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Third ICM windfall due as .sex hits sunrise

Kevin Murphy, September 2, 2015, Domain Registries

If we’ve learned one thing about new gTLD sunrise periods, it’s that adult-oriented TLDs sell quite well.

ICM Registry started its third such period yesterday, as .sex went into its “TMCH Sunrise” phase.

Until October 1, any company with a trademark in the Trademark Clearinghouse will be able to buy a matching .sex domain on a first-come, first-served basis.

From October 5 to October 30, anyone with a .xxx domain name or current .xxx “Sunrise B” block will be able to buy the matching .sex during the Domain Matching phase.

Anyone who buys a .xxx before October 1 will be able to participate in this second sunrise.

ICM reported in May that .porn received 3,995 sunrise registrations while .adult sold 3,902 — both via a combination of TMCH Sunrise sales and blocks.

At ICM’s prices, that’s enough to comfortably cover its ICANN application fees.

Every other new gTLD with the exception of .sucks has sold fewer than 1,000 sunrise names.

General availability for .sex starts November 4.

Radix targets 25,000 names for .online’s first day

Kevin Murphy, August 18, 2015, Domain Registries

Radix Registry reckons .online will move at least 15,000 domains in its first day of general availability, but it’s aiming higher.

“We are confident .online will be amongst the biggest new gTLDs that have launched,” Radix business head Sandeep Ramchandani said in a press release today.

“The same sentiment across several Registrar Partners has reinforced our beliefs. We expect to start off with at least 15,000 registrations at launch and would love to break .club’s launch record,” he said.

When .CLUB Domains launched .club in 2014, its zone file showed over 25,000 domains after the first 10 hours.

Radix is basing its projections not only on its registrar conversations, but also on .online’s sunrise period, which ended yesterday with 775 sales.

That number is of course low by pre-2012 standards, but it’s in the top tier of sunrise periods for non-controversial new gTLDs.

The only strings to top 1,000 names to date have been ICM Registry’s .porn and .adult and Vox Populi’s .sucks.

.CLUB’s sunrise weighed in at 454 domains.

Radix had better hope .online is successful — the gTLD sold for seven or eight figures at private auction.

The gTLD will go to its Early Access Period tomorrow before settling down to regular pricing August 26.

IDN .com hits the root

Eleven variants of .com and .net in non-Latin scripts joined the internet today.

Verisign’s whole portfolio of internationalized domain name new gTLDs were added to the DNS root at some point in the last 24 hours, and the company is planning to start launching them before the end of the year.

But the company has been forced to backtrack on its plans to guarantee grandfathering to thousands of existing [idn].com domains in the new domains, thereby guaranteeing a backlash from IDN domainers.

The eleven gTLDs are: .कॉम, .ком, .点看, .คอม, .नेट, .닷컴, .大拿, .닷넷, .コム, .كوم and .קוֹם. Scripts include Arabic, Cyrillic and Hebrew.

Verisign signed registry agreements with ICANN back in January, but has been trying to negotiate a way to allow it to give the owners of [idn].com domains first rights to the matching domain in the “.com” in the appropriate script.

The company laid out its plans in 2013. The idea was to reduce the risk of confusion and minimize the need for defensive registrations.

So what happened? Trademark lawyers.

Verisign CEO Jim Bidzos told financial analysts last week that due to conversations with the “community” (read: the intellectual property lobby) and ICANN, it won’t be able grandfather all existing [idn].com registrants.

All of the new IDN gTLDs will be subject to a standard ICANN Sunrise period, which means trademarks owners will have first dibs on every string.

If you own водка.com, and somebody else owns a trademark on “водка”, the trademark owner will get the first chance to buy водка.ком.

According to SeekingAlpha’s transcript, Bidzos said:

Based primarily on feedback from domain name community stakeholders, we have revised our IDN launch strategy. We will offer these new IDN top-level domains as standalone domain names, subject to normal introductory availability and rights protection mechanisms, available to all new gTLDs. This revised approach will not require ICANN approval and is designed to provide end users and businesses with the greatest flexibility and, for registrars, a simple and straightforward framework to serve the market.

Finally, we believe this approach should provide the best opportunity for increased universal acceptance of IDNs. We expect to begin a phased rollout of the IDNs towards the end of this year, and we’ll provide more information on our launch plans when appropriate.

Senior VP Pat Kane added on the call that the grandfathering provisions, which would have required ICANN approval, have been “taken out”.

The question now is whether Verisign will introduce a post-sunrise mechanism to give rights to [idn].com.

That would not be unprecedented. ICM Registry ran into similar problems getting its grandfathering program for .porn approved by ICANN. It wound up offering a limited, secondary sunrise period for existing .xxx registrants instead.

Free .cloud domains on offer to pioneer brands

Aruba, the recently anointed .cloud gTLD registry, plans to give away up to 100 free .cloud domains to trademark owners as part of its launch program.

The Italian company also today revealed a rough launch schedule that will see sunrise begin mid-way through the fourth quarter.

Participating in Aruba’s “Pioneer” program will be free for trademark owners with a decent marketing plan, a brand-match domain, and a web site that can go live at the end of September.

Up to 100 domains can be allocated for promotional purposes before sunrise begins, per ICANN rules.

Those looking to grab a generic dictionary word in .cloud “may require further negotiation and incur additional costs”, the registry web site says.

Wannabe pioneers have until August 21 to submit their ideas.

Aruba, which beat Minds + Machines, Symantec, Amazon, Google, CloudNames and Donuts to .cloud at private auction last November, plans to go to general availability early next year.

.sucks made millions from sunrise

Vox Populi could have made over $6 million from defensive registrations during its sunrise period.

The company’s first post-sunrise zone file was published today, and according to DI PRO it contains 3,394 domains, the vast majority of which were newly added today.

If all of these names were sunrise registrations, that would add up to an almost $6.8 million windfall for the registry.

However, I don’t think that’s a completely reliable figure. I believe that not all of the names are from sunrise.

The zone file seems to have been generated after .sucks general availability kicked off at a minute after midnight UTC this morning. ICANN publishes zone files around 5am UTC but the time it collects them from registries can vary between TLDs.

Poring over Whois records, I’ve found many examples of domains in the .sucks zone that have creation dates in the early minutes and hours of GA.

Many domains that are not obvious trademarks show creation times in the first 60 seconds of GA, suggesting they were pre-orders and sold for GA prices.

It’s also probable that some sunrise names are not showing up in the zone file yet due to a lack of name servers.

According to a source talking to DI last November, Vox Pop paid “over $3 million” for the right to run .sucks at auction.

It seems to have made its money back — and then some — purely from sunrise fees.

Sunrise names are charged at $1,999 a year by the registry. In GA, most names have a recommended retail price of $250. Strings considered valuable, many of them trademarks, carry a $2,500 “Market Premium” recommended price.

Famous Four following .sucks playbook with premium pricing for brands?

New gTLD registry Famous Four Media has slapped general availability prices of $500 and up on domain names matching famous brands.

The company plans to shortly introduce eight “premium” pricing tiers, ranging from $200 a year to $10,000 a year.

The first to launch, on July 8, will be its “brand protection tier”, which will carry a $498 registry fee.

Famous Four told its registrars that the tier “will provide an additional deterrent to cyber-squatters for well-known brands ensuring that domain names in this tier will not be eligible for price promotions”.

The gTLDs .date, .faith and .review will be first to use the tiered pricing structure.

It’s not entirely clear what brands will be a part of the $498 tier, or how the registry has compiled its list, but registrars have been given the ability to ask for their clients’ trademarks to be included.

I asked Famous Four for clarification a few days ago but have not yet had a response.

While other registries, such as Donuts, used tiered pricing for GA domains, I’m only aware of one other that puts premium prices on brands: .sucks.

Vox Populi has a trademark-heavy list of .sucks domains it calls Market Premium — formerly Sunrise Premium — that carry a $1,999-a-year registry fee.

Unlike Vox Pop, Famous Four does not appear to be planning a subsidy that would make brand-match domains available at much cheaper prices to third parties.

Famous Four’s gTLDs have seen huge growth in the last month or two, largely because it’s been selling domains at a loss.

.science, for example, has over 300,000 registrations — making it the third-largest new gTLD — because Famous Four’s registry fee has been discounted to just $0.25 from May to July.

The same discount applies to .party (over 195,000 names in its zone) and .webcam (over 60,000).

Those three gTLDs account for exactly half of the over 22,000 spam attacks that used new gTLD domains in March and April, according to Architelos’ latest abuse report.

With names available at such cheap prices, it would not be surprising if cybersquatters are abusing these gTLDs as much as the spammers.

Will intellectual property owners believe a $498+ reg fee is a useful deterrent to cybersquatting?

Or will they look upon this move as “predatory”, as they did with .sucks?

Canada shrugs over .sucks

The Canadian trade regulator has sent ICANN a big old “Whatever” in response to queries about the legalities of .sucks.

The response, sent by Industry Canada’s deputy minister John Knubley yesterday, basically says if the intellectual property lobby doesn’t like .sucks it can always take its complaints to the courts.

Other than opening and closing paragraphs of pleasantries, this is all Knubley’s letter (pdf) says:

Canada’s laws provide comprehensive protections for all Canadians. Canada has intellectual property, competition, criminal law and other relevant legal frameworks in place to protect trademark owners, competitors, consumers and individuals. These frameworks are equally applicable to online activities and can provide recourse, for example, to trademark owners concerned about the use of the dotSucks domains, provided that trademark owners can demonstrate that the use of dotSucks domains infringes on a trademark. Intellectual property rights are privately held and are settled privately by the courts.

There’s not much to go on in there; it could quite easily be a template letter.

But it seems that Vox Populi Registry has been cleared to go ahead with the launch of .sucks, despite IP owner complaints, at least as far as the US and Canadian regulators are concerned.

The Federal Trade Commission was equally noncommittal in its response to ICANN two weeks ago.

Vox Populi is based in Canada. It’s still not entirely clear why the FTC was asked its opinion.

ICANN had asked both agencies for comment on .sucks’ legality after its Intellectual Property Constituency raised concerns about Vox Pop’s “predatory” pricing.

Pricing for .sucks names in sunrise starts at around $2,000.

ICANN told DI in April that it was in “fact finding” mode, trying to see if Vox Pop was in breach of any laws or its Registry Agreement.

The .sucks domain is due to hit general availability one week from now, June 19, with a suggested retail price of $250 a year.

If anything, the $250 says much more about Vox Pop’s business model than the sunrise fees, in my opinion.

.bank doing surprisingly well in sunrise

The forthcoming .bank gTLD has received over 500 applications for domains during its sunrise period, according to the registry.

fTLD Registry Services tweeted the stat earlier this week.

Its sunrise period doesn’t even end until June 17. Sunrise periods tend to be back-weighted, so the number could get a lot higher.

Five hundred may not sound like a lot — and applications do not always convert to registrations — but in the context of new gTLDs it’s very high.

Discounting .porn and .adult, both of which racked up thousands of names across their various sunrise phases, the previous high for a sunrise was .london, with just over 800 names registered.

It’s not unusual for a sunrise to get under 100 names. A year ago, I calculated that the average was 144.

The 500+ .bank number is especially surprising as it’s going to be a very tightly controlled gTLD where the chance of cybersquatting is going to be virtually nil.

All .bank registrants will be manually vetted to ensure they really are banks, substantially mitigating the need for defensive registrations.

Could this be an indication that .bank will actually get used?

ICM beats own annual projections with .porn on day one

ICM Registry says it managed to comfortably beat its own expectations for annual sales within the first eight hours of .porn and .adult going into general availability yesterday.

CEO Stuart Lawley said that there were 10,038 .porn domains and 8,277 .adult domains in its registry at the end of yesterday.

The company’s new gTLD applications with ICANN had predicted 10,000 .porn domains and 3,000 .adult domains at the end of the first year of availability, he said.

“We are therefore delighted to have exceeded those numbers on day one of GA,” he said. “We are particularly pleased with the high numbers from .adult.”

The majority of the names were registered either during the sunrise periods (ICM had two per TLD) or the recently ended “domain matching” program, which gave .xxx owners first dibs on matching .porn and .adult names.

A month ago, the company said .porn received 3,995 registrations while .adult had 3,902 at the end of the sunrises.

Earlier this week, after domain matching ended, Lawley said that .porn had almost 7,500 names while .adult had almost 7,000.

ICM will launch .sex in September.

Are new gTLD registries ripping off brands with unfair sunrise fees?

Forget .sucks — several less controversial new gTLD registries have come under fire from the likes of Google, Facebook and Adobe for charging sunrise fees as high as $17,000 for domains matching famous trademarks.

According to figures supplied to DI by ICANN’s Business Constituency, the domain instagram.love carries a $17,610 “Premium Name Fee” during the current sunrise period.

Instagram is of course the photo sharing service belonging to Facebook, and to the best of my knowledge not a dictionary word.

The domain facebook.love has a $8,930 fee, these figures show, while google.love costs $6,610, both in addition to sunrise fees of $350 and annual fees of $60.

The regular sunrise fee for .love comes in at $265 at some registrars.

The new gTLDs .design, .video, .wang, .wein, .rich and .top also seem to carry very high fees for brands such as Facebook, according to the BC’s numbers.

Google recently filed a public comment with ICANN which warned:

some registry operators are taking advantage of rights owners during Sunrise by charging exorbitant and extortionate Sunrise registration fees. Although such pricing policies are not strictly within the ICANN compliance mandate, they contravene the spirit of the RPMs [rights protection mechanisms], damage ICANN’s reputation, harm consumers in contravention of ICANN’s mandate to promote the public interest, and create disincentives for rights owners to take advantage of the Sunrise period

Similar comments were sent by the Intellectual Property Constituency, BC, and others.

The issue of registries charging super-high “premium” fees for trademarked names has been on the radar of the BC and the IPC since at least 2013.

It seems that in at least some cases, trademark owners are being hit with the higher fees because their marks are dictionary words that the registry has identified as premium due to their regular meaning.

For example, adobe.design is on the list of names provided by the BC, carrying a $1,175 registration fee.

But Andrew Merriam, director of business development at .design registry Top Level Design, denied that the software company is being targeted. Instead, he said “adobe” refers to the material used in architecture — its dictionary meaning.

He said: “Stucco.design, concrete.design, wood.design, granite.design (and many other materials and building styles) are all on the premium list, at varying prices. In fact, adobe.design is priced on the lower end of all these materials.”

Merriam said the registry’s premium fee for adobe.design is actually $250 and speculated that $1,175 could be the price quoted by Adobe’s brand protection registrar post-markup. It was $349 at Go Daddy, he said.

In other cases, trademarks may have found their way on to premium lists due to a lack of manual vetting by the registry, rather than nefarious targeting.

In the case of instagram.love, Evatt Merchant of .love registry Merchant Law Group told DI that Facebook can buy the name for the normal sunrise fee if it wants.

He told DI that trademark owners should contact the registry if they believe their marks have been wrongly given premium prices. He said:

While it is possible that some brand terms that are frequently googled have ended up on the premium list, valued based on their Google search frequency, there is a simple solution. During the sunrise period, brands seeking non-dictionary trademarked domain names can contact the registry so that a review of individual sunrise pricing can occur. As has already occurred, such requests will often result in the .LOVE TLD voluntarily offering to reduce their sunrise application cost to the base sunrise price and that would certainly be the case for Instagram.

ICANN’s does not regulate pricing in new gTLDs, but nevertheless the IPC and BC and their members have asked ICANN to include premium pricing of trademarked names in its upcoming review of rights protection mechanisms.