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ICANN probing Donuts and Tucows over anti-Jewish web site

Kevin Murphy, November 16, 2018, Domain Policy

ICANN is investigating Tucows and Donuts over a web site that hosts antisemitic, white supremacist content.
CEO Goran Marby said in a letter published this week that he has referred a complaint about the web site judas.watch to ICANN’s Compliance department.
The web site in question says it is dedicated to documenting “anti-White traitors, agitators and subversives & highlighting Jewish influence.” It appears to be half database, half blog.
Its method of “highlighting Jewish influence” is possibly the most disturbing part — the site tags people it believes are Jewish with a yellow Star of David, mimicking the way the Nazis identified Jews during the Holocaust.
The site is quite liberal in how it applies these stars, going so far as to label UK Labour Party leader Jeremy Corbyn, who has been fighting off his own allegations of antisemitism for years, as Jewish.
Over 1,600 people and organizations are currently listed. Posts there also seem keen to highlight its subjects’ sexual orientation.
As far as I can tell, there are no direct calls to violence on the site, and the level of what you might call “hate speech” is pretty mild. It publishes the social media handles of its subjects, but I could not find any physical addresses or phone numbers.
The complaint to ICANN (pdf) came from WerteInitiative (“Values Initiative”), which appears to be a small, relatively new Jewish civil society group based in Germany.
WerteInitiative said judas.watch “poses a direct threat to the named persons with unforeseeable consequences for them, and especially so for the identified Jews”.
“We want this site banned from the Internet and ask for your help in doing so: can you help us to find out who behind this page is, so we can get it banned in Germany?” the letter concludes.
The domain has been behind Whois privacy since it was registered in 2014, so the registrant’s name was not public even prior to GDPR.
Marby, in response (pdf), says the complaint “raises a serious issue”.
While he goes to some lengths to explain that ICANN does not have the authority, contractual or otherwise, to demand the suspension of any domain name, he said he has nevertheless referred the complaint to Compliance.
Compliance has already reached out to the organization for more information, Marby said.
He also encouraged WerteInitiative to talk to .watch registry Donuts and judas.watch registrar eNom (owned by Tucows), as well as the hosting company, to see if that could help resolve the issue.
While ICANN is always adamant that it does not venture into content regulation, it strikes me that this exchange shows just what a tightrope it walks.
It comes against the backdrop of controversy over the suspension by GoDaddy of the domain Gab.com, a Twitter clone largely hosting far-right voices that have been banned from other social media platforms.

Kirikos lawyers up after ICANN etiquette fight

Kevin Murphy, October 25, 2018, Domain Policy

Domain investor George Kirikos has hired lawyers to send nastygrams to ICANN after a fight over the rules of etiquette on a working group mailing list.
Kirikos claims there’s a “campaign of intimidation” against him by fellow volunteers who do not agree with his opinions and forthright tone, but that he “has not done anything wrong”.
In response, ICANN CEO Goran Marby this evening revealed that he has assigned his general counsel and new deputy, John Jeffrey, to the case.
Even by ICANN standards, it’s a textbook case of a) manufacturing mountains out of molehills, and b) how it can become almost impossible to communicate like sensible human beings when everyone’s tangled in red tape.
The dispute started back in May, when Kirikos got into a fight with IP lawyer Greg Shatan on the mailing list of the Rights Protection Mechanisms working group.
Both men are volunteers on the group, which seeks to refine ICANN policy protecting trademark owners in gTLDs.
The argument was about the content of a World Intellectual Property Organization web page listing instances of UDRP cases being challenged in court.
Kirikos took a strident tone, to which Shatan took exception.
Shatan then reported Kirikos to the working group’s co-chairs, claiming a breach of the Expected Standards of Behavior — the informal code of conduct designed to prevent every ICANN discussion turning into a flame war and/or bare-knuckle alley fight.
Under GNSO PDP rules, working group volunteers have to agree to abide by the ESB. Group chairs have the ability to kick participants who repeatedly offend.
At this point, the sensible thing to do would have been for Shatan and Kirikos to hug it out and move on.
But this is ICANN.
What actually happened was a pointless procedural back-and-forth between Kirikos, Shatan, and working group chairs Phil Corwin of Verisign and Brian Beckham of WIPO, which resulted in Kirikos hiring two lawyers — Andrew Bernstein of Torys and regular ICANN participant Robin Gross of IP Justice.
It’s believed to be the first time a WG participant has hired counsel over a mailing list argument.
Far too boring to recount here, Corwin’s timeline of events can be found from page 24 of this transcript (pdf) of remarks delivered here in Barcelona during ICANN 63, while the Bernstein/Kirikos timeline can be found here (pdf).
The rub of it is that Kirikos reckons both Corwin and Beckham are biased against him — Beckham because Kirikos voted against his chairship, Corwin because of a similar dispute in a related working group earlier this year — and that the ESB is unenforceable anyway.
According to Bernstein: “Mr. Kirikos has strong concerns that whatever process ICANN purports to operate with respect to Mr. Shatan’s complaint, it will not be fairly or neutrally adjudicated.”
He added that Kirikos had said that “due to the precise language of Section 3.4 of the Working Group Guidelines, Mr. Shatan lacked a basis to initiate any complaint”.
That language allows complaints to be filed if the ESB is “abused”. According to Corwin’s account, Kirikos — well-known as a detail-oriented ICANN critic — reckons the correct term should be “violated”, which rendered the ESB “null and void and unenforceable” in this instance.
Bernstein has since added that the ICANN board of directors never intended the ESB to be anything but voluntary.
The sum of this appears to be that the dispute has had a chilling effect on the RPM working group’s ability to get anything done, consuming much of its co-chairs’ time.
Kirikos lawyering up seems to have compounded this effect.
Now, as ICANN 63 drew to a close this evening, CEO Marby said in a brief prepared statement that the WG’s work has “more or less stalled for the last several months” and that he’s assigned general counsel John Jeffrey to “look into the issues surrounding this matter”.
ICANN “takes the issue very seriously”, he said.
As well it might. The Kirikos/Shatan incident may have been blown waaaaay out of proportion, but at its core is a serious question about civil discourse in ICANN policy-making.
Personally, I hold out hope it’s not too late for everyone to hug it out and move on.
But this is ICANN.

Amazon offered $5 million of free Kindles for .amazon gTLD

Kevin Murphy, October 23, 2018, Domain Policy

Amazon offered South American governments $5 million worth of free Kindles, content and cloud services in exchange for their endorsement of its .amazon gTLD application, it has emerged.
The proposal, made in February, also included an offer of four years of free hosting up to a value of $1 million.
The sweeteners came during negotiations with the eight governments of the Amazon Cooperation Treaty Organization, which object to .amazon because they think it would infringe on their geographical and cultural rights.
Amazon has sought to reassure these governments that it will reserve culturally sensitive strings of their choice in .amazon, and that it will actively support any future applications for gTLDs such as .amazonas, which is the more meaningful geographic string in local languages.
I’ve reported on these offers before, but to my knowledge the offer of free Kindles and AWS credits has not been made public before. (UPDATE: Nope.)
According to a September letter from ACTO, published (pdf) this week, Amazon told it:

as an indication of goodwill and support for the people and governments of the Amazonian Region… [Amazon will] make available to the OTCA governments credits for the use of AWS services, Kindles preloaded with mutually agreed upon content, and similar Amazon.com services and products in an amount not to exceed $5,000,000.

Amazon also offered to set up a .amazon web site “to support the Amazonian people’s cultural heritage” and pay up to $1 million to host it for four years.
These kinds of financial sweeteners would not be without precedent.
The applicant for .bar wound up offering to donate $100,000 to fund a school in Montenegro, after the government noted the string match with the Bar region of the country.
The ACTO countries met in August to consider Amazon’s offer, but chose not to accept it.
However, they’re not closing off talks altogether. Instead, they’ve taken up ICANN on its offer to act as a facilitator of talks between Amazon and ACTO members.
The ICANN board of directors passed a resolution last month instructing CEO Goran Marby to “support the development of a solution” that would involve “sharing the use of those top-level domains with the ACTO member states”.
ACTO secretary general Jacqueline Mendoza has responded positively to this resolution (pdf) and invited Marby to ACTO headquarters in Brasilia to carry on these talks.

US not happy with Donuts hiring Atallah

Kevin Murphy, October 22, 2018, Domain Policy

The US government appears to have reservations about Donuts’ recent hiring of ICANN bigwig Akram Atallah as its new CEO.
Speaking at a session of ICANN 63 here in Barcelona today, National Telecommunications and Information Administration head David Redl alluded to the recent hire.
Atallah was president of the Global Domains Division and twice interim CEO.
While most of Redl’s brief remarks today concerned internet security and Whois, he concluded by saying:

While the community has greatly improved ICANN’s accountability through the IANA stewardship transition process, there are still improvements to be made.
As one example, we need safeguards to ensure that ICANN staff and leadership are not only grounded ethically in their professional actions at ICANN, but also in their actions when they seek career opportunities outside of ICANN.
One potential fix could be “cooling off periods” for ICANN employees that accept employment with companies involved in ICANN activities and programs. This is an ethical way to ensure that conflicts of interest or appearances of unethical behavior are minimized.

ICANN faced similar scrutiny back in the 2011, when ICANN chair Peter Dengate Thrush pushed through the new gTLD program and almost immediately began working for a new gTLD applicant.
That was the same year Redl moved from being head of regulatory affairs at CTIA — lobbying for wireless industry legislation — to counsel to the House of Representatives Energy and Commerce Committee — helping to craft wireless industry legislation.
Here are his remarks. Redl starts speaking at around the 38-minute mark.

ICANN denies it’s in bed with trademark lawyers

Kevin Murphy, October 21, 2018, Domain Policy

ICANN chair Cherine Chalaby has strongly denied claims from non-commercial stakeholders that its attitude to Whois reform is “biased” in favour of “special interests” such as trademark lawyers.
In a remarkably fast reply (pdf) to a scathing October 17 letter (pdf) from the current and incoming chairs of the Non-Commercial Stakeholders Group, Chalaby dismissed several of the NCSG’s claims of bias as “not true”.
The NCSG letter paints ICANN’s efforts to bring Whois policy into line with the General Data Protection Regulation as rather an effort to allow IP owners to avoid GDPR altogether.
It even suggests that ICANN may be veering into content regulation — something it has repeatedly and specifically disavowed — by referring to how Whois may be used to combat “fake news”.
The “demonstrated intention of ICANN org has been to ensure the unrestrained and unlawful access to personal data demanded by special interest groups”, the NCSG claimed.
It believes this primarily due to ICANN’s efforts to support the idea of a “unified access model” — a way for third parties with “legitimate interests” to get access to private Whois data.
ICANN has produced a couple of high-level framework documents for such a model, and CEO Goran Marby has posted articles playing up the negative effects of an inaccessible Whois.
But Marby has since insisted that a unified access model is still very much an “if”, entirely dependent on whether the community, in the form of the Whois EPDP working group, decides there should be one.
That message was reiterated in Chalaby’s new letter to the NCSG.

The conversation on whether to adopt such a model must continue, but the outcomes of those discussions are for the community to decide. We expect that the community, using the bottom-up multistakeholder model, will take into account all stakeholders’ views and concerns.

He denied that coordinating Whois data is equivalent to content regulation, saying it falls squarely within ICANN’s mandate.
“ICANN’s mission related to ‘access to’ this data has always encompassed lawful third-party access and use, including for purposes that may not fall within ICANN’s mission,” he wrote.
The exchange of letters comes as parties on the other side of the Whois debate also lobby ICANN and its governmental advisors over the need for Whois access.

ICANN 63, Day 0 — registrars bollock DI as Whois debate kicks off

Kevin Murphy, October 21, 2018, Domain Policy

Blameless, cherubic domain industry news blogger Kevin Murphy received a bollocking from registrars over recent coverage of Whois reform yesterday, as he attended the first day of ICANN 63, here in Barcelona.
Meanwhile, the community working group tasked with designing this reform put in a 10-hour shift of face-to-face talks, attempting to craft the language that will, they hope, bring ICANN’s Whois policy into line with European privacy law.
Talks within this Expedited Policy Development Process working group have not progressed a massive amount since I last reported on the state of affairs.
They’re still talking about “purposes”. Basically, trying to write succinct statements that summarize why entities in the domain name ecosystem collect personally identifiable information from registrants.
Knowing why you’re collecting data, and explaining why to your customers, is one of the things you have to do under the General Data Protection Regulation.
Yesterday, the EPDP spent pretty much the entire day arguing over what the “purposes” of ICANN — as opposed to registries, registrars, or anyone else — are.
The group spent the first half of the day trying to agree on language explaining ICANN’s role in coordinating DNS security, and how setting policies concerning third-party access to private Whois data might play a role in that.
The main sticking point was the extent to which these third parties get a mention in the language.
Too little, and the Intellectual Property Constituency complains that their “legitimate interests” are being overlooked; too much, and the Non-Commercial Stakeholders Group cries that ICANN is overstepping its mission by turning itself into a vehicle for trademark enforcement.
The second half of the day was spent dealing with language explaining why collecting personal data helps to establish ownership of domains, which is apparently more complicated than it sounds.
Part of this debate was over whether registrants have “rights” — such as the right to use a domain name they paid for.
GoDaddy policy VP James Bladel spent a while arguing against this legally charged word, again favoring “benefits”, but appeared to eventually back down.
It was also debated whether relatively straightforward stuff such as activating a domain in the DNS by publishing name servers can be classed as the disclosure of personal data.
The group made progress reaching consensus on both sets of purposes, but damn if it wasn’t slow, painful progress.
The EPDP group will present its current state of play at a “High Interest Topic” session on Monday afternoon, but don’t expect to see its Initial Report this week as originally planned. That’s been delayed until next month.
While the EPDP slogs away, there’s a fair bit of back-channel lobbying of ICANN board and management going on.
All the players with a significant vested interest in the outcome are writing letters, conducting surveys, and so on, in order to persuade ICANN that it either does or does not need to create a “unified access model” that would allow some parties to carry on accessing private Whois data more or less the same way as they always have.
One such effort is the one I blogged about on Thursday, shortly before heading off to Barcelona, AppDetex’s claims that registrars have ignored or not sufficiently responded to some 9,000 automated requests for Whois data that its clients (notably Facebook) has spammed them with recently.
Registrars online and in-person gave me a bollocking over the post, which they said was one-sided and not in keeping with DI’s world-renowned record of fairness, impartiality and all-round awesomeness (I’m paraphrasing).
But, yeah, they may have a point.
It turns out the registrars still have serious beef with AppDetex’s bulk Whois requests, even with recent changes that attempt to scale back the volume of data demanded and provide more clarity about the nature of the request.
They suspect that AppDetex is simply trawling through zone files for strings that partially match a handful of Facebook’s trademarks, then spamming out thousands of data requests that fail to specify which trademarks are being infringed and how they are being infringed.
They further claim that AppDetex and its clients do not respond to registrars’ replies, suggesting that perhaps the aim of the game here is to gather data not about the owner of domains but about registrars’ alleged non-compliance with policy, thereby propping up the urgent case for a unified access mechanism.
AppDetex, in its defence, has been telling registrars on their private mailing list that it wants to carry on working with them to refine its notices.
The IP crowd and registrars are not the only ones fighting in the corridors, though.
The NCSG also last week shot off a strongly worded missive to ICANN, alleging that the organization has thrown in with the IP lobby, making a unified Whois access service look like a fait accompli, regardless of the outcome of the EPDP. ICANN has denied this.
Meanwhile, cybersecurity interests have also shot ICANN the results of a survey, saying they believe internet security is suffering in the wake of ICANN’s response to GDPR.
I’m going to get to both of these sets of correspondence in later posts, so please don’t give me a corridor bollocking for giving them short shrift here.
UPDATE: Minutes after posting this article, I obtained a letter Tucows has sent to ICANN, ripping into AppDetex’s “outrageous” campaign.
Tucows complains that it is being asked, in effect, to act as quality control for AppDetex’s work-in-progress software, and says the volume of spurious requests being generated would be enough for it ban AppDetex as a “vexatious reporter”.
AppDetex’s system apparently thinks “grifflnstafford.com” infringes on Facebook’s “Insta” trademark.
UPDATE 2: Fellow registrar Blacknight has also written to ICANN today to denounce AppDetex’s strategy, saying the “automated” requests it has been sending out are “not sincere”.

Registrars still not responding to private Whois requests

Kevin Murphy, October 18, 2018, Domain Policy

Registrars are still largely ignoring requests for private Whois data, according to a brand protection company working for Facebook.
AppDetex wrote to ICANN (pdf) last week to say that only 3% of some 9,000 requests it has made recently have resulted in the delivery of full Whois records.
Almost 60% of these requests were completely ignored, the company claimed, and 0.4% resulted in a request for payment.
You may recall that AppDetex back in July filed 500 Whois requests with registrars on behalf of client Facebook, with which it has a close relationship.
Then, only one registrar complied to AppDetex’s satisfaction.
Company general counsel Ben Milam now tells ICANN that more of its customers (presumably, he means not just Facebook) are using its system for automatically generating Whois requests.
He also says that these requests now contain more information, such as a contact name and number, after criticism from registrars that its demands were far too vague.
AppDetex is also no longer demanding reverse-Whois data — a list of domains owned by the same registrant, something not even possible under the old Whois system — and is limiting each of its requests to a single domain, according to Milam’s letter.
Registrars are still refusing to hand over the information, he wrote, with 11.4% of requests creating responses demanding a legal subpoena or UDRP filing.
The company reckons this behavior is in violation of ICANN’s Whois Temporary Specification.
The Temp Spec says registrars “must provide reasonable access to Personal Data in Registration Data to third parties on the basis of a legitimate interests pursued by the third party”.
The ICANN community has not yet come up with a sustainable solution for third-party access to private Whois. It’s likely to be the hottest topic at ICANN 63 in Barcelona, which kicks off this weekend.
Whois records for gTLD domains are of course, post-GDPR, redacted of all personally identifiable information, which irks big brand owners who feel they need it in order to chase cybersquatters.

Book review — “Domain Names: Strategies and Legal Aspects”

Kevin Murphy, October 18, 2018, Domain Policy

I’ve only ever read two books about the domain name industry.
The first one was Kieren McCarthy’s excellent Sex.com, the 2007 barely believable non-fictional tech-thriller that seemed to deliberately eschew inside-baseball policy talk in favor of a funny and rather gripping human narrative.
The second, Domain Names – Strategies and Legal Aspects, by Jeanette Soderlund Sause and Malin Edmar, is pretty much the diametrical opposite.
The book, published in its second edition in June, instead seems bent on explaining the complex intersection of domain names and intellectual property rights in as few words as it is able.
Coming in at a brisk 150 pages, it’s basically been engineered to funnel as much information into your brain as possible in as short a space of time as possible.
I blazed through my complimentary review copy during a three-hour train journey a couple months ago.
About half-way through, I realized I had done absolutely no background reading about the authors or publisher, and had no idea who the intended reader was.
The introduction, written for the 2014 first edition by a Swedish civil servant then on the GAC, gives the misleading impression that the book has something to say about multistakeholderism, DNS fragmentation, or new gTLD controversies.
It doesn’t. If the authors have any political opinions, you will not learn them from Domain Names.
What you will get is a competent reference work geared primarily towards IP lawyers and brand management folk who are newbies to the world of domain names.
The authors are both Swedish IP lawyers, though Soderland Sause is currently marketing VP for the .global gTLD registry.
The first half of their book deals with introducing and briefly explaining the high-level technical aspects of the DNS and the basic structure of the market, then discussing the difference between a trademark and a domain name.
An occasionally enlightening middle section of about 30 pages deals with strategies for selecting and obtaining domains, either as fresh registrations or from third parties such as cybersquatters, investors or competitors.
But the second half of the book — which deals with UDRP and related dispute resolution procedures — is evidently where the authors’, and presumably readers’, primary interest lies.
It goes into comparative depth on this topic, and I actually started to learn a few things during this section.
As a newcomer to the work, I cannot definitively say whether the new and updated content — which I infer covers developments in new gTLDs and such over the last four years — is worth the £120 upgrade for owners of the first edition.
It also seems to have gone to the printers before it was fully clear how ICANN was going to deal with GDPR; a third edition will likely be needed in a couple of years after the smoke clears.
I’d be lying if I said I had any fun reading Domain Names, but I don’t think I was supposed to.
I can see myself keeping it near my desk for occasional reference, which I think is what it’s mainly there for.
I can see IP lawyers or ICANN policy wonks also keeping copies by their desks, to be handed out to new employees as a primer on what they need to do to get their hands on the domains they want.
These juniors can then absorb the book over a weekend and keep it by their own desks for future reference, to be eventually passed on to the next n00b.
If that’s what it’s for, I think the authors have done a pretty good job of it.
Domain Names – Strategies and Legal Aspects, 2nd edition, by Jeanette Soderlund Sause and Malin Edmar, is published by Sweet & Maxwell.

ICANN says it can spend quarter-billion-dollar auction fund however it likes

Kevin Murphy, October 12, 2018, Domain Policy

ICANN can tap into its $236 million new gTLD auction fund whenever it wants, and there’s nothing the community can do about it, according to its board of directors.
The board this week said it has a “legal and fiduciary responsibility” over the money, and would be obliged to spend the cash to meet ICANN’s obligations if it ever needed to.
The statement came in a letter to the leaders of a community working group that this week published a set of preliminary recommendations (pdf) for how the money should be distributed.
The group — a cross-community working group or CCWG — laid out a few options for how the money should be administered, either by ICANN alone or in conjunction with a charitable third party, and distributed.
The money was collected from new gTLD applicants that participated in ICANN’s “last-resort” auctions to settle their contention sets. Over half of the money came from Verisign’s winning bid for .web, which is still being contested.
The CCWG said that the money should be used to:

  • Benefit the development, distribution, evolution and structures/projects that support the Internet’s unique identifier systems;
  • Benefit capacity building and underserved populations, and;
  • Benefit the open and interoperable Internet

But the CCWG could not agree among itself whether ICANN Org or community groups such as the GNSO or GAC should be able to grab some of the cash, which is currently held in a special fund, separated from ICANN’s operational budget.
The group asked the board for its opinion, and the board responded (pdf):

ICANN maintains legal and fiduciary responsibility over the funds, and the directors and officers have an obligation to protect the organization through the use of available resources. In such a case, while ICANN would not be required to apply for the proceeds, the directors and officers would have a fiduciary obligation to use the funds to meet the organization’s obligations.

In other words: it doesn’t matter what rules you put in place, it’s our money and we’re duty-bound to spend it if we have to.
The board added, however, that ICANN Org “currently does not foresee a situation where it would need to apply for the proceeds”.
ICANN is pretty well-funded. It would have to hit hard times indeed before it needed to crack open the auction nest egg.
The board also said that supporting organizations and advisory committees would not be able to apply for funding because they’re not legal entities and wouldn’t pass the due diligence.
The CCWG’s initial report is now open for public comment until November 27.

ICANN blocks .islam after government veto

Kevin Murphy, October 8, 2018, Domain Policy

After six years, ICANN has finally killed off the applications for the new gTLDs .islam and .halal, due to objections from several governments.
It has also rejected the application for .persiangulf from the same applicant.
The decisions were made by the ICANN board of directors last Wednesday. The resolutions were published Friday night.
The board said: “it is apparent that the vast majority of the Muslim community (more than 1.6 billion members) object to the applications for .HALAL and .ISLAM.”
This actually means that the Organization of Islamic Cooperation, the 57-nation treaty group with a combined 1.6 billion nominal Muslim citizens, objected to the applications.
Several governments with large Muslim populations — including the UAE, Malaysia, Turkey, India and Iran — had also individually told ICANN on the record that they were not happy.
The view from these governments seemed to be that if there’s going to be a .islam, it should be run under the umbrella of a group such as the OIC, rather than some random tuppenny ha’penny gTLD registry.
In Christianity, the comparable gTLD .catholic is run by an affiliate of the world’s oldest pedophile ring, while .bible is being run as a propaganda tool by a group of sexually repressed, homophobic American evangelicals.
The ICANN board said its decision to reject .islam and .halal was in tune with its “core values” to protect the “public interest”.
The decision was based “on its consideration of and commitment to ICANN’s Mission and core values set forth in the Bylaws, including ensuring that this decision is in the best interest of the Internet community and that it respects the concerns raised by the majority of the community most impacted by the proposed .HALAL and .ISLAM gTLDs”.
It’s been avoiding making this decision since at least December 2013.
But it has now voted that the two applications “should not proceed”. It does not appear to have banned organizations from applying for the strings in subsequent application rounds.
The applicant for .islam and .halal was Turkey-based Asia Green IT System. It applications have been “on-hold” since the GAC issued non-consensus advice against them back in April 2013.
The OIC filed Community Objections against both gTLDs with the International Chamber of Commerce, but failed on both counts.
Having failed to see any progress, in December 2015, AGIT filed an Independent Review Process appeal against its treatment by ICANN, and won.
The November 2017 IRP decision held that the “on-hold” status was a “new policy”, unilaterally put in place by ICANN Org, that unfairly condemned AGIT’s applications to indefinite limbo.
The panel ordered ICANN to make its damn mind up one way or the other and pay about $270,000 in costs.
While rejecting the applications may not seem unreasonable, it’s an important example of a minority group of governments getting an essential veto over a gTLD.
Under the rules of the 2012 application round, consensus GAC advice against an application is enough to kill it stone dead.
But the GAC had merely said (pdf):

The GAC recognizes that Religious terms are sensitive issues. Some GAC members have raised sensitivities on the applications that relate to Islamic terms, specifically .islam and .halal. The GAC members concerned have noted that the applications for .islam and .halal lack community involvement and support. It is the view of these GAC members that these applications should not proceed.

That’s non-consensus advice, which is expected to initiate bilateral engagement with ICANN’s board before a decision is made.
In the case of .persiangulf, also applied for by AGIT and also now rejected, the GAC didn’t even give non-consensus advice.
In fact, in its July 2013 Durban communique (pdf) is explicitly stated it “does not object to them proceeding”.
This appears to have been a not atypical GAC screw-up. The minutes of the Durban meeting, published months later, showed that the Gulf Cooperation Council states had in fact objected — there’s a bit of a dispute in that part of the world about whether it’s the “Persian Gulf” or “Arabian Gulf” — so the GAC would have been within its rights to publish non-consensus advice.
This all came out when the GCC filed its own IRP against ICANN, which it won.
The IRP panel in that case ordered ICANN to outright reject .persiangulf. Two years later, it now has.
While the three gTLDs in question are now going into “Will Not Proceed” status, that may not be the end of the story. One “Will Not Proceed” applicant, DotConnectAfrica, has taken ICANN to court in the US over its .africa application.