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Radix claims 77% renewal rates after two years

Kevin Murphy, November 14, 2017, Domain Registries

New gTLD registry Radix says that three of its larger TLDs have seen a 77% renewal rate two years after launch.

The company said today that .online had 75% renewals, with .tech at 78% and .site at 81%.

It appears to have carved out these three from its portfolio for attention, ignoring the rest of its portfolio, because they all went to general availability in the same two-month period July and August 2015.

The renewal rates are for the first month of GA. In other words, 77% of the domains registered in the TLDs’ respective first month have been renewed for a third year.

Radix, in a press release, compared the numbers favorably to .com and .net, which had a combined renewal rate of 74% in the second quarter according to Verisign’s published numbers.

It’s probably not a fully fair apples-to-apples comparison. Domains registered in the first month of GA are likely higher-quality names registered by in-the-know early adopters, and therefore less likely to be dropped, whereas .com and .net have decades of renewal cycles behind them.

Radix also said that 86% of domains registered during the three TLDs’ sunrise periods and Early Access Periods are still being renewed, with .tech at 92% and .site at 88%.

Amazon and Google to fight over .kids at auction

Kevin Murphy, November 14, 2017, Domain Registries

Amazon, Google and a third applicant are scheduled to fight for control of the new gTLDs .kid or .kids at auction.

It’s the first ICANN gTLD auction to be scheduled since a Verisign puppet paid $135 million for .web in July 2016.

According to ICANN documentation, .kid and .kids will go to auction January 25, 2018.

The winning bid will be added to ICANN’s quarter-billion-dollar stash of auction proceeds, rather than shared out between the applicants.

Even though two different strings are at stake, it will be a so-called “direct contention” auction, meaning only .kids or .kid will ultimately go live.

Google, the sole applicant for .kid, had filed String Confusion Objections against .kids applications from Amazon and DotKids Foundation and won both, meaning the three applications were lumped into the same contention set.

Unless DotKids has a secret sugar daddy, it seems probable that the internet will next year either get a .kid gTLD operated by Google or a .kids gTLD operated by Amazon.

DotKids had applied as a “community” application and attempted to shut out both rivals and avoid an auction by requesting a Community Priority Evaluation.

However, it comprehensively lost the CPE.

Child-friendly domain spaces have a poor track record, partly due to the extra restrictions registrants must agree to, and are unlikely to be high-volume gTLDS no matter who wins.

Neustar operated .kids.us for 10 years, following US legislation, but turned it off in 2012 after fewer than 100 web sites used the domain. It made the decision not to reintroduce it in 2015.

The Russian-language equivalent, .дети, has been live for over three years but has only around 1,000 domains in its zone file.

The .kids/.kid auction may not go ahead if the three applicants privately negotiate a deal soon, but they’ve had over a year to do so already and have apparently failed to come to an agreement.

59,000% revenue growth at Donuts leads to Deloitte award

Kevin Murphy, November 9, 2017, Domain Registries

Deloitte has placed new gTLD registry Donuts at the top of its 2017 Technology Fast 500, a league table of the fastest-growing North American technology firms.

Donuts won by growing its revenue by 59,093% over three years.

Given that Donuts didn’t have its first revenue-generating gTLD delegated until the final quarter of 2013, the three-year judging period basically covers almost the entire period of its existence as a trading company.

The runners up were ClassPass (46,556%, founded 2013), which gives fitness junkies a centralized way to book from multiple classes, and Toast (31,250%, founded 2012), which makes point-of-sale software for restaurants.

Companies could submit themselves for consideration on the 500-strong table. They only needed 135% growth over three years to make it to the list.

The rankings are based on revenue, not profit, so it does not necessarily mean that gTLDs are a way to get rich quick.

Still, it’s impressive that something as dated as domain names could top the rankings, given the number of transformational technologies hitting the market every year.

“We own your name” government tells Amazon in explosive slapdown

Kevin Murphy, October 29, 2017, Domain Policy

Amazon suffered a blistering attack from South American governments over its controversial .amazon gTLD applications this weekend.

A Peruvian official today excoriated Amazon’s latest peace offering, telling the tech giant in no uncertain terms that the word “Amazon” is not its property and demanding an apology for the company’s alleged behavior during recent legal proceedings.

“We will be giving you permission to use a certain word, not the other way around,” she said. “We are the owners of the Amazonian region.”

Speaking for almost 10 minutes during a session at the ICANN 60 meeting in Abu Dhabi this afternoon, Peru’s representative to the Governmental Advisory Committee pulled rank and scolded Amazon like a naughty schoolchild.

She claimed that Amazon had been bad-mouthing Peru by saying former GAC reps had “lied to and manipulated” the rest of the GAC in order to get support for its objection. She then demanded an apology from the company for this.

She was speaking in support of the idea that the string “Amazon” belongs to the people of the Amazonas region, which covers as many as eight South American countries, rather than the American company, despite the fact that none of those countries use the English word to describe the region.

Her remarks drew applause from parts of the audience.

Amazon had showed up at the session — described by two GAC reps later as a “lion’s den” — to offer a “strong, agreed-upon compromise that addresses the needs of the governments”.

The proposed deal would see the GAC drop its objections to .amazon in exchange for certain safeguards.

Amazon is promising to reserve geographically and culturally sensitive words at the second level in .amazon.

The domain rainforest.amazon, its associate general counsel Dana Northcott said by way of example, would be never be used by anyone.

Affected governments would get to negotiate a list of such terms before .amazon went live and there’d be an ongoing consultation process for more such terms to be protected in future.

The company has also promised not to object to — and in fact to actively support with hard resources — any future applications for .amazonas or other local-language variants by the people of the region.

But Peru was not impressed, telling the company that not only is the English version of the name of the region not its property but also that it must show more respect to governments.

“No government is going to accept any impositions from you,” she said, before appealing to fellow GAC members that the issue represents a kind of existential threat.

“The core issue here… is our survival as governments in this pseudo-multi-stakeholder space that has been invented,” she said.

“They want us to believe this is a place where we have dignity but that is increasingly obvious that this is not the case,” she said. “We don’t have it. And that is because of companies like yours… Companies that persist in not respecting the governments and the people they represent.”

The Peruvian GAC rep, listed on the GAC web site as María Milagros Castañon Seoane but addressed only as “Peru” during the session, spoke in Spanish; I’ve been quoting the live interpretation provided by ICANN.

Her remarks, in my opinion, were at least partially an attempt to strengthen her side’s negotiating hand after an Independent Review Process panel this July spanked ICANN for giving too much deference to GAC advice.

The IRP panel decided that ICANN had killed the .amazon applications — in breach of its bylaws — due to a GAC objection that appeared on the face of the public record to be based on little more than governmental whim.

The panel essentially highlighted a clash between ICANN’s bylaws commitments to fairness and transparency and the fact that its New gTLD Applicant Guidebook rules gave the GAC a veto over any application for any reason with no obligation to explain itself.

It told ICANN to reopen the applications for consideration and “make an objective and independent judgment regarding whether there are, in fact, well-founded, merits-based public policy reasons for denying Amazon’s applications”.

That was back in July. Earlier today, the ICANN board of directors in response to the IRP passed a resolution calling for the GAC to explain itself before ICANN 61 in March next year, resolving in part:

Resolved (2017.10.29.02), the Board asks the GAC if it has: (i) any information to provide to the Board as it relates to the “merits-based public policy reasons,” regarding the GAC’s advice that the Amazon applications should not proceed; or (ii) any other new or additional information to provide to the Board regarding the GAC’s advice that the Amazon applications should not proceed.

Other governments speaking today expressed doubt about whether the IRP ruling should have any jurisdiction over such GAC advice.

“It is not for any panelist to decided what is public policy, it is for the governments to decide,” Iran’s Kavouss Arasteh said.

During a later session today the GAC, talking among itself, made little progress in deciding how to formally respond to the ICANN board’s resolution.

A session between the GAC and the ICANN board on Tuesday is expected to be the next time the issue raises its increasingly ugly head.

This is who won the .inc, .llc and .llp gTLD auctions

Kevin Murphy, October 19, 2017, Domain Registries

The winners of the auctions to run the gTLD registries for company identifiers .inc, .llc and .llp have emerged due to ICANN application withdrawals.

All three contested gTLDs had been held up for years by appeals to ICANN by Dot Registry — an applicant with the support of US states attorneys general — but went to private auction in September after the company gave up its protests for reasons its CEO doesn’t so far want to talk about.

The only auction won by Dot Registry was .llp. That stands for Limited Liability Partnership, a legal construct most often used by law firms in the US and probably the least frequently used company identifier of the three.

Google was the applicant with the most cash in all three auctions, but it declined to win any of them.

.inc seems to have been won by a Hong Kong company called GTLD Limited, run by DotAsia CEO Edmon Chong. DotAsia runs .asia, the gTLD granted by ICANN in the 2003 application round.

My understanding is that the winning bid for .inc was over $15 million.

If that’s correct, my guess is that the quickest, easiest way to make that kind of money back would be to build a business model around defensive registrations at high prices, along the lines of .sucks or .feedback.

My feedback would be that that business model would suck, so I hope I’m wrong.

There were 11 original applicants for .inc, but two companies withdrew their applications years ago.

Dot Registry, Uniregisty, Afilias, GMO, MMX, Nu Dot Co, Google and Donuts stuck around for the auction but have all now withdrawn their applications, meaning they all likely shared in the lovely big prize fund.

MMX gained $2.4 million by losing the .inc and .llc auctions, according to a recent disclosure.

.llc, a US company nomenclature with more potential customers of lower net worth, went to Afilias.

Dot Registry, MMX, Donuts, LLC Registry, Top Level Design, myLLC and Google were also in the .llc auction and have since withdrawn their applications.