Verisign has dramatically slashed its estimates for the number of domains in existence in its quarterly Domain Name Industry Brief reports, two of which were published this week.
The headline number for the end of the fourth quarter is 329.3 million, a 0.7% increase sequentially and a 6.8% increase annually.
But it’s actually a lower number than Verisign reported in its second-quarter report just five months ago, which was 334.6 million.
The big swinger, as you may have guessed if you track this kind of thing, was .tk, the Freenom ccTLD where names are given away for free and then reclaimed and parked by the registry when they
are deleted for abuse expire.
It seems a change in the way .tk is counted (or estimated) is the cause of the dip.
Verisign gets its gTLD data for the report from ICANN-published zone files and its ccTLD data from independent researcher Zooknic.
Problem is, Zook hasn’t had up-to-date data on .tk for a couple of years, so every DNIB published since then has been based on its December 2014 numbers.
But with the Q3 report (pdf), Zook revised its .tk estimates down by about six million names.
In earlier reports, the ccTLD was being reported at about 25 million names (exact numbers were not given), but now that’s been slashed to 18.7 million, relegating it to the second-largest ccTLD after China’s .cn, which has 21.1 million.
I’ve asked Freenom to confirm the latest numbers are correct and will update this post if I get a response.
Verisign does not say what caused the decision to scale down .tk’s numbers, but explains what happened like this:
In Q3 2016, Zooknic reported a significant decline in the .tk zone and restated the estimated zone size of .tk for each quarter from Q4 2014 through Q3 2016 using a proprietary methodology. As a result, for comparative purposes of this DNIB to the Q3 2016 DNIB and the Q4 2015 DNIB, Verisign has applied an updated estimate of the total zone size across all TLDs for Q3 2016 of 327.0 million and Q4 2015 of 307.7 million and an updated estimate of the total ccTLD zone size for Q3 2016 of 140.1 million and Q4 2015 of 138.1 million.
Apples-to-apples comparisons in the Q4 report show the ccTLD universe was up to 142.7 million names, a 1.8% sequential increase and up 3.1% on 2015. Excluding .tk, annual growth was 6.9%.
Verisign’s own .com and .net combined grew 1.7% to 142.2 million names at the end of the year, one percentage point smaller than their 2015 growth.
The full Q4 report can be read here (pdf).
ICANN has suspended OpenTLD’s ability to sell gTLD domain names for the second time, following an arbitration ruling yesterday.
OpenTLD, part of the Freenom group, will not be able to sell gTLD names or accept inbound transfers from tomorrow — about two hours from now — to November 24, according to ICANN’s web site.
That doesn’t give the company much time to make the required changes to its web site and registrar systems.
As reported earlier today, OpenTLD lost its battle to have the suspension frozen in arbitration with ICANN.
The arbitrator agreed with ICANN Compliance that the registrar cybersquatted its competitors and has not yet done enough to ensure that it does not do the same again in future.
Free domains provider OpenTLD has been dealt a crushing blow in its fight against the suspension of its Registrar Accreditation Agreement.
ICANN is now free to suspend OpenTLD’s RAA, due to the company’s “pattern of cybersquatting”, following a decision by an independent arbitrator.
The arbitrator ruled yesterday that OpenTLD’s suspension should go ahead, because “OpenTLD’s continued operation could potentially harm consumers and the public interest.”
The 90-day suspension was imposed by ICANN Compliance in June, after it became aware that OpenTLD had lost two UDRP cases filed by competing registrars.
WIPO panelists found in both cases that the company had infringed its competitors’ trademarks in order to entice resellers over to its platform.
The suspension was put on hold voluntarily by ICANN, pending the arbitrator’s ruling on OpenTLD’s request for emergency stay. That request was conclusively rejected yesterday.
The arbitrator wrote:
the Arbitrator has little doubt that the multiple abusive name registrations made by OpenTLD, each of which included the registered mark of a competing domain name registrar and OpenTLD’s subsequent use of those domains… formed part of a broad concerted effort by OpenTLD calculated to deliberately divert name registration business, otherwise destined for competing domain name registrars… away from those registrars to OpenTLD instead.
He wrote that OpenTLD needs to put a process in place to prevent similarly cybersquatty behavior in future, rather than just making a commitment to changing its ways.
It’s pretty harsh stuff.
OpenTLD said recently that a suspension would “devastate” and “decimate” its business, due to the intertwining of its massive ccTLD business and rather smaller gTLD platform, but the arbitrator thought a technology workaround would be rather simple to implement.
No RAA means no gTLD sales and no inbound transfers.
OpenTLD is part of Freenom, which runs .tk and other free-to-register ccTLDs.
The company’s only ray of sunlight in the ruling is that the arbitrator said the costs of the proceeding should be split equally, not all falling on OpenTLD’s shoulders.
ICANN has not yet re-instituted the suspension, but it could come soon.
The full ruling can be read here.
OpenTLD has fired off its newest salvo in its ongoing cybersquatting dispute with ICANN, saying the ICANN-imposed suspension would “devastate” its business.
The company has also addressed many of ICANN’s cybersquatting allegations, while failing to deny it squatted on two competitors’ trademarks.
In its latest arbitration filing (pdf), OpenTLD said: “Quite simply, the suspension of OpenTLD’s ability to offer gTLD registrations and inbound transfers would decimate its unique business model.”
ICANN had argued that the suspension of its registrar accreditation was no big deal because its gTLD domain base is measured in the low thousands, whereas the total domains under management of parent Freenom, which offers free domains in .tk and other ccTLDS, is in excess of 25 million.
But OpenTLD said the two businesses as “deeply intertwined” and separating the two would impair its ability to do business.
ICANN is pushing for the suspension because OpenTLD lost two UDRP cases earlier this year. Both were filed by competitors — Key-Systems and NetEarth — who accused the registrar of attempting to lure resellers to its platform by infringing rivals’ trademarks.
ICANN has since followed up by accusing OpenTLD of continuing to cybersquat famous brands, including Google and Facebook, even after the suspension notice was issued. These claims, as I noted last week, are very dubious, however.
In its latest filing, OpenTLD denies that any of those domains — all of which use its privacy service — were registered by itself. It goes so far as to name the actual registrants.
But it fails to deny that it was the true registrant of the Key-Systems and NetEarth domains lost in the UDRP cases.
Rather, it focuses on ICANN’s claims that it committed “cyberflight” by deleting the UDRP’d domains rather than allowing them to be transferred to the trademark owners.
It admits that the domains were deleted but said this was “inadvertent” and that it attempted to transfer them to its competitors later.
OpenTLD wants the threatened suspension stayed.
The case continues. A decision by the arbitration panel is expected August 24.
ICANN has accused OpenTLD, the registrar arm of Freenom, of cybersquatting famous brands even after it was threatened with suspension.
The claims may be worrying for some registrars as ICANN may in fact be holding the registrar responsible for the actions of its proxy service customers.
OpenTLD was suspended by ICANN in early July, after two UDRP rulings found the company had cybersquatted rival registrars’ brands in order to poach customers.
The suspension was lifted after just a few hours when OpenTLD took ICANN to arbitration under the terms of its Registrar Accreditation Agreement.
In ICANN’s latest arbitration filing, the organization’s lawyers argue that the suspension should not be stayed, because OpenTLD has been shown to engage in a pattern of cybersquatting.
Like the original suspension notice, the filing cites the two UDRP losses, along with footnotes indicating that as many as seven competing brands had been cybersquatted.
But ICANN has now also escalated its allegations to bring in non-registrar brands where it’s far from clear that OpenTLD is the actual registrant.
ICANN’s filing states:
even a brief review of the domain names in OpenTLD’s portfolio demonstrates that OpenTLD appears to be continuing to engage in bad faith and abusive registration practices. As of 3 August 2015, there were at least 73 gTLD domains registered to Stichting OpenTLD WHOIS Proxy (which is OpenTLD’s proxy service) that are identical to or contain the registered trademarks or trade names of third parties, including, by way of small example, the domain names barnesandnoble.link, sephora.bargains, at-facebook.com, ebaybh.com, googlefreeporn.com, global-paypal.com, hotmailtechnicalsupport.com, and secure-apple.com. ICANN is not aware of any legitimate interest or right that OpenTLD has to use these third-party trademarks and trade names.
Even more concerning is the fact that at least 14 gTLD domain names that contain the registered trademarks or trade names of third parties were registered by OpenTLD’s proxy service after the 23 June 2015 Suspension Notice was issued to OpenTLD, further demonstrating that OpenTLD’s overtures of “cooperation” ring hollow.
To be clear, that’s ICANN accusing OpenTLD of cybersquatting because some of the domains registered via its privacy service appear to be trademark infringements.
It’s basically equating infringing use of OpenTLD’s proxy service (such the registration of barnesandnoble.link) with the infringing behavior of OpenTLD itself (such as the registration of godaddy.cf, a February 2015 screenshot of which can be seen below.)
This may just be legal posturing, but I imagine many other registrars would be worried to know that they could have their accreditation suspended for cybersquatting simply because some of their privacy customers are cybersquatters.
I’d wager that every proxy/privacy service available has been used by blatant cybersquatters at one time or another.
Filings in the arbitration case can be found here.