Last resort gTLD auction loser wants share of $5m winning bid

An unsuccessful new gTLD applicant wants ICANN to share the proceeds of its “last resort” auction with itself and the other losing applicants.
Aesthetics Practitioners Advisory Network had applied for .salon, but found itself in a contention set with three other applicants and was ultimately beaten at auction by a winning bid of over $5 million from Donuts.
Now, the company has written to ICANN to ask for the money from the ICANN-run auction to be shared out among the losing bidders in much the same way as it is when a contention set goes to private auction.
APAN CEO Tina Viney wrote (pdf):

On the basis that ICANN received such a large amount ($5.175million) for the bidding of this auction it would be fair and equitable for the losing parties to be considered in the distribution of the winning financial bid. We believe that ICANN should review this consideration for losing parties who have had to incur numerous costs, not just the application fee, but also toward the preparation of documents so that we could meet with ICANN’s requirements. These include, but are not limited to registry fees, solicitor’s fees, financial services, not to mention the enormous amount of time that is required of an applicant in preparing for their application.
As a result, we respectfully request ICANN as part of their funds distribution policy to consider the applicants who did not win at the auction, BUT WERE SUCCESSFUL IN PASSING THE EVALUATION PROCESS.

She said that private auctions, which allow losing applicants to recoup some or all of their costs, should be mandatory when a majority of the applicants in a contention set want one.
In .salon’s case, one of the four applicants didn’t agree to a private auction, according to Viney. As Donuts is the enthusiastic pioneer of the private auction concept, that means the holdout was either DaySmart Software or L’Oreal.

New .jobs contract based on new gTLD agreement

ICANN and Employ Media are set to sign a new contract for operation of the .jobs registry which is based heavily on the Registry Agreement signed by all new gTLD registries.
.jobs was delegated in 2005 and its first 10-year RA is due for renewal in May 2015.
Because Employ Media, like all gTLD registries, has a presumption of renewal clause in its contract, ICANN has published the proposed new version of its RA for public comment.
It’s basically the new gTLD RA, albeit substantially modified to reflect the fact that .jobs is a “Sponsored TLD” — slightly different to a “Community” TLD under the current rules — and because .jobs has been around for nine years already.
That means it won’t have to sign a contract forcing it to run Sunrise or Trademark Claims periods, for example. It won’t have to come up with a Continued Operations Instrument — a financial arrangement to cover operating costs should the company go under — either.
Its commitments to its sponsor community remain, however.
ICANN said it conducted a compliance audit on Employ Media before agreeing to the renewal.
Employ Media remains the only gTLD registry to have been hit by a formal breach notice by ICANN Compliance. In 2011, it threatened to terminate its contract over a controversial proposal to all job aggregation sites to run on .jobs domains.
The registry filed an Independent Review Process complaint to challenge the ruling and ICANN eventually backed down in 2012.
The fight came about as a result of complaints from the .JOBS Charter Compliance Coalition, a group of jobs sites including Monster.com.

.health backer has cop-like takedown powers for all gTLDs in Japan

LegitScript, a US company focused on eradicating illegal online pharmacies, which backs the .pharmacy and .health gTLDs, has been given police-like powers to have domain names taken down in Japan.
It has also emerged that when IP Mirror, a brand protection registrar, was hit with an embarrassing ICANN contract-breach notice in November, it was as a result of a LegitScript complaint.
Under section 3.18.2 of ICANN’s 2013 Registrar Accreditation Agreement, registrars must have a 24/7 abuse hotline that can be used by “law enforcement, consumer protection, quasi-governmental or other similar authorities” to report illegal activity.
Registrars must act on complaints made to the hotline within 24 hours, but only authorities designated by national governments get to use it.
Now, it transpires that LegitScript has been formally designated a 3.18.2 authority by the Japanese Ministry of Health, Labor and Welfare.
That means the US company’s complaints about domains hosting potentially illegal pharmacy sites have the same weight as complaints from the Japanese police, when made to registrars that have an office in Japan, even if they’re headquartered elsewhere.
IP Mirror, which was recently acquired by CSC Digital Brand Services, is based in Singapore but has an office in Tokyo.
As far as I can tell, most of the top 10 registrars do not have offices in Japan. KeyDrive (Moniker, Key-Systems etc) may be the exception. GMO is the largest registrar based in Japan.
LegitScript announced its relationship with the Japanese ministry in September (I missed it at the time) and company president John Horton provided some context to the IP Mirror breach notice on CircleID today.
I only report the deal today because it strikes me as noteworthy that a private enterprise has been given the same powers under the 2013 RAA as law enforcement and government consumer protection agencies — and it’s not even in its home territory.
Horton told DI today that while LegitScript is legally based in the US and has offices in the EU, only Japan has so far formally granted it 3.18.2 powers. He said in an email:

We only have formal Section 3.18.2 designation in Japan at present. We have some other endorsements or recommendations by or on behalf of government authorities, although they do not specifically reference Section 3.18.2. We work closely with the Italian Medicines Agency and the Irish Medicines Board, for example, and report rogue Internet pharmacies in consultation with them.

Horton pointed out that anybody is able to to file abuse complaints under the 2013 RAA — and registrars are obliged to “take reasonable and prompt steps to investigate and respond appropriately”.
His CircleID piece cites two instances in which such complaints from LegitScript resulted in ICANN breach notices.
The chief difference is that under 3.18.2 registrars do not have much flexibility in their response times. They have to “take necessary and appropriate actions” within a black-and-white 24-hour deadline.

.love won by class action lawyers

It appears that the contested new gTLD .love has been won by the law firm Merchant Law Group, after an auction.
Minds + Machines, Richemont, Google and Donuts have all officially withdrawn their competing applications. I gather that withdrawals from Uniregistry and Famous Four Media are on their way.
.love would be MLG’s first successful new gTLD application.
The would-be portfolio applicant applied for eight strings, all of which were contested by others. It has withdrawn bids for .news, .club and .law after auctions.
MLG is odd as new gTLD applicants go. It’s a Canadian law firm that offers services across many areas of law but seems to specialize in class action lawsuits.
According to its application, .love will be positioned in the same space as .wed and .wedding:

.LOVE’s target markets are broad enough to maintain a financially viable TLD and distinct enough that the .LOVE TLD will not become ‘just another .info’. A .LOVE TLD will provide a unique space on the Internet for information and services related to the idea of love, engagements, marriage, and family. It will allow anyone to register a domain name and post information about products and services related to the idea of love, an engagement, a marriage, or family.

It is anticipated to be an open, unrestricted gTLD running on a CentralNic back-end.

Private auction settles controversial plural gTLD fight

A private auction has been used to settle a new gTLD contention set containing two different strings for the first time.
Afilias has won the right to run .pet after Google withdrew its application for .pet and Donuts withdrew its bid for .pets.
The two strings, one the plural of the other, had been placed into indirect contention by ICANN after a String Confusion Objection panel controversially ruled in August 2013 that .pet and .pets were too confusingly similar to be allowed to coexist.
This means that Donuts has been forced to withdraw an uncontested application.
Notably, it was Google that filed, fought and won the SCO complaint, and it didn’t even wind up with the TLD it wanted.
The final settlement of the contention set reflects ICANN’s inconsistent policy on plurals. Several plural/singular combinations — such as .career(s) and .photo(s) — already coexist in the DNS.

Donuts blames “license” problems for Chinese gTLD delays

Donuts says that problems obtaining “licenses” from the Chinese government are to blame for the fact that it is yet to launch any of its Chinese-script new gTLDs.
Currently, four of the company’s portfolio of 156 gTLDs are in Chinese. Three have been delegated to the DNS root but none of them have been launched.
The first, .游戏 (for “games”) has been in the root since October 2013, but does not yet have a firm date for Sunrise. Another, .商店 (“shop”), was delegated just last week, almost a year after Donuts signed its Registry Agreement with ICANN.
Donuts explained the .游戏 delay with the following statement:

The Chinese government division which handles this area is MIIT [Ministry of Industry and Information Technology] and in conjunction with [.cn registry] CNNIC they are still to advise of the licensing application process. We hope to make these TLDs available during the first half of 2015.

No additional details were available and it’s not clear what licenses Donuts — which is based in the United States — thinks it needs to obtain before launching.
I’ve heard rumors that China may introduce a licensing system in future, but other new gTLD registries with Chinese-script strings in their stable have managed to launch their gTLDs just fine without a Chinese government license.
TLD Registry — legally based in Dublin, Ireland, founded by Finns — launched .中文网 and .在线 earlier this year and has tens of thousands of names under management.
Thousands of those domains, which match Chinese geographic names, were allocated to Chinese government, however.
“No licenses are currently possible, because the new law is MIA,” TLD Registry chief marketing officer Simon Cousins told us.

ICANN 53 will be in Buenos Aires

ICANN has picked Buenos Aires, Argentina, for its 53rd public meeting.
The choice of city was approved by the ICANN board late last week.
The meeting will be held June 21-25 next year, sandwiched between February’s return to Singapore and October’s first foray into Dublin.
The BA venue has not been disclosed yet, but it’s possible ICANN will return to the Sheraton hotel and convention center.
It’s the third time ICANN has held one of its public meetings in Argentina. It visited BA last year for ICANN 48 and the sleepy seaside town of Mar Del Plata in 2005.
Having attended both previous meetings, I’ve discovered that it’s possible for a vegetarian to quickly become seriously malnourished in Argentina, so it’s quite likely DI’s coverage of ICANN 53 will heavily leverage the excellent remote participation facilities.
BA’s great if you love steak, however.

Black Ice suspended by ICANN

A small Israeli registrar has had its registrar accreditation suspended by ICANN.
Black Ice domains, which has a few thousand .com and .net domains under management, failed to comply with an ICANN audit and was overdue on its fees by over $5,000, according to the ICANN notice (pdf).
It won’t be allowed to sell gTLD domains or accept inbound transfers from December 19 to March 18, and may be terminated if it fails to come back into compliance.
The registrar is the fourth to have its accreditation suspended by ICANN in 2014. The organization has terminated a further seven registrars, down on the 11 terminated in the whole of 2013.

Community proposes way to replace US oversight of ICANN

The process of removing the US government from management of the DNS root system took a significant step forward today, with the publication of a community proposal for a transition.
The Cross Community Working Group, which convened itself earlier this year, has published a proposal to replace the US with a new contracting company and a bunch of committees.
The DNS community has been tasked with coming up with a way to transition stewardship of the IANA functions from the US National Telecommunications and Information administration, which said in March this year that it intends to relinquish its historic, but largely symbolic, Damoclean role.
After discussions which by any measure of ICANN policy-making have been forcibly swift, the 119-member CWG has now presented two broad options.
The first, a description of which forms the bulk of its report, would see ICANN overseen by a new, lightweight non-profit company managed by multi-stakeholder committees.
The other, which doesn’t get much airplay in the document, would see ICANN simply take over the NTIA’s responsibilities entirely. Accountability would be provided by enhanced accountability processes within the existing ICANN structure.
Under the primary proposal, the CWG was keen to avoid creating something ICANN-like to oversee ICANN, due to the complexity and cost, but it also decided that ICANN remains the best place to house the IANA function for the foreseeable future.
It’s proposed a new company, known currently as “Contract Co”, that would be replace the NTIA as the party that contracts with ICANN to run IANA. It would have “little or no staff”.
The contract itself would be developed and overseen by a Multistakeholder Review Team, comprising people drawn from each area of the ICANN community.
The precise make-up of this MRT is still open to discussion and will be, I suspect, the subject of some pretty fierce debate as the various competing interest groups wrestle to have themselves with the strongest possible representation.
Like the NTIA, the MRT would have the power to pick another entity to run IANA in future, should ICANN screw up.
A new Customer Standing Panel would comprise executives from gTLD and ccTLD registries — the “customers” of IANA’s naming functions — and would have the job of relaying the concerns of registries to the MRT, keeping ICANN accountable to its primary users.
Finally, there’d be an Independent Appeals Panel. Any IANA decision — presumably including the delegation or redelegation of a TLD — could be appealed to this IAP. This function would very probably be outsourced on a case-by-case basis to an existing arbitration body.
Is this worrying? Arbitration panels handling new gTLD disputes haven’t exactly inspired confidence in their ability to provide consistent — or even rational — decisions over the last year or so. Should the last word on what goes into or stays out of the DNS root really go to the same folk who think .通販 and .shop are too confusingly similar to coexist on the internet?
There doesn’t appear to be anything massively surprising in the proposal. When ICANN or its community try to solve a problem the answer is usually a new committee, and the ideas of MRTs, CSPs and IAPs do seem to mirror existing structures to an extent.
The whole thing can be downloaded and read over here.
There’s a December 22 deadline for comment. It will be submitted to the IANA Stewardship Transition Coordination Group by the end of January, with a view to getting a final proposal to the US government next summer in time for the hoped-for September 30 handover date.

Richemont pulls two dot-brand bids

Luxury goods company Richemont has withdrawn two of its original 14 new gTLD applications.
The company, which has been a vocal supporter of dot-brand gTLDs, pulled its bids for .netaporter and .mrporter this week.
Mr Porter and Net A Porter are fashion retail web sites for men and women respectively.
It’s not clear why these two bids have been withdrawn — the company isn’t commenting — but it’s certainly not a signal that Richemont is abandoning the new gTLD program completely.
The company has already entered into ICANN contracts for six dot-brands including .cartier, .montblanc and .chloe.
It has another five applications — four generics and one brand — that are still active: .手表 (“.watches”), .珠宝 (.jewelry), .watches, .jewelry and .jlc.
It has previously withdrawn an application for .love.