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Brand-blocking service plotted for porn gTLDs

MMX wants to offer a new service for trademark owners worried about cybersquatting in its four porn-themed gTLDs.

The proposed Adult Block Services would be similar to Donuts’ groundbreaking Domain Protected Marks List and the recent Trademark Sentry offering from .CLUB Domains.

The service would enable big brands to block their marks from registration across all four TLDs for less than the price of individual defensive registrations.

Prices have not been disclosed, but a more-expensive “Plus” version would also allow the blocking of variants such as typos. The registry told ICANN:

The Adult Block Services will be offered as a chance for trademark owners to quickly and easily make labels unavailable for registration in our TLDs. For those trademark owners registering domain names as a defensive measure only, the Adult Block Services offer an easy, definitive, and cost-effective method for achieving their goals by offering at-a-stroke protection for TLDs included in the program. The Adult Block Services are similar to the Donuts’ DPML, Uniregistry’s EP and EP Plus and the .Club UNBS and should be immediately understood and accepted by the trademark community.

The Adult Block will allow trademark owners to block unregistered labels in our TLDs that directly match their trademarks. The Adult Block Plus will allow trademark owners to block unregistered, confusingly similar variations of their trademarks in our TLDs.

It seems more akin to DPML, and Uniregistry’s recently launched clone, than to .CLUB’s forthcoming single-TLD offering.

The Registry Service Evaluation Process request was filed by ICM Registry, which was acquired by MMX last year.

It only covers the four porn gTLDs that ICM originally ran, and not any of the other 22 gTLDs managed by MMX (aka Minds + Machines).

This will certainly make the service appear less attractive to the IP community than something like DPML, which covers Donuts stable of 242 TLDs.

While there’s no public data about how successful blocking services have been, anecdotally I’m told they’re quite popular.

What we do have data on is how popular the ICM gTLDs have been in sunrise periods, where trademark owners showed up in higher-than-usual numbers to defensively register their marks.

.porn, .adult and .sex garnered about 2,000 sunrise regs each, more than 20 times the average for a new gTLD, making them three of the top four most-subscribed sunrise periods.

Almost one in five of the currently registered domains in each of these TLDs is likely to be a sunrise defensive.

Now that sunrise is long gone, there may be an appetite in the trademark community for less-expensive blocks.

But there have been calls for the industry to unify and offer blocking services to cover all gTLDs.

The brand-protection registrar Com Laude recently wrote:

What brands really need is for registry operators to come together and offer a universal, truly global block that applies across all the open registries and at a reasonable price that a trademark owner with multiple brands can afford.

Quite how that would happen across over 1,200 gTLDs is a bit of a mystery, unless ICANN forced such a service upon them.

Uniregistry working on bulk trademark blocking service

Kevin Murphy, November 21, 2018, Domain Registries

Uniregistry is planning to launch a bulk trademark block service, along the same lines as Donuts’ Domain Protected Marks List.

But it’s going to be roughly 50% more expensive than DPML, on a per-TLD basis.

The company has applied to ICANN to run what it calls “Uni EP” across its whole portfolio of 26 gTLDs.

Uni EP would be “largely identical” to DPML, according to Uniregistry’s Registry Service Evaluation Requests.

This means that anyone who has their trademark registered in the Trademark Clearinghouse will be able to block the matching string in all of Uniregistry’s TLDs.

Nobody else would be able to register that mark unless they also had a TMCH-validated trademark for the same string.

The pricing would be lower than if the brand owner individually defensively registered in each of the 26 TLDs.

With Donuts, which manages a portfolio almost 10 times as large, DPML tends to be priced around the $6,000 mark retail for a five-year block. That works to about $5 per TLD per year.

Uniregistry CEO Frank Schilling said Uni EP could be priced as low as $200 per year. That would work out to about $7.70 per TLD.

The relatively higher pricing might make sense when you consider the larger variation in regular pricing for Uniregistry TLDs, compared to Donuts.

It has several that retail for around $100 a year, and three — .cars, .car and .auto — that sell for close to $3,000 a year.

Still, the Uni EP price is obviously going to be a lot cheaper than regular defensive registrations.

Companies that have already purchased defensively would get to add their domains to the block service after the current registration expires, the RSEP states.

Like DPML, Uni EP would also have a “Plus” version, in which confusingly similar strings in eight scripts would also be blocked.

Uniregistry says it consulted with three brand protection registrars — CSC, MarkMonitor and Safenames — about the service and that their reactions were “favorable”.

Uniregistry’s current portfolio comprises .country, .audio, .car, .blackFriday, .auto, .cars, .christmas, .click, .diet, .flowers, .game, .gift, .guitars, .help, .hiphop, .hiv, .hosting, .juegos, .link, .lol, .mom, .photo, .pics, .property, .sexy, and .tattoo.

Justice gives nod to O.com auction

Kevin Murphy, December 18, 2017, Domain Registries

The US Department of Justice does not intend to prevent Verisign from auctioning off the single-letter domain o.com.

Aaron Hoag, chief of the department’s Technology & Financial Services Section, told ICANN in a letter (pdf) that it does not intend to probe Verisign’s proposal.

The letter reads in its entirety:

Your letter dated December 7, 2017, to Makan Delrahim, Assistant Attorney General of the Antitrust Division, regarding VeriSign’s proposal to auction O.COM, has been referred to the Technology & Financial Services Section for review. After careful consideration of the matter, the Division can report that it does not intend to open an investigation into the proposed auction described in the attachment to your letter.

Verisign asked ICANN’s permission to auction o.com, with most of the the proceeds going to good causes, after over a decade of nagging from retailer Overstock.com, which desperately wants to own the currently reserved name.

It would set a precedent for the company to sell off the remaining 22 single-letter domains, not to mention the 10 digits, which are all currently reserved due to a decades-old technical policy no longer considered necessary.

Verisign would only receive its $7.85 base registry fee from the sale, despite the fact that single-letter domains could easily fetch seven or eight figures.

The company asked ICANN for permission to release the name via its Registry Services Evaluation Process last month.

ICANN said earlier this month that it had no objection on technical grounds, but referred it to US competition authorities for a review.

With the DoJ apparently not interested, the door is open for ICANN to approve the RSEP before the end of the year, meaning Verisign could carry out the auction in 2018.

The big question now is whether anyone other than Overstock will want to take part in the auction. Overstock has US trademarks on “O.com”, despite the fact that it’s never actually owned the domain.

ICANN punts o.com auction to US watchdogs

Kevin Murphy, December 11, 2017, Domain Registries

Verisign’s proposed auction of the domain o.com might have a negative effect on competition and has been referred to US regulators.

That’s according to ICANN’s response to the .com registry’s request to release the domain, which is among the 23 single-letter domains currently reserved under the terms of its contract.

ICANN has determined that the release “might raise significant competition issues” and has therefore been referred to “to the appropriate governmental competition authority”.

It’s forwarded Verisign’s request to the US Department of Justice.

Verisign late last month asked ICANN if it could release o.com to auction as a test that could presumably lead to other single-character .com names being released in future.

The plan is for a charity auction, in which almost all the proceeds are donated to internet-related good causes.

Only the company running the auction would make any significant money; Verisign would just take its standard $7.85 annual fee.

ICANN told the company that it could find no technical reason that the release could not go ahead.

The only barrier is the fact that Verisign arguably has government-approved, cash-printing, market dominance and is therefore in a sensitive political position.

Whether its profitless plan will be enough to see the auction given the nod remains to be seen.

A certain bidder in the proposed auction would be Overstock.com, the online retailer, which has been pressuring ICANN and Verisign for the release of O.com for well over a decade and even owns trademarks covering the domain.

Disclosure: several years ago I briefly provided some consulting/writing services to a third party in support of the Verisign and Overstock positions on the release of single-character domain names, but I have no current financial interest in the matter.

Verisign wants to auction off O.com for charity

Kevin Murphy, December 1, 2017, Domain Registries

The internet could soon gets just its fourth active single-character .com domain name, after Verisign revealed plans to auction off o.com for charity.

The company has asked ICANN to allow it to release just one of the 23 remaining one-letter .com domains, which are currently reserved under the terms of the .com registry agreement.

It’s basically a proof of concept that would lead to this contractual restriction being lifted entirely.

O.com has been picked as the guinea pig, because of “long-standing interest” in the domain, according to Verisign.

Overstock.com, the $1.8 billion-a-year US retailer, is known to have huge interest in the name.

The company acquired o.co from .CO Internet for $350,000 during the ccTLD’s 2010 relaunch, then embarked upon a disastrous rebranding campaign that ended when the company estimated it was losing 61% of its type-in traffic to o.com.

Overstock has obsessed over its unobtainable prize for over a decade and would almost certainly be involved in any auction for the domain.

In fact, I wouldn’t be surprised to discover that Overstock pressured Verisign into requesting the release of o.com.

Despite the seven or eight figures that a single-letter .com domain could fetch, Verisign’s cut of the auction proceeds would be just $7.85, its base registry fee.

Regardless, it has a payment schedule in mind that would see the winning bidder continue to pay premium renewal fees for 25 years, eventually doubling the sale price.

The winner would pay their winning bid immediately and get a five-year registration, but then would have to pay 5% of that bid to renew the domain for years six through 25.

In other words, if the winning bid was $1 million, the annual renewal fee after the first five years would be $50,000 and the total amount paid would eventually be $2 million.

All of this money, apart from the auction provider’s cut, would go to a trust that would distribute the funds to internet-focused non-profit organizations, such as those promoting security or open protocols.

There’s also a clause that would seem to discourage domain investors from bidding. The only way to transfer the domain would be if the buyer was acquired entirely, though this could be presumably circumvented with the use of a shell company.

It’s an elaborate auction plan, befitting of the fact that one-character .com domains are super rare.

Only x.com, q.com and z.com are currently registered and it’s Verisign policy to reserve them in the unlikely event they should ever expire.

Billionaire entrepreneur Elon Musk this July reacquired x.com, the domain he used to launch PayPal in the 1990s, back from PayPal for an undisclosed sum.

Z.com was acquired by GMO Internet for $6.8 million in 2014.

Single-character domains are typically not reserved in the ICANN contracts of other gTLDs, whether pre- or post-2012, though it’s standard practice for the registry to reserve them for auction anyway.

Verisign’s reservations in .com and .net are a legacy of IANA policy, pre-ICANN and have been generally considered technically unnecessary for some years.

Still, there’s been a reluctance to simply hand Verisign, already a money-printing machine through accident of history, another windfall of potentially hundreds of millions of dollars by allowing it to sell off the names for profit. Hence the elaborate plan with the O.com trust fund.

The proposal to release O.com requires a contractual amendment, so Verisign has filed a Registry Services Evaluation Process request (pdf) with ICANN that is now open for public comment.

As a matter of disclosure: several years ago I briefly provided some consulting/writing services to a third party in support of the Verisign and Overstock positions on the release of single-character domain names, but I have no current financial interest in the matter.