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MarkMonitor tells .feedback to take a hike after “breach” claim

Kevin Murphy, April 25, 2017, Domain Registrars

MarkMonitor is to voluntarily terminate its registrar relationship with Top Level Spectrum after the .feedback registry hit it with a breach of contract notice.

Troy Fuhriman, director of domain management at the registrar, told DI today that the company has just sent TLS a letter stating that it no longer wishes to sell .feedback names.

TLS earlier this month accused MarkMonitor of breaking the terms of its Registry-Registrar Agreements by leaking details of that agreement to media outlets including yours truly.

While TLS CEO Jay Westerdal told DI that an apology from MarkMonitor would be enough to make the termination threat go away, MarkMonitor has clearly decided against that route.

“We’re going to terminate all accreditation agreements for .feedback,” he said. “In part it’s a response to ICANN’s finding that Top Level Spectrum violated its Pubic Interest Commitments, and what we believe is a retaliatory breach notification from them.”

MarkMonitor and a small posse of high-profile clients including Facebook recently won a Public Interest Commitment Dispute Resolution Policy complaint against .feedback, related to the transparency of its launch policies and pricing.

It was in that complaint that MarkMonitor released details contained in the RRA that TLS deemed to be confidential.

Terminating the agreement means that MarkMonitor will no longer be able to sell .feedback names as a registrar and will have to transfer its existing registrations to a different registrar.

Not many clients are affected. MarkMonitor had only 45 .feedback domains under management at the last count (which was still enough to make it the fourth-largest independent .feedback registrar).

Most of these domains will be moved to 101domain, which with fewer than 200 domains is still the leading .feedback registrar.

UPDATE: Westerdal says that MarkMonitor was in fact terminated on Monday. Neither party claims that MarkMonitor made any effort to comply with the breach notice by apologizing.

.feedback threatens to shut off MarkMonitor

Top Level Spectrum, the controversial .feedback gTLD registry, has threatened to de-accredit MarkMonitor unless it apologizes for “breaching” its registrar contract.

The move is evidently retaliation for the MarkMonitor-coordinated complaint about .feedback’s launch policies, which last month led to TLS being found in breach of its own ICANN contract.

De-accreditation would mean MarkMonitor would not be able to sell .feedback domains any more, and its .feedback names would be transferred to another registrar.

In a letter to MarkMonitor (pdf) yesterday, TLS informs the registrar that it breached its Registry-Registrar Agreement by releasing said RRA to “the press” as part of the exhibits to its Public Interest Commitments Dispute Resolution Policy complaint.

The problem we take issue with is that your exhibit should have redacted the “Confidential RRA Agreement” prior to being handed over to ” the press ” and it should have been marked in an appropriate way so ICANN would not publicly disclose it. As we can tell no precautions were taken and as a party to the action we find that you violated the confidentiality of the agreement.

I understand “the press” in this case includes DI and others. We published the document last October. We were not asked to keep anything confidential.

The RRA section of the document is marked as “private and confidential” and contains terms forbidding the disclosure of such information, but the name of the registrar is redacted.

TLS believes the undisclosed registrar is actually Facebook, a MarkMonitor client and one of the several parties to the PICDRP complaint against .feedback.

While Facebook may not have actually signed the RRA, MarkMonitor certainly did and therefore should not have released the document, TLS says.

The letter concludes that the “breach… seems incurable” and says: “Please let us know what actions you will take to cure this breach with us or we will have no other option but to de-accredited your Registrars.”

Despite this, TLS CEO Jay Westerdal tells us that an apology will be enough to cure the alleged breach.

The threat is reminiscent of a move pulled by Vox Populi, the .sucks registry, last year. Vox deaccredited MarkMonitor rival Com Laude in June for allegedly leaking a confidential document to DI (I was never able to locate or identify the allegedly leaked document, and had not published any document marked as confidential).

TLS was found in breach of the Public Interest Commitments in its ICANN contract last month by a PICDRP panel. It was the first registry to suffer such a loss.

The PICDRP panel found that .feedback’s launch had not been conducted in a transparent way, but it stopped short of addressing MarkMonitor’s complaints about “fraudulent” behavior.

Facebook, under Chinese court threat, transfers Instagram.com to its new registrar

Kevin Murphy, April 19, 2016, Domain Registrars

It’s not quite cyberflight, but Facebook has transferred threatened domain name instagram.com to its newly acquired in-house registrar.

Whois records show that the domain, used for the popular photo-sharing social network, was moved from MarkMonitor to RegistrarSEC yesterday.

It emerged on Friday that Facebook had recently acquired RegistrarSEC.

So why the transfer?

It does not appear that the move is part of a wholesale transfer of domains — facebook.com, whatsapp.com, fb.com and all the other Facebook domains I checked are still with MarkMonitor.

Instead, I would speculate that it’s related to the lawsuit in China in which the family of a deceased cybersquatter are fighting for the return of the domain to their ownership.

Instagram acquired the name for $100,000 from the Guangdong-based Zhou family in January 2011, just a couple of months after Zhou Weiming, the now deceased patriarch, bought it from an American domainer.

According to a lawsuit (pdf) filed against the family in California by Instagram this January, Zhou’s widow and two daughters are suing the third daughter in a Chinese court for selling the domain without the proper authority.

They want the domain returned to them.

By transferring instagram.com to a registrar completely controlled by Facebook, the company has removed one huge risk factor from the Chinese lawsuit.

If MarkMonitor were to be served with a Chinese court order ordering the transfer of the domain to the Zhous, and it were to comply, the Instagram service used by millions could be held hostage by a group of known cybersquatters.

Now that the domain is at RegistrarSEC, Facebook gets the ability to refuse to comply with any such order.

This all begs the question of whether the deep-pocketed social network would go to the trouble of acquiring a registrar (with only 11 names to its accreditation) purely to provide a layer of insurance.

A fresh ICANN accreditation would be cheaper, but would take longer, and transferring to a different third-party registrar wouldn’t really solve the problem.

Instagram is predicted by one analyst to provide Facebook with $5.8 billion in annual revenue by the end of the decade.

Facebook bought a registrar

Kevin Murphy, April 14, 2016, Domain Services

Facebook has acquired a domain name registrar, according to its point person in ICANN.

Facebook domain manager Susan Kawaguchi said on tonight’s GNSO Council teleconference, as a matter of disclosure, that Facebook recently acquired a registrar.

Multiple sources say the registrar is RegistrarSEC LLC.

DI records show that RegistrarSEC took over the ICANN registrar accreditation of Focus IP Inc, doing business as AppDetex, on March 26.

RegistrarSEC is led by one of the long-gone founders of brand protection registrar MarkMonitor, Faisal Shah, and Chris Bura, founder of Alldomains.com.

Facebook is one of MarkMonitor’s most prominent clients.

RegistrarSEC is not a conventional registrar. It had just 11 registrations under its IANA ID at the end of 2015.

But its parent was founded in 2013 as primarily a provider of brand protection services focused on the mobile app space.

My guess is that Facebook is interested in RegistrarSEC’s parent’s intellectual property, rather than its registrar.

Instagram paid Chinese cyberquatter $100,000 for instagram.com, Facebook lawsuit reveals

Kevin Murphy, January 20, 2016, Domain Sales

Facebook has sued a Chinese cybersquatter for trying to renege on a five-year-old deal that saw it buy the domain instagram.com for $100,000.

The lawsuit, filed in California last week, claims that a family of known cybersquatters, based in Guangdong, is trying to have the purchase invalidated by a Chinese court.

The company, which acquired Instagram for $1 billion in 2012, wants the court to rule that the domain deal was legal, preventing the cybersquatters retaking control of the domain.

Photo-sharing app Instagram launched in October 2010 using the domain instagr.am.

At that time, instagram.com was owned by a US-based domain investor, but it was bought by Zhou Weiming about a month later.

Zhou, Facebook says, was the now-dead father of three of the people it is suing, and the husband of the fourth.

When Zhou purchased the domain, Instagram had become wildly popular, well on the way to hitting the million-user mark in December 2010.

Instagram had applied for the US trademark on its name in September 2010, less than a month before its launch.

The company made the decision to pay $100,000 for the domain in January 2011.

The Whois information for instagram.com changed from Zhou Weiming to Zhou Murong, apparently his daughter, around about the same time, though the registrant email address did not change.

The purchase was processed by Sedo, according to a copy of the deal filed as evidence (pdf).

Now, Murong’s mother and sisters are suing her and Instagram in China, claiming she did not have the authority to sell the domain, according to Facebook’s complaint.

Facebook claims the Chinese suit is a “sham” and that the whole Zhou family is acting in concert.

The company wants the California court to declare that the sale was valid, and that registrar MarkMonitor should not be forced to transfer the domain back to the Zhous.

Facebook in 2014 won a 22-domain UDRP case against Murong Zhou, related to typos of its Instagram trademark.

Read the full California complaint as a PDF here.