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As Trump sworn in, CADNA returns to lobby for stronger cybersquatting laws

Kevin Murphy, January 23, 2017, Domain Policy

Remember the Coalition Against Domain Name Abuse? The lobby group that campaigned for stronger cybersquatting laws and against new gTLDs?

It’s back.

CADNA on Thursday used the imminent inauguration of new US president Donald Trump to announce that it’s back in the game, hoping a Republican-dominated government will be friendlier to its agenda.

It told its supporters on “the 2016 general elections outcomes for both the U.S. Congress and the White House present a unique and timely opportunity to push through legislation”.

It wants new federal laws modeled on 2010 Utah state legislation, the E-Commerce Integrity Act, which creates liability for non-registrant third-parties including domain name registrars.

The Utah law is closely modeled on the federal Anticybersquatting Consumer Protection Act of 1999, but has some crucial differences.

CADNA noted at the time the law was up for a vote that it:

expands the liability for cybersquatting activity to include the registrant’s authorized licensee, agent, affiliate, representative, domain name registrar, domain name registry, or other domain name registration authority that knowingly and actively assists a violation

That’s something ACPA does not allow for, and CADNA wants the federal law amended to include provisions such as this. It said:

The Coalition Against Domain Name Abuse (CADNA) is now mobilizing the global business community to promote and pass legislation that will greatly enhance the available protection mechanisms for online trademark protection and limit the appeal of cybersquatting.

The last time US cybersquatting laws came close to being amended was with the Anti-Phishing Consumer Protection Act of 2008, aka the Snowe Bill, which ultimately did not pass.

The Internet Commerce Association, which lobbies on behalf of domain investors, expressed concern with CADNA’s new efforts to revive its noughties lobbying tactics, telling members:

for now this is more of a CADNA recruiting effort than an active legislative natter. As you can see, CADNA announced a similar Federal effort in 2010, which went nowhere. Nonetheless, we should proceed on the assumption that CADNA will secure a sponsor and have such legislation introduced in the new Congress and that such legislation may well gain traction in the current political environment.

The ICA also expressed concern about the amount of statutory damages the Utah law permits compared to the ACPA.

While both Utah and ACPA allow damages of $1,000 to $100,000 per domain, the Utah law assumes the highest amount if a “pattern or practice” of cybersquatting can be demonstrated.

CADNA has been pretty quiet for the last few years.

Before the US elections last November, its most recent press release dated from October 2013.

The group is managed by the same people who run Fairwinds Partners, a new gTLD consultancy specializing in managing dot-brand gTLDs for some of the world’s biggest names.

Its gTLD clients include L’Oreal, Marriott and Walmart.

Fairwinds used its links to CADNA and its staunch opposition to the new gTLD program to pitch for these clients back in 2012.

FairWinds hard-sells defensive gTLD applications

Kevin Murphy, March 6, 2012, Domain Services

Talk about a U-turn.

FairWinds Partners, the company behind the Coalition Against Domain Name Abuse, has gone from using CADNA to oppose ICANN’s new gTLD program in its entirety to name-dropping the organization in sales pitches encouraging companies to defensively apply for “dozens” of new gTLDs.

According to an email pitch forwarded to DI by a reader today, the company is recommending potential clients apply for new gTLDs defensively, then drop out of the process after May 1 if it turns out their competitors are not aggressively pursuing new gTLDs.

The pitch appears to be tailored to the specific potential client – pimping keyword gTLDs relevant to its industry as well as dot-brands in general. Here are a few extracts (typos in original):

Many majors brands applying for at least one new gTLD – some more than a dozen. They don’t necessarily plan on using them straight away, but it is important for businesses to secure the option to leverage new gTLDs as most major businesses will.

FairWinds (through our non-profit advocacy group CADNA – the Coalition Again Domain Name Abuse) has actually been the strongest opponent of this program for years. That said, given the sheer number of businesses that are participating, it is something that brand owners can’t sit out on and businesses have decided to work with us as FairWinds is known to be the leading voice of the brand owner community on this topic.

So you know, many of our clients are exercising what we are calling the “behind the curtain” strategy. This involves applying for a new gTLD and if it turns out that your competitors don’t apply as aggressively as we think they will, you have the option to pull the application and receive a 70% refund on the application fee. This might be the right strategy for generic extensions like those listed above. That said, I highly recommend you apply for and follow through on .application as several brands in your space will most likely apply for their primary .BRANDS.

There’s nothing positive in the pitch – no praising the speculative SEO or branding/marketing benefits of new gTLDs, for example.

It’s a fully defensive, FUD-based sales call of the kind commonly served up by more established members of the domain name industry.

The fact that CADNA is mentioned – I’ve found that FairWinds is usually keen to draw a bright line between itself and the organization, even though they share management – makes this all the more remarkable.

For the record, I do feel slightly bad for singling out FairWinds here.

It’s not actually bad advice – the strategy it proposes is sound – and I’m certain the same and worse FUD tactics are being used today by other new gTLD consultants and registries.

But it’s interesting because as recently as May 2011 CADNA was calling for the new gTLD program to be scrapped, saying ICANN “has not managed demonstrate a need for new gTLDs, nor that the benefits will outweigh the costs, particularly for brand owners and consumers”.

At least its sales pitches are consistent with that view, I suppose.

FairWinds’ Singaporean conversion may not have been Damascene, but it was certainly opportunistic.

UPDATE: I’ve changed the headline to reflect that it’s FairWinds, not CADNA, that’s doing the selling. While I think the article makes that clear, not everybody reads beyond the headline.

CADNA calls for mandatory .xxx-style sunrises

Kevin Murphy, December 27, 2011, Domain Policy

The Coalition Against Domain Name Abuse has asked ICANN to make one-time trademark blocks, much like those offered by .xxx operator ICM Registry, mandatory in most new top-level domains.

In a letter to ICANN bosses (pdf) sent last week, CADNA president Josh Bourne wrote:

ICANN should consider including a requirement in the Applicant Guidebook that all new gTLD registries that choose to sell second-level domains to registrants adopt a low-cost, one-time block for trademark owners to protect their marks in perpetuity.

ICANN should require registries to give brand owners the option to buy low-cost blocks on their trademarks before any registration period (Sunrise or Landrush) opens. This can be offered at a lower cost than sunrise registrations have been priced at in the past – this precedent has been set with the blocks offered in .XXX, where the blocks are made in perpetuity for a single, nonrecurring fee.

The recommendation is one of several. CADNA also reckons ICANN needs to name the date for its second round of new gTLD applications, and that “.brand” applicants should get discounts for multiple gTLD applications.

The letter comes as opposition to the new gTLD program in the US becomes deafening and ICANN’s board of directors have reportedly scheduled an impromptu meeting next week to determine whether the January 12 launch is still a good idea.

CADNA is no longer opposed to the program itself. Fairwinds Partners, the company that runs the lobbyist, recently restyled itself as a new gTLD consultancy.

But there’s a virtually zero chance the letter will come to anything, unless ICANN were to decide to open up the Applicant Guidebook for public comments again.

I also doubt the call for a mandatory ICM-style “block” service would be well-received by anyone other than ICANN’s intellectual property constituency.

The problem with such systems is that trademarks do not grant exclusive rights to strings, despite what some organizations would like to think.

It’s quite possible for ABC the taxi company to live alongside ABC television in the trademark world. Is it a good idea to allow the TV station to perpetually block abc.taxi from registration?

Some would say yes. The Better Business Bureau and Meetup.com, to name two examples, both recently went before Congress to bemoan the fact that they could not block bbb.xxx and meetup.xxx – both of which have meaning in the adult entertainment context and were reserved as premium names – using ICM’s Sunrise B.

With that all said, there’s nothing stopping new gTLD applicants from voluntarily offering .xxx-style blocking services, or indeed any form of novel IP rights protection mechanisms.

Some applicants may have even looked at the recent .xxx sunrise with envious eyes – with something like 80,000 defensive registrations at about $160 a pop, ICM made over $12 million in revenue and profit well into seven figures.

CADNA asks for new gTLDs second round

Kevin Murphy, November 18, 2011, Domain Policy

The Coalition Against Domain Name Abuse, having spent quite a lot of time and effort opposing ICANN’s new top-level domains program, wants ICANN to name the date for a second round.

In a letter to president Rod Beckstrom today, which was inspired by discussions at the recent What’s At Stake conference, CADNA president Josh Bourne writes:

We ask that the ICANN Board request an Issues Report to formally initiate a policy development process to determine when the next round of new gTLD applications will occur, thereby affirming its commitment to opening a second round in a timely manner.

As I’ve noted previously, ICANN has not named the date for the second round so far because it’s promised the Governmental Advisory Committee that it will review the first round first.

But businesses from outside the domain name industry are feeling like they’re being pressured into making a decision whether to apply for a gTLD they don’t necessarily want, Bourne says.

By not disclosing when it will open future rounds of new gTLD applications, ICANN is creating a condition of scarcity that will inevitably result in a massive land rush, where entities will scramble to apply for new gTLDs for the sole purpose of hypothetically “future-proofing” their identities in the new domain name space, without any immediate intentions to use their new gTLDs for innovative means.

Disclosing when it will open a second application round will not only alleviate the anxiety that businesses are feeling, it will give ICANN the chance to quell the animosity that has developed toward it among the business community.

The whole letter is worth a read. No matter what you think of CADNA, it’s difficult to argue with Bourne’s points (though please do so in the comments if you disagree).

Scare sales tactics are already a key source of mainstream hatred for the domain name industry at the second level. Now would be a good time to prevent the same thing happening at the top level too.

It will look very bad for ICANN in a few years’ time if the root is cluttered with useless, unused gTLDs created just because companies felt pressured into defensive applications.

Staff changes at new gTLD consultancies

Kevin Murphy, November 16, 2011, Domain Services

There’s movement in the new top-level domains consultancy market this week, with new hires and departures at a couple of startups.

It’s been a case of one in, one out at Sedari, the registry management services company founded by Liz Williams this summer.

The company has hired Philip Sheppard, most recently director of public affairs for AIM, the European Brands Agency, as its new policy director.

Sheppard is an ICANN veteran from the IP/business side of the house, who has chaired multiple policy committees since becoming involved in 1999.

But Sedari has also lost another industry vet, Jothan Frakes, who’s decided to go freelance.

Elsewhere, FairWinds Partners, which shares management with the Coalition Against Domain Name Abuse, has also emerged publicly as a new gTLD consultancy.

The Washington DC-based company hope to use its track record of criticizing the new gTLD program to win the support of big brands skeptical about the ICANN process.

FairWinds said this week it’s taken on former ICANN director Michael Palage of Pharos Global, who has worked for both proponents and opponents of the program, apparently on a freelance basis.

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