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Domain name industry growth slowed by China crackdown

The massive slump in Chinese domain name registrations appears to have hit the overall domain name market significantly in the first quarter 2010, slowing its growth.

According to the latest VeriSign Domain Name Industry Brief, only one million net new domains were registered across all TLDs in the period, a paltry 0.6% increase.

There were about 193 million domains active at the end of March, up from 192 million at the start of the year.

A million might seem like a lot, until you consider that the market grew by 11 million domains in the fourth quarter and by three million in the first quarter of 2009.

The slump is certainly due to the rapid decline in .cn domains.

China’s ccTLD had about 13.4 million names at the end of last year, and only 8.8 million at the end of March. April’s numbers show the decline continued, with 8.5 million names registered.

The China drag has been caused by a combination of pricing and the Draconian new identification requirements the communist government placed on the registry, CNNIC.

Chinese registrants now have to present photo ID before they can register a domain.

VeriSign’s own .com/.net business did a decent trade in the quarter, up 7% compared to the same quarter last and 2.7% on December to 99.3 million names in total.

With registrations growing by 2.7 million per month, this means VeriSign already has more than 100 million names in its com/net database.

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Red Bull wins court case but loses UDRP

Kevin Murphy, June 8, 2010, Domain Policy

Energy drink maker Red Bull has somehow managed to lose a UDRP complaint over the domain name taurusrubens.com, despite having already won a lawsuit against its current registrant.

“Taurus Rubens” was the name of an air show slash performance art piece sponsored by Red Bull, performed at Salzburg airport in August 2003. There’s a clip here on YouTube.

The day before the show, an Austrian man named Reinhard Birnhuber registered taurusrubens.com and rubenstaurus.com and parked them with his ISP.

Two years later, when Red Bull got wise to the registrations, it offered Birnhuber €500 for them. He countered with a demand for a whopping €1 million.

That was in March 2005. One month later, Red Bull secured an Austrian trademark on the term “Taurus Rubens”. It then filed a UDRP complaint with WIPO.

Judging from that WIPO decision, it’s pretty clear that Birnhuber’s registrations were not entirely innocent.

Not only did he ask a ludicrous price for the domains, he also admitted to knowing about the air show when he registered them, he already owned redbullbag.com, and he gave a bunch of reasons about his plans for developing the domains that WIPO didn’t buy.

Nevertheless, because Red Bull had acquired its trademark rights years after the registrations, apparently just so it had standing under the UDRP rules, WIPO dismissed the complaint.

So Red Bull sued in an Austrian commercial court instead, and won.

Birnhuber appealed, and lost.

The court ruled that he had registered the domains in bad faith and that he should turn them over to Red Bull.

But he has apparently so far refused to do so. So Red Bull this year filed a second UDRP complaint with WIPO, asking for the domains to be transferred to it.

And, bizarrely, Red Bull lost.

WIPO this week denied the company’s complaint on the grounds that the the Austrian court’s ruling is irrelevant under UDRP rules, and that the 2005 WIPO decision should stand.

Here’s a Google translation of the relevant bits:

The panel can see in the above circumstances, no new facts or actions that would warrant a new assessment of the case. In this respect, the complainant fails to recognize that not only “new actions” to the resumption of proceedings are necessary, but this also has to be relevant.

The correct legal result is more than the enforcement of that ruling in Austria, especially as the present legal request (transfer of the domain name) covers with the sentencing order of the Austrian court. Since both parties are domiciled in Austria, is likely a priori, no specific enforcement problems arise. WIPO panels can so far do not replace the state authorities.

So, does Birnhuber get his €1 million? I doubt it. But right now he still owns taurusrubens.com.

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US government requests root DNSSEC go-ahead

Kevin Murphy, June 7, 2010, Domain Tech

The National Telecommunications and Information Administration, part of the US Department of Commerce, has formally announced its intent to allow the domain name system’s root servers to be digitally signed with DNSSEC.

Largely, I expect, a formality, a public comment period has been opened (pdf) that will run for two weeks, concluding on the first day of ICANN’s Brussels meeting.

NTIA said:

NTIA and NIST have reviewed the testing and evaluation report and conclude that DNSSEC is ready for the final stages of deployment at the authoritative root zone.

DNSSEC is a standard for signing DNS traffic using cryptographic keys, making it much more difficult to spoof domain names.

ICANN is expected to get the next stage of DNSSEC deployment underway next week, when it generates the first set of keys during a six-hour “ceremony” at a secure facility in Culpeper, Virginia.

The signed, validatable root zone is expected to go live July 15.

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Charity e.co auction kicks off with $10k bid

Kevin Murphy, June 7, 2010, Domain Sales

The four-day auction of the domain name e.co started less than an hour ago at Sedo, and it has already attracted a five-figure bid.

.CO Internet, the Colombian firm behind the newly liberalized .co ccTLD namespace, is using the auction to plug its upcoming landrush, which kicks off June 20.

Juan Diego Calle, CEO of the registry, previously said e.co is “perhaps the shortest, most memorable digital brand in the world”.

Proceeds from the sale will be donated to the charity of the winning bidder’s choosing.

Due to the high-profile nature of the auction, wannabe bidders have to fill out an application form before posting their bids.

The bidding will conclude during a live event at the Internet Week show in New York this Thursday.

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Nominet appoints Baroness to chair

Nominet, the .uk registry manager, has hired Irene Fritchie, aka Baroness Fritchie, to be its new chair.

No, I’d never heard of her either, but apparently Fritchie is a life peer and a dame, with a seat in the House of Lords since 2005.

Her geek credentials appear to comprise her chairmanship, until last year, of the Web Science Research Initiative, a joint initiative between the University of Southampton and MIT.

So she’s on speaking terms with Tim Berners-Lee, it seems.

Fritchie replaces Bob Gilbert, who quit in March after guiding the organization through a tricky period.

A cynic would say that it’s fortuitous that Nominet now has a member of the UK legislature fighting its corner, given that the recently passed Digital Economy Act originated and was primarily written in the Lords.

The Act created powers for the British government to take over .uk if Nominet screws up by letting domainers commandeer its board.

Fritchie is a cross-bencher, meaning she is beholden to no one political party.

Nominet also said that it has appointed Piers White MBE as a non-executive director. White has a background in banking and currently sits on the board of Ordnance Survey.

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