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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.

ICANN loosens Whois privacy rules for registrars

Kevin Murphy, April 20, 2017, Domain Policy

ICANN has made it easier for registries and registrars to opt-out of Whois-related contractual provisions when they clash with local laws.

From this week, accredited domain firms will not have to show that they are being investigated by local privacy or law enforcement authorities before they can request a waiver from ICANN.

Instead, they’ll be also be able to request a waiver preemptively with a statement from said authorities to the effect that the ICANN contracts contradict local privacy laws.

In both cases, the opt-out request will trigger a community consultation — which would include the Governmental Advisory Committee — and a review by ICANN’s general counsel, before coming into effect.

The rules are mainly designed for European companies, as the EU states generally enjoy stricter privacy legislation than their North American counterparts.

European registrars and registries have so far been held to a contract that may force them to break the law, and the only way to comply with the law would be to wait for a law enforcement proceeding.

ICANN already allows registrars to request waivers from the data retention provisions of the 2013 Registrar Accreditation Agreement — which require the registrar to hold customer data for two years after the customer is no longer a customer.

Dozens of European registrars have applied for and obtained this RAA opt-out.

Pirate Bay founder launches piracy-friendly domain privacy service

Kevin Murphy, April 19, 2017, Domain Registrars

The founder of controversial BitTorrent search engine The Pirate Bay has entered the domain name market with a new proxy service.

It’s called Njalla, it’s based in a Caribbean tax haven, and it says it offers a higher level of privacy protection than you get anywhere else.

The company described itself in its inaugural blog post today like this:

Think of us as your friendly drunk (but responsibly so) straw person that takes the blame for your expressions. As long as you keep within the boundaries of reasonable law and you’re not a right-wing extremist, we’re for promoting your freedom of speech, your political weird thinking, your kinky forums and whatever.

Founder Peter Sunde was reluctant to describe Njalla as a proxy registration service, but it’s difficult to think of another way of describing it.

When you buy a domain via the company’s web site, the name is registered by Njalla for itself. You can still use the domain as you would with a regular registrar, but the name is “owned” by Njalla (1337 LLC, based in Saint Kitts & Nevis).

The company is a Tucows reseller via OpenSRS, and it supports almost all gTLDs and several ccTLDs (it’s declined to support Uniregistry due to recent price increase announcements).

Prices are rather industry standard, with a .com setting you back €15 ($16).

The big difference appears to be that the service doesn’t want to know anything about its registrants. You can sign up with just an email address or, unusually, an XMPP address. It doesn’t want to know your name, home address, or anything like that.

This means that whenever Njalla receives a legal request for the user’s identity, it doesn’t have much to hand over.

It’s based on Nevis due to the strong privacy laws there, Sunde said.

Under what circumstances Njalla would suspend service to a customer and hand over their scant private information appears to be somewhat vague and based on the subjective judgement or politics of its management.

“As long as you don’t hurt anyone else, we’ll let you do your thing,” Sunde said.

Child abuse material is verboten. Spam is in a “gray zone” (although forbidden by Njalla’s terms of service).

Copyright infringement appears to be just fine and dandy, which might not be surprising. Sunde founded The Pirate Bay in 2003 and spent time in prison in Sweden for assisting copyright infringement as a result.

“You don’t hurt people by putting a movie online,” Sunde said. “You do hurt someone by putting child porn or revenge porn or stuff like that… If you look at any statistics on file sharing, it proves that the more people file-share the more money goes into the ecosystem of the media.”

While this is likely to upset the IP lobby within the domain name community, I think there’s a possibility that existing ICANN policy will soon have an impact on Njalla’s ability to operate as it hopes.

ICANN is in the process of implementing a privacy/proxy services accreditation program that will require registrars to only work with approved, accredited proxy services.

Sunde thinks Njalla doesn’t fall into the ICANN definition of a proxy service, and said his lawyers agree.

Personally, I can’t see the distinction. I expect ICANN Compliance will probably have to make a call one way or the other one day after the accreditation system comes online.

IANA boss quits ICANN

Kevin Murphy, April 19, 2017, Domain Policy

The head of IANA is to leave the organization, ICANN announced this week.

Elise Gerich, currently vice president of IANA Services at ICANN and president of Public Technical Identifiers (PTI), will leave in October, according to a blog post.

She’ll stick around long enough to oversee the DNS root’s first DNSSEC Key-Signing Key rollover, which is due to go ahead October 11.

Gerich has been VP of IANA since May 2010, and took on the job of PTI president last October when the IANA function was restructured to remove the US government from the mix.

ICANN said it will start the hunt for her replacement shortly.

Companies losing $10 BILLION by ignoring new gTLDs — report

Kevin Murphy, April 11, 2017, Domain Registries

The world economy is “conservatively” losing out on almost $10 billion of annual revenue due to a lack of support for new gTLDs and internationalized domain names, according to an ICANN-commissioned research report.

The report, conducted by Analysys Mason for the semi-independent Universal Acceptance Steering Group, calculated that patchy new gTLD support means $3.6 billion of activity is lost, with lack of IDN support costing $6.2 billion.

Despite “new” gTLDs being around for a decade and a half, there are still plenty of web sites and apps that incorrectly assume that all TLDs are either two or three characters. Others don’t support non-Latin scripts.

This leads to internet users abandoning transactions, the report says, when their email addresses are rejected as invalid.

Mason calculated the $3.6 billion number by multiplying the estimated number of email addresses using new gTLD domains (152 million) by the estimated average annual revenue generated per email address ($360), then calculating what portion of these transactions cannot happen due to incomplete TLD support.

Earlier research by .CLUB Domains suggests that 13% of sites do not support new gTLDs, so that’s the number Mason used. The researchers then cut the number in half, to account for the 50% of people it reckons would simply switch to an email address in a legacy TLD name.

That gets you to $3.6 billion of potential revenue lost for want of gTLD support.

Another, more cynical way to spin this would be to say that new gTLDs are causing $3.6 billion of economic damage. After all, if everyone were to use legacy TLDs there would be no problem.

For the IDN number, Mason calculated how many users of five major language groups (Russian, Chinese, Arabic, Vietnamese and Indian languages) are not currently online, then estimated how much revenue would be generated if just 5% of these users (17 million people) were persuaded online by the existences of IDN TLDs.

The report was commissioned in order to raise awareness of the financial benefits of universal acceptance.

The UASG has spent most of its efforts so far focusing on UA as a “bug fix” to be communicated to engineers, so the report is intended to broaden its message to catch the attention of the money people too.

The report, which goes into much more detail about how the numbers were arrived at, can be downloaded here.