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ICA will help you support .com price increases (but doesn’t want you to)

Kevin Murphy, February 10, 2020, Domain Registries

The Internet Commerce Association has released a new version of its semi-automated commenting tool, making it a bit easier for domainers and others to complain to ICANN about the proposed .com price increases.

Surprisingly, the tool will also help you file a comment in support of Verisign’s 7%-a-year price-raising powers, though obviously ICA would prefer you do not.

The tool is based on the one ICA launched last year when Public Interest Registry was due to get its .org price caps lifted by ICANN, but ICA general counsel Zak Muscovitch says that it’s been refined following feedback.

It allows users to identify what kind of registrant they are (domainer, end user, or just concerned netizen) and select from several options to create pre-written comments that reflect their own views. They can also enter their own free text before hitting submit.

One of the options is “I support the proposed price increase which allows for a 31% price increase through 2024”, but I can’t imagine anyone apart from Verisign staff and shareholders checking that particular box.

The .org version of the tool caused a bit of a stir last year after ICANN’s Ombudsman compared submissions made through it to “spam”. He caught some flak for that.

Muscovitch tells DI that it’s not just domainers using the service. Some registrars are directly contacting their customers to encourage them to submit comments, he said, so the views of “the public at large” are being reflected.

At the time of publication about 350 comments have been submitted, more than half of which appear to have originated via the ICA tool.

The public comment period closes February 14.

If you don’t fancy using the ICA tool, submitting a comment directly to ICANN doesn’t appear to be particularly difficult. You simply go here, click the “Submit Comment” button, and ICANN will open up your mail client’s compose window with the appropriate address pre-populated.

Perhaps predictably, I remain skeptical that this kind of thing will have any impact on ICANN’s decision to approve a contract it spent a year negotiating.

But it can’t hurt, right? After all, the reason Verisign only gets to raise prices in four out of six years is because so many people complained about the much more expansive proposed powers back in 2006, and ICANN is still reeling from the outrage over .org…

I attempt to answer ICA’s questions about the “terrible blunder” .org acquisition

Kevin Murphy, November 19, 2019, Domain Policy

The Internet Commerce Association launched a withering attack on ICANN late last week, accusing the organization of a “terrible blunder” by lifting pricing restrictions on .org domain names.

As by now you’re no doubt aware, .org manager Public Interest Registry was acquired last week by a private equity firm with ties to ICANN’s former CEO, in a deal likely to have delivered hundreds of millions of dollars, if not more, to former owner the Internet Society.

The deal means PIR is now almost certain to exercise its newfound right to raise its prices arbitrarily, adding tens of millions to its annual top line at the expense of .org registrants.

While such a price increase is likely to have little impact on most registrants — an annual increase of even 100% would only add about $10 to the per-domain cost — it would certainly prove onerous to many of the high-volume domain investors ICA represents.

So ICA chief Zak Muscovitch whipped off a letter to ICANN (pdf) on Friday, demanding that ICANN use its contractual powers to terminate PIR’s registry agreement and put .org out for open tender. He wrote:

If you were led to believe that removing price caps on .Org domain names was a sound approach because the registry would remain in the hands of a nonprofit foundation, you have clearly been misled. If you were led to believe that despite being the effective owner of the .org registry, you were somehow forced to let your service providers tell you how much they can charge, instead of the other way around, you have been led astray. If you have been told that .Org does not have market power within the nonprofit sector, you have been led astray. If you have been told that competition from other gTLDs will constrain .org prices, you have been led astray.

I think the letter has about as much chance of working as an ice sculptor in hell, but Muscovitch does include a list of seven questions for ICANN that I’m going to attempt to answer to the best of my ability here.

First, he asks:

Were you aware whether ISOC was in talks to sell the registry when you approved the removal of the price caps?

I put the same question to PIR CEO Jon Nevett last week, and he told me: “I don’t know when the talks started with ISOC and the buyer, but neither ICANN nor PIR knew about it when finalizing the .ORG [Registry Agreement].”

I’ve no particular reason to believe he’s lying.

If ISOC was in such talks at that time, why was this material fact not disclosed to you by the registry operator, prior to you approving the renewal agreement?

The acquisition talks between ISOC and Ethos Capital certainly could have been going on prior to the .org contract being signed, which happened June 30 this year.

The main piece of evidence here is that Fadi Chehadé of private equity firm and presumed Ethos affiliate Abry Partners registered the domain ethoscapital.org on May 7, according to Whois records. A company of the same name was formed in Delaware a week later.

Given that Ethos appears to be an Abry vehicle set up purely to acquire PIR, it seems likely that talks were already underway at this point.

The domain ethoscapital.com, which Ethos is currently using as its primary, seems to have been acquired on the secondary market around August. The acquisition was announced November 13.

To Muscovitch’s question, though, I return to Nevett’s line that PIR knew nothing about the acquisition talks before the RA was finalized.

The RA was finalized and opened to public comment in March.

It’s quite possible Ethos and ISOC entered talks in the three months after the deal had been finalized but before it had been signed.

When did you first learn of the negotiations to sell the .Org registry?

An excellent question I’ve also posed but as yet have no answer to.

Did you base your decision to approve the removal of price caps, at least in part, on the expectation or belief that the registry would continue to be operated by a nonprofit organization with a public commitment to maintaining a stable pricing environment, instead of on behalf of a private equity firm whose objective is to maximize profits for its funders?

Cheekily, I’m going to take ICANN at its word and say the answer is “yes”.

One of the controversies concerning the .org renewal was that ICANN seemingly ignored thousands of comments calling for the retention of price caps.

This, ICANN has denied, saying that it “reviewed and evaluated” every comment.

Among the very few comments that weren’t outright condemnations of the decision to remove price caps were two nuanced, arguably ambivalent, analyses from two influential ICANN structures — the At-Large Advisory Committee and the Non-Commercial Stakeholders Group.

ALAC’s eight-page comment (pdf) was very much of the “on the one hand…” variety, but it paid special attention to ISOC’s public interest works when putting forward the view that uncapped pricing might be a good thing, noting (and quoting itself):

a significant portion of .ORG registration fees “are returned to serve the Internet community [through] redistribution of .org funds into the community by the Internet Society, to support Internet development.”… ISOC’s goals and priorities, while far broader than At-Large (and even ICANN), parallel those of At-Large and the interests of end-users. Many At-Large Structures are also ISOC Chapters, further demonstrating the commonality of interests.

NCSG, meanwhile, said in its comments (pdf) that price caps should remain, but increased from the 10%-per-year level. It acknowledged that some .org money flows into funding NCSG.

So there’s two influential groups, both with organizational and/or funding ties to ISOC, saying price increases may be a good thing because ISOC acts in the public interest.

And ICANN said it read and absorbed all the comments, so I’m cheekily going to say that yes, ICANN at least in part renewed the .org contract in the belief that PIR would continue to be a non-profit and act in the public interest.

Had you been aware of the planned sale of the .Org registry to a private equity firm, would you have treated the renewal of the .Org registry agreement and the removal of price caps as worthy of robust discussion and a vote by the Board, such that perhaps the terms of the agreement would have been modified?

I’m going to go out on a limb here and say hell, no. ICANN doesn’t want to be a pricing regulator, regardless of the registry operator, in my view. It’s only the US government that’s preventing it lifting price restrictions on .com, I reckon.

What involvement did your former CEO, Mr. Chehade and your former SVP, Ms. Abusitta-Ouri, have in the decision to employ the base gTLD registry agreement for legacy TLDs during their tenure, if any?

In Chehadé’s case, the answer is fairly clear. Even if he did not have a hands-on role in the decision to cajole legacy gTLD registries toward the 2012 agreement, it all happened on his watch so he bears ultimate responsibility.

It’s worth noting, perhaps, that most of the legacy gTLD agreements that migrated over to the new gTLD agreement’s standard language happened not only while Chehadé was at the helm, but also after he’d already accepted his new job at Abry.

He announced his early resignation in May 2015, telling the AFP at the time that he already had a job lined up in the commercial sector, but he declined to give specifics.

He’d probably made his mind up to quit some time before the announcement. He registered the domain name chehade.company, which he now uses for his investment vehicle Chehadé & Company, in the April.

He revealed he was joining Abry as senior advisor on digital strategy in August that year, but didn’t actually leave until March 2016.

During that interim, lame-duck period ICANN negotiated and signed (all in October 2015) renewals for 2003-round gTLDs .pro, .cat and .travel, all of which incorporated 2012 contract language related to, for example, the Uniform Rapid Suspension process.

Three months before Chehadé’s resignation announcement, ICANN signed a very similar deal with .jobs, the first time it had incorporated 2012 language into a legacy gTLD contract.

These contracts were all signed for ICANN not by Chehadé but by his long-time buddy, frequent co-worker and then-president of the Global Domains Division, Akram Atallah (who is now CEO of Donuts, which is owned by Abry).

Since Chehadé’s departure, ICANN has also taken the same contract renewal stance with TLDs including .xxx, .mobi, .museum and .aero.

By 2016 it had become standard operating practice at ICANN to nudge registries towards the 2012-round contract, as Atallah explained to then-ICA lead Phil Corwin at ICANN’s Hyderabad meeting in November 2016. Atallah stated (pdf):

So basically the negotiations are — the registries come and ask for something, and we tell them please adopt the new gTLD contract. And if they push back on it and they say they don’t want something, we can’t force them to take it. It’s a negotiation between two parties. And I think it’s within the remit of the corporation to negotiate its contracts. If the policy comes back and says that the URS is not something that we want to have as a policy, of course, we would support that.

As regards Nora Abusitta-Ouri, Ethos’s “chief purpose officer”, her former job title of “senior VP for development and public responsibility programs” suggests she had little to no involvement in gTLD contractual issues.

While her LinkedIn profile doesn’t mention it, she appears to have become chief engagement officer at Chehadé & Company after her stint at ICANN ended in July 2016.

What restrictions do you have in place with respect to cooling-off periods for former executives?

Fuck all, clearly.

.org price cap complaints more like “spam” says Ombudsman

Kevin Murphy, September 11, 2019, Domain Policy

ICANN’s Ombudsman has sided with with ICANN in the fight over the lifting of price caps on .org domains, saying many of the thousands of comments objecting to the move were “more akin to spam”.

Herb Waye was weighing in on two Requests for Reconsideration, filed by NameCheap and the Electronic Frontier Foundation in July and August after ICANN and Public Interest Registry signed their controversial new registry agreement.

NameCheap wants ICANN to reverse its decision to allow PIR to raise .org prices by however much it chooses, while the EFF complained primarily about the fact that the Uniform Rapid Suspension anti-cybersquatting measure now appears in the contract.

In both cases, the requestors fumed that ICANN seemed to “ignore” the more than 3,200 comments that were filed in objection back in April, with NameCheap calling the public comment process a “sham”.

But Waye pointed to the fact that many of these comments were filed by people using a semi-automated web form hosted by the pro-domainer Internet Commerce Association.

As far as comments go for ICANN, 3200+ appears to be quite a sizeable number. But, seeing as how the public comments can be filled out and submitted electronically, it is not unexpected that many of the comments are, in actuality, more akin to spam.

With this eyebrow-raising comparison fresh in my mind, I had to giggle when, a few pages later, Waye writes (emphasis in original):

I am charged with being the eyes and ears of the Community. I must look at the matter through the lens of what the Requestor is asking and calling out. The Ombuds is charged with being the watchful eyes of the ICANN Community. The Ombuds is also charged with being the alert “ears” of the Community — with listening — with making individuals, whether Requestors or complainants or those just dropping by for an informal chat, feel heard.

Waye goes on to state that the ICANN board of directors was kept well-briefed on the status of the contract negotiations and that it had been provided with ICANN staff’s summary of the public comments.

He says that allowing ICANN’s CEO to execute the contract without a formal board vote did not go against ICANN rules (which Waye says he has “an admittedly layman’s understanding” of) because contractual matters are always delegated to senior staff.

In short, he sees no reason for ICANN to accept either Request for Reconsideration.

The Ombudsman is not the decision-maker here — the two RfRs will be thrown out considered by ICANN’s Board Accountability Mechanisms Committee at its next meeting, before going to the full board.

But I think we’ve got a pretty good indication here of which way the wind is blowing.

You can access the RfR materials and Waye’s responses here.

PIR says it has no plans to raise .org prices

Public Interest Registry claims it has no plans to raise its wholesale fee for .org domains, in the face of outrage from domainers and non-profits.

Under a proposed renegotiated contract with ICANN, price caps that have limited PIR to a 10% price increase every year would be removed.

But in a statement last week, the company said:

Rest assured, we will not raise prices unreasonably. In fact, we currently have no specific plans for any price increases for .ORG. We simply are moving to the standard registry agreement with all of its applicable provisions that already is in place for more than 1,200 other top-level domain extensions.

This does not necessarily translate to a commitment to not raise prices, of course. PIR may have “no specific plans” today, but it may tomorrow.

Over 3,300 people and organizations filed comments with ICANN about the proposed removal of the price caps, almost all of them negative.

Comments came initially from domain investors, but they were soon joined by many non-profit .org registrants and others.

Most claimed that it was unfair to allow unlimited price increases in legacy, pre-2012 gTLDs such as .org, which can be seen more as a public trust.

PIR went on to point out in its letter that it has not raised its prices — believed to be still under $10 a year — for the last three years.

But it might be worth noting that senior management has changed in that period. Brian Cute left the CEO job a year ago and, after an interim caretaker manager, was replaced by Donuts alumnus Jon Nevett in December.

.org’s registration numbers have been dipping. Over the last three years, it’s dropped from a peak of 11.3 million to 10.6 million at the end of 2018.

But it’s also renegotiated its back-end contract with Afilias over that period, meaning it’s now paying millions less on technical running costs than it once was.

PIR also reiterates that, like many of its customers, it is also a non-profit that is not motivated by investors and share prices.

More than half of its profits go to fund the Internet Society, itself a non-profit organization.

“We are different. We are mission based and not every decision is a financial one; we are not just driven by the bottom line,” its statement says.

PIR says that registrants are also protected by the measure in all ICANN gTLD contracts that allows registrants to lock in prices for up to 10 years in the event of a price increase, and by the fact that .org operates in a competitive market.

Reasonable people can and do disagree on whether these are effective protections in a case like .org.

ICA rallies the troops to defeat .org price hikes. It won’t work

Kevin Murphy, April 25, 2019, Domain Registries

Over 100 letters have been sent to ICANN opposing the proposed lifting of price caps in .org, after the Internet Commerce Association reached out to rally its supporters.

This is an atypically large response to an ICANN public comment period, and there are four days left on the clock for more submissions to be made, but I doubt it will change ICANN’s mind.

Almost all of the 131 comments filed so far this month were submitted in the 24 hours after ICA published its comment submission form earlier this week.

About a third of the comments comprise simply the unedited ICA text. Others appeared to have been inspired by the campaign to write their own complaints about the proposal, which would scrap the 10%-a-year .org price increase cap Public Interest Registry currently has in place.

Zak Muscovitch, ICA’s general counsel, told DI that as of this morning the form generates different template text dynamically. I’ve spotted at least four completely different versions of the letter just by refreshing the page. This may make some comments appear to be the original thoughts of their senders.

This is the original text, as it relates to price caps:

I believe that legacy gTLDs are fundamentally different from for-profit new gTLDs. Legacy TLDs are essentially a public trust, unlike new gTLDs which were created, bought and paid for by private interests. Registrants of legacy TLDs are entitled to price stability and predictability, and should not be subject to price increases with no maximums. Unlike new gTLDs, registrants of legacy TLDs registered their names and made their online presence on legacy TLDs on the basis that price caps would continue to exist.

Unrestrained price increases on the millions of .org registrants who are not-for-profits or non-profits would be unfair to them. Unchecked price increases have the potential to result in hundreds of millions of dollars being transferred from these organizations to one non-profit, the Internet Society, with .org registrants receiving no benefit in return. ICANN should not allow one non-profit nearly unlimited access to the funds of other non-profits.

The gist of the other texts is the same — it’s not fair to lift price caps on domains largely used by non-profits that may have budget struggles and which have built their online presences on the old, predictable pricing rules.

The issues raised are probably fair, to a point.

Should the true “legacy” gTLDs — .com, .net and .org — which date from the 1980s and pose very little commercial risk to their registries, be treated the same as the exceptionally risky gTLD businesses that have been launched since?

Does changing the pricing rules amount to unfairly moving the goal posts for millions of registrants who have built their business on the legacy rules?

These are good, valid questions.

But I think it’s unlikely that the ICA’s campaign will get ICANN to change its mind. The opposition would have to be broader than from a single interest group.

First, the message about non-profits rings a bit hollow coming from an explicitly commercial organization whose members’ business model entails flipping domain names for large multiples.

If a non-profit can’t afford an extra 10 bucks a year for a .org renewal, can it afford the hundreds or thousands of dollars a domainer would charge for a transfer?

Even if PIR goes nuts, abandons its “public interest” mantra, and immediately significantly increases its prices, the retail price of a .org (currently around $20 at GoDaddy, which has about a third of all .orgs) would be unlikely to rise to above the price of PIR-owned .ong and .ngo domains, which sell for $32 to $50 retail.

Such an increase might adversely affect a small number of very low-budget registrants, but the biggest impact will be felt by the big for-profit portfolio owners: domainers.

Second, letter-writing campaigns don’t have a strong track record of persuading ICANN to change course.

The largest such campaign to date was organized by registrars in 2015 in response to proposals, made by members of the Privacy and Proxy Services Accreditation Issues working group, that would have would have essentially banned Whois privacy for commercial web sites.

Over 20,000 people signed petitions or sent semi-automated comments opposing that recommendation, and ICANN ended up not approving that specific proposal.

But the commercial web site privacy ban was a minority position written by IP lawyers, included as an addendum to the group’s recommendations, and it did not receive the consensus of the PPSAI working group.

In other words, ICANN almost certainly would not have implemented it anyway, due to lack of consensus, even if the public comment period had been silent.

The second-largest public comment period concerned the possible approval of .xxx in 2010, which attracted almost 14,000 semi-automated comments from members of American Christian-right groups and pornographers.

.xxx was nevertheless approved less than a year later.

ICANN also has a track record of not acceding to ICA’s demands when it comes to changes in registry agreements for pre-2012 gTLDs.

ICA, under former GC Phil Corwin, has also strongly objected to similar changes in .mobi, .jobs, .cat, .xxx and .travel over the last few years, and had no impact.

ICANN seems hell-bent on normalizing its gTLD contracts to the greatest extent possible. It’s also currently proposing to lift the price caps on .biz and .info.

This, through force of precedent codified in the contracts, could lead to the price caps one day, many years from now, being lifted on .com.

Which, let’s face it, is what most people really care about.

Info on the .org contract renewal public comment period can be found here.

ICA opposes Aussie domaining ban

Kevin Murphy, April 10, 2019, Domain Policy

The Internet Commerce Association has weighed in to the debate about whether domain investing should be effectively banned in Australia’s .au ccTLD.

Naturally enough, the domainer trade group opposes the ban, saying that investment is a natural part of any market, and very probably supplying the registry with millions of dollars of revenue.

The comments came in a letter to auDA (pdf) from ICA general counsel Zak Muscovitch in response to auDA’s latest policy review proposals, which I reported on two weeks ago, that propose to further crack down on “warehousing”.

auDA wants to ban the practice of registering domains “primarily” for resale or warehousing, clarifying the current rule that prohibits registering “solely” for resale (which is easily evaded by, for example, parking).

A set of indicators would be used to zero in on offenders, such as observing the registrant’s history of selling or offering to sell domains, the existence of an auction listing for the domain, or the fact that the registrant owns more than 100 .au names.

But ICA reckons the effort is misguided and could even be damaging to auDA’s finances, pointing out that it and its registrars likely receive millions of dollars from the registration and renewal of speculative domain names.

Muscovitch’s letter goes on to question whether the policy review panel that came up with the proposals did any research into the potential economic impact of banning domain investment, pointing out that in some cases to seize domainers’ portfolios could wipe out a family’s life savings.

ICA also questions whether the panel has sufficiently thought through how enforceable its proposed rules would be, given the additional complexity introduced into the system.

The policy review paper is still open for comments, but if you want to chip in you’d better be quick. The comment period ends at 1700 AEST Friday, which is 0700 UTC.

ICANN urged to reject .com price increases

Kevin Murphy, November 21, 2018, Domain Registries

The Internet Commerce Association has asked ICANN to refuse to allow Verisign to raise its wholesale prices for .com domain names.

The domainer trade group wrote to ICANN last week to point out that just because the Trump administration has dropped the US government objection to controlled price increases, that doesn’t necessarily mean ICANN has to agree.

Verisign’s deal with the National Telecommunications and Information Administration “does not of course, compel ICANN to agree to any such increases. Any such decision regarding .com pricing
remains with ICANN” ICA general counsel Zak Muscovitch wrote.

The deal allows Verisign to increase the price of .com registrations, renewals and transfers by 7% per year in four of the next six years, leading to a compound 30% increase by the time it concludes.

The arguments put forth Muscovitch’s letter are pretty much the same as the arguments ICA made when it was lobbying NTIA to maintain the price freeze.

Namely: Verisign already makes a tonne of money from .com, it has a captive audience, it cannot claim credit for .com’s success, and .com is not constrained by competition.

“As NTIA makes clear, it is up to Verisign to request a fee increase and ICANN that may agree or disagree. ICANN should not agree. Indeed, it would be a dereliction of ICANN’s responsibilities to the ICANN community if Verisign were permitted to raise its fees when it is already very well paid for the services which it provides,” Muscovitch’s letter (pdf) concludes.

For many years ICANN has been reluctant to get involved in price regulation. It remains to be seen whether it will make an exception for .com.

Verisign to keep price increase power under new .net contract

Kevin Murphy, April 21, 2017, Domain Registries

The wholesale price of a .net domain is likely to top $15 by 2023, under a proposed renewal of its ICANN contract revealed today.

ICANN-imposed price caps are staying in the new Registry Agreement, but Verisign retains the right to increase its fees by 10% in each of the six years of the deal’s lifespan.

But domain investors do have at least one reason to be cheerful — while the contract adds many features of the standard new gTLD registry agreement, it does not include a commitment to implement the Uniform Rapid Suspension anti-cybersquatting procedure.

The current .net annual fee charged to registrars is $8.95 — $8.20 for Verisign, $0.75 for ICANN — but Verisign will continue to be allowed to increase its portion by up to 10% a year.

That means the cost of a .net could hit $15.27 wholesale (including the $0.75 ICANN fee) by the time the proposed contract expires in 2023.

Verisign has form when it comes to utilizing its price-raising powers. It exercised all six options under its current contract, raising its share of the fee from $4.65 in 2011.

On the bright side for volume .net holders, the prices increases continue to be predictable. ICANN has not removed the price caps.

Also likely to cheer up domainers is the fact that there are no new intellectual property protection mechanisms in the proposed contract.

Several post-2000 legacy gTLDs have agreed to incorporate the URS into their new contracts, leading to outrage from domainer organization the Internet Commerce Association.

ICA is worried that URS will one day wind up in .com without a proper ICANN community consensus, opening its members up to more risk of losing valuable domains.

The fact that URS is not being slipped into the .net contract makes it much less likely to be forced on .com too.

But Verisign has agreed to several mostly technical provisions that bring it more into line with the standard 2012-round new gTLD RA.

For example, it appears that daily .net zone files will become accessible via ICANN’s Centralized Zone Data Service before the end of the year.

Verisign has also agreed to standardize the format of its data escrow, Whois and monthly transaction reports.

The company has also agreed to start discussions about handing .net over to an emergency back-end operator in the event it files for bankruptcy.

The current contract is due to expire at the end of June and the proposed new deal would kick in July 1.

It’s now open for public comment until June 13.

Now the DNA backpedals on “Copyright UDRP”

Kevin Murphy, February 27, 2017, Domain Policy

The Domain Name Association has distanced itself from the Copyright ADRP, a key component of its Healthy Domains Initiative, after controversy.

The anti-piracy measure would have given copyright owners a process to seize or suspend domain names being used for massive-scale piracy, but it appears now to have been indefinitely shelved.

The DNA said late Friday that it has “elected to take additional time to consider the details” of the process, which many of us have been describing as “UDRP for Copyright”.

The statement came a day after .org’s Public Interest Registry announced that it was “pausing” its plan for a Systemic Copyright Infringement Alternative Dispute Resolution Policy modeled on UDRP.

PIR was the primary pen-holder on the DNA’s Copyright ADRP and the only registry to publicly state that it intended to implement it.

It’s my view that the system was largely created as a way to get rid of the thepiratebay.org, an unwelcome presence in the .org zone for years, without PIR having to take unilateral action.

The DNA’s latest statement does not state outright that the Copyright ADRP is off the table, but the organization has deleted references to it on its HDI web page page.

The HDI “healthy practices” recommendations continue to include advice to registries and registrars on handling malware, child abuse material and fake pharmaceuticals sites.

In the statement, the DNA says:

some have characterized [Copyright ADRP] as a needless concession to ill-intentioned corporate interests, represents “shadow regulation” or is a slippery slope toward greater third party control of content on the Internet.

While the ADR of course is none of these, the DNA’s concern is that worries over these seven recommendations have overshadowed the value of the remaining 30. While addressing this and other illegalities is a priority for HDI, we heard and listened to various feedback, and have elected to take additional time to consider the details of the ADR recommendations.

Thus, the DNA will take keen interest in any registrar’s or registry’s design and implementation of a copyright ADR, and will monitor its implementation and efficacy before refining its recommendations further.

The copyright proposal had been opposed by the Electronic Frontier Foundation, the Internet Commerce Association and other members of ICANN’s Non-Contracted Parties House.

In a blog post over the weekend, ICA counsel Phil Corwin wrote that he believed the proposal pretty much dead and the issue of using domains to enforce copyright politically untouchable:

While the PRI and DNA statements both leave open the possibility that they might revive development of the Copyright UDRP at some future time, our understanding is that there are no plans to do so. Further, notwithstanding the last sentence of the DNA’s statement, we believe that it is highly unlikely that any individual registrar or registry would advance such a DRP on its own without the protective endorsement of an umbrella trade association, or a multistakeholder organization like ICANN. Ever since the U.S. Congress abandoned the Stop Online Privacy Act (SOPA) in January 2012 after millions of protesting calls and emails flooded Capitol Hill, it has been clear that copyright enforcement is the third rail of Internet policy.

PIR slams brakes on “UDRP for copyright”

Kevin Murphy, February 24, 2017, Domain Policy

Public Interest Registry has “paused” its plan to allow copyright owners to seize .org domains used for piracy.

In a statement last night, PIR said the plans were being shelved in response to publicly expressed concerns.

The Systemic Copyright Infringement Alternative Dispute Resolution Policy was an in-house development, but had made its way into the Domain Name Association’s recently revealed “healthy practices” document, where it known as Copyright ADRP.

The process was to be modeled on UDRP and similarly priced, with Forum providing arbitration services. The key difference was that instead of trademark infringement in the domain, it dealt with copyright infringement on the associated web site.

PIR general counsel Liz Finberg had told us the standard for losing a domain would be “clear and convincing evidence” of “pervasive and systemic copyright infringement”.

Losers would either have their domain suspended or, like UDRP, seized by the complainant.

The system seemed to be tailor-made to give PIR a way to get thepiratebay.org taken down without violating the owner’s due process rights.

But the the announcement of Copyright ADRP drew an angry response from groups representing domain investors and free speech rights.

The Electronic Frontier Foundation said the system would be captured by the music and movie industries, and compared it to the failed Stop Online Piracy Act (SOPA) in the US.

The Internet Commerce Association warned that privatized take-down policies at registries opened the door for ICANN to be circumvented when IP interests don’t get what they want from the multi-stakeholder process.

I understand that members of ICANN’s Non-Contracted Parties House was on the verge of formally requesting PIR pause the program pending a wider consultation.

Some or all of these concerns appear to have hit home, with PIR issuing the following brief statement last night:

Over the past year, Public Interest Registry has been developing a highly focused policy that addresses systemic, large scale copyright infringement – the ”Systemic Copyright Infringement Alternative Dispute Resolution Policy” or SCDRP.

Given certain concerns that have been recently raised in the public domain, Public Interest Registry is pausing its SCDRP development process to reflect on those concerns and consider forward steps. We will hold any further development of the SCDRP until further notice.

SCDRP was described in general terms in the DNA’s latest Healthy Domains Initiative proposals, but PIR is the only registry to so far publicly express an interest in implementing such a measure.

Copyright ADRP may not be dead yet, but its future does not look bright.

UPDATE: This post was updated 2/26 to clarify that it was only “some members” of the NCPH that were intending to protest the Copyright ADRP.