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.shop pricing sunrise renewals at $1,000

If you’ve spent over $40 million on a gTLD, you need to make your money back somehow, right?

It’s emerged that GMO Registry, which paid ICANN a record $41.5 million for .shop back in January, plans to charge $1,000 renewal fees, wholesale, on domains registered during its upcoming sunrise period.

Trademark owners will seemingly have to pay over the odds for domains matching their trademarks, while regular registrants will have a much more manageable annual fee of $24.

The prices were disclosed in a blog post from the registrar OpenProvider last week, in which the company urged GMO to lower its prices.

Sunrise is due to start June 30, running for 60 days, so there’s still a chance prices could change before then.

It’s not the first registry to charge more for sunrise renewals than regular renewals.

Any company that bought a .sucks domain during sunrise was lumbered with a recurring $2,499 registry fee.

.green also had a $50 annual sunrise renewal premium before Afilias took over the gTLD in April.

Others have charged higher non-recurring sunrise fees. With .cars, the sunrise fee was $3,000, which was $1,000 more than the regular GA price.

Patent troll hits registrars with $60m shakedown

Kevin Murphy, January 25, 2016, Domain Registrars

A patent troll that claims it invented email reminders has launched a shakedown campaign against registrars that could be worth as much as $62 million.

WhitServe LLC, which beat Go Daddy in a patent lawsuit last year, is now demanding licenses from registrars that could add as much as $0.50 to the cost of a domain name.

According to registrar sources, registrars on both sides of the Atlantic have this month been hit by demands for hundreds of thousands or millions of dollars in patent licensing fees.

The legal nastygrams present thinly veiled threats of litigation if the recipients decline to negotiate a license.

WhitServe is a Connecticut-based IP licensing firm with connections to NetDocket, which provides software for tracking patent license annuities.

It owns US patents 5,895,468 and 6,182,078, both of which date back to the late 1990s and cover “automating delivery of professional services”.

Basically, the company reckons it invented email reminders, such as those registrars send to registrants in the weeks leading up to their domain registration expiring.

Three years ago, GoDaddy, defending itself against WhitServe’s 2011 patent infringement lawsuit, compared the “inventions” to the concept putting “Don’t forget to pick up milk” notes on the fridge: utterly obvious and non-patentable.

In December 2012, GoDaddy implied WhitServe used its patent expertise and exploited a naive 1990s USPTO to obtain “over-broad” patents.

It was trying “to monopolize the entire concept of automatic Internet reminders across all industries, including domain name registrars”, according to a GoDaddy legal filing.

But the market-leading registrar somehow managed to lose the case, opting to settle last August after its last defense fell apart, for an undisclosed sum.

Now, WhitServe is using that victory to shake loose change out of the pockets of the rest of the market.

It’s told registrars that GoDaddy and Endurance International (owner of Domain.com, BigRock and others) are both currently licensing its patents.

The deal it is offering would see registrars pay $0.50 for every domain they have under management, a number that seems to be based on .com registry numbers reported by Verisign.

The fee would be reduced to $0.30 per name for each name over one million, and $0.20 for each name over five million, I gather. That’s still more than registrars pay in ICANN fees.

If WhitServe were to target every .com registrar (which I do not believe it has, yet) its demands could amount to as much as $62 million industry-wide, given that .com is approaching 125 million names right now.

It’s not clear whether these fees are expected to be one-time payments or recurring annual fees.

It’s a trickier predicament for registrars than the usual patent shakedown, because registrars are legally obliged under their contracts with ICANN to send email reminders in a variety of circumstances.

The Expired Registration Recovery Policy requires them to email renewal reminders to customers at least twice before their registrations expire.

There’s also the Whois Data Reminder Policy, which obliges registrars to have their customers check the accuracy of their Whois once a year.

These are not services registrars are simply able to turn off to avoid these patent litigation threats.

Whether registrars will take this lying down or attempt to fight it remains to be seen.

URS coming to .travel under big contract changes

The .travel gTLD, which was approved 10 years ago, will have to support the Uniform Rapid Suspension service, one of several significant changes proposed for its ICANN contract.

I believe it’s the first legacy gTLD to agree to use URS, which gives trademark owners a way to remove domain names that infringe their marks that is quicker and cheaper than UDRP.

Tralliance, the registry, saw its .travel Registry Agreement expire earlier this month. It’s been extended and the proposed new version, based on the New gTLD Registry Agreement, is now open for public comment.

While the adoption of URS may not have much of a direct impact — .travel is a restricted TLD with fewer than 20,000 names under management — it sets an interesting precedent.

IP interests have a keen interest in having URS cover more than just 2012-round gTLDs. They want it to cover .com, .org, .net and the rest too.

Domain investors, meanwhile, are usually cautious about any changes that tilt the balance of power in favor of big brands.

When .biz, .org and .info came up for renewal in 2013, the Intellectual Property Constituency filed comments asking for URS to be implemented in the new contracts, but the request was not heard.

I’m aware of two ccTLDs — .pw and .us — that voluntarily adopted URS in their zones.

Other changes include a requirement for all .travel registrars, with the exception of those already selling .travel domains, to be signatories of the stricter 2013 Registrar Accreditation Agreement.

That’s something Afilias and Neustar only agreed to put in their .info and .biz contracts if Verisign agrees to the same provisions for .com and .net.

The fees Tralliance pays ICANN have also changed.

It currently pays $10,000 in fixed fees every year and $2 per billable transaction. I estimate this works out at something like $40,000 to $50,000 a year.

The proposed new contract has the same fees as 2012-round new gTLDs — a $25,000 fixed fee and $0.25 per transaction. The transaction fee only kicks in after 50,000 names, however, and that’s volume .travel hasn’t seen in over five years.

Tralliance will probably save itself thousands under the new deal.

The contract public comment forum can be found here.

Timing of .com contract renewal is telling

Kevin Murphy, March 28, 2012, Domain Registries

The timing of the publication of the renegotiated .com registry contract may give Verisign and ICANN the chance to duck some criticism about its price-raising powers.

According to ICANN’s announcement last night, the draft contract is up for public comment until April 26, a week before we find out how much new gTLD business Verisign has won.

Verisign is expected to have secured a large share of the burgeoning market for new gTLD back-end registry services.

It is whispered that a great many North American brands planning to apply for their own dot-brand gTLDs prefer Verisign as their registry provider, due to its reputation for stability.

That up-time is of course provided by a robust, distributed infrastructure paid for over the years by the same .com registrants now facing four more years of price increases.

It’s debatable whether Verisign can continue to make a convincing public interest case for .com price hikes if it’s also profiting by hosting dot-brands on the same boxes and pipes.

But because the public comment period closes April 26 and ICANN does not plan to publish the new gTLD applications until May 2, the argument that Verisign is using .com buyers to subsidize its dot-brand business will have to be made without hard data to back it up.

I doubt such arguments would be heard anyway, frankly. ICANN pretty much has its hands bound by the 2006 contract when it comes to messing around with pricing controls.

For those opposed to price increases, a more effective lobbying strategy might head straight to Washington DC, where the Departments of Commerce and Justice will both study the deal from September.

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