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Net 4 India gets brief reprieve from ICANN suspension

India registrar Net 4 India has been given a bit of breathing space by ICANN, following its suspension last month.

ICANN suspended the registrar’s accreditation a month ago, effective June 21, after discovering the company had been in insolvency proceedings for some time.

But on June 20 ICANN updated its suspension notice to give Net4 more time to comply. It now has until September 4, the same day its insolvency case is expected to end, to provide ICANN with documentation showing it is still a going concern.

The registrar was sued by a debt collector that had acquired some Rs 1.94 billion ($28 million) of unpaid debts from an Indian bank.

ICANN’s updated suspension notice adds that Net4 is to provide monthly status updates, starting July 18, if it wants to keep its accreditation.

The upshot of all this is that the registrar can carry on selling gTLD domains and accepting inbound transfers for at least another couple months.

India’s largest registrar goes insolvent, gets suspended

India’s largest independent registrar has been found insolvent by a local court, after failing to pay back $28 million in bank loans.

Net 4 India has now also had its right to sell gTLD domains suspended by ICANN as a result.

Judging by legal papers (pdf) buried on Net4’s web site, the insolvency relates to a series of loans the company took out with the State Bank of India between 2002 and 2012.

After the company failed to pay those loans back, in 2014 the debt was acquired from SBI by Edelweiss Asset Reconstruction, which specializes in buying debt cheap then recovering it through the courts.

Edelweiss sued Net4 to get its money back a couple of years ago and, in March this year after what appears to have been a slam-dunk, won its case.

The ruling states that the outstanding debt in 2017 was almost two billion rupees — Rs 1,940,860,284, which works out to just short of $28 million at today’s rates.

Having learned about the insolvency in April, ICANN set about trying to contact Net4’s management to see if the company was coming back into compliance.

ICANN’s Registrar Accreditation Agreement says ICANN can terminate registrars’ contracts if they are in insolvency proceedings for more than 30 days.

After the company failed to show it was compliant, this week its RAA was suspended from June 21 to September 19.

During that period, Net4 will not be able to sell new domain registrations or accept incoming transfers. It will also have to display a notice on its web site to that effect.

If it has not demonstrated compliance by August 28, ICANN may start its termination process.

Net4 is the largest ICANN-accredited registrar based in India, as measured by number of registered gTLD domains (excluding Public Domain Registry, LogicBoxes, and several affiliated dummy accreditations, which are all owned by US-based Endurance International).

It had over 100,000 gTLD domains under management at the end of February — almost all in .com and other legacy gTLDs — but its DUM had been shrinking hard for many months.

At some point, Net4 appears to have been listed on both India’s National Stock Exchange and the Bombay Stock Exchange, but was delisted about a year ago.

Belgium to crack down on fraud domains

Kevin Murphy, November 28, 2018, Domain Registries

DNS Belgium says it will shortly implement a new policy that will see it take down .be domains associated with fraud within 24 hours of discovering them.

The new scheme, which comes into effect December 1, essentially grants the Belgian government’s ministry of the economy — FPS Economy or Federal Public Service Economy in local parlance — a trusted notifier status when it comes to takedowns.

Previously, requests had to go through public prosecutors and took about two weeks, giving attackers a longer window to milk their victims.

Under the old regime, FPS Economy could only request a suspension in cases where the Whois data was inaccurate.

The registry said it will only suspend domains that are involved in “serious crimes”, including phishing and fraudulent web stores.

Registrants will have two weeks to appeal their suspensions. After six months, the domains will be deleted.

Several hundred .be domains per year are expected to be affected.

Rape ban results in just one .uk takedown, but piracy suspensions soar

Kevin Murphy, February 19, 2016, Domain Registries

Nominet’s controversial policy of suspending domain names that appear to condone rape resulted in one .uk domain being taken down last year.

That’s according to a summary of take-downs published by Nominet yesterday.

The report (pdf) reveals that 3,889 .uk names were taken down in the 12 months to October 31, 2015.

That’s up on the the 948 domains suspended in the six months to October 31, 2014.

The vast majority — 3,610 — were as a result of complaints from the Police Intellectual Property Crime Unit. In the October 2014 period, that unit was responsible for 839 suspensions.

Unlike these types of suspensions, which deal with the allegedly illegal content of web sites, the “offensive names” ban deals purely with the words in the domain names.

Nominet’s systems automatically flagged 2,407 names as potentially in breach of the policy — most likely because they contained the string “rape” or similar — in the 12 months.

But only one of those was judged, upon human perusal, in breach.

In the previous 12 months period, 11 domains were suspended based on this policy, but nine of those had been registered prior to the implementation of the policy early in 2014.

The policy, which bans domains that “promote or incite serious sexual violence”, was put in place following an independent review by Lord Macdonald.

He was recruited for advice due to government pressure following a couple of lazy anti-porn articles, both based on questionable research by a single anti-porn campaigner, in the right-wing press.

Assuming it takes a Nominet employee five minutes to manually review a .uk domain for breach, it seems the company is paying for 200 person-hours per year, or 25 working days, to take down one or two domain names that probably wouldn’t have caused any actual harm anyway.

Great policy.

XYZ says it won’t block censored Chinese domains

Kevin Murphy, November 6, 2015, Domain Registries

New gTLD registry XYZ.com has said it will not preemptively censor domain names based on the wishes of the Chinese government.

Over the last couple of days, CEO Daniel Negari has sought to “clarify” its plans to block and suspend domain names based on Chinese government requests.

It follows XYZ’s Registry Services Evaluation Request for a gateway service in the country, first reported by DI and subsequently picked up by the Electronic Frontier Foundation, a Wall Street Journal columnist, Fortune magazine and others.

The clarifications offered up by XYZ probably did more to confuse matters.

A blog post on Wednesday said that XYZ will not reserve any .xyz domain names from being registered, except those ICANN makes all new gTLD registries reserve.

Subsequent comments from Negari stated that XYZ will, as the RSEP stated, prevent names that have been banned in China from being registered.

However, there’s one significant difference.

Now, the registry is saying that it will only put those bans in place for domain names that have been specifically banned by the Chinese government when the name had already been registered by a Chinese registrant.

So, if I understand correctly, it would not preemptively ban anyone anywhere from registering [banned term].xyz.

However, if [banned term].xyz was registered to a Chinese resident and the Chinese government told the registry to suspend it, it would be suspended and nobody would be able to re-register it anywhere in the world.

Negari said in a blog comment yesterday:

if we receive a Chinese legal order tomorrow (before the gateway has launched) which requires disabling a domain name registered in China and properly under Chinese jurisdiction, then it will be disabled at the registry level, and not by the gateway. When the gateway launches the name will continue to be unavailable, and the gateway will not implement the action on a localized basis only in China. The normal registry system would continue to be the only system used to resolve the name globally. Again — the specific stability concern ICANN had was that we would use the Chinese gateway to make .xyz names resolve differently, depending on what country you are in. I completely agree that our [RSEP] re-draft to address that concern came out in a way that can be read in a way that we sincerely did not intend.

So there is a list of preemptively banned .xyz, .college, .rent, .security and .protection domains, compiled by XYZ from individual Chinese government requests targeting names registered to Chinese registrants.

Negari said in an email to DI yesterday:

To clarify the statement “XYZ will reserve domains,” we meant that XYZ will takedown domains in order to comply with “applicable law.” Unfortunately, the inaccuracies in your post caused people to believe that we were allowing the Chinese government to control what names could be registered or how they could be used by people outside of China. The idea that XYZ is going to impose Chinese law and prevent people outside of China from registering certain domain names is simply incorrect and not true. To be 100% clear, there is no “banned list.”

That was the first time anyone connected with XYZ had complained about the October 12 post, other than since-deleted tweets that corrected the size of the list from 40,000 domains to 12,000.

The RSEP (pdf) that causes all this kerfuffle has not been amended. It still says:

XYZ will reserve names prohibited for registration by the Chinese government at the registry level internationally, so the Gateway itself will not need to be used to block the registration of of any names. Therefore, a registrant in China will be able to register the same domain names as anyone else in the world.

This fairly unambiguous statement is what XYZ says was “misinterpreted” by DI (and everyone else who read it).

However, it’s not just a couple of sentences taken out of context. The context also suggests preemptive banning of domains.

The very next sentence states:

When the Gateway is initially implemented we will not run into a problem whereby a Chinese registrant has already registered a name prohibited for registration by the Chinese government because Chinese registrars are already enforcing a prohibition on the registration of names that are in violation of Chinese law.

This states that Chinese residents are already being preemptively banned, by Chinese registrars, from registering domains deemed illegal in China.

The next few paragraphs of the RSEP deal with post-registration scenarios of domains being banned, clearly delineated from the paragraph dealing with pre-registration scenarios.

In his blog post, Negari said the RSEP “addressed the proactive abuse mitigation we will take to shut down phishing, pharming, malware, and other abuse in China”.

I can’t believe this is true. The consequence would be that if China sent XYZ a take-down notice about a malware or phishing site registered to a non-Chinese registrant, XYZ would simply ignore it.

Regardless, the takeaway today is that XYZ is now saying that it will not ban a domain before it has been registered, unless that domain has previously been registered by a Chinese resident and subsequently specifically banned by the Chinese government.

The registry says this is no different to how it would treat take-down notices issued by, for example, a US court. It’s part of its contractual obligation to abide by “applicable law”, it says.

Whether this is a policy U-turn or a case of an erroneous RSEP being submitted… frankly I don’t want to get into that debate.

Disclosure: during the course of researching this story, I registered .xyz domains matching (as far as this monoglot can tell) the Chinese words for “democracy”, “human rights”, “porn” and possibly “Tiananmen Square”. I have no idea if they have value and have no plans to develop them into web sites.

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