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Verisign lays out ‘buy once’ IDN gTLD plans

Verisign has finally clarified how it proposes to let existing registrants of internationalized domain names grab the matching domains in its 12 forthcoming IDN gTLDs.

The company has applied for transliterations of .com in nine non-Latin scripts and .net in three, but its applications were light on details about existing registrants’ rights.

But today Verisign senior vice president Pat Kane outlined precisely how name allocations will be handled.

At first glance it sounds like good news for existing IDN registrants, particularly domainers whose investments in IDN .com and .net domains are about to become much more valuable.

If you already own a .com domain that is an IDN at the second level, you will have exclusive rights to that IDN string in all other .com transliterations, but not .net transliterations.

That works the other way around too: if you own the IDN .net domain, you get the matching second level in all of Verisign’s .net transliterations.

Owning the Chinese word for “beer” in Latin .com would not give you rights to the Thai word for “beer” in the Thai transliteration of .com, but you could buy the Chinese equivalent.

The rules seem to apply to future registrations too.

You could register the Hebrew for “beer” in the Hebrew transliteration of .com and you would also get the exclusive right to that Hebrew string in Latin .com.

There would be no obligation, and you wouldn’t lose your right to register matching domains if you chose not to immediately exercise it, Kane said. He wrote:

Two primary objectives in our strategy to implement new IDN gTLDs are, where feasible, to avoid costs to consumers and businesses from purely defensive registrations in these new TLDs, as well as to avoid end-user confusion.

It all sounds pretty fair to me, based on Kane’s blog post.

There’s a hint that trademark rights protection mechanisms may complicate matters, which has apparently been discussed in a letter to ICANN, but if it’s been published anywhere I’ve been unable to find a copy.

In major snub, Verisign refuses to let ICANN audit .net

Kevin Murphy, January 11, 2013, Domain Registries

Verisign has delivered a significant blow to ICANN’s authority by refusing to take part in its contractual compliance audit program.

The snub runs a risk of scuppering ICANN’s plans to make compliance a cornerstone of its new management’s strategy.

In a letter to ICANN’s compliance department this week, Verisign senior vice president Pat Kane said that the company has no obligation to submit to an audit of .net under its ICANN contract.

Kane wrote:

Verisign has no contractual obligations under its .net Registry Agreement with ICANN to comply with the proposed audit. Absent such express contractual obligations, Verisign will not submit itself to an audit by or at the direction of ICANN of its books and records.

The company is basically refusing to take part in ICANN’s Contractual Compliance Audit Program, a proactive three-year plan to make sure all gTLD registries and accredited registrars are sticking to their contracts.

For registries, the plan calls for ICANN to look at things like compliance with Whois, zone file access, data escrow, monthly reporting, and other policies outlined in the registry agreements.

Verisign isn’t necessarily admitting that it thinks it would not pass the .net audit, but it is sending a strong signal that it believes ICANN’s authority over it has limits.

In the program’s FAQ, ICANN admits that it does not have explicit audit rights over all contracted parties, stating:

What’s the basis for including all contracted parties, when the ‘Right to Audit’ clause isn’t present in 2001 RAA and Registry Agreements?

One of ICANN’s responsibilities is to conduct audits of its agreements in order to ensure that all contracted parties are in compliance with those agreements.

If Verisign is refusing to participate, other registries may decide they don’t want to cooperate either. That wouldn’t look good for ICANN, which has made compliance a key strategic priority.

When Fadi Chehade started as CEO last September, one of his first moves was to promote compliance boss Maguy Serad to vice president, reporting directly to him.

He told DI that he would be “bringing a lot more weight and a lot more independent management from my office to the compliance function”.

At his inaugural address to the community in Prague last June, he spoke of how he planned to bring IBM-style contract management prowess to ICANN.

Compliance is also a frequently raised concern of the Governmental Advisory Committee (though generally geared toward rogue registrars rather than registries).

Surprise! Verisign to increase .net fees

Kevin Murphy, December 19, 2012, Domain Registries

Verisign has just announced that it will increase its .net registry fee by 10% next year.

The changes, which will become effective July 1, 2013, see the charge for a one-year registration increase from $5.11 to $5.62.

The increase, which is permitted under Verisign’s contract with ICANN, was inevitable given the fact that the company has just lost the right to increase .com prices.

US Department of Commerce intervention in .com means that prices there are frozen for the next six years, so Verisign can be relied upon to seize every alternative growth opportunity available to it.

The last time .net’s fee was increased was January 2012, when it went up by 10% to the current $5.11.

Verisign’s IDN gTLDs “could increase phishing” say Asian registries

Kevin Murphy, November 30, 2012, Domain Policy

It’s a bad day for Verisign.

As the company pins its growth hopes partially on its applications for IDN gTLDs — in the wake of losing its price-raising powers over .com — ccTLD registries from Asia-Pacific have raised serious concerns about its bids.

The Asia Pacific Top Level Domain Association says that many of its members reckon the proposed IDN transliterations of .com “could give rise to an increased risk of phishing and other malicious abuses”.

Verisign has applied for a dozen transliterations of .com and .net in scripts such as Hebrew, Cyrillic and Arabic. The strings themselves are meaningless, but they sound like “com” and “net”.

It’s for this reason that APTLD reckons they could cause problems. In an October 1 letter to ICANN, published today, the organization said:

In addition to the potential for user confusion, some [Working Group] members also noted that the creation of transliterated TLDs, without the development of adequate registration and eligibility polices and procedures, could give rise to an increased risk of phishing and other malicious abuses of the new spaces.

The WG notes that this potential problem manifests itself at the second level, and is not unique to tranlisterated TLDs, but would argue that the very nature of these TLDs, and their close similarity to existing TLDs, makes them particularly high-risk targets.

The letter does not single out Verisign, and does not represent a consensus APTLD view.

There are also worries among APTLD members about the application for .thai in Latin script, which could clash with Thailand’s IDN ccTLD, and various translations of “.site”.

APTLD notes that the new gTLD evaluation process only contains checks for visual similarity between TLDs.

The only way to block an application based on phonetic confusion is to file a String Confusion Objection, but the only entity eligible to object to Verisign’s applications is Verisign itself.

Worldwide domains up to 240 million

Kevin Murphy, October 2, 2012, Domain Registries

There are now more than 240 million registered domain names on the internet, according to Verisign.

Its latest Domain Name Industry Brief reports that a net of 7.3 million names were added across all TLDs in the second quarter, a 3.1% sequential increase, up 11.9% on Q2 2011.

Verisign’s own .com and .net hit 118.5 million domains by the end of June, up 1.6% sequentially and 7.8% year-over-year. Renewals were at 72.9%, down from 73.9% in Q1.

The company reported that new .com and .net registrations in the period totaled 8.4 million.