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Possible new TLDs timeline revealed

Kevin Murphy, December 16, 2010, Domain Registries

ICANN’s decision to delay the approval of its new top-level domains Applicant Guidebook last week in Cartagena left one big question hanging:

When will the program open for applications?

ICANN had pencilled in May 30 for the launch, but the new delay appeared to make that impossible. In the absence of an announcement from ICANN, nobody really knows what the current timetable is.

A few possible answers have now emerged with the publication this week of ICANN staff briefing documents (pdf) used by the board to make their original decision to target May 2011.

An October 28 document entitled “New gTLD Launch Scenarios”, penned by ICANN’s Kurt Pritz and Carole Cornell, explores the board’s options for approving a launch timeline.

It notes that applications cannot be solicited until ICANN has finished its mandatory four-month outreach/marketing campaign, which in turn can’t kick off until the AGB has been approved.

I’ll let the rest speak for itself:

If the Board were to approve the Guidebook after the January/February meeting, the announcement and communications campaign launch would be made shortly thereafter. The first applications could be received as early as (but not earlier than) 1 July 2011.

If the Board elects that a full comment analysis and sixth version of the Guidebook be written, with approval at the Silicon Valley meeting, the approval would be followed by an April announcement and communications campaign launch. First applications could be received as early as (but no earlier than) August 2011.

And here’s a lovely graphic illustrating the options (click to enlarge):

New gTLD Launch Scenarios

Given that we now know that the ICANN board intends to meet with the Governmental Advisory Committee to address its outstanding issues in February, the final scenario – with a San Francisco approval and August launch – now seems more likely.

Most of the rest of the briefing document is heavily redacted.

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Some countries not paying ICANN for their IDNs

Kevin Murphy, December 16, 2010, Domain Registries

ICANN may have to fund some of its IDN ccTLD Fast Track program out of its own pocket, due to at least one country not paying its full fees, judging from information released this week.

ICANN had invoiced applicants for a total of $572,000, but only $106,000 had been received, according to briefing documents (pdf, page 114) presented at the ICANN board’s October 28 meeting.

The organization invoices registries $26,000 for each TLD string it evaluates, but the fees are not mandatory, for political reasons. As of October, it had presumably billed for 22 strings.

At least one country appears to have had its applications processed at a knock-down rate.

Sri Lanka, which was billed $52,000 for two strings, only paid $2,000, and the remaining $50,000 appears to have been written off as “uncollectable”.

Russia, Egypt, South Korea and Tunisia had paid their fees in full.

While the remaining 17 evaluated ccTLDs may not have paid up by October, that’s not to say they have not paid since or will not pay in future.

ICANN also plans to bill IDN ccTLDs 1-3% of annual revenue as a “contribution”, which also won’t be mandatory, but no registry has been live long enough to receive that bill yet.

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Go Daddy-Google group targets bogus pill merchants

Kevin Murphy, December 15, 2010, Domain Policy

The newly forming industry body tasked with taking down web sites selling fake pharmaceuticals plans to meet next month to develop its mission statement and charter, according to Go Daddy general counsel Christine Jones.

Jones said in an interview tonight that the group, which Go Daddy is jointly “spearheading” with Google, is likely to meet in Phoenix, Arizona in the third week of January.

As I blogged earlier today, the organization was formed following a series of meetings at the White House, which has a policy of reducing counterfeit drugs sales online.

Domain name companies including Go Daddy, eNom, Neustar and Network Solutions are joined in the currently nameless non-profit by the three major search engines and all the major payment processors.

Jones confirmed that redirecting a domain name is an action a participating registrar could take if it finds an infringing site. Go Daddy and others already do this in cases of child porn, for example.

But the group will also share information about fake pharma sites so Google, for example, would also be able to block them from search and Visa could stop payments being processed, Jones told me.

The White House meetings were organized by Victoria Espinel, the administration’s Intellectual Property Enforcement Coordinator (IPEC).

So, while the group has yet to formalize its policies, I wanted to know what the prevailing opinion is on how “illegal” a site will have to be before the group will try to take it down.

Taking down a site selling sugar pills or industrial acid as HIV treatments is one thing, killing a site selling genuine medications to people without prescriptions is another, and blocking a legit pharmacy that sells drugs to Americans with prescriptions more cheaply from across the Canadian border is yet another.

Jones said: “If a pharmacy is a licensed pharmacy and is abiding by whatever the state rules are wherever they’re located, that’s not our target.”

Apparently the new organization, which will be formed as a non-profit entity, may help the companies to avoid running afoul of ECPA, the US Electronic Communications Privacy Act.

Jones said that other companies participating in the White House meetings still have not decided whether to join the new group or not. End-of-year budgetary issues may be a factor here.

Domain registrars have come in for considerable flak over 2010 for allegedly not doing enough to counter fake pharma sites.

A Knujon report published in May, and others, eventually led to eNom in particular promising to crack down harder on rogue pharmacies.

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ICANN director slammed vertical integration

Kevin Murphy, December 15, 2010, Domain Registries

ICANN really shook up the domain name industry last month when it said it was dropping rules that prevent registrars and registries from owning each other.

But two of its directors voted against the decision and one, George Sadowsky, entered a lengthy dissenting opinion in which he said the benefits of so-called “vertical integration” are “largely illusory”.

Vertical integration would allow existing registrars to apply to run new top-level domains. It would enable companies to more easily apply for “.brand” or small niche TLDs.

This has been banned in previous registry contracts, due in part to the potential for abuse of registry data and anti-competitive behaviour by registrars.

Sadowsky delivered a four-point objection to the VI resolution, which was passed in early November, according to minutes published this week.

He said that introducing VI at the same time as the new TLD program would create unpredictable and irreversible consequences for the industry, and questioned ICANN’s ability to enforce compliance with data-sharing rules.

in spite of the measures to be taken to ensure “good conduct,” the resolution has the potential to commingle all of the data, public and private, regarding a registry in one place, providing the possibility of easy and invisible sharing of data within a merged or co-owned entity regardless of the scope of any agreement with ICANN.

Such sharing is likely to be undetectable given the close affiliations among the entities. Data now forbidden to be shared between registries and registrars will be shared. Both auditing and enforcement by ICANN are unlikely to be effective, all the more so as we move from 20+ to hundreds of new gTLDs.

Data sharing would give registrars greater insight into valuable domains, potentially facilitating registrant-unfriendly activities such as warehousing.

Those companies which opposed VI, including Afilias and Go Daddy, have previously said that the potential for registrar abuse, harming registrars, was too great.

Sadowsky said:

Assuming that each gTLD registry must continue to treat all registrars equally, the real benefits of vertical integration are largely illusory, but those that can be easily obtained by the officially forbidden sharing of data are real

The minutes also show that Mike Silber voted against the resolution, saying he “believes there will be very unpleasant, unintended consequences”.

Harald Alvestrand, Ram Mohan, Thomas Narten, Jonne Soininen and Bruce Tonkin had conflicts of interest and were not in the room for the debate. The two voting directors, Tonkin and Alvestrand, officially abstained from the vote.

The minutes also contain this mysterious entry:

Confidential Issue
Pursuant to Article V, Section 5.4 of the ICANN Bylaws, the Board of Directors, by unanimous vote, determimed that, to protect the interests of ICANN, the matter under discussion should not be included in the minutes until such time as the Board designated the item should be published.

Anybody with any ideas what this might be, please feel free to theorize in the comments.

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Go Daddy proposes fake pharma site shutdown body

Kevin Murphy, December 15, 2010, Domain Policy

A cross-industry body that will make it easier for web sites selling fake drugs to be shut down is forming in the US, led by Google and Go Daddy.

The idea for the currently nameless organization was announced yesterday following a series of meetings between the internet industry and White House officials.

The group will “start taking voluntary action against illegal Internet pharmacies” which will include stopping payment processing and shutting down web sites.

The domain name business is represented by the three biggest US registrars – Go Daddy, eNom and Network Solutions – as well as Neustar (.biz, .us, etc) on the registry side.

Surprisingly, VeriSign (.com) does not appear to be involved currently.

Other members include the major credit card companies – American Express, Visa and Mastercard – as well as PayPal and search engines Google, Microsoft and Yahoo.

According to a statement provided by Neustar:

GoDaddy and Google took the lead on proposing the formation of a private sector 501(c)(3) non-profit organization that would be dedicated to promoting information sharing, education, and more efficient law enforcement of rogue internet pharmacies.

It’s early days, so there are no specifics as yet as to how the organization will function, such as under what circumstances it will take down sites.

There’s no specific mention of domain names being turned off or seized, although reading between the lines that may be part of the plan.

There’s substantial debate in the US as to what kinds of pharmaceuticals sites constitute a risk to health and consumer protection.

While many sites do sell worthless or potentially harmful medications, others are overseas companies selling genuine pharma cheaply to Americans, who often pay a stiff premium for their drugs.

The organization will do more than just shut down sites, however.

It also proposes an expansion to white lists of genuine pharmacies such as the National Association of Boards of Pharmacies’ Verified Internet Pharmacy Practice Sites (VIPPS).

And it will promote consumer education about the “dangers” of shopping for drugs online, as well as sharing information to stop the genuine bad guys “forum shopping” for places to host their sites.

This is what the statement says about enforcement:

The organization’s members agree to share information with law enforcement about unlawful Internet pharmacies where appropriate, accept information about Internet pharmacies operating illegally, and take voluntary enforcement action (stop payment, shut down the site, etc.) where appropriate.

While taking down sites that are selling genuinely harmful pills is undoubtedly a Good Thing, I suspect it is unlikely to go down well in that sector of the internet community concerned with the US government’s increasing role in removing content from the internet.

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