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Should brands get a new gTLD round to themselves? Twitter thinks so

Kevin Murphy, October 20, 2015, Domain Policy

Twitter wants to get its hands on some new gTLDs but doesn’t want to wait.
Having missed the first round of new gTLD applications back in 2012, the company is now keen on getting .twitter and other strings both branded and generic.
“We’re interest in round two,” Twitter trademark counsel Stephen Coates said as ICANN’s business constituencies met the board of directors today.
“We have several interesting opportunities to develop around that space,” he said. “We are interested in both brands and generics.”
The problem for Twitter, and every other would-be gTLD applicant, is that ICANN isn’t even talking in broad terms about when the next round will be.
The absolute minimum that must happen is that ICANN must complete a review of round one, focusing on “Competition, Consumer Trust and Consumer Choice”. This CCT review is mandated by ICANN’s Affirmation of Commitments with the US government.
Almost three years after the first round opened, the volunteer team that will carry out the CCT review has not even been assembled yet.
There are a number of other factors that may or may not wind up on the critical path — such as reviews of rights protection mechanisms and security and stability at the DNS root.
Coates said he would like a “bifurcated” review process leading to two separate second application rounds.
“I would advocate for bifurcating the review process, which I think is very important, especially around RPMs,” he said. “But also bifurcating the round process, treating dot-brands differently than generic names.”
I think this outcome is unlikely.
Application rules that give preference to one type of application over another invite exploitation. It happened in the 2003 sponsored TLD round and it’s happening with “community” and “Specification 13” applications in the current round too.

ICANN boss warns against “content policing” calls

Kevin Murphy, October 20, 2015, Domain Policy

ICANN should resist attempts to turn the organization into a content regulator responsible for fighting piracy, counterfeiting and terrorism.
That’s according to CEO Fadi Chehade, speaking in Dublin yesterday at the opening ceremony of ICANN’s 54th public meeting.
His remarks have already solicited grumbles from members of the intellectual property community, which are eager for ICANN to take a more assertive role against registries and registrars.
Speaking to a packed auditorium, Chehade devoted a surprisingly large chunk of his opening address to the matter of content policing, which he said was firmly outside of ICANN’s remit.
He presented this diagram, breaking up the internet into three layers. ICANN plays in the central “logical” section but has no place in the top “societal” segment, he said.
ICANNs remit
“Where does ICANN’s role start and where does ICANN’s role stop?” Chehade posed. “It’s very clear Our remit starts and stops in this logical yellow layer. We do not have any responsibility in the upper layer.”
“The community has spoken, and it is important to underline that in every possible way, ICANN’s remit is not in the blue layer, it is not in the economic/societal layer,” he said. This is a technical organization.”
That basically means that ICANN has no responsibility to determine which web sites are good and which are bad. That’s best left to others such as the courts and governments.
Chehade recounted an anecdote about a meeting with a national president who demanded that ICANN shut down a list of terrorism-supporting web sites.
“We have no responsibility to render judgement about which sites are terrorists,” he said, “which sites are the good pharmacies, which sites are the bad pharmacies, which sites are comitting crimes, which sites are infringing copyrights…”
“When people ask us to render judgement on matters in the upper layer, we can’t.”
With that all said, Chehade added that ICANN should not shirk its duties as part of the ecosystem, whether through voluntary measures at registries and registrars or via contractual enforcement.
“Once determinations are made, how do we respond the these?” he said. “I hope, voluntarily.”
He gave the example of credit card companies that voluntarily stop doing business with web sites that have been reported to be involved in crime or spam.
The notion of registrars adhering to a set of voluntary principles was first floated by ICANN’s chief compliance officer, Allen Grogan, in a blog post earlier this month.
It was the one bone he threw to IP interests in a determination that otherwise came down firmly on the side of registrars.
Grogan had laid out a minimum set of actions registrars must carry out when they receive abuse reports, none of which contained a requirement to suspend or delete domain names.
The Intellectual Property Constituency appeared to greet Chehade’s speech with cautious optimism, but members are still pushing for ICANN to take a stricter approach to contract compliance.
In a session between the IPC and the ICANN board in Dublin this morning, ICANN was asked to make these hypothetical voluntary measures enforceable.
Marc Trachtenberg disagreed with Chehade’s credit card company example.
“The have an incentive to take action, which is the avoidance of future potential costs,” he said. “That similar incentive does not exist with respect to registries and registrars.”
“In order for any sort of voluntary standards to be successful or useful, there have to be incentives for the parties to actually comply with those voluntary standards,” he said.
“One possibility among many is a situation where those registries and registrars that don’t comply with the voluntary standards are potentially subject to an ICANN compliance action,” he said.
It’s pretty clear that this issue is an ongoing one.
Chehade warned in his address yesterday that calls for ICANN to increase its policing powers will only increase when and if its IANA contract is finally divorced from US government oversight.
Grogan will host a roundtable tomorrow at 10am Dublin time to discuss possible voluntary mechanisms that could be created to govern abuse.

ALAC throws spanner in ICANN accountability discussions

Kevin Murphy, October 18, 2015, Domain Policy

The At-Large Advisory Committee has yanked backing for a key ICANN accountability proposal.
The ALAC, on of ICANN’s policy advisory groups, this afternoon voted unanimously “to withdraw support for the Membership model” at ICANN 54 in Dublin.
The Membership model is a proposal out of the Cross Community Working Group on Accountability (CCWG) that would change ICANN’s legal structure to one of formal membership, where a Sole Member gets legal rights to enforce accountability over the ICANN board of directors.
The model has some fierce support in the CCWG, but over the last few days in Dublin the group has started to explore the possibility of a “Designator” model instead.
That would be a weaker accountability model than one based on membership, but stronger than the “Multistakeholder Enforcement Mechanism” proposed by the ICANN board.
ALAC chair Alan Greenberg said in a statement to the CCWG mailing list:

In its formal response to the CCWG-Accountability proposal issued in August 2015, the ALAC said that it could support the model being proposed, but preferred something far less complex and lighter-weight, and that we saw no need for the level of enforceability that the proposal provided. Moreover, the ALAC had specific concerns with the budget veto and the apparent lack of participation of perhaps a majority of AC/SOs.
In light of the reconsideration of a designator model by the CCWG, along with the recommendations of the Saturday morning break-out sessions, the ALAC felt that a revised statement was in order. Accordingly we decided, by a unanimous vote of the 14 ALAC members present (with 1 not present), to withdraw support for the Membership model.
I want to make it clear that this is not a “red line” decision. Should a Membership model become one that is generally advocated by the CCWG, and supported by a supermajority of Board directors (who ultimately MUST support any changes that they will be called upon to approve, else they would be in violation of their fiduciary duty), then the ALAC reserves its right to support such a model.

The move revises the battle lines in the ongoing accountability debate. It’s no longer a simple case of CCWG versus ICANN board.
Dublin is a crunch time for the accountability proposals.
The clock is ticking — if the ICANN community cannot agree on a consensus proposal soon it risks delaying the transition of the IANA functions from US government oversight and possibly killing off the transition altogether.
Yet, while the CCWG is making steady progress cleaning up remaining areas of disagreement, the differences between itself and the board are still as sharp as ever.

DI will be live-blogging ICANN 54

Kevin Murphy, October 16, 2015, Domain Policy

I’m going to be doing something a little different for ICANN’s latest public meeting.
For various tedious reasons I was unable to attend in person ICANN 54, which started in Dublin this morning, so I thought I’d try to make the best of the advantages of remote participation and a friendly time zone to try something new.
Namely, live-blogging.
For those unfamiliar with the concept, a live-blog is essentially a single blog post that is updated and amended in real-time as a quickly developing news story continues to roll.
You can think of it a little like a Twitter feed, but without the restrictions.
If you have your browser open to the live-blog post, the updates should be automatically pushed to you in near real-tie without the need to manually refresh the page.
I say “should” because I’ve never done this before and, despite a bit of testing, the back-end software may not function precisely as I expect.
The auto-refresh function only seems to work, by design, in single-post view. If you’re looking at the DI front page you probably won’t get the auto-updates unless you manually refresh.
It’s all very experimental and I may quickly abandon the idea if it doesn’t seem to be working. Feedback is welcome.
The intention in some cases is to live-blog individual sessions, when they’re important enough to warrant my undivided attention — such as the opening ceremony or the meeting between the ICANN board and the Governmental Advisory Committee.
In other cases, the blog may dip in and out of conflicting sessions depending on what seems most interesting at the time.
While ICANN 54 doesn’t officially start until Monday, long-time ICANN watchers know that the real discussions begin much earlier.
In fact, in Dublin, they’ve already started.
A three-hour session of the community working group tasked with improving ICANN’s accountability, known as the CCWG, showed strong indications this morning that it may be ready to be the first blink in its ongoing confrontation with the ICANN board.
You can expect a lot of coverage of the accountability discussions, which have multiple sessions devoted to them, over the coming seven days.

Andruff fuming after ICANN leadership snub

Kevin Murphy, October 14, 2015, Domain Policy

Long-time ICANN volunteer Ron Andruff has complained to the ICANN board of directors after he was passed over for a key leadership position.
Andruff this week filed a Request for Reconsideration after the board appointed Stephane van Gelder chair of the ICANN Nominating Committee for a second year, despite Andruff serving as “chair-elect” in the 2015 NomCom.
According to ICANN bylaws, it is “anticipated” that NomCom chairs-elect take over from their chairs each year, but the board has the “discretion” to pick somebody entirely different.
That’s discretion the board exercised last week when it picked Van Gelder, executive VP at new gTLD registry Starting Dot, to continue on as chair.
Andruff was replaced as chair-elect by Hans Petter Holen, who comes from the IP address side of the community.
NomCom is tasked with the selection of three ICANN board members each year. The chair and chair-elect positions are picked by the ICANN board, but are non-voting.
Now Andruff’s mad that “a subset of mean-spirited and targeted attacks on my reputation by a few individuals” have cost him the chair’s gig. He said the board:

is meddling in the affairs of the supposedly independent Nominating Committee. Interfering with successful and efficient processes within the body that selects 2-3 Board members each year is not only wholly unnecessary, it triggers suspicion about the very independence of the Nom Com. It is also likely to deter others from volunteering their time and energy within the NomCom and other ICANN bodies as they become aware of how review processes that are supposed to foster self-improvement can instead be used to unfairly tarnish reputations.

The ICANN board seems to have come to its decision based at least in part on the results of a “360-degree” evaluation of Andruff by his NomCom peers.
These reviews invite committee members to score each other based on criteria such as leadership skills, honesty and good judgment.
The anonymous comments attached to the scores can be both fawning and really rather scathing.
A perfect score would be 55. Andruff scored 42.3.
Van Gelder scored 50.1 this year and 49.7 when he was in Andruff’s position last year.
Andruff’s report card also seems to contain more negative, and more negative, written comments than Van Gelder’s.
A minority of respondents questioned his neutrality, leadership skills and tone. A sample:

Ron constantly provided negative, arbitrary comments which carried underlying messages that he is the hardest worker in the group – more so than anyone else. He appeared to be a bully toward other members on many occasions – very opinionated and controlling, particularly about process. Ron does not use his influence appropriately regarding candidates. There is concern about his ability next year to separate his constituencies’ interests from the supposed independent role of the NomCom Chair. His style of using influence is often neither appropriate nor effective.

Andruff takes issue with the fact that the board chose to use his 360 review at all. In his RfR, he writes:

the reviews were intended to be a tool for improvement, rather than a basis for disqualification. That is especially true in regard to a review such as my own, which was strong overall while revealing a few areas that could be a focus for further improvement.

He also says he was told by an ICANN director that he “lacks cultural sensitivity”, a claim that he says came without any evidence.
He wrote:

I have absolutely no doubt, based on my personal interactions as well as the result of the 360 review, that if my ascension to Chair was put to a vote of the Nom Com members with whom I have served over the past year I would win by a substantial margin.

Andruff is CEO of his own firm, ONR Consulting, which also goes by the name ICANN Sherpa, and he’s worried that the board’s snub will cost him business.
The ICANN Board Governance Committee, which made the original recommendation to reappoint Van Gelder and remove Andruff, intends to discuss Andruff’s complaint on Sunday.
Documentation on NomCom 2015, including the 360 reviews, can be found here.

Odd-couple coalition wants URS deleted from legacy gTLD contracts

Kevin Murphy, October 14, 2015, Domain Registries

Commercial and non-commercial interests within ICANN have formed a rare alliance in order to oppose the Uniform Rapid Suspension policy in three new legacy gTLD contracts.
The groups want ICANN to delete URS from the .travel, .cat and .pro Registry Agreements, which were all renewed for 10-year terms last week.
The Business Constituency and the Non-Commercial Stakeholders Group put their names to a Request for Reconsideration filed with ICANN yesterday.
The Internet Commerce Association, a member of the BC, filed a separate RfR asking for the same thing yesterday too.
These groups believe that ICANN contracting staff are trying to create consensus policy by the back door, from the top down, by imposing URS on gTLDs that were delegated before the 2012 application round.
URS was created specifically for the new gTLD program and therefore should not apply to legacy gTLDs, they say. The BC/NCSG request states:

Our joint concern… is that a unilateral decision by ICANN contractual staff within the [Global Domains Division] to take the new gTLD registry agreement as the starting point for renewal RAs for legacy gTLDs has the effect of transforming the PDDRP [Post Delegation Dispute Resolution Process] and the URS into de facto Consensus Policies without following the procedures laid out in ICANN’s Bylaws for their creation. To be clear, we take no objection to a registry voluntarily agreeing to adopt RPMs in their contractual negotiations with ICANN.

The ICA has the same objections. It’s primarily concerned that the new contracts set a precedent that will ultimately force URS into the .com space, when Verisign’s contract comes up for renewal.
Both RfRs ask ICANN to delete the URS requirements from the just-signed .pro, .travel and .cat registry agreements.
The requesters suspect that rather than including URS as “the result of even-handed ‘bilateral negotiations'”, it was “staff insistence that the registries accept it to achieve timely registry agreement renewal.”
They want the ICANN board to demand to see the emails that were exchanged during negotiations in order to determine whether the registries were strong-armed into signing up for URS.
The BC/NCSG request is here. The ICA request is here.

XYZ to put global block on domains banned in China

Kevin Murphy, October 12, 2015, Domain Registries

XYZ.com plans to slap a global ban on domain names censored by the Chinese government.
Chinese words meaning things such as “human rights” and “democracy” are believed to be on the block list, which an industry source says could contain as many as 40,000 words, names and phrases.
(UPDATE: Gavin Brown, CTO of XYZ back-end CentralNic, tweeted that the list is nowhere near 40,000 names long.)
The registry seems to be planning to allow the Chinese government to censor its new gTLDs, which include .xyz, .college, .rent, .protection and .security, in every country of the world.
And it might not be the last non-Chinese registry to implement such a ban.
The surprising revelation came in a fresh Registry Services Evaluation Process request (pdf), filed with ICANN on Friday.
The RSEP asks ICANN to approve the use of a gateway service on the Chinese mainland, which the company says it needs in order to comply with Chinese law.
As previously reported, Chinese citizens are allowed to register domains in non-Chinese registries, but they may not activate them unless the registry complies with the law.
That law requires the registry to be located on the Chinese mainland. XYZ plans to comply by hiring local player ZDNS to proxy its EPP systems and mirror its Whois.
But the Chinese government also bans certain strings — which I gather are mostly but not exclusively in Chinese script — from being registered in domain names.
Rather than block them at the ZDNS proxy, where only Chinese users would be affected, XYZ has decided to ban them internationally.
Registrants in North America or Europe, for example, will not be able to register domains that are banned in China. XYZ said in its RSEP:

XYZ will reserve names prohibited for registration by the Chinese government at the registry level internationally, so the Gateway itself will not need to be used to block the registration of of any names. Therefore, a registrant in China will be able to register the same domain names as anyone else in the world.

It seems that XYZ plans to keep its banned domain list updated as China adds more strings to its own list, which I gather it does regularly.
Customers outside of China who have already registered banned domains will not be affected, XYZ says.
If China subsequently bans more strings, international customers who already own matching domains will also not be affected, it says.
CEO Daniel Negari told DI: “To be clear, we will not be taking action against names registered outside of China based on Chinese government requests.”
But Chinese registrants do face the prospect losing their domains, if China subsequently bans the words and XYZ receives a complaint from Chinese authorities.
“We treat requests from the Chinese government just like we treat requests from the US government or any other government,” Negari said.
“When we receive a valid government or court order to take action against a name and the government has jurisdiction over the registration, we will take action the registration,” he said.
Up to a third of the .xyz zone — about three hundred thousand names — is believed to be owned by Chinese registrants who are currently unable to actually use their names.
The company clearly has compelling business reasons to comply with Chinese law.
But is giving the Chinese government the ongoing right to ban tens of thousands of domain names internationally a step too far?
ICANN allows anyone to file public comments on RSEP requests. I expect we’ll see a few this time.

ICANN win leaves door open for plural gTLD rethink

Kevin Murphy, October 12, 2015, Domain Policy

ICANN has fought off an appeal by .webs gTLD applicant Vistaprint, in a case that considered the coexistence of singular and plural gTLDs.
While ICANN definitively won the Independent Review Process case, the IRP panel nevertheless invited its board of directors to consider whether Vistaprint should be given a chance to appeal a decision that ruled .webs too similar to .web.
Vistaprint runs a web site building service called Webs.com. It filed two applications for .webs — one “community” flavored, one vanilla — but then found itself on the losing end of a String Confusion Objection filed by rival Web.com, one of the many .web applicants.
It was one of the few instances where a SCO panel decided that a plural string was too confusingly similar to its singular for the two to coexist.
In many other cases, such as .auto(s), .fan(s) and .gift(s), the two strings have been allowed to be delegated.
Not wanting to have to fight for .webs at auction against eight .web applicants — which would likely cost eight figures to win — Vistaprint filed a Request for Reconsideration (which failed), followed by an last-ditch IRP complaint.
But its three-person IRP panel ruled on Friday (pdf) that ICANN did not violate its bylaws by accepting the SCO decision and subsequently rejecting the RfR.
However, the panel handed Vistaprint a silver lining that may eventually give the company what it wants. Even though ICANN won, Vistaprint may not necessarily have lost.
The panel wrote:

the Panel recommends that ICANN’s Board exercise its judgment on the question of whether an additional review mechanism is appropriate to re-evaluate the Third Expert’s determination in the Vistaprint SCO, in view of ICANN’s Bylaws concerning core values and non-discriminatory treatment, and based on the particular circumstances and developments noted in this Declaration, including (i) the Vistaprint SCO determination involving Vistaprint’s .WEBS applications, (ii) the Board’s (and NGPC’s) resolutions on singular and plural gTLDs, and (iii) the Board’s decisions to delegate numerous other singular/plural versions of the same gTLD strings.

In other words, ICANN has been invited to consider whether Vistaprint should be able to appeal, using a similar mechanism perhaps to that which was offered to other applicants that suffered from inconsistent, adverse SCO decisions.
At time when ICANN’s accountability is under international scrutiny, it’s highly likely that the board will give this recommendation some thought.
The IRP declaration does not reflect well on ICANN’s current level of accountability.
As usual, ICANN tried to wriggle out of accountability by attempting to castrate the panel from the outset, arguing again that IRP panels must be “deferential” to the board — that is, assume that its actions were correct by default — and that its declarations are “advisory” rather than “binding”.
And, as usual, the panel disagreed, saying previous IRP cases show this is now “settled” law. It said that it would evaluate the case “objectively and independently”, not deferentially.
But while it said its declaration was binding “in the sense that ICANN’s Board cannot overrule the Panel’s declaration” it agreed with ICANN that it only had the power to “recommend”, rather than order, remedies.
Acknowledging Vistaprint raised important public interest questions, the panel ordered ICANN to pay 40% of IRP costs.
The Vistaprint IRP was one of the things holding up the .web contention set, so Friday’s declaration moves the fabled gTLD one step closer to reality.
If the company gets the ability to appeal its SCO loss, it would add months to the .web runway. If it does not, it will have to remain in the .web contention set, which would head to auction.

Vox Pop denies links to free .sucks company

Kevin Murphy, October 10, 2015, Domain Registries

Vox Populi, the .sucks gTLD registry, has told DI that it is not involved with This.sucks, the company offering free .sucks domains, after evidence to the contrary was discovered.
Meanwhile, the president of ICANN’s intellectual property constituency says he’s concerned that the registry may be using This.sucks to try to misrepresent its prices.
This.sucks, as reported yesterday, is currently in pre-launch. It has said it plans to give away up to 10,000 .sucks domains to customers who want to run blog/forum sites commenting on companies, products and other general issues.
Its standard pricing would be $1 per month, a massive discount on the regular $200+ annual registry fee, which would require it to make substantial additional revenue to cover its costs.
That’s assuming it is really an independent company, of course.
Some people think it’s just a front for Vox Pop, and there are compelling reasons to believe they’re correct.
Rob Hall paid for the web site
The most compelling piece of evidence, for me, is that somebody called Robert Hall paid for design of the This.sucks web site.
The one-page launch site was created by a designer responding to an ad on the crowdsourcing web site DesignCrowd.
The title of the solicitation page is “Modern, Bold Web design job. Web brief for Robert Hall, a company in Turks and Caicos Islands”.
Rob Hall is the CEO of Momentous, the company that founded Vox Pop and as far as I know still owns most of it.
He’s the technical contact for .sucks in the IANA database, albeit with a Barbados, rather than Turks and Caicos, address.
The DesignCrowd contest seems to have been submitted around August 26 this year, two days before This.sucks existed as a legal entity in New York state.
Hall seems to have paid $370 for the winning design and $10 to five runners-up.
The site is/was hosted on Vox Pop’s server
Another compelling link between Vox Pop and This.sucks is the server on which their respective domains are hosted — it’s the same box.
According to DomainTools, this.sucks is hosted on a server with just 16 other domains. Four of those — everything.sucks and that.sucks, as well as sister sites this.rocks and that.rocks — belong to This.sucks Inc.
The remaining 12 domains — including buy.sucks, register.sucks, search.sucks — are all .sucks promotional sites owned and operated by Vox Populi.
This.sucks reverse Whois
Berard told DI in an email that Vox Pop has never hosted This.sucks sites:

I suspect that in doing the deal for the premium domain names they wanted, some remained pointed at one of our forwarding servers to which they were first assigned. But, as with the other names they have registered, that will sort itself out over time. We have never hosted their website.

It’s true that DomainTools warns that domains may still be listed for up to two weeks after they have been removed from an IP address.
But I don’t think Vox Pop’s explanation explains how this.rocks and that.rocks wound up listed as hosted on the same IP address as the .sucks domains.
The .rocks gTLD is run by Rightside, not Vox Pop, so I can’t see an obvious reason why they started out pointing to a Vox Pop box.
I asked Berard for clarification on this point but have yet to receive a reply. A This.sucks spokesperson has not responded to an inquiry about the apparently shared hosting.
Caymans link
It also turns out that somebody formed a Cayman Islands company called This.sucks Ltd on August 25 this year, three days before the New York-based This.sucks Inc was registered.
The Cayman company’s registered address is the Georgetown PO Box number for Cayman Law Group Ltd, a boutique law firm with a half-finished web site.
That’s the same address Vox Populi gave ICANN (pdf) when it transferred its Registry Agreement from its original Canadian corporate entity to a Cayman-based one this March.
As far as ICANN is concerned, Vox Pop’s legal address is the same address as the new This.sucks Ltd entity.
The New York entity’s official address is a PO Box at a strip-mall UPS store in small-town New York state.
It might be interesting, but probably not relevant, to note that Cayman Law’s domain name is owned, according to Whois, by a domainer who lost one of the first “-sucks.com” UDRP cases, back in 2003.
I asked Berard if Vox Pop had any links to the Cayman company but have not yet received a reply.
Everything.sucks
This.sucks has the same business model as was proposed by Vox Populi under its “Consumer Advocate Subsidy” program, which it proposed at the start of the year.
The company had planned to find an independent partner that would subsidize .sucks registrations in cases where the registrant was a genuine third-party critic (rather than the company itself).
The price was to be around $10 a year, the domains would be tied to a hosted forum service, and the name of the service would be Everything.sucks.
That domain, as I reported yesterday, now belongs to This.sucks Inc.
But Berard said This.sucks is not the Consumer Advocate Subsidy, for which a partner has not yet been found. He said:

This is not the consumer subsidy program we have hoped to foster with a non-profit, but it certainly is in keeping with the spirit of our effort. An effort, I must note, that continues. Somethings are harder to do than we’d like!

Why does this matter?
Whether This.sucks is a cloaked registry effort is important to intellectual property interests, which have claimed that subsidized .sucks prices are part of a “shakedown scheme” targeting trademark owners.
The IPC has long suspected that Everything.sucks was just going to be a case of Vox Pop hiding a registry service in a supposedly, but not actually, independent third-party company.
Brand owners that want to register their brand.sucks domain often have to pay over $2,000 a year, but the proposed subsidy would bring that price down to $10 as long as the registrant was not the trademark owner.
IPC president Greg Shatan told DI yesterday:

Any inkling that Vox Pop and This.sucks were linked and pretending not to be, and actively denying it, would be of great concern, not just to the IPC but to the ICANN community at large. It’s all highly suspicious. It’s very hard to believe that it is what they are claiming it is.

The concern centers on an apparent attempt to misrepresent their pricing and hide how much Vox Pop is actually being paid by brand owners vs. other registrants for domain registrations.
Any plans to monetize this.sucks sites would also be of considerable interest. The non-commercial nature of “sucks” sites (generically speaking) is often cited in response to cybersquatting concerns. I’m not sure how this would change that equation.

Back in March, as .sucks was getting ready to launch, the IPC wrote to ICANN to say Vox Pop was trying to “conspire with an (alleged) third party to ‘subsidize’ a complaint site should brand owners fail to cooperate in Vox Populi’s shakedown scheme”.
The IPC wrote (pdf):

Through this “subsidy,” Vox Populi effectively shows brand owners that, if they fail to register at an exorbitant price, a third party will be able to register for a pittance. This is an essential element of Vox Populi’s coercive scheme.

The IPC also claimed that the proposed subsidy would count as a “registry service” under the terms of Vox Pop’s contract and would therefore need approval by ICANN.
Berard told DI on Thursday, quite unambiguously, that This.sucks is “not a registry service”.
If This.sucks isn’t being financially supported by Vox Pop, it’s going to have to find a lot of revenue.
With a $199 basic registry fee, a 10,000-domain giveaway would cost almost $2 million.
Given that This.sucks is actively courting registrants of brand names — many of which are likely to appear on Vox Pop’s premium list — the cost could be literally 10 times as much.
Vox Pop has made it clear that it’s a subsidy, not a registry discount.
In a July blog post addressing perceived inaccuracies in the media coverage of .sucks, Berard wrote:

Whether a registration is subsidized, the price to the registrar and registry is unaffected. That is the nature of a subsidy. Neither is the program to be offered by the registry. We are talking to a number of free speech advocates and domain name companies to find the right partner.
When we do, likely sometime in the Fall, we will make sure that the information is clear and available so that, well, you can look it up.

(Thanks to George Kirikos for the tip about the existence of the Cayman company)

.gay flunks community review for second time

Kevin Murphy, October 9, 2015, Domain Policy

dotgay LLC has failed in its bid to eliminate its competitors for the new gTLD .gay for the second time.
After an unprecedented re-run of its Community Priority Evaluation, the applicant scored just 10 out of the 16 available points.
That’s exactly the same as it scored the first time around, exactly one year ago, still four points short of success.
For the second time, dotgay scored zero from a possible four points on the “Nexus” criteria — the link between the string “gay” and the community dotgay wants to serve.
The CPE panel decision reads:

The Panel has determined that more than a small part of the applicant’s defined community is not identified by the applied-for string, as described below, and that it therefore does not meet the requirements for Nexus.

The Panel has determined that the applied-for string does not sufficiently identify some members of the applicant’s defined community, in particular transgender, intersex, and ally individuals

As I explained a year ago, when the first CPE panel flunked the applicant for exactly the same reason, dotgay’s proposed community included lots of people who would not necessarily describe themselves as “gay”.
You, possibly, for example.
If you’re an “ally” of gay people, by for example supporting equal rights, then you would qualify as “gay” under dotgay’s definition.
If you’re transgender or intersex, you would similarly captured by this definition. The panel said:

Despite the applicant’s assertions to the contrary, its own evidence here shows that “gay” is most commonly used to refer to both men and women who identify as homosexual, and not necessarily to others. The applicant’s “umbrella term” argument does not accurately describe, for example, the many similar transgender stories in the mass media where “gay” is not used to identify the subject. In these cases, “transgender” is used because “gay” does not identify those individuals.

The panel concluded that .gay “does not identify or match” the target community, and scored it zero.
dotgay had a second roll of the dice because the first CPE panel was found to have committed a process error by not sufficiently verifying the company’s many dozens of letters of support from gay advocacy organizations.
However, this error did not relate to the Nexus criteria, so a victory was always going to be a long shot.
The .gay gTLD is now heading to auction, where Minds + Machines, Rightside and Top Level Design are the other bidders.
You can read the new decision in PDF format here.