Verisign WILL get .web, ICANN rules

Verisign did nothing wrong when it won the $135 million .web gTLD auction via a secret intermediary, ICANN’s board of directors has decided.

The board voted at the weekend to declare that Nu Dot Co, the shell company that applied for .web “did not violate the Guidebook or the Auction Rules” when it signed a secret side-deal that would see Verisign fund its bid in exchange for handing over the registry contract after it is signed.

The board has told ICANN management to continue to process NDC’s application, which has been tied up in legal red tape since the auction in 2016.

ICANN did not rule on Verisign’s claims that second-place bidder Afilias broke the rules when executives sent text messages trying to resolve the contention set during a “black out” period immediately prior to the auction.

The ruling means that, absent any further legal action, NDC can soon sign its Registry Agreement and attempt to transfer it to Verisign, a procedure that is not often controversial when M&A takes place.

It could mean .web, which has been fiercely contested for over 20 years, launches this year.

.web gTLD was first applied for in 2000. Afilias, Neustar (then Neulevel) and others viewed it as the best probable competitor for .com and wanted that sweet, sweet action.

But ICANN instead awarded them .info and .biz respectively, in part because another applicant, Image Online Design, was already running .web in an alternate root.

There were seven applicants in the 2012 round, but attempts at privately resolving the contention set were resisted by NDC, leading to suspicions that it was being secretly bankrolled by a much larger non-applicant company.

That turned out to be true when Verisign fessed up after the auction that it was funding NDC’s $135 million winning bid.

Because Verisign has market power, ICANN referred the deal to US competition regulators, the Department of Justice, which gave the all-clear in 2018.

Runner-up Afilias immediately set the ball rolling to file an Independent Review Process complaint with ICANN, which it did in 2018, claiming ICANN broke its bylaws by failing to establish that Verisign was NDC’s sugar daddy before the auction.

The Afilias .web application is currently owned by Altanovo, the company formed of all the bits of Afilias that Identity Digital (then Donuts) didn’t want when it acquired Afilias.

The IRP panel ruled for Afilias, saying ICANN should have at the very least made a decision on whether the deal was kosher before starting to contract with NDC. That ruling became final at the end of 2021.

It’s taken ICANN 16 months to actually make its decision.

And its rationale? Hard to say with any degree of certainty.

Both sides’ arguments rely heavily on the text of the Domain Acquisition Agreement between Verisign and NDC, and ICANN has redacted all references to that document’s contents (presumably at Verisign’s demand) in its resolution and accompanying rationale.

The board said:

NDC remains the applicant and, if NDC enters into a Registry Agreement with ICANN, NDC will become the Registry Operator for .WEB. Whether or not NDC then attempts to assign the Registry Agreement to Verisign is, at this point, an event that has not occurred and conceivably may not occur depending on the circumstances at the time. And if NDC subsequently decides to request such an assignment, there are processes in place to review such a request, including the need for ICANN’s approval of that request. Such an assignment does not equate to a “circumvention” of the application process but, rather, is a necessary component for servicing Registry Operators and allowing the continued operation of gTLDs.

The board additionally notes that the process of sorting all this out took years and millions of dollars of legal fees.

Travel gTLD registry dumps three strings — NOT dot-brands

Future new gTLD application rounds will likely have three extra travel-related strings up for grabs, after the barely-precedented decision by a registry operator to dump three generic, non-branded strings.

Travel Reservations Srl, the registry owned by Despegar, one of South America’s largest online travel booking services, has told ICANN to tear up its contracts for .hoteles, .vuelos and .passagens.

These are the Spanish translations of “hotels” and “flights” and the Portuguese for “tickets” respectively. Despegar had also applied for the Portuguese .hoteis, but withdrew its bid before delegation.

None of the gTLDs ever launched and none had any registered domains. As such ICANN is not looking for a successor registry to protect registrants. The strings will be available to other applicants in future rounds.

Despegar never made any secret about the fact that it didn’t quite know what it wanted to do with its gTLDs when it applied in 2012, its applications noting that it would take a wait-and-see approach before making the domains available.

It waited, it saw, and a decade later it’s apparently decided it doesn’t want to operate these TLDs after all.

The fact that its termination notices were sent in January this year but dated November 6, 2020, may be indicative.

New gTLDs — implementation talks to start next month

ICANN expects to kick off its implementation efforts for the next rounds of new gTLDs next month.

The Org is putting together its Implementation Review Team, a group of community members that will help shepherd staff into turning policy into reality.

Each supporting organization, advisory committee and constituency will get to nominate a representative (and an alt) and ICANN will put out an open call for volunteers for the team.

Members of the working group that came up with the policy recommendations in the first place are expected to be likely candidates.

The IRT’s main objective is to make sure that ICANN sticks to the letter and spirit of the recommendations, many of which were adopted by its board of directors last month, and prevent members re-litigating settled disputes.

ICANN expects to hold its first IRT meeting the week of May 14 or sooner.

ICANN spent millions of dollars and most of 2022 carrying out an Operational Design Assessment of new gTLDs policy recommendations, which was intended in part to relieve the IRT of some heavy lifting and speed it up.

.food registry to dump four dot-brand gTLDs

A company controlled by Warner Bros Discovery is dumping four of its dot-brand gTLDs, but keeping hold of .food, which it has been sitting on, unused for the better part of eight years.

Lifestyle Domain Holdings has asked ICANN to terminate its registry contracts for .foodnetwork, .travelchannel, .hgtv and .cookingnetwork, which are four of its US cable TV channels.

Unusually, the termination notice contains a bit of color explaining its decision:

Despite efforts over the years to develop a marketing strategy for deployment of these assets, the company has determined there is not a current use for them and therefore requests early termination of the ICANN Registry Agreements and to wind down these assets

The gTLDs have never been used, something that can also be said for the remainder of Lifestyle’s original portfolio of 11 gTLDs.

The registry was originally owned by Scripps Networks, but following a series of M&A since last year it’s been majority owned by media giant Warner Bros Discovery.

It also has current contracts for .food, .diy, .cityeats, .living, .frontdoor, .lifestyle, and the mysterious .vana (presumably a brand that Scripps was planning to launch in 2012 that never materialized).

The registry’s back-end was Verisign and its new gTLD consultant was Jennifer Wolfe.

Google to drop EIGHT new gTLDs

Google Registry has announced launch details for eight new gTLDs that it has been sitting on for almost a decade.

It plans to launch .foo, .zip, .mov, .nexus, .dad, .phd, .prof and .esq over the coming couple of months, with all eight following the same launch schedule.

Sunrise will begin this weekend, April 2, and run for a month. The Early Access Periods will run for a week up until May 10, when they’re all go into general availability.

The .zip and .mov spaces will be worth keeping an eye on, especially for those in the security space.

Both gTLDs match popular file extensions — for compressed data and video respectively — which could present opportunities for innovation among the internet’s more nefarious players, such as phishers and malware distributors.

.zip is for “tying things together or moving really fast”, Google said, while .mov is “for moving pictures and other things that move”.

All of the new spaces appear to be marketed at general audiences, with no registration restrictions.

Governments backtracking on closed generics ban

ICANN’s Governmental Advisory Committee appears to be backpedaling on its commitment to permitting so-called “closed generic” gTLDs in the next application round.

The GAC’s output from ICANN 76, which took place in Cancun last week, contains a paragraph that suggests that governments are reverting to their decade-old position that maybe closed generics are not a good idea.

The GAC, GNSO and At-Large have been engaging in a “facilitated dialogue” for the past few months in an attempt to figure out whether closed generics should be allowed and under what terms.

The GAC is now saying “no policy option, including the prohibition of Closed Generics, should be excluded if no satisfactory solution is found”. It had agreed to the dialogue on the condition that prohibition would not be an outcome.

A closed generic is a single-registrant gTLD matching a dictionary word that is not a trademark. Think McDonald’s controlling all the names in .burger or Jack Daniels controlling the whole .whiskey zone.

These types of TLDs had not been banned in the 2012 application round, resulting over 180 gTLD applications, including the likes of L’Oreal applying for .makeup and Symantec’s .antivirus.

But the GAC took a disliking to these applications, issuing advice in 2013 that stated: “For strings representing generic terms, exclusive registry access should serve a public interest goal.”

This caused ICANN to implement what amounted to a retroactive ban on closed generics. Many applicants withdrew their bids; other tried to fudge their way around the issue or simply sat on their gTLDs defensively.

When the GNSO came around to developing policy in 2020 for the next new gTLD round, it failed to come to a consensus on whether closed generics should be allowed. It couldn’t even agree on what the default, status quo position was — the 2012 round by policy permitted them, but in practice did not. The matter was punted to ICANN.

A year ago, ICANN said the GAC and GNSO should get their heads together in a small group, the “facilitated dialogue”, to resolve the matter, but the framing paper outlining the rules of engagement for the talks explicitly ruled out two “edge outcomes” that, ICANN said, were “unlikely to achieve consensus”.

Those outcomes were:

1. allowing closed generics without restrictions or limitations OR

2. prohibiting closed generics under any circumstance.

The GAC explicitly agreed to these terms, with then-chair Manal Ismail (who vacated the seat last week) writing (pdf):

The GAC generally agrees with the proposed parameters for dialogue, noting that discussion should focus on a compromise to allow closed generics only if they serve a public interest goal and that the two “edge outcomes” (i.e. allowing closed generics without restrictions/limitations, and prohibiting closed generics under any circumstance) are unlikely to achieve consensus, and should therefore be considered out of scope for this dialogue.

Now, after days of closed-door facilitated dialogue have so far failed to reach a consensus on stuff like what the “public interest” is, the GAC has evidently had a change of heart.

Its new Cancun communique states:

In view of the initial outputs from the facilitated dialogue group on closed generics, involving representatives from the GAC, GNSO and At-Large, the GAC acknowledges the importance of this work, which needs to address multiple challenges. While the GAC continues to be committed to the facilitated dialogue, no policy option, including the prohibition of Closed Generics, should be excluded if no satisfactory solution is found. In any event, any potential solution would be subject to the GAC’s consensus agreement.

In other words, the GAC is going back on its word and explicitly ruling-in one of the two edge outcomes it less than a year ago had explicitly ruled out.

It’s noteworthy — and was noted by several governments during the drafting of the communique — that the other edge outcome, allowing closed generics without restriction, is not mentioned.

It’s tempting to read this as a negotiating tactic — the GAC publicly indicating that a failure to reach a deal with the GNSO will mean a closed generics ban by default, but since the facilitated dialogue is being held entirely in secret it’s impossible to know for sure.

Radix sold almost $8 million of premiums last year

New gTLD portfolio Radix made $7.8 million from the sale of $100+ premium domains in 2022, over $5 million of which came from premium renewals.

The company this week released its second-half premiums roundup, showing $4 million in total premium retail revenue, $2.7 million of which came from renewals.

That follows first-half numbers of $3.8 million total and $2.5 million from renewals.

It made $1.3 million selling 1,458 first-year premiums, and $2.7 million renewing 2,483 names.

First year renewals were at 61%, second year at 79% and subsequent years, as we revealed in January, at a whopping 90%.

The best-performing TLDs were .tech, .store and .space.

The dollar values are at the retail level; Radix’s own share will be about 30% lighter.

.art links DNS and alt-root ENS

UK Creative Ideas, the .art gTLD registry, has started offering its registrants the ability to register names on the blockchain-based alt-root Ethereum Name Service that exactly match their DNS names, for a one-time fee.

CMO Jeff Sass said that for $20, paid in Ethereum coin, registrants can secure their exact-match on the ENS, with no renewal fees.

There’s an authentication system using DNS TXT records to make sure only .art DNS registrants can obtain their matching ENS names, he said.

“We’ve married the two together, so there can’t be any confusion or collisions,” he said.

The benefit of this is that registrants will be able use their .art domains to address their cryptocurrency wallets. Web browsers that support ENS obviously already support DNS, so there’s no real benefit in that context.

.ART is also selling ENS .art names without matching DNS names — and these can include ICANN-prohibited characters such as emojis — but these are priced from $5 to $650, based on character count, and have annual renewal fees.

.art current has about 230,000 registered names, a pretty respectable number for a new gTLD, and Sass said about 60% of them are in the form of firstnamelastname.art, suggesting usage by professional and amateur artists.

gTLD registries selling matches in alt-roots has been a cause of concern at ICANN over recent years, due to legal concerns. Uniregistry’s sale of its portfolio was held up for months because of this.

Brands want new gTLD fast track

The Brand Registry Group is to propose a set of principles for the next round of ICANN’s new gTLD program that it thinks would see the initial application fee slashed by more than half and some evaluations starting as early as this October.

Under the proposals, TLD-curious applicants could get into the system for as little as $100,000 per string, about $150,000 lower than ICANN’s current estimate, and could see ICANN accepting applications as early as April 2025.

The recommendations, drafted by GoDaddy’s Tony Kirsch and Pharos Global’s Michael Palage, will be presented at a session on Saturday, the first day of ICANN’s 76th public meeting, in Cancun, Mexico.

They’re calling the proposals “Option 2a”, a reference to the two options laid out in ICANN’s Operational Design Assessment of the next round, which was completed in December.

The plan would allow applicants to pay $100,000 to submit a bare-bones application and test the waters in terms of contention, objections and similarity. They could then choose to withdraw before submitting the financial and technical portions of their bid.

Applicants with straightforward applications (presumably including most dot-brands) would have a lower overall cost than those who need additional reviews, contention resolution and objection processing.

The paper also criticizes the “astonishing” estimate of a $400 million program development cost, suggesting instead that ICANN repurpose its existing tools such as Salesforce to roll out the application submission system.

It reckons ICANN could start its Registry Service Provider Pre-Evaluation Program, based on the process it already uses when registries switch back-ends, in October this year.

If ICANN adopts the proposals, the BRG reckons a final Applicant Guidebook could be approved in October 2024, with applications accepted from April 2025.

Identity Digital to launch .watches this month

Identity Digital has announced the launch timetable for its .watches gTLD.

Sunrise will kick off on March 28, running for two months until May 27. This is the period where only registered trademark owners can apply for a name.

The Early Access Program, in which names carry a premium price that decreases every day for a week, will run from May 31 to June 7, immediately after which the gTLD will enter general availability.

Despite the fact that .watches has been live in the DNS since December 2015, there are no registered domains so far.

The original registry was luxury goods maker Richemont, an early proponent of new gTLDs that ultimately lost interest and offloaded its portfolio, including the Chinese version of .watches, over the years.

.watches was sold to Afilias in late 2020, shortly before that company is turn was acquired by Donuts, since rebranded Identity Digital.