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No .com price increases this year. Thanks, coronavirus!

Kevin Murphy, March 26, 2020, Domain Registries

Verisign won’t increase prices on .com or any of its other TLDs this year.

The promise comes as part of a package of coronavirus-related measures the company announced on its blog yesterday. Verisign said:

In order to support individuals and small businesses affected by this crisis, Verisign will freeze registry prices for all of our Top-Level Domains (TLDs), including .com and .net, through the end of 2020. In addition, we will soon deploy a program, available to all retail registrars, to provide support and assistance for domain name registrants whose domain names will be expiring in the coming months.

No additional details on the proposed registrant support program were made available.

The pricing news sounds good, especially for high-volume domain owners such as domainers and trademark owners, but it should be noted that in the case of .com it amounts to a mere two-month price freeze.

Under the terms of its current agreement with ICANN, it can’t raise prices at all. The controversial proposed amendments that recently attracted about 9,000 objections, would reinstate price-raising powers.

However, assuming ICANN approves the new contract, which seems likely, Verisign would only be able to up its fees in the final four years of its six-year deal. The first of those four years begins October 20 this year.

Conceivably, it could have announced a 7% price hike for .com on October 21, but the company has now said that it will not.

Verisign also said yesterday that it’s donating an “initial” $2 million to “first responders and medical personnel in the Northern Virginia area, the United Way’s COVID-19 relief efforts, and the Semper Fi & America’s Fund”.

It is also doubling the funding available to the scheme where it matches employees’ charitable donations, which could increase (and incentivize) giving to coronavirus-related causes.

Verisign shits on domainers, again

Kevin Murphy, February 17, 2020, Domain Registries

It’s probably no exaggeration to say that Verisign makes hundreds of millions of dollars a year from .com domain investors, and yet it’s been developing a habit in recent years of shitting on them whenever it serves its purpose.

The company’s submission to ICANN’s just-closed public comment period on the proposed new .com contract, which re-enables Verisign’s ability to increase its prices, is the latest such example.

In the letter, which is unsigned, Verisign accuses the Internet Commerce Association, as well as registrars Namecheap and Dynadot, of conducting a “deceptive” campaign to persuade .com registrants to submit comments opposing the deal.

It notes that ICA represents “speculators” — it never uses the term “investors” — as if this was some kind of closely guarded secret, and describes the practice of domaining in a way that implies that the practice is somehow “illegitimate”, like this:

More than any other group engaged in the ICANN multistakeholder process, these speculators are highly sensitive to even the smallest wholesale price changes because of the enormous portfolios of .com domain names they control.

Speculators sometimes sell these domain name registrations to other speculators, but often they pass these costs along when they sell the domain names to legitimate internet users who wish to use .com domain names to build websites. We believe this resale activity adds little value to the DNS.

It’s not wrong, but good grief! The chutzpah on this company is sometimes jaw-dropping.

It’s like a car manufacturer complaining that its billion-dollar range of off-road SUVs are mostly being used by obese city dwellers for the school run. Just take the billion dollars and stop complaining about your biggest customers!

It’s not the first time Verisign has rolled out this line of attack. Back in 2018, when price caps were being negotiated with the US government, it posted an article on CircleID accusing domainers of “exploit[ing] consumers” and “scalping”.

Verisign’s able to get away with this kind of attitude, of course, because most domainers have an almost erotically slavish devotion to .com. The company could spend all day every day emailing them disgustingly personalized “yo momma” jokes and they wouldn’t stop buying up its product by the millions.

The two sides are trapped in an emotionally abusive relationship but they can’t break up because they’re both making so much goddamn money out of it. They’re like the Clintons of the domain world, in other words.

Anyway, the gist of the company’s comment to ICANN is basically “Ignore the 9,000 other comments you’ve received, the commenters were suckered into writing them by lying registrars”.

Read it here (pdf).

As a matter of disclosure, Verisign cites the DI piece last week about covid-19.com as an example of why domainers suck. That wasn’t the intent of the article, but there you go.

9,000 people tell ICANN they don’t want .com price increases. Here’s what some of them said

Kevin Murphy, February 17, 2020, Domain Registries

The public have spoken: they don’t want Verisign to get the right to raise .com prices again.

ICANN’s public comment period on the amended .com contract closed on Friday, with just shy of 9,000 comments which appear to be overwhelmingly against price-raising powers.

Comments

Almost 2,000 of the comments have the same subject line, “Proposed Amendment 3 to the .COM Registry Agreement”, suggesting they were generated by the Internet Commerce Association’s semi-automated outrage tool.

It’s a lot, but it’s dwarfed by seemingly non-ICA submissions, which will make the opposition to the deal harder to ignore than with last year’s .org deal, where many of the 3,000 comments were written off as “akin to spam”.

.com’s wholesale fee has been frozen at $7.85 per year since 2012, but Verisign managed to persuade the Trump administration in 2018 to allow it to return to the old policy of being able to raise prices by 7% in four out of the contract’s six years.

After a year’s negotiation, ICANN agreed to incorporate that change into its Registry Agreement with Verisign. Some commentators, including the Registrars Stakeholder Group, are now saying that ICANN should put contracts out to comment BEFORE they are negotiated.

The RrSG said of price increases:

The RrSG is concerned that the proposed price increases are without sufficient justification or an analysis of its potentially substantial impact on the DNS. ICANN has not explained how increase domain name prices are in the public interest or how this furthers the security and stability of the DNS. The price increases appear only to benefit one company, which has the right to operate .com in perpetuity (and without a competitive bidding process). This is inconsistent with ICANN’s bottom-up multi-stakeholder model.

It’s also understandably pissed off that Verisign is to get the right to own its own registrar for the first time, which could shake up the retail domain market.

While the proposed contract does not allow the hypothetical Verisign registrar to sell .com domains, the registrars think they’ve spotted a loophole:

nothing in the amendment prevents Verisign from reselling .COM domains via another registrar. In theory, Verisign could resell .COM domain names at or below cost and still profit from the wholesale .COM price

Some registrars submitted separate comments that echoed the RrSG collective view.

GoDaddy commented that there should be an economic study on the potential impact of higher pricing on competition before any increases are allowed to go into effect, adding:

GoDaddy believes that ICANN has agreed to a framework for wholesale price increases in .COM that will negatively impact current and future registrants of .COM domain names, as well as the overall domain name industry, which is disproportionately dependent and impacted by changes in .COM pricing. We are further concerned that there is no effective competition to assist in establishing what is a reasonable price for .COM.

Namecheap, which has also been vocal in fighting .org price increases, noted that .com prices could go up by as much as 70% over the next decade, due to the compound impact of annual 7% rises, adding:

The .com registry is well-established, so due to gained efficiencies, the cost of .com domain names should remain static or go down. It is not clear how much registrars will pass these price increases along to consumers, but it is likely that most of this increase will be paid for by domain name registrants.

Drop-catch specialist TurnCommerce/NameBright called for .com to be put out for competitive bidding:

There is simply no legitimate argument that competition for registry contracts—especially the largest registry contract—is bad for the domain name system or for consumers. Without the prospect of competitive pressure, Verisign has no incentive to be efficient, innovative, and effective. In the time that Verisign has operated the registry, prices have increased, we believe innovation has stalled, while Verisign’s operating costs have apparently declined.

As far as I can tell, the Registries Stakeholder Group, of which Verisign is a member, did not submit a comment. But some other constituencies did.

The Business Constituency generally supports ICANN’s somewhat hands-off approach to price regulation, but it did complain that there should have been a public consultation before the bilateral contract talks began a year ago. It wrote:

The BC has no practical objection to price increases that average just 4.5% per year for businesses who register .COM domains. Some BC members are concerned that Verisign has not provided justification for increasing .COM prices, though we are not aware of any requirement for gTLD operators to provide such justification. And while some BC members would prefer that ICANN seek competitive bids to operate existing registries, the BC has generally supported presumptive renewal performance incentives in registry agreements.

If you’re picking up hints of internal BC dissent in that comment, it’s almost certainly because BC member Zak Muscovitch is also general counsel of the ICA and was one of several contributors to its drafting.

The only other formal GNSO stakeholder group to submit a comment appears to be the Intellectual Property Constituency, but it took no position on pricing.

The At-Large Advisory Committee, which according to its web site “acts on the interests of Internet users”, sent a borderline humorous “Valentine” to the ICANN board that does not mention pricing but does congratulate ICANN on securing a $20 million Verisign bung, which is earmarked for DNS security work.

Here’s a sample of 10 public comments I clicked on randomly:

I’m writing to express disappointment and concern regarding the recent ICANN changes made to their contract with Verisign. These changes potentially create a lot of harm and unnecessary expense to customers for years to come. Please take customers into consideration before going forward with this.

Please don’t increase .com prices. As a small business owner we feel every price increase in our family business. We want to be able to keep the domain name that we have spent years building as our small business home on the web.

I’m here to tell you to stop this proposed price increase. You are being greedy. 40% price hikes with no caps in sight are ridiculous, stop it. I’m tired of getting ripped off by big secretive corporations and sleazy government agencies, and now this includes YOU!. We aren’t going to just put up with it, I, and a lot of others are here to fight! We demand to know
what you are doing with the money you propose to reap from us, aside from lining your pockets! Proveme wrong, give the internet community the clarity it deserves, and now demands!

This is a disgrace and not right.

I disagree with the changes that this amendment (3) will make to the domain registry system. I believe that this increase of fees will stifle innovation and takes the web further towards privatization and big money.

I know that I would not have taken as many opportunities or risks if prices were significantly higher and domains were a larger cost of business.

I urge you to reconsider these changes and reject this amendment.

I am writing in opposition to the proposed Verisign deal with respect to .com domains. I believe the current arrangement should be kept and strict price controls from ICANN should be preserved for .com domains. Verisign has no business exerting control or influence over ICANN, and the deal as proposed will be bad for consumers and anyone who holds a .com domain.

Please do not proceed with the proposed changes.

Please stop trying to fuck up the internet. It has been excessively adapted to suit capitalism. I think many more than just me have had enough. Stop being a shady ass business.

I do not agree with the extraordinary increase in prices for .com domains that appears to be a direct response to a bribe paid by Verisign company to the board of ICANN.

We live in perilous times, where democracy is threatened in every side by the resurgence of corruption, cronyism, and the far right.

You appear to be allowing the backbone of the internet become corrupted by greed, which would horrify the founding fathers of this essential technology.

Show some integrity and don’t give in to the basest of your natures.

I am a registrant of more .com domain names. I am against the proposed price increase to .COM domains. Verisign is merely your manager of the .COM Registry – it has no business dictating the price. ICANN is supposed to govern the domain name system in the public interest.

Thanks first for your hard work.

Please keep prices as they are and avoid this change that could have dire consequences for the entire internet as other less democratic countries will start soon offering alternative domains to .com. Furthermore, any increase will cause difficulties for us who are part of the third world.

If you’ve got more time on your hands than I have, you can peruse all 9,000 comments at your leisure over here. If you find anything good, please do drop a link in the comments.

Some poor bastard at ICANN now has the job of going through and summarizing all of them into ICANN’s official comment report, which has a March 6 deadline.

ICA will help you support .com price increases (but doesn’t want you to)

Kevin Murphy, February 10, 2020, Domain Registries

The Internet Commerce Association has released a new version of its semi-automated commenting tool, making it a bit easier for domainers and others to complain to ICANN about the proposed .com price increases.

Surprisingly, the tool will also help you file a comment in support of Verisign’s 7%-a-year price-raising powers, though obviously ICA would prefer you do not.

The tool is based on the one ICA launched last year when Public Interest Registry was due to get its .org price caps lifted by ICANN, but ICA general counsel Zak Muscovitch says that it’s been refined following feedback.

It allows users to identify what kind of registrant they are (domainer, end user, or just concerned netizen) and select from several options to create pre-written comments that reflect their own views. They can also enter their own free text before hitting submit.

One of the options is “I support the proposed price increase which allows for a 31% price increase through 2024”, but I can’t imagine anyone apart from Verisign staff and shareholders checking that particular box.

The .org version of the tool caused a bit of a stir last year after ICANN’s Ombudsman compared submissions made through it to “spam”. He caught some flak for that.

Muscovitch tells DI that it’s not just domainers using the service. Some registrars are directly contacting their customers to encourage them to submit comments, he said, so the views of “the public at large” are being reflected.

At the time of publication about 350 comments have been submitted, more than half of which appear to have originated via the ICA tool.

The public comment period closes February 14.

If you don’t fancy using the ICA tool, submitting a comment directly to ICANN doesn’t appear to be particularly difficult. You simply go here, click the “Submit Comment” button, and ICANN will open up your mail client’s compose window with the appropriate address pre-populated.

Perhaps predictably, I remain skeptical that this kind of thing will have any impact on ICANN’s decision to approve a contract it spent a year negotiating.

But it can’t hurt, right? After all, the reason Verisign only gets to raise prices in four out of six years is because so many people complained about the much more expansive proposed powers back in 2006, and ICANN is still reeling from the outrage over .org…

Ten years ago I predicted Oscar winners wanted a .movie gTLD. Was I right?

Kevin Murphy, January 14, 2020, Domain Registries

Almost 10 years ago, when DI was barely a month old, I looked at that year’s Oscar nominees and predicted that a .movie gTLD could find some demand in the movie industry. Was I right?

Of course I was. As regular readers know, I’m always right. Apart from those times I’m wrong.

In 2010, there was no .movie gTLD and no publicly announced applications, but I noted at the time that almost half of the 50 nominated movies that year included the word “movie” immediately before the dot.

This year, there were 52 nominated movies across all categories (I’m well aware that this is a pretty small sample size to draw any conclusions from, but this post is just a bit of fun) so one might reasonably expect there to be roughly 25 official sites using .movie domains among them.

There are not. Only nine of the films, including four of the nine Best Picture nominees, use freshly registered .movie domains for their official sites.

These include the likes of 1917.movie, thecave.movie, joker.movie, onceuponatimeinhollywood.movie and littlewomen.movie.

.movie, managed by Donuts, has been around since August 2015. It competes with Motion Picture Domain Registry’s .film, which was not used by any of this year’s Oscars hopefuls.

What about the rest of this year’s nominees? Did they all register fresh .com domains for their movies?

No. In fact, only 10 of the 52 movies appear to have registered new .com domains for their official sites — one more than .movie — including two of the Best Picture nominations.

These fresh .com regs include domains such as parasite-movie.com, richardjewellmovie.com, ilostmybodymovie.com, forsamafilm.com and breakthroughmovie.com.

One movie — Honeyland, a North Macedonian environmentalist documentary about bees — uses a .earth domain.

I discovered today that, rather brilliantly, the Japan-based .earth registry demands registrants “voluntarily pledge to become ambassadors for Earth and do away with actions that harm Earth and its inhabitants” in its Ts&Cs.

So, of the 52 nominated movies, only 20 opted to register a new domain for their official site — down from 24 in 2010 — and that business was split evenly between .com and new gTLDs.

Whether the movies opted for a .movie domain appears to depend in large part on the distributor.

Sony appears to be a bit of a fan of the gTLD, while Fox, Disney and Warner tend to use after-the-slash branding on their existing .com domains for their films’ official sites.

I tallied 17 movies that have their official sites on their distributor’s .com/.org domain.

There are also trends that I could not have predicted a decade ago, such as the rise of streaming services. Back in 2010, Netflix was still largely a DVD-delivery player and was not yet creating original content.

But this year, seven of the Oscar-nominated movies were made and/or distributed by Netflix, and as such the official web site is the same place you go to actually watch the film — netflix.com.

A few of the nominated animated shorts don’t need official sites either — you just head to YouTube to watch them for free.

There are currently only about 3,200 domains in the .movie zone file, about 1,200 fewer than rival .film. It renews at over $300 a year at retail, so it’s not cheaper than the alternatives by a long way.

Verisign pays ICANN $20 million and gets to raise .com prices again

Kevin Murphy, January 3, 2020, Domain Registries

Verisign is to get the right to raise the price of .com domains by 7% per year, under a new contract with ICANN.

The deal, announced this hour, will also see Verisign pay ICANN $20 million over five years, starting in 2021, “to support ICANN’s initiatives to preserve and enhance the security, stability and resiliency of the DNS”.

According to ICANN, the pricing changes mean that the maximum price of a .com domain could go as high as $10.26 by October 2026.

Verisign getting the right to once more increase its fees — which is likely to be worth close to a billion dollars to the company’s top line over the life of the contract — was not unexpected.

Pricing has been stuck at $7.85 for years, due to a price freeze imposed by the Obama-era US National Telecommunications and Information Administration, but this policy was reversed by the Trump administration in late 2018.

The amendment to the .com registry agreement announced today essentially takes on the terms of the Trump appeasement, so Verisign gets to up .com prices by 7% in the last four years of the six-year duration of the contract.

ICANN said:

ICANN org is not a price regulator and will defer to the expertise of relevant competition authorities. As such, ICANN has long-deferred to the [US Department of Commerce] and the United States Department of Justice (DOJ) for the regulation of pricing for .COM registry services.

But ICANN will also financially benefit from the deal over and above what it receives from Verisign under the current .com contract.

First, the two parties have said they will sign a binding letter of intent (pdf) committing Verisign to give ICANN $4 million a year, starting one year from now, to help fund ICANN’s activities:

conducting, facilitating or supporting activities that preserve and enhance the security, stability and resiliency of the DNS, which may include, without limitation, active measures to promote and/or facilitate DNSSEC deployment, Security Threat mitigation, name collision mitigation, root server system governance and research into the operation of the DNS

That’s basically describing one of ICANN’s core missions, which is already funded to a great extent by .com fees, so quite why it’s being spun out into a separate agreement is a little bit of a mystery to me at this early stage.

Don’t be surprised if you hear the words “bung” or “quid pro quo” being slung around in the coming hours and days by ICANN critics.

The second financial benefit to ICANN comes from additional payments Verisign will have to make when it sells its ConsoliDate service.

This is the service that allows .com registrants, via their registrars, to synchronize the renewal dates of all of the domains in their portfolio, so they only have to worry about renewals on a single day of the year. It’s basically a partial-year renewal.

Under the amended .com contract, ICANN will get a piece of that action too. Verisign has agreed to pay ICANN a pro-rated fee, based on the $0.25 per-domain annual renewal fee, for the number of days any given registration is extended using ConsoliDate.

I’m afraid to say I don’t know how much money this could add to ICANN’s coffers, but another amendment to the contract means that Verisign will start to report ConsoliDate usage in its published monthly transaction reports, so we should get a pretty good idea of the $$$$ value in the second half of the year.

The amended contract — still in draft form (pdf) and open for public comment — also brings on a slew of new obligations for Verisign that bring .com more into line with other gTLDs.

There’s no Uniform Rapid Suspension policy, so domain investors and cybersquatters can breath a sigh of relief there.

But Verisign has also agreed to a new Registry-Registrar Agreement that contains substantial new provisions aimed at combating abuse, fraud and intellectual property infringement — including trademark infringement.

It has also agreed to a series of Public Interest Commitments, along the same lines as all the 2012-round new gTLDs, covering the same kinds of dodgy activities. The texts of the RRA addition and PICs are virtually identical, requiring:

a provision prohibiting the Registered Name Holder from distributing malware, abusively operating botnets, phishing, pharming, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law and providing (consistent with applicable law and any related procedures) consequences for such activities, including suspension of the registration of the Registered Name;

There are also many changes related to how Verisign handles data escrow, Whois/RDAP and zone file access. It looks rather like users of ICANN’s Centralized Zone Data Service, including yours truly, will soon have access to the humongous .com zone file on a daily basis. Yum.

The proposed amendments to the .com contract are now open for public comment here. You have until February 14. Off you go.

ICANN predicts shrinkage in new gTLD sector

Kevin Murphy, January 3, 2020, Domain Policy

ICANN will make less money from new gTLDs in its fiscal 2021 because fewer domains will be registered and renewed, according to its recently published draft budget.

The budget, released the day ICANN broke up for its Christmas holidays, shows that the organization expects to bring in $140.4 million in FY21, up a modest $300,000 on its FY20.

But it’s expecting the amount of money contributed by registries and registrars in the new gTLD sector to decline.

For FY21, it expects new gTLD registry transaction fees — the $0.25 paid to ICANN whenever a domain is registered, renewed or transferred — to be $5.1 million. That’s down from the $5.5 million currently forecast for FY20.

It expects registrar transaction fees for new gTLD domains to dip from $4.6 million to $4.3 million.

But at the same time, ICANN is predicting growth from its legacy gTLD segments, which of course are primarily driven by .com sales. All the other legacy gTLDs of note, even .org and .net, are currently on downward trajectories in terms of volumes.

For FY21, ICANN is forecasting legacy gTLD registry transaction fees to come in at $52.6 million, versus the $50.5 million it expects to see in the current FY20. In percentage terms, it’s about double the growth it’s predicting for the current FY.

Legacy gTLD registrar transaction fees are estimated to grow, however, from $31.2 million to $32.7 million.

In terms of fixed fees — the $25,000 every new gTLD registry has to pay every year regardless of transaction volume — ICANN is also predicting shrinkage.

It reckons it will lose a net seven registries in FY21, dropping from 1,170 to 1,163 by the end of June 2021. These are most likely dot-brand gTLDs that could follow the path of 69 predecessors and flunk out of the program.

ICANN also expects its base of paying registrars to go down by 100 accreditations, with no new registrar applications, causing fees to drop from $10.7 million this year to $9.6 million in FY21.

In short, it’s not a particularly rosy outlook for the gTLD industry, unless you’re Verisign.

ICANN’s financial year runs from July 1 to June 30 this year, and usually the December release of its draft budget includes some mid-year reevaluations of how it sees the current period playing out. But that’s not the case this time.

ICANN appears to be on-budget, suggesting that it’s getting better at modeling the industry the more years of historical transaction data it has access to.

The budget (pdf) is now open for public comment. I spotted a few errors, maybe you can too.

Q3 industry growth driven by .tk, .com and .icu

Kevin Murphy, December 20, 2019, Domain Registries

The domain name industry grew by 5.1 million names in the third quarter, according to the latest Domain Name Industry Brief from Verisign.

September ended with 359.8 million names across the board, the DNIB (pdf) shows.

Half of the growth came from Tokelau’s .tk, which is handed out for free by Freenom and is where domains never delete. It grew by 2.6 million names to 25.1 million in the quarter.

Next biggest grower was Verisign’s own .com, which grew by 1.5 million names to end September with an even 144 million. Its red-headed sibling, .net, lost 200,000 names over the same period and ended the quarter on 13.4 million.

Excluding .com and .tk leaves just one million names worth of net growth across the remainder of the industry, which comprises another 1,515 TLDs.

Taiwan’s .tw, which has been going through a bit of a spurt over the last year or so, added 300,000 domains, but .uk, which was a driver in Q2, was flat at 13.3 million.

New gTLDs grew by one million during the quarter, ending at 24 million, according to the DNIB.

That appears to have been driven almost entirely by ShortDot’s cheapo .icu, which has been flying off the shelves in China all year. Zone file records show it added over a million domains in Q3. It currently has 4.2 million names in its zone.

When these domains start to drop, it will likely be on a scale to materially affect the overall industry numbers in future DNIBs.

Verisign likely to get its billion-dollar .com pricing windfall

Kevin Murphy, October 28, 2019, Domain Registries

Verisign and ICANN appear to be on the verge of signing a new .com registry contract that could prove extremely lucrative for the legacy gTLD company.

Speaking to analysts following the announcement of Verisign’s third-quarter results late last week, CEO Jim Bidzos said talks with ICANN, which have their first anniversary this week, are “nearly complete”.

The new contract will take on the terms of the Cooperative Agreement between Verisign and the US Department of Commerce, which was amended a year ago to scrap an Obama-era price freeze.

Under the future contract, Verisign is expected to be able to raise its .com fee from its current $7.85 by 7% in four of the six years of the deal. As I wrote at the time, this could be worth close to a billion dollars.

This, for a company that already enjoys profit margins so generous that I regularly receive phone calls from perplexed analysts asking me to help explain how they get away with it.

Bidzos said on Thursday night:

let me remind you that under the 2016 amendment to our .com registry agreement with ICANN, which extended the term of the agreement, we and ICANN also agree to negotiate in good faith to do two things; first, we agree to reflect changes to the Cooperative Agreement in the com agreement, including pricing terms. Second, we agree to amend the com agreement to include terms to preserve and enhance the security and stability of the com registry or the internet.

We believe these discussions with ICANN are nearly complete. While it will be inappropriate at this time to provide more details, I can say that we were satisfied with the results so far. As noted, this is an ICANN process and we expect that before long ICANN will be publishing for public comment the documents we have been discussing.

The Cooperative Agreement also allows Verisign to launch a registrar business, just as long as that registrar does not sell .com domains.

Potentially, Verisign could get the right to launch a customer-facing registrar focused on selling .net, .org and newer gTLDs and ccTLDs.

Given we already pretty much know what the new pricing regime is going to be, the big mystery right now is why it’s taken ICANN and Verisign so long to renegotiate the contract.

One analyst asked Bidzos on Thursday whether ICANN has talked its way into getting a bigger slice of the registry fee, currently set at $0.25 per annual domain transaction.

That’s in-line with what almost all the other gTLD registries pay, and I can’t see ICANN demanding more without attracting a tonne of criticism. Verisign is already by some margin its biggest funding source.

Could ICANN have demanded that Verisign adopt the Uniform Rapid Suspension anti-cybersquatting policy, which would be guaranteed to enrage domain investors?

Whatever else is to be added to the contract, it appears to be related to that amorphous term “security and stability”, which could mean basically anything.

When ICANN and Verisign agreed to talk about new terms “to preserve and enhance the security and stability of the Internet or the TLD”, what on Earth where they talking about?

It looks like we won’t have to wait too much longer to find out.

After .org price outrage, ICANN says it has NOT scrapped public comments

Kevin Murphy, October 11, 2019, Domain Policy

ICANN this evening said that it will continue to open up gTLD registry contract amendments for public comment periods, despite posting information yesterday suggesting that it would stop doing so.

The organization recently formalized what it calls “internal guidelines” on when public comment periods are required, and provided a summary in a blog post yesterday.

It was very easy to infer from the wording of the post that ICANN, in the wake of the controversy over the renegotiation of Public Interest Registry’s .org contract, had decided to no longer ask for public comments on future legacy gTLD contract amendments.

I inferred as much, as did another domain news blogger and a few other interested parties I pinged today.

I asked ICANN if that was a correct inference and Cyrus Namazi, head of ICANN’s Global Domains Division, replied:

No, that is not correct. All Registry contract amendments will continue to be posted for public comment same as before.

He went on to say that contract changes that come about as a result of Registry Service Evaluation Process requests or stuff like change of ownership will continue to not be subject to full public comment periods (though RSEP does have its own, less-publicized comment system).

The ICANN blog post lists several scenarios in which ICANN is required to open a public comment period. On the list is this:

ICANN org base agreements with registry operators and registrars.

The word “base” raised at least eight eyebrows of people who read the post, including my two.

The “base” agreements ICANN has with registries and registrars are the 2013 Registrar Accreditation Agreement and the 2012/2017 Registry Agreement.

The RAA applies to all accredited registrars and the base RA applies to all new gTLD registries that applied in the 2012 round.

Registries that applied for, or were already running, gTLDs prior to 2012 all have bespoke contracts that have been gradually brought more — but not necessarily fully — into line with the 2012/17 RA in renewal renegotiations over the last several years.

In all cases, the renegotiated legacy contracts have been subject to public comment, but in no cases have the comments had any meaningful impact on their ultimate approval by ICANN.

The most recent such renewal was Public Interest Registry’s .org contract.

Among the changes were the introduction of the Uniform Rapid Suspension anti-cybersquatting policy, and the removal of price caps that had limited PIR to a 10% increase per year.

The comment period on this contract attracted over 3,200 comments, almost all of which objected to the price regulation changes or the URS.

But the contract was signed regardless, unaffected by the comments, which caused one registrar, NameCheap, to describe the process as a “sham”.

With this apparently specific reference to “base” agreements coming so soon thereafter, it’s easy to see how we could have assumed ICANN had decided to cut off public comment on these contentious issues altogether, but that appears to not be the case.

What this seems to mean is that when .com next comes up for renewal, it will be open for comment.