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Registry bosses to talk ICANN “tax cuts” at private meeting

Kevin Murphy, September 5, 2017, Domain Registries

The CEOs of 20 or more gTLD registries are due to meet privately this month to discuss, among other things, the possibility of a reduction in their ICANN fees.

The Registry CEO Summit is being held in Seattle at the end of September, I’m told.

Jay Westerdal of Top Level Spectrum (.feedback etc) and Ray King of Top Level Design (.design etc) are organizing the event.

“It’s a small, informal gathering, where the agenda will be set by the participants, most likely around best practices for running a new registry,” Westerdal said.

“It’s not an official group like the RySG, and we don’t expect to be putting out any statements or ‘work product’,” he said.

He said he expects 20 to 25 registry CEOs to attend.

.CLUB Domains CEO Colin Campbell, who said he will attend, said he intends to bring proposals to the meeting around persuading ICANN to support the industry with marketing support and fee reductions.

Campbell wants ICANN to commit to spend $4 million on marketing new gTLDs at trade shows and conferences.

He also wants ICANN to reduce its $0.25 per-domain registry fee, which he referred to as a “tax”, to $0.18 for three years (which would match the $0.18 registrars pay ICANN per transaction).

He said the money would ideally flow through into the pockets of registrants, rather than the industry.

“I’m not suggesting that it be permanent, I’m suggesting that in order to support the fledgling new gTLD industry that they offer a small reduction and hope registries will pass that on to registrars and hopefully registrars will pass that on to consumers,” Campbell said.

The reduction would also help raise awareness of new gTLDs, he said.

The $0.25 fee only kicks in when a registry tops 50,000 billable transactions per year, so the reduction would at first only affect the roughly 50 to 60 new gTLDs that are already over that milestone.

The $0.07 per-domain reduction is so small that even a registry as large as .club, with about a million domains, would only see its fees reduced by about $70,000 per year.

Over all the affected TLDs, it would come out to a cost to ICANN of about $1.2 million per year if current volumes hold.

“It’s a very small amount but I still believe the benefit goes to end users,” Campbell said.

For registrants, it’s difficult to imagine $0.07 making a huge difference, unless they’re a high-volume buyer (which are not always the buyers you want). Generally, the cheaper domains get the more they attract abusive registrants.

Whether the ideas will get any traction among other registry CEOs remains to be seen, but it’s not the first idea for reduced ICANN fees to come out of the registry community recently.

In March, the RySG formally asked ICANN to tap into its war chest of excess new gTLD application fees to waive 75% of its fixed $25,000 annual per-TLD fee, a move that would affect all new gTLDs rather than just the larger ones.

The rebate would have cost ICANN $17 million.

But ICANN knocked that idea back last week, saying it still does not know how much of this $96 million cash pile it will have to spend on unexpected events stemming from the program.

Five more new gTLDs, one in English, get the nod from China

Kevin Murphy, February 14, 2017, Domain Registries

Top Level Design’s .ink has become the sixth new gTLD in the Latin alphabet to be approved for sale in China.

It was one of four new gTLDs given regulatory approval to begin operating properly in the country late last week. The others were all in Chinese script.

From Finnish-founded TLD Registry, .中文网 (“Chinese web site”) and .在线 (“Chinese online”) gained approval.

From local outfit Guangzhou Yuwei Information Technology Co, .集团 (“group”) and .我爱你 (“I love you”) were given the nod.

It’s the third batch of new gTLDs to get Chinese government approval since .vip, .club and .xyz in December. In January, .site and .shop joined their ranks.

Under China’s Draconian domain name regulations, only domains registered via local registries and registrars may be used.

Registries from outside the country have had to set up a local corporate presence and agree to China’s censorship policies in order to be compliant.

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.

ICANNWiki boss applies for 10 gTLDs

A new company run by ICANNWiki founder Raymond King and business partner Peter Brual has applied to ICANN for 10 new generic top level domains.

Top Level Design has applied for: .blog, .llc, .group, .wiki, .gay, .art, .style, .design, .ink, and .photography.

The company is entering contention sets on most of those, but I believe it’s the first .wiki bid announced to date.

It’s also the only portfolio player so far to announce that it’s using CentralNIC, best known for pseudo-gTLDs such as uk.com, as its back-end registry provider.

The company said the venture “will not interfere with the presentation or neutrality of ICANNWiki.com”.