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Famous Four wins two new gTLD contention sets

Four new gTLD applications were withdrawn overnight, resolving three contention sets.

Top Level Domain holdings has pulled its bids for .review and .science, in both cases leaving subsidiaries of portfolio applicant Famous Four Media as the only remaining applicant.

Meanwhile, Famous Four withdrew its .fit application, leaving TLDH as the only remaining applicant.

Buyouts? It seems possible. The .review application passed its Initial Evaluation a month ago, so the ICANN refund due to TLDH will have been dramatically reduced.

As a publicly traded company, TLDH is likely to issue a statement at some point explaining the current state of its applications.

But one of the side effects of ICANN’s preference for private deals is that we won’t always know when two or more companies privately resolve their contention sets.

There are at least two other contention sets where I have very good reasons to believe that deals have already been done, partially resolving the set, but nothing has yet been disclosed.

Also overnight, L’Oreal’s application for .garnier, a dot-brand, was withdrawn. It’s the fifth, and probably not the last, of L’Oreal’s 14 original new gTLD application to be dropped.

Governmental Advisory Committee advice has been leveled against .fit and .review, but not .science.

UPDATE: The original version of this story erroneously reported that TLDH, rather than Famous Four, had withdrawn its .fit application. This has now been corrected. Apologies for the error.

TLDH bags $10m in share sale

Top Level Domain Holdings has raised roughly $10 million by selling shares to institutional investors and directors.

The company, listed on the Alternative Investment Market in London, said today it has placed 110,375,276 new ordinary shares at £0.06 apiece.

The money will be used to help the company win some new gTLD contention set auctions and to promote the uncontested geo .london, which TLDH has been hired to manage.

The company is involved in 88 new gTLDs, some as applicant and some as back-end registry provider via its Minds + Machines subsidiary.

TLDH said it expects to start launching TLDs in the fourth quarter.

TLDH weighs in on “terrifying” GAC advice

Top Level Domain Holdings is the latest portfolio applicant to slate the Governmental Advisory Committee’s advice on new gTLDs, calling it “troubling in principle” and “terrifying in practice”.

The company, which applied directly for 70 gTLDs and is involved in several others, filed its comments on the “safeguard advice” in the GAC’s Beijing communique with ICANN today.

The comments focus mainly on the overarching issues of governmental power and process, rather than delve into the nitty-gritty implementation problems presented by the advice.

TLDH CEO Antony Van Couvering wrote:

The Communiqué’s prescriptions define the opposite of a well-regulated sector. Instead of a clear process in which all concerns are weighed, the Communiqué sets up an ad-hoc GAC process from which the views of applicants are excluded.

Instead of clear rules to which industry players must adhere, ill-defined categories have been set up that applicants have a hard time even to understand.

Instead of a clear authority on who will determine policy, the ICANN community must now wonder who is in charge.

The comment points to the fact that the GAC’s 2007 principles on new gTLDs state that applicants should have a clear, objective process to follow, and that Beijing undermines that principle.

It also puts forth the view that the GAC appears to be trying to create policy unilaterally, and in a top-down manner that doesn’t give the Generic Names Supporting Organization a role.

The GAC Beijing Communiqué as enunciated in Section IV.1.b [the safeguard advice] unilaterally expands the role of the GAC from an advisory committee, with a remit of providing advice on policy originating in the GNSO, into a policy-making body from which other members of the ICANN community are excluded.

TLDH also notes that some parts of the advice are “not in themselves bad ideas” and that the company has offered to adopt some of them already in the Public Interest Commitments appended to its applications.

It comments follow those from rival Demand Media, which questioned the feasibility of implementing the GAC’s advice, last week.

Separately, over the weekend, Medicus Mundi International Network — an organization of healthcare non-governmental organizations — filed comments saying that the GAC advice does not go far enough.

Rather, it said, ICANN should delay the introduction of .health until a “broad-based consultation of the health community” can be carried out and a “multi-stakeholder” governance model for it created.

Donuts not pursuing new gTLD joint ventures

Following the news that Uniregistry and Top Level Domain Holdings are to work together on the .country new gTLD, larger portfolio applicant Donuts has said it’s not interested in similar arrangements.

While not entirely ruling out joint ventures along the lines of the .country tie-up, company VP of communications Mason Cole told DI that Donuts’ strategy is to completely own each of the new gTLDs it has applied for.

“We aren’t categorically ruling anything out, but any kind of proposal would have to be very compelling,” he said. “Our strategy from the beginning has been, and still is, to secure the strings we applied for and manage them ourselves.”

While TLDH and Uniregistry seem open to such partnerships, Donuts’ stance appears to reduce the likelihood of three-way joint ventures on the four applications for which the three companies are the only applicants.

Donuts is also in two-horse races on an additional 58 strings.

The company, which is believed to have raised $100 million to $150 million in venture capital funding, is a strong supporter of private auctions to settle contention sets.

It originally brought the auctioneer Cramton Associates, which runs ApplicantAuction.com. into the ICANN process.

Cramton, according to a blog post this week, expects to run a mock auction May 23 and start auctions proper five days later.

ICANN does not expect to finish delivering the results of Initial Evaluation until August, so it seems possible some applicants may participate before they know if they’ve passed.

First new gTLD contention set settled as Uniregistry and TLDH sign deal

Kevin Murphy, April 29, 2013, Domain Registries

Top Level Domain Holdings and Uniregistry have inked a deal to go splits on the proposed .country registry, the first publicly announced settlement of a new gTLD contention set.

The two companies are the only applicants for .country, so assuming one or both applications are approved by ICANN no auction will be required to decide who gets to run it.

It’s not yet clear which applicant will drop out of the race; it appears that TLDH and Uniregistry are waiting for their Initial Evaluation results to come out before making that call.

A new 50:50 joint venture will be formed to take over the contract. The companies said in a press release:

Under the conditional heads of terms for the proposed joint venture, either Uniregistry or TLDH will withdraw its application and, once the surviving applications is approved by ICANN, the authority to operate .country will be transferred to the new joint venture. The transfer will require ICANN approval, which the directors of the Company fully expect to be forthcoming.

Uniregistry’s prioritization number is 1232 and TLDH’s is 664. If TLDH passes Initial Evaluation, it would make sense for Uniregistry to pull out at that time to speed up the time to delegation.

TLDH CEO Antony Van Couvering said the deal is “pro-competitive and will result in lower prices for consumers”.

Uniregistry and TLDH are competing on another 20 gTLD strings, but .country is the only two-horse race they’re involved in.