Latest news of the domain name industry

Recent Posts

.amazon frozen AGAIN as endless government games continue

Kevin Murphy, June 25, 2019, Domain Policy

Amazon’s application for the .amazon gTLD has yet again been frozen, after a South American government invoked ICANN’s appeals process.

The bid, as well as applications for the Chinese and Japanese versions, were returned to “on-hold” status at the weekend, after Colombia filed a formal Request for Reconsideration, an ICANN spokesperson confirmed to DI.

“The processing toward contracting of the .AMAZON applications has been halted pending the resolution of Request 19-1, per ICANN organization’s normal processes,” the spokesperson said.

This means the applications could remain frozen for 135 days, until late October, while ICANN processes the request. It’s something that has happened several times with other contested gTLDs.

Colombia filed RfR 19-1 (pdf) on June 15. It demands that ICANN reverses its board’s decision of May 15, which handed Amazon a seemingly decisive victory in its long-running battle with the eight governments of the Amazon Cooperation Treaty Organization.

ACTO’s members believe they should have policy control over .amazon, to protect the interests of their citizens who live in the region they share.

To win an RfR — something that hardly ever happens — a complainant has to show that the ICANN board failed to consider pertinent information before it passed a resolution.

In Colombia’s case, it argues that the board ignored an April 7 letter (since published in PDF format here) its Governmental Advisory Committee representative sent that raises some interesting questions about how Amazon proposes to operate its TLDs.

Because .amazon is meant to be a highly restricted “dot-brand” gTLD, it would presumably have to incorporate Specification 13 into its ICANN registry agreements.

Spec 13 releases dot-brands from commitments to registrar competition and trademark protection in exchange for a commitment that only the brand itself will be able to own domains in the TLD.

But Colombia points out that Amazon’s proposal (pdf) to protect ACTO governments’ interests would give the eight countries and ACTO itself “beneficial ownership” over a single domain each (believed to be names such as co.amazon, .br.amazon, etc).

If this means that Amazon would not qualify for Spec 13, it could follow that ICANN’s board made its decision to continue processing .amazon on faulty assumptions, Colombia argues.

Colombia points to the case of .sas, a dot-brand that is apparently shared by two companies that have the same brand, as a possible model for shared management of .amazon.

RfRs are handled by ICANN’s Board Accountability Mechanisms Committee.

BAMC took just a couple of days to rule out (pdf) Colombia’s request for “urgent reconsideration”, which would reduce its regular response time from 90 days to 7 days.

The committee said that because the .amazon applications were being placed back on-hold as part of normal procedure during consideration of an RfR, no harm could come to Colombia that would warrant “urgent” reconsideration.

According to ICANN’s spokesperson, under its bylaws the latest the board can respond to Colombia’s request is October 28.

At a GAC session at the ICANN 65 meeting in Marrakech, taking place right now, several ACTO governments have just spent over an hour firmly and publicly protesting ICANN’s actions surrounding .amazon.

They’re still talking as I hit “publish” on this post.

In a nutshell, they believe that ICANN has ignored GAC advice and reneged on its commitment to help Amazon and ACTO reach a “mutually acceptable solution”.

What time is it? For ICANN, even that can be a controversial question

Kevin Murphy, June 21, 2019, Domain Tech

ICANN has found itself involved in a debate about whether Russia’s 2014 annexation of Crimea should be recognized.

It’s not unusual for ICANN to find itself in geopolitical controversies — see .amazon for the most recent example — but this time, it’s not about domain names.

It’s about time zones.

One of the little-known functions ICANN provides via its IANA division is the hosting of the so-called TZ Database, which keeps track of all international time zones, daylight savings time practices, and so on.

The database is referenced by scores of operating systems, web sites, libraries and software development kits. It’s used by MacOS, many major Unix/Linux distributions, Java and PHP.

IANA took over the database in 2011, after the original administrator, David Olson, was hit with a bogus lawsuit from an astrology company.

It’s currently managed by University of California computer scientist Paul Eggert. He’s not an ICANN employee. He’s responsible for making changes to the database, which IANA hosts.

There are no complex layers of policy-making and bureaucracy, just an ICANN-hosted mailing list. it very much harks back to the pre-ICANN/Jon Postel/Just A Guy model of international database administration.

But because time zones are set by the governments of territories, and the ownership of territories is sometimes in dispute, the TZ Database often finds itself involved in political debates.

The latest of these relates to Crimea.

As you will recall, back in 2014 the Russian Federation annexed Crimea — part of Ukraine and formerly part of the Soviet Union.

The United Nations condemned the move as illegal and still refuses to recognize the region as part of Russia. The de facto capital city of Crimea is now Simferopol.

As part of the takeover, Russia switched its new territories over to Moscow Time (MSK), a time zone three hours ahead of UTC that does not observe daylight savings.

The rest of Ukraine continues to use Eastern European Time, which is UTC+2, and Eastern European Summer Time (UTC+3).

This means that in the winter months, Crimea is an hour out of whack with the rest of Ukraine.

Currently, the TZ Database’s entry for Simferpol contains the country code “RU”, instead of “UA”.

This means that if you go to Crimea and try to configure your Unix-based system to the local time, you’ll see an indication in the interface that you’re in Russia, which understandably pisses off Ukrainians and is not in line with what most governments think.

You can check this out on some time zone web sites. The services at time.is and timeanddate.com both refer to Europe/Simferopol as being in Ukraine, while WorldTimeServer says it’s in Russia.

The TZ Database mailing list has recently received a couple of complaints from Ukrainians, including the head of the local cyber police, about this issue.

Serhii Demediuk, head of the Cyberpolice Department of the National Police of Ukraine, wrote in December:

by referring Crimea with the country code “RU”, your organization actually accepts and supports the aggressive actions of the Russian Federation who’s armed forces annexed this part of Ukraine. Such recognition may be considered as a criminal offense by the Ukrainian criminal law and we will be obliged to start formal criminal proceedings

It’s the longstanding principle of the TZ Database administrators that they’re not taking political positions when they assign country-codes to time zones, they’re just trying to be practical.

If somebody shows up for a business meeting in Crimea in December, they don’t want their clock to be an hour behind their local host’s for the sake of political correctness.

But Eggert nevertheless has proposed a patch that he believes may address Ukrainian concerns. It appears to have Simferopol listed as both RU and UA.

ICANN launches cash-for-kids scheme

Kevin Murphy, June 19, 2019, Domain Policy

ICANN will hand over cash to help community members cover their childcare commitments, the organization announced yesterday.

If you show up to an ICANN public meeting with an ankle-biter under 12 years of age, ICANN will give you up to $750 to cover the cost of babysitting.

You’ll have to show receipts, and ICANN will not cover stuff like travel, lodging, tourism or other costs that parents would have during the normal course of owning a kid.

Only volunteer community members will qualify, not staffers. The full list of rules can be found here.

While the announcement may seem unusual, it does not come out of the blue. There have been a number of public calls, from a handful of single parents, for ICANN to lay on some kind of on-site childcare services over the last several years.

It isn’t doing that, however. Good grief, imagine the optics if ICANN accidentally killed a kid…

Instead, it will only give parents a list of nearby childcare providers, which it will not formally vet or recommend, and let them make their own minds up.

The program is a pilot, and will run at the next three meetings in Montreal, Cancun and Kuala Lumpur.

After $30 million deal, is a .voice gTLD now inevitable?

Do big second-level domain sales translate into new gTLD success, and does the record-breaking $30 million sale of voice.com this week make a .voice gTLD inevitable?

The answers, I believe, are no and maybe.

Before the 2012 new gTLD application round, one way applicants picked their strings was by combing through the .com zone file to find frequently-occurring words that terminated the second level string.

This is where we get the likes of .site and .online from Radix and much of Donuts’ portfolio.

But applicants also looked at lists of high-priced secondary market sales for inspiration.

This is where we get the likes of .vodka, from MMX.

The latter strategy has seen mixed-to-poor results.

Five of the top domain sales, as compiled by Domain Name Journal, were not eligible for gTLD status are they are too short.

Of the remaining 15 strings, “sex” (which occurs twice), “fund”, “porn”, “toys” and “vodka” were all applied for in 2012 and are currently on sale.

The strings “clothes” and “diamond” do not appear as gTLDs, but Donuts runs both .clothing and .diamonds.

Not delegated in any fashion are “porno” (unless you count it as a derivative of “porn”), “slots”, “tesla”, “whisky” and “california”. A company called IntercontinentalExchange runs .ice as a dot-brand.

As well as .clothing and .diamonds, .fund and .toys are both also Donuts TLDs. None of them are doing spectacularly well.

At the lower end, .diamonds currently has fewer than 3,000 domain under management, but has a relatively high price compared to the the higher-volume TLDs in Donuts’ stable.

At the high-volume end, .fund has just shy of 16,000 names and .clothing has about 12,000.

Judging by their retail prices, and the fact that Donuts benefits from the economies of scale of a 240-strong TLD portfolio, I’m going to guess these domains are profitable, but not hugely so.

If we turn our attention to .vodka, with its roughly 1,500 domains, it seems clear that MMX is barely covering the cost of its annual ICANN fees. Yet vodka.com sold for $3 million.

So will anyone be tempted to apply for .voice in the next gTLD application round? I’d say it’s very possible.

First, “voice” is a nice enough string. It could apply to telephony services, but also to general publishing platforms that give their customers a “voice”. I’d say it could gather up enough registrations to fit profitably into a large portfolio, but would not break any records in terms of volume.

But perhaps the existence of voice.com buyer Block.one as a possible applicant will raise some other applicants out of the woodwork.

Block.one, which uses a new gTLD and an alt-ccTLD (.io) for its primary web sites, is certainly not out-of-touch when it come to alternative domain names.

Could it apply for .voice, and if it does how much would it be willing to spend to pay off rival applicants? It still apparently has billions of dollars from its internet coin offering in the bank.

How much of that would it be prepared to pay for .voice at private auction?

That prospect alone might be enough to stir the interest of some would-be applicants, but it has to be said that it’s by no means certain that the highly gameable application process ICANN deployed in 2012 is going to look the same next time around.

.gay not coming out this year after all

We won’t be seeing .gay on the internet this year.

Top Level Design has postponed the release of its hard-won gTLD until the second quarter of 2020, having recently said it was planning an October 2019 launch.

The company told registrars yesterday that it wants “to move forward on a timeline that will allow us to create greater impact in a more measured manner”.

The October date was meant to coincide with National Coming Out Day, which I said was “absolutely perfect”.

The 2020 date will instead coincide with one of the Pride events, the registry said.

The story is that Top Level Design wants to spend more time building up support from gay community groups, before it comes to market.

But CEO Ray King denied that it’s facing resistance from groups that supported the rival community-based application from dotgay LLC, which lost the chance to run .gay when it was auctioned.

“It’s really just about having enough time to do a thoughtful launch,” King told DI.

The company recently blogged about one of its .gay marketing brainstorming sessions.

India’s largest registrar goes insolvent, gets suspended

India’s largest independent registrar has been found insolvent by a local court, after failing to pay back $28 million in bank loans.

Net 4 India has now also had its right to sell gTLD domains suspended by ICANN as a result.

Judging by legal papers (pdf) buried on Net4’s web site, the insolvency relates to a series of loans the company took out with the State Bank of India between 2002 and 2012.

After the company failed to pay those loans back, in 2014 the debt was acquired from SBI by Edelweiss Asset Reconstruction, which specializes in buying debt cheap then recovering it through the courts.

Edelweiss sued Net4 to get its money back a couple of years ago and, in March this year after what appears to have been a slam-dunk, won its case.

The ruling states that the outstanding debt in 2017 was almost two billion rupees — Rs 1,940,860,284, which works out to just short of $28 million at today’s rates.

Having learned about the insolvency in April, ICANN set about trying to contact Net4’s management to see if the company was coming back into compliance.

ICANN’s Registrar Accreditation Agreement says ICANN can terminate registrars’ contracts if they are in insolvency proceedings for more than 30 days.

After the company failed to show it was compliant, this week its RAA was suspended from June 21 to September 19.

During that period, Net4 will not be able to sell new domain registrations or accept incoming transfers. It will also have to display a notice on its web site to that effect.

If it has not demonstrated compliance by August 28, ICANN may start its termination process.

Net4 is the largest ICANN-accredited registrar based in India, as measured by number of registered gTLD domains (excluding Public Domain Registry, LogicBoxes, and several affiliated dummy accreditations, which are all owned by US-based Endurance International).

It had over 100,000 gTLD domains under management at the end of February — almost all in .com and other legacy gTLDs — but its DUM had been shrinking hard for many months.

At some point, Net4 appears to have been listed on both India’s National Stock Exchange and the Bombay Stock Exchange, but was delisted about a year ago.

ZADNA CEO suspended for “hybrid misconduct”

The CEO of South Africa’s ccTLD registry has reportedly been suspended amid claims of “acts of misconduct”.

According to reports in the local tech press, Vika Mpisane was suspended in early December and has been subject to a delayed disciplinary process since January.

“Mr Vika Mpisane was suspended for serious hybrid acts of misconduct including mismanagement of ZADNA funds and others,” ZADNA chair Motlatjo Ralefatane told MyBroadband.

While details are rather thin on the ground, there are local rumors that some of the allegations relate to Mpisane’s salary and bonuses.

Ralefatane reportedly said that forensic accounting investigations are ongoing.

ZADNA, the ZA Domain Name Authority, is a non-profit organization and official ccTLD manager for .za. It answers to the South African government, but is not funded by it. It should not be confused with ZACR, the commercial entity that actually runs the .za registry on ZADNA’s behalf.

Mpisane has come under increased scrutiny this week as it turns out he is running unopposed for the Southern Africa seat on the board of AFRINIC, the Regional Internet Registry responsible for handing out IP addresses on the continent, apparently without ZADNA’s knowledge.

According to MyBroadband, Ralefatane believes Mpisane should not be representing that he has ZADNA’s support for his run.

His CV (pdf), posted to the AFRINIC web site in April, states that he is the current CEO of ZADNA, with no reference to his suspension.

Ralefatane reportedly added that she is not sure if AFRINIC or ICANN are aware of the allegations against him. They are now.

Mpisane is still listed on ZADNA’s web site as its CEO, also with no reference to the suspension.

His bio on the site reads, in its entirety (errors from the original): “The voice of reason and wisdom An outstanding leader with passion about the internet and what is has to offer. He walks the talk and talks the talk”.

Brand kills off gTLD that is actually being USED

Two more companies have told ICANN they’ve changed their minds about running a dot-brand gTLD, including the first example of a TLD that is actually in use.

Dun & Bradstreet has said it no longer wishes to launch .duns, and Australian insurance company iSelect has had enough of .iselect.

Both companies filed to voluntarily terminate their ICANN registry agreements in March, and ICANN published its preliminary decision to allow them to do so this week.

While business data provider D&B never got around to using .duns, .iselect has had dozens of active domains for years.

The company started putting domains in its zone file about three years ago and had over 90 registered names at the last count, with about a dozen indexed by Google. That’s a quite a lot for a dot-brand.

It is using domains such as home.iselect, news.iselect and careers.iselect as redirects to parts of its main corporate site, while domains such as gas.iselect, creditcards.iselect and health.iselect send customers to specific product pages.

They all redirect to its main iselect.com.au site. There are no web sites as far as I can tell that keep visitors in the .iselect realm.

I’m pretty certain this is the first example of a voluntary contract termination by a dot-brand that is actually in active use.

There have been 52 such terminations to date, including these two latest ones, almost all of which have been dot-brands that never got out of the barn door.

That’s over 10% of the dot-brands that were delegated from the 2012 gTLD application round.

Time for some more ICANN salary porn

Kevin Murphy, June 3, 2019, Domain Policy

ICANN has filed its tax return for its fiscal 2018, so it’s once again that time of the year in which the community gets to salivate over how much its top staffers get paid.

The latest form 990, covering the 12 months to June 30, 2018, shows that the top 21 ICANN employees were compensated to the tune of $10.3 million, an average of $492,718 each.

That’s up about 4% from $9.9 million in the previous year, an average across the top 21 staffers of $474,396 apiece.

These numbers include base salary, bonuses, and benefits such as pension contributions.

Employee compensation overall increased from $60 million to $73.1 million.

The biggest earner was of course CEO Göran Marby, who is now earning more than his immediate predecessor Fadi Chehadé but a bit less than last-but-one boss Rod Beckstrom.

Marby’s total compensation was $936,585, having received a bonus of almost $200,000 during the year. His base salary was $673,133.

The number of staffers receiving six-figure salaries increased from 159 in fiscal 2017 to 183 — about 44% of its estimated end-of-year headcount.

Towards the end of the reported year, as ICANN faced a budget crunch, many members of the ICANN community had called on the organization to rein in its spending on staff.

ICANN says it targets compensation in the 50th to 75th percentile range for the relevant industry.

The top five outside contractors in the year were:

  • Jones Day, ICANN’s go-to law firm. It received $5.4 million, down from $8.7 million in 2017.
  • Zensar Technologies, the IT consultancy that develops and supports ICANN software. It received $3.7 million.
  • IIS, the Swedish ccTLD registry, which does pre-delegation testing for new gTLDs. It received $1.3 million.
  • Iron Mountain, the data escrow provider. It received $1.1 million.
  • Infovity, which provides Oracle software support. It received $1 million.

The return shows that ICANN made a loss of $23.9 million in the year, on revenue that was down from $302.6 million to $136.7 million.

The primary reason for this massive decrease in revenue was the $135 million Verisign paid for the rights to run .web, at an ICANN last-resort auction, in ICANN’s fiscal 2017.

The tax form for 2018 can be found here (pdf) and 2017’s can be found here (pdf).

These 27 companies have ditched the .com for their dot-brand

Earlier today, I listed what I believe might be the top 10 dot-brand gTLDs with the most active web sites, but noted that it was probably a rubbish way to gauge the success of the dot-brand concept.

As a follow-up, I thought I’d figure out which brands have taken the bold step of ditching the .com and made their dot-brand their primary web destination.

I found 27 TLDs, which is simultaneously not a lot and easily twice as many as I was expecting.

The most-popular second-level string was “home”, with 12 examples. The string “global” occurs five times on the list.

I did this research manually with Google and a list of 275 dot-brands — anything with Spec 13 in its contract and more than two domains in its zone file — culled from my database.

To get on this list, at least one of the following had to be true:

  • The dot-brand was the top hit on Google when searching for the brand in question.
  • The .com redirects to the dot-brand.

Sometimes I had to factor out Google’s enormously irritating habit of localizing results, which would prioritize a .uk domain, particularly in the case of automotive brands.

On a few occasions, if I could not be certain whether the “official” primary site was in a ccTLD or the dot-brand, I used the brand’s Wikipedia page as a tie-breaker.

Some entries on the list may be a bit debatable.

I’m not sure whether .barclays should be there, for example. There’s little doubt in my mind that barclays.co.uk is the site that the majority of Barclays’ banking customers use, but barclays.com redirects visitors to home.barclays, so it fits my criteria.

In general, I’ve erred on the side of caution. If the top search result was for the brand’s .com, it was immediately ruled out, no matter how enthusiastic a dot-brand user the company otherwise appeared to be.

Here’s the list. Please let me know if you think I’ve missed any.

TLDBrand2LD
bnpparibasBNP Paribasgroup
bradescoBanco Bradesco S.A.banco
canonCanon Inc.global
cernEuropean Organization for Nuclear Research (CERN)home
cuisinellaSALM S.A.S.ma
dhlDeutsche Post AGlogistics
fageFage International S.A.home
hisamitsuHisamitsu Pharmaceutical Co.,Inc.global
ipirangaIpiranga Produtos de Petroleo S.A.portal
komatsuKomatsu Ltd.home
kpmgKPMG International Cooperativehome
locusLocus Analytics LLChome
neustarNeuStar, Inc.home
pictetPictet Europe S.A.group
pioneerPioneer Corporationglobal
praxiPraxi S.p.A.praxi
sandvikSandvik ABhome
saxoSaxo Bank A/Shome
schmidtSALM S.A.S.home-design
senerSener Ingeniería y Sistemas, S.A.ingenieriayconstruccion
toyotaToyota Motor Corpglobal
warmanWeir Group IP Limitedhome*
weberSaint-Gobain Weber SAhome
weirWeir Group IP Limitedglobal

Twenty-seven gTLDs is not a great many, of course, considering that some dot-brands have been delegated for half a decade already.

It’s about half as many as have already torn up their ICANN registry agreements, and it represents less than 6% of the new gTLDs that my database says have Spec 13 in their contracts.

But I reiterate that this is not a list of companies using their dot-brands but rather of those apparently putting their .com firmly in the back seat to their dot-brand.