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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‚Äôs 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?