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Last resort gTLD auction loser wants share of $5m winning bid

Kevin Murphy, December 10, 2014, Domain Registries

An unsuccessful new gTLD applicant wants ICANN to share the proceeds of its “last resort” auction with itself and the other losing applicants.

Aesthetics Practitioners Advisory Network had applied for .salon, but found itself in a contention set with three other applicants and was ultimately beaten at auction by a winning bid of over $5 million from Donuts.

Now, the company has written to ICANN to ask for the money from the ICANN-run auction to be shared out among the losing bidders in much the same way as it is when a contention set goes to private auction.

APAN CEO Tina Viney wrote (pdf):

On the basis that ICANN received such a large amount ($5.175million) for the bidding of this auction it would be fair and equitable for the losing parties to be considered in the distribution of the winning financial bid. We believe that ICANN should review this consideration for losing parties who have had to incur numerous costs, not just the application fee, but also toward the preparation of documents so that we could meet with ICANN’s requirements. These include, but are not limited to registry fees, solicitor’s fees, financial services, not to mention the enormous amount of time that is required of an applicant in preparing for their application.

As a result, we respectfully request ICANN as part of their funds distribution policy to consider the applicants who did not win at the auction, BUT WERE SUCCESSFUL IN PASSING THE EVALUATION PROCESS.

She said that private auctions, which allow losing applicants to recoup some or all of their costs, should be mandatory when a majority of the applicants in a contention set want one.

In .salon’s case, one of the four applicants didn’t agree to a private auction, according to Viney. As Donuts is the enthusiastic pioneer of the private auction concept, that means the holdout was either DaySmart Software or L’Oreal.

gTLD auctions net ICANN another $13m

Kevin Murphy, October 27, 2014, Domain Registries

ICANN has raised another $12.9 million from new gTLD auctions.

A small batch of three contention sets — .realty, .salon and .spot — were resolved last Wednesday in the third so-called “last resort” auction.

.realty went to Fegistry for $5,588,888, .salon to Donuts for $5,100,575 and .spot to Amazon for $2.2 million.

ICANN now has accumulated new gTLD auction sales totaling $27.8 million.

It raised $14.3 million selling off .buy, .tech and .vip in September. The auction for .信息 fetched $600,000 in June.

ICANN’s share — after auctioneer Power Auctions is paid off — is being put into a special fund, rather that ICANN’s current account. The community will one day have to decide what to spend it on.