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XYZ settles Verisign’s back-end switcheroo lawsuit

XYZ.com has settled a lawsuit filed against it against Verisign stemming from XYZ’s acquisition of .theatre, .security and .protection.

Verisign sued the new gTLD registry operator for “interfering” with its back-end contracts with the previous owners last August, as part of its campaign to compete against new gTLDs in the courtroom.

XYZ had acquired the .security and .protection ICANN contracts from security Symantec, and .theatre from a company called KBE Holdings.

As part of the transitions, all three applications were modified with ICANN to name CentralNic as the back-end registry services provider, replacing Verisign.

Verisign sued on the basis of tortious interference and business conspiracy. It was thrown out of court in November then amended and re-filed.

But the case appears to have now been settled.

Negari issued a grovelling not-quite-apology statement on his blog:

I am pleased to report that the recent case filed by Verisign against CentralNic, Ltd., XYZ and myself has been settled. After looking at the claims in dispute, we regret that as a result of our acquisition of the .theatre, .security and .protection extensions and our arrangement for CentralNic to serve as the backend service provider for these extensions, that Verisign was prevented from the opportunity to pursue monetization of those relationships. As ICANN’s new gTLD program continues to evolve, we would caution others who find themselves in similar situations to be mindful of the existing contracts extension owners may have with third parties.

Registries changing their minds about their back-end provider is not unheard of.

In this case, large portions of Verisign’s final amended complaint were redacted, suggesting some peculiarities to this particular switch.

If there was a monetary component to the settlement, it was not disclosed. The original Verisign complaint had demanded damages of over $2 million.

XYZ buys .security and .protection from Symantec

XYZ.com has added .security and .protection to its portfolio of new gTLDs under a private deal with security software maker Symantec.

Symantec originally applied for both as closed generics, but changed its plans when ICANN changed its tune about exclusive access gTLDs.

The company won .security in an auction against Donuts and Defender Security late last year; .protection was uncontested. It lost auctions for .cloud and .antivirus.

Symantec’s .symantec and .norton, both dot-brands, are currently in pre-delegation testing.

XYZ already owns .college, .rent and of course .xyz.

In other news, Afilias has acquired .promo, which was in PDT with applicant Play.Promo Oy, in a private auction.

UPDATE: A couple of hours after this post was published, XYZ announced it has also acquired .theatre, which will compete with Donuts’ .theater, from KBE gTLD Holding Inc.

Symantec gets into the DNS game with Dyn

Kevin Murphy, May 27, 2010, Domain Tech

Symantec has partnered with Dyn to offer a free DNS service to mobile Norton users.

As part of its new mobile strategy, expected to be announced later today, Symantec will provide free DNS resolution with a built-in filter that blocks potentially dangerous domains.

Dyn.com will provide the back-end, which will compete with the likes of OpenDNS and Google’s DNS service.

Non-technical users will be able to download a client application that configures their local DNS to work with the service, which drops one barrier to entry.

Symantec reportedly expects to earn revenue from advertising links – presumably by intercepting NXDOMAIN responses and providing sponsored error pages.

So the deal could be a bit of a money-spinner for Dyn; it’s certainly a further validation of its service.

But is it sexy? Hmm…

Will VeriSign change its name?

VeriSign’s $1.3 billion sale of its SSL business to Symantec yesterday means not only that the company will be almost entirely focussed on domain names, but also that it will no longer “sign” anything.

The word “VeriSign” will cease to describe what the company does, so will it change its name?

The idea could make sense, given that the services Symantec bought are all about trusting the VeriSign brand, and Symantec has acquired certain rights to use that brand.

Under the deal, Symantec is allowed to use the VeriSign name in authentication services such as the VeriSign Trust Seal. The company plans to incorporate “VeriSign” into a new Symantec trust logo.

VeriSign boss Mark McLaughlin said on a conference call yesterday that Symantec is buying certain VeriSign trademarks, such as Thawte and GeoTrust, but that VeriSign will stay VeriSign.

Symantec will be able to use the VeriSign brand in its logos for a “transition period of time over a number of years”, McLaughlin said.

On the one hand, there’s a potential for a certain degree of confusion that might persuade VeriSign to brand itself afresh. On the other, corporate rebranding is not cheap.

I suppose, if it does choose to rename itself, it had better hope that its first choice of .com is available.

VeriSign poised to sell SSL business to Symantec

Reliable news sources including the Wall Street Journal and Reuters are reporting that VeriSign is on the verge of offloading its market-leading SSL certificate business to Symantec for over $1 billion.

The sale would be the latest in a series of spin-offs that started in 2007, highlighting the company’s renewed focus on domain names.

VeriSign spent many years acquiring a bunch of companies in tenuously related markets – deals that never really made any sense to me – and the last few years selling them off again.

But SSL is not really in the same category as VeriSign’s bizarre forays into, for example, the Crazy Frog ringtone company. It’s the business the company was founded on when it was spun out of RSA Security 15 years ago.

It’s called VeriSign for a reason.

But offloading the SSL business would make sense. One of the reasons VeriSign bought Network Solutions ten years ago was the obvious retail synergies between domain names and SSL certificates – customers could buy both at the same time.

That synergy was diluted when VeriSign spun the NSI registrar business out as a separate company three years later, creating the vertically separated domain name market we know today.

Symantec, with its fingers in the enterprise and home/small business pies, might be able to make a better crack at the SSL game.

So is this bad news for SSL’s current silver medal holder, Go Daddy?

Possibly. Symantec is a force to be reckoned with – only marketing prowess could explain why so many people use Norton.

Of course, these news stories could be nonsense.

But my guts say they’re probably based on the same kind of leaks that companies often float to the press, to see what the markets do, when they’re in the final stages of negotiations.