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ICANN has 100 new gTLD applicants

Kevin Murphy, February 13, 2012, Domain Policy

One hundred companies have registered to apply for generic top-level domains, according to ICANN senior vice president Kurt Pritz.
ICANN has decided not to provide a running commentary about how many applications have been received, but it did say that 25 companies registered in the first week the program was open.
“That number is now up to 100,” Pritz said today at the The Top Level conference in London.
He was referring to companies paying their $5,000 to sign up for ICANN’s TLD Application System, which is likely to be much smaller than the actual number of gTLD applications. Each TAS account can store up to 50 applications, Pritz said.
There are only 45 days left on the clock to register for a TAS account. After March 29, you’re in for a wait of at least three years (my estimate) before the opportunity comes around again.
Pritz’s revelation was one of the more interesting things to emerge during today’s half-day gathering at the offices of the PR firm Burson-Marsteller, which attracted about 40 attendees.
The other big surprise was that Scandinavian Airlines System Group, the dot-brand applicant that was due to give a presentation on its plans for .sas, was a no-show.
I gather that somebody more senior at SAS found out about the conference and decided that revealing all was not such a great business strategy after all.
Most dot-brand applicants are playing their hands close to their chest, even if they’re not heading into a contested gTLD scenario (which SAS may well be if the software firm SAS Institute also applies for .sas).
I also found it notable that there’s still substantial confusion about the program among some potential dot-brand applicants, several of which did show up as general attendees.
I talked to one poor soul who had read the latest revision of the 349-page Applicant Guidebook back-to-back after it was published January 11, trying to figure out what had changed.
He was apparently unaware that ICANN had simultaneously published a summary of the changes, which were very minimal anyway, in a separate document.
These are the types of applicant – people unfamiliar not only with ICANN’s processes but also even with its web site – that are being asked to hack the Guidebook to make the rules compatible with a dot-brand business model, remember.
One potential applicant used a Q&A session during the conference to bemoan the fact that ICANN seems intent to continue to move the goal-posts, even as it solicits applications (and fees).
Pritz and Olof Nordling, manager of ICANN’s Brussels office, reiterated briefly during their presentation today that the current public comment period on “defensive” applications could lead to changes to the program’s trademark protection mechanisms.
But this comment period ends March 20, just nine days before the TAS registration deadline. That’s simply not enough time for ICANN to do anything concrete to deter defensive applications.
If any big changes are coming down the pipe, ICANN is going to need to extend the application window. Material changes made after the applications are already in are going to cause a world of hurt.

Did Kazakhstan just screw up somebody’s new gTLD plans?

Kevin Murphy, February 10, 2012, Domain Registries

ICANN has approved a new country-code top-level domain for the nation of Kazakhstan.
The new .қаз, which is “kaz” is Cyrillic, will be delegated to the “Association of IT companies of Kazakhstan”, according to a resolution passed by ICANN’s board of directors this week.
But did this move just cause problems for a new gTLD applicant?
One cultural/geographic gTLD that was proposed back in 2009 is .kab, for the Kabylia region of Algeria and the Kabyle language and people.
It’s easy to see how kab/KAB and .қаз could be considered confusing during a string similarity review, though ICANN’s laughable Sword tool only gives them a visual similarity score of 49%.
The .kab application currently has a dead web site, so it’s quite possibly one of the many new gTLD projects that fizzled out during ICANN’s repeated delays launching the program.

M+M adds $14m to new gTLDs war chest

Kevin Murphy, February 10, 2012, Domain Registries

Top Level Domain Holdings has raised £9 million ($14.2 million) with a share sale, boosting its ability to apply for new generic top-level domains.
TLDH, which is listed on the Alternative Investment Market in London, owns registry provider Minds + Machines and has interests in a number of new gTLD joint ventures.
The shares were sold to “institutional and other investors” for 8.25p each, the company said.
TLDH now has a cash pile of about $25 million, CEO Antony Van Couvering said in a press release. Chairman Peter Dengate Thrush added:

TLDH management believes that the increased capital will allow it to increase significantly the number of applications it is able to make, allowing it to develop a wider, more diversified portfolio of names in multiple languages and scripts

The current cash balance would allow it to apply for 135 gTLDs, if it blew the whole lot on application fees.
I expect its actual number of applications to be more like 30, which would leave TLDH with about $20 million in reserve for fighting contested applications and start-up costs.
It could also try to raise some more money from the markets when some of its gTLD applications start being approved, of course.
Being the only public company entirely devoted to new gTLDs may leave TLDH in an interesting tactical position a few months from now — competing applicants are going to have a relatively good insight into the strength of its hand if any of its applications go to auction.

ICANN promises a second new gTLD round

Kevin Murphy, February 10, 2012, Domain Policy

Seeking to reduce the perceived need for defensive new gTLD applications, ICANN has repeated its promise to accept a second round of applications after the first is over.
“ICANN is committed to opening a second application window for the New gTLD Program as expeditiously as possible,” its board of directors resolved earlier this week.
No date has been revealed, but the resolution calls on ICANN staff to draft a “work plan” describing the things that need to happen before the second round begins.
Those include two or three reviews of the impact of the first round that ICANN has promised to its Governmental Advisory Committee and the US Department of Commerce.
It also depends to great extent on how many applications are submitted in the first round – which ICANN won’t know until April 12 – and how long they take to process.
The lack of a second round date is one of the big uncertainties hanging over the program, blamed in part for an expected influx of “defensive” dot-brand gTLD applications from companies with no interest in running a domain name registry.
ICANN’s commitment to a second round has never been in question – running the new gTLD program in rounds has been part of the policy from the outset, as the Applicant Guidebook explains. The only question is when it happens.
This week’s board resolution does not change that position, nor has it yet added clarity to the timing question.
But with ICANN increasingly worried about defensive dot-brands – which I think are one of the biggest PR risks to the program – some kind of statement was needed.
ICANN chair Steve Crocker said in a press release:

The important thing here is that the Board has erased any doubt that there will be a second application window for new generic Top-Level Domains. It’s not yet possible to set a definitive date for the next application period, but that will be determined after the current window closes.

Copenhagen gTLD scuppered by government

Kevin Murphy, February 8, 2012, Domain Registries

Plans afoot to apply for a city top-level domain for Copenhagen have been killed off after the Danish government saw little public support for the initiative.
Peter Larsen, CEO of the would-be applicant and local registrar Larsen Data (GratisDNS), said that the application is effectively over.
In order to get a city gTLD, applicants need a letter of support or non-objection from the relevant government(s). But for Copenhagen, that letter will now not be forthcoming.
The Danish Ministry of Business and Growth proposed an amendment to the country’s domain name law in November that would have enabled it to give consent to the .cph bid, Larsen said.
But due to a “lack of interest” from the public, the amendment has been shelved.
“We have nowhere to ask for the letter of non-objection, and that is killing the .cph project very effective,” Larsen said in an email.
The governments of other European capitals, including Paris, London and Berlin, are in favor of city gTLDs and are backing applications.

First ICANN CEO candidate revealed

Kevin Murphy, February 8, 2012, Domain Policy

Former ICANN director Njeri Rionge has emerged as a possible candidate for the soon-to-be-vacated CEO’s job.
Rionge is a Kenyan national, described last year by Forbes.com as “one of Kenya’s most successful and revered serial entrepreneurs”.
She founded Wananchi Online, a successful ISP in East Africa, and the business consultancy Ignite Consulting.
Her candidature was revealed in an open letter posted today by Sophia Bekele, CEO of DotConnectAfrica, a likely applicant for the .africa generic top-level domain.
DCA and Rionge have severed ties due to her new CEO aspirations, according to Bekele:

At the end of 2011, Ms. Njeri Rionge had expressed to DCA Executive Director, a direct interest in competing for the soon to be vacant ICANN CEO position, and for this reason, was kindly requested by DCA to submit her resignation from the DCA Strategic Advisory Board for ethical/conflict of interest reasons.
This was done after due internal consultations with concerned parties. Accordingly, Njeri Rionge is no longer involved in DCA and DCA Registry Ltd either as a Board Member or shareholder and will not represent neither would she be affiliated with DCA in any capacity, now or in the near future.

Rionge served on the ICANN board of directors as a Nominating Committee appointee for two terms between 2003 and 2008.
While there’s a ban on current directors applying for the CEO position, I don’t believe there’s any such prohibition on former directors.
ICANN is currently interviewing would-be replacements for Rod Beckstrom, who intends to leave the organization in July after a three-year term.
No other candidates have been revealed to date.
The only other name being circulated in the rumor mill is Lesley Cowley, CEO of .uk registry Nominet and current chair of ICANN’s ccNSO, but I’ve no idea if she’s even interested.

Dyson says new gTLDs will kill the DNS

Kevin Murphy, February 7, 2012, Domain Tech

Former ICANN chair Esther Dyson thinks apps and new gTLDs will cause internet users to abandon domain names.
In an article for TechPresident entitled “Is the Open Web Doomed? Open Your Eyes and Relax“, Dyson writes:

Right now, we’re moving slowly from open data and APIs and standards, to a world of Facebook and apps. We’re likely to see abandonment of the DNS by consumers both because of those apps, and a tragedy of the commons where new Top-Level Domain names (.whatevers and .brands) confuse users and lead to more use of the search box or links within apps.

The point seems to run counter to the rest of her argument, which is that the open web will continue to be used even while Facebook carves away its own little corner of it and that the whole “walled garden vs open web” war is fought in cycles.
(At least, I think that’s what she’s saying, it’s not an easy read.)
I always find these arguments confusing.
If consumers are not using the DNS, where are these “search boxes” and “links within apps” sending them? IP addresses? How do the consumers know they got to where they wanted to go?

ICANN worried about defensive gTLDs

Kevin Murphy, February 7, 2012, Domain Policy

Why is ICANN so misunderstood?
That’s the question at the heart of a public comment period into concerns about “defensive” new generic top-level domain applications that the organization opened up last night.
ICANN wants to know why so many companies seem to think they’ll need to apply for a dot-brand gTLD even though they don’t want one.

there are reports that parties believe that they will need to submit defensive gTLD applications to protect their trademarks, regardless of whether they are interested in using or developing a gTLD.
ICANN seeks public comment on the sources of this perception and how it can be addressed.

The comment period serves three purposes — it’s designed to raise awareness about rights protection mechanisms as well as soliciting input about defensive applications.
It will also let ICANN show the US Congress, which is worried about this kind of thing, that it’s doing something to address the problem.
So why are so many people worried about the perceived need to defensively apply for dot-brands?
The main answer, I think, is pretty straightforward:
The Applicant Guidebook is 349 pages long.
Hardly anybody has read the damn thing, not even some of the “experts” that persist on appearing in the media to complain about numeric gTLDs or to confidently predict GE and LG will apply for dot-brands.
So what do people do? They get somebody else who has read it to explain what it means.
These somebody elses are either consultants and registry providers, which are financially incentivized to get companies to apply, or they’re organizations that want the whole program stopped, which are not above deliberately misrepresenting the rules in order to whip up outrage.
I’m not casting every consultant in the same light here, of course. Many will turn away business if it’s not a good fit, but let’s not pretend that there hasn’t been scaremongering.
And let’s remember that for most regular companies registering a domain name is not an opportunity, it’s a headache. It’s at best a minor irritation and at worst a costly shakedown.
That thinking has clearly translated into the new gTLD space.
Poorly informed people think they’re being asked to register a very expensive domain name, and in their experience registering a domain name is a defensive measure 99% of the time.
Because ICANN has spent the last six months painstakingly avoiding saying anything positive about new gTLDs, it’s been left to the consultants and registries to try to explain the opportunities.
They’re understandably looked on with suspicion, and not only because of the aforementioned distrust of the industry – this new gTLD thing is unproven and there’s a perception that previous gTLDs have “failed” because you don’t see a .biz every time you turn on the TV.
Anyway, speaking of shakedowns, DomainIncite PRO subscribers have access to an in-depth analysis of scenarios in which “defensive” applications may and may not be appropriate. Read it here.

RIAA backs .music new gTLD bid

Kevin Murphy, February 7, 2012, Domain Registries

The Recording Industry Association of America has picked a side. It’s supporting Far Further’s application for the .music generic top-level domain, according to the company.
The RIAA is one of over a dozen music industry groups that are currently listed as supporters of the Far Further bid.
Among them is the influential International Federation of Phonographic Industries and The Recording Academy, which hands out the Grammys.
The support was hard won, according to Far Further president John Styll.
“The RIAA put together a loose coalition of organizations from sectors from around the world and ran a pretty intensive RFI process,” he said.
The company beat off competition from several other respondents and received word that the RIAA would support its .music application a few months ago, he said.
It’s been clear for some time that any .music applicant that does not have the backing of the RIAA will very likely get beaten up by the notoriously protective organization instead.
The RIAA wrote to the US Department of Commerce last August to demand that any music-themed gTLD should implement “heightened security measures” to prevent copyright infringement.
And that’s pretty much what Far Further has promised.
Its .music would be restricted, along the same lines as gTLDs such a .pro, to card-carrying members of what the company calls “accredited Global Music Community Members”.
“It’s not open to everyone,” Styll said. “You’d have to join an organization.”
Amateur bands would have to be members of an accredited songwriters association to get a .music address, for example.
In addition, the content of .music web sites would be policed in a similar way to .xxx or .cat, with regular spidering to ensure the content does not break the rules.
“We’re definitely looking at content, and besides the vetting process, in the registrant agreement there’ll be a warrant you’re not going to violate anyone’s intellectual property rights,” said Styll.
“We’re retaining the right to conduct searches,” he said. “If we find evidence of infringing activity we’ll give you the opportunity to correct that, or we can take down the site.”
Far Further is not the only known .music applicant, of course.
Constantine Roussos of Music.us and MyTLD has been passionately campaigning for the gTLD for years, and his enthusiasm has not waned even if his chances have.
“We’re still going after .music,” he confirmed yesterday. He added that he expects it to be a two-horse race, given these recent developments.
Make no mistake, with backing from the RIAA and other influential industry groups Far Further is now the runaway favorite in the battle for .music. Roussos has quite a fight on his hands.
DomainIncite PRO subscribers can read more about it here.

ICANN board seat up for reelection

Kevin Murphy, February 3, 2012, Domain Policy

ICANN’s Address Supporting Organization has kicked off an election for one of its two official representatives on the ICANN board of directors.
Director Ray Plzak sees his three-year term come to an end in June. He’s standing for reelection, but has competition from three other candidates.
The ASO represents the oft-overlooked IP address side of the ICANN house. Its members belong to the five Regional Internet Registries that are responsible for doling out IP space.
In this election, all four candidates are from ARIN, the North American RIR community: Plzak, Eric Brunner-Williams, Martin Levy and William Manning.
The winner will be selected by the ASO’s ruling Address Council in May. Until April 19, the ASO wants public comments on the candidates.