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Two new gTLD registries open offices in China

Kevin Murphy, January 27, 2016, Domain Registries

Portfolio gTLD registries Famous Four Media and Minds + Machines have both announced that they’re formally entering the Chinese market.

Both companies are establishing “wholly foreign-owned enterprises” (WFOEs), a form of company that does not require local investment, on the mainland.

The moves are aimed at getting the registries’ respective gTLDs accredited by the Chinese government, something that is required before local registrants are allowed to use them.

In a press release, FFM senior legal counsel Oliver Smith said:

It was clear to us soon after launching our first domain registry that domain registrations from China comprised a strong proportion of the total. It was a natural progression of our strategy to build a physical presence in China. The accreditation process is complicated but well-structured and, thanks to the help of advice from the Chinese government, should be completed relatively quickly.

In some of Famous Four’s gTLDs, Chinese registrars are the overwhelming majority of the sales channel.

In .win, the registry’s biggest-seller, China was responsible for about 85% of registrations at the last count, for example.

Meanwhile, M+M is taking a slightly different route into the country.

It said today that while it also shortly plans to open a WFOE, it has also partnered with ZDNS, a local provider of proxy services for registries.

ZDNS was the company XYZ.com partnered with for its controversial launch into China. According to M+M, it’s also working with .CLUB Domains and some Chinese gTLD registries.

M+M is also using the specialist consultancy Allegravita for its marketing there.

Its local entity will be called Beijing Ming Zhi Mo Si Technology Company Limited (which may or may not translate to something like “Wise Mediation”).

M+M’s first Chinese launches will be .beer, .fashion, .fit, .law, .wedding, .work and .yoga, with .vip and .购物 (“.shopping”) coming later in the year.

Architelos: shadiest new gTLD is only 10% shady

Kevin Murphy, September 4, 2015, Domain Registries

Disputing the recent Blue Coat report into “shady” new gTLDs, domain security firm Architelos says that the shadiest namespace is just under 10% shady.

That’s a far cry from Blue Coat’s claim earlier this week that nine new gTLDs are 95% to 100% abusive.

Architelos shared with DI a few data points from its NameSentry service today.

NameSentry uses a metric the company calls NQI, for Namespace Quality Index, to rank TLDs by their abuse levels. NQI is basically a normalized count of abusive domains per million registered names.

According to Architelos CEO Alexa Raad, the new gTLD with the highest NQI at the end of June was .work.

Today’s NameSentry data shows that .work has a tad under 6,900 abusive domains — almost all domains found in spam, garnished with just one suspected malware site — which works out to just under 10% of the total number of domains in its zone file.

That number is pretty high — one in 10 is not a figure you want haunting your registry — but it’s a far cry from the 98.2% that Blue Coat published earlier this week.

Looking at the numbers for .science, which has over 324,000 names in its zone and 15,671 dodgy domains in NameSentry, you get a shadiness factor of 4.8%. Again, that’s a light year away from the 99.35% number published by Blue Coat.

Raad also shared data showing that hundreds of .work and .science domains are delisted from abuse feeds every day, suggesting that the registries are engaged in long games of whack-a-mole with spammers.

Blue Coat based its numbers on a sampling of 75 million attempted domain visits by its customers — whether or not they were valid domains.

Architelos, on the other hand, takes raw data feeds from numerous sources (such as SpamHaus and SURBL) and validates that the domains do actually appear in the TLD’s zone. There’s no requirement for the domain to have been visited by a customer.

In my view, that makes the NameSentry numbers a more realistic measurement of how dirty some of these new gTLDs are.

AlpNames claims to be second-largest new gTLD registrar

A little-known registrar with close ties to Famous Four Media says it is now the second-largest seller of new gTLD domains, after Go Daddy.

AlpNames said it has 500,000 new gTLD domains under management, overtaking Network Solutions into the number-two position.

Its number for February, the last month for which registry reports are available, has the registrar with a DUM of under 50,000.

The vast majority of the names it sells or gives away are in gTLDs in the Famous Four portfolio — namely .science, .party and .webcam.

It’s currently selling those for $0.49 each, a $0.24 markup on the current promotional registry fee.

Factoring out the ICANN transaction fee, AlpNames has a margin of just a few cents per name.

Previously, it has given away .science names for free.

AlpNames is Famous Four’s neighbor in Gibraltar and owns domains such as register.science, indicating a very close relationship between the two companies.

Famous Four following .sucks playbook with premium pricing for brands?

New gTLD registry Famous Four Media has slapped general availability prices of $500 and up on domain names matching famous brands.

The company plans to shortly introduce eight “premium” pricing tiers, ranging from $200 a year to $10,000 a year.

The first to launch, on July 8, will be its “brand protection tier”, which will carry a $498 registry fee.

Famous Four told its registrars that the tier “will provide an additional deterrent to cyber-squatters for well-known brands ensuring that domain names in this tier will not be eligible for price promotions”.

The gTLDs .date, .faith and .review will be first to use the tiered pricing structure.

It’s not entirely clear what brands will be a part of the $498 tier, or how the registry has compiled its list, but registrars have been given the ability to ask for their clients’ trademarks to be included.

I asked Famous Four for clarification a few days ago but have not yet had a response.

While other registries, such as Donuts, used tiered pricing for GA domains, I’m only aware of one other that puts premium prices on brands: .sucks.

Vox Populi has a trademark-heavy list of .sucks domains it calls Market Premium — formerly Sunrise Premium — that carry a $1,999-a-year registry fee.

Unlike Vox Pop, Famous Four does not appear to be planning a subsidy that would make brand-match domains available at much cheaper prices to third parties.

Famous Four’s gTLDs have seen huge growth in the last month or two, largely because it’s been selling domains at a loss.

.science, for example, has over 300,000 registrations — making it the third-largest new gTLD — because Famous Four’s registry fee has been discounted to just $0.25 from May to July.

The same discount applies to .party (over 195,000 names in its zone) and .webcam (over 60,000).

Those three gTLDs account for exactly half of the over 22,000 spam attacks that used new gTLD domains in March and April, according to Architelos’ latest abuse report.

With names available at such cheap prices, it would not be surprising if cybersquatters are abusing these gTLDs as much as the spammers.

Will intellectual property owners believe a $498+ reg fee is a useful deterrent to cybersquatting?

Or will they look upon this move as “predatory”, as they did with .sucks?

Famous Four makes $175,000 from .webcam porn names

Kevin Murphy, June 9, 2014, Domain Sales

Famous Four Media has sold a package of 15 .webcam domain names to an unspecified buyer for a total of $175,000.

The deal included tube.webcam, asian.webcam and milf.webcam, which Famous Four described as “adult oriented”.

Whois records for the domains are not yet available.

The .webcam gTLD is due to go to general availability today, alongside .bid and .trade. Together, they’re the registry’s first three gTLDs to hit GA.

It’s not an explicitly adult-oriented gTLD, but “cam” sites are a pretty big deal in the world of porn nowadays, so it’s easy to guess where .webcam will get most of its action.

The $175,000 deal — almost the full new gTLD application fee — was brokered by HuntingMoon, which specializes in adult industry names, in collaboration with Media Options and Domain Broker UK.

The deal follows hot on the heels of the $3 million sale of sex.xxx.

Applicants call for new gTLD objections appeals process

Kevin Murphy, November 6, 2013, Domain Policy

Twelve new gTLD applicants, representing many dozens of applications, have called on ICANN to create an appeals process for when Community Objections have debatable outcomes.

Writing to ICANN and the International Chamber of Commerce this week, the applicants focus on the recent decision in the .sport case, which they said proves that ICC panelists don’t fully understand the Community Objection policy as laid out in ICANN’s Applicant Guidebook.

The letter points to five “glaring errors” in the “fatally flawed” .sport decision, in which Olympics-backed applicant SportAccord prevailed over Famous Four Media’s competing application.

The signatories — which include Radix, United TLD, Donuts, Famous Four, TLDH and others — say that the ICC panelist simply assumed SportAccord represented the “sport” community and failed to pinpoint any “likelihood of material detriment” that would be caused by Famous Four’s .sport going ahead.

It seems to me that the latter arguments are much more well-founded.

While the letter tries to pick holes in the panelist’s finding that SportAccord represents enough of the “sport” community to be able to win the objection, the arguments are pretty tenuous.

The applicants use an definition of “community” found elsewhere in the Guidebook, for example, to attempt to show that the panelist failed to follow the guidelines for establishing a community in a Community Objection.

The panelist’s actual ruling uses the definition of “community” from the relevant part of the Guidebook and seems to follow it fairly closely. The applicants make a poor job of questioning his logic.

However, on “detriment”, the letter seems to be on much firmer ground.

It argues that the panelist deliberately lowered the bar from “likelihood of material detriment” to “possibility of material detriment” in order to hand SportAccord a victory.

The letter states:

If the Expert’s current logic is followed, every application, including the Objector’s own application, creates “possible” damage. In this case, an allegation of material detriment against any application would be upheld because there is future “possible” damage.

It also makes reference to the fact that the panelist appears to in many cases have been weighing the Famous Four application against SportAccord’s, which was not his job.

It reads in part: “The Expert did not identify a single objectionable or lacking aspect in the application that creates a likelihood of material detriment.”

The applicants call on ICANN to immediately create an appeals mechanism for Community Objections, and to ensure that ICC panelists are given training before making any more decisions.

Here’s the full list of signatories: Radix, United TLD, DotClub Domains, Top Level Design, Donuts, Top Level Domain Holdings, Priver Nivel, Fegistry, Employ Media, Famous Four Media, Merchant Law Group, DotStrategy.

Famous Four vows to fight .sport objection loss

Kevin Murphy, October 31, 2013, Domain Registries

Famous Four Media has promised to pursue “all available legal avenues” after losing a Community Objection over the .sport gTLD to its Olympic-backed rival.

The portfolio applicant lost out to SportAccord in an October 23 decision by International Chamber of Commerce panelist Guido Santiago Tawil, meaning its .sport application should be rejected by ICANN.

But Famous Four says it’s not over yet. In a statement today, the company said:

Famous Four Media shall pursue rigorously all available legal avenues available to it to have the decision independently reviewed by ICANN and/or others as the case may be, and reversed.

The logical first step of such a threat would be a Reconsideration Request, a relatively cheap way to challenge an ICANN decision with a virtually zero chance of succeeding.

That could be followed by a demand for an Independent Review Panel procedure, which would take much longer and cost significantly more. When ICM Registry won an IRP, the bill ran to millions.

Or Famous Four could try its luck in the courtroom, which could be flustered by the fact that all new gTLD applicants had to sign fairly one-sided legal waivers when they applied.

So what’s the company so worked up about?

It’s lost the chance to run .sport, because the ICC panelist ruled that SportAccord, which is backed by the International Olympic Committee and dozens of official sporting associations, represents the “sport” community and would be harmed if Famous Four were to run the TLD.

Famous Four had argued in its defense that SportAccord can only purport to represent a “subset” of this community — its sporting organization members — rather than everyone who has an interest in sport.

Rather amusingly, in its statement today, FFM linked to the IOC’s own marketing, which bears the slogan “Sport Belongs to All”, to prove its point:

it is Famous Four Media’s unshakable belief that this statement is true and just and that is why Famous Four Media applied for an open TLD – a top level domain that is open to everyone and offered to everyone on a level and equitable basis. Trying to claim ownership and representation of sport is akin to claiming representation for the human race.

An alternative reading would be to state that the IOC’s marketing slogan is, like all marketing slogans, bullshit.

But it actually cuts to the heart of the case itself, which Guido Santiago Tawil found in favor of SportAccord, writing:

The ICANN Guidebook does not require that an “entire” community agree on an objection to an application. In fact, it would be almost impossible for an institution to represent any community as a whole. If such was the requirement, there would be no reason to provide for the possibility of community objections.

It is difficult to imagine which other association may claim representation of the Sport Community besides an institution that represents, as Objector does, more than a hundred well-known sports federations and institutions related to sports.

Another key, and related, factor Community Objection panelists have to consider is whether a community is “clearly delineated”.

It’s here where the arguments that an applicant can use to win a Legal Rights Objection seem to fail under Community Objection scrutiny.

Famous Four said that “sport” is not clearly delineated along the lines defined by SportAccord — ie, members of its federations — because it doesn’t allow, say, hobbyists or the media to get involved.

Similar arguments were made in LROs.

Applicants regularly defended themselves against LROs — where the objector owns a trademark rather than purporting to represent a community — by pointing out all the non-infringing uses of the string.

That defense apparently doesn’t work in Community Objections, with the .sport ICC panelist ruling:

The fact that the media (which may constitute a different community) or viewers are unable to be part of this association is irrelevant to consider Objector as a delineated community. Otherwise, no community could be recognized under the ICANN gTLD proceedings since it would be easy for any Applicant to find secondary or not closed-related members outside of it.

In its response to the ruling today, FFM called this a “non sequitur”, adding:

It is not difficult to conceive of communities which are exclusive, and in all cases these do not consist of generic words like “sport.” One example already given by other commentators might be “.yorkuniversity.”

Another key pivot point in the .sport decision is “detriment”.

Objectors have to prove the “likelihood of material detriment to the rights or legitimate interests of a significant portion of the community to which the string may be explicitly or implicitly targeted.”

The panelist in this case chose to interpret this as “future ‘possible’ damage”, which he said was quite a low bar.

His reasoning, in finding that detriment to SportAccord was likely, seems to hinge quite a bit on the fact that SportAccord has also applied for the same gTLD.

While seemingly discarding “hypothetical” arguments about cybersquatting and such in an open-registration .sport gTLD, he said he “shares Objector’s argument that all domain registrations in a community-based ‘.sport’ gTLD will assure sports acceptable use policies.”

That thinking only works, I think, if you also have a community-based .sport application on the table.

As FFM characterized it today: “What he is in effect saying is that the .SPORT gTLD should be delegated: just not to dot Sport Limited. This was not his decision to make.”

This week at the newdomains.org conference in Munich I spoke to several people who believe some of the highly contested, super-premium new gTLDs will take years to resolve.

It seems that .sport is going to be one of those.

Under the ICANN rules, FFM is supposed to withdrawn its application now. That’s clearly not going to happen.

Ralph Lauren can’t have .polo, panel rules

Kevin Murphy, October 17, 2013, Domain Policy

Ralph Lauren’s application for the dot-brand .polo is likely at an end, after the International Chamber of Commerce ruled that it would infringe the rights of polo players.

The Community Objection to the gTLD was filed by the US Polo Association, the governing body of the sport in the US, and supported by the Federation of International Polo, along with seven national and 10 regional US-based polo associations.

The FIP letter was crucial in ICC panelist Burkhard Hess’ decision to find against Ralph Lauren, persuading him that there was “substantial opposition” from a “clearly delineated” polo-playing community.

The word “polo” was often used in straw man arguments when the new gTLD program and its objection mechanisms were being designed. Who gets .polo? Ralph Lauren? Volkswagen? Nestle? The sport?

Well, now we know: according to the ICC, the sport will probably trump any dot-brand.

The precedent might be bad news for Donuts and Famous Four Media, which are facing Community Objections from the international governing bodies of rugby and basketball on .rugby and .basketball.

However, none of those applications are for dot-brand spaces.

Under the Community Objection rules, the objector has to show that the gTLD would harm its interests is delegated.

In the case of .polo, the panelist found detriment largely due to the fact that Ralph Lauren’s plan was for a single-registrant space from which the sports associations would be excluded.

With open, unrestricted .basketball and .rugby applications, it’s likely to be much harder for the objectors to prove that the gTLDs would damage the sport.

Famous Four says that Demand Media’s .cam should be rejected

Kevin Murphy, September 6, 2013, Domain Policy

Demand Media’s application for .cam should be rejected because it lost a String Confusion Objection filed by .com registry Verisign, according to rival applicant Famous Four Media.

“The process in the applicant guidebook is now clear: AC Webconnecting and dot Agency Limited proceed to resolve the contention set, and United TLD’s application cannot proceed,” chief legal officer Peter Young told DI.

dot Agency is Famous Four’s applicant for .cam, which along with AC Webconnecting survived identical challenges filed by Verisign. United TLD is the applicant subsidiary of Demand Media.

Serious questions were raised about the SCO process after two International Centre for Dispute Resolution panelists reached opposition conclusions in the three .cam/.com cases last month.

Demand Media subsequently called for an ICANN investigation into the process, with vice president Statton Hammock writing:

String confusion objections are meant to be applicant agnostic and have nothing to do with the registration or use of the new gTLD.

However, Famous Four thinks it has found a gotcha in a letter (pdf) written by a lawyer representing Demand which opposed consolidation of the three .cam cases, which stated:

Consolidation has the potential to prejudice the Applicants if all Applicants’ arguments are evaluated collectively, without regard to each Applicant’s unique plan for the .cam gTLD and their arguments articulating why such plans would not cause confusion.

In other words, Demand argued that the proposed usage of the TLD should be taken into account before the ICDR panel ruled against it, and now it saying usage should not have been taken into account.

Famous Four’s Young said:

Whether or not one ascribes to the view that usage should not be taken into account, and we believe that it should (otherwise we would not have argued it), the fact is that United TLD were very explicit prior to the publication that usage should indeed be taken into account.

The SCO debate expanded yesterday when the GNSO Council spent some time discussing .cam and other SCO discrepancies during its regular monthly meeting.

Concerns are such that the Council intends to inform the ICANN board of directors and its New gTLD Program Committee that it is looking into the issue.

The NGPC, has “Update on String Similarity” on its agenda for a meeting on Tuesday, which will no doubt try to figure out what, if anything, needs to be done.

Uniregistry wins .gift and AOL yanks .patch bid

Kevin Murphy, August 16, 2013, Domain Registries

Three more new gTLD applications were withdrawn today, only one of which was related to this week’s previously reported batch of private auctions.

First, Famous Four Media has pulled out of the .gift race with Uniregistry, presumably after some kind of deal. They were the only two applicants, meaning Uniregistry wins the contention set.

Potentially complicating matters, there are also two applicants for .gifts — if the plural/singular debate is reopened, which seems possible after today’s events, it might not be over yet.

Second, AOL withdrew its application for .patch, which was to be a single-registrant space for its Patch-branded network of local web sites.

This seems to be connected to cost-cutting at AOL.

Last week, the company fired Patch’s creative director in front of 1,000 colleagues and announced it was cutting the number of sites in the network.

Today, it started laying off almost half of Patch’s 1,100 employees, according to the Wall Street Journal.

Third, Top Level Domain Holdings withdrew from the .guide contention set, leaving Donuts the winner — a formality following this week’s Innovative Auctions auction, which it lost.