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VeriSign takes over .gov

Kevin Murphy, December 22, 2010, Domain Tech

VeriSign has taken over registry functions at .gov, the top-level domain for the US government.

IANA records show that VeriSign Global Registry Services was named technical contact for .gov possibly as recently as this Monday.

The TLD is still administratively delegated to the US General Services Administration. Google’s cache of the IANA site shows the GSA was the technical contact for .gov as recently as October 29.

VeriSign certainly kept this contract win quiet.

At least, the first I heard about it was tonight, in an email VeriSign sent to the dns-ops mailing list, asking DNS administrators to reconfigure their DNSSEC set-up to reflect the change.

A KSK [Key Signing Key] roll for the .gov zone will occur at the end of January, 2011. This key change is necessitated by a registry operator transition: VeriSign has been selected by the U.S. General Services Administration (GSA) to operate the domain name registry for .gov.

The email expresses the urgency of making the changes, which are apparently needed in part because .gov was signed with DNSSEC before the root zone was signed, and some resolvers may be configured to use .gov as a “trust anchor” instead of the root.

The .gov TLD is reserved for the exclusive use of US federal and state government departments and agencies.

It’s certainly a prestige contract for VeriSign.

This appears to be the GSA page awarding the contract to VeriSign, in September, following an RFP. It’s valued at $3,325,000.

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Go Daddy offers Whois privacy for .co domains

Kevin Murphy, December 22, 2010, Domain Registrars

.CO Internet has started allowing registrars to offer Whois privacy services for .co domains, according to Go Daddy.

In a blog post, Go Daddy’s “RachelH”, wrote:

When the Internet Corporation for Assigned Names and Numbers (ICANN) and .CO Internet S.A.S. drafted the .co policy earlier this year, they decided to hold off on private registration to prevent wrongful use of the new ccTLD — especially during the landrush. Now that .co has carved its place among popular TLDs, you can add private registration to your .co domain names.

Unless I’m mistaken, ICANN had no involvement in the creation of .co’s policies, but I don’t think that’s relevant to the news that .co domains can now be made private.

During its first several months, .CO Internet has been quite careful about appearing respectable, which is why its domains are relatively expensive, why its trademark protections were fairly stringent at launch, and why it has created new domain takedown policies.

It may be a sign that the company feels confident that its brand is fairly well-established now that it has decided to allow Whois privacy, which is quite often associated with cybersquatting (at least in some parts of the domain name community).

It could of course also be a sign that it wants to give its registrars some love – by my estimates a private registration would likely double their gross margin on a .co registration.

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ICANN to tackle Trojan TLDs

Kevin Murphy, December 22, 2010, Domain Registries

When failing community-based top-level domain registries attempt to change their business models, ICANN may in future have a new way of dealing with them.

That seems to be a possible result of Employ Media’s controversial .jobs liberalization plans and the subsequent Reconsideration Request, which I blogged about last week.

The .jobs reconsideration revealed that not only are Reconsideration Requests a rubbish way to appeal ICANN’s decisions, but also that the Registry Services Evaluation Process is often a rubbish way to handle major contract changes.

The RSEP was introduced back in 2005 in belated response to a couple of controversial “services” that VeriSign, testing boundaries, had planned to unilaterally introduce in the .com registry, notably Site Finder and the Waiting List Service.

But since then the process has been used as a general-purpose tool for requesting changes to registry contracts, even when it’s debatable whether the changes fit the definition of “registry services”.

For example, when .jobs launched five years ago, it was put into Employ Media’s contract that the TLD was designed for companies to register their brands and list their jobs, and that’s all.

But that model didn’t work. It’s one of the least successful TLDs out there.

So the registry decided it could make more money with general purpose jobs boards, using generic .jobs domains. But it did not necessarily want to let existing independent jobs sites take part.

For want of a better term, I’ll call this an example of a “Trojan” TLD – a registry that gets its attractive TLD string approved by ICANN after making a certain set of promises, then later decides to move the goal posts to broaden its market, potentially disenfranchising others.

I’ve no reason to believe it was a premeditated strategy in Employ Media’s case, but precedent has now been set for future TLD applicants to use “community” as a foot in the door for broader aspirations.

To take a stupid, extreme, unrealistic example, imagine that ICM Registry’s .xxx flops badly. Should the company be allowed to start selling all the good .xxx domains to churches and other anti-porn campaigners? That would be a pretty big departure from its promises.

There were similar concerns, although not nearly as loudly expressed, with regards to Telnic’s recent contract changes, which will allow it to start registering phone number domain names in .tel, despite years of promises that it would not.

Go Daddy’s policy chief Tim Ruiz objected to the proposal on the grounds that it would be “unfair to other [.tel] applicants and potential applicants to allow an sTLD to change its purpose after the fact.”

The ICANN Board Governance Committee, which handles Reconsideration Requests, acknowledged these problems in its decision on .jobs in Cartagena (pdf), concluding that it:

thinks that the Board should address the need for a process to evaluate amendments that may have the effect of changing, or seeking to change, an sTLD Charter or Stated Purpose of a sponsored, restricted or community-based TLD.

The BGC seems to be saying that the RSEP is not up to the task of dealing with community-based TLDs that later decide their business plans are not the money-spinners they had hoped and want to loosen up their agreed community restrictions.

The committee went on to say that:

Because such a process may impact gTLDs greatly and is a policy issue, the GNSO is the natural starting point for evaluating such a process. We therefore further recommend that the Board direct the CEO to create a briefing paper for the GNSO to consider on this matter, and for the GNSO to determine whether a policy development process should be commenced.

So the GNSO will soon have to decide whether new policies are needed to deal with broad contract changes at failing community TLDs.

Any new policies would, I believe, be binding on community TLDs approved under the new gTLD program as well as older sTLDs, so it will be an interesting policy track to follow.

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OpenRegistry latest player in new TLD market

Kevin Murphy, December 21, 2010, Domain Registries

OpenRegistry has become the domain name industry’s newest top-level domain registry operator.

The new company, which went by the name Sensirius while in stealth mode, announced itself officially at the ICANN meeting in Cartagena two weeks ago.

Jean-Christophe Vignes is giving up his operational role at EuroDNS to be CEO of the new company, which hopes to bring more modular, custom-tailored options to organizations that want to launch new TLDs.

For “open”, read “flexible” – OpenRegistry plans to differentiate itself by offering clients “a la carte” options, rather than the one-size-fits-all services it believes some competitors offer.

“We’ve noticed that no two clients are the same,” Vignes said. “Some of them are already pretty well taken care of when it comes to drafting applications and so on, and just need the registry solution, but others are happy to have the full suite of our services.”

The idea is that a city TLD or niche community TLD will not necessarily have the same needs as a full-blown mass-market gTLD, Vignes said.

OpenRegistry plans to make three packages available at first, according to its web site – all-inclusive, managed registry, and software-only. Prices appear to start at around 100,000 euros.

The software itself is based on the registry expertise used in the design of Belgium’s .be and EurID’s .eu, although it appears to be a fresh creation.

Vignes said that it will be able to natively handle start-up functions such as premium domain auctions and interfacing with the IP Clearinghouse.

The company does not intend to apply for its own TLDs, Vignes said, allowing it to focus on its clients.

But it does plan on being somewhat selective on which TLDs with which it works, with “feasibility studies” one of the services on offer.

Like the incumbent registry triumvirate of VeriSign, Afilias and Neustar, OpenRegistry hopes that the ICANN-accredited registrar community will be a good source of clients.

ICANN recently said it plans to lift restrictions on registrars applying for and running registries.

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Whistleblower alleged shenanigans at DirectNIC

Kevin Murphy, December 18, 2010, Domain Registrars

A former employee of a company allegedly affiliated with domain name registrar DirectNIC claimed the company operated a fraudulent domain arbitrage scheme using Yahoo ads and Parked.com.

Mark Deshong filed a whistleblower lawsuit in August. It was settled in October, but its claims are quite interesting, and don’t appear to have been reported on elsewhere.

Until April this year, Deshong worked for a company called Keypath LLC, a domain registration and monetization company based in Tampa, Florida.

According to his lawsuit (pdf), Keypath is owned by the same bunch of people (notably Sigmund Solares and Michael Gardner) who run DirectNIC and Parked.com, as well as entities including Intercosmos Media Group and The Producers Inc.

Deshong said he was fired after blowing the whistle on a “fraudulent” scheme to bilk money out of Yahoo Search Marketing using the old practice of domain arbitrage.

The suit claimed Keypath bought ads on YSM to bring traffic to sites such as cameras.com that, in turn, displayed nothing but contextual ads generated automatically by YSM.

The company would pay Yahoo small amounts for the traffic it received, but would be paid larger amounts for the traffic it sent elsewhere.

That’s domain arbitrage in a nutshell. It was commonplace among domainers back in 2007 and earlier, and Keypath was far from the only company engaged in the practice.

Yahoo tried to put a stop to arbitrage on its ad network in February 2008, as Domain Name Wire reported at the time, but the lawsuit alleged that Keypath carried on regardless, using bogus identities.

This is when the “fraudulent” behavior is alleged to have commenced.

The suit claimed Keypath “created fictitious, unregistered DBA [Doing Business As] company names” in order to obtain up to 1,000 credit cards from Regions Bank.

The complaint, in an eyebrow-raising paragraph, goes on to list almost 100 of these alleged DBA companies’ names.

Each one of these companies would get a Gmail or Hotmail email address and a Skype phone number for the city where the “fictitious” company was supposedly based, the complaint alleged.

A proxy server would be obtained in each of these cities, which Keypath would use to access YSM and order ads pointing to parked pages, under the guise of one of the DBAs, the suit alleged.

The scheme covered about 50,000 domains and made about $375,000 during January 2010, according to the complaint.

The lawsuit was filed under Florida’s whistleblower act, so while it alleged multiple illegal acts (such as bank fraud and wire fraud) on Keypath’s part, it only attempted to prove wrongful termination.

Deshong basically claimed that he was canned after telling his superiors he could no longer carry out duties he believed to be illegal – he didn’t want to go to jail.

In its response (pdf) to the complaint, Keypath denied essentially all of Deshong’s claims.

It also denied that the company has ties to DirectNIC, Michael Gardner, Sigmund Solares, Intercosmos, Parked.com or The Producers.

(Probably a disingenuous claim. Florida company records show they’re all currently or recently linked to businesses located at 5505 West Gray Street in Tampa, Parked.com’s main US office. Keypath’s web site shows the same address).

5505 West Gray Street

Keypath also accused Deshong of a shakedown, attempting to “extort an unreasonable severance package”, and said that he had “improperly retained” a company laptop after he was fired.

The suit was settled out of court (pdf) on October 25th for an undisclosed sum.

The lawsuit is only tangentially related to the cybersquatting lawsuit Verizon filed against DirectNIC earlier this year. That case appears to be currently tied up in a pre-trial discovery/jurisdictional nightmare.

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