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Network Solutions under attack again

Kevin Murphy, April 18, 2010, Domain Registrars

Network Solutions’ hosting operation is under attack for the second time in a week, and this time it’s definitely not a WordPress problem.

The company has acknowledged that it has “received reports that Network Solutions customers are seeing malicious code added to their websites”, but has not yet released further details.

Sucuri.net, which was intimately involved in the news of the hack against NSI’s WordPress installations last week, blogged that this time the attacks appear to have compromised not only WordPress, but also Joomla-based and plain HTML sites.

Last week’s attacks were eventually blamed on insecure file permissions, which enabled shared-server hosting customers to look at each other’s WordPress database passwords.

But today NSI, one of the top-five domain name registrars, said: “It may not be accurate to categorize this as a single issue such as ‘file permissions’.”

Sucuri said that malicious JavaScript is being injected into the sites, creating an IFrame that sends visitors to drive-by download sites.

It’s a developing story, and not all the facts are out yet.

But it’s clear that NSI has a public relations problem on its hands. Some customers are already using Twitter to declare that they will switch hosts as a result.

And if it’s true, as Sucuri reports, that Google is already blocking some of the affected sites, who can blame them?

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$10 billion disk-maker wins domain name

Kevin Murphy, April 16, 2010, Domain Policy

Seagate Technology, the world’s biggest hard disk drive maker, has won seagatetechnology.com – the exact match of its company name – at UDRP.

The squatter, identified as Standard Bearer Enterprises, registered the name in 2004. That’s six years of squeezing click revenue from an exact-match name of a multi-billion dollar firm.

Standard Bearer has a track record of losing famous names at UDRP, and was named in a cybersquatting lawsuit filed by Andre Agassi and Steffi Graff last year.

Seagate is a huge company, reporting revenue approaching $10 billion last year. It has been using the Seagate Technology trademark since 1983.

It’s not exactly naive about domain names, either.

Its primary domain, seagate.com, was first registered in 1992 – the Neolithic by internet standards. It beggars belief that its taken 18 years to secure its long-form company name.

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Demand Media in rumored IPO

Kevin Murphy, April 16, 2010, Domain Registrars

Demand Media, which owns number-two domain registrar eNom, could file to go public this summer, the Financial Times has reported.

Widely thought of as a “content mill”, Demand is in the business of mining search and domain data and pumping out content which it can sell ads against.

The FT, using anonymous sources, reports that an IPO, which could happen by November, would value the firm at $1.5 billion. Revenue is estimated to be around $250 million a year.

While selling domain names does not appear to be Demand’s core business, other domain name registrars have a rocky record when it comes to public listings.

Register.com, which used its early-mover advantage to IPO at the tail end of the dot-com boom, ended up going private after low-cost registrars like Go Daddy started eating its lunch.

Go Daddy itself gave the world a glimpse at its finances when it filed its S-1 back in 2006, but CEO Bob Parsons yanked the IPO at the eleventh hour, citing poor market conditions and his inability to keep his mouth shut during the traditional pre-offering Quiet Period.

Parsons said at the time that it’s hard to show a profit under GAAP as a growing registrar, due to the way registrations are accounted for.

Tucows, meanwhile, has managed to tick along quietly with a listing on the small-cap markets for years.

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Porn group starts anti-XXX campaign

Kevin Murphy, April 15, 2010, Domain Registries

Now that the Christians appear to have quietened down, the adult entertainment industry has unleashed its own letter-writing campaign aimed at crippling ICM Registry’s bid for the .xxx TLD.

The Free Speech Coalition has started urging its members to lobby ICANN with emails demanding that the .xxx proposal is rejected.

The front page of its web site started carrying the call to action earlier today, already resulting in over a dozen form complaints.

The anti-porn complaints that have flooded ICANN’s forums for the last week focussed largely on the alleged harmful effects of porn, and will probably be politely ignored.

But unlike the Christians, the FSC has read the background documents – which request comments on how ICANN should process ICM’s application – and its letters are therefore on-topic

They urge ICANN to “Adopt Option #3” by agreeing with the dissenting minority view of the Independent Review Panel that recently ruled ICANN was unfair to reject ICM back in 2007.

“Regardless of the option chosen, I ask that ICANN continue to consider the widespread opposition of the sponsored community in any further decisions concerning a .XXX sTLD,” the letters add.

The campaign is not unexpected, but it won’t make ICANN’s board of directors’ decision any easier. After all, .xxx is ostensibly a “sponsored” TLD, and a significant voice within its potential customer base does not appear to want it.

There may also be other power games at play.

ICM president Stuart Lawley claimed during his IRP cross-examination in September that the FSC had offered to support ICM in 2003, but only if it could control the sponsoring organization and collect the associated $10 per domain per year.

The ICANN comment period runs until May 10. The FSC’s own comments, from boss Diane Duke, are here.

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TLDH sells off domain portfolio, waits for new TLDs

Kevin Murphy, April 15, 2010, Domain Registries

Top Level Domain Holdings has reported blah revenue for its fiscal 2009, as it reorganized itself in preparation for ICANN’s forthcoming new gTLD round.

The company, which owns registry services firm Minds + Machines and has interests in dotNYC and DotEco, is listed on London’s low-cap AIM market.

It today reported revenue for the 12 months to October 31, 2009 of £315,000 ($487,000), up from £232,000 ($358,000) a year earlier, with an operating loss of £1.4 million, ($2.2 million) down from £1.5 million ($2.3 million).

TLDH also revealed that it sold off its entire parked domain name portfolio for $250,000 last November, after the end of its financial year, after it found parking revenue on the decline:

The Company’s domain name portfolio comprising mainly German and other European parked domain names that receive direct navigation and search traffic which can be monetized through search links to generate click-through advertising revenues generated a lower revenue in the period and were subsequently sold following the period end for US$250,000 in cash.

TLDH recorded an impairment charge of £154,000 ($238,000) for this transaction, suggesting the company sold its portfolio for approximately half of its previously reported paper value.

The firm says its strategy is “to build a portfolio of gTLD applicants and infrastructure technologies”, and believes ICANN’s recent Nairobi meeting decisions continued “a trend of increasing the barriers to application for non-experts”.

TLDH still looks like it has more than enough cash on hand to see it through to when ICANN begins officially accepting new TLD applications, barring further delays, with £4.3 million ($6.6 million) in the bank at the end of October.

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