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Fight over ICANN’s $400,000 Hollywood party

Kevin Murphy, September 22, 2014, Gossip

Corporate sponsors raised $250,000 to fund a $400,000 showbiz gala for ICANN 51 next month, but ICANN pulled the plug after deciding against making up the shortfall.

Sources tell DI that the lavish shindig was set to take place at Fox Studios in Los Angeles on October 15, but that ICANN reneged on a commitment to throw $150,000 into the pot.

Meanwhile, a senior ICANN source insists that there was no commitment and that a “misunderstanding” is to blame.

ICANN announced a week ago that its 51st public meeting would be the first in a while without a gala event. In a blog post, VP Christopher Mondini blamed a lack of sponsors and the large number of attendees, writing:

One change from past meetings is that there will not be an ICANN51 gala. Historically, the gala has been organized and supported by an outside sponsor. ICANN51 will not have such a sponsor, and therefore no gala. ICANN meetings have grown to around 3,000 attendees, and so have the challenges of finding a gala sponsor.

This explanation irked some of those involved in the aborted deal. They claim that the post was misleading.

Sources say that sponsors including Fox Studios, Neustar and MarkMonitor had contractually committed $250,000 to the event after ICANN promised to deliver the remaining $150,000.

But ICANN allegedly changed its mind about its own contribution and, the next day, published the Mondini post.

“The truth is there were sponsors, the truth is it wasn’t too big,” said a source who preferred not to be named. “There was enough money there for a gala.”

The venue was to be the Fox Studios backlot, which advertises itself as being able to handle receptions of up to 4,000 people — plenty of space for an ICANN gala.

I’ve confirmed with Neustar, operator of the .us ccTLD, that it had set aside $75,000 to partly sponsor the event.

But Mondini told DI that ICANN had not committed the $150,000, and that claims to the contrary were based on a “misunderstanding” — $150,000 was the amount ICANN spent on the Singapore gala (nominally sponsored by SGNIC), not how much it intended to spend on the LA event.

“There was no ICANN commitment to make up shortfall,” he said. “It was misheard as an ICANN commitment.”

More generally, ICANN’s top brass are of the opinion that “we shouldn’t be in the business of spending lots of money on galas”, Mondini added.

“ICANN paying for galas is the exception rather than the rule,” he said.

He added that he stood by his blog post, saying that a failure to find sponsors to cover the full $400,000 tab is in fact a failure to find sponsors.

MarkMonitor infiltrated by Syrian hackers targeting Facebook

Kevin Murphy, February 6, 2014, Domain Registrars

The corporate brand protection registrar MarkMonitor was reportedly hacked yesterday by the group calling itself the Syrian Electronic Army, in an unsuccessful attempt to take out Facebook.

While MarkMonitor refused to confirm or deny the claims, the SEA, which has been conducting a campaign against high-profile western web sites for the last couple of years, tweeted several revealing screenshots.

One was a screen capture of a DomainTools Whois lookup for facebook.com, which does not appear to have been cached by DomainTools.

Another purported to be a cap of Facebook’s control panel at the registrar.

The SEA tweeted more caps purporting to show it had access to domains belonging to Amazon and Yahoo!.

In response to an inquiry, MarkMonitor rather amusingly told DI “we do not comment on our clients — including neither confirming nor denying whether or not a company is a client.”

This despite the fact that the company publishes a searchable database of its clients on its web site.

The attackers were unable to take down Facebook itself because the company has rather wisely chosen to set its domain to use Verisign’s Registry Lock anti-hijacking service.

Registry Lock prevents domains’ DNS settings being changed automatically via registrar control panels. Instead, registrants need to provide a security pass phrase over the phone.

First new gTLD contracts signed

Donuts, an ARI Registry Services subsdiary and CORE this morning became the first new gTLD applicants to sign registry contracts with ICANN.

The ceremonial signing took place live on stage at the opening ceremony of ICANN 47, the week-long public meeting in Durban, South Africa.

ARI CEO Adrian Kinderis signed on behalf of شبكة. applicant International Domain Registry. The string is Arabic for “.web” and transliterates as “.shabaka”. It is 3 in the program’s evaluation queue.

In an ARI press release, Go Daddy CEO Blake Irving confirmed that Go Daddy will carry .shabaka.

Donuts CEO Paul Stahura signed for .游戏, the Chinese-language “.games”, which had prioritization number 40.

It was not immediately clear which contracts Iliya Bazlyankov, chair of CORE’s executive committee, signed. CORE has applied for three internationalized domain name gTLDs with high priority numbers.

(UPDATE: Bazlyankov has been in touch to say: “We signed the .сайт (site) and .онлайн (online) contracts which had numbers 6 and 9 in the priority”.)

Representatives of Go Daddy, MarkMonitor, Momentous, Mailclub and African registrar Kheweul.com also joined ICANN CEO Fadi Chehade on stage to sign the 2013 Registrar Accreditation Agreement.

The event marks the beginning of the contract signing phase of the new gTLD program, an important milestone.

For applicants without outstanding objections, contention or Governmental Advisory Committee advice, signing a contract means only pre-delegation testing and the final transition to delegation remains.

Melbourne IT gets out of brand protection with $157m sale to CSC

Kevin Murphy, March 12, 2013, Domain Registrars

Corporation Service Company has acquired Melbourne IT’s flagship digital brand management service for a ridiculously expensive AUD 152.5 million ($157m).

The shock news takes Melbourne out of the high-margin defensive registration and brand monitoring market, leaving it as a basic domain registrar focused on small businesses.

For CSC, the deal leaves it with a considerably strengthened hand in the DBS space, which is poised to benefit from the massive influx of new gTLDs over the next few years.

It also means that all of the over 100 new gTLD applications Melbourne was supporting as a consultant will now be managed by CSC.

The price of AUD 152.5 million is far more than Melbourne IT could have hoped to ask for, equal to almost its entire market capitalization of AUD 160 million.

Melbourne has had a rocky time on the markets of late, and had previously disclosed that it was looking to sell off some units in order to appease shareholders and rationalize its business.

But DBS was considered a core business, bigger now than Melbourne’s regular domains business, and likely not for sale. CSC’s high-premium offer was too good, it seems, to be responsibly refused.

“While this was not a business that we had specifically earmarked for sale, given the value creation provided by the transaction, this was an opportunity which could not be ignored,” CEO Theo Hnarakis, said in a statement.

The deal follows the sale of MarkMonitor, a key Melbourne competitor, to Thomson Reuters last July. When it comes to brand protection in the domain name space, it’s a big boy’s game nowadays.

Melbourne will remain a domain registrar with over four million names under management.

The DBS business was formed in 2008, largely as a result of Melbourne’s purchase of Verisign’s brand services division for $50 million.

Thomson Reuters buys MarkMonitor

Thomson Reuters has acquired the corporate brand-protection registrar MarkMonitor for an undisclosed sum.

MarkMonitor will be absorbed into its new owner’s Intellectual Property & Science business unit, giving it a ready-made and pretty strong domain name management capability.

San Francisco-based MarkMonitor has almost 700,000 domain names in gTLDs under management and says it has over half of the Fortune 100 as clients and over 400 employees.

Thomson Reuters is one of the world’s leading providers of business information with annual revenue approaching $14 billion.

As an aside, I predicted back in October 2011 that MarkMonitor was about ready to be acquired, based on the consolidation trend in the industry. It took a little longer than I expected.