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What next for new TLDs? Part 3 – The .xxx Factor

Kevin Murphy, December 14, 2010, Domain Registries

Like or loathe the decision, ICANN’s new top-level domains program appears to have been delayed again.

But for how long? And what has to happen now before ICANN starts accepting applications?

In short, what the heck happened in Cartagena last week?

In this four-part post, I will attempt an analysis of the various things I think need to happen before the Applicant Guidebook (AGB) is approved.

In this third post, I will look at the state of play with the .xxx TLD application, and what that means for the new TLD process.

The .xxx Factor

At some time in February, the ICANN board and its Governmental Advisory Committee plan to meet (possibly in Geneva) to discuss both the AGB and the .xxx TLD proposal.

While these are two separate issues, how .xxx is being handled may have an impact on the timetable for the AGB’s approval.

Let’s first look at what’s happening with .xxx.

As you will have almost certainly already read, the ICANN board resolved on Friday that it “intends to approve” .xxx, despite GAC advice that may be to the contrary.

The ICANN-GAC power structure is governed by an 11-point charter in ICANN’s bylaws. The last two points, J and K, deal with what happens when the two parties disagree.

Under what, for the sake of brevity, I’m going to call “GAC-J” (instead of “ICANN Bylaws section Article XI, Section 2, Paragraph 1(j)”), ICANN has to call a meeting with the GAC when it plans to disregard GAC advice.

Specifically, if the ICANN board “determines to take an action” that is not consistent with GAC advice, it has to “inform” the GAC, stating why it decided to not follow the advice, then “try, in good faith and in a timely and efficient manner, to find a mutually acceptable solution”.

GAC-J has, to the best of my knowledge, never been invoked before. There isn’t even a procedure in place for handling this kind of official consultation.

But on Friday, the board stated that it intends to not follow the GAC’s advice on the .xxx application and “hereby invokes the consultation as provided for in ICANN Bylaws section Article XI, Section 2, Paragraph 1(j).”

Now that GAC-J has been invoked, the GAC and board will meet to find their “mutually acceptable solution”.

Should such a solution prove elusive, the ICANN board has to make a final decision, stating why it has disregarded the GAC’s advice. That’s handled by what I’ll call GAC-K.

What does all this have to do with new TLDs and the timetable for the publication and approval of the final Applicant Guidebook?

As ICM Registry president Stuart Lawley pointed out in a comment on CircleID, the procedures being created to resolve the .xxx dispute could very well soon be applied to the AGB.

As Lawley points out, ICANN has not yet put the GAC on notice that it plans to disagree with any of the 11 concerns outlined in the Cartagena GAC Communique.

While the Communique “assumes” ICANN has invoked GAC-J with regards new TLDs, the board has not explicitly done so.

This is uncharted territory, but I think it’s possible that this oversight (if it is an oversight) has the potential to add latency to the new AGB approval timetable.

ICANN might be well-advised to pass a resolution officially invoking GAC-J before the February bilateral meeting, in order to turn it into a bylaws-compatible consultation.

As long as it invokes the bylaws before March, the San Francisco meeting will be able to host a GAC-Board consultation under the terms of GAC-J, enabling the AGB to be approved that week.

If ICANN does not take either of these options, the GAC will be able (if it wants to be a pain) to further delay the process by demanding another inter-sessional consultation, like it just did in Cartagena.

I’ll discuss the GAC’s actual concerns in the fourth part of this post.

Want a premium .xxx domain? Now’s your chance

Kevin Murphy, December 14, 2010, Domain Registries

ICM Registry, despite suffering another setback at the Cartagena ICANN meeting last week, has set the wheels in motion for the launch of .xxx with the announcement of a Founders Program.

If you want to get your hands on a “premium” .xxx domain without having to pay a tonne at auction, this is your chance.

ICM said it will license premium domains to organizations willing to develop and market their sites for at least two years, raising awareness of the TLD.

.CO Internet did a similar thing with .co, issuing one-character names to the likes of Go Daddy and Twitter. Other registries have had founder programs for super-short domains.

The program will be open to newcomers, as well as those who own “matching” domains in other TLDs.

The .xxx application is currently on hold, pending ICANN’s consultation with its Governmental Advisory Committee in February, but ICANN has said that it “intends” to approve it.

It will be interesting to see how many members of the adult community currently opposed to .xxx, if any, will attempt to participate as a Founder.

(Hat tip: Michele Neylon)

Porn group threatens lawsuits over new TLDs

Kevin Murphy, December 2, 2010, Domain Registries

Porn trade group the Free Speech Coalition has added its name to the list of organizations saying that ICANN could be sued over its new top-level domains program.

In her latest letter to ICANN, FSC executive director Diane Duke has made a last-ditch attempt to get the proposed .xxx TLD rejected, and not-so-subtly raises the threat of court action:

ICM Registry promises millions of dollars of income for ICANN, assuming that income is not consumed by the inevitable litigation which ICANN will find itself a party to if the proposal is adopted

But she also writes about lawsuits targeting the new TLD program itself.

ICM’s .xxx application is being handled under the rules established for “sponsored” TLDs in 2003, rather than the rules for gTLDs in the Applicant Guidebook that will be enforced in future.

As such, .xxx is not subject to challenges such as the “morality and public order objections” envisioned by the AGB, unlike potential future applications such as .porn. Duke wrote:

What about those in the adult community who wish to apply for a gTLD? With ICANN’s policy development in regards to “Morality and Public Order” will gTLDs be held to a higher standard than the sTLD? Does ICANN believe that it is not liable for this inequity? Any company prepared to invest the substantial moneys necessary to manage a gTLD will surely take ICANN to court to demand equitable standards for their TLD application.

She goes on to suggest that ICM itself may sue to block such applicants.

Does ICANN really believe that the litigious ICM will sit idly by while a .SEX or .PORN gTLD is introduced? Is ICANN so naive to believe that the purveyor of the “sponsored” TLD, who spent in excess of $10 million to bully its way through ICANN’s processes, will stop its threats of litigation with a mere approval of the sTLD?

Is the FSC privy to the TLD aspirations of others in the adult business? Or is this just a lot of hot air born out of desperation? I guess time will tell.

The FSC becomes the third organization to publicly threaten litigation in order to get what it wants out of ICANN.

As I’ve previously reported, the International Olympic Committee and the BITS financial trade group have already made similar noises.

ICANN expects to set aside $60,000 from every $185,000 TLD application fee to deal with “risks” including the expense of defending itself from lawsuits.

The ICANN board is expected to vote on the .xxx application and the new TLD program next Friday. I expect the number of organizations threatening lawsuits will be in double figures by then.

Porn industry “ready for war” with .xxx

Kevin Murphy, December 1, 2010, Domain Registries

The Free Speech Coalition and ICM Registry are poised to do battle over the .xxx top-level domain at next week’s ICANN meeting in Cartagena, Colombia.

The FSC, which has opposed the porn-only domain for years, is trying to rally its troops with a flyer declaring it’s “Ready For War”, illustrated with a photograph apparently of Cartagena’s battlements.

(Apropos, really, given the city’s history fighting off the British and ICM’s habit of recruiting Brits for key positions.)

The FSC said on its blog:

the majority of adult Internet business owners and webmasters do not support being categorized in an Internet ghetto that will cost them millions in extra fees annually and also make it easier for anti-adult entities to censor and block their sites.

The trade group will be represented at the meeting by executive director Diane Duke and chair Jeffrey Douglas.

But ICM will have them out-gunned almost 10-to-1. President Stuart Lawley tells me the company is sending 19 people to the meeting.

Discussion of the .xxx TLD is on the ICANN board’s agenda for its meeting Friday December 10. I think it’s quite likely to be approved at that time.

The main stumbling block for ICM is ICANN’s Governmental Advisory Committee, which has expressed reservations about the domain over the years and is firmly opposed to “controversial” TLDs.

Which way the vote swings will depend greatly on what the GAC has to say, and how the power struggle it’s currently engaged in with ICANN pans out.

Here’s part of the FSC’s flyer.

Free Speech Coaltion declares war

ICM buys dotxxx.com for $25,000 and unveils new slogan

Kevin Murphy, November 4, 2010, Domain Sales

ICM Registry, the would-be .xxx registry operator, has acquired the domain name dotxxx.com from a Korean domainer for $25,000, to support an upcoming marketing campaign.

The company is also expected to unveil a punny new slogan, “Let’s be adult about it”, following its recent hiring of international ad agency M&C Saatchi.

The dotxxx.com domain currently redirects to icmregistry.com, the company’s main site. The private sale used Sedo for escrow.

Given the amount of cash ICM has spent attempting to get .xxx approved over the last ten years, $25,000 is a drop in the ocean.

ICANN recently decided to refer its application to the Governmental Advisory Committee for a consultation, before it makes a final call on whether to approve it or not.