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Argentina will use a lottery to decide 2LD landrush

Kevin Murphy, September 18, 2019, Domain Registries

Argentina has become the latest country to allow its ccTLD registrants to register domains at the second level.

NIC Argentina announced last week that in addition to third-level domains such as example.com.ar and example.net.ar, you’ll be able to buy example.ar too.

While it’s following in the footsteps of the likes of .uk and .nz (and soon .au), Argentina is taking a slightly different approach to grandfathering and conflicts.

First, the priority registration period is pretty short, at least compared to the five years .uk registrants got.

If you already own a .ar 3LD, you only have until November 9 to get your application in for the matching 2LD.

In the event that more than one application is received from eligible registrants, the winner won’t be decided by auction, but by lottery.

The City of Buenos Aires Lottery will conduct the raffle, randomly assigning priority numbers to applicants to determine who gets first dibs on their domain of choice.

It’s the first time I’ve seen a domain contest settled by lottery since the process ICANN used to assign priorities to new gTLD applicants back in 2012.

From November 25 until January 23, the .ar process will enter a landrush phase, during which anyone can apply for any available 2LD they want by paying a non-refundable application fee.

The fee is ARS 200, the Argentine peso equivalent of $3.50, so the registry can hardly be accused of greed.

Again, competing bids will be settled by the same lottery process, with the winner having to pay the standard ARS 340 registration fee (the equivalent of $6) to claim their domain.

After February 23, it’s open season, with every domain in general availability.

.ar currently has just shy of half a million domains under management, and hasn’t seen any significant growth in a couple of years.

It will be interesting to see how popular the 2LD offer is, and what impact it has on domain growth in the industry overall.

Argentina allows .ar registrations from non-residents, but it does not appear to be a simple process.

Second-level .au names delayed

Kevin Murphy, August 21, 2019, Domain Registries

If you’re champing at the bit to grab yourself some second-level .au domain names, you’re going to have to wait a little longer.

Australian ccTLD manager auDA said today that it is delaying the controversial release by three months, to give it more time to carry out public outreach.

In a statement, interim chair Suzanne Ewart said that “it is critically important that the changes are widely understood, backed by an education program and supported by robust business processes throughout industry.”

The original plan had been to been to make 2LDs available in a staggered manner starting at some point in the fourth quarter. The delay will push the release into 2020.

The proposed launch has been controversial among the domain investment part of the auDA membership, which largely believes that it could lead to confusion with the existing three-level structure of the .au space.

1.8 million UK grandfathers die after Nominet deadline hits

The deadline for registering “grandfathered” second-level domains in .uk passed this morning, leaving at many as 1.88 million names unclaimed.

From June 2014 until 0500 UTC this morning, anyone who owned a third-level domain in zones such as .co.uk or .org.uk had rights to register the matching 2LD under .uk.

Those rights have all expired now, and all the unclaimed 2LDs will be returned to the available pool next month.

Four days ago, Nominet said that there were still 1.88 million rights that had not been exercised. That’s from the over 10 million 3LDs whose registrants were initially given rights.

In March, 3.2 million names were still unclaimed. It seems about 1.4 million names have been claimed, or expired, at the eleventh hour, almost all in June.

One way of looking at it is that the owners of almost one in five .co.uk domains either decided they didn’t want the matching 2LD, or were unaware that it was available.

But about half of the original domains with rights have since dropped, so the portion of current 3LD owners now at risk of confusion with their 2LD match could actually be more like four in 10.

At the end of May, 2,439,181 .uk domains had been registered (including non-grandfathered domains) and there were 9,729,224 names registered at the third level.

The 1.8 million unclaimed names will now be the subject of a landrush.

On July 1, Nominet will start releasing the names in batches, alphabetically.

Accredited registrars will start slamming the registry — Nominet has set up a separate set of EPP infrastructure purely for this expected onslaught — with requests to register the most-valuable names.

Some registrars have been taking pre-registrations and will auction any names they successfully claim to the customers who put in pre-orders.

After a week, any names not already claimed by registrars will be released to the public, again in batches, starting from July 8.

The system has been criticized by smaller registrars, many of which believe Nominet is giving its larger registrars a much better chance at winning the good names simply because they have deeper pockets.

auDA reveals cut-off date for 2LD priority

Australian ccTLD manager auDA has revealed how old your .com.au domain has to be to qualify for priority registration of the matching second-level .au domain.

If you registered your current domain before February 4, 2018, you will get “category 1” priority. Names registered after that are considered “category 2”.

The categories will come into play when auDA makes direct 2LDs registrations available at some point in the fourth quarter this year.

Category 1 domain owners will have until April 20 next year to catch their match, then category 2 owners get until August 1.

It’s a much speedier process than the five-year grandfathering period Nominet offered in .uk domains.

After the priority periods are over, all unclaimed .au domains will be released to the available pool.

Brand owners, domain investors, and actually basically anyone who owns a .com.au or .org.au domain has a little over 13 months to make their mind up whether they want to run the risk of confusion with a third-party owner of a very similar domain.

Pricing is the same as third-level domains, so opting in to the 2LD basically doubles the price of participating in .au ownership.

auDA’s draft rules for the process can be read here (pdf).

Smaller registrars say .uk release is biased towards the Big Boys

A group of small .uk registrars have complained to Nominet that the imminent release of three million second-level .uk domain names is biased towards their deep-pocketed rivals.

So far, 33 registrars have signed a petition, penned by Netistrar’s Andrew Bennett, against Nominet’s rules.

On July 1, the registry plans to start releasing .uk 2LDs that are currently reserved under its five-year-long grandfathering program.

These are domains that match existing third-level domains in .co.uk, .org.uk, etc.

The 3LD registrants have until 0500 UTC on June 25 to claim their 2LD matches. A week later, Nominet will start releasing them in alphabetical batches of 600,000 per day, over five days, to the available pool.

It’s going to be a little like “the drop” in gTLDs such as .com, with registrars all vying to pick up the most-valuable names as soon as they are released.

In the gTLD space, each registrar is given an equal number of connections, which is why drop-catch specialists such as SnapNames own hundreds of registrar accreditations.

Nominet’s doing it a little different, instead throttling connections based on how much credit registrars have with the registry, which the petitioners believe rigs the system towards the registrars with the most money.

According to the Nominet, registrars with £450 of credit get six connections per minute, rising to nine per minute for those with £4,500, 60 per minute for £45,000 and, at the top end, 150 per minute for registrars with £90,000 stashed in the Bank of Nominet.

Larger registrars with multiple Nominet accreditations, known as “tags” in the .uk space, will be able to stack their connections for an even greater chance at grabbing the best names.

Registrars such as GoDaddy are already taking pre-orders and will auction off the domains they catch to the highest bidder, if there are multiple pre-orders for the same names, so there’s potentially a fair bit of money to be made.

The small registrars say these credit-based rules are “disproportionately unfair” to their business models.

They point out that it doesn’t make much sense to rate-limit connections based on their proven ability to pay, given that there’s no link between how many they plan to register in the crucial first minute after the drop and how many they intend to register overall.

Nominet says on its web site that the tiers as described are provisional and will be firmed up the week of June 24.

The petitioners are also bothered that Nominet has not made any EPP code available to help the smaller guys, which have fewer engineering resources, to adjust to this temporary, time-sensitive registration system, and that the release plan was not communicated well to registrars.

They further claim that Nominet has not conducted enough outreach to .uk registrants to let them know their grandfathered rights will soon expire.

Many well-known brands have yet to claim their trademark.uk names, they claim.

Nominet has previously told DI that it planned to advertise the end of grandfathering in the press and on radio in the run-up to the release.

Second-level .au domains ARE coming soon

Australian ccTLD manager auDA has given itself approval to start selling .au domains at the second level for the first time.

auDA said today that it plans to lift its third-level-only rule in the fourth quarter this year.

The date of October 1 has been penciled in, but auDA said it will release more details as the time approaches.

There will be a grandfathering policy in place for existing registrants of 3LDs under the likes of .com.au and .org.au, but its deadlines are much tighter than the policies in, for example, .uk.

Under the published rules (pdf), registrants who owned 3LDs in .au before a cut-off date will get first dibs on the matching 2LD.

That priority period will end April 1, 2020.

After that, registrants who bought their .au names between the cut-off date and now will get also get priority, until August 1, 2020.

The cut-off date has yet to be determined by the auDA board of directors.

After the priority period is over, all unclaimed domains will be available to register by anyone.

You’re basically looking at six to 10 months of grandfathering rights, compared to the five years Nominet offered in when it made direct 2LD registration possible in .uk.

The 2LD policy has been four years in the making, and has courted controversy along the way.

Domain investors in particular have complained, worried that 2LDs will cause confusion and dilute the value of their 3LD investments.

Got a spare three grand? For a limited period, you can buy a .th domain name

The Thailand ccTLD registry’s unusual, and unusually expensive, approach to selling second-level domains has seen .th open up for another limited-period application window.

Until June 30, anyone can pay THNIC Foundation a THB 10,000 ($313) fee to “apply for” a 2LD.

Each application will be manually reviewed, and successful registrants will be notified July 8.

But be warned: the fee for the first year and subsequent annual renewals is an eye-watering THB 100,000 ($3,130).

Trademark owners and owners of matching .co.th domains will get priority in the event of clashes with regular would-be registrants.

THNIC has been using this strange approach to second-level domain allocation — which looks more like a series of sunrise periods that never culminate in general availability — in sporadic, brief rounds for the last five years.

Most ccTLD registries with a legacy three-level structure — such as .uk, .jp and .nz — have opted to instead make 2LDs available in much the same way as 3LDs.

auDA rejects domaining ban but approves second-level domains

Kevin Murphy, April 16, 2019, Domain Policy

Australian ccTLD registry auDA has rejected a proposal that would have essentially banned domainers from the .au space.

In response to recommendations of its Policy Review Panel, auDA management said that the PRP “has not provided any evidentiary material” that so-called “warehousing” is harmful.

It further concluded that the policies proposed for monitoring and rooting out suspected domainers would disproportionately increase compliance costs for both registrants and auDA itself.

In management’s response (pdf) to the PRP, auDA wrote that the ban would make investors second-class citizens when compared to powerful trademark owners:

The warehousing prohibition appears to disproportionately target domain investors as the licence portfolios or holdings of trademark and brand owners will be excluded under the PRP proposal. This proposal elevates the rights of trademark and other intellectual property owners over other licence holders in the .au domain, which may give rise to issues of market power and anti-competitive practices. Management believes that further information is required to assess whether the net benefit to the community of prohibiting warehousing in respect of a class of registrants outweighs the competition issues. For these reasons Management believes that there should be no change to the existing policy position.

It added:

Management does not support the PRP recommendation for a resale and warehousing prohibition for the reasons set out earlier. The proposed test for determining whether a registrant has contravened the resale and warehousing prohibition will increase compliance costs for registrants and administration, monitoring and enforcement costs for auDA. These costs may be disproportionate to the risk or severity of the harm to the community from warehousing and the cost of a licence in the .au domain.

Not only did it decide not to crack down on domainers, but auDA also plans to make their lives a little easier by updating current eligibility policy to explicitly state that parking, or “monetization”, is permitted.

To ensure there is no ambiguity or reliance on interpreting ‘content’, auDA management has recommended an additional allocation criteria can be applied to com.au and net.au which would include that a domain name could be used for the purpose of pay-per-click or affiliate web advertising/ lead generation, or electronic information services including email, file transfer protocol, cloud storage or managing Internet of Things (IoT) devices.

It’s a comprehensive win for domainers, such as those represented by the Internet Commerce Association, which had been outraged by the PRP’s findings.

It’s less good news when it comes to the perhaps more controversial plans to allow direct, second-level registrations under .au.

auDA has decided to go ahead with these longstanding plans, which domainers worry will promote confusion and dilute the value of their third-level .com.au portfolios.

The new draft plans (pdf) for the launch of 2LDs would see existing 3LD registrants given “priority status” to register the exact-match 2LD.

There would be a six-month application window for registrants to lodge their claims, beginning October 1 this year.

If the .com.au version and .org.au version, for example, were owned by different parties, the registrant with the earliest registration date would have priority.

After the application window closed, any unclaimed domains would be made available on a first-come, first-served basis.

These rules, and all the results of auDA’s response to the PRP, are open for public comment until May 10.

Most .uk registrants not interested in .uk

Kevin Murphy, March 27, 2019, Domain Registries

The majority of people eligible to register .uk domains at the second level have not yet chosen to do so, according to local registry Nominet.

Numbers the company released this week show that only two million 2LD .uk names have been registered since they first became available five years ago.

That’s despite the fact that the owners of over 10 million domains registered at the third level, such as under .co.uk or .org.uk, had exclusive rights to those names.

Today, the owners of 3.2 million .uk 3LDs have yet to exercise their grandfathered rights, Nominet said.

Those rights expire 0500 UTC June 25 this year.

Nominet plans to ramp up its outreach to affected registrants with radio, print and online ads in May, the company has previously told DI.

If you’re wondering why two million plus 3.2 million does not add up to 10 million, that’s because over the last five years about half of original 10 million domains with grandfathering rights have dropped.

Many will have been re-registered (which does not transfer the rights) or have been replaced with different fresh registrations, which is why Nominet’s total 3LDs under management has only declined from 10.4 million to 9.7 million since 2014.

At eleventh hour, most .uk registrants still don’t own their .uk names

Less than a quarter of all third-level .uk registrants have taken up the opportunity to buy their matching second-level domain, just a few months before the deadline.

According to February stats from registry Nominet, 9.76 million domains were registered under the likes of .co.uk and .org.uk, but only 2.27 million domains were registered directly under .uk, which works out at about 23%.

Nominet’s controversial Direct.uk policy was introduced in June 2014, with a grandfathering clause that gave all third-level registrants five years to grab their matching .uk domain before it returns to the pool of available names.

So if you own example.co.uk, you have until June 25 this year, 110 days from now, to exercise your exclusive rights to example.uk.

Registrants of .co.uk domains have priority over registrants of matching .org.uk and .me.uk domains. Nominet’s Whois tool can be used to figure out who has first dibs on any given string.

At least two brand protection registrars warned their clients this week that they will be at risk of cybersquatting if they don’t pick up their direct matches in time. But there’s potential for confusion here, after the deadline, whether or not you own a trademark.

I expect we could see a spike in complaints under Nominet’s Dispute Resolution Service (the .uk equivalent of UDRP) in the back half of the year.

Nominet told DI in a statement today:

The take up right now is roughly in line with what we envisaged. We knew from the outset that some of the original 10 million with rights would not renew their domain, some would decide they did not want the equivalent .UK and some would leave it to the last minute to decide or take action. The feedback from both registrants and registrars, and the registration data, bears this out.

The statement added that the registry has started “ramping up” its outreach, and that in May it will launch “an advertising and awareness campaign” that will include newspapers, radio and trade publications.

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