Latest news of the domain name industry

Recent Posts

Nominet drops libel lawsuit against domain blogger

Kevin Murphy, November 28, 2013, Domain Policy

UK registry Nominet has withdrawn its lawsuit against a domainer who had allegedly published “defamatory” remarks about CEO Lesley Cowley on his blog.
The defamation complaint was filed against Graeme Wingate over his blog Avoid.co.uk in January.
Nominet said yesterday that it “continues to refute entirely the untrue allegations made” on the site, which focuses on Cowley’s “dishonest” behavior surrounding Direct.uk and the ongoing controversy related to the 2008 board-level scandal and subsequent employment tribunal of former policy chief Emily Taylor.
Cowley said in a statement:

With a major programme of work underway to transform the .uk namespace, this action is now an unwelcome distraction. I refute the allegations entirely, but recognise that a far better use of the team’s time and energy is to focus on steering Nominet safely through a period of unprecedented change.

Nominet will pay Wingate’s costs.
It’s difficult to see this as anything other than a win for Wingate, who has continued to blog throughout the legal proceedings.
Wingate stood unsuccessfully for a seat on Nominet’s board of directors this year, alongside fellow Nominet critic Lucien Taylor, husband to Emily.

Why ICANN should stop taking the “Malvinas” issue seriously [RANT]

Kevin Murphy, November 24, 2013, Domain Policy

Here in the UK, we have something not very nice called the British National Party.
It’s a perfectly legal political party but, as the name may suggest, it has an overtly racist manifesto, garners few votes, and holds next to no power.
Voting BNP is frowned upon in polite company. Don’t expect too many dinner party invitations if you’re a supporter. It’s even legal here for employers to discriminate against card-carrying members.
The most unpleasant manifesto promise of the BNP is to “encourage the voluntary resettlement” of “immigrants”.
Britain, the BNP says, should be for its “indigenous people”, which it has described as “the people whose ancestors were the earliest settlers here after the last great Ice Age”.
That’s about 10,000 years ago. It’s basically the BNP’s way of rationalizing its racism with a cut-off point for what constitutes an “immigrant” that falls well before anyone with brown skin showed up.
None of this has anything to do with domain names, of course.
I only mention the BNP because its ludicrous views always spring to my mind whenever I hear an Argentinian activist raise the issue of the Falkland Islands at an ICANN meeting.
This happened quite a lot at the Public Forum of the ICANN 48 meeting in Buenos Aires, Argentina last Thursday.
It wasn’t the first time the Falklands have been discussed at an ICANN meeting but, on home turf, many locals who would not otherwise consider attending decided to show up to make their views known.
Argentinians call the Falklands archipelago, a British Overseas Territory situated in the southern Atlantic about 500km to the east of Argentina, the “Malvinas”.
Originally settled by France in the late 18th century, Britain has controlled the islands more or less continuously since 1834 and at intervals as far back as 1765, before Argentina existed.
Spain was in charge for a few decades from 1767 and then Argentina, after its independence, had a hold for a few years from 1829.
The only time Argentina has had a claim recently was during a two-month period in 1982, when Argentina invaded, starting a pointless war that claimed the lives of 255 British and 649 Argentinian service personnel, wounding a few thousand more.
In case this history lesson is new to you, I should point out that the Falklands are not and have never in living memory been in any way “occupied” by the UK.
The islanders are all British citizens and have the right of self-determination: they want to be British. According to the 2013 electoral roll, only 18 Argentinians live there, of a population of almost 3,000.
So it really boils my piss when I have to listen to Argentinians take to the mic at ICANN meetings to demand — demand — that ICANN transfers the Falklands ccTLD, .fk, to Argentina’s ccTLD operator, Nic.ar.
It turns my piss to steam when members of the ICANN board of directors humor these demands — vowing to take their concerns seriously or, even worse, agreeing with the use of terms like “occupation”.
This happened quite a lot on Thursday.
The ring-leader of the Argentine position is a guy called Sergio Salinas Porto. He’s president of Internauta Argentina, an organization of Argentinian internet users.
He seems to be a bit of a one-trick pony when it comes to public statements at ICANN meetings. The Latino Paul Foody, maybe. It’s possible that I’m giving him more credibility than he deserves.
He made similar demands at the ICANN meetings in Senegal in 2011 and Costa Rica last year. This time, however, he seems to have managed to drag some of his supporters with him.
The real-time interpretation provided by ICANN is not good enough to quote from directly at any length, but Internauta published its list of demands on its web site after the Public Forum. Among them (machine-translated from the original Spanish):

That the Argentine authorities (legal and technical secretariat – NIC.ar) will deliver the administration of ccTLDs .fk and .gs.
That all ccTLDs involving debate on issues of sovereignty and further promote colonialist acts or harboring or see these acts are protected from any administrative or factual act by ICANN are reviewed.

It also wants the Falklands referred to as the “Malvinas”, alongside “Falklands”, in ICANN documentation, and for .fk to fall into the Latin-American, rather than European, ICANN region.
But the key demand here is that control of a ccTLD that is currently delegated to a territory’s government — the Falkland Islands Government in this case — is transferred to the government of another country, based on emotive arguments such as “occupation” and “colonialism”.
At the mic, Salinas Porto reiterated these points almost word for word, judging by the ICANN interpreter’s translation — asking for the redelegation and using the same emotive arguments.
The demand was restated by multiple Argentinian commenters.
It was restated so many times that session moderator Bertrand de La Chappelle — who had graciously allowed Salinas Porto to jump to the front of the queue for the mic — took no small amount of flak from Internauta’s supporters for trying to hurry people along in the interests of timing.
One talked of “a dark and colonial power”, another talked of “decolonization”, one said he felt “invaded” by ICANN, a fourth said that “the Malvinas islands were taken by a colonial power by force”.
This is pure chutzpah.
It may be true that the Falklands were seized militarily by Britain. My history is not good enough to pass comment. Whatever happened, it was 180 years ago. Everyone involved is long dead.
Argentina indisputably seized the islands militarily during my lifetime. The records on this are pretty good. Living servicemen on both sides today bear the physical and emotional scars of Argentina’s folly.
Now consider that Argentina was among a coalition of Latin American nations that recently used the Governmental Advisory Committee to kill off the application from Patagonia Inc for the new gTLD .patagonia.
That was based on the governments’ claims that Patagonia — a region that covers areas of Argentina and Chile — should be a protected term in the domain name system. They have sovereignty, they claim.
Yet the Patagonia region was claimed by Argentina during the so-called “Conquest of the Desert”, an act of “colonization” that involved the “genocide” of over 1,000 indigenous people and dislocation of 15,000 more. That’s even more people than killed in 1982.
And Argentina did this act of colonization in 1870, three decades after the British took over the Falklands, which had no indigenous peoples (if you’re not counting the penguins).
If there’s a serious question about the ownership of .fk, shouldn’t the same logic should apply to .patagonia? Argentina can’t have it both ways, can it?
If the cut-off point for ownership of a territory is pre-1834, then Argentina can have no claim over .patagonia.
It’s a ludicrous thing to say, I know. I can barely believe I’m making the argument, it’s so silly. I feel almost Amish, or BNP, or one of the Conkies, to try to use an arbitrary cut-off date like that.
That’s probably why nobody from the UK took the mic at the ICANN Public Forum on Thursday to respond to Salinas Porto and Internauta’s supporters.
Maybe they didn’t want to provide oxygen to the illusion that there is a real debate here (in which case they’re smarter than me), or maybe they were far too polite to risk insulting their host nation by joining in on the trivialization of a political conflict that has resulted in the death and maiming of so many (in which case I’m embarrassing myself here).
But at least three members of the ICANN board did address the issue, vowing to treat the issue seriously and therefore compelling me to respond, regardless.
Notably, CEO Fadi Chehade, who grew up in Beirut, Lebanon, said it was a “very worthy question”, adding:

This was a chance for us to hear your views and appreciate your feelings about this. I must tell you on a personal basis, unlike living the history of colonialism I lived under a colonizer, personally, so I’m personally familiar with how you feel. But this is a very serious matter that requires some review and some thinking. I can assure you that we have listened to you and we will take your input as great learning for us.

Now, it’s quite possible that this was just the latest instance of Chehade “doing a Chehade” and telling his perceived audience what he perceived they wanted to hear.
His predecessor, Rod Beckstrom, was similarly accommodating to Salinas Porto during the Costa Rica meeting in 2012.
Chehade did not actually commit ICANN to address the issue.
But the Brits were in the audience too. And I think it’s fair to say that when we hear Argentinians bang on about the “Malvinas” — and we hear the ICANN board pay them heed — we either a) get angry or b) shake our heads and tut.
At the start of this article I compared the Argentinian argument to the BNP. To avoid doubt, I’m not saying that it’s racist. I could not begin to construct such an argument. I am saying that it’s silly, and probably based more on Argentinian nationalism than it is on any deficiencies in ICANN policy.
When ICANN in future responds to Argentinian arguments about the Falklands, these are some things to bear in mind:

  • ICANN does not decide, and is not qualified to decide, what arbitrary subdivisions of our planet are or are not worthy of a ccTLD delegation.
  • ICANN long ago decided to take its cues from the International Standards Organization, which in turn looks to the United Nations, when assembling its list of ccTLD identifiers.
  • ICANN, via its IANA department, always pays attention to the wishes of the local populace when it decides whether to redelegate a ccTLD to a new operator.

These three bullet points are the only things an ICANN director needs to know when responding to anyone who uses the word “Malvinas” in a Public Forum statement.
“Taking it seriously” should only be an option if you’re trying to be polite.

GAC gives ICANN a way out on IGO acronyms

Kevin Murphy, November 22, 2013, Domain Policy

The ICANN Governmental Advisory Committee has reiterated its call for the protection of intergovernmental organization acronyms in the new gTLD program, but seems to have given ICANN a way to avoid a nasty confrontation.
In its official Communique from the just-concluded meeting in Buenos Aires, Argentina, the GAC provided the following advice concerning IGOs:

The GAC, together with IGOs, remains committed to continuing the dialogue with NGPC [ICANN’s New gTLD Program Committee] on finalising the modalities for permanent protection of IGO acronyms at the second level, by putting in place a mechanism which would:
1. provide for a permanent system of notifications to both the potential registrant and the relevant IGO as to a possible conflict if a potential registrant seeks to register a domain name matching the acronym of that IGO;
2. allow the IGO a timely opportunity to effectively prevent potential misuse and confusion;
3. allow for a final and binding determination by an independent third party in order to resolve any disagreement between an IGO and a potential registrant; and
4. be at no cost or of a nominal cost only to the IGO.

This seems to be a departure from the GAC’s its Durban Communique, in which it had demanded “preventative” measures be put in place to stop third parties registering IGO acronyms.
As we reported earlier this week, the GNSO Council unanimously approved a resolution telling ICANN to remove IGO acronyms from existing block-lists, something the GAC had been demanding.
Now, it seems that ICANN has been given a relatively simple and less confrontational way of accepting the GAC’s watered-down advice.
The Trademark Claims alerts service and Uniform Rapid Suspension dispute resolution process combined would, by my reading, tick all four of the GAC’s boxes.
IGO acronyms do not currently qualify for either, because they’re not trademarks, but if ICANN can figure out a way to allow these strings into the Trademark Clearinghouse, it can probably give the GAC what it wants.
In my view, such a move wouldn’t trample on anyone else’s rights, it would not represent the kind of overkill the GAC originally wanted, nor would it be in conflict with the GNSO’s consensus resolution (which seems to envisage a future in which these acronyms get TMCH protection).
ICANN may have avoided the sticky situation I pondered earlier this week.

ICANN in a sticky spot as GNSO overrules GAC on block-lists

Kevin Murphy, November 20, 2013, Domain Policy

ICANN may have to decide which of its babies it loves the most — the GNSO or the GAC — after receiving conflicting marching orders on a controversial rights protection issue.
Essentially, the GAC has previously told ICANN to protect a bunch of acronyms representing international organizations — and ICANN did — but the GNSO today told ICANN to un-protect them.
The GNSO Council this afternoon passed a resolution to the effect that the acronyms of IGOs and international non-governmental organizations (INGOs) should not be blocked in new gTLDs.
This conflicts directly with the Governmental Advisory Committee’s longstanding advice, which states that IGOs should have their names and acronyms reserved in all new gTLDs.
The Council’s resolution was passed unanimously, enjoying the support of registries, registrars, non-commercial users, intellectual property interests… everyone.
It came at the end of a Policy Development Process that kicked off in 2011 after the GAC demanded that the International Olympic Committee and Red Cross/Red Crescent should have their names protected.
The PDP working group’s remit was later expanded to address new demands from the GAC, along with a UN-led coalition of IGOs, to also protect IGO and INGO names and acronyms.
The outcome of the PDP, which had most of its recommendations approved by the GNSO Council today, was to give the GAC most of what it wanted — but not everything.
The exact matches of the full IOC, RC/RC, IGO and INGO names should now become permanently ineligible for delegation as gTLDs. The same strings will also be eligible for the Trademark Claims service at the second level.
But, crucially, the GNSO Council has voted to not protect the acronyms of these organizations. Part of the lengthy resolution — apparently the longest the Council ever voted on — reads:

At the Top Level, Acronyms of the RCRC, IOC, IGOs and INGOs under consideration in this PDP shall not be considered as “Strings Ineligible for Delegation”; and
At the Second level, Acronyms of the RCRC, IOC, IGOs and INGO under consideration in this PDP shall not be withheld from registration. For the current round of New gTLDs, the temporary protections extended to the acronyms subject to this recommendation shall be removed from the Reserved Names List in Specification 5 of the New gTLD Registry Agreement.

The list of reserved names in Spec 5, which all new gTLD registries must block from launch, can be found here. The GNSO has basically told ICANN to remove the acronyms from it.
This means hundreds of strings like “who” and “idea” (which would have been reserved for the World Health Organization and the Institute for Development and Electoral Assistance respectively) should now become available to new gTLD registries to sell or otherwise allocate.
I say “should”, because the Council’s resolution still needs to be approved by the ICANN board before it becomes a full Consensus Policy, and to do so the board will have to reject (or reinterpret) the GAC’s advice.
The GAC, as of its last formal Communique, seemed to be of the opinion that it was going to receive all the protections that it asked for.
It has told ICANN for the last year that “IGOs are in an objectively different category to other rights holders” and that “their identifiers (both their names and their acronyms) need preventative protection”
It said in its advice from the Durban meeting (pdf) three months ago:

The GAC understands that the ICANN Board, further to its previous assurances, is prepared to fully implement GAC advice; an outstanding matter to be finalized is the practical and effective implementation of the permanent preventative protection of IGO acronyms at the second level.

The key word here seems to be “preventative”. Under the resolution passed by the GNSO Council today, IGO acronyms would be allowed to enter the Trademark Clearinghouse and participate in the Trademark Claims service, but Claims does not prevent anyone from registering a matching domain.
It’s looking like the ICANN board is going to have to make a call — does it accept the GAC advice, or does it accept the unanimous consensus position of the GNSO?
Given that much of ICANN 48 here in Buenos Aires this week has been a saccharine love-in for the “multistakeholder process”, it’s difficult to imagine a scenario in which the GNSO Council does not win out.

Kleinwächter joins ICANN board

Kevin Murphy, November 16, 2013, Domain Policy

Internet governance expert Wolfgang Kleinwächter has joined ICANN’s board of directors with immediate effect.
Kleinwächter is the emergency replacement for Judith Vazquez, who quit with no explanation last month. He’ll carry out Vazquez’s duties until her term was due to end, a year from now.
He’s a rare insider appointment from the Nominating Committee, which regularly looks outside of ICANN for its board expertise.
He has been involved with ICANN since almost the beginning, and currently sits on the GNSO Council (a term due to expire this week) as a representative of the Non-Commercial Users Constituency.
He’s a German national and currently employed by the University of Aarhus, Denmark, where he teaches on the subjection of internet policy and regulation.
He also has experience in UN-related policy projects such as the World Summit on the Information Society and the Internet Governance Forum.

Will ICANN be forced to reject Islamic gTLDs?

Kevin Murphy, November 14, 2013, Domain Policy

The Organisation of Islamic Cooperation has condemned applications for .islam and .halal gTLDs filed by a Turkish company, despite the applicant recently fighting off an OIC-backed objection.
Claiming to represent the world’s 1.6 billion Muslims, the OIC expressed in a November 4 letter to ICANN and its Governmental Advisory Committee:

official opposition of the Member States of the OIC towards probable authorization by the GAC allowing use of these new gTLDs .Islam and .Halal by any entity not representing the collective voice of the Muslim people.

The letter seems to have been sent in response to the GAC’s current stalemate on these two TLDs, which were applied for, uncontested, by Istanbul-based Asia Green IT System.
At the ICANN meeting in Beijing six months ago, the GAC was unable to reach a consensus to object to .islam and .halal, instead merely noting:

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.

As a non-consensus objection, there’s no presumption that the ICANN board of directors should reject the applications.
And it seems that the New gTLD Program Committee, which carries board powers, has been deliberately ignoring the controversy pending the resolution of two formal Community Objections.
The objections were filed by the United Arab Emirates’ Telecommunications Regulatory Authority, the UAE’s ccTLD registry operator, with backing (it claimed) from the OIC.
But the TRA lost both objections, partly because the wishy-washy government-speak OIC letter it submitted in evidence failed to convince International Chamber of Commerce adjudicator Bernardo Cremades that it really did have that OIC support.
Whether the OIC really does object to Asia Green’s bids now seems beyond dispute.
In fact, the organization says it intends to pass a formal resolution containing its position on Islamic gTLDs during its Council of Foreign Ministers meeting in early December.
ICANN chair Steve Crocker has now asked the GAC to provide further guidance before it decides whether to accept or reject the two bids.
Given that a single governmental hold-out in the GAC would be enough to kill any chance of consensus, the OIC may be right to presuppose that the GAC will not fully object.
That would leave ICANN in the tricky position, for the first time in this application round, of having to decide the fate of a gTLD without the cover of a uniform international objection.
Would it reject .islam, opening the door for other gTLDs to be killed off by minority government concerns? Or would it approve the controversial strings, potentially pissing off the Muslim world?
I expect there’s at least one NGPC member — Lebanese-born Christian ICANN CEO Fadi Chehade — who would certainly not relish having to cast a vote on such a resolution.

Applicants call for new gTLD objections appeals process

Kevin Murphy, November 6, 2013, Domain Policy

Twelve new gTLD applicants, representing many dozens of applications, have called on ICANN to create an appeals process for when Community Objections have debatable outcomes.
Writing to ICANN and the International Chamber of Commerce this week, the applicants focus on the recent decision in the .sport case, which they said proves that ICC panelists don’t fully understand the Community Objection policy as laid out in ICANN’s Applicant Guidebook.
The letter points to five “glaring errors” in the “fatally flawed” .sport decision, in which Olympics-backed applicant SportAccord prevailed over Famous Four Media’s competing application.
The signatories — which include Radix, United TLD, Donuts, Famous Four, TLDH and others — say that the ICC panelist simply assumed SportAccord represented the “sport” community and failed to pinpoint any “likelihood of material detriment” that would be caused by Famous Four’s .sport going ahead.
It seems to me that the latter arguments are much more well-founded.
While the letter tries to pick holes in the panelist’s finding that SportAccord represents enough of the “sport” community to be able to win the objection, the arguments are pretty tenuous.
The applicants use an definition of “community” found elsewhere in the Guidebook, for example, to attempt to show that the panelist failed to follow the guidelines for establishing a community in a Community Objection.
The panelist’s actual ruling uses the definition of “community” from the relevant part of the Guidebook and seems to follow it fairly closely. The applicants make a poor job of questioning his logic.
However, on “detriment”, the letter seems to be on much firmer ground.
It argues that the panelist deliberately lowered the bar from “likelihood of material detriment” to “possibility of material detriment” in order to hand SportAccord a victory.
The letter states:

If the Expert’s current logic is followed, every application, including the Objector’s own application, creates “possible” damage. In this case, an allegation of material detriment against any application would be upheld because there is future “possible” damage.

It also makes reference to the fact that the panelist appears to in many cases have been weighing the Famous Four application against SportAccord’s, which was not his job.
It reads in part: “The Expert did not identify a single objectionable or lacking aspect in the application that creates a likelihood of material detriment.”
The applicants call on ICANN to immediately create an appeals mechanism for Community Objections, and to ensure that ICC panelists are given training before making any more decisions.
Here’s the full list of signatories: Radix, United TLD, DotClub Domains, Top Level Design, Donuts, Top Level Domain Holdings, Priver Nivel, Fegistry, Employ Media, Famous Four Media, Merchant Law Group, DotStrategy.

ICANN makes GAC’s Category 1 new gTLD advice less stupid

Kevin Murphy, November 6, 2013, Domain Policy

After six months, ICANN is finally giving its Governmental Advisory Committee what it wants. Kinda.
The New gTLD Program Committee has quietly sent its plan to implement the GAC’s so-called “Category 1” advice on new gTLDs, which called for regulated gTLDs where applicants had applied for open namespaces.
But it’s rewritten the advice in such a way that it’s unlikely to win many fans in either camp, causing headaches for applicants while also falling short of giving the GAC everything it wanted.
In a letter to GAC chair Heather Dryden, ICANN chair Steve Crocker laid out the NGPC’s plan.
The Category 1 advice, which comprised eight “safeguards” applicable to at least 386 gTLD applications for 174 unique strings, has been rewritten, making it a little more palatable to the majority of applicants.
The list of strings has also been cut in two, with the 42 strings considered most often linked to highly regulated industries taking the brunt of the regulation.
These 42 may or may not find their business models killed off, but are certainly facing more friction as a result of the NGPC’s decision:

.abogado, .attorney, .autoinsurance, .bank, .banque, .bet, .bingo, .carinsurance, .casino, .charity (and Chinese IDN), .corp, .cpa, .creditcard, .creditunion, .dds, .dentist, .gmbh, .hospital, .inc, .insurance, .ira, .lawyer., .lifeinsurance, .llc, .llp, .lotto, .ltd, .ltda, .medical, .mutualfunds, .mutuelle, .pharmacy, .poker, .sal, .sarl, .spreadbetting, .srl, .surgery, .university, .vermogensberater, .versicherung

Each of these registries is going to have to sign up to eight new mandatory Public Interest Commitments, obliging them to engage with the industries associated with their strings, among other things.
And while the GAC wanted these strings to be limited to credential-holding members of those industries, ICANN seems to be giving the applicants much more implementation wiggle room.
The GAC had originally called for all 386 Category 1 registries to:

Establish a working relationship with the relevant regulatory, or industry self-regulatory, bodies, including developing a strategy to mitigate as much as possible the risks of fraudulent, and other illegal, activities.

But ICANN has reinterpreted the advice to make it a bit less onerous on applicants. It will also only affect 42 strings. The advice, now rewritten as a PIC, reads:

Registry operators will proactively create a clear pathway for the creation of a working relationship with the relevant regulatory or industry self-regulatory bodies by publicizing a point of contact and inviting such bodies to establish a channel of communication, including for the purpose of facilitating the development of a strategy to mitigate the risks of fraudulent and other illegal activities.

Does that PIC mean registries will actually be obliged to listen to or give policy-making power to the relevant industries on a formal basis? It’s ambiguous enough that the answer might easily be no.
The GAC had also called for some Category 1 gTLDs to become restricted to card-carrying members of the industry or industries the strings relate to, saying in Beijing:

At the time of registration, the registry operator must verify and validate the registrants’ authorisations, charters, licenses and/or other related credentials for participation in that sector.

ICANN has basically rejected that advice, replacing it instead with the much more agreeable (to registries) text:

Registry operators will include a provision in their Registry-Registrar Agreements that requires Registrars to include in their Registration Agreements a provision requiring a representation that the Registrant possesses any necessary authorisations, charters, licenses and/or other related credentials for participation in the sector associated with the Registry TLD string.

You’ll notice that the ICANN version does not require credentials to be provided at the point of registration. In fact, the PIC seems to require nothing more than a check-box that the registrant must click.
This is obviously tolerably good news for applicants that had proposed unrestricted policies for their gTLDs — they no longer face the kiss of death in the registrar channel that the GAC’s version would have created — but let’s not pretend it’s what the GAC had asked for.
Again, it only applies to the 42 strings ICANN has identified as particularly broadly regulated.
These registries are not getting an easy ride, however. They will have to enforce a post-registration regime of verifying credentials in response to complaints. The new ICANN PIC reads:

If a Registry Operator receives a complaint expressing doubt with regard to the authenticity of licenses or credentials, Registry Operators should consult with relevant national supervisory authorities, or their equivalents regarding the authenticity.

It’s implied, but not stated, that uncredentialed registrants should lose their domains. Again, the ICANN version of the GAC advice may be less of a nightmare to implement, but it’s still very vague indeed.
For any Category 1 applicant that is not on the sub-list of 42 sensitive strings, there will be three new PICs to adopt.
These all instruct the registry to require registrars to get registrants to agree to abide by “all applicable laws”. It’s the kind of stuff that you usually find in registration agreements anyway, and doesn’t appear at first look to present any hugely problems for registries or registrars.
Overall, ICANN seems to have done a pretty good job of making the Category 1 advice less onerous, and applicable to fewer applicants, than the GAC originally wanted.
But applicants for the 42 strings most heavily affected still face some vague contractual language and the very real possibility of industry complaints in future.

Is ICANN ready to start rejecting some new gTLDs?

Kevin Murphy, November 4, 2013, Domain Policy

Is ICANN getting ready to give marching orders to new gTLD applicants? It seems likely given recent hints out of LA.
Currently, of the original 1,930 new gTLD applications, 125 have been withdrawn but only two or three have been rejected.
GCC’s .gcc and DotConnectAfrica’s .africa are both “Not Approved” while Nameshop’s .idn failed to pass its applicant support program tests and seems to have been put aside for this round.
But there are at least 22 active applications that are due to be hit with the ban hammer, by my reckoning. That’s not including those that may be killed off by Governmental Advisory Committee advice.
First, there are seven bids (so far) that have failed Community Objections or Legal Rights Objections filed against them, or have lost String Confusion Objections filed by existing TLD operators.
Applications such as Ralph Lauren’s .polo, Dish DBS’ .direct and Demand Media’s .cam have fallen foul of these three objection types, respectively.
Under the Applicant Guidebook rules, these applications are not allowed to proceed.
There are also 10 active applications for .home and five for .corp, two gTLD strings ICANN has said it will not approve due to their substantially higher risk of causing name collisions.
(Personally, I think these applicants should get full refunds — ICANN screwed up by not doing its homework on name collisions before opening the application window last year).
So far, ICANN seems to have been waiting for applicants to withdraw, rather than initiating a formal rejection.
But none of them actually have withdrawn.
The International Union of Architects, which won a Community Objection against Donuts over .architect in September, has noticed this too, and recently wrote to ICANN to find out what was going on.
Responding October 31, Generic Domains Division president Akram Atallah wrote (with my emphasis):

as a result of the objection determination, we have updated the status of the objection on the .ARCHITECT application to “Objector Prevailed” on the Objection Determinations page (http://newgtlds.icann.org/en/program-­‐status/odr/determination) of the New gTLD microsite. Additionally, we will be updating the overall status of this application on the New gTLD microsite (https://gtldresult.icann.org/application-­‐result/applicationstatus) pursuant to Section 1.1.2.9 of the Applicant Guidebook in the near future.

This suggests either a “Not Approved” status for .architect, or a new status we haven’t seen before, such as “Lost Objection”.
So could, for example, Demand Media’s .cam application be rejected? Demand lost a SCO filed by Verisign, but its two competitors for the string prevailed in virtually identical cases.
Would it be fair to reject one but not the others, without any kind of ICANN review or oversight?
Last week at the newdomains.org conference in Munich, I asked Atallah a question during a panel discussion about consistency in the new gTLD program, with reference to objections.
I was on stage and not taking notes, but my recollection is that he offered a not at all reluctant defense of subjectivity in panelists’ decision-making.
It was certainly my impression that ICANN is less troubled by inconsistent rulings than the applicants are.
In the .architect case, Atallah told the UIA that ICANN intends to implement objection rulings, writing:

ICANN will, of course, honor all panel decisions regarding objection determinations, unless directed to do otherwise by some action, for example, by virtue of Reconsideration Requests or other accountability mechanisms or action of the ICANN Board of Directors. To our knowledge, Spring Frostbite [Donuts] has not filed a Reconsideration Request or invoked an Independent Review Process with respect to this objection determination regarding the .ARCHITECT string.

Contention questions remain as ICANN reveals “last-resort” auction rules

Kevin Murphy, November 2, 2013, Domain Policy

ICANN has published a first draft of the rules for its “last resort” new gTLD auctions, but they do not yet address the contention created by controversial objection rulings.
The organization has hired Power Auctions to write the rules and manage the auctions.
They’ve agreed upon an “ascending clock” style, where the auctioneer sets upper and lower limits for each round of bidding. Applicants must bid within that range or withdraw — they cannot skip rounds.
A bid at the top of the round’s range is a “continue bid” that sees the applicant through to the next round. Lower, and it’s an “exit bid” that will count as a withdrawal if anyone else submits a higher bid.
When all but one applicants have withdrawn, the remaining applicant gets the gTLD, paying ICANN an amount equal to the highest exit bid submitted by a competitor in that round.
Unlike the private auctions that have been taking place for the last few months, losing applicants walk away empty-handed apart from a small application fee refund from ICANN.
Applicants’ bidding limits will be determined by their deposits. If your deposit is under $2 million, your bid ceiling is 10x your deposit, but if you put down $2 million deposit or more, there would be no upper limit.
It all seems fairly straightforward for direct, single-string contention sets.
Where it starts to get fuzzy is when you start thinking about “indirect” contention and multiple, connected auctions running simultaneously.
It’s a little tricky to explain indirect contention without diagrams, but let’s try an example, using .shop, instead.
There are nine applicants for .shop. These are all in direct contention with each other.
But one .shop applicant, Commercial Connect, won objections against applicants for “similar” strings — Amazon’s .通販 and Donuts’ .shopping.
Assuming ICANN upholds these objection findings, which seems increasingly likely given recent statements from generic domains president Akram Atallah, both .shopping and .通販 will be in direct contention with Commercial Connect’s .shop and in indirect contention with all the other .shop applications.
Complicating matters, while Amazon’s .通販 is uncontested, Donuts’ .shopping is also in direct contention with Uniregistry, which applied for the same string but did not lose an objection.
It will be quite possible for .shop, .shopping and .通販 to all be delegated, but only if Commercial Connect loses the auction for .shop or otherwise withdraws from the race.
The auction materials published by ICANN today are a bit fuzzy on what happens when indirect contention is in play. On the one hand it suggests that multiple applications can win an auction:

When a sufficient number of applications have exited the auction process, so that the remaining application(s) are no longer in contention with one another, and all the relevant string(s) can be delegated as gTLDs, the auction will be deemed concluded.

But the rules also say:

the rules set forth within this document will assume that there is direct contention only, a condition that holds for the substantial majority of Auctions. In the event that an Auction will include a Contention Set that does not satisfy this condition, ICANN or the Auction Manager may issue an Addendum to the Auction Rules to address indirect contention.

While it seems that the auctions for .shop, .shopping and .通販 would have to take place simultaneously due to the indirect contention, some weird edge cases have me confused.
ICANN’s list of indirect contention sets is currently empty.
It’s not at all clear to me yet whether, for example, Donuts’ .shopping application would be placed in the .shop auction or whether two separate auctions would be conducted.
That could be important because deposits — and therefore bidding limits — are specific to each auction.
Would Donuts have to stump up $4 million in deposits, rather than $2 million, just in order to win one string? Would Commercial Connect have to put down $6 million for three auctions for one string?
If the two .shopping applicants are placed in the .shop auction, and Commercial Connect withdraws first, would Donuts have to carry on bidding against the other eight .shop applicants, just to win .shopping?
I’m guessing not, but the rules don’t seem to envisage this scenario yet.
What about Uniregistry, which has an application for .shopping? Will ICANN force it into the .shop auction even though it’s not in direct contention with any .shop applicant?
If .shop and .shopping are two separate auctions, what happens if Commercial Connect withdraws from the .shop auction but not the .shopping auction? It would have little to gain — not being a .shopping applicant — but could it artificially bid up the .shopping set?
And could how these auctions play out have an impact on companies’ objection strategies in future rounds?
If Uniregistry, say, finds itself at a disadvantage because its .shopping competitor Donuts was objected to by Commercial Connect, maybe it would make sense for an entire direct contention set to cooperate to fight off an objection from an applicant for a similar string.
And if Commercial Connect finds itself financially hobbled by having to participate in three auctions rather than one, maybe that will discourage applicants from filing massive amounts of objections in future.
And another thing…

If you’re as confused as I am, ICANN is running a webinar November 7 at 2200 UTC in order to answer (hopefully) these kinds of questions.