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Register.com settles Baidu domain hijacking lawsuit

Kevin Murphy, November 25, 2010, Domain Registrars

Register.com has apologised to Chinese portal company Baidu for allowing its domain, baidu.com, to be hijacked by the Iranian Cyber Army hacker group.

The two companies have announced that the lawsuit, which alleged gross negligence among other things, has now been settled. Terms were not disclosed.

If Baidu’s complaint was to be believed, the hackers took over baidu.com with a trivial social engineering attack that relied upon a Register.com tech support employee being asleep at the wheel.

The company is one of China’s largest internet firms, employing over 6,000 people and turning over well over $600 million a year. But for the period of the hijack, visitors to baidu.com instead just saw the hackers’ defacement message instead.

The registrar had argued in court that its terms and conditions released it from liability, but the judge didn’t buy it.

Register.com, which was acquired by Web.com for $135 million in June, said yesterday:

After an internal investigation, we found that the breach occurred because Register’s security protocols had been compromised. We have worked with United States law enforcement officials and Baidu to address the issue. We sincerely apologize to Baidu for the disruption that occurred to its services as a result of this incident.

Baidu said it accepted the apology. And the check, I imagine.

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Minds + Machines to raise $4.7m for new TLDs

Kevin Murphy, November 25, 2010, Domain Registries

Top Level Domain Holdings plans to raise £3 million ($4.7 million) in a stock sale to help finance the TLD aspirations of its main business, Minds + Machines.

The funds would almost double the cash reserves TLDH has on tap, which currently amount to $5.5 million, according to StockMarketWire.com.

Recently appointed CEO Antony Van Couvering said in a statement that ICANN’s recent decision to allow registries and registrars to vertically integrate had a bearing on the decision to raise funds:

Having reviewed ICANN’s Final Proposed Applicant Guidebook, and in view of the ICANN Board’s historic decision to do away with cross-ownership restrictions between registries and registrars, we believe that the timing is right for additional investment by TLDH. ICANN’s registry-registrar decision means that additional gTLD business models are now viable, and we have already seen a marked increase in interest from prospective new clients. We intend to make sure we have the resources to take advantage of this opportunity.

M+M is already associated with new TLD applications including .gay and .eco, both of which are expected to be contested by other applicants.

TLDH is listed on London’s small-cap Alternative Investment Market. The announcement of the placement can be found here.

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Will a Russian domain sell for more than Sex.com?

Kevin Murphy, November 25, 2010, Domain Sales

The scandal-hit Russian domain name market may yet produce some of the most expensive domain name sales of all time. Premium .рф generics are already attracting eight-figure bids.

Bids of $10 million have apparently been placed on at least two domains, квартиры.рф and бетон.рф (apartments.rf and concrete.rf), in the controversial quasi-landrush auction managed by RU-Center, the largest Russian registrar.

IDNblog.com is reporting the apartments.rf asking price, and a reader was kind enough to send me a screenshot of the concrete.rf auction.

If these bids are for real, and these auctions were to close, they would immediately occupy the number two and three slots on the league table of all-time biggest-ticket domain sales

Before sex.com sold for $13 million, DNJournal’s top twenty list had fund.com in the top spot, at $9,999,950, followed by porn.com at $9,500,000 and diamond.com at $7,500,000.

The RU-Center auctions may not close, however.

As I reported yesterday, the registrar and five others are being investigated on antitrust grounds by Russian competition authorities, after allegedly registering tens of thousands of domains to themselves.

The auctions are currently frozen and the .рф registry, Coordination Center for ccTLD, has made noises about applying “sanctions” to the registrars that could include de-accreditation.

RU-Center, which confusingly does business at nic.ru, has defended its position in at least two articles here and here (in Russian, naturally).

As far as I can tell, none of these auctions will close until the registrar and the registry resolve their differences and/or the Russian government probe concludes.

However, it’s pretty obvious that the demand for Cyrillic generic IDNs is enormous in Russia, and could easily challenge .com on the big-sale league tables.

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Three registrars face the ICANN chop

Kevin Murphy, November 24, 2010, Domain Registrars

ICANN has told three registrars they are in breach of their registrar contracts and will lose their accreditation next month unless they rectify the problems.

These registrars, all of which appear to have negligible numbers of gTLD domains under management, are affected:

Mister Name will be shut down if it does not pay its ICANN fees and escrow its Whois data.

Open System Ltd is accused of not having a functioning Whois service.

Best Bulk Domains Inc also doesn’t have a functioning Whois, ICANN said. It also has not been paying its dues and hasn’t maintained accurate contact information for itself.

All three have dates in mid-December to clean up their acts or lose their right to sell gTLD domains.

You can find ICANN’s compliance letters here.

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Gaming scandal hits Russian domain launch

Kevin Murphy, November 24, 2010, Domain Registries

The launch of Russia’s .РФ country-code top-level domain, widely lauded as a runaway success story, has been tainted by a registrar gaming scandal.

Government antitrust authorities are investigating six registrars over claims that they registered tens of thousands of premium domains in order to auction them to end users, according to local reports.

The registrars in question are thought to have colluded, using each others’ services to register the names, hence the competition probe.

The largest registrar, Regional Network Information Center, aka RU-Center, is alleged to have registered 65,000 domains during the first days of the .РФ launch in order to profit from auctions.

These domains have been frozen pending resolution of the dispute. The registry, Coordination Center for TLD, is thinking about cancelling the registrars’ accreditations.

RU-Center is quoted as saying, laughably, that the premium domains were registered in order to prevent cybersquatting.

In a statement, the registry questions the public good of registering проститутки.рф, which apparently means “prostitute.rf” and is currently asking $190,000 at auction.

The investigation certainly takes the gloss off the launch, which has so far racked up well over 500,000 registered domains and was put forth as case study for internationalized domain names.

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