At least two new gTLD applicants reckon ICANN has screwed up their Initial Evaluation, flunking their applications due to missing or mishandled communications.
Following Friday’s batch of IE results, which saw four failures, one angry applicant got in touch with DI to complain about discrepancies in how his bids were scored.
Dot Registry has applied for five “corporate identifier” strings — .inc, .corp, .ltd, .llc and .llp — and has made decent progress convincing the powers that be that they will be operated responsibly.
On Friday, its .inc bid passed its Initial Evaluation with flying colors while .llc and .ltd were marked as “Eligible For Extended Evaluation”, a polite code phrase for #fail.
Both of the unsuccessful bids scored 0 on question 50, “Funding Critical Registry Functions”, which is an automatic failure no matter what the overall score on the financial evaluation.
Applicants are scored on question 50 from 0 to 3 by showing that they have a “Continuing Operations Instrument” to cover three years of operations in the event that their registry fails.
Most applicants have been submitting letters of credit supplied by their bank, which promise to pay ICANN these emergency funds should the need arise.
A zero score indicates basically that no COI was provided.
But CEO Shaul Jolles claims that Dot Registry submitted a single letter of credit to cover all five applications, later amended at ICANN’s request so that each string in the portfolio was broken out individually.
“We then received a note that they now have whatever they needed and it’s resolved,” he said.
He noted that .inc, which passed on Friday with maximum score of 3, is covered by exactly the same LOC as the two applications that scored a 0, which doesn’t make much sense.
A second applicant, which does not currently wish to be named, has told DI that it failed its financial evaluation on a question for which it received no Clarifying Questions.
CQs are the handy method by which ICANN gave applicants a second shot at getting their applications right. Hundreds have been issued, the vast majority related to financial questions.
The common complaint to both failing applicants is that at no point did ICANN inform the applicant that its application was deficient.
We understand both applicants are currently in touch with ICANN management in order to try to get their predicaments resolved.
The secretary of state for Delaware has come out in opposition to new gTLD applications such as .inc, .corp and .ltd.
Bullock wrote (emphasis added):
none of the applications contains a fully thought out, achievable, transparent and enforceable system for fully safeguarding that a firm remains legally registered with a company registry at all times.
none of the applications adequately safeguards consumers, legitimate businesses, the public at large, state regulators, and the internet itself from the risks that “company endings” are used for fraudulent or misleading purposes.
Therefore, at this stage of the gTLD process, I strongly believe that the public is best served if these company endings are not made available for use. There is no overriding public policy purpose or strong business case for making them available and the opportunity for fraud and abuse is very high.
There are a few dozen corporate-themed gTLD applications, including contests for: .inc, .corp, .llp, .ltd, .company and .gmbh.
Back in March, before any of the applications had been published, Bullock and other secretaries of state said that such gTLDs should only be approved with “restrictions that would attempt to protect legitimate businesses and consumers from confusion or fraud.”
His letter suggested that DOT Registry’s proposals might be adequate, but he’s apparently changed his mind after reading the applications.
Based on the March letters, I’d say there’s a strong possibility of objections being filed against some or all of these applications.
Delaware is of course the state most big US companies choose to register themselves in, due to its generous company laws.
Dot Registry LLC, a new company to the domain name industry, has applied to ICANN for four company-themed gTLDs, saying it has the backing of US secretaries of state.
It’s going for .inc, .corp, .llc and .llp.
CEO Shaul Jolles says the plan is for all four to be restricted to US-registered companies, even though some other countries give their companies the same labels.
“While the extensions do exist in other countries, they do not have definitions similar to the entity classifications in the US,” Jolles said in an email.
“We will not offer registrations to companies not registered in the US,” he said. “We chose this option because we are able to easily verify business entity registration in the US.”
Dot Registry, which is using .us contractor Neustar as its registry services provider, says it has support from various US secretaries of state.
As we blogged in April, the president of the National Association of Secretaries of State wrote to ICANN to express reservations about these types of gTLD strings.
But Delaware Secretary of State Jeffrey Bullock indicated in a separate letter that Dot Registry’s propose regime of restrictions, which would manually match domains to company names, might be acceptable.
I’m still somewhat skeptical about the value of these kind of gTLDs. You can pretty much guarantee plenty of pointless defensive registrations, and the benefits seem fuzzy.
“The benefit of these strings is two-fold,” Jolles said. “For consumers it creates a level of reassurance and the ability to quickly ascertain if a company is legitimate or not.”
“From a company perspective it has simple benefits such as guaranteeing that you receive a domain name that matches your registered business name, increased consumer confidence which increases revenue, and a decreased possibility of business identity theft in a cyber setting,” he said.
Top Level Domain Holdings is involved in a grand total of 92 new generic top-level domain applications, many of them already known to be contested.
Sixty-eight applications are being filed on its own behalf, six have been submitted via joint ventures, and 18 more have been submitted on behalf of Minds + Machines clients.
Here’s the list of its own applications:
.abogado (Spanish for .lawyer), .app, .art, .baby, .beauty, .beer, .blog, .book, .casa (Spanish for .home), .cloud, .cooking, .country, .coupon, .cpa, .cricket, .data, .dds, .deals, .design, .dog, .eco, .fashion, .fishing, .fit, .flowers, .free, .garden, .gay, .green, .guide, .home, .horse, .hotel, .immo, .inc, .latino, .law, .lawyer, .llc, .love, .luxe, .pizza, .property, .realestate, .restaurant, .review, .rodeo, .roma, .sale, .school, .science, .site, .soccer, .spa, .store, .style, .surf, .tech, .video, .vip, .vodka, .website, .wedding, .work, .yoga, .zulu, 网址 (.site in Chinese), 购物 (.shopping in Chinese).
There’s a lot to note in that list.
First, it’s interesting to see that TLDH is hedging its bets on the environmental front, applying for both .eco (which we’ve known about for years) and .green.
This puts it into contention with the longstanding Neustar-backed DotGreen bid, and possibly others we don’t yet know about, which should make for some interesting negotiations.
Also, both of TLDH’s previously announced Indian city gTLDs, .mumbai and .bangaluru, seem to have fallen through, as suspected.
Other contention sets TLDH is now confirmed to be involved in include: .blog, .site, .immo, .hotel, .home, .casa, .love, .law, .cloud, .baby, .art, .gay, .style and .store.
The company said in a statement:
During the next six months, TLDH will focus its efforts on marketing and operations for geographic names such as dot London and dot Bayern where it has the exclusive support of the relevant governing authority, as well as any other gTLDs that TLDH has filed for that are confirmed to be uncontested on the Reveal Date. Discussions with other applicants regarding contested names will be handled on a case-by-case basis.
American secretaries of state will object to new gTLD applications for .inc, .corp, .llc and .llp unless they are restricted, the National Association of Secretaries of State has told ICANN.
In a March 30 letter, NASS president Beth Chapman wrote:
While we have concerns about the use of these extensions, if ICANN considers approving these extensions, our members respectfully request that they be approved with restrictions that would attempt to protect legitimate businesses and consumers from confusion or fraud.
The members of NASS believe these extension identifiers (.INC, .LLC, .CORP, .LLP) should only be extended to entities that are also legally and appropriately registered with the Secretaries of State, or the equivalent state agency. The entity purchasing a new domain name should be the same entity registered with a Secretary of State or equivalent state agency.
The sentiment was a repeat of views expressed in a March 20 letter from Jeffrey Bullock, secretary of state of corporation-friendly Delaware.
Bullock said that Delaware “would object to the granting of such strings without restrictions”.
Neither letter acknowledges that the corporate suffixes Inc, Corp and LLP are also used elsewhere in the world.
Both letters refer to DOT Registry, a start-up with plans to apply to ICANN for .inc, .corp and .llc.
DOT Registry plans to put restrictions in place to ensure only registered companies can register domains, Bullock wrote.
I’m not familiar with DOT Registry’s plans, but in general I’m not keen on this type of gTLD string. They strike me as pointless, more likely to create defensive registration revenue than any benefit.