Latest news of the domain name industry

Recent Posts

Identify.com terminated

Kevin Murphy, March 24, 2015, Domain Registrars

ICANN has terminated the accreditation of defunct registrar Identify.com.

The company received its final compliance notice (pdf) last week and will lose its contractual ability to sell gTLD domains April 17.

Not that many will notice or care.

According to the notice, ICANN has been informed that the company is no longer in business.

Identify.com does not currently resolve to a web page, at least for me. According to registry reports, it had just six domain names under management in November.

Back in 2011, its DUM was measured in the low hundreds. Most transferred out or deleted in the meantime.

According to the notice, the registrar failed to provide information about its dealings with the owner of a specific domain name, patschool.com.

According to DomainTools, that domain has never been registered with Identify.com.

It’s ICANN’s third registrar termination in 2015.

Verisign adds 750,000 .com names instantly with reporting change

Kevin Murphy, March 23, 2015, Domain Registries

Verisign has boosted its reportable .com domain count by almost 750,000 by starting to count expired and suspended names.

The change in methodology, which is a by-product of ICANN’s much more stringent Whois accuracy regime, happened on Friday afternoon.

Before the change, the company reported on its web site that there were 116,788,107 domains in the .com zone file, with another 167,788 names that were registered but not configured.

That’s a total of 116,955,895 domains.

But just a few hours later, the same web page said .com had a total of 117,704,800 names in its “Domain Name Base”.

That’s a leap of 748,905 pretty much instantly; the number of names in the zone file did not move.

.net jumped 111,110 names to 15,143,356.

The reason for the sudden spikes is that Verisign is now including two types of domain in its count that it did not previously. The web page states:

Beginning with the first quarter, 2015, the domain name base on this website and in subsequent filings found in the Investor Relations site includes domains that are in a client or server hold status.

I suspect that the bulk of the 750,000 newly reported names are on clientHold status, which I believe is used much more often than serverHold.

The clientHold EPP code is often applied by registrars to domains that have expired.

However, registrars signed up to the year-old 2013 Registrar Accreditation Agreement are obliged by ICANN to place domains on clientHold status if registrants fail to respond within 15 days to a Whois verification email.

The 2013 RAA reads (my emphasis):

Upon the occurrence of a Registered Name Holder’s willful provision of inaccurate or unreliable WHOIS information, its willful failure promptly to update information provided to Registrar, or its failure to respond for over fifteen (15) calendar days to inquiries by Registrar concerning the accuracy of contact details associated with the Registered Name Holder’s registration, Registrar shall either terminate or suspend the Registered Name Holder’s Registered Name or place such registration on clientHold and clientTransferProhibited, until such time as Registrar has validated the information provided by the Registered Name Holder.

Last June, registrars claimed that the new policy — which came after pressure from law enforcement — had resulted in over 800,000 domains being suspended.

It’s an ongoing point of contention between ICANN, its registrars, and cops.

Verisign changing its reporting methodology may well be a reaction to this increase in the number of clientHold domains.

While its top-line figure has taken a sharp one-off boost, it will still permit daily apples-to-apples comparisons on an ongoing basis.

UPDATE:

My assumption about the link to the 2013 RAA was correct.

Verisign CFO George Kilguss told analysts on February 5.

Over the last several years, the average amount of names in the on-hold status category has been approximately 400,000 names and the net change year-over-year has been very small.

While still immaterial, during 2014, we saw an increase in the amount of names registrars have placed on hold status, which appears to be a result of these registrars complying with the new mandated compliance mechanisms in ICANN’s 2013 Registrar Accreditation Agreement or RAA.

In 2014, we saw an increase in domain names placed on hold status from roughly 394,000 names at the end of 2013 to about 870,000 at the end of 2014.

.tk registrar gets ICANN breach notice

Kevin Murphy, March 19, 2015, Domain Registrars

OpenTLD, the registrar owned by .tk registry Freenon, has received an odd contract-breach notice from ICANN.

The company apparently forgot to send ICANN a Compliance Certificate for 2014, despite repeated pestering by ICANN staff.

It’s the first time I’ve seen ICANN issue a breach notice (pdf) for this reason.

A Compliance Certificate, judging by the 2013 Registrar Accreditation Agreement, seems to be a simple form letter that the CEO must fill in, sign and submit once a year.

Coming back into compliance would be, one imagines, five minutes’ work.

As well as being an ICANN-accredited registrar, OpenTLD is part of Freenom. That’s the registry that repurposes under-used ccTLDs with a “freemium” model that allows free registrations.

Its flagship, .tk, is the biggest ccTLD in world, with over 30 million active names.

ICANN slashes new gTLD revenues by 57%, forecasts renewals at 25% to 50%

Kevin Murphy, March 19, 2015, Domain Registries

ICANN has dramatically reduced the amount of revenue it expects to see from new gTLDs in its fiscal 2015.

According to a draft 2016 budget published this morning, the organization now reckons it will get just $300,000 from new gTLD registry transaction fees in the year ending June 30, 2015.

That’s down 75% from the $1.2 million predicted by its FY 2015 budget, which was approved in December.

Transaction fees are paid on new registrations, transfers and renewals, but only by gTLDs with over 50,000 billable transactions per year.

Today, only 14 of the 522 delegated new gTLDs have added more than 50,000 names. ICANN says that only 17 registries are currently paying transaction fees.

It’s not only the transaction fees where ICANN has scaled back its expectations, however.

The organization also expects its fixed new gTLD registry fees — the $6,250 each registry must pay per quarter regardless of volume — to come in way below targets.

The new budget anticipates $12.7 million from fixed registry fees in FY15, down 24% from the $16.7 million in its adopted FY15 budget.

This is presumably due to larger than expected numbers of would-be registries either withdrawing or dragging their feet in the path to delegation.

Registrar transaction fees are now anticipated at $1.1 million, compared to $2 million and $3.2 million predicted by the adopted and draft FY15 budgets respectively.

Taking all three revenue sources together, ICANN now expects new gTLDs to contribute just $14.1 million to its fiscal 2015 revenue, down 29% from the $19.8 million forecast in its adopted FY15 budget.

That’s down 57% from the $32.7 million in the original draft budget for the period.

The current budget assumes 15 million new gTLD registrations in the 12-month period, revised down from the 33 million domains predicted in its draft FY15 budget a year ago.

With just a few months left until the end of the fiscal year, there are currently fewer than 4.5 million domains in published new gTLD zone files.

ICANN plainly no longer expects new gTLDs to get anywhere close to 15 million domains.

Renewals expected to be weak, weak, weak

The organization is taking a conservative view about renewals for 2016.

The 2016 budget expects renewals at just 50% for regular gTLDs and 25% for registries — presumably ICANN has .xyz in mind — that gave away domains for free at launch.

That 50% is both ICANN’s “best” and “high” estimate. Its “low” estimate is 35% for non-free domains.

Obviously, 50% is a very low renewal number for any registry (70%+ is the norm). Even شبكة. (.shabaka) told us recently that 55% of its registrants are renewing before their domains expire.

Conversely, 25% may be a very optimistic number for free domains (when Afilias gave away free .info names a decade ago, almost all of them dropped rather than being renewed).

For fiscal 2016, which begins July 1, 2015, ICANN expects new gTLD revenue to be $24.1 million — about a quarter off its original plan for 2015.

That breaks down as $19.9 million from registry fixed fees, $2 million from registry transaction fees, and $2.3 million from registrar transaction fees.

ICANN said it is is assuming that it will start the year with 602 registries and end it with 945.

The proposed FY16 budget, now open for comment, can be found here.

For comparison purposes, the adopted FY15 budget is here (pdf) and the draft FY15 budget is here (pdf).

Here’s why trademark owners will think .sucks sucks

Kevin Murphy, March 13, 2015, Domain Registries

Vox Populi Registry is to launch its .sucks gTLD at the end of the month, and its plans are likely to piss off trademark owners no end.

As previously reported, the company has backpedaled on its idea of pricing its sunrise period names at $25,000 per name per year, but it’s introducing some new concepts that seem almost designed to get hackles up in the IP community.

From March 30 to May 29, any company with a trademark registered in the Trademark Clearinghouse will be able to buy their matching .sucks domains at sunrise for $2,499. That’s also the annual renewal fee.

It’s a tenth of the price previously touted, but still pretty steep even by sunrise standards.

Vox Pop isn’t doing anything particularly unusual with its sunrise, which is governed by policies closely regulated by ICANN.

But its big new idea is its “Sunrise Premium” list, a list of strings dominated by famous trademarks.

Vox Pop CEO John Berard told DI yesterday that the Sunrise Premium list has been compiled from strings registered or blocked in other TLDs’ sunrise periods.

While he declined to characterize it as a list of trademarks, he acknowledged that it will be trademark-heavy.

If your mark is on this list, you will never be able to get a .sucks domain at the regular general availability retail price of $249 a year. It will always be $2,499 a year.

Despite the name, Sunrise Premium names are only available during general availability, which begins June 1.

On the one hand, this mandatory premium pricing for the world’s most well-defended marks appears to have benefits for some trademark owners.

While Sunrise Premium names are not restricted to owners of matching marks, the $2,499 fee applies whether you’re the mark owner, a legitimate third-party registrant, or a cybersquatter.

So the high price looks like a deterrent to cybersquatting, suggesting that Vox Pop is fighting from the IP corner.

But then we discover that Sunrise Premium names will never be eligible for the .sucks “Block” service — similar to .xxx’s Sunrise B, a Block is a non-resolving registry reservation — which is expected to retail at a discounted $199 per year.

Berard said that the registry wants to encourage use.

“If you are on the Sunrise Premium list or want a premium name, those can’t be blocked,” Berard said. “It’s all part and parcel of us trying to put more power in the hands of individuals and to cultivate a commitment on behalf of the commercial world to participate in the dialogue.”

But the fact remains: if you have a track record of defensively registering your trademark, Vox Pop is essentially penalizing you with higher fees.

Feel those hackles rising yet?

Vox Pop’s stated goals are to give companies a way to manage customer feedback and individuals a way to exercise their rights to criticize.

“A company would be smart to register its name because of the value that consumer criticism has in improving customer loyalty, delivering good customer service, understanding new product and service possibilities,” Berard said.

“They’re spending a lot more on marketing and customer service and research. This domain can another plank in that platform,” he said. “On the other hand, we also want to make sure that these names are also accessible to individuals who have something to say.”

Companies on the Sunrise Premium list have an additional thing to worry about: the .sucks Consumer Advocate Subsidy, which will bring the price of a .sucks domain down to $9.95 per year.

The subsidy will only be available to registrants unaffiliated with the trademark-owning company, and they’ll have to direct their domains to a discussion forum platform called Everything.sucks.

Berard said Everything.sucks will be operated by a third party, but could not yet disclose the details.

The subsidy program will be available on regular and Sunrise Premium names, but not Sunrise names. It is not expected to launch until September.

It’s not yet clear how flexible and configurable the service will be.

It seems likely that if somebody wants to write a blog, say, criticizing a certain company, product, service or public figure, they will incur the usual $249 annual reg fee.

It’s not exactly “free” speech.

On the whole, the finalized policies and fees may look like they’re specifically designed to irk the IP lobby, but they do seem to be aligned with Vox Pop’s mission statement.

If you’re of the view that trademark owners should have the sole right to use the string matching their mark as a domain name, you’re likely to be unhappy with what Vox Pop is doing.

If, on the other hand, you’re an advocate of the right of every free person to stick it to The Man, you may view the policies more favorably.

Either way, it could be a money-spinner for Vox Pop.

I’m expecting .sucks to be only the third new gTLD to top 1,000 sunrise registrations (assuming .porn and .adult will be the first).

Assuming the registry’s slice of the $2,499 fee is over $2,000, the company is looking to clear in excess of $2 million in annually recurring sunrise revenue alone.