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Amazon sold rights to .box gTLD for $3 million

Kevin Murphy, October 27, 2020, Domain Registries

Amazon relinquished its rights to the .box gTLD five years ago for $3 million, according to court documents seen by DI.

Amazon was one of two applicants for .box, the other being a company called NS1 (that’s the numeral 1; this has nothing to do with Network Solutions).

According to a complaint filed a couple of years ago that I came across today, Amazon agreed to withdraw its application, giving its rival an unobstructed shot at the gTLD, for $3 million.

It was a private settlement of the contention set and the payout was not publicly revealed at the time.

A $3 million deal puts .box in the same ballpark as public auctions such as MMX’s .vip and Johnson & Johnson’s (now XYZ.com’s) .baby.

While the deal is years old, I thought the data point was worth publishing.

NS1’s application suggests that its business plan was to offer registrants cloud storage services, along the lines of DropBox.

But the ICANN contract was sold to Intercap, which also runs .inc and .dealer, earlier this year. The plan now appears to be to operate it as an open niche gTLD, but no launch dates have been announced.

It’s not known how much the gTLD sold for second time around.

These eight companies account for more than half of ICANN’s revenue

Kevin Murphy, October 19, 2020, Domain Policy

While 3,207 companies contributed to ICANN’s $141 million of revenue in its last fiscal year, just eight of them were responsible for more than half of it, according to figures just released by ICANN.

The first two entries on the list will come as no surprise to anyone — they’re .com money-mill Verisign and runaway registrar market-leader GoDaddy, together accounting for more than $56 million of revenue.

Registries and registrars pay ICANN a mixture of fixed fees and transaction fees, so the greater the number of adds, renews and transfers, the more money gets funneled into ICANN’s coffers.

It’s perhaps interesting that this top-contributors list sees a few companies that are paying far more in fixed, per-gTLD fees than they are in transaction fees.

Binky Moon, the vehicle that holds 197 of Donuts’ 242 gTLD contracts, is the third-largest contributor at $5.2 million. But $4.9 million of that comes from the annual $25,000 fixed registry fee.

Only 14 of Binky’s gTLDs pass the 50,000-name threshold where transaction fees kick in.

It’s pretty much the same story at Google Registry, formally known as Charleston Road Registry.

Google has 46 gTLDs, so is paying about $1.1 million a year in fixed fees, but only three of them have enough regs (combined, about one million names) to pass the transaction fees threshold. Google’s total funding was almost $1.4 million.

Not quite on the list is Amazon, which has 55 mostly unlaunched gTLDs and almost zero registrations. It paid ICANN $1.3 million last year, just to sit on its portfolio of dormant strings.

The second and third-largest registrars, Namecheap and Tucows respectively, each paid about $1.7 million last year.

The only essentially single-TLD company on the list is Public Interest Registry, which runs .org. Despite having 10 million domains under management, it paid ICANN less than half of Binky’s total last year.

The anomaly, which may be temporary, is ShortDot, the company that runs .icu, .cyou and .bond. It paid ICANN $1.6 million, which would have been almost all transaction fees for .icu, which peaked at about 6.5 million names earlier this year.

Here’s the list:

VeriSign, Inc.$45,565,544
GoDaddy.com, LLC$10,678,376
Binky Moon, LLC$5,231,898
Public Interest Registry$2,515,416
NameCheap, Inc.$1,755,932
Tucows Domains Inc.$1,747,648
ShortDot SA$1,643,103
Charleston Road Registry Inc.$1,385,356

Combined, the total is over $70.5 million.

The full spreadsheet of all 3,000+ contributors can be found over here.

Amazon waves off demand for more government blocks

Kevin Murphy, August 31, 2020, Domain Policy

Amazon seems to have brushed off South American government demands for more reserved domains in the controversial .amazon gTLD.

VP of public policy Brian Huseman has written to Amazon Cooperation Treaty Organization secretary general Alexandra Moreira to indicate that Amazon is pretty much sticking to its guns when it comes to .amazon policy.

Moreira had written to Huseman a few weeks ago to complain that the Public Interest Commitments included in Amazon’s registry contract with ICANN do not go far enough to protect terms culturally sensitive to the Amazon region.

She wanted more protection for the “names of cities, villages, mountains, rivers, animals, plants, food and other expressions of the Amazon biome, biodiversity, folklore and culture”.

ACTO also has beef with an apparently unilateral “memorandum of understanding” (page 8 of this PDF) Amazon says it has committed to.

That MoU would see the creation of a Steering Committee, comprising three Amazon representatives and nine from ACTO and each of its eight member states, which would guide the creation and maintenance of .amazon block-lists.

ACTO is worried that the PICs make no mention of either the committee or the MoU, and that Huseman is the only signatory to the MoU, which it says makes the whole thing non-binding.

Moreira’s August 14 letter asked for Amazon and ACTO to “mutually agree on a document”, and for the PICs to be amended to incorporate the MoU, making it binding and enforceable. She also asked for potentially thousands of additional protected terms.

Huseman replied August 28, in a letter seen by DI, to say that Amazon is “committed to safeguard the people, culture, and heritage of the Amazonia region” and that the PICs and MoU “have the full backing and commitment” of the company.

He added:

We are disappointed that we have not yet received the names and contact information of those within ACTO who might serve on the Steering Committee contemplated in the MOU because their knowledge and help could be very beneficial as we move forward to implement the PICs.

The letter does not address ACTO’s demand for a binding bilateral agreement, nor the request for additional blocks.

ICANN itself is no longer a party to these negotiations, having washed its hands of the sorry business last month.

Countries ask Amazon for thousands more domain blocks

Kevin Murphy, August 19, 2020, Domain Registries

The eight South American nations of the Amazon region are demanding Amazon block more domain names in the recently delegated .amazon gTLD.

Amazon Cooperation Treaty Organization secretary general Alexandra Moreira has written to Amazon VP of public policy Brian Huseman to complain that Amazon’s current set of “cultural” safeguards do not go far enough.

The August 14 letter, which was forwarded to DI, seems to mark a new phase of bilateral talks, after ICANN washed its hands of its reluctant role of third-party facilitator last month.

Currently, .amazon is governed by a set of Public Interest Commitments in its registry contract designed to protect the “Culture and Heritage specific to the Amazonia region”.

ACTO, as well as disagreeing with the use of the term “Amazonia”, has a narrow interpretation of the PICs that Moreira says is “insufficient to ensure respect for the historic and cultural heritage of the Amazon region”.

Under ACTO’s reading, Amazon is only obliged to block a handful of domains from use, namely the words “OTCA”, “culture”, “heritage”, “forest”, “river”, “rainforest”, the names of indigenous peoples and national symbols.

Moreira writes:

That would leave out a vast number of terms that can still cause confusion or mislead the public about matters specific to the Amazon region, such as the names of cities, villages, mountains, rivers, animals, plants, food and other expressions of the Amazon biome, biodiversity, folklore and culture.

ACTO wants the list of protected domains to be expanded to include these additional categories, and for Amazon and ACTO to sign a binding agreement to that effect.

Given that the Amazon forest is home to literally tens of thousands of distinct species and Brazil alone has over 5,500 municipalities, this could translate to a hell of a long list.

I should probably note that the .amazon PICs also offer ACTO the chance to block 1,500 strings of its own choosing, so ACTO’s narrow interpretation may not tell the whole story.

ICANN washes its hands of Amazon controversy

Kevin Murphy, July 22, 2020, Domain Policy

ICANN has declined to get involved in the seemingly endless spat between Amazon and the governments representing the Amazonia region of South American.

CEO Göran Marby has written to the head of the Amazon Cooperation Treaty Organization to say that if ACTO still has beef with Amazon after the recent delegation of .amazon, it needs to take it up with Amazon.

ACTO failed to stop ICANN from awarding Amazon its dot-brand gTLD after eight years of controversy, with ICANN usually acting as a mediator in attempts to resolve ACTO’s issues.

But Marby yesterday told Alexandra Moreira: “”With the application process concluded and the Registry Agreement in force, ICANN no longer can serve in a role of facilitating negotiation”.

She’d asked ICANN back in May, shortly before .amazon and its Japanese and Chinese translations hit the root, to bring Amazon back to the table for more talks aimed at getting ACTO more policy power over the gTLDs.

As it stands today, Amazon has some Public Interest Commitments that give ACTO’s eight members the right to block any domains they feel have cultural significance to the region.

Marby told Moreira (pdf) that it’s now up to ACTO to work with Amazon to figure out how that’s going to work in practice, but that ICANN’s not going to get involved.

Amazon finally gets its dot-brands despite last-minute government plea

Amazon’s three long-sought dot-brand gTLDs were added to the DNS root last night, despite an eleventh-hour attempt by South American governments to drag the company back to the negotiating table.

.amazon, along with the Japanese and Chinese translations — .アマゾン (.xn--cckwcxetd) and .亚马逊 (.xn--jlq480n2rg) — and its NIC sites have already gone live.

Visiting nic.amazon today will present you with a brief corporate blurb and a link to Amazon’s saccharine social-responsibility blog. As a dot-brand, only Amazon will be allowed to use .amazon domains.

The delegations come despite a last-minute plea to ICANN by the eight-government Amazon Cooperation Treaty Organization, which unsuccessfully tried to insert itself into the role of “joint manager” of the gTLDs.

ACTO believes its historical cultural right to the string outweighs the e-commerce giant’s trademark, and that its should have a more or less equal role in the gTLD’s management.

This position was untenable to Amazon, which countered with a collection of safeguards protecting culturally sensitive strings and various other baubles.

Talks fell through last year and ICANN approved the gTLDs over ACTO’s objections.

ACTO’s secretary-general, Alexandra Moreira, wrote to ICANN (pdf) May 21 to take one last stab at getting Amazon back in talks, telling CEO Göran Marby:

the name “Amazon” pertains to a geographical region constituting an integral part of the heritage of its countries. Therefore, we Amazonians have the right to participate in the governance of the “.amazon” TLD.

Our side is ready to resume negotiations on the TLD’s governance with the Amazon Corporation., from the point where their side interrupted it, with a view to arriving at a satisfactory agreement.

Her letter came in response to an earlier Marby missive (pdf) that extensively set out ICANN’s case that talks fell apart due to ACTO repeatedly postponing and cancelling scheduled meetings.

Despite the fact that Amazon’s basically got what it wanted, seven years after filing its gTLD applications, ACTO’s members didn’t get nothing.

The contracts Amazon signed with ICANN back in December have Public Interest Commitments in them that allow the governments to reserve up to 1,500 culturally sensitive strings from registration, as well as giving each nation its own .amazon domain.

Amazon governments vow revenge for “illegal and unjust” ICANN decision on .amazon

Kevin Murphy, January 17, 2020, Domain Policy

The eight nations of the Amazon Cooperation Treaty Organization are unhappy that ICANN is giving .amazon to Amazon the retailer and have vowed to spread the word that ICANN has acted “illegally”.

ACTO secretary general Alexandra Moreira has written (pdf) to ICANN CEO Göran Marby to say: “We consider this decision an illegal and unjust expropriation of our culture, tradition, history and image before the world.”

She said that ACTO is now “committed to disseminating news of this situation to all relevant groups”, adding:

the international community should be aware of the very real consequences or ramifications (be it economic, environmental, cultural or related to questions of sovereignty) of granting exclusive access to the domain “.Amazon” to a single company.

The delegation of .amazon to Amazon the company, “jeopardizes the continued well-being of the societies that live there”, she wrote, with no elaboration.

Amazon was last month told it could have the gTLD after a years-long battle with ACTO and the ICANN Governmental Advisory Committee, which had advised ICANN by consensus to reject the .amazon application.

That consensus broke last year when the US government basically said enough was enough and refused to continue back the eight South American governments’ plight.

Under the terms of Amazon’s contract, it has to protect hundreds of culturally sensitive second-level domains of ACTO’s choosing, and to give each of its members a single domain that they can use to promote their portion of the Amazonian region.

ACTO had wanted more, basically demanding joint ownership of .amazon, which Amazon refused.

It remains to be seen whether ACTO’s reaction will be limited to harsh language, or whether its members will actively try to disrupt ICANN activities. The next GAC-ICANN face-to-face, set for Cancun in March, could be interesting viewing.

Former NTIA chief Redl now working for Amazon

Kevin Murphy, November 6, 2019, Domain Policy

David Redl, the former head of the US National Telecommunications and Information Administration has joined Amazon as an internet governance advisor, I’ve learned.

I don’t know whether he’s taken a full-time job or is a contractor, but he’s been spotted palling around with Amazon folk at ICANN 66 in Montreal and knowledgeable sources tell me he’s definitely on the payroll.

Redl was assistant secretary at the NTIA until May, when he was reportedly asked to resign over a wireless spectrum issue unrelated to the domain names after just 18 months on the job.

His private sector career prior to NTIA was in the wireless space. I don’t believe he’s ever been employed in the domain industry before.

NTIA is of course the US agency responsible for participating in all matters ICANN, including the ongoing fight over Amazon’s application for the .amazon brand gTLD.

The proposed dot-brand has been in limbo for many years due to the objections of the eight nations of the Amazon Cooperation Treaty Organization, which claims cultural rights to the string.

ACTO nations on ICANN’s Governmental Advisory Committee want ICANN to force Amazon back to the negotiating table, to give them more power over the TLD after it launches.

But the NTIA rep on the GAC indicated at the weekend that the US would block any GAC calls for .amazon to be delayed any longer.

As I type these words, the GAC is debating precisely what it should say to ICANN regarding .amazon in its Montreal communique, using competing draft texts submitted by the US and European Commission, and it’s not looking great for ACTO.

As I blogged earlier in the week, another NTIA official, former GAC rep Ashley Heineman, has accepted a job at GoDaddy.

UPDATE: As a commenter points out, Redl last year criticized the revolving door between ICANN and the domain name industry, shortly after Akram Atallah joined Donuts.

America has Amazon’s back in gTLD fight at ICANN 66

Kevin Murphy, November 3, 2019, Domain Policy

The United States looks set to stand in the way of government attempts to further delay Amazon’s application for .amazon.

The US Governmental Advisory Committee representative, Vernita Harris, said today that the US “does not support further GAC advice on the .amazon issue” and that ICANN is well within its rights to move forward with Amazon’s controversial gTLD applications.

She spoke after a lengthy intervention from Brazilian rep Ambassador Achilles Zaluar Neto, who said South American nations view the contested string as their “birthright” and said ICANN is allowing Amazon “to run roughshod over the concerns and the cultural heritage of eight nations and tens of millions of people”.

It was the opening exchange in would could prove to be a fractious war of words at ICANN 66 in Montreal, which formally opens tomorrow.

The .amazon applications have been controversial because the eight countries in the Amazon Cooperation Treaty Organization believe their unwritten cultural rights to the word outweigh Amazon’s trademark rights.

Forced to the negotiating table by ICANN last year, the two sides each posed their own sets of ideas about how the gTLD could be managed in such a way as to protect culturally sensitive terms at the second-level, and taking ACTO’s views into account.

But an ICANN-imposed deadline for talks to conclude in April was missed, largely as a result of the ongoing Venezuela crisis, which caused friction between the ACTO governments.

But today, Brazil said that ACTO is ready and willing to get back to the negotiating table asked that ICANN reopen these talks with an impartial mediator at the helm.

As things stand, Amazon is poised to get .amazon approved with a bunch of Public Interest Commitments in its registry contract that were written by Amazon without ACTO’s input.

Neto said that he believed a “win-win” deal could be found, which “would provide a positive impetus for internet governance instead of discrediting it”. He threatened to raise the issue at the Internet Governance Forum next month.

ICANN’s failure to reopen talks “would set a bad precedent and reflect badly on the current state of internet governance, including its ability to establish a balance between private interests and public policy concerns”, he said

But the US rallied to Amazon’s defense. Harris said:

The United States does not support further GAC advice on the .amazon issue. Any further questions from the GAC to the Board on this matter we believe is unwarranted… We are unaware of any international consensus that recognizes inherent governmental rights and geographic names. Discussions regarding protections of geographic names is the responsibility of other forums and therefore should be discussed and those relevant and appropriate forums. Contrary to statements made by others, it is the position of the United States that the Board’s various decisions authorizing ICANN to move forward with processing the.application are consistent with all relevant GAC advice. The United States therefore does not support further intervention that effectively works to prevent or delay the delegation of .amazon and we believe we are not supportive and we do not believe that it’s required.

This is a bit of a reversal from the US position in 2013.

Back then, the GAC wanted to issue consensus advice that ICANN should reject .amazon, but the US, protecting one of its largest companies, stood in the way of full consensus until, in the wake of the Snowden revelations, the US decided instead to abstain, apparently to appease an increasingly angry Brazil.

It was that decision that opened the door to the six more years of legal wrangling and delay that .amazon has been subject to.

With the US statement today, it seems that the GAC will be unlikely to be able to issue strong, full-consensus advice that will delay .amazon further, when it drafts its Montreal communique later in the week.

The only other GAC member speaking today to support the US position was Israel, whose rep said “since it is an ongoing issue for seven years, we don’t believe that there is a need for further delay”.

Several government reps — from China, Switzerland, Portugal, Belgium and the European Commission — spoke in favor of Brazil’s view that ICANN should allow ACTO and Amazon back to the negotiating table.

The GAC is almost certain to say something about .amazon in its communique, due to drop Wednesday, but the ICANN board of directors does not currently have an Amazon-related item on its Montreal agenda.

UPDATE: The originally published version of this story incorrectly identified the US GAC representative as Ashley Heineman, who is listed on the GAC’s web site as the US representative. In fact, the speaker was Vernita Harris, acting associate administrator at the US National Telecommunications and Information Administration. Had I been watching the meeting, rather that just listening to it, this would have been readily apparent to me. My apologies to Ms Heineman and Ms Harris for the error.

Another victory for Amazon as ICANN rejects Colombian appeal

Kevin Murphy, September 9, 2019, Domain Registries

Amazon’s application for .amazon has moved another step closer to reality, after ICANN yesterday voted to reject an appeal from the Colombian government.

The ICANN board of directors voted unanimously, with two conflict-related abstentions, to adopt the recommendation of its Board Accountability Mechanisms Committee, which apparently states that ICANN did nothing wrong when it decided back in May to move .amazon towards delegation.

Neither the board resolution nor the BAMC recommendation has been published yet, but the audio recording of the board’s brief vote on Colombia’s Request for Reconsideration yesterday can be found here.

As you will recall, Colombia and the seven other governmental members of the Amazon Cooperation Treaty Organization have been trying to stymie Amazon’s application for .amazon on what you might call cultural appropriation grounds.

ACTO governments think they have the better right to the string, and they’ve been trying to get veto power over .amazon’s registry policies, something Amazon has been strongly resisting.

Amazon has instead offered a set of contractual Public Interest Commitments, such as giving ACTO the ability to block culturally sensitive strings, in the hope of calming the governments’ concerns.

These PICs, along with Amazon’s request for Spec 13 dot-brand status, will likely be published for 30 days of public comment this week, Global Domains Division head Cyrus Namazi told the board.

Expect fireworks.

After comments are closed, ICANN will then make any tweaks to the PICs that are necessary, before moving forward to contract-signing with Amazon, Namazi .said.