Latest news of the domain name industry

Recent Posts

1.8 million UK grandfathers die after Nominet deadline hits

The deadline for registering “grandfathered” second-level domains in .uk passed this morning, leaving at many as 1.88 million names unclaimed.

From June 2014 until 0500 UTC this morning, anyone who owned a third-level domain in zones such as .co.uk or .org.uk had rights to register the matching 2LD under .uk.

Those rights have all expired now, and all the unclaimed 2LDs will be returned to the available pool next month.

Four days ago, Nominet said that there were still 1.88 million rights that had not been exercised. That’s from the over 10 million 3LDs whose registrants were initially given rights.

In March, 3.2 million names were still unclaimed. It seems about 1.4 million names have been claimed, or expired, at the eleventh hour, almost all in June.

One way of looking at it is that the owners of almost one in five .co.uk domains either decided they didn’t want the matching 2LD, or were unaware that it was available.

But about half of the original domains with rights have since dropped, so the portion of current 3LD owners now at risk of confusion with their 2LD match could actually be more like four in 10.

At the end of May, 2,439,181 .uk domains had been registered (including non-grandfathered domains) and there were 9,729,224 names registered at the third level.

The 1.8 million unclaimed names will now be the subject of a landrush.

On July 1, Nominet will start releasing the names in batches, alphabetically.

Accredited registrars will start slamming the registry — Nominet has set up a separate set of EPP infrastructure purely for this expected onslaught — with requests to register the most-valuable names.

Some registrars have been taking pre-registrations and will auction any names they successfully claim to the customers who put in pre-orders.

After a week, any names not already claimed by registrars will be released to the public, again in batches, starting from July 8.

The system has been criticized by smaller registrars, many of which believe Nominet is giving its larger registrars a much better chance at winning the good names simply because they have deeper pockets.

auDA reveals cut-off date for 2LD priority

Australian ccTLD manager auDA has revealed how old your .com.au domain has to be to qualify for priority registration of the matching second-level .au domain.

If you registered your current domain before February 4, 2018, you will get “category 1” priority. Names registered after that are considered “category 2”.

The categories will come into play when auDA makes direct 2LDs registrations available at some point in the fourth quarter this year.

Category 1 domain owners will have until April 20 next year to catch their match, then category 2 owners get until August 1.

It’s a much speedier process than the five-year grandfathering period Nominet offered in .uk domains.

After the priority periods are over, all unclaimed .au domains will be released to the available pool.

Brand owners, domain investors, and actually basically anyone who owns a .com.au or .org.au domain has a little over 13 months to make their mind up whether they want to run the risk of confusion with a third-party owner of a very similar domain.

Pricing is the same as third-level domains, so opting in to the 2LD basically doubles the price of participating in .au ownership.

auDA’s draft rules for the process can be read here (pdf).

Second-level .au domains ARE coming soon

Australian ccTLD manager auDA has given itself approval to start selling .au domains at the second level for the first time.

auDA said today that it plans to lift its third-level-only rule in the fourth quarter this year.

The date of October 1 has been penciled in, but auDA said it will release more details as the time approaches.

There will be a grandfathering policy in place for existing registrants of 3LDs under the likes of .com.au and .org.au, but its deadlines are much tighter than the policies in, for example, .uk.

Under the published rules (pdf), registrants who owned 3LDs in .au before a cut-off date will get first dibs on the matching 2LD.

That priority period will end April 1, 2020.

After that, registrants who bought their .au names between the cut-off date and now will get also get priority, until August 1, 2020.

The cut-off date has yet to be determined by the auDA board of directors.

After the priority period is over, all unclaimed domains will be available to register by anyone.

You’re basically looking at six to 10 months of grandfathering rights, compared to the five years Nominet offered in when it made direct 2LD registration possible in .uk.

The 2LD policy has been four years in the making, and has courted controversy along the way.

Domain investors in particular have complained, worried that 2LDs will cause confusion and dilute the value of their 3LD investments.

auDA rejects domaining ban but approves second-level domains

Kevin Murphy, April 16, 2019, Domain Policy

Australian ccTLD registry auDA has rejected a proposal that would have essentially banned domainers from the .au space.

In response to recommendations of its Policy Review Panel, auDA management said that the PRP “has not provided any evidentiary material” that so-called “warehousing” is harmful.

It further concluded that the policies proposed for monitoring and rooting out suspected domainers would disproportionately increase compliance costs for both registrants and auDA itself.

In management’s response (pdf) to the PRP, auDA wrote that the ban would make investors second-class citizens when compared to powerful trademark owners:

The warehousing prohibition appears to disproportionately target domain investors as the licence portfolios or holdings of trademark and brand owners will be excluded under the PRP proposal. This proposal elevates the rights of trademark and other intellectual property owners over other licence holders in the .au domain, which may give rise to issues of market power and anti-competitive practices. Management believes that further information is required to assess whether the net benefit to the community of prohibiting warehousing in respect of a class of registrants outweighs the competition issues. For these reasons Management believes that there should be no change to the existing policy position.

It added:

Management does not support the PRP recommendation for a resale and warehousing prohibition for the reasons set out earlier. The proposed test for determining whether a registrant has contravened the resale and warehousing prohibition will increase compliance costs for registrants and administration, monitoring and enforcement costs for auDA. These costs may be disproportionate to the risk or severity of the harm to the community from warehousing and the cost of a licence in the .au domain.

Not only did it decide not to crack down on domainers, but auDA also plans to make their lives a little easier by updating current eligibility policy to explicitly state that parking, or “monetization”, is permitted.

To ensure there is no ambiguity or reliance on interpreting ‘content’, auDA management has recommended an additional allocation criteria can be applied to com.au and net.au which would include that a domain name could be used for the purpose of pay-per-click or affiliate web advertising/ lead generation, or electronic information services including email, file transfer protocol, cloud storage or managing Internet of Things (IoT) devices.

It’s a comprehensive win for domainers, such as those represented by the Internet Commerce Association, which had been outraged by the PRP’s findings.

It’s less good news when it comes to the perhaps more controversial plans to allow direct, second-level registrations under .au.

auDA has decided to go ahead with these longstanding plans, which domainers worry will promote confusion and dilute the value of their third-level .com.au portfolios.

The new draft plans (pdf) for the launch of 2LDs would see existing 3LD registrants given “priority status” to register the exact-match 2LD.

There would be a six-month application window for registrants to lodge their claims, beginning October 1 this year.

If the .com.au version and .org.au version, for example, were owned by different parties, the registrant with the earliest registration date would have priority.

After the application window closed, any unclaimed domains would be made available on a first-come, first-served basis.

These rules, and all the results of auDA’s response to the PRP, are open for public comment until May 10.

Domainers could lose their names as .au loophole closes

Kevin Murphy, June 14, 2018, Domain Policy

Domain investors dabbling in the .au space could face losing their names under new policies set to be proposed.

The .au Policy Review Panel, which helps set policy for Australian ccTLD registry auDA, said this week it is thinking about closing a loophole related to domain monetization that has allowed “speculation and warehousing” in violation of longstanding rules.

Monetized domains are “largely detrimental” to .au and rules permitting the practice should be scrapped, the panel is expected to formally conclude.

Anyone currently monetizing domains could be given as little as a day to comply with the new rules or face losing their names.

The expected recommendations were outlined in a memo (pdf) penned by panel chair John Swinson, an intellectual property lawyer, who wrote:

the Panel received a lot of feedback and information from the public that Domain Monetisation is largely detrimental to the name space. Feedback, including from sophisticated businesses, domain brokers and portfolio owners, was one could register almost any domain name under the Domain Monetisation rule, and that the current rules were unclear, and that domain names were being registered under the cover of Monetisation primarily for the purposes of resale or warehousing (which is contrary to the current policy).

Current auDA policy on domaining, dating from 2012, is pretty clear when it comes to domainers: “A registrant may not register a domain name for the sole purpose of resale or transfer to another entity.”

However, there’s a loophole when it comes to domains that are monetized with ad links. If a domain is monetized, reselling no longer becomes its “sole purpose”.

Another auDA policy also from 2012 specifically permits monetization as a valid reason for owning a .com.au or .net.au name.

It says that monetized domains must carry ad content relevant to the topic of the domain, and that there should be no brand infringement in the domain itself.

Swinson’s panel agreed in a May 1 meeting (pdf) that this rule should be scrapped.

It’s not entirely clear what would come to replace it, as the panel doesn’t seem likely to actually ban monetization as such. Swinson wrote:

Because the current rules are outdated, inconsistent and unclear, it is difficult to enforce the current rules that prevent the registration of domain names for domain speculation and warehousing.

The Panel’ s current view is that Domain Monetisation will not be banned, but of itself will not be a basis to meet the allocation criteria.

The “allocation criteria” refers to the eligibility requirements for .au domains, which currently require a “close and substantial” link between the registrant and the name.

The panel’s memo states that there would be a “grandfathering” period during which domainers whose sites do not comply with the new policy would have time to update them:

The Panel’s current view is to recommend that any new eligibility and allocation rules should apply on the next renewal of a domain name license. This will give domain name licensees who meet the current rules, but who will not meet any new rules, time to deal with the non-compliance.

The problem here of course is that the “next renewal” could be anywhere from a day to two years away, depending on the domain. That’s probably an area the panel needs to look at.

The monetization issue is one of several addressed in the panel’s interim report (pdf), which also looks at the possibility of direct, second-level domain registration.

Any new policy on either issue is still many months away.

auDA may sue to delay boardroom bloodbath

Kevin Murphy, April 23, 2018, Domain Registries

auDA is thinking about taking its membership to court in order to delay a vote on the jobs of four of its directors.

The Australian ccTLD registry has also delayed further consideration of its policy to introduce direct, second-level registrations in .au until late 2019.

Both announcements came in the wake of a government review of the organization, which found it “no longer fit-for-purpose”.

auDA last week asked its members to agree to a postponement of the special general meeting, called for by a petition of more than 5% of its members, at which there would be votes on whether to fire the CEO, its chair, and two independent directors.

Under the law, auDA has to hold the SGM by June 7 at the latest, according to a letter (pdf) sent to members on Friday.

But auDA wants to delay the meeting until mid-September, at the earliest, to coincide with its regular Annual General Meeting.

If its members do not consent to the delay — it gave them a deadline of 4pm local time today, meaning responses would have to be drafted over the weekend — auDA said it “intends to apply for a court order… extending the time for calling the requested SGM”.

The delay is needed, auDA said, in order to give the organization the breathing space to start to implement the reforms called for by the government review.

The government wants the makeup of the auDA board substantially overhauled within a year to better reflect the stakeholder community and to ensure directors have the necessary skills and experience.

In response, auDA has told the government (pdf) that it agrees with the need for reform, but that it will not be able to hit its deadlines unlesss the SGM is delayed.

It also said calling the SGM on time would cost it somewhere in the region of AUD 70,000, based on the cost of a similar meeting last year.

auDA announced separately last week that it is delaying any more discussion on second-level registrations — something the reform campaigners largely are opposed to — “until the second half of 2019 at the earliest”.

Josh Rowe, coordinator of the Grumpier.com.au petitioners, said in his response that he found the request for the SGM delay “extremely disappointing”, adding:

auDA is at an important juncture following the Australian Government’s review. However, it is critical that people with the right skills and experience lead auDA through its reform.

Members have lost confidence in the auDA CEO, and the three auDA independent directors. They do not have the right skills and experience to lead auDA through its reform.

He noted that members do not have the resources to fight auDA in court.

Grumpier Aussies call for more blood on the auDA boardroom floor

A group of pissed-off members of the Australian domain name industry are calling for the heads of auDA’s CEO, its new chair, and two other members of its board.

A triumvirate of long-time participants in the auDA community say they have secured enough signatures on a petition to force the organization to call the meeting under Aussie law.

They want a vote of no confidence in the CEO, Cameron Boardman, and the firing of all three “independent” directors: Chris Leptos (also chair), Sandra Hook and Suzanne Ewart.

Their list of beefs is long, but high on it is auDA’s plan to open up .au to direct, second-level registrations for the first time, enabling folk to register example.au instead of example.com.au.

If this all sounds worryingly familiar, it’s because it’s the second year in a row members have called a special meeting in order to oust its top brass.

A campaign orchestrated at Grumpy.com.au last year resulted in chair Stuart Benjamin quitting ahead of a member vote to fire him.

This year’s campaign is being coordinated, with a nod and a wink but none of Grumpy’s original leaders, at Grumpier.com.au.

Entrepreneur Josh Rowe appears to have held the pen on the petition, backed up by former head of auDA public affairs Paul Szyndler and businessman Jim Stewart.

As well as the direct registration issue, which the three men think is merely a cash-grab with no benefits for registrants, the petitioners have some harsh things to say about auDA’s governance and transparency.

The organization has promised to be more open in the wake of last year’s carnage, but Grumpier thinks “things have only got worse”.

The petition also alludes to rumors of “whispering campaigns” against former staff and “possible financial irregularities”.

Rowe recently complained on his blog about a freedom of information request related to his own conduct, filed by the same person pursing form auDA CEO (and current ICANN vice chair) Chris Disspain with FOIA requests.

They also unhappy that auDA is switching .au’s registry service provider from Neustar to Afilias, gaining a rumored 60% discount of which only 10% will be passed on to registrars.

It’s all getting rather nasty, and I’ve not even mentioned some of the rumors of shenanigans that I seem to find in my inbox on an almost daily basis.

To force a special member meeting under Australian law, Grumpier says it had to secure signatures of 5% of the members, which it says it has done.

That’s not much of a threshold, given that auDA only has about 320 members at the moment.

Assuming auDA agrees that it has to hold a meeting, it has a couple of months to do so.

Now South Africa looks to second-level domain sales

Kevin Murphy, March 13, 2018, Domain Registries

South Africa looks to be the next country to start letting people register domains directly at the second level of its ccTLD.

Local registry authority ZADNA this week opened a policy consultation on allowing registrants access to direct, second-level .za names.

Currently, if you want a .za you have to register at the third level under the likes of .co.za or .net.za.

But ZADNA says second-level names will help it continue to compete in a market now populated by hundreds of new gTLDs.

The company said it has been “inundated” by calls for such a move.

The policy shift would see South Africa follow the the path beaten in recent years by UK, New Zealand, Kenya and (probably) Australia, which have all changed policy to allow second-level names.

But these things are never without controversy.

Domain investors are typically resistant to such moves, fearing dilution and the possible devaluing of their portfolios.

There are often also intellectual property concerns, and concerns about priority “grandfathering” rights when matching .co.za and .org.za names, for example, have different owners.

ZADNA is floating the possibility of auctions to resolve these kinds of conflicts.

The proposal (pdf) is open for comment until April 16.

auDA probably won’t pass on full Afilias savings to registrants

Kevin Murphy, February 22, 2018, Domain Registries

Switching .au’s back-end to Afilias will cut auDA’s per-domain costs by more than half, but registrants are not likely to benefit from the full impact of the savings.

auDA’s Bruce Tonkin, who led the committee that selected Afilias to replace incumbent Neustar, told DI this week that the organization is likely to take a bigger cut of .au registration fees in future, in order to invest in marketing.

That would include marketing the ability of Aussies to register .au domains at the second level for the first time — a controversial, yet-to-roll-out proposal.

Tonkin confirmed that the back-end fee auDA will be paying Afilias is less than half of what it is currently paying Neustar — the unconfirmed rumor is that it’s 40% of the current rate — but said that Afilias was not the cheapest of the nine bidders.

While .au names are sold for a minimum of two years, the current wholesale price charged to registrars works out to AUD 8.75 ($6.85) per year, of which Neustar gets AUD 6.33; auDA receives the other AUD 2.42.

A back-end fee of roughly $5 (US) per domain per year is well above market rates, so it’s pretty clear why auDA chose to open the contract to competition.

Tonkin explained the process by which Afilias was selected:

We first considered scoring without price, and Afilias received the highest score for non-financial criteria.

We then considered pricing information to form an assessment of value for money. The average pricing across the 9 [Request For Tender] responses was less than half of the present registry back-end fee ($6.33). Afilias was close to the average pricing, and while it was not the cheapest price — it was considered best value for money when taking into account the highest score in non-financial criteria.

I asked Afilias for comment on rumors that its price was 60% down on the current rate and received this statement:

Afilias believes auDA chose us based on the best overall value for the Australian internet community. The evaluation heavily weighted expertise, quality and breadth of service over price. While we don’t know what others bid, Afilias works to be competitive in today’s market. Attempts to price significantly higher than market without a value proposition are unrealistic and could even be considered price gouging.

It’s not known what price Neustar bid for the continuation of the contract, but I expect it will have also offered a deep discount to its current rate.

By switching, auDA is basically going to be saving itself over AUD 3 per domain per year, which works out to a total of AUD 9 million ($7 million) per year at least.

But the organization has yet to decide how much of that money, if any, to pass on to its registrars and ultimately registrants.

The auDA board of directors will meet in March to discuss this, Tonkin (who is in charge of the registry transition project but not on the board) said.

“We don’t want to set expectations that the wholesale price is going to change massively,” he said.

“I don’t expect it’s going to be any higher than the current wholesale price,” he said.

But he said he expects auDA to increase its slice of the pie in order to raise more money for marketing. The organization does “basically no marketing” now, he said.

“There’s certainly strong interest in doing more to market and grow the namespace,” he said. “One option is that more money is put into marketing the namespace and growing awareness of .au… That AUD 2.42, I expect that to change.”

This would include marketing direct second-level registrations, an incoming change to how .au names are sold that has domain investors worried about confusion and market dilution.

Outrage over the 2LD proposal — it appears to be a done deal, even if the details and timeline have yet to be finalized — has started attracting the attention of business media in Australia recently.

But auDA’s own research shows that opposition is not that substantial outside of these “special interests”.

A survey last year showed that 40% of .com.au registrants “support” or “strongly support” the direct registration proposal, with 18% “opposed” or “strongly opposed” Another 42% were completely unaware of the changes.

Support among .org.au registrants was lower, and it was higher among .net.au registrants.

But 36% of “special interests” — which appears to mean people who discovered the survey due to their close involvement in the domain industry — were opposed to the plan.

There’s no current timeline for the introduction of direct registrations, but the back-end handover from Neustar to Afilias is set to happen July 1 this year.

Neustar acquired AusRegistry, which has been running .au since 2002, for $87 million a couple of years ago.

Australia considers dumping the .com.

Kevin Murphy, April 20, 2015, Domain Policy

Australian domain overseer auDA is thinking about allowing people to register .au domains directly at the second level for the first time.

The organization has opened up a consultation that would allow registrations such as example.au, rather than just the current system of example.com.au, example.org.au and so on.

The move follows the successful recent releases of 2LDs in the UK (.uk) and New Zealand (.nz) ccTLDs and can be seen as a bid to remain competitive in the face of the new gTLD program’s huge expansion of TLD choice.

A consultation paper (pdf) published today reads:

It is suggested that unprecedented competition from new gTLDs requires .au to be more responsive to global market forces. For .au to remain a strong and highly-regarded TLD we need not only to rely on its distinctive Australian identity and good reputation, but continue to innovate in order to counter the likely impact of hundreds of new gTLDs flooding the market. Whilst .au is currently very popular with Australian users, there is potential for new gTLDs to erode the brand equity in .au.

Currently, .au has over a dozen different second-level options, but about 85% of registrations are in .com.au. The TLD has just shy of three million names today.

Complicating matters slightly, the different 2LDs have different registration policies, so auDA would need to figure out a way to harmonize them for direct registrations.

auDA speculates that direct registrations may increase the adoption of .au domain names by individuals not currently able to obtain .com.au names but unaware of the individual-focused .id.au (it exists, apparently), thereby growing the .au name space.

It also worries that many second-level direct registrations may turn out to be defensives, registered by the registrants of the matching .com.au names.

The consultation is open for comments until June 1.