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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.

auDA may sue to delay boardroom bloodbath

Kevin Murphy, April 23, 2018, Domain Registries

auDA is thinking about taking its membership to court in order to delay a vote on the jobs of four of its directors.

The Australian ccTLD registry has also delayed further consideration of its policy to introduce direct, second-level registrations in .au until late 2019.

Both announcements came in the wake of a government review of the organization, which found it “no longer fit-for-purpose”.

auDA last week asked its members to agree to a postponement of the special general meeting, called for by a petition of more than 5% of its members, at which there would be votes on whether to fire the CEO, its chair, and two independent directors.

Under the law, auDA has to hold the SGM by June 7 at the latest, according to a letter (pdf) sent to members on Friday.

But auDA wants to delay the meeting until mid-September, at the earliest, to coincide with its regular Annual General Meeting.

If its members do not consent to the delay — it gave them a deadline of 4pm local time today, meaning responses would have to be drafted over the weekend — auDA said it “intends to apply for a court order… extending the time for calling the requested SGM”.

The delay is needed, auDA said, in order to give the organization the breathing space to start to implement the reforms called for by the government review.

The government wants the makeup of the auDA board substantially overhauled within a year to better reflect the stakeholder community and to ensure directors have the necessary skills and experience.

In response, auDA has told the government (pdf) that it agrees with the need for reform, but that it will not be able to hit its deadlines unlesss the SGM is delayed.

It also said calling the SGM on time would cost it somewhere in the region of AUD 70,000, based on the cost of a similar meeting last year.

auDA announced separately last week that it is delaying any more discussion on second-level registrations — something the reform campaigners largely are opposed to — “until the second half of 2019 at the earliest”.

Josh Rowe, coordinator of the Grumpier.com.au petitioners, said in his response that he found the request for the SGM delay “extremely disappointing”, adding:

auDA is at an important juncture following the Australian Government’s review. However, it is critical that people with the right skills and experience lead auDA through its reform.

Members have lost confidence in the auDA CEO, and the three auDA independent directors. They do not have the right skills and experience to lead auDA through its reform.

He noted that members do not have the resources to fight auDA in court.

Grumpier Aussies call for more blood on the auDA boardroom floor

A group of pissed-off members of the Australian domain name industry are calling for the heads of auDA’s CEO, its new chair, and two other members of its board.

A triumvirate of long-time participants in the auDA community say they have secured enough signatures on a petition to force the organization to call the meeting under Aussie law.

They want a vote of no confidence in the CEO, Cameron Boardman, and the firing of all three “independent” directors: Chris Leptos (also chair), Sandra Hook and Suzanne Ewart.

Their list of beefs is long, but high on it is auDA’s plan to open up .au to direct, second-level registrations for the first time, enabling folk to register example.au instead of example.com.au.

If this all sounds worryingly familiar, it’s because it’s the second year in a row members have called a special meeting in order to oust its top brass.

A campaign orchestrated at Grumpy.com.au last year resulted in chair Stuart Benjamin quitting ahead of a member vote to fire him.

This year’s campaign is being coordinated, with a nod and a wink but none of Grumpy’s original leaders, at Grumpier.com.au.

Entrepreneur Josh Rowe appears to have held the pen on the petition, backed up by former head of auDA public affairs Paul Szyndler and businessman Jim Stewart.

As well as the direct registration issue, which the three men think is merely a cash-grab with no benefits for registrants, the petitioners have some harsh things to say about auDA’s governance and transparency.

The organization has promised to be more open in the wake of last year’s carnage, but Grumpier thinks “things have only got worse”.

The petition also alludes to rumors of “whispering campaigns” against former staff and “possible financial irregularities”.

Rowe recently complained on his blog about a freedom of information request related to his own conduct, filed by the same person pursing form auDA CEO (and current ICANN vice chair) Chris Disspain with FOIA requests.

They also unhappy that auDA is switching .au’s registry service provider from Neustar to Afilias, gaining a rumored 60% discount of which only 10% will be passed on to registrars.

It’s all getting rather nasty, and I’ve not even mentioned some of the rumors of shenanigans that I seem to find in my inbox on an almost daily basis.

To force a special member meeting under Australian law, Grumpier says it had to secure signatures of 5% of the members, which it says it has done.

That’s not much of a threshold, given that auDA only has about 320 members at the moment.

Assuming auDA agrees that it has to hold a meeting, it has a couple of months to do so.

Now South Africa looks to second-level domain sales

Kevin Murphy, March 13, 2018, Domain Registries

South Africa looks to be the next country to start letting people register domains directly at the second level of its ccTLD.

Local registry authority ZADNA this week opened a policy consultation on allowing registrants access to direct, second-level .za names.

Currently, if you want a .za you have to register at the third level under the likes of .co.za or .net.za.

But ZADNA says second-level names will help it continue to compete in a market now populated by hundreds of new gTLDs.

The company said it has been “inundated” by calls for such a move.

The policy shift would see South Africa follow the the path beaten in recent years by UK, New Zealand, Kenya and (probably) Australia, which have all changed policy to allow second-level names.

But these things are never without controversy.

Domain investors are typically resistant to such moves, fearing dilution and the possible devaluing of their portfolios.

There are often also intellectual property concerns, and concerns about priority “grandfathering” rights when matching .co.za and .org.za names, for example, have different owners.

ZADNA is floating the possibility of auctions to resolve these kinds of conflicts.

The proposal (pdf) is open for comment until April 16.

auDA probably won’t pass on full Afilias savings to registrants

Kevin Murphy, February 22, 2018, Domain Registries

Switching .au’s back-end to Afilias will cut auDA’s per-domain costs by more than half, but registrants are not likely to benefit from the full impact of the savings.

auDA’s Bruce Tonkin, who led the committee that selected Afilias to replace incumbent Neustar, told DI this week that the organization is likely to take a bigger cut of .au registration fees in future, in order to invest in marketing.

That would include marketing the ability of Aussies to register .au domains at the second level for the first time — a controversial, yet-to-roll-out proposal.

Tonkin confirmed that the back-end fee auDA will be paying Afilias is less than half of what it is currently paying Neustar — the unconfirmed rumor is that it’s 40% of the current rate — but said that Afilias was not the cheapest of the nine bidders.

While .au names are sold for a minimum of two years, the current wholesale price charged to registrars works out to AUD 8.75 ($6.85) per year, of which Neustar gets AUD 6.33; auDA receives the other AUD 2.42.

A back-end fee of roughly $5 (US) per domain per year is well above market rates, so it’s pretty clear why auDA chose to open the contract to competition.

Tonkin explained the process by which Afilias was selected:

We first considered scoring without price, and Afilias received the highest score for non-financial criteria.

We then considered pricing information to form an assessment of value for money. The average pricing across the 9 [Request For Tender] responses was less than half of the present registry back-end fee ($6.33). Afilias was close to the average pricing, and while it was not the cheapest price — it was considered best value for money when taking into account the highest score in non-financial criteria.

I asked Afilias for comment on rumors that its price was 60% down on the current rate and received this statement:

Afilias believes auDA chose us based on the best overall value for the Australian internet community. The evaluation heavily weighted expertise, quality and breadth of service over price. While we don’t know what others bid, Afilias works to be competitive in today’s market. Attempts to price significantly higher than market without a value proposition are unrealistic and could even be considered price gouging.

It’s not known what price Neustar bid for the continuation of the contract, but I expect it will have also offered a deep discount to its current rate.

By switching, auDA is basically going to be saving itself over AUD 3 per domain per year, which works out to a total of AUD 9 million ($7 million) per year at least.

But the organization has yet to decide how much of that money, if any, to pass on to its registrars and ultimately registrants.

The auDA board of directors will meet in March to discuss this, Tonkin (who is in charge of the registry transition project but not on the board) said.

“We don’t want to set expectations that the wholesale price is going to change massively,” he said.

“I don’t expect it’s going to be any higher than the current wholesale price,” he said.

But he said he expects auDA to increase its slice of the pie in order to raise more money for marketing. The organization does “basically no marketing” now, he said.

“There’s certainly strong interest in doing more to market and grow the namespace,” he said. “One option is that more money is put into marketing the namespace and growing awareness of .au… That AUD 2.42, I expect that to change.”

This would include marketing direct second-level registrations, an incoming change to how .au names are sold that has domain investors worried about confusion and market dilution.

Outrage over the 2LD proposal — it appears to be a done deal, even if the details and timeline have yet to be finalized — has started attracting the attention of business media in Australia recently.

But auDA’s own research shows that opposition is not that substantial outside of these “special interests”.

A survey last year showed that 40% of .com.au registrants “support” or “strongly support” the direct registration proposal, with 18% “opposed” or “strongly opposed” Another 42% were completely unaware of the changes.

Support among .org.au registrants was lower, and it was higher among .net.au registrants.

But 36% of “special interests” — which appears to mean people who discovered the survey due to their close involvement in the domain industry — were opposed to the plan.

There’s no current timeline for the introduction of direct registrations, but the back-end handover from Neustar to Afilias is set to happen July 1 this year.

Neustar acquired AusRegistry, which has been running .au since 2002, for $87 million a couple of years ago.

Who should have rights to direct .au names?

Kevin Murphy, October 10, 2017, Domain Registries

Australian ccTLD registry auDA wants to know what you think about its plans to open up .au to direct second-level domain registrations.

It’s no longer a question of if the change should happen, but how it should be implemented.

A public consultation launched yesterday poses a series of questions about issues such as grandfathering, trademark rights and banning certain strings from registration.

It’s already been decided that existing third-level .au registrants should get first dibs on the matching second-level, but auDA has yet to decide what the eligibility cut-off date should be and for how long the names should be reserved before being released for registration by others.

The cut-off date is important because auDA has already seen some data suggesting possible domain investor gaming.

There were 193,645 strings that were registered as third-level domains in two zones at April 18, 2016, when the direct registration policy was announced, but that had risen to 255,909 as of September 1 this year.

That could be indicative of speculators obtaining low-value domains in .net.au or .org.au in the hope of beating the matching .com.au registrant to the possibly more valuable direct second-level .au domain.

If the April 2016 date is used, up to 14% of .au registrations will be subject to competing claims. The data shows that 90% of the conflicts are between .net.au and .com.au domains.

auDA has declined to draw any conclusions about gaming, however, saying that many of the conflicts could be defensive registrations made by the same registrant.

Where there are conflicts, a number of solutions have been posed. Among them: the longest continuous registration, priority for .com.au registrants, auction or lottery.

The consultation paper spends little time discussing the rights of trademark owners, something submissions from the IP lobby will no doubt seek to rectify.

Many of the questions auDA is posing are similar to those posed by the likes of .uk’s Nominet in previous ccTLD consultations.

There’s an additional wrinkle in the .au system as many state government and educational entities are required to register fourth-level names. So auDA wants to know what kind of rights these guys should have too.

The consultation is open until November 10 and all the relevant information can be found here.

Another ccTLD plays down the “com”

Kevin Murphy, September 15, 2017, Domain Registries

Another ccTLD operator has decided to allow registrants to register domains at the second level.

Following a trend that has swept the country-code world over the last few years, Malta’s NIC (Malta) said direct .mt registrations will become available December 1.

Previously, only third-level regs under .com.mt, .org.mt, .net.mt, .edu.mt and .gov.mt were possible.

NIC (Malta) said that existing .mt registrants will be able to claim their matching second-level names for free until the end of November 2020.

That’s a similar policy to the one adopted by Nominet in the UK, one of several ccTLDs to allow “direct” registrations in recent years. Others include New Zealand (.nz), Kenya (.ke) and, possibly but controversially, Australia (.au).

There are no residency requirements to register .mt names. Prices are usually around €20 to €30 per year, but NIC (Malta) said prices will be “halved” come December.

If you’re curious about the second-level policy change opening up new domain hacks, forget about it.

Apart from variations on “dreamt” (which doesn’t even pass a US English spell-check), there are bugger-all words ending in “mt”, according to the various Scrabble-cheating web sites I never use.

Second-level .ke domains go on sale this month

Kenya has become the latest ccTLD to jump on the second-level domain bandwagon.

From this month, registrants will be able to purchase example.ke, rather than having to select from third-level domains such as example.co.ke or example.or.ke, according to the registry.

KeNIC becomes the latest ccTLD registry to give customers the SLD option after the UK, New Zealand and Australia, which all backpedaled historic 3LD-only policies in order to remain relevant in an increasingly crowded TLD market.

Unlike previous launches, existing 3LD .ke registrants do not appear to have first right of refusal for the matching SLD, judging by the new policy (pdf).

The launch will begin July 23 with a 30-day sunrise period for trademark owners. This will be followed by a landrush period of 30 days.

Currently, pricing for co.ke domains in Kenyan shillings is in the same ballpark as the US dollar cost of a .com domain.

There are reportedly around 62,000 .ke domains currently registered.

Aussies get to drop the .com

Kevin Murphy, April 19, 2016, Domain Registries

Australia’s ccTLD manager has confirmed that local registrants will be able to register .au domains at the second level, eschewing the usual .com.

auDA said yesterday that its board has approved a plan that will let people register names such as example.au, rather than example.com.au or example.org.au.

The country follows the example of New Zealand and the UK, which have also started to permit second-level registrations in recent years.

auDA agreed with its policy committee that direct .au registrations would:

– make available domain names which are shorter, more appealing and more memorable

– give Australians more choice in deciding what domain name to register

– respond to market demand

– be more attractive to natural individuals than the current option, id.au

– strengthen the “.au brand” in a globally competitive market

– add value to all three main categories of users – registrars and resellers, registrants and ultimate users of the .au domain name system.

There’s no timeline yet on when 2LDs will become available, much less a policy on how potential conflicts will be handled, but auDA said it will provide updates later in the year.

Direct .au regs closer to reality

Kevin Murphy, August 20, 2015, Domain Registries

Australians could soon get the ability to register domain names directly under .au for the first time.

Following in the footsteps of the UK and New Zealand, a panel of .au policy body auDA has recommended that the second level should be opened up for registrations, pending further consultation.

In a consultation paper (pdf), the panel wrote:

direct registrations would create names which are shorter, more appealing and more memorable. They would make the domain name system simpler and easier to use. Moreover, the proposed change would open a wide range of new choices for registrants, and would provide a better option, especially for some groups; in particular, the Panel thinks that the biggest benefit will be for individuals, who would be able to obtain an Australian domain name in a simple and straightforward way.

Trademark owners need to pay attention, because the panel has recommended that the release does not include a sunrise period, due to .au’s “no hierarchy of rights” principle.

But the panel is recommending that existing .au registrants should get first dibs on matching second-level names.

Unlike the UK, where .co.uk registrants had preference over registrants in other SLDs, the auDA panel says .com.au owners would not be treated any differently to, for example, .org.au owners.

The panel has also raised the idea of implementing ICANN’s Uniform Rapid Suspension policy.

Registry providers might want to take note that the panel says that .au back-end AusRegistry, now part of Neustar, will not automatically get the contract to run the direct .au registry; an RFP may be in auDA’s future.

The recommendations are now open for comment until September 30.