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Cybersquatter jailed for seven years after prison break

Kevin Murphy, April 20, 2015, Domain Policy

Fraudster Neil Moore, who escaped from prison by cybersquatting, has reportedly been handed a seven-year sentence by a British court.

As we reported last month, Moore escaped from Wandsworth prison merely by sending an email ordering his release from an hmcts-gsi-gov.org.uk email address.

He’d registered the name, a typo of the genuine hmcts.gsi.gov.uk used by the UK court service, on a smuggled smartphone.

He was being held on remand for an unrelated fraud at the time.

Today’s sentencing follows Moore pleading guilty to eight counts of fraud (it doesn’t seem those were related to cybersquatting) and one count of wrongful escape from custody.

ICANN in “fact-finding” mode over potential .sucks breach

Kevin Murphy, April 13, 2015, Domain Registries

ICANN is playing its cards close to its chest when pressed on what it thinks Vox Populi may have done wrong with its .sucks launch pricing and policies.

The organization told DI in a statement that it is currently “fact-finding”, and will not speculate on what parts of the Registry Agreement may have been breached.

ICANN on Thursday reported Vox Pop to the US and Canadian trade regulators, asking them to judge whether the registry’s $2,000 sunrise fee broke any laws.

Its Intellectual Property Constituency reckons the launch, which also places thousands of trademarks on permanent, high-priced “Sunrise Premium” list amounts to nothing more than a “shakedown” of brand owners.

Vox Pop CEO John Berard told DI last week that the referral to the US Federal Trade Commission, despite that fact that the company and its owners are Canadian, amounted to “appeasement” of the IPC.

In response, ICANN told DI in a statement:

The registry is offering domain name registrations to registrants located in jurisdictions around the world. It¹s possible that a registry’s activities could violate the law in the registry’s own jurisdiction; it is also possible that a registry’s activities could violate the law in the jurisdiction of a registrar or registrant where the registry offers domain name registrations. In this case, the IPC letter was signed by an attorney based in New York City, and ICANN thought it appropriate to ask both U.S. and Canadian authorities to consider the IPC allegations.

ICANN seems to be saying on the one hand that registries are beholden to the laws of wherever their registrants are based and on the other hand that the jurisdiction of the IPC’s current president, Greg Shatan, somehow has a bearing on what laws gTLD registries are obliged to obey.

I await correction from more knowledgeable readers, but I don’t think either of those statements is accurate.

If the latter is true, then perhaps the IPC should in future elect its leaders from only the countries with the most trademark-friendly regimes.

In ICANN’s letters to the FTC and IPC, the organization said it was “evaluating other remedies”. From the context, it seems that ICANN is thinking it could initiate some kind of compliance action against .sucks regardless of the what governmental regulators say.

Asked to explain this, ICANN told DI:

We¹re currently doing some fact-finding and analysis to assess whether there has been any breach by the registry of its obligations, and, based on the results of that analysis, we will try to determine what remedies, if any, may be available. Obviously, it will depend on all the facts and circumstances. Beyond that, since we haven¹t finished that evaluation process it would be inappropriate to speculate about possible remedies.

That’s not saying much, but it leaves the door open for ICANN Compliance to do something even if the FTC and Office of Consumer Affairs deem that no laws have been broken.

One possible “breach” that has been floated relates to the differential pricing created by the Sunrise Premium list. However, my take on this is that, under the new gTLD contracts, it’s not massively different to other kinds of premium pricing program.

Differential pricing protections only apply to renewal fees. If the registrant is told at the point of sale that their renewal fees will be high, that enables registries to put different fees on different domains.

There have also been theories put forward about ICANN’s motivation for referring .sucks to regulators.

The idea that ICANN can defer to the FTC and others on legal matter is not entirely new. In cases where registries intend to merge, ICANN is allowed under its contracts to refer the deals to regulators before approving them.

But this is the first time ICANN has referred new gTLD pricing to competition authorities.

Is it a case of ICANN ass-covering?

ICANN is taking unique fees worth up to $1 million extra from Vox Populi and, as I wrote two weeks ago, the optics of this are bad for ICANN, which could look like it is profiteering from .sucks.

ICANN has explained that the extra fees related to entities that were owned by Vox Pop parent Momentous, the Canadian registrar that had many subsidiaries go out of business owing ICANN a tonne of cash.

By punting the IPC’s complaint to regulators, ICANN could deflect criticism that it is not doing enough to protect rights holders and registrants while avoiding having to make a tricky decision itself.

Regardless, the FTC referral and the fact that ICANN is charging Vox Pop special fees sends a strong message that ICANN does not trust the registry one bit.

ICANN reports .sucks to the FTC over “predatory” pricing

ICANN has referred .sucks registry Vox Populi to the US Federal Trade Commission over concerns from intellectual property owners that its pricing is “predatory”.

The organization has asked the FTC and the Canadian Office of Consumer Affairs to determine whether Vox Pop is breaking any laws.

It asks both agencies to “consider assessing and determining whether Vox Populi is violating any laws or regulations enforced by your respective offices”.

If it is determined that laws are being broken, ICANN said it would be able to “enforce remedies” in the .sucks registry agreement.

ICANN goes on to say that it is “evaluating other remedies” in the registry’s contract.

The shock news comes two weeks after the Intellectual Property Constituency of ICANN complained that Vox Pop’s $2,000 sunrise fee is just a “shakedown scheme”.

The IPC said March 27 it was:

formally asking ICANN to halt the rollout of the .SUCKS new gTLD operated by Vox Populi Registry Inc. (“Vox Populi”), so that the community can examine the validity of Vox Populi’s recently announced plans to: (1) to categorize TMCH-registered marks as “premium names,” (2) charge exorbitant sums to brand owners who seek to secure a registration in .SUCKS, and (3) conspire with an (alleged) third party to “subsidize” a complaint site should brand owners fail to cooperate in Vox Populi’s shakedown scheme.

The IPC is also pissed off that there’s a Sunrise Premium fee that applies to the most famous brands, regardless of when they register.

Vox Pop CEO John Berard told DI tonight that the company’s pricing and policies are “well within the rules”, meaning both ICANN’s rules and North American laws.

He asked why ICANN has referred the matter to the FTC, given that Vox Populi is a Canadian company.

He said that a senior ICANN executive had told him it was because many IPC members are US-based. He described this as “appeasement” of the IPC interests.

Greg Shatan, president of the IPC, whose letter sparked ICANN’s outreach to the FTC and OCA, said that the word “justice” is more appropriate than “appeasement”. He told DI tonight:

We’re looking forward to the FTC and OCA taking a look at Vox Populi’s behavior. And there’s lots to look at. The punitive TMCH Sunrise, where a “rights protection mechanism” intended to protect trademark owners has been turned into a scheme to extort $2,500 and up… The eternal Sunrise Premium of the far-from-spotless .SUCKS registry. The mysterious “everybody.sucks” — purportedly a third party, purportedly providing a “subsidy” to registrant — would anyone be surprised if that was a sham?

With reference to the FTC referral, Shatan also told DI tonight:

I don’t think ICANN wants to waste the FTC’s time. It’s far more rational to think that ICANN informed the FTC because Vox Populi’s activities are within the jurisdiction of the FTC. Mr. Berard’s remarks seem to indicate that he believes that Vox Populi operates beyond the reach of US laws.

With a tech contact in Bermuda and an admin contact in the Caymans, that may have been Vox Pop’s intention. Vox Pop may be operating outside US laws, but I doubt they are operating beyond their reach.

Vox Populi is incorporated in Canada, hence ICANN’s outreach to the Canadian regulator. According to its gTLD application, its only 15%+ owner is Momentous, another Canadian company.

But its IANA record lists an address in Bermuda for its technical contact and Uniregistry’s office in Grand Cayman as its administrative address.

There’s been rumors for months that Uniregistry or CEO Frank Schilling helped bankroll Vox Populi’s participation in the .sucks auction, which saw it splash out over $3 million.

ICANN is asking the US and Canadian agencies to respond to its letter with “urgency”, as .sucks is currently in sunrise and is due to go to general availability May 29.

Trademark owners and celebrities are already registering their names in the .sucks sunrise period.

ICANN confirmed in a separate letter today to IPC chair Greg Shatan that Vox Pop has paid ICANN a unique $100,000 start-up fee, and has promised to pay an extra $1 per transaction, due to now-defunct Momentous subsidiaries defaulting on “substantial payments”.

As DI reported last week, ICANN says that the fee is “not related to the nature” of .sucks, but it could give the appearance that ICANN is a beneficiary of the .sucks business model.

This article was published quite quickly after the news broke. It was updated several times on April 9, 2015. It was updated with background material. It was then updated with comments from Vox Pop. It was then updated with comments from the IPC. Later commenters had the benefit of reading earlier versions of this post before they submitted their comments.

Kevin Spacey among first .sucks buyers

Kevin Spacey, Google, Apple and Microsoft are among the first to buy .sucks domains in apparent attempts to protect their reputations.

Vox Populi Registry, which took .sucks to its sunrise period on Monday, has started publishing the names of sunrise registrants on its web site.

Names scrolling past on a ticker stream this morning include kevinspacey.sucks, gmail.sucks, siri.sucks and windowsphone.sucks.

Other brands to register so far include Instagram, WordPress, Bank of America, Wells Fargo and Wal-Mart.

The dominant registrars on the ticker are MarkMonitor, CSC and LexSynergy, which all specialize in brand protection.

It’s notable that some of the registered strings are secondary brands covering products and services, rather than merely the company’s name.

That could suggest that trademark owners are being somewhat aggressive in their defensive registrations in .sucks.

Actor Kevin Spacey, the only celebrity I spotted on the ticker, has a track record of protecting his personal brand online.

In 2002, he won a cybersquatting complaint over kevinspacey.com, which is now his official web site.

Spacey… well, let’s just say he has been the subject of many speculative media reports over the years. We have mutual acquaintances and from what I hear I can see why he wouldn’t want his brand in third-party hands.

UPDATE: Taylor Swift’s people, who made headelines a few weeks ago by buying taylorswift.porn, have also acquired taylorswift.sucks via MarkMonitor.

Will Vox Populi eat its own .sucks dog food?

Kevin Murphy, March 30, 2015, Domain Registries

Vox Populi has yet to decide whether it will put its mouth where its money is and open up its own brand for the .sucks treatment.

In a radio interview with the Canadian Broadcasting Corporation’s Day 6 show broadcast on Friday, registry CEO John Berard was asked whether the company would register voxpopuli.sucks and allow it to be used as a third-party criticism site.

Vox Populi is positioning .sucks as a space where big brands and others register names in order to solicit useful commentary, criticism and conversation from their customers.

So the correct answer to the question would have been: “Yes, of course we will do that.”

But Berard was more ambiguous in his response:

HOST: What will you do with the voxpopuli.sucks web site? Will you put it up or will you hold it?

BERARD: My instinct would be to put it up.

HOST: But there’s a possibility that you won’t?

BERARD: It’s a business decision we’ll have to make and I think it’s probably the smarter business decision to put it up.

In my view, the company would be mad to sit on voxpopuli.sucks and related names.

By eating its own dog food, it would send the message that it actually believes its own marketing line.

I’m frankly surprised that Vox Pop has not already enthusiastically confirmed it will open itself up to the same kind of treatment as its sunrise period customers.

The full 15-minute CBC piece, which includes four minutes of yours truly busting his radio cherry and five of domain investor Rick Schwartz bitching about how “corrupt” ICANN is, can be streamed here.

The .sucks sunrise period begins today, with a controversial recommended retail price of $2,500 per year.