ANA calls for new gTLDs delay, again

The Association of National Advertisers has seized upon Verisign’s recent report into the security risks of ICANN’s new gTLD timetable to call for delays to the program.

In a blog post yesterday, ANA vice president Dan Jaffe said ICANN’s dismissal of the surprising Verisign letter is “like the Captain of the Titanic before the crash saying that the dangers of icebergs had been discussed for years.”

The post highlights the lack of finalized Trademark Clearinghouse specs as “one of the greatest concerns”, saying “millions of customers are the ones who will face harm”.

That’s not strictly true, of course. New gTLD registries are contractually unable to launch until the TMCH is ready, so the risk of registrants being harmed by the lack of specs today is a non-starter.

The ANA also points to ongoing concerns about proposed TLDs such as .corp and .home, which run the risk of clashing with existing private TLDs used on internal corporate and ISP networks.

It’s on much firmer ground here. If a user tries to access a LAN resource on a .corp domain while roaming, what’s to stop them sending sensitive data to a third-party web site instead?

I’ve yet to see a compelling reason why this is not a problem, but it’s not yet known whether the many applications for .corp, .home and similar strings have passed their ICANN technical evaluations.

The ICANN application form asked applicants to disclose potential operational problems such as these, but some applicants that were very familiar with the problem decided not to do so.

But the ANA’s main concern is its belief that new gTLDs will increase cybersquatting and increase the cost of defensive registrations, of course.

“Adequate steps have not been taken to protect Internet users, and we are headed toward uncharted waters with major danger to consumers, brandholders, and the Internet itself,” Jaffe wrote.

“The only prudent action for ICANN now is to delay this arbitrary domain name roll-out until it has fixed these very serious problems.”

Chehade says “no delay” as Verisign drops a security bomb on ICANN

Verisign today said that the new gTLD program presents risks to the security of the internet, but ICANN CEO Fadi Chehade told DI that he’s not expecting any new delays.

The .com behemoth tonight delivered a scathing review of the security and stability risks of launching new gTLDs on ICANN’s current timetable.

The new Verisign report catalogs the myriad ways in which ICANN is not ready to start approving new gTLDs, and the various security problems they could cause if launched without due care.

It strongly suggests that ICANN should delay the program until its concerns are addressed.

But Chehade, in an exclusive interview with DI tonight, rebutted the already-emerging conspiracy theories and said: “There’s nothing new here that would cause me to predict a new delay.”

What does the Verisign report say?

It’s a 21-page document, and it covers a lot of ground.

The gist of it is that ICANN is rushing to launch new gTLDs without paying enough attention to the potential security and stability risks that a vast influx of new gTLDs could cause.

It covers about a dozen main points, but here are the highlights:

• Certificate authorities and browser makers are not ready. CAs have long issued certificates for use on organizations’ internal networks. In many cases, these certs will use TLDs that only exist on that internal network. A company might have a private .mail TLD, for example, and use certs to secure those domains for its users. The CA/Browser Forum, which coordinates CAs and browser makers, has decided (pdf) to deprecate these certs, but not until October 2016. This, Verisign says, creates a “vulnerability window” of three years during which attackers could exploit clashes between certs on internal TLDs and new gTLDs.
• Root server operators are not ready. The organizations that run the 13 DNS root servers do not currently coordinate their performance metrics, Verisign said. This makes it difficult to see what impact new gTLDs will have on root server stability. “The current inability to view the root server system’s performance as a whole presents a risk when combined with the impending delegation of the multitude of new gTLDs,” Verisign said.
• Root zone automation isn’t done yet. ICANN, Verisign and the US Department of Commerce are responsible for adding new gTLDs to the root zone, and work on automating the “TLD add” process is not yet complete. Verisign reckons this could cause “data integrity” problems at the root.
• The Trademark Clearinghouse is not ready. Delays in finalizing the TMCH technical specs mean registries haven’t had sufficient time to build their interfaces and test them, and the TMCH itself is a potential single point of failure with an unknown attack profile.
• Universal acceptance of new TLDs. Verisign points out that new gTLDs won’t be immediately available to users when they go live due to lack of software support. It points specifically to the ill-maintained Public Suffix List, used by browsers to set cookie boundaries, as a potential risk factor.
• A bunch of other stuff. The report highlights issues such as zone file access, data escrow, Whois and pre-delegation testing where Verisign reckons ICANN has not given registries enough time to prepare.

Basically, Verisign has thrown pretty much every risk factor it can think of into the document.

Some of the issues of concern have been well-discussed in the ICANN community at large, others not so much.

Yeah, yeah, but what did Fadi say?

Chehade told DI this evening that he was surprised by the report. He said he’s been briefed on its contents today and that there’s “nothing new” in it. The program is “on track”, he said.

“What is most surprising here is that there is nothing new,” he said. “I’m trying to get my finger on what is new here and I can’t find it.”

“It was very surprising to see this cornucopia of things put together,” he said. “I’m struggling to see how the Trademark Clearinghouse has a security impact, for example.”

He added that some of Verisign’s other concerns, such as the fact that the Emergency Back-End Registry Operator is not yet up and running, are confusing given that existing TLDs don’t have EBEROs.

The report could be divided into two buckets, he said: those things related to ICANN’s operational readiness and those things related to the DNS root.

“Are these operational issues really security and stability risks, and given that we can only launch TLDs when these things are done… what’s the issue there?” he said.

On the DNS root issues, he pointed to a November 2012 report, signed by Verisign, that said the root is ready to take 1,000 new gTLDs a year or 100 a week.

So the Conspiracy Theory is wrong?

When ICANN held a webinar for new gTLD applicants earlier this week, Chehade spent an inordinate amount of time banging home the point that security and stability concerns underpin every stage of the new gTLD program’s timetable.

As this slide from his presentation (click to enlarge) illustrates, security, stability and resiliency or “SSR” is the foundation of every timing assumption.

He said during the webinar:

Nothing will trump the gTLD process, nothing, but the SSR layer. The SSR layer is paramount. It is our number one responsibility to the internet community. Nothing will be done that jeopardizes the security and stability of the internet, period.

At any time if we as a community do not believe that all relevant security and stability matters have been addressed, if we do not believe that’s the case, the program freezes, period.

There is too much riding on the DNS. Hundreds of billions of dollars of commerce. Some may say livelihoods. We will not jeopardize it, not on my watch, not during my administration.

During the webinar, I was lurking on an unofficial chat room of registries, registrars and others, where the mood at that point could be encapsulated by: “Shit, what does Chehade know that he’s not telling us?”

Most people listening to the webinar were immediately suspicious that Chehade was expecting to receive some last-minute security and stability advice and that he was preparing the ground for delay.

The Verisign report was immediately taken as confirmation that their suspicions were correct.

It seemed quite likely that ICANN knew in advance that the report was coming down the pike and was not-so-subtly readying applicants for a serious SSR discussion in Beijing a little over a week from now.

When I asked Chehade a few times whether he knew the Verisign report was coming in advance, he declined to give a straight answer.

My feeling is he probably did, though he may not have known precisely what it was going to say. The question is perhaps less relevant given what he said about its contents.

But what Chehade thinks right now is probably not the biggest concern for new gTLD applicants.

The GAC’s reaction is now critical

The Verisign document could be seen as pure GAC fodder. How the Governmental Advisory Committee reacts to the report, which was CC’d to the US Department of Commerce, is now key.

The GAC has been banging on about root system stability for years and will, in my view, lap up anything that seems to prove that it was right all along.

The GAC will raise the Verisign report with ICANN in Beijing and, if it doesn’t like what it hears, it might advise delay. GAC advice is a lot harder for ICANN’s board to ignore than a self-serving Verisign report.

What’s Verisign playing at?

So why did Verisign issue the report now? I’ve been unable to get the company on the phone at this late hour, but I’ve asked some other industry folk for their responses.

Verisign’s super-lucrative .com contract is the obvious place to start theorizing.

Even though the company has over 200 new gTLD back-end contracts — largely with dot-brand applicants — .com is its cash cow and new gTLDs are a potential threat to that business.

The company has sounded a little more aggressive — talking about enforcing its patents and refusing to comply with ICANN’s audits — since the US Department of Commerce ordered a six-year .com price freeze last November.

But Chehade would not speculate too much about Verisign’s motives.

“I can’t read why this report and why now,” Chehade said. “Especially when there’s nothing new in it. That’s not for me to figure out. It’s for me to look at this report with a critical eye and understand if there’s something we’re not addressing. If there is, and we find it, we’ll address it.”

He pointed to a flurry of phone calls and emails to his desk after the Initial Evaluation results started getting published last week for a possible reason for the report’s timing.

“I think the real change that’s happened in the last few months is that the new gTLD program is now on track and for the first time people are seeing it coming,” he said.

Competitors were more blunt.

“It’s a bloody long report,” said ARI Registry Services CEO Adrian Kinderis. “Had they put the same amount of effort into working with ICANN, we’d be a lot better off on the particular issues.”

Verisign raises .name prices

Verisign plans to add 10% to the price of a .name domain name, judging by published correspondence.

In a price list sent to ICANN last week, the maximum registry fee for a one-year registration at the second level in .name will be set at $6.60 from August 1, 2013.

It appears to be the first such price increase in .name since the current registry contract was signed back in 2007. That contract set the fee at $6, with maximum hikes of 10% a year.

The new price list (pdf) is rather extensive, also covering products such as email forwarding and .name’s rather expensive wildcard-based defensive registrations.

Links to Verisign’s current pricing for these services are currently broken, so I can’t tell right now whether they’re going up, down, or staying the same.

It’s the second price increase Verisign has announced since it lost the right to hike the registry fee for .com last year. It is also raising .net prices later this year.

Ten registrars spanked for ignoring ICANN audit

ICANN has sent breach notices to 10 domain name registrars for failing to respond to its ongoing contract compliance audit.

The 10 registrars with breach notices are: Crosscert, Mat Bao, DomainsToBeSeen.com, USA Webhost, Internet NAYANA Inc, Cheapies.com, Domainmonger.com, Lime Labs, Namevault.com, and Power Brand Center.

According to ICANN, these registrars failed to provide the requested documentation as required by their Registrar Accreditation Agreement.

The Contractual Compliance Audit Program is a proactive three-year effort to check that all registries and registrars are abiding by the terms of their agreements.

ICANN selected 317 registrars at random for the first year of the program. As of January 4, 22 had not responded to these notices.

Only registrars signed up to the 2009 version of the RAA are contractually obliged to respond.

Verisign, which was one of six gTLD registries selected to participate this year, has controversially refused to let ICANN audit .net, saying it is not obliged to do so.

While the .net contract does have some audit requirements, we understand they’re not as wide-ranging as ICANN’s audit envisages.

The 10 registrars have been given until February 1 to provide ICANN with the necessary information or risk losing their accreditations.

In major snub, Verisign refuses to let ICANN audit .net

Verisign has delivered a significant blow to ICANN’s authority by refusing to take part in its contractual compliance audit program.

The snub runs a risk of scuppering ICANN’s plans to make compliance a cornerstone of its new management’s strategy.

In a letter to ICANN’s compliance department this week, Verisign senior vice president Pat Kane said that the company has no obligation to submit to an audit of .net under its ICANN contract.

Kane wrote:

Verisign has no contractual obligations under its .net Registry Agreement with ICANN to comply with the proposed audit. Absent such express contractual obligations, Verisign will not submit itself to an audit by or at the direction of ICANN of its books and records.

The company is basically refusing to take part in ICANN’s Contractual Compliance Audit Program, a proactive three-year plan to make sure all gTLD registries and accredited registrars are sticking to their contracts.

For registries, the plan calls for ICANN to look at things like compliance with Whois, zone file access, data escrow, monthly reporting, and other policies outlined in the registry agreements.

Verisign isn’t necessarily admitting that it thinks it would not pass the .net audit, but it is sending a strong signal that it believes ICANN’s authority over it has limits.

In the program’s FAQ, ICANN admits that it does not have explicit audit rights over all contracted parties, stating:

What’s the basis for including all contracted parties, when the ‘Right to Audit’ clause isn’t present in 2001 RAA and Registry Agreements?

One of ICANN’s responsibilities is to conduct audits of its agreements in order to ensure that all contracted parties are in compliance with those agreements.

If Verisign is refusing to participate, other registries may decide they don’t want to cooperate either. That wouldn’t look good for ICANN, which has made compliance a key strategic priority.

When Fadi Chehade started as CEO last September, one of his first moves was to promote compliance boss Maguy Serad to vice president, reporting directly to him.

He told DI that he would be “bringing a lot more weight and a lot more independent management from my office to the compliance function”.

At his inaugural address to the community in Prague last June, he spoke of how he planned to bring IBM-style contract management prowess to ICANN.

Compliance is also a frequently raised concern of the Governmental Advisory Committee (though generally geared toward rogue registrars rather than registries).