GlobalBlock blocking 2.5 million domains

GoDaddy-led brand protection project GlobalBlock says it is already blocking over 2.5 million domains, just a couple of weeks after its formal launch.

The GlobalBlock web site reports that 2,569,815 domains are currently being blocked across 559 extensions (a mix of ccTLDs, gTLDs, third-level domains and blockchain names), for an average of just under 4,600 per extension.

It’s difficult to extrapolate much useful information about rapid market demand for the service from this one number, for a variety of reasons.

First, the more-expensive GlobalBlock+ service can block well north of 10,000 domains, mostly homographic variants of a trademark, for a single fee, which could mean as few as just a couple hundred customers have signed up so far at the most pessimistic interpretation.

Second, GlobalBlock offered pricing incentives to existing customers of GoDaddy’s AdultBlock and Identity Digital’s Domain Protected Marks List, both of which are over a decade old, in the months-long run-up to launch.

The vanilla, single-brand GlobalBlock service retails for about $6,000 per year, with GlobalBlock+ going for closer to $9,000.

Another single-TLD brand protection service planned

BestTLD is planning to introduce a trademark-blocking service covering its single new gTLD, .best.

The company has asked ICANN for permission to launch what it calls the Best Protection service, which would provide domain blocks in lieu of defensive registrations in .best.

The service is similar to Donuts’ Domain Protected Marks List and other industry offerings, but is perhaps most comparable to the Trademark Sentry offering .CLUB Domains came up with a few years ago.

While DPML lets brands block their marks as domains across Donuts’ entire stable of almost 300 TLDs, BestTLD’s offering, like .CLUB’s, focuses instead on blocking marks as a substring in a single TLD.

In other words, Facebook could subscribe to the service for the string “facebook” and it would block domains such as “facebook-login.best”.

A good thing about such services from a registry’s perspective is that, unlike domains, the same string can be sold multiple times to different owners of the same trademarked string.

The registry has filed a Registry Services Evaluation Process request with ICANN and said it is ready to launch with back-end provider CentralNic whenever it gets approval.

Pricing was not disclosed, but if .CLUB’s $2,000 tag is any guide one might expect a super-premium fee.

Regular .best domains sell for about $20 a year and over 30,000 have been registered to date.

Three gTLDs to lose Donuts trademark protection

Three gTLDs are set to lose the trademark protection coverage at the end of the month, following their sale from Donuts to Public Interest Registry.

As noted by corporate registrar Com Laude recently, .charity, .gives and .foundation will no longer fall under Donuts’ Domain Protected Marks List service as of June 1.

DPML is a blocking services whereby the registry reserves trademarked strings across its whole portfolio of almost 300 gTLDs in exchange for a fee that is a big discount on defensive registrations.

gTLDs not in the portfolio will naturally enough no longer qualify, but Com Laude reported that existing subscriptions will be honored and PIR will offer DPML users the chance to change to a full registration.

Donuts announced the sale of the three TLDs to PIR last December.

PIR doesn’t have its own DPML equivalent. Its portfolio is small and its biggest deal is .org, where the defensive blocking horse bolted decades ago.

Donuts boss discusses shock Afilias deal

Afilias is to spin off its registrar business and also its contested application for the .web gTLD, following its acquisition by Donuts, according to Donuts CEO Akram Atallah.

Speaking to DI last night, Atallah explained a little about how the deal, which creates a registry with about 450 strings under management, came about.

Rather than a straightforward bilateral negotiation, is seems like Afilias was shopping itself around for a buyer. Several companies were invited to bid, and Donuts won. Atallah said he does not know how many, or which, bidders Donuts was competing against.

Afilias was making over $100 million a year in revenue last time its accounts were published in 2017, but its largest gTLDs are in decline and it took a big hit when Public Interest Registry renegotiated its back-end contract for .org in 2018.

The acquisition, the value of which has not been disclosed, does not include Afilias’ registrar or mobile businesses, which Atallah said will be spun off.

He also revealed that the deal does not include Afilias’ .web gTLD application, which came second in an ICANN auction won by a Verisign-backed bidder a few years back.

Afilias is currently waiting for the results of an Independent Review Process case that seeks to overturn the winning $135 million bid and award the potentially lucrative gTLD to Afilias. The case was heard in August and a decision is surely not many months away.

What the deal does include are all of Afilias’ registry assets, including its owned gTLDs and its back-end service provider contracts.

I asked Atallah what the plans are for migrating or integrating the two registry platforms. While Afilias runs its own data centers, Donuts migrated its registry to Amazon’s AWS cloud service earlier this year.

“We have to make sure whatever we do is as painless as possible to our registrar channel and partners,” he said. “We believe that at least on the new gTLDs that they have it will probably be easier for us to move them to our back-end, which is on the cloud already… We’ll probably do that fairly quickly.”

“But remember they have other registries and ccTLDs that don’t own that they run on their back-end, so there’ll be business issues and negotiations there to see what we can do there,” he added.

While he’s not expecting anyone to notice any big changes immediately, Atallah said that over time features such as the companies’ different EPP commands will be merged, and that valued-added services will start to cross-pollinate.

“All of the features we have on our TLDs will migrate to their TLDs and vice versa,” he said.

That means things like the Domain Protected Marks List, a defensive registration service for trademark owners, will start to show up in Afilias gTLDs before long, he said.

I asked about the possibility of layoffs, something that is no doubt worrying staff at both companies right now and seems quite possible given the move to the cloud, but Atallah said it was too early to say. Nothing will change until the deal closes at the end of the year, he said.

“Once we actually close, we’ll sit down with the management of the Afilias registry team and look at all the different assets that we have and try to pick the best in class in technology and services,” he said.

Having seen some mutterings about competition concerns, I put that question to Atallah. He laughed it away, pointing out that, even combined with Afilias, Donuts will have fewer than 15 million domains under management.

Donuts rolls out free phishing attack protection for all registrants

Donuts is offering registrants of domains in its suite of new gTLDs free protection from homograph-based phishing attacks.

These are the attacks where a a bad guy registers a domain name visually similar or identical to an existing domain, with one or more characters replaced with an identical character in a different script.

An example would be xn--ggle-0nda.com, which can display in browser address bars as “gοοgle.com”, despite having two Cyrillic characters that look like the letter O.

These domains are then used in phishing attacks, with bad actors attempting to farm passwords from unsuspecting victims.

Under Donuts’ new service, called TrueNames, such homographs would be blocked at the registry level at point of sale at no extra cost.

Donuts said earlier this year that it intended to apply this technology to all current and future registrations across its 250-odd TLDs.

The company has been testing the system at its registrar, Name.com, and reckons the TrueNames branding in the shopping cart can lead to increased conversions and bigger sales of add-on services.

It now wants other registrars to sign up to the offering.

It’s not Donuts’ first foray into this space. Its trademark-protection service, Domain Protected Marks List, which has about 3,500 brands in it, has had homograph protection for a few years.

But now it appears it will be free for all customers, not just deep-pocketed defensive registrants.

Brand-blocking service plotted for porn gTLDs

MMX wants to offer a new service for trademark owners worried about cybersquatting in its four porn-themed gTLDs.
The proposed Adult Block Services would be similar to Donuts’ groundbreaking Domain Protected Marks List and the recent Trademark Sentry offering from .CLUB Domains.
The service would enable big brands to block their marks from registration across all four TLDs for less than the price of individual defensive registrations.
Prices have not been disclosed, but a more-expensive “Plus” version would also allow the blocking of variants such as typos. The registry told ICANN:

The Adult Block Services will be offered as a chance for trademark owners to quickly and easily make labels unavailable for registration in our TLDs. For those trademark owners registering domain names as a defensive measure only, the Adult Block Services offer an easy, definitive, and cost-effective method for achieving their goals by offering at-a-stroke protection for TLDs included in the program. The Adult Block Services are similar to the Donuts’ DPML, Uniregistry’s EP and EP Plus and the .Club UNBS and should be immediately understood and accepted by the trademark community.
The Adult Block will allow trademark owners to block unregistered labels in our TLDs that directly match their trademarks. The Adult Block Plus will allow trademark owners to block unregistered, confusingly similar variations of their trademarks in our TLDs.

It seems more akin to DPML, and Uniregistry’s recently launched clone, than to .CLUB’s forthcoming single-TLD offering.
The Registry Service Evaluation Process request was filed by ICM Registry, which was acquired by MMX last year.
It only covers the four porn gTLDs that ICM originally ran, and not any of the other 22 gTLDs managed by MMX (aka Minds + Machines).
This will certainly make the service appear less attractive to the IP community than something like DPML, which covers Donuts stable of 242 TLDs.
While there’s no public data about how successful blocking services have been, anecdotally I’m told they’re quite popular.
What we do have data on is how popular the ICM gTLDs have been in sunrise periods, where trademark owners showed up in higher-than-usual numbers to defensively register their marks.
.porn, .adult and .sex garnered about 2,000 sunrise regs each, more than 20 times the average for a new gTLD, making them three of the top four most-subscribed sunrise periods.
Almost one in five of the currently registered domains in each of these TLDs is likely to be a sunrise defensive.
Now that sunrise is long gone, there may be an appetite in the trademark community for less-expensive blocks.
But there have been calls for the industry to unify and offer blocking services to cover all gTLDs.
The brand-protection registrar Com Laude recently wrote:

What brands really need is for registry operators to come together and offer a universal, truly global block that applies across all the open registries and at a reasonable price that a trademark owner with multiple brands can afford.

Quite how that would happen across over 1,200 gTLDs is a bit of a mystery, unless ICANN forced such a service upon them.

.CLUB to let brands block “trillions” of domains for $2,000

.CLUB Domains has launched a service for trademark owners that will enable them to block an essentially infinite number of potential cybersquats for a $2,000 payment every three years.
But the restrictions in place to avoid false positives mean that some of the world’s most recognizable brands would not be eligible to use it.
The service is called Trademark Sentry. In February, .CLUB asked ICANN for approval to launch it under the name Unlimited Name Blocking Service.
It’s cast by the registry roughly as a kind of clone of Donuts’ five-year-old Domain Protected Marks List, which enables brands to block their marks across Donuts’ entire portfolio of 242 gTLDs for far less than they would pay defensively registering 242 domains individually.
But while Donuts has a massive stable of TLDs, .CLUB is a one-horse town, so what’s going on?
Based on promotional materials .CLUB sent me, it appears that Trademark Sentry is primarily a way to reduce not defensive registration costs but rather UDRP costs.
Instead of blocking a single trademarked string across a broad portfolio of TLDs — for example google.ninja, google.bike, google.guru, google.charity… — the .CLUB service allows brands to block any domain that contains that string in a single TLD.
For example, Google could pay .CLUB $2,000, and for the next three years it would be impossible for anyone to register any .club domain that contained the substring “google”.
Any potential cybersquatter who went to a registrar and tried to register domains such as “mygooglesearch.club” or “googlefootball.club” or “bestgoogle.club” or “xreegtegooglefwrreed.club” would be told by the registrar that the domain was unavailable.
It would be blocked at the registry level, because it contained the blocked string “google”.
Customers will be able to add typos to the blocklist for a 50% discount.
To the best of my knowledge, this is not a service currently offered by any other gTLD registry.
It’s precisely the kind of thing that the IP lobby at ICANN was crying out for — albeit without the obligation to pay for it — prior to the 2012 application round.
.CLUB reckons it’s a money-saver for brand owners who find themselves filing lots of UDRP complaints.
UDRP complaints cost at least $1,500, just for the filing fees with outfits such as WIPO. They can cost many hundreds more in lawyers fees.
Basically, if you expect your brand will be hit by at least one UDRP in .club in the next three years, $2,000 might look like a decent investment.
.club domains have been subject to 279 UDRP complaints over the last five years, according to UDRPSearch.com.
But .CLUB has put in place a number of restrictions that are likely to seriously restrict its potential customer base.
First, the trademark will have to be “fanciful”. The registry says:

To qualify for Unlimited Name Blocking a trademark must be fanciful as defined by the USPTO and meet the .CLUB Registry’s additional requirements and subject to the .CLUB Registry’s discretion. Marks that are not fanciful but when combined with another word become sufficiently unique may be allowed.

“Apple” would not be permitted, but “AppleComputer” might be.
.CLUB told me that any trademark that, if blocked, would prevent non-infringing uses of the string would also not qualify for the service.
If you look at a UDRP-happy brand like Lego, which has already filed several complaints about alleged cybersquats in .club, it would certainly not qualify. Too many words end in “le” and begin with “go” for .CLUB to block every domain containing “lego”.
Similarly, Facebook would likely not qualify because one can imagine non-infringing uses such as facetofacebookmakers.club. Twitter is a dictionary word, as is Coke. Pepsi is a substring of dyspepsia. Amazon is primarily a geographic term. McDonald’s is derived from a common surname, as are Cartier and Heinz.
For at least half of the famous brands that pop into my head, I can think of a reason they will probably not be allowed to use this service.
.CLUB also won’t allow trademarks shorter than five characters.
Still, for those brands that do qualify, and do have an aggressive UDRP-based enforcement policy, the service seems to be priced at a point where an ROI case can be made.
Like Donuts’ DPML domains, anything blocked under Trademark Sentry is not going to show up in zone files, so we’re not going to have any objective data with which to monitor its success.

.london disaster leads to mixed 2018 for MMX

New gTLD registry MMX, aka Minds + Machines, suffered a huge net loss in 2018, largely due to its disastrous .london contract, even while its operating fundamentals improved.
For the year, MMX reported a net loss of $12.6 million, compared to a 2017 profits of $3.8 million, on revenue up 5% to $15.1 million.
The loss was almost entirely attributable to charges related to an “onerous contract” with one of its partners.
MMX has never disclosed the identity of this partner, but the only outfit that fits the profile is London & Partners, the agency with which MMX partnered to launch .london several years ago.
The registry, expecting big things from the geo-TLD, promised to pay L&P millions over the term of the contract, which expires in 2021.
But it’s been a bit of a damp squib compared to former management’s expectations, peaking at about 86,000 regs last year and shrinking ever since.
MMX says the estimated gap between the minimum revenue guarantee payable to L&P and the expected revenue is expected to bring in before 2021, is $7.2 million.
It’s recorded this as a charge on its income statement accordingly, along with another $4.2 million impairment charge related to the same contract.
The company recorded a $7.7 million accounting charge related to this contract in 2016, too.
The company says that to date it has lost about $13.7 million on the deal.
These charges, along with a few other smaller one-off expenses, were enough to push the company into the black for 2018.
But other key performance indicators showed more promise, helped along by the acquisition last year of porn-themed registry operator ICM Register, best-known for .xxx.
Notably, renewal revenue almost doubled, up 97% to $9.4 million.
Domains under management was up 37% to 1.81 million.
Operating EBITDA was $3.6 million, up 12.5%.
Looking ahead, MMX said billings for the first quarter are expected to be up 246%, due to the first impact of the ICM acquisition.
It also said it closed $500,000 of sales in .law in China in March. That would work out to over 5,000 domains, based on the retail price of about $100 a year, but those domains have yet to show up in the .law zone file, which only grew by about 200 domains last month.
MMX said it is planning to launch “a high-value defensive registration product” for corporate registrars by the third quarter.
If I had to guess, I’d say that is probably a clone of Donuts’ Domain Protected Marks List service, which offers trademark owners deep discounts when they defensively block strings across the whole Donuts gTLD portfolio.
It’s a model copied by other registries, including recently Uniregistry.

Uniregistry working on bulk trademark blocking service

Uniregistry is planning to launch a bulk trademark block service, along the same lines as Donuts’ Domain Protected Marks List.
But it’s going to be roughly 50% more expensive than DPML, on a per-TLD basis.
The company has applied to ICANN to run what it calls “Uni EP” across its whole portfolio of 26 gTLDs.
Uni EP would be “largely identical” to DPML, according to Uniregistry’s Registry Service Evaluation Requests.
This means that anyone who has their trademark registered in the Trademark Clearinghouse will be able to block the matching string in all of Uniregistry’s TLDs.
Nobody else would be able to register that mark unless they also had a TMCH-validated trademark for the same string.
The pricing would be lower than if the brand owner individually defensively registered in each of the 26 TLDs.
With Donuts, which manages a portfolio almost 10 times as large, DPML tends to be priced around the $6,000 mark retail for a five-year block. That works to about $5 per TLD per year.
Uniregistry CEO Frank Schilling said Uni EP could be priced as low as $200 per year. That would work out to about $7.70 per TLD.
The relatively higher pricing might make sense when you consider the larger variation in regular pricing for Uniregistry TLDs, compared to Donuts.
It has several that retail for around $100 a year, and three — .cars, .car and .auto — that sell for close to $3,000 a year.
Still, the Uni EP price is obviously going to be a lot cheaper than regular defensive registrations.
Companies that have already purchased defensively would get to add their domains to the block service after the current registration expires, the RSEP states.
Like DPML, Uni EP would also have a “Plus” version, in which confusingly similar strings in eight scripts would also be blocked.
Uniregistry says it consulted with three brand protection registrars — CSC, MarkMonitor and Safenames — about the service and that their reactions were “favorable”.
Uniregistry’s current portfolio comprises .country, .audio, .car, .blackFriday, .auto, .cars, .christmas, .click, .diet, .flowers, .game, .gift, .guitars, .help, .hiphop, .hiv, .hosting, .juegos, .link, .lol, .mom, .photo, .pics, .property, .sexy, and .tattoo.

Donuts says DPML now covers “millions” of trademark variants as price rockets again

Donuts has added more than a third to the price of its Domain Protected Marks List service, as it adds a new feature it says vastly increases the number of domains trademark owners can block.
The company has added homograph attack protection to DPML, so trademark-owning worrywarts can block variations of their brand that contain confusing non-Latin characters in addition to all the domain variants DPML already takes out of the available pool.
An example of a homograph, offered by Donuts, would be the domain xn--ggle-0nda.com, which can display as “gοοgle.com” and which contains two Cyrillic o-looking characters but is pretty much indistinguishable from “google.com”.
Donuts reckons this could mean “millions” of domains could be blocked, potentially preventing all kinds of phishing attacks, but one suspects the actual number per customer rather depends on how many potentially confusable Latin characters appear in the brands they want to protect.
DPML is a block service that prevents others from registering domains matching or closely matching customers’ trademarks. Previous additions to the service have included typo protection.
The new feature supports Cyrillic and Greek scripts, the two that Donuts says most homograph attacks use.
The company explained it to its registrars like this:

The Donuts system will analyze the content of each SLD identified in a DPML subscription, breaking it down to its individual characters. Each character is then “spun” against Unicode’s list of confusable characters and replaced with all viable IDN “glyphs” supported by Donuts TLDs. This spinning results in potentially millions of IDN permutations of a brand’s trademark which may be considered easily confusable to an end user. Each permutation is then blocked (removed from generally available inventory) just like other DPML labels, meaning it can only be registered via an “Override” by a party holding a trademark on the same label.

While this feature comes at no additional cost, Donuts is increasing its prices from January 1, the second big increase since DPML went live five years ago.
Donuts declined to disclose its wholesale price when asked, but I’ve seen registrars today disclose new pricing of $6,000 to $6,600 for a five-year block.
That compares to retail pricing in the $2,500 to $3,000 range back in 2013.
Hexonet said it will now charge its top-flight resellers $6,426 per create, compared to the $4,400 it started charging when DPML prices last went up at the start of last year. OpenProvider has also added two grand to its prices.
Donuts said the price increase also reflects the growth of its portfolio of gTLDs over the last few years. It now has 241, 25% more than at the last price increase.