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Porn-block retail prices revealed. Wow.

Kevin Murphy, August 20, 2019, Domain Registrars

The first retail prices for MMX’s porn-blocking AdultBlock services have been revealed, and they ain’t cheap.

The registrar 101domain yesterday announced that it has started offering AdultBlock and sister service AdultBlock+, and published its pricing.

Trademark owners wanting to block a single string across .sex, .porn, .adult and .xxx will pay $349 per year with the vanilla, renew-annually service.

If they want the AdultBlock+ service, which also blocks homographs, they’ll pay $799 a year or $7,495 for the maximum 10-year term.

Compare this to the Sunrise B offer that ICM Registry made to trademark owners in 2011, where a string in .xxx cost roughly $200 to $300 for a 10-year block.

The two services are not directly comparable, of course. AdultBlock covers three additional TLDs and the AdultBlock+ service covers confusingly similar variants.

But trademark owners are buying peace of mind that their brands won’t be registered as porn sites, and the cost of that peace of mind just increased tenfold.

AdultBlock domains don’t resolve, and are a lot cheaper than domain registrations.

Renewing a single string in all four gTLDs at 101domain prices would cost around $480 a year, so customers will pay about 27% less buying a block instead.

The cost of the first year for those four domains would be $360, just $11 more than the AdultBlock price, according to 101domain’s price list.

MMX, which acquired the gTLD portfolio from ICM last year, is offering a discount on the AdultBlock+ service for customers buying before the end of 2019.

101domain is offering 10 years of AdultBlock+ for $3,999, a saving of $3,500.

101domain is not known as a particularly expensive registrar, so prices elsewhere in the industry could go higher.

EFF becomes second to appeal new .org contract

Kevin Murphy, August 7, 2019, Domain Registries

The Electronic Frontier Foundation has appealed ICANN’s decision to add stronger trademark protection rules to .org.

The civil liberties organization has filed a Request for Reconsideration with ICANN, saying that the new .org contract should not oblige Public Interest Registry to implement the Uniform Rapid Suspension policy.

URS is a swifter, cheaper version of the anti-cybersquatting UDRP policy. It can lead to clear-cut cases of trademark-infringing domains being relatively quickly suspended, but not transferred.

But the EFF is worried that it could be abused to curtail free speech.

It said URS is “particularly dangerous for the many .org registrants who are engaged in an array of noncommercial work, including criticism of governments and corporations”.

URS was created via ICANN’s bottom-up, community-led policy-making process to apply to new gTLDs applied for in 2012, not legacy gTLDs such as .org, EFF argues,

Adding more rights protection to a legacy gTLD “should be initiated, if at all, through the multistakeholder policy development process, not in bilateral negotiations between a registry operator and ICANN staff”, the RfR states.

The EFF is also concerned that the new contract allows PIR to unilaterally create its own additional rights protection mechanisms.

I don’t think this is a new power, however. Remember when PIR proposed a “Copyright UDRP” a couple of years ago, evidently as a way to turf out The Pirate Bay? That plan was swiftly killed off after protests from, among others, the EFF.

The EFF’s reconsideration request (pdf) does not address the issue of price increase caps, which were removed in the new contract.

That more-controversial provision is already the subject of an RfR, filed by NameCheap last month.

Both RfRs will be dealt with by ICANN’s Board Accountability Mechanisms Committee before being passed to the full board.

Porn blocks could be worth millions to MMX

Minds + Machines could find itself making millions of dollars a year out of non-resolving defensive registrations in its recently acquired portfolio of porn-themed gTLDs.

The company recently announced the launch of AdultBlock and AdultBlock Plus, which will enable trademark owners to prevent anyone else registering their marks, and variants thereof, for up to 10 years.

Running the numbers, and taking into account MMX’s already substantial established client base for such services, AdultBlock could bring in as much as $11 million a year. But it’s almost certainly going to be much less than that.

The company won’t disclose it’s exact pricing for AdultBlock, or its revenue estimates, but it’s possible to do some back-of-the-envelope calculations and come to some ball-park guesses.

MMX has said that it’s pricing the service such that customers should be able to see a 35% saving compared to the cost of registering a single string across all four of its porn TLDs

The company acquired .xxx, .porn, .adult and .sex when it bought ICM Registry last year.

The wholesale fee for each of the four is believed to be about $68 a year. From this, we can calculate that the wholesale price of AdultBlock may well be around the $175-a-year mark.

There’s some room for error here, as MMX hasn’t revealed precisely how it came to its 35% number, but I think we can safely say we’re looking at $150 to $200 a year. For the purposes of this envelope, let’s split the difference and assume it’s $175.

It’s quite a high number, a bit like a recurring sunrise fee for a domain that you don’t even get to use.

But how many domains can MMX expect to be blocked?

A low-ball estimate could be modeled on the .porn/.adult/.sex sunrise periods.

.porn launched in 2015 and gathered 2,091 sunrise registrations, according to ICANN records, making it one of the largest new gTLD sunrise periods. The other two TLDs weren’t far behind.

If that’s a good guide for AdultBlock uptake, we’re talking about a piddling $360,000-a-year business.

But MMX has a secret weapon that it inherited from .xxx.

When .xxx launched back in 2011, it kicked off with two sunrise periods. Sunrise A was for trademark owners in the porn business who wanted to use their .xxx names. Sunrise B was for everyone else, who didn’t.

In Sunrise B, brand owners paid $162 (plus their registrar’s markup) to block their domains for a flat period of 10 years.

Customers couldn’t use their domains. They were registered to ICM and used specially designated ICM name servers to resolve to a standard, non-monetized placeholder page stating “This domain has been reserved from registration.”

There are over 80,000 domains using these name servers, but about 15,000 of those represent names of celebrities, cities, and religiously and culturally sensitive terms that ICM culled from Wikipedia and unilaterally reserved to help avoid a tabloid crucifixion if mileycyrus.xxx ever started bouncing children to something pornographic, such as one of her music videos.

(As an aside, I think it’s worth mentioning that the .xxx zone file only has 93,000 names in it. These means about nine out of 10 live .xxx domains are reserved by the registry.)

So we’ve got 65,000 trademarks that are currently blocked in .xxx, and they’re all going to expire in 2021 because ICM only sold blocks for the duration of its original 10-year ICANN contract.

If all 65,000 domains are upgraded to AdultBlock, the service would be worth over $11 million a year, to a company currently reporting annual revenue around $15 million.

But they won’t.

You don’t have to scroll too far down the .xxx zone file (and I didn’t) to discover some absolute garbage, no doubt the result of scaremongering around the 2011 .xxx launch.

I mean, seriously, look at some of this Sunrise B guff:

100percentwholewheatthatkidslovetoeat.xxx, 101waystoleaveagameshow.xxx, 1firstnationalmergersandacquisitions.xxx, 1stchoiceliquorsuperstore.xxx, 2bupushingalltherightbuttons.xxx, 247claimsservicethesupportyouneed30minutesguaranteed.xxx, 3pathpowerdeliverysystembypioneermagneticsinc.xxx

I think we’re going to be looking at a significant junk drop of blocked domains come 2021.

That said, I think MMX may have a psychological advantage here, when it comes to persuading Sunrise B users to “renew”.

Who hasn’t renewed a domain name they strongly suspect they will never use or sell, simply because they couldn’t bear the thought of somebody else owning “their” domain?

An additional consideration for brand owners is that these Sunrise B names are going to show up on drop-lists when they are eventually deleted from the .xxx zone file, perhaps giving inspiration to cybersquatters.

This is a fantastic opportunity for MMX and brand protection registrars to put the hard sell on its Sunrise B customers to “renew” their blocks by upgrading to the new and improved AdultBlock service, which could cost literally 10 times more than what they originally signed up for.

AdultBlock is of course more comprehensive than Sunrise B. It covers three additional TLDs, for starters, and customers can pay a little more for potentially thousands of potential homographs (non-Latin-script domains that look almost identical to the original) to also be blocked.

MMX isn’t waiting until 2021, however. It’s currently offering companies that buy a 10-year-block before the end of 2019 the AdultBlock+ service for the price of the vanilla, no-variants offering.

Existing Sunrise B customers have until the same deadline to purchase the new service without having to have their trademarks re-verified, which carries an additional fee.

For those that miss this early-bird offer, come December 2021, the holders of up 65,000 trademarks are going to face a stark choice: sign up to pay a couple hundred bucks a year, or risk their brands being snapped up by pornsquatters.

Cybersquatting cases down a bit in the UK

The number of cybersquatting complaints filed with Nominet declined slightly in 2018, according to the registry.

Nominet’s Dispute Resolution Service, which is a bit like the UDRP, handled 671 cases last year, compared to 712 in 2017.

The number of domains at issue was down from 783 to 763.

The slight decline appears to be because fewer complaints were filed against .org.uk, .me.uk and plain .uk domains.

The number of .co.uk registrations challenged was flat between 2017 and 2018 at 617 domains.

Only 49% of cases resulted in the disputed domain being transferred, according to the registry’s annual report (pdf).

PwC wants to be your Whois gatekeeper

Kevin Murphy, June 11, 2019, Domain Services

PricewaterhouseCoopers has built a Whois access system that may help domain name companies and intellectual property interests call a truce in their ongoing battle over access to private Whois data.

Its new TieredAccess Platform will enable registries and registrars to “outsource the entire process of providing access to non-public domain registration data”.

That’s according to IP lawyer Bart Lieben, partner at the Belgian law firm ARTES, who devised the system and is working with PwC to develop it.

The offering is designed to give trademark lawyers access to the data they lust after, while also reducing costs and mitigating domain name industry liability under the General Data Protection Regulation.

TieredAccess would make PwC essentially the gatekeeper for all requests for private Whois data (at least, in the registries plugged into the platform) coming from the likes of trademark owners, security researchers, lawyers and law enforcement agencies.

At one end, these requestors would be pre-vetted by PwC, after which they’d be able to ask for unredacted Whois records using PwC as an intermediary.

They’d have to pick from one of 43 pre-written request scenarios (such as cybersquatting investigation, criminal probe or spam prevention) and assert that they will only use the data they obtain for the stated purposes.

At the other end, registries and registrars will have adopted a set of rules that specify how such requests should be responded to.

A ruleset could say that cops get more access to data than security researchers, for example, or that a criminal investigation is more important than a UDRP complaint.

PwC has created a bunch of templates, but registrars and registries would be able to adapt these policies to their own tastes.

Once the rules are put in place, and the up-front implementation work has been done to plug PwC into their Whois servers, they wouldn’t have to worry about dealing with Whois requests manually as most are today. The whole lot would be automated.

Not even PwC would have human eyes on the requests. The private data would only be stored temporarily.

One could argue that there’s the potential for abusive or non-compliant requests making it through, which may give liability-nervous companies pause.

But the requests and response metadata would be logged for audit and compliance, so abusive users could be fingered after the act.

Lieben says the whole system has been checked for GDPR compliance, assuming its prefabricated baseline scenarios and templates are adopted unadulterated.

He said that the PwC brand should give clients on both sides “peace of mind” that they’re not breaking privacy law.

If a registrar requires an affidavit before releasing data, the assertions requestors make to PwC should tick that box, he said.

Given that this is probably a harder sell to the domain name industry side of the equation, it’s perhaps not surprising that it’s the requestors that are likely to shoulder most of the cost burden of using the service.

Lieben said a pricing model has not yet been set, but that it could see fees paid by registrars subsidized by the fees paid by requestors.

There’s a chance registries could wind up paying nothing, he said.

The project has been in the works since September and is currently in the testing phase, with PwC trying to entice registries and registrars onto the platform.

Lieben said some companies have already agreed to test the service, but he could not name them yet.

The service was developed against the backdrop of ongoing community discussions within ICANN in the Expedited Policy Development Working group, which is trying to create a GDPR-compliant policy for access to private Whois records.

ICANN Org has also made it known that it is considering making itself the clearinghouse for Whois queries, to allow its contracted parties to offload some liability.

It’s quite possible that once the policies are in place, ICANN may well decide to outsource the gatekeeper function to the likes of PwC.

That appears to be what Lieben has in mind. After all, it’s what he did with the Trademark Clearinghouse almost a decade ago — building it independently with Deloitte while the new gTLD rules were still being written and then selling the service to ICANN when the time came.

The TieredAccess service is described in some detail here.