mentioned in the documentation through a gTLD.

The application scored a big fat 0/4 on the question of whether the community exists and, as a knock-on effect, another 0/4 on whether the .kids string represents the community.

It picked up 3/4 for its registration policies and 3/4 on community endorsement.

The CPE failure means DotKids will have to face rival Amazon at auction, where one imagines the not-for-profit foundation will have a hard time winning.

ICANN’s CPE pipeline currently only has one active application, where Merck KGaA is fighting to avoid an auction with rival Merck Registry Holdings, Inc.

The latter .merck, and Vistaprint’s .webs application, have both also been invited to CPE.

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Rightside rejects Negari’s $5m new gTLD offer

Rightside has turned down Daniel Negari’s $5 million offer to acquire four of its new gTLDs, according to Negari.

The XYZ.com CEO told DI via email tonight:

I was looking forward to operating .Army, .Dance, .Dentist, and .Vet under the XYZ umbrella. I’m disappointed that Rightside didn’t entertain my offer, especially since I believe $5MM was more than fair. I believe these and other new TLDs are worth more to me than any other registry operator due to my growing enterprise. However, it’s understandable for Rightside to want to monetize on these assets.

Rightside has told him it had reviewed the offer and was not interested, he said.

The offer was made in a March 30 open letter to the company and Securities and Exchange Commission filing and expired last night, April 7.

There was some speculation about whether it was a genuine offer, just an attempt to boost Rightside’s share price, or both.

Negari and his COO, Mike Ambrose, own about 5% of Rightside between them, following an $8.5 million investment.

Rightside’s ability to grow revenue from its new gTLD portfolio has become the focus of attention due to the intervention of activist investor J Carlo Cannell of Cannell Capital, who reckons the company is paying too much attention to rubbish TLDs at the expense of its profitable registrar businesses.

Negari thinks he would be able to grow .army, .dance, .dentist, and .vet.

The largest of those gTLDs is .vet, with about 5,200 names in its zone file. It grew by 794 names in the last 90 days.

The other three are below 3,000 names, and are either shrinking or adding fewer than 10 names per day.

XYZ.com’s second-tier portfolio strings, such as .college, .rent and .theatre, are faring a little better, at least in terms of growth. But they are a little younger, and none are over 10,000 names.

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ICANN refuses to play Ted Cruz’s game

Kevin Murphy, April 8, 2016, Domain Policy

ICANN has blown off US senator Ted Cruz by declining to answer a bunch of framed questions about its engagement with China.

In a letter (pdf) to Cruz and fellow senators Michael Lee and James Lankford, ICANN chair Steve Crocker testily explains that ICANN has offices and relationships all over the world, given the nature of its mandate.

There’s a suggestion that ICANN’s board resents the “insinuation” that talking to China means it’s ready to be captured by it or implement its censorship policies.

Crocker wrote:

ICANN does not endorse the views of any particular stakeholder, regardless of the organization’s engagement efforts, the composition of its advisory committees, and where it holds its meetings. In this sense, ICANN’s engagement with China as a global Internet stakeholder does not suggest any level of support for the nation’s government or its policies. Similarly, no endorsement of such matters could reasonably be inferred from the operations of the United States’ largest technology firms operating in China, including Cisco, Dell, HP, IBM, Intel, LinkedIn, Microsoft, Qualcomm and Uber. These firms, like ICANN, do not endorse the policies, laws, and regulations of China simply by operating there. As long as the U.S. Government has a policy of engagement with China, U.S. firms operate there without the insinuation that doing so makes them complicit in China’s censorship.

The letter was written in response to a bullet-pointed list of a few dozen question Cruz has posed in letters over the last couple of months.

The Cruz missives were a fairly obvious fishing expedition, with the senators apparently looking for sticks to beat ICANN with in the form of evidence that the organization is too friendly with the dreaded Chinese.

Some on the right wing of American politics seem to see the transition of ICANN/IANA partially away from US government oversight as a wedge issue they can use to show Obama is happily selling the ‘Murican constitution to China.

But Crocker ducks most of Cruz’s questions, preferring instead to present an alternative narrative.

He does not, for example, give answers to simple factual questions related to former CEO Fadi Chehade’s joining as co-chair of a committee of the China-led World Internet Conference.

Instead, he refers Cruz to a previous letter from Chehade, and notes that Chehade is no longer with ICANN.

He does not answer anything related to XYZ.com’s proposals related to selling .xyz domain names in China, which Cruz reckons could be used to censor the people of Hong Kong.

Neither does he confirm that ICANN pays government-affiliated CNNIC for collocated office space in Beijing, which wasn’t disclosed until it came out at a press conference last month.

I imagine Cruz, in receipt of Crocker’s letter, is feeling much the same as I do when an interviewee waffles in response to simple questions.

Pissed off.

I doubt this exchange is over.

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Nominet has sights set on .org after M+M deal

Nominet chief Russell Haworth is hopeful that its new outsourcing deal with Minds + Machines will help it win a much more lucrative back-end contract — .org.

The company is among the 20-plus companies that have responded to Public Interest Registry’s request for proposals, as its back-end deal with Afilias comes to an end.

Nominet is one of a handful of companies — which would also include Verisign, Afilias, CNNIC and DENIC — that currently handles zones the size or larger than .org, which at over 10 million names is about the same size as .uk.

It, like PIR, is also a not-for-profit entity that donates excess funds to good causes, which could count in its favor.

But Haworth told DI today that showing the ability to handle a complex TLD migration may help its bid.

“I personally think that it would stand us in good stead, but we’ll have to see how the process plays out,” he told DI today. “With .org there’s 19-odd players pitching for that, so it’s a fairly competitive field.”

If the migration were to happen today, we’d be looking at around 300,000 domains changing hands. It’s likely to be a somewhat larger number by the time it actually happens.

Collectively, it will be one of the largest back-end transitions to date, though the largest individual affected gTLD, .work, currently has fewer than 100,000 names in its zone.

Haworth said that the plan is to migrate M+M’s portfolio over to Nominet’s systems one at a time.

He was hesitant to characterize the migration process as “easy”, but said Nominet already has such systems in place due to its role as one of ICANN’s Emergency Back-End Registry Operators.

Earlier this year, Nominet temporarily took over defunct dot-brand .doosan, in order to test the EBERO process.

A back-end migration primarily covers DNS resolution and EPP systems.

It sounds like the EPP portion may be the more complex. Some of M+M’s gTLDs have restrictions and tiered pricing that may require EPP extensions Nominet does not currently use in its TLDs.

But the DNS piece may hold the most risk — if something breaks, registrants names stop resolving and web sites go dark.

Haworth said Nominet is also talking to other new gTLD registries about taking over back-end operations. Registries signed three, five or seven-year contracts with their RSPs when the 2012 application round opened, and some are coming up for renewal soon, he said.

Nominet says it will become a top ten back-end after the M+M migration is done.

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