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ICM will NOT offer free .porn names to .xxx buyers

Kevin Murphy, November 10, 2014, Domain Registries

ICM Registry has reneged on its promise to “grandfather” trademark owners and other .xxx registrants in its forthcoming .sex, .porn and .adult new gTLDs.

While the changes are sure to infuriate trademark owners and .xxx registrants, the company insists that ICANN is to blame for blocking its original plans.

Originally, ICM had promised to reserve every .sex, .porn and .adult domain that matched an existing .xxx domain — if you owned or had blocked example.xxx then example.porn and so on would be reserved.

There was not to be a charge for any of these reservations.

The current versions of ICM’s new gTLD applications are unequivocal — nobody who owns a .xxx name or bought a block will be charged for the equivalent .sex, .porn or .adult names or blocks.

On names “blocked” by trademark owners during the .xxx Sunrise B period, the applications state:

All existing blocked names under the .XXX Sunrise B program… will not need to take any action to have those same names blocked in the new gTLD. All of these matching names will be automatically reserved from registration in the new TLD, free of charge.

On names registered in general availability, the applications state:

all existing .XXX names will be reserved from registration in the new gTLD and only registrants of that .XXX name will be given the opportunity to initially register that corresponding .XXX name in the new gTLD. If the .XXX registrant elects to register the name in the new gTLD, this can be done for a low annual fee. If the .XXX registrant does not elect to register the name in the new gTLD, then the new, matching, gTLD name will be reserved on [ICM’s] registry-reserved list at NO cost.

While neither application has been amended yet, neither of these statements are any longer true, ICM has confirmed.

Instead, the company’s new Domain Matching Program anticipates an extra launch phase between Sunrise and general availability. Under ICANN rules, it’s a Limited Registration Period.

During this month-long phase, anyone who owns a .xxx domain or block will be able to purchase the matching new gTLD names, unless it has already been registered in the Sunrise period.

What does this all mean…

For regular .xxx registrants?

If you own a .xxx domain, you no longer get a free permanent reservation on the matching .porn, .sex and .adult names while you make up your mind whether to buy them.

Instead, you’ll have to buy it during the 30-day DMP window.

ICM’s fee for DMP and Sunrise will be the same as for general availability, ICM CEO Stuart Lawley told DI.

Also, if there’s a trademark in the Trademark Clearinghouse that matches your second-level string, that trademark’s owner will be able to register the matching names before you get a chance.

Remember, not all TMCH users are legitimate brands. Some are domain investors gaming the system.

For premium .xxx buyers?

The changes may also concern registrants of “premium” .xxx names, many of which may have assumed they’d get the matching .porn, .sex and .adult reservations free of charge.

Porn site operators Really Useful and Barron Innovations, which have spent millions apiece on premium .xxx names such as teen.xxx and sex.xxx, have both said in ICM press releases that the grandfathering program formed an important part of their decision-making.

“We look forward to enjoying the benefits of ICM’s unique Domain Matching Program, which gives .XXX holders an opportunity to secure matching .XXX domain names in .PORN, .ADULT and .SEX,” Barron spokesperson Shay Efron said when the $3 million sale of sex.xxx was announced.

“We will be speaking individually to each premium name holder who purchased premium names after we had announced the original grandfathering plan,” Lawley told us.

It seems that the premium string will be registry-reserved, however, so there’s no chance of them being snapped up during Sunrise.

For brands?

If you’re a brand who bought a .xxx block during the Sunrise B period back in 2011, you no longer get grandfathered into a free permanent reservation in .sex, .adult and .porn.

Instead, you’ll have to buy your names as usual either during Sunrise, DMP or — if you feel like taking a risk — general availability.

The problem is: you only qualify for Sunrise if you’re registered in the TMCH, and most Sunrise B buyers are not.

Something like 70,000 names were registered during the .xxx Sunrise B period three years ago, but there are only 33,000 marks registered in the TMCH today.

The owners of more than half of the Sunrise B blocks, who may have thought their blocks would carry over to ICM’s three new gTLDs free of charge, currently do not even have the right to buy their names in Sunrise.

If you have a .xxx Sunrise B block AND are in the TMCH, you may find yourself competing with other trademark owners with matching marks during the .porn, .adult and .sex Sunrise periods.

Any Sunrise B match not registered during the Sunrise and DMP phases will be up for grabs during GA, just the same as any other domain.

Lawley reminds us that the .xxx Sunrise B predated ICM’s new gTLD applications by many months — nobody bought a block in 2011 thinking it would be enforced in all four gTLDs.

He added that ICM has “recently secured a unique offer through the TMCH that will enable trademark owners to register with the TMCH for one year, at a reduced fee.”

Why did ICM make the changes?

The changes put the registry on a collision course with the Intellectual Property Constituency of ICANN, which looks out for the interests of trademark owners and is not a fan of porn-themed TLDs.

“The IPC is going to collectively shit a brick,” one IPC member told us.

But the IPC, which has been unshakable when it comes to the strict enforcement of ICANN’s mandatory new gTLD rights protection mechanisms, may have shot itself in the foot to an extent.

According to ICM, it’s ICANN’s fault, and indirectly the IPC’s, that it’s had to abandon free grandfathering.

In a statement sent to DI, the company said:

Throughout the ICANN approval process, ICM pursued multiple pathways to try and ensure its original “grandfathering plan”. However, due to technological concerns and strong trademark protection policies that ICANN’s intellectual property community requires in all new gTLDs, ICANN flatly rejected ICM’s grandfathering plan.

The mandatory new gTLD rights protection mechanisms enforced by ICANN means that no domain names may be set aside before trademark owners have had a crack at the Sunrise period, ICM said:

Those rights protections require that TMCH-validated Sunrise Holders get the first priority for names in any new gTLD and also contain certain prohibitions on all registries from earmarking domain names for third parties.

However, ICM has still managed to set aside an unknown number of names as part of its Premium Domains Program — those names will be immune from registration during both Sunrise and the DMP.

It’s also going to reserve, free of charge, a bunch of “culturally sensitive” names — these are strings that members of the ICANN Governmental Advisory Committee asked to be reserved in .xxx.

Names related to child abuse material will also be registry-reserved at no cost to the child protection agencies that requested the blocks when .xxx launched.

Plenty of stuff is getting reserved, just not Sunrise B blocks.

ICANN’s rules against “earmarking” domains may have prevented ICM offering matching domains to regular .xxx registrants, but it’s hard to see how that would prevent a .xxx block carrying over to .porn. Blocks are not assigned to a specific registrant; they belong to the registry.

The .adult and .porn gTLDs are set to start their 30-day Sunrise periods March 1, 2015. The 30-day DMP for both will begin April 15.

The .sex gTLD was contested, so it’s running a little behind. ICM expects to launch it later in 2015.

ICM buys .sex for up to $3 million

ICM Registry, the .xxx domain name registry, may have paid as much as $3 million for the .sex gTLD.

Internet Marketing Solutions Limited, the only other applicant for .sex, withdrew its application this week.

Word is that ICM forked out somewhere between $2 million and $3 million for exclusive rights to the string.

I hear it was a private deal, not an auction organized by a third party.

I wonder whether the price was affected by the revelation by ICANN earlier this month that it considers porn-related gTLD strings “sensitive” for no particular reason.

It’s quite low, considering that sex.com sold for $13 million and sex.xxx sold for $3 million just a couple of months ago.

ICM now is the only applicant for .sex, .porn and .adult. It plans to grandfather existing .xxx registrants into the new namespaces, assuming ICANN doesn’t throw a spanner in the works.

ICANN puts porn gTLDs on hold for no good reason?

Kevin Murphy, July 4, 2014, Domain Policy

In a decision that seems to have come out of nowhere, ICANN has effectively put bids for three porn-themed new gTLDs on hold.

In a June 21 meeting, the board’s New gTLD Program Committee discussed .adult, .sex and .porn, calling them “sensitive strings”.

While it passed no resolution, I understand that ICANN legal staff is delaying the signing of contracts for at least one of these gTLDs while the NGPC carries out its talks.

It’s a surprising development, given that the three strings are not subject to any Governmental Advisory Committee advice, are not “Community” applications, and have not been formally objected to by anyone.

The report from the NGPC meeting acknowledges the lack of a GAC basis for giving the strings special treatment (emphasis added):

The Committee engaged in a discussion concerning applications for several adult-oriented strings in the current round of the New gTLD Program, including .ADULT, .PORN, and .SEX. The applications propose to serve the same sector as the .XXX sponsored TLD. Staff noted that the applications were not the subject of GAC advice, or any special safeguards, other the safeguards that are applicable to all new gTLDs. The Committee considered how the safeguards in the new gTLD Program compare to the safeguards that were included in the .XXX Registry Agreement. The Committee requested staff prepare additional briefing materials, and agreed to discuss the matter further at a subsequent meeting.

This begs the question: why is ICANN giving .porn et al special treatment?

What’s the basis for suggesting that these three strings should be subject to the same safeguards that were applied to .xxx, which was approved under the 2003 sponsored gTLD round?

.porn, .sex and .adult were were applied for under the 2012 new gTLD program, which has an expectation of predictability and uniformity of treatment as one of its founding principles.

Who decided that .sex is “sensitive” while .sexy is not? On what basis?

Is it because, as the NGPC report suggests, that the three proposed gTLDs “serve the same sector” as .xxx?

That wouldn’t make any sense either.

Doesn’t .vacations, a contracted 2012-round gTLD, serve the same sector as .travel, a 2003-round sponsored gTLD? Why wasn’t .vacations subject to additional oversight?

Is it rather the case that the NGPC is concerned that ICM Registry, operator of .xxx, has applied for these three porn strings and proposes to grandfather existing .xxx registrants?

That also wouldn’t make any sense.

.sex has also been applied for by Internet Marketing Solutions, a company with no connection to .xxx or to the 2003 sponsored gTLD round. Why should this company’s application be subject to additional oversight?

And why didn’t .career, which “serves the same sector” as the sponsored-round gTLD .jobs and was applied for by the same guys who run .jobs, get this additional scrutiny before it signed its contract?

It all looks worryingly arbitrary to me.

Uniregistry is too .sexy for new gTLD objection

.SX Registry has asked for its formal objection to Uniregistry’s .sexy gTLD application to be withdrawn, we understand.

It’s believed to be among the four objections, according to ICANN, that have been dismissed by the dispute resolution providers following withdrawal requests from the objectors.

The ccTLD registry had filed String Confusion Objections to .sexy and to one of the two applications for .sex. The .sex objection appears to be still pending.

While there’s an interesting decision to be had in the .sex case — how audibly similar are “sex” and “ess-sex”? — I’m not sure the same could be said for the extra-syllabled .sexy.

Resolution providers are currently in the process of picking panelists for all new gTLD objections, so decisions are not expected for months.

Note: this is the second and last time DI will use a Right Said Fred allusion in a headline related to .sexy. We reserve the right to mock others who use similar headlines in future.

gTLD Objector says .sex, .gay, .wtf are all okay

Kevin Murphy, December 26, 2012, Domain Policy

The Independent Objector for ICANN’s new gTLD program has given a preliminary nod to applications for .sex, .gay, .wtf and six other potentially “controversial” applied-for strings.

Alain Pellet this week told applicants for these gTLDs that he does not expect to file objections against their bids, despite an outpouring of public comments against them.

The strings given the okay are .adult, .gay, .hot, .lgbt, persiangulf, .porn .sex .sexy, and .wtf.

A total of 15 applications have been submitted for these strings. Some, such as .gay with four applicants, are contested. Others, such as .wtf and .porn, are not.

The IO is limited to filing objections on two rather tightly controlled grounds: Limited Public Interest (where the bid would violate international law) and Community (where a community would be disenfranchised).

For each of the nine strings, Pellet has decided that neither type of objection is warranted.

In his preliminary finding on .gay and .lgbt, he also noted that to file an objection “could be held incompatible with the obligation of States not to discriminate on grounds of sexual orientation or gender identity which is emerging as a norm”.

As part of a lengthy analysis of the international legal position on homosexuality, De Pellet wrote:

even though the IO acknowledges that homosexuality can be perceived as immoral in some States, there is no legal norm that would transcribe such a value judgment at the international level. Thus, the position of certain communities on the issue is not relevant in respect to the IO’s possibility to object to an application on the limited public interest ground.

For the porn-related applications, Pellet noted that any bid for a gTLD promoting child abuse material would certainly be objected to, but that ICANN has received no such application.

On .wtf, which received many public comments because it’s an acronym including profanity, Pellet observed that freedom of expression is sacred under international law.

He regarded the problem of excessive defensive registrations — as raised by the Australian government in the recent wave of Governmental Advisory Committee early warnings — is outside his remit.

Pellet’s findings, which I think will be welcomed by most parts of the ICANN community, are not unexpected.

Limited Public Interest Objection, originally known as the Morality and Public Order Objection, had been put forward in the wake of the approval of .xxx in 2010 as a way for governments to bring their national laws to bear on the DNS.

But it was painstakingly defanged by the Generic Names Supporting Organization in order to make it almost impossible for it to be used as a way to curb civil rights.

The GAC instead shifted its efforts to the GAC Advice on New gTLDs objection, which enables individual governments to submit objections vicariously based on their own national interest.

Pellet’s findings — which are preliminary but seem very unlikely to be reversed — can be read in full on his web site.