Latest news of the domain name industry

Recent Posts

Virgin territory as GoDaddy pushes $30 million porn domain renewals

Kevin Murphy, November 16, 2021, Domain Registries

Brand owners big and small are in for a potential surprise December 1, as their 10-year-old .xxx domain blocks expire and registrars bill their customers to convert them into a new annually-renewing GoDaddy service.

GoDaddy confirmed to DI today that it will “auto-convert” the old Sunrise B blocks, first sold by ICM Registry in 2011, to its new AdultBlock service, which provides essentially the same functionality but across four TLDs rather than one.

Tony Kirsch, head of professional services at GoDaddy Registry, said:

Registrars have been contacting all the Sunrise B owners and advising them that as of December 1 they will be grandfathered and automatically converted into an AdultBlock service, but they have a choice to expire that or stop that happening prior to December 1.

And if it is that they don’t do that before December 1, we’ll still give them a grace period of at least 45 days. If that happens they can then, as you’d normally do, just turn around to the registrar and say “We don’t want that” and we will of course refund the money.

This means that GoDaddy, which acquired .xxx and ICM from MMX earlier this year, is billing its .xxx registrar partners to convert and renew what could be as many as 81,000 Sunrise B blocks.

While the registry fee for AdultBlock has not been published, retail registrars I checked have priced the service at $370 to $400 per year, which we can probably assume is low-end pricing. Most .xxx domains are sold via the specialist brand-protection registrars like CSC and Markmonitor, which sometimes have more complex pricing.

So that’s something in the ballpark of $30 million worth of renewal invoices being sent out in the coming weeks, for something in many cases brand owners may have institutionally forgot about.

Kirsch said that AdultBlock was introduced by MMX about 18 months ago and that registrars have been preparing their customers for the Sunrise B expiration for some time.

Sunrise B was a program, unprecedented in the industry at the time, whereby trademark owners could pay a one-off fee — ICM charged its registrars about $160 wholesale — to have their brands removed from the available pool.

The domains exist in the .xxx zone file and resolve to a black page bearing the words “This domain has been reserved from registration”, but they’re not registered and usable like normal defensive or sunrise registrations would be.

Companies got to avoid not only the potential embarrassment of being porn-squatted, but also the hassle of having to explain to a tabloid reporter why they “owned” the .xxx domain in question.

The term of the Sunrise B block was 10 years. ICM told me at the time that this was because the company’s initial registry contract with ICANN only lasted for 10 years, so it was legally unable to sell longer-term blocks, but I’ve never been sure how much I buy that explanation.

Regardless, that 10 year period comes to an end in two weeks.

Because Sunrise B was unprecedented, this first renewal phase is also unprecedented. We’re in virgin territory (pun, of course, very much intended) here.

Will we see the industry’s first public “block junk drop”?

There are a number of reasons to believe trademark owners, assuming they don’t just blindly pay their registrar’s invoices, would choose to allow their blocks to expire or to ask for a refund after the fact.

First, the price has gone up — a lot.

While ICM charged $160 for a 10-year Sunrise B block (maybe marked up by registrars to a few hundred bucks) brand owners can expect to pay something like $3,000 retail for a single string blocked for 10 years.

But buyers do get a bit more bang for their buck. Unlike Sunrise B, AdultBlock also blocks the trademark in three additional GoDaddy-owned TLDs — .porn, .sex and .adult — as standard.

Kirsch said he expects buyers to see a 40% to 50% saving compared to the cost of defensively registering each domain individually.

Second, the appetite for defensive registrations has waned over the past 10 years, with trademark owners employing more nuanced approaches to brand protection, largely due to the flood of new gTLDs since 2013.

When .adult, .sex and .porn launched, without the possibility of Sunrise B blocks, they got about 2,000 regular sunrise registrations each. And that’s extraordinarily high — for most new gTLDs a couple hundred was a good turnout.

Third, the .xxx launch attracted a whole lot of controversy and overreaction, and the .xxx zone file today contains a lot of Sunrise B crap.

When I scrolled a little through the zone, cherry-picking silly-looking blocks in 2019, I found these examples:

100percentwholewheatthatkidslovetoeat.xxx, 101waystoleaveagameshow.xxx, 1firstnationalmergersandacquisitions.xxx, 1stchoiceliquorsuperstore.xxx, 2bupushingalltherightbuttons.xxx, 247claimsservicethesupportyouneed30minutesguaranteed.xxx, 3pathpowerdeliverysystembypioneermagneticsinc.xxx

Is it worth $400 a year to block the trademark “100 Percent Whole Wheat That Kids Love To Eat”? Is there any real danger of a cybersquatter going after that particular brand (apart from the fact that I’ve now written about it twice)?

Kirsch said a “small percentage” of Sunrise B owners have already said they don’t want to convert, but given that the rest will auto-convert, and that the registrars are doing all the customer-facing stuff, the company has limited visibility into likely uptake.

Brian King, director of policy at MarkMonitor, told us: “We generally encourage our clients to consider blocks. They can be cost effective and a lot of times clients would rather have their brand be unavailable without having to register in TLDs where they don’t want to own domain registrations for any number of reasons.”

One reason brand owners may want to consider converting to AdultBlock — it’s rumored that GoDaddy will be relaxing its eligibility criteria for .xxx next year, removing the requirement for registrants to have a nexus to the porn industry.

It’s always been kind of a bullshit rule, basically a hack to allow ICM to run a “sponsored” TLD under ICANN’s rules from the 2003 application round, but doing away with it would potentially make it easier for cybersquatters to get their hands on .xxx domains.

CSC told customers in a recent webinar that the rules are likely to be changed next year, increasing the risk of cybersquatting.

There’s some circumstantial evidence to suggest that CSC might be on to something — pretty much every “sponsored” gTLD from the same 2003 application round as .xxx has relaxed their reg rules to some extent, sometimes when their contracts come up for renewal and ICANN tries to normalize them with the text of the standard 2012-round agreement.

And GoDaddy’s .xxx contract with ICANN is being renegotiated right now. It was due to expire in March, but it was extended in February until December 15, a little under a month from now. We may soon see ICANN open up the new text for public comment.

Kirsch, who’s not part of the negotiations, could not confirm that the eligibility relaxation is going to happen or that it’s something GoDaddy is pushing for.

If it were to happen, it wouldn’t be for some time, and it wouldn’t necessarily impact on the December 1 deadline for Sunrise B conversions, which is going to be interesting to watch in its own right.

“There are registrations that are protecting people’s trademarks that are expiring and our primary objective here is to ensure that that protection continues, and that’s what we’ll do,” GoDaddy’s Kirsch said.

“If we just let them expire, it would create a lot of opportunity for brand infringement. Faced with that choice, our primary objective is to protect trademark owners,” he said.

GoDaddy welcomes four porn TLDs

GoDaddy may not have the raunchy public image it once promoted, but it’s now the official registry for tens of thousands of porn-related domain names.

The gTLDs .xxx, .porn, .adult and .sex made the move from UNR’s back-end to GoDaddy Registry this week, IANA records show.

These almost certainly the TLDs that MMX was talking about last week when it said it had ICANN approval to reassign four contracts, which it did not name.

IANA records still show the sponsor as ICM Registry for all four, suggesting the deal was structured a little differently to the 20-odd other gTLDs in MMX’s portfolio, which are still with MMX.

MMX said earlier this year that it was selling its entire portfolio to GoDaddy for at least $120 million.

.xxx, which launched the earliest — pre-2012 — is the largest of the TLDs, with around 55,000 names under management. .porn has about 10,000 and the other two have about 8,000 each.

Now celebrities and politicians can block their porn names

Celebrities and holders of unregistered trademarks are now able to buy porn domain blocks from MMX.

The company’s subsidiary, ICM Registry, has broadened its eligibility criteria in order to shift more units of the product, upon which it is banking much of its growth hopes.

Previously, to get an AdultBlock subscription you either had to have previously blocked your brand using ICM’s Sunrise B scheme, which ran in 2011, or to have a trademark registered in the Trademark Clearinghouse.

Now, you don’t need to be in the TMCH, and your trademark does not even need to be legally registered.

Celebrities and politicians are explicitly covered. They have to provide evidence to prove their fame, such as IMDB profiles or movie posters. Politicians need to provide links or documentation proving their political activities or government roles.

AdultBlock prevents brands being registered in MMX’s .porn, .adult, .xxx and .sex gTLDs, as an alternative to defensive registrations. The AdultBlock+ service also blocks homographs.

When .xxx launched a decade ago, thousands of celebrity names, largely harvested from Wikipedia, were blocked by default and free of charge.

ICM even blocked the names of 2011-era ICANN executives and directors. Then-CEO Rod Beckstrom benefited from a block on rodbeckstrom.xxx that survives to this day. Current CEO Göran Marby does not appear to have afforded the same privilege.

My name is also blocked, because it’s a match with goodness knows how many famous people called Kevin Murphy.

Despite the obviously sensitive nature of the TLDs for many brands, there’s been very little cybersquatting in .xxx in the near-decade since its launch. There have been a few dozen UDRP complaints, and most of those were filed in 2012.

MMX, amid poor renewals for its less porny gTLDs, has placed a lot of focus on AdultBlock renewals for its short-term growth.

The company is in the process of having its assets acquired by GoDaddy for $120 million, with the deal expected to close in August, subject to various approvals.

No .sex please, we’re infected!

MMX saw poorer-than-expected sales of porn-related defensive registrations in the first half of the year, the only blip in what was otherwise a strong period for the company.

The registry updated the market today to say that its domain name base grew by 31% year over year during the half, ending June with 2.38 million names under management. It only grew by 19% in the same period last year.

Billings for H1 were up 7% at $7.9 million, MMX said.

But because the mix shifted away from one-off brokered sales, which are registered on the earnings report as a lump sum, and towards regular automated registrations, which are recognized over the lifetime of the reg, MMX expects to report revenue 5% down on last year.

While that’s all fair enough, the company said that it didn’t sell as many defensive blocks in .xxx, .sex, .porn and .adult as it had expected, which it blamed on coronavirus:

Management also notes that expected H1 channel sales from the Company’s brand protection activity were held back due to the impact of COVID-19, but anticipates those brand protection initiatives that were delayed in Q2 will resume in H2.

It’s a reference to the AdultBlock and AdultBlock Plus services launched last year, which enable trademark owners to block (and not use) their marks in all four adult TLDs for about $350 to $800 a year.

MMX switches porn TLDs from Afilias to Uniregistry

Kevin Murphy, September 18, 2019, Domain Registries

Minds + Machines is moving its four porn-themed gTLDs to a new back-end provider.

MMX CEO Toby Hall confirmed to DI today that the company is ditching Afilias, which had been providing registry services for .xxx since 2011.

“We’re in the process of switching the back-ends from Afilias to Uni for the ICM portfolio,” he said.

This portfolio, which MMX acquired last year, also includes .porn, .adult and .sex. There are roughly 170,000 domains under management in total, but about half of these are sunrise-period blocks in .xxx, which could add a wrinkle to the transition.

It appears that Afilias is still providing DNS for the TLDs, but Uniregistry has been named the official tech contact.

It’s not currently clear when the handover will be complete. Hall was not immediately available for further comment.

It’s also not currently clear why Uniregistry was selected. All of MMX’s 27 other gTLDs — the likes of .vip, .work and .law — have been running on Nominet’s platform since MMX dropped its own self-hosted infrastructure a few years back.

During the same restructuring, Uniregistry took on MMX’s registrar business.

Uniregistry has also been working closely with MMX on its recently launched AdultBlock trademark blocking services, which could wind up accounting for a big chunk of MMX’s porn-related revenue.

These latest four gTLDs to switch providers are merely the latest in a game of musical chairs that has been playing out for the last several months, five years after the first new gTLDs started going live and registries shop around for better back-end deals.

Nominet picked up most of Amazon’s portfolio, replacing Neustar, earlier this year.

But Nominet has lost high-profile .blog to CentralNic, and Afilias lost a Brazilian dot-brand to Nic.br

Porn-block retail prices revealed. Wow.

Kevin Murphy, August 20, 2019, Domain Registrars

The first retail prices for MMX’s porn-blocking AdultBlock services have been revealed, and they ain’t cheap.

The registrar 101domain yesterday announced that it has started offering AdultBlock and sister service AdultBlock+, and published its pricing.

Trademark owners wanting to block a single string across .sex, .porn, .adult and .xxx will pay $349 per year with the vanilla, renew-annually service.

If they want the AdultBlock+ service, which also blocks homographs, they’ll pay $799 a year or $7,495 for the maximum 10-year term.

Compare this to the Sunrise B offer that ICM Registry made to trademark owners in 2011, where a string in .xxx cost roughly $200 to $300 for a 10-year block.

The two services are not directly comparable, of course. AdultBlock covers three additional TLDs and the AdultBlock+ service covers confusingly similar variants.

But trademark owners are buying peace of mind that their brands won’t be registered as porn sites, and the cost of that peace of mind just increased tenfold.

AdultBlock domains don’t resolve, and are a lot cheaper than domain registrations.

Renewing a single string in all four gTLDs at 101domain prices would cost around $480 a year, so customers will pay about 27% less buying a block instead.

The cost of the first year for those four domains would be $360, just $11 more than the AdultBlock price, according to 101domain’s price list.

MMX, which acquired the gTLD portfolio from ICM last year, is offering a discount on the AdultBlock+ service for customers buying before the end of 2019.

101domain is offering 10 years of AdultBlock+ for $3,999, a saving of $3,500.

101domain is not known as a particularly expensive registrar, so prices elsewhere in the industry could go higher.

Porn blocks could be worth millions to MMX

Minds + Machines could find itself making millions of dollars a year out of non-resolving defensive registrations in its recently acquired portfolio of porn-themed gTLDs.

The company recently announced the launch of AdultBlock and AdultBlock Plus, which will enable trademark owners to prevent anyone else registering their marks, and variants thereof, for up to 10 years.

Running the numbers, and taking into account MMX’s already substantial established client base for such services, AdultBlock could bring in as much as $11 million a year. But it’s almost certainly going to be much less than that.

The company won’t disclose it’s exact pricing for AdultBlock, or its revenue estimates, but it’s possible to do some back-of-the-envelope calculations and come to some ball-park guesses.

MMX has said that it’s pricing the service such that customers should be able to see a 35% saving compared to the cost of registering a single string across all four of its porn TLDs

The company acquired .xxx, .porn, .adult and .sex when it bought ICM Registry last year.

The wholesale fee for each of the four is believed to be about $68 a year. From this, we can calculate that the wholesale price of AdultBlock may well be around the $175-a-year mark.

There’s some room for error here, as MMX hasn’t revealed precisely how it came to its 35% number, but I think we can safely say we’re looking at $150 to $200 a year. For the purposes of this envelope, let’s split the difference and assume it’s $175.

It’s quite a high number, a bit like a recurring sunrise fee for a domain that you don’t even get to use.

But how many domains can MMX expect to be blocked?

A low-ball estimate could be modeled on the .porn/.adult/.sex sunrise periods.

.porn launched in 2015 and gathered 2,091 sunrise registrations, according to ICANN records, making it one of the largest new gTLD sunrise periods. The other two TLDs weren’t far behind.

If that’s a good guide for AdultBlock uptake, we’re talking about a piddling $360,000-a-year business.

But MMX has a secret weapon that it inherited from .xxx.

When .xxx launched back in 2011, it kicked off with two sunrise periods. Sunrise A was for trademark owners in the porn business who wanted to use their .xxx names. Sunrise B was for everyone else, who didn’t.

In Sunrise B, brand owners paid $162 (plus their registrar’s markup) to block their domains for a flat period of 10 years.

Customers couldn’t use their domains. They were registered to ICM and used specially designated ICM name servers to resolve to a standard, non-monetized placeholder page stating “This domain has been reserved from registration.”

There are over 80,000 domains using these name servers, but about 15,000 of those represent names of celebrities, cities, and religiously and culturally sensitive terms that ICM culled from Wikipedia and unilaterally reserved to help avoid a tabloid crucifixion if mileycyrus.xxx ever started bouncing children to something pornographic, such as one of her music videos.

(As an aside, I think it’s worth mentioning that the .xxx zone file only has 93,000 names in it. These means about nine out of 10 live .xxx domains are reserved by the registry.)

So we’ve got 65,000 trademarks that are currently blocked in .xxx, and they’re all going to expire in 2021 because ICM only sold blocks for the duration of its original 10-year ICANN contract.

If all 65,000 domains are upgraded to AdultBlock, the service would be worth over $11 million a year, to a company currently reporting annual revenue around $15 million.

But they won’t.

You don’t have to scroll too far down the .xxx zone file (and I didn’t) to discover some absolute garbage, no doubt the result of scaremongering around the 2011 .xxx launch.

I mean, seriously, look at some of this Sunrise B guff:

100percentwholewheatthatkidslovetoeat.xxx, 101waystoleaveagameshow.xxx, 1firstnationalmergersandacquisitions.xxx, 1stchoiceliquorsuperstore.xxx, 2bupushingalltherightbuttons.xxx, 247claimsservicethesupportyouneed30minutesguaranteed.xxx, 3pathpowerdeliverysystembypioneermagneticsinc.xxx

I think we’re going to be looking at a significant junk drop of blocked domains come 2021.

That said, I think MMX may have a psychological advantage here, when it comes to persuading Sunrise B users to “renew”.

Who hasn’t renewed a domain name they strongly suspect they will never use or sell, simply because they couldn’t bear the thought of somebody else owning “their” domain?

An additional consideration for brand owners is that these Sunrise B names are going to show up on drop-lists when they are eventually deleted from the .xxx zone file, perhaps giving inspiration to cybersquatters.

This is a fantastic opportunity for MMX and brand protection registrars to put the hard sell on its Sunrise B customers to “renew” their blocks by upgrading to the new and improved AdultBlock service, which could cost literally 10 times more than what they originally signed up for.

AdultBlock is of course more comprehensive than Sunrise B. It covers three additional TLDs, for starters, and customers can pay a little more for potentially thousands of potential homographs (non-Latin-script domains that look almost identical to the original) to also be blocked.

MMX isn’t waiting until 2021, however. It’s currently offering companies that buy a 10-year-block before the end of 2019 the AdultBlock+ service for the price of the vanilla, no-variants offering.

Existing Sunrise B customers have until the same deadline to purchase the new service without having to have their trademarks re-verified, which carries an additional fee.

For those that miss this early-bird offer, come December 2021, the holders of up 65,000 trademarks are going to face a stark choice: sign up to pay a couple hundred bucks a year, or risk their brands being snapped up by pornsquatters.

Brand-blocking service plotted for porn gTLDs

MMX wants to offer a new service for trademark owners worried about cybersquatting in its four porn-themed gTLDs.

The proposed Adult Block Services would be similar to Donuts’ groundbreaking Domain Protected Marks List and the recent Trademark Sentry offering from .CLUB Domains.

The service would enable big brands to block their marks from registration across all four TLDs for less than the price of individual defensive registrations.

Prices have not been disclosed, but a more-expensive “Plus” version would also allow the blocking of variants such as typos. The registry told ICANN:

The Adult Block Services will be offered as a chance for trademark owners to quickly and easily make labels unavailable for registration in our TLDs. For those trademark owners registering domain names as a defensive measure only, the Adult Block Services offer an easy, definitive, and cost-effective method for achieving their goals by offering at-a-stroke protection for TLDs included in the program. The Adult Block Services are similar to the Donuts’ DPML, Uniregistry’s EP and EP Plus and the .Club UNBS and should be immediately understood and accepted by the trademark community.

The Adult Block will allow trademark owners to block unregistered labels in our TLDs that directly match their trademarks. The Adult Block Plus will allow trademark owners to block unregistered, confusingly similar variations of their trademarks in our TLDs.

It seems more akin to DPML, and Uniregistry’s recently launched clone, than to .CLUB’s forthcoming single-TLD offering.

The Registry Service Evaluation Process request was filed by ICM Registry, which was acquired by MMX last year.

It only covers the four porn gTLDs that ICM originally ran, and not any of the other 22 gTLDs managed by MMX (aka Minds + Machines).

This will certainly make the service appear less attractive to the IP community than something like DPML, which covers Donuts stable of 242 TLDs.

While there’s no public data about how successful blocking services have been, anecdotally I’m told they’re quite popular.

What we do have data on is how popular the ICM gTLDs have been in sunrise periods, where trademark owners showed up in higher-than-usual numbers to defensively register their marks.

.porn, .adult and .sex garnered about 2,000 sunrise regs each, more than 20 times the average for a new gTLD, making them three of the top four most-subscribed sunrise periods.

Almost one in five of the currently registered domains in each of these TLDs is likely to be a sunrise defensive.

Now that sunrise is long gone, there may be an appetite in the trademark community for less-expensive blocks.

But there have been calls for the industry to unify and offer blocking services to cover all gTLDs.

The brand-protection registrar Com Laude recently wrote:

What brands really need is for registry operators to come together and offer a universal, truly global block that applies across all the open registries and at a reasonable price that a trademark owner with multiple brands can afford.

Quite how that would happen across over 1,200 gTLDs is a bit of a mystery, unless ICANN forced such a service upon them.

Will ICANN take a bigger slice of the .com pie, or will .domainers get URS?

Kevin Murphy, November 5, 2018, Domain Registries

Will ICANN try to get its paws on some of Verisign’s .com windfall? Or might domainers get a second slap in the face by seeing URS imposed in .com?

With Verisign set to receive hundreds of millions of extra dollars due to the imminent lifting of .com price caps, it’s been suggested that ICANN may also financially benefit from the arrangement.

In a couple of blog posts Friday, filthy domain scalper Andrew Allemann said that ICANN will likely demand higher fees from Verisign in the new .com registry agreement.

Will it though? I guess it’s not impossible, but I wouldn’t say it’s a certainty by any means.

Verisign currently pays ICANN $0.25 per transaction, the same as almost all other gTLDs. Technically, there’s no reason this could not be renegotiated.

Putting aside some of the legacy gTLD contracts, I can only think of two significant cases of ICANN imposing higher fees on a registry.

The first was .xxx, which was signed in 2011. That called for ICM Registry, now part of MMX, to pay $2 per transaction, eight times the norm.

The rationale for this was that ICANN thought (or at least said it thought) that .xxx was going to be a legal and compliance minefield. It said it envisaged higher costs for overseeing the then-controversial TLD.

There was a school of thought that ICANN was just interested in opportunistically boosting its own coffers, given that ICM was due to charge over $60 per domain per year — at the time a ludicrously high amount.

But risk largely failed to materialize, and the two parties last year renegotiated the fees down to $0.25.

The second instance was .sucks, another controversial TLD. In that case, ICANN charged registry Vox Populi a $100,000 upfront fee and per-transaction fees of $1 per domain for the first 900,000 transactions, four times more than the norm.

While some saw this as a repeat of the .xxx legal arse-covering tactic, ICANN said it was actually in place to recoup a bunch of money that Vox Pop owner Momentous still owed when it let a bunch of its drop-catch registrars go out of business a couple years earlier.

While the .sucks example clearly doesn’t apply to Verisign, one could make the case that the .xxx example might.

It’s possible, I guess, that ICANN could make the case that Verisign’s newly regained ability to raise prices opens it up to litigation risk — something I reckon is certainly true — and that it needs to increase its fees to cover that risk.

It might be tempting. ICANN has a bit of a budget crunch at the moment, and a bottomless cash pit like Verisign would be an easy source of funds. A transaction fee increase of four cents would have been enough to cover the $5 million budget shortfall it had to deal with earlier this year.

On the other hand, it could be argued that ICANN demanding more money from Verisign would unlevel the playing field, inviting endless litigation from Verisign itself.

ICANN’s track record with legacy gTLDs has been to reduce, rather than increase, their transaction fees.

Pre-2012 gTLDs such as .mobi, .jobs, .cat and .travel have all seen their fees reduced to the $0.25 baseline in recent years, sometimes from as high as $2.

In each of these cases, the registries concerned had to adopt many provisions of the standard 2012 new gTLD registry agreement including, controversially, the Uniform Rapid Suspension service.

Domainers hate the URS, which gives trademark owners greater powers to take away their domains, and the Internet Commerce Association (under the previous stewardship of general counsel Phil Corwin, since hired by Verisign) unsuccessfully fought against URS being added to .mobi et al over the last several years, on the basis that eventually it could worm its way into .com.

I’m not suggesting for a moment that ICANN might reduce Verisign’s fees, but what if URS is the price the registry has to pay for its massive .com windfall?

It’s not as if Verisign has any love for domainers, despite the substantial contribution they make to its top line.

Since the NTIA deal was announced, it’s already calling them “scalpers” and driving them crazy.

ICA lost the .com price freeze fight last week, could it also be about to lose the URS fight?

After ICANN nod, MMX buys .xxx

MMX has closed the acquisition of porn-focused ICM Registry, after receiving the all-clear from ICANN for the contract transfers.

The deal is worth roughly $41 million — $10 million cash and about $31 million in stock.

ICM runs .xxx from the 2003 gTLD application round (though it didn’t go live until 2011) and .porn, .adult and .sex from the 2012 round.

MMX, which now has 29 fully-owned TLDs and another five in partnerships, will now become roughly a quarter-owned by former ICM employees and its back-end provider, Afilias.

ICM president Stuart Lawley now owns 15% of MMX and is its largest shareholder.

CEO Toby Hall said in a statement to the markets that he has “identified a number areas of potential growth and synergy”.

The company noted that the deal increases the share of its revenue coming from the US and Europe, implicitly highlighting the reduction of its exposure to the volatile Chinese market, where .vip has been its biggest money-spinner to date.

ICM had something like 152,000 .xxx domains under management at the last count, but over 80,000 of those are reservations. It has about 92,000 names in its zone file currently.

The three 2012-round names are faring less well, with about 8,000 to 10,000 names apiece in their zones.

Somebody once jokingly told me that ICM stood for “Internet Cash Machine”, due to the perception that porn-focused names would sell like, well, porn. Just thought I’d mention that.