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ICANN cans broke registrar

Kevin Murphy, October 1, 2010, Domain Registrars

4Domains.com has lost its registrar accreditation after ICANN decided it had gone insolvent.

ICANN has alleged numerous other violations of the Registrar Accreditation Agreement, but told the registrar that its insolvency allows it terminate the accreditation with immediate effect.

ICANN’s letter to 4Domains (pdf) describes a company unable not only to pay its roughly $6,110 in due ICANN fees, but also to fund its registry accounts, service its customers and pay its staff.

From this, ICANN has concluded that the registrar is insolvent, and has terminated its accreditation.

4Domains is acting in manner that endangers the stability and operational integrity of the Internet, which is a separate grounds to support ICANN’s termination of the 4Domains RAA.

ICANN said 4Domains was also failing to escrow its registrant data, “due to an inability of the 4Domains programmer to resolve the escrow deposit issues”.

But it has this week supplied ICANN with an electronic copy of its customer database, so it appears that most registrants will be protected should their domains be transferred to another registrar.

The company has been told it may now nominate another registrar to take over its accounts in bulk.

4Domains was accredited in 2000, making it one of the first registrars to go live. According to DotAndCo.net, it has about 25,000 active registrations in five gTLDs.

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Now .mobi wants to auction ultra-short domains

Kevin Murphy, October 1, 2010, Domain Registries

Afilias-owned dotMobi has applied to ICANN to auction off one and two-letter .mobi domain names, following in the footsteps on other top-level domain registries.

The company had a plan to selectively allocate some such domains based on a Request For Proposals approved by ICANN almost two years ago, now it wants to be able to auction off whatever domains remain.

dotMobi said (pdf):

Once the previously approved RFP round has concluded, dotMobi will conduct an auction of any remaining domains according to a schedule determined by dotMobi. For any domains not allocated during either the RFP or auction rounds, dotMobi will announce a release date and will invite open, first-come-first-served registrations.

Requests to allocate one and two-character domains have previously been submitted and approved by Neustar (.biz), Afilias (.info), puntCAT (.cat), Tralliance (.travel) and RegistryPro (.pro).

Telnic (.tel) has a similar proposal still under board review.

Such auctions offer a one-time windfall for the registry operator. NeuStar’s .biz auction raised a reported $360,000 last year.

As DomainNameWire reported yesterday VeriSign has withdrawn its application for one-letter auctions in .net. Its proposal would have seen expired one-character domains returned to registry control, allowing them to be re-auctioned.

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Arab League asks ICANN for recognition

Kevin Murphy, October 1, 2010, Domain Policy

The League of Arab States has called on ICANN to formally recognize the Arab region.

UPDATED: Read this correction.

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Price increase on the cards for .biz

Kevin Murphy, September 30, 2010, Domain Registries

NeuStar is to raise its registry fee on .biz domain names by $0.45, to $7.30 year, according to a letter sent to ICANN by the company’s vice president of registry services.

The changes will come into effect April 1, 2011, following the mandatory notice period registries have to give their registrar partners.

NeuStar has just seen a monthly decrease in total .biz registrations, from 2,070,343 to 2,065,389 at the start of the month, according to HosterStats.com.

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New TLD competition group throws in the towel

Kevin Murphy, September 29, 2010, Domain Registries

The ICANN working group tasked with deciding whether registrars should be allowed to apply for new top-level domains has failed to reach agreement after over six months of talks.

This means it will be down to the ICANN board of directors to decide, possibly at its next meeting, what the rules should be on vertical integration and cross ownership in new TLDs.

It’s been pretty clear from the Vertical Integration Working Group’s recent discussions that there would be no chance of the group reaching a consensus on the headline topics in the remaining time allotted to it.

Within the last two hours, the GNSO Council has been notified that the group has failed to reach consensus.

Should ICANN-accredited registrars be allowed to apply for new TLDs? Should registries be allow to sell direct to consumers? Should registrars be able to own stakes in registries? Vice versa? How much? Whither the .brand?

All these questions will now have to be resolved by the ICANN staff and board.

Currently, the Draft Applicant Guidebook limits registry/registrar cross-ownership to 2%, effectively barring existing registrars from applying to run new TLD registries.

While the VI working group has been working on the problem since February, positions quickly became entrenched based on the commercial interests of many participants. There has been no substantial progress towards compromise or consensus in months.

But the group did manage to reach rough agreement on a number of peripheral problems that will have a lesser economic impact on the incumbent registries and registrars.

For example, the board will likely be told that “single registrant, single user” TLDs, a variant of the .brand where the registry is the only registrant, should be looked into further.

On the core issue of cross ownership, three proposals are on the table.

One, the Free Trade Proposal, would eliminate such restrictions entirely. Two others, RACK+ and JN2+, would increase the limits to 15%.

The RACK+ proposal is the closest to the status quo in terms of barring vertical integration, while JN2+ contains explicit exceptions for .brand TLDs and smaller community registries.

Given the lack of consensus, it’s quite feasible that the ICANN board may decide to cherry pick from two or more proposals, or come up with something entirely novel. We’ll have to wait and see.

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