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Donuts gets bought by former ICANN CEO’s firm

Kevin Murphy, September 5, 2018, Domain Registries

Donuts is to be bought by a private equity firm that has a former ICANN CEO as a partner.

The company, which holds the largest portfolio of new gTLDs, has agreed to be acquired by Boston-based private equity firm Abry Partners for an undisclosed sum.

Not much info about the deal has been released, but one senses an ICANN alum’s hand at the wheel.

Former ICANN chief Fadi Chehade is a partner at Abry, having been initially employed as senior advisor on digital strategy back in 2016 after he left ICANN.

Abry, on its web site, says it focuses its investments on profitable companies, adding:

Depending on the type of fund, we target investments from $20 million to $200 million.

Since Abry’s inception, we’ve developed deep industry expertise in Broadband, Business Services, Communications, Cybersecurity, Healthcare IT, Information Services, Insurance Services, Internet-of-Things, Logistics, Media, and Software as a Service.

Since its formation in 1989, Abry has “completed more than $77 billion of transactions, representing investments in more than 650 properties.”

Donuts was founded by domain veterans Paul Stahura, Jon Nevett, Richard Tindal and Daniel Schindler in order to take advantage of ICANN’s new gTLD program..

It was initially funded by $100 million from Austin Ventures, Adams Street Partners, Emergence Capital Partners, TL Ventures, Generation Partners and Stahurricane.

It currently runs over 200 TLDs, the most populous of which I believe is .ltd, with over 400,000 names.

Donuts is the latest of a series of domain companies to exit via the private equity route, notably following Neustar and Web.com.

Chehade was ICANN’s CEO between 2012 and 2015. While he was not involved in the industry during the new gTLD’s program’s inception, he did oversee its early years.

.tel’s second-biggest registrar gets canned

Kevin Murphy, August 31, 2018, Domain Registrars

A Chinese registrar that focused exclusively on selling .tel domain names has been shut down by ICANN.

Tong Ji Ming Lian (Beijing) Technology Corporation Ltd, which did business as Trename, had its registrar contract terminated last week.

ICANN claims the company had failed to pay its accreditation fees and failed to escrow its registration data.

The organization had been sending breach notices since June, but got no responses. Trename’s web site domain currently resolves to a web server error, for me at least.

Trename is a rare example of a single-TLD registrar, accredited only to sell .tel domains. It didn’t even sell .com.

It is Telnames’ second-largest registrar after Name.com, accounting for about 6,000 names at the last count. At its peak, it had about 55,000.

Its share seems to be primarily as a result of a deal the registry made with a Chinese e-commerce company way back in 2011.

I’m a bit fuzzy on the details of that deal, but it saw Trename add 50,000 .tel names pretty much all at once.

Back then, .tel still had its original business model of hosting all the domains it sold and publishing web sites containing the registrant’s contact information.

Since June 2017, .tel has been available as a general, anything-goes gTLD, after ICANN agreed to liberalize its contract.

That liberalization doesn’t seem to have done much to stave off .tel’s general decline in numbers, however. It currently stands at about 75,000 names, from an early 2011 peak of over 305,000.

ICANN told Trename that its contract will end September 19, and that it’s looking for another registrar to take over its domains.

With escrow apparently an issue, it may not be a smooth transition.

Whois privacy did NOT increase spam volumes

Kevin Murphy, August 31, 2018, Domain Tech

The advent of more-or-less blanket Whois privacy has not immediately led to the feared uptick in spam, according to researchers.

Data from Cisco’s Talos email data service, first highlighted by security company Recorded Future this week, shows spam levels have been basically flat to slightly down since ICANN’s GDPR-inspired new Whois policy came into effect May 25.

Public Talos data shows that on May 1 this year there were 433.9 billion average daily emails and 370.04 billion spams — 85.28% spam.

This was down to 361.83 billion emails and 308.05 billion spams by August 1, an 85.14% spam ratio, according to Recorded Future.

So, basically no change, and certainly not the kind of rocketing skyward of spam levels that some had feared.

Cisco compiles its data from customers of its various security products and services.

Looking at Talos’ 18-month view, it appears that spam volume has been on the decline since February, when the ratio of spam to ham was pretty much identical to post-GDPR levels.

It also shows a similar seasonal decline during the northern hemisphere’s summer 2017.

Talos graph

There had been a fear in some quarters that blanket Whois privacy would embolden spammers to register more domains and launch more ambitious spam campaigns, and that the lack of public data would thwart efforts to root out the spammers themselves.

While that may well transpire in future, the data seems to show that GDPR has not yet had a measurable impact on spam volume at all.

Could a new US law make GDPR irrelevant?

Kevin Murphy, August 29, 2018, Domain Policy

Opponents of Whois privacy are pushing for legislation that would basically reverse the impact of GDPR for the vast majority of domain names.

Privacy advocate Milton Mueller of the Internet Governance Project today scooped the news that draft legislation to this effect is being circulated by “special interests” in Washington DC.

He’s even published the draft (pdf).

Mueller does not call out the authors of the bill by name — though he does heavily hint that DomainTools may be involved — saying instead that they are “the same folks who are always trying to regulate and control the Internet. Copyright maximalists, big pharma, and the like.”

I’d hazard a guess these guys may be involved.

The bill is currently called the Transparent, Open and Secure Internet Act of 2018, or TOSI for short. In my ongoing quest to coin a phrase and have it stick, I’m tempted to refer to its supporters as “tossers”.

TOSI would force registries and registrars to publish Whois records in full, as they were before May this year when ICANN’s “Temp Spec” Whois policy — a GDPR Band-aid — came into effect.

It would capture all domain companies based in US jurisdiction, as well as non-US companies that sell domains to US citizens or sell domains that are used to market goods or services to US citizens.

Essentially every company in the industry, in other words.

Even if only US-based companies fell under TOSI, that still includes Verisign and GoDaddy and therefore the majority of all extant domains.

The bill would also ban privacy services for registrants who collect data on their visitors or monetize the domains in any way (not just transactionally with a storefront — serving up an ad would count too).

Privacy services would have to terminate such services when informed that a registrant is monetizing their domains.

But the bill doesn’t stop there.

Failing to publish Whois records in full would be an “unfair or deceptive act or practice” and the Federal Trade Commission would be allowed to pursue damages against registries and registrars that break the law.

In short, it’s a wish-list for those who oppose the new regime of privacy brought in by ICANN’s response to the General Data Protection Regulation.

While it’s well-documented that the US executive branch, in the form of the National Telecommunications and Information Administration, is no fan of GDPR, whether there’s any interest in the US Congress to adopt such legislation is another matter.

Is this an IP lawyer’s pipe-dream, or the start of a trans-Atlantic war over privacy? Stay tuned!

No more free ride for ICANN Fellows?

Kevin Murphy, August 29, 2018, Domain Policy

Newcomers who get free travel to ICANN meetings will have to show they’re serious about participating in the community, under new rules.

ICANN is revamping its Fellowship program to ensure that it’s actually meetings its goals of increasing the pool of mugs knowledgeable volunteers that the community can draw on.

The program, designed to bring in people unable to afford their own in-person meeting attendance, had come in for criticism for not being sufficiently accountable, and perhaps a poor use of money in a time of budget pressure.

It’s not been easy to measure the ratio of valuable ICANN citizens it was creating versus freeloaders who abuse the system for a free busman’s holiday.

Among the key changes being introduced now are requirements for Fellows to attend a minimum number of session-hours per meeting, casually policed by seven “mentors” — selected from and appointed by each supporting organization and advisory committee.

The number of hours required doesn’t appear to be set in stone as yet, with ICANN saying it will work with mentors to arrive at a figure.

While ICANN admits it obviously can’t force Fellows to participate after their first meeting, it plans to make sure returning Fellows can provide documentary evidence that they have engaged on subsequent applications for the program.

The three-meetings-only rule will remain.

The request for post-meeting reports from Fellows will be piloted at the Barcelona meeting in October.

More information of program revamps can be found here.