Latest news of the domain name industry

Recent Posts

.reise to start at $400k in no-reserve auction

Kevin Murphy, February 11, 2015, Domain Registries

Applicant Auction has revealed the starting price of the first live new gTLD to be auctioned off.

Dotreise’s .reise will have a minimum starting bid of $400,000 when it hits the block on February 27, the company revealed.

There will be no reserve.

It seems quite possible that the registry is barely covering its costs, assuming the TLD sells. The application fee was $185,000, and no doubt the company has racked up many more expenses over the last three or four years.

The TLD, which is German for “.travel” has been in general availability since August but has fewer than 1,300 registrations, selling at up to $180 a year.

It competes with Donuts’ $25-a-year .reisen, which pretty much means the same thing.

Chehade declines to backtrack on domain “hogging” comments

Kevin Murphy, February 10, 2015, Domain Policy

ICANN CEO Fadi Chehade responded yesterday to anger from domain investors over recent comments in which he talked about “hogging” domain names and implied a link to cybersquatting.

But he did not, at least as far as I understood his explanation, backtrack on his original remarks.

Chehade was cheekily asked his current thoughts on domain “hoggers” by blogger David Goldstein during a press conference at the ICANN 52 meeting in Singapore yesterday.

This is the entirety of his reply:

I think the statement I made to a different media outlet about that was conflated to signify I was including in this all those who are in the domain name business. And that’s not true. There are those that do this as a business and do it very well and actually enhance the market and there are those that do it and make the business and the market less attractive and less desirable. So I think any insinuation that that statement engulfs everyone that is in this business is not true. As you know very well I’ve a very big supporter of the industry groups and was one of the people who was frankly very happy when the Domain Name Association was created and I attended their first formation meeting. This is where we stand and we continue to feel good about how this market is evolving and how these players are making this a good market that serves the public interest.

Having listened to it a few times, I wonder whether Chehade deliberately didn’t backtrack on his original remarks, or whether he doesn’t quite understand why they caused offense in the first place.

A couple of weeks back, Chehade was talking to the Huffington Post about new gTLDs during an interview at the World Economic Forum in Davos.

The interviewer asked about “concerns about a land-grab going on” among domain speculators.

It was a bit of a silly question, if you ask me. A speculative land-grab is pretty low down the list of concerns held by critics of the new gTLD program. Regardless, Chehade replied:

The reality is, the more there are names, the less people will actually be hogging names in order to charge a lot for them. Because if somebody took your name on dot X, you can go get another name on dot Y now.

I’d personally agree with that characterization of the program. It’s meant to make finding a good name at a cheap price easier. “Hogging” was probably a poor choice of words, but Chehade was talking off the cuff so I could give him a pass.

But later in the same reply, he used the term “cybersquatting” in such a way as to make it easy to infer he was conflating domain investing with cybersquatting. That’s a loaded term that is usually reserved for trademark infringement, at least when used inside the industry.

Obviously this was guaranteed to get investors’ hackles up.

First up with the hackles was Mike Berkens, who called Chehade out on The Domains, saying he “throws large domain investors under the bus and then backs up the bus and rolls over them again”.

Berkens pointed out, quite reasonably I thought, that ICANN is funded to a great extent by domain investors. He estimates that he alone pays ICANN about $15,000 a year in the fees that are collected at the point of registration and renewal.

By some estimates, which may even be conservative, about a third of new gTLD registrations to date have been made to speculators.

Berkens made the even better point that many of the people who have pumped hundreds of millions of dollars into the new gTLD program — Uniregistry’s Frank Schilling, XYZ.com’s Daniel Negari and multiple Donuts executives, for example — made their fortunes investing in second-level domains.

He concluded:

All and all some pretty ignorant statements in our opinion made by the CEO of ICANN and an insult to those domain investors that are some of the biggest buyer’s of new gTLD’s domain names who have paid ICANN a small fortune over the years allowing them to travel the world, pay millions a year in salary and other benefits.

Phil Corwin Jeremiah Johnston of the Internet Commerce Association followed up a few days ago with an open letter to Chehade which explained the outrage in slightly more formal and lawyerly way, with all the apostrophes in the right places. He wrote:

The ICA objects to your statement as it expresses a disdainful view towards the legitimate activity of domain investing, a hostile view of domain investors who are significant ICANN stakeholders who are deeply affected by its policies, a lack of awareness of the market realities of domains as an asset class, and an unwarranted promotion of new gTLD domains over those at legacy gTLDs.

Domain investors are not “hogs” and they most certainly are not deliberate trademark infringers, or “cybersquatters”. It is not clear what you intended by your reference to “cybersquatting”, though it is concerning that you used this pejorative term just after making disparaging remarks about domain investors.

With all these criticisms in mind, let’s go back and parse what Chehade said in Singapore yesterday.

First, he said his remarks had been wrongly “conflated to signify I was including in this all those who are in the domain name business”.

I’m not sure that’s what happened. I’m pretty certain Berkens and his commenters, and then Corwin Johnston, got the hump purely because Chehade dismissed domain investing as “hogging” and then implied a link between investing and trademark infringement.

Who is Chehade talking about when he draws a distinction between those who “enhance the market” and those who “make the business and the market less attractive”?

Is the line drawn between the trademark infringers and the legitimate investors, or its it drawn somewhere else?

Why did Chehade go on to express his support for the DNA, a sell-side trade group funded largely by registries and registrars? Was he drawing the line between regular second-level domainers (hogging) and those that in many cases are essentially just top-level domainers (enhancing)?

Chehade was given the opportunity to backtrack and he didn’t take it.

I’m not a domainer, but if I were I don’t think I’d be particularly satisfied about that.

Anger as governments delay two-letter domains

Kevin Murphy, February 9, 2015, Domain Registries

ICANN has heard an angry response from gTLD registries after delaying the release of two-character domains in new gTLDs, apparently at the whim of a small number of governments.

ICANN has yet to approve any of the over 350 requests for the release of two-letter domains filed by registries under a process approved by its board last October and launched in December.

The reason, according to registries, is that members of ICANN’s Governmental Advisory Committee — probably a minority — have objected and ICANN staff has “unilaterally” put a halt to the process.

Some governments — Spain, Italy and Cote d’Ivoire among them — are concerned that two-letter domains, such as es.example or it.example, may cause confusion with existing ccTLDs.

But the GAC itself was unable to find a consensus against the release of two-letter domains when it discussed the issue back in October. It merely asked for comment periods to allow individual governments to object to specific domains.

So ICANN’s board asked staff to create an “efficient procedure” to have requests swiftly approved, taking some of the stress off of the regular Registry Services Evaluation Process.

Two-letter domains have a premium dollar value for open registries, while multinational dot-brands expect to find them useful to market to the territories in which they operate.

Under the streamlined approval process, each request is subject to a 30-day comment period, and would be approved or not within seven to 10 days.

Right now, the oldest requests, which were filed in early December, are almost a month overdue for a response. The Registries Stakeholder Group told ICANN, in a letter (pdf):

We write to raise serious concern about what appears to be a recent closed-door, unilateral decision by ICANN staff, which took place over a period of weeks, to defer action on pending requests for two-character labels. This action was apparently initiated as a result of recent correspondence you received from the Chair of the Governmental Advisory Committee — but which critically does not represent formal consensus advice or even purport to represent the opinion of the GAC as a whole

It’s a case of governments strong-arming ICANN staff into changing policy, the registries claim.

GAC chair Thomas Schneider’s letter (pdf) says that an unspecified number of governments have “concerns” that the approval process was launched quite quickly and without any formal consultation with the GAC.

He goes on to make a laundry list of recommendations for making the process more amenable to governments, before requesting a “stay” on approvals until the GAC has further discussed the issue.

To date, registries representing a little over 300 strings have completed their 30-day comment periods, yet there have been only four comments from governments.

Italy and Cote d’Ivoire want ICANN to deny all requests for it.example and ci.example, because they may be confused with ccTLDs.

Spain, meanwhile, filed specific objections against the release of es.bingo, es.casino and es.abogado (lawyer), saying that these are regulated industries in Spain and should only be given to registrants who “have the required credentials”.

The RySG wants ICANN staff to immediately start approving requests that have passed through the comment process. The GAC says it will discuss the matter further at the ICANN 52 meeting currently going on in Singapore.

When RySG members raised the topic at a meeting the with ICANN board yesterday, directors avoided directly addressing the specific concerns.

In a first for new gTLDs, Aquitaine dumps geo bid

Kevin Murphy, February 5, 2015, Domain Registries

The authority for the French region of Aquitaine has become the first applicant for a geographic new gTLD to pull its application apparently of its own accord.

Région d’Aquitaine’s bid for .aquitaine was withdrawn today, despite the fact that the applicant was already in the contracting stage with ICANN.

A handful of other geographic gTLD applications have been withdrawn previously, but only due to disputes between the applicant and the governments of the regions they wanted to represent.

.aquitaine is the first would-be geographic gTLD to be pulled after passing through the evaluation stage of the program.

Aquitaine is one of France’s 27 formal regions, with a population of over three million.

With Cayman deal, Uniregistry now runs ccTLDs too

Kevin Murphy, February 5, 2015, Domain Registries

Uniregistry has got into the ccTLD business, taking over management of the Cayman Islands’ .ky domain this week and planning a relaunch for later this month.

Uniregistry, which is based in Cayman, has replaced a US company called SilverSky, now part of BAE Systems, as the official registry for .ky.

CEO Frank Schilling told DI that the previous custodian was running a manual registration process but that the ccTLD will now run on the same platform Uniregistry uses for its new gTLDs.

The company will act as both registry and registrar for the names, though the space will be opened up to third-party registrars.

The wholesale fee will be $29, with Uniregistry’s registrar business retailing names for $39 a year, Schilling said.

The ccTLD will be relaunched later this month with a six-month period where only people with a self-professed (check-box) “nexus” to the Cayman Islands will be able to register names, Schilling said.

There won’t be a sunrise period in the classical sense, but UDRP will apply, he said.

An official announcement about dates and eligibility rules is due some time this month, about a week before the relaunch.

Currently, .ky has about 11,000 registrations, Schilling said. That may be considered surprisingly high, given Cayman’s small population (under 60,000) and the apparent lack of automation in place previously.

But Cayman is a tax haven, and overseas companies often choose to register .ky names to help convince the tax man where they really are based that they have a true connection to the territory.

Schilling said that the Cayman government’s registrar of companies will promote .ky domains to businesses that set up a presence there.

He added that its shipping register will plug the names to those who moor their “super yachts” in Cayman.

The deal with the Cayman government, which remains the “owner” of .ky as far as IANA is concerned, is the first of what Schilling said he hopes will be many ccTLD relationships.

Uniregistry has also bid to run Bermuda’s .bm, which is currently managed in-house by the country’s government, and is talking to other ccTLDs as well, Schilling said.