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ICANN board meets to consider PIR acquisition TODAY

Kevin Murphy, November 21, 2019, Domain Policy

ICANN’s board of directors will gather today to consider whether the acquisition of Public Interest Registry by a private equity company means that it should reverse its own decision to allow PIR to raise .org prices arbitrarily.

Don’t get too excited. It looks like it’s largely a process formality that won’t lead to any big reversals, at least in the short term.

But I’ve also learned that the controversy could ultimately be heading to an Independent Review Process case, the final form of appeal under ICANN rules.

The board is due to meet today with just two named agenda items: Reconsideration Request 19-2 and Reconsideration Request 19-3.

Those are the appeals filed by the registrar Namecheap in July and rights group the Electronic Frontier Foundation in August.

Namecheap and EFF respectively wanted ICANN to reverse its decisions to remove PIR’s 10%-a-year price-raising caps and to oblige the registry to enforce the Uniform Rapid Suspension anti-cybersquatting policy.

Both parties now claim that the sale by the Internet Society of PIR to private equity firm Ethos Capital, announced last week, casts new light on the .org contract renewal.

The deal means PIR will change from being a non-profit to being a commercial venture, though PIR says it will stick to its founding principles of supporting the non-profit community.

I reported a couple of weeks ago that the board had thrown out both RfRs, but it turns out that was not technically correct.

The full ICANN board did in fact consider both appeals, but it was doing so in only a “preliminary” fashion, according to an ICANN spokesperson. ICANN told me:

On 3 November the Board considered “proposed determinations” for both reconsideration request 19-2 and 19-3. In essence, the Board was taking up the Board Accountability Mechanism Committee (BAMC) role, as the BAMC had not been able to reach quorum in early November due to certain recusals by BAMC members.

Once the Board adopted the proposed determinations (in lieu of the BAMC issuing a recommendation to the Board) the parties that submitted the reconsideration requests had 15 days to submit a rebuttal, for the Board’s full consideration of the matter, which is now on the agenda.

Normally, RfRs are considered first by the four-person BAMC, but in this case three of the members — Sarah Deutsch, Nigel Roberts, and Becky Burr — recused themselves out of the fear of appearing to present conflicts of interest.

The committee obviously failed to hit a quorum, so the full board took over its remit to give the RfRs their first pass.

The board decided that there had been no oversights or wrongdoing. Reconsideration always presents a high bar for requestors. The .org contract was negotiated, commented on, approved, and signed completely in compliance with ICANN’s governing rules, the board decided.

But the ICANN bylaws allow for a 15-day period following a BAMC recommendation during which rejected RfR appellants can submit a rebuttal.

And, guess what, both of them did just that, and both rebuttals raise the PIR acquisition as a key reason ICANN should think again about the .org contract changes.

The acquisition was announced a week ago, and it appears to have come as much of a surprise to ICANN as to everyone else. It’s a new fact that the ICANN board has not previously taken into account when considering the two RfRs, which could prove important.

Namecheap reckons that the deal means that PIR is now almost certain to raise .org prices. New gTLD registry Donuts was bough by Ethos affiliate Abry Partners last year, and this year set about raising prices across the large majority of its 200-odd gTLDs. Namecheap wrote in its rebuttal:

Within months of be acquired by Abry Partners, it raised prices in 2019 for 220 out of its 241 TLDs. Any statements by PIR now to not raise prices unreasonably are just words, and without price caps, there is no way that .org registrants are not used a source to generate revenue for acquisitions or to pay dividends to its shareholders.

It also said:

The timing and the nature of this entire process is suspicious, and in a well-regulated industry, would draw significant scrutiny from regulators. For ICANN not to scrutinize this transaction closely in a completely transparent and accountable fashion (including public disclosure of pertinent information regarding the nature, cost, the terms of any debt associated with the acquisition, timeline of all parties involved, and the principals involved) would demonstrate that ICANN org and the ICANN Board do not function as a trusted or reliable internet steward.

Namecheap also takes issue with the fact that ICANN’s ruling on its RfR (pdf) draws heavily on a 2009 economic analysis by Professor Dennis Carlton, which concluded that price caps were unnecessary in the new gTLD program.

The registrar trashes this analysis as being based on more opinion than fact, and says it is based on outdated market data.

Meanwhile, the EFF’s rebuttal makes the acquisition one of four reasons why it thinks ICANN should reverse course. It said;

ICANN must carefully reexamine the .ORG Registry Agreement in light of this news. Without the oversight and participation of the nonprofit community, measures that give the registry authority to institute new [Rights Protection Mechanisms] or make other major policy changes invite management decisions that conflict with the needs of the .ORG community.

Quite often, RfRs are declined by ICANN because the requestor does not present any new information that the board has not already considered. But in this case, the fact of the PIR acquisition is empirically new information, as it’s only week-old news.

Will this help Namecheap and the EFF with their cause? The board will certainly have to consider this new information, but I still think it’s unlikely that it will change its mind.

But I’ve also learned that Namecheap has filed with ICANN to trigger a Cooperative Engagement Process procedure.

The CEP is an often-lengthy bilateral process where ICANN and an aggrieved party attempt to resolve their differences in closed-door talks.

When CEP fails, it often leads to an Independent Review Process complaint, when both sides lawyer up and three retired judges are roped in to adjudicate. These typically cost both sides hundreds of thousands of dollars in legal fees.

CEP and IRP cases are usually measured in years rather than months, so the PIR acquisition could be under scrutiny for a long time to come.

Surprise! ICANN throws out complaints about .org price caps

Kevin Murphy, November 4, 2019, Domain Policy

ICANN has rejected two appeals against its decision to lift price caps and introduce new anti-cybersquatting measures in the .org space.

In other news, gambling is going on in Rick’s Cafe.

NameCheap and the Electronic Frontier Foundation both filed Requests for Reconsideration with ICANN back in July and August concerning the .org contract renewal.

NameCheap argued that ICANN should have listened to the deluge of public comments complaining about the removal of price caps in Public Interest Registry’s .org contract, while EFF complained about the inclusion of the Uniform Rapid Suspension rights protection mechanism.

Reconsideration requests are usually handled by the Board Accountability Mechanisms Committee but this time around three of its four members (Sarah Deutsch, Nigel Roberts, and Becky Burr) decided to recuse themselves due to the possibility of perception of conflicts of interest.

That meant the committee couldn’t reach a quorum and the RfRs went to ICANN’s outside lawyers for review instead, before heading to the full ICANN board.

This hasn’t happened before, to my recollection.

Also unprecedented, the board’s full discussion of both requests was webcast live (and archived here), which negates the need for NameCheap or the EFF to demand recordings, which is their right under the bylaws.

But the upshot is basically the same as if the BAMC had considered the requests in private — both were denied in a unanimous (with the three recusals) vote.

Briefing the board yesterday, ICANN associate general counsel Elizabeth Le said:

There was no evidence to support that ICANN Org ignored public consultation. Indeed both renewals went out for public comments and there were over 3,700 comments received, all of which ICANN reviewed and evaluated and it was discussed in not only the report of public comments, but it was discussed through extensive briefings with the ICANN board…

Ultimately, the fact that the removal of the price caps was part of the Registry Agreements does not render the public comment process a sham or that ICANN failed to act in the public benefit or that ICANN Org ignored material information.

General counsel John Jeffrey and director Avri Doria both noted that the board may not have looked at each individual comment, but rather grouped together based on similarity. Doria said:

Whether one listens to the content once or listens to it 3,000 times, they have understood the same content. And so I really just wanted to emphasize the point that it’s not the number of comments, it’s the content of the comments.

This seems to prove the point I made back in April, when this controversy first emerged, that letter-writing campaigns don’t work on ICANN.

As if to add insult to injury, the board at the same meeting yesterday approved paying an annual bonus to the ICANN Ombudsman, who attracted criticism from NameCheap and the Internet Commerce Association after dismissing many of the public comments as “more akin to spam”.

.org price cap complaints more like “spam” says Ombudsman

Kevin Murphy, September 11, 2019, Domain Policy

ICANN’s Ombudsman has sided with with ICANN in the fight over the lifting of price caps on .org domains, saying many of the thousands of comments objecting to the move were “more akin to spam”.

Herb Waye was weighing in on two Requests for Reconsideration, filed by NameCheap and the Electronic Frontier Foundation in July and August after ICANN and Public Interest Registry signed their controversial new registry agreement.

NameCheap wants ICANN to reverse its decision to allow PIR to raise .org prices by however much it chooses, while the EFF complained primarily about the fact that the Uniform Rapid Suspension anti-cybersquatting measure now appears in the contract.

In both cases, the requestors fumed that ICANN seemed to “ignore” the more than 3,200 comments that were filed in objection back in April, with NameCheap calling the public comment process a “sham”.

But Waye pointed to the fact that many of these comments were filed by people using a semi-automated web form hosted by the pro-domainer Internet Commerce Association.

As far as comments go for ICANN, 3200+ appears to be quite a sizeable number. But, seeing as how the public comments can be filled out and submitted electronically, it is not unexpected that many of the comments are, in actuality, more akin to spam.

With this eyebrow-raising comparison fresh in my mind, I had to giggle when, a few pages later, Waye writes (emphasis in original):

I am charged with being the eyes and ears of the Community. I must look at the matter through the lens of what the Requestor is asking and calling out. The Ombuds is charged with being the watchful eyes of the ICANN Community. The Ombuds is also charged with being the alert “ears” of the Community — with listening — with making individuals, whether Requestors or complainants or those just dropping by for an informal chat, feel heard.

Waye goes on to state that the ICANN board of directors was kept well-briefed on the status of the contract negotiations and that it had been provided with ICANN staff’s summary of the public comments.

He says that allowing ICANN’s CEO to execute the contract without a formal board vote did not go against ICANN rules (which Waye says he has “an admittedly layman’s understanding” of) because contractual matters are always delegated to senior staff.

In short, he sees no reason for ICANN to accept either Request for Reconsideration.

The Ombudsman is not the decision-maker here — the two RfRs will be thrown out considered by ICANN’s Board Accountability Mechanisms Committee at its next meeting, before going to the full board.

But I think we’ve got a pretty good indication here of which way the wind is blowing.

You can access the RfR materials and Waye’s responses here.

Another victory for Amazon as ICANN rejects Colombian appeal

Kevin Murphy, September 9, 2019, Domain Registries

Amazon’s application for .amazon has moved another step closer to reality, after ICANN yesterday voted to reject an appeal from the Colombian government.

The ICANN board of directors voted unanimously, with two conflict-related abstentions, to adopt the recommendation of its Board Accountability Mechanisms Committee, which apparently states that ICANN did nothing wrong when it decided back in May to move .amazon towards delegation.

Neither the board resolution nor the BAMC recommendation has been published yet, but the audio recording of the board’s brief vote on Colombia’s Request for Reconsideration yesterday can be found here.

As you will recall, Colombia and the seven other governmental members of the Amazon Cooperation Treaty Organization have been trying to stymie Amazon’s application for .amazon on what you might call cultural appropriation grounds.

ACTO governments think they have the better right to the string, and they’ve been trying to get veto power over .amazon’s registry policies, something Amazon has been strongly resisting.

Amazon has instead offered a set of contractual Public Interest Commitments, such as giving ACTO the ability to block culturally sensitive strings, in the hope of calming the governments’ concerns.

These PICs, along with Amazon’s request for Spec 13 dot-brand status, will likely be published for 30 days of public comment this week, Global Domains Division head Cyrus Namazi told the board.

Expect fireworks.

After comments are closed, ICANN will then make any tweaks to the PICs that are necessary, before moving forward to contract-signing with Amazon, Namazi .said.

The Amazon is burning. Is this good news for .amazon?

Kevin Murphy, August 26, 2019, Domain Policy

With the tide of international opinion turning against Brazil due to the ongoing forest fires in the Amazon, could we see governments change their tune when it comes to Amazon’s application for .amazon?

A much higher number of forest fires than usual are currently burning in the region, largely in Brazil, which critics led by environmentalists and French president Emmanuel Macron have blamed on relaxed “slash and burn” farming policies introduced by new Brazilian president Jair Bolsonaro.

The rain forest is an important carbon sink, said to provide 20% of the world’s oxygen. The more of it is lost, the harder it is to tackle climate change, the argument goes.

It’s been an important topic at the Macro-hosted G7 summit, which ends today. Even the bloody Pope has weighed in.

Arguably, the stakes are nothing less than the survival of human civilization and life on Earth itself.

And this is a story about domain names. Sorry. This is a blog about domain names. My hands are tied.

Amazon the company has been fighting governments over its application for .amazon, along with the Chinese and Japanese translations, for over six years.

ICANN’s Governmental Advisory Committee was responsible for killing off .amazon in 2013 after it decided by consensus that Amazon’s application should not proceed.

That decision was only reached after the US, under the Obama administration, decided to abstain from discussions.

The US had been protecting Amazon by blocking GAC consensus, but changed its tune partly in order to throw a bone to world leaders, including then-president of Brazil Dilma Rousseff, who were outraged by CIA analyst Edward Snowden’s revelations of widespread US digital espionage.

After ICANN dutifully followed the GAC advice and rejected Amazon’s gTLD applications, Amazon appealed via the Independent Review Process and, in 2017, won.

The IRP panel ruled that the GAC’s objection had no clear grounding in public policy that could be gleaned from the record. It told ICANN to re-open the applications and evaluate them objectively.

Ever since then, the GAC’s advice to ICANN has been that it must “facilitate a mutually acceptable solution” between Amazon and the eight nations of the Amazon Cooperation Treaty Organization.

ICANN has been doing just that, or at least attempting to, for the last couple of years.

But the two parties failed to come to an agreement. ACTO wants to have essential veto power over Amazon’s use of .amazon, whereas Amazon is only prepared to offer lists of protected names, a minority position in any policy-setting body, and some sweeteners.

In May this year, ICANN’s board of directors voted to move .amazon along towards delegation, noting that there was “no public policy reason” why it should not.

In June, the government of Colombia filed a Request for Reconsideration with ICANN, demanding it reevaluate that decision.

The RfR was considered by ICANN’s Board Accountability Measures Committee at its meeting August 14, but its recommendation has not yet been published. I’m expecting it to be posted this week.

There’s still opportunity for the GAC to cause mischief, or act as a further delay on .amazon, but will it, in light of some country’s outrage over Brazil’s policy over the rain forest?

One could argue that if the nation that has the largest chunk of Amazon within its borders seems to have little regard to its international importance, why should its claim to ownership of the string “amazon” get priority over a big brand that has offered to protect culturally significant words and phrases?

Remember, as the example of the US in 2012/13 shows us, it only takes one government to block a GAC consensus. If Brazil or Peru continue to pursue their anti-Amazon path, could France throw a spanner in the works, smoothing .amazon’s road to delegation?

Anything’s possible, I suppose, but my feeling is that most governments back ACTO’s position largely because they’re worried that they could find themselves in a similar position of having to fight off an application for a “geographic” string in the next gTLD application round.

EFF becomes second to appeal new .org contract

Kevin Murphy, August 7, 2019, Domain Registries

The Electronic Frontier Foundation has appealed ICANN’s decision to add stronger trademark protection rules to .org.

The civil liberties organization has filed a Request for Reconsideration with ICANN, saying that the new .org contract should not oblige Public Interest Registry to implement the Uniform Rapid Suspension policy.

URS is a swifter, cheaper version of the anti-cybersquatting UDRP policy. It can lead to clear-cut cases of trademark-infringing domains being relatively quickly suspended, but not transferred.

But the EFF is worried that it could be abused to curtail free speech.

It said URS is “particularly dangerous for the many .org registrants who are engaged in an array of noncommercial work, including criticism of governments and corporations”.

URS was created via ICANN’s bottom-up, community-led policy-making process to apply to new gTLDs applied for in 2012, not legacy gTLDs such as .org, EFF argues,

Adding more rights protection to a legacy gTLD “should be initiated, if at all, through the multistakeholder policy development process, not in bilateral negotiations between a registry operator and ICANN staff”, the RfR states.

The EFF is also concerned that the new contract allows PIR to unilaterally create its own additional rights protection mechanisms.

I don’t think this is a new power, however. Remember when PIR proposed a “Copyright UDRP” a couple of years ago, evidently as a way to turf out The Pirate Bay? That plan was swiftly killed off after protests from, among others, the EFF.

The EFF’s reconsideration request (pdf) does not address the issue of price increase caps, which were removed in the new contract.

That more-controversial provision is already the subject of an RfR, filed by NameCheap last month.

Both RfRs will be dealt with by ICANN’s Board Accountability Mechanisms Committee before being passed to the full board.

.amazon frozen AGAIN as endless government games continue

Kevin Murphy, June 25, 2019, Domain Policy

Amazon’s application for the .amazon gTLD has yet again been frozen, after a South American government invoked ICANN’s appeals process.

The bid, as well as applications for the Chinese and Japanese versions, were returned to “on-hold” status at the weekend, after Colombia filed a formal Request for Reconsideration, an ICANN spokesperson confirmed to DI.

“The processing toward contracting of the .AMAZON applications has been halted pending the resolution of Request 19-1, per ICANN organization’s normal processes,” the spokesperson said.

This means the applications could remain frozen for 135 days, until late October, while ICANN processes the request. It’s something that has happened several times with other contested gTLDs.

Colombia filed RfR 19-1 (pdf) on June 15. It demands that ICANN reverses its board’s decision of May 15, which handed Amazon a seemingly decisive victory in its long-running battle with the eight governments of the Amazon Cooperation Treaty Organization.

ACTO’s members believe they should have policy control over .amazon, to protect the interests of their citizens who live in the region they share.

To win an RfR — something that hardly ever happens — a complainant has to show that the ICANN board failed to consider pertinent information before it passed a resolution.

In Colombia’s case, it argues that the board ignored an April 7 letter (since published in PDF format here) its Governmental Advisory Committee representative sent that raises some interesting questions about how Amazon proposes to operate its TLDs.

Because .amazon is meant to be a highly restricted “dot-brand” gTLD, it would presumably have to incorporate Specification 13 into its ICANN registry agreements.

Spec 13 releases dot-brands from commitments to registrar competition and trademark protection in exchange for a commitment that only the brand itself will be able to own domains in the TLD.

But Colombia points out that Amazon’s proposal (pdf) to protect ACTO governments’ interests would give the eight countries and ACTO itself “beneficial ownership” over a single domain each (believed to be names such as co.amazon, .br.amazon, etc).

If this means that Amazon would not qualify for Spec 13, it could follow that ICANN’s board made its decision to continue processing .amazon on faulty assumptions, Colombia argues.

Colombia points to the case of .sas, a dot-brand that is apparently shared by two companies that have the same brand, as a possible model for shared management of .amazon.

RfRs are handled by ICANN’s Board Accountability Mechanisms Committee.

BAMC took just a couple of days to rule out (pdf) Colombia’s request for “urgent reconsideration”, which would reduce its regular response time from 90 days to 7 days.

The committee said that because the .amazon applications were being placed back on-hold as part of normal procedure during consideration of an RfR, no harm could come to Colombia that would warrant “urgent” reconsideration.

According to ICANN’s spokesperson, under its bylaws the latest the board can respond to Colombia’s request is October 28.

At a GAC session at the ICANN 65 meeting in Marrakech, taking place right now, several ACTO governments have just spent over an hour firmly and publicly protesting ICANN’s actions surrounding .amazon.

They’re still talking as I hit “publish” on this post.

In a nutshell, they believe that ICANN has ignored GAC advice and reneged on its commitment to help Amazon and ACTO reach a “mutually acceptable solution”.

Looks like .music is finally on its way

The hard-fought battle for .music appears to be over.

I’m not yet in a position to tell you which of the eight applicants for the new gTLD has been successful, but I can tell you some of those who were not.

Two applicants have this week withdrawn their bids, an almost certain sign that the contention set has been privately settled.

The first applicant to ditch its bid was dot Music Ltd, an application vehicle of Domain Venture Partners (we used to call this outfit Famous Four Media, but that’s changed).

The other is .music LLC, also known as Far Further.

We can almost certainly expect all but one of the remaining applicants to withdraw their applications over the coming days.

Applicants typically sign NDAs when they settle contention privately, usually via an auction.

Far Further was one of two unsuccessful “community” applicants for .music. It had the backing of dozens of music trade groups, including the influential Recording Industry Association of America. Even Radiohead’s guitarist chipped in with his support.

Evidently, none of these groups were prepared to fund Far Further to the extent it could win the .music contention set.

The .music contention set has been held up by the continuing protestations of the other community applicant, DotMusic Limited, the company run by long-time .music cheerleader Constantinos Roussos.

After DotMusic lost its Community Priority Evaluation in 2016, on the basis that the “community” was pretty much illusory under ICANN rules, it started to complain that the process was unfair.

The applicant immediately filed a Request for Reconsideration with ICANN.

.music then found itself one of several proposed gTLDs frozen while ICANN conducted an outside review of alleged irregularities in the CPE process.

That review found no impropriety in early 2018, a verdict DotMusic’s lawyer dismissed as a “whitewash”.

It has since stalled the process several times with requests for information under ICANN’s Documentary Information Disclosure Policy, and more RfRs when those requests were denied.

But this series of appeals finally came to an end March 14, when ICANN’s board of directors finally ruled against DotMusic’s 2016 RfR.

That appears to have opened up the .music set for private resolution.

So who won? I don’t know yet, but the remaining applicants are: DotMusic itself, Google, Amazon, MMX, Donuts and Radix.

There are certainly two very deep-pocketed companies on that list. Could we be looking at Google or Amazon as the new proprietors of .music?

If either of those companies has won, prospective registrants might find they have a long wait before they can pick up a .music domain. Neither of these giants has a track record of rushing its new gTLDs to market.

If the victor is a conventional gTLD registry, we’d very probably be looking at a launch in 2019.

Yanks beat Aussies to accountancy gTLD

Kevin Murphy, February 20, 2019, Domain Registries

The contention set for .cpa has been resolved, clearing the way for a new accountancy-themed gTLD.

The winner is the American Institute of Certified Public Accountants, which submitted two bids for the string — one “community”, one vanilla, both overtly defensive in nature — back in 2012.

Its main rival, CPA Australia, which also applied on a community basis, withdrew its application two weeks ago.

Commercial registries Google, MMX and Donuts all have withdrawn their applications since late December, leaving only the two AICPA applications remaining.

This week, AICPA withdrew its community application, leaving its regular “single registrant” bid the winner.

AICPA is the US professional standards body for accountants, CPA Australia is the equivalent organization in Australia. ACIPA has 418,000 members, CPA Australia has 150,000.

Both groups failed their Community Priority Evaluations back in 2015 on the basis that their communities were tightly restricted to their own membership, and therefore too restrictive.

AICPA later amended its community application to permit CPAs belonging to non-US trade groups to register.

Both organizations were caught up in the CPE review that also entangled and delayed the likes of .music and .gay. They’ve also both appealed to ICANN with multiple Requests for Reconsideration and Cooperative Engagement Process engagements.

CPA Australia evidently threw in the towel after a December 14 resolution of ICANN’s Board Accountability Mechanisms Committee decision to throw out its latest RfR. It quit its CEP January 9.

It’s likely a private resolution of the set, perhaps an auction, occurred in December.

The winning application from AICPA states fairly unambiguously that the body has little appetite for actually running .cpa as a gTLD:

The main reasons for which AICPA submits this application for the .cpa gTLD is that it wants to prevent third parties from securing the TLD that is identical to AICPA’s highly distinctive and reputable trademark

So don’t get too excited if you’re an accountant champing at the bit for a .cpa domain. It’s going to be an unbelievably restrictive TLD, according to the application, with AICPA likely owning all the domains for years after delegation.

ICANN puts deadline on .amazon talks

Kevin Murphy, January 21, 2019, Domain Policy

ICANN’s board of directors has voted to put a March deadline on talks over the future of the .amazon gTLD.

Late last week, the board formally resolved to “make a decision” on .amazon at ICANN 64, which runs in Kobe, Japan from March 9 to March 14.

It would only do so if Amazon the e-commerce giant and the eight governments of the Amazon Cooperation Treaty Organization fail to come to a “mutually agreed solution” on their differences before then.

CEO Goran Marby is instructed to facilitate these talks.

Here are the relevant resolved clauses from the resolution:

Resolved (2019.01.16.03), the Board hereby reiterates that Resolution 2018.10.25.18 was taken with the clear intention to grant the President and CEO the authority to progress the facilitation process between the ACTO member states and the Amazon corporation with the goal of helping the involved parties reach a mutually agreed solution, but in the event they are unable to do so, the Board will make a decision at ICANN 64 on the next steps regarding the potential delegation of .AMAZON and related top-level domains.

Resolved (2019.01.16.04), the Board encourages a high level of communication between the President and CEO and the relevant stakeholders, including the representatives of the Amazonian countries and the Amazon corporation, between now and ICANN 64, and directs the President and CEO to provide the Board with updates on the facilitation process in anticipation of revisiting the status of the .AMAZON applications at its meeting at ICANN64.

The vote came following ACTO’s demand that ICANN reverse its decision to take .amazon, and Chinese and Japanese translations, off their “Will Not Proceed” status, which heavily implied they will ultimately end up in the root.

ACTO, which claims its members have a greater right to the string due to its geographical and cultural significance, says it has not yet agreed to Amazon’s peace offering, which includes safeguards, financial support for future gTLD applications, and free Kindles.

The ICANN board has now formally rejected the demand — so .amazon is still officially on the path to delegation — but has published mountains of clarification explaining that ACTO misinterpreted what the status change implied.

The board now says that the status change was necessary in order for ICANN to negotiate the inclusion of Public Interest Commitments — PICs, which would give ACTO the right to challenge Amazon if it breaches any of its cultural safeguards — in the .amazon contracts.

With ACTO’s Request for Reconsideration now dealt with, the ball moves into ACTO’s court.

Will ACTO come back to the negotiating table, or will it retain the hard line it has been adopting for the last few months? We’ll find out before long.