Registrars and ICANN hit impasse on new RAA

ICANN and its accredited domain name registrars have hit a brick wall in their long-running contract negotiations, after ICANN demanded the right to unilaterally amend the deal in future.
Documents published by ICANN this morning reveal that the two sides have reached agreement on almost all of their previous sticking points — including the extremely thorny issue of Whois verification — but have run into some fundamental, eleventh-hour disagreements.
As we’ve been reporting for the last couple of weeks, the big unresolved issue is ICANN’s unilateral right to amend the Registrar Accreditation Agreement in future, which registrars absolutely hate.
Death of the GNSO? Again?
The text of that proposed change has today been revealed to be identical to the text ICANN wants to insert into the Registry Agreement that all new gTLD registries must sign.
It gives ICANN’s board of directors the right, by two-thirds majority, to make essentially any changes they want to the RA and RAA in future, with minimal justification.
Registrars are just as livid about this as new gTLD applicants are.
The proposed change appears to be one of those introduced last month that ICANN said “[stems] from the call by ICANN’s CEO, Fadi Chehadé, to work to improve the image of the domain industry and to protect registrants”.
Chehadé has been on the road for the last couple of months trying to raise ICANN’s profile in various stakeholder groups in the private and public sectors around the world.
One of the memes he’s impressed upon contracted parties and others is that people don’t trust the domain name industry. Part of ICANN’s solution, it seems, is to grant its board more powers over registries and registrars.
But the Registrars Stakeholder Group reckons unilateral amendments would torpedo the multistakeholder process by emasculating the Generic Names Supporting Organization. It said:

The effect of such a clause in the primary agreements between ICANN and its commercial stakeholders would be devastating to the bottom-up, multi-stakeholder model.
First, it will effectively mean the end of the GNSO’s PDP [Policy Development Process], as the Board will become the central arena for all controversial issues, not the community.
Second, it creates an imbalance of authority in the ICANN model, with no limits on the scope or frequency of unilateral amendments, and no protections for registrars and more important registrants.

That’s the biggest barrier to an agreement right now, and it’s one shared by the entire contracted parties constituency of ICANN. Expect fireworks in Beijing next month.
Friction over new gTLDs
Registrars and registries are also angry about the fact that ICANN wants to force registrars to adopt the 2013 RAA, even if their 2009 or 2001 deals are still active, if they want to sell new gTLDs.
RrSG secretary Michele Neylon of Blacknight told DI today that it looks like ICANN is trying to “drive a wedge” between registrars and registries.
Here’s why:
ICANN is trying desperately to stick to its new gTLD program timetable, which will see it start signing Registry Agreements with new gTLD applicants in late April.
But it wants the base RA to include a clause obliging registries to only sell via registrars on the 2013 RAA.
Because the 2013 RAA is not yet finalized, registrars could potentially hold up the approval and delegation of new gTLDs if they don’t quickly agree to the changes ICANN wants.
According to Neylon, the documents released today have been published prematurely; with a little more time agreement could be reached on some of the remaining differences.
Again: expect fireworks in Beijing.
Whois records will be verified
But the new RAA is not all friction.
ICANN and registrars have finally come to agreement on important topics where there was previously sharp divergence.
Registrars have agreed to a new Whois Accuracy Program Specification that is a lot weaker than ICANN had, working from a blueprint laid out by governments and law enforcement agencies, first asked for.
Under the 2013 RAA signed-up registrars will have to start verifying certain elements of the contact information submitted by their registrants.
Notably, there’ll be a challenge-response mechanism for first-time registrants. Registrars will ask their customers to verify their email address or enter a code that has been sent to them via SMS text message or phone.
Note the “or” in that sentence. ICANN and law enforcement wanted registrars to do email “and” phone verification, but ICANN appears to have relented after months of registrars yapping about costs.
In future practice, because email verification is far easier and cheaper to implement, I’d be surprised if phone verification is used in anything but the rarest of cases.
Other data points will also be verified, but only to see that they conform to the correct formats.
Registrars will have to make sure that mailing addresses meet the Universal Postal Union standards, and that phone numbers conform to International Telecommunications Union formatting, for example.
They’ll also have to verify that the street address exists (if they have access to that data) but there will be no obligation to make sure that address and phone number actually belong to the registrant.
Registrants that provide patently false information that fails registrar verification will get 15 days to correct it or face the suspension of their domains.
ICANN wants registrars to also verify their customer records (which are usually different to the Whois records and, anecdotally, more accurate anyway) too, but registrars have so far not agreed to do so.
Taken as a whole, at first reading it’s difficult to see how the new Whois verification spec will do anything to prevent fast-turnover abuse such as phishing, but it may go a small way to help law enforcement investigate longer-term scams such as counterfeit goods sites.
The proposed 2013 RAA, along with more explanatory documents than you could possibly read in a coffee break is now open for public comment, with the reply period closing shortly after the Beijing meeting.

Go Daddy cozies up new gTLD players, drops its own .home and .casa bids

Go Daddy has changed tack in its new gTLD strategy, dropping its own applications and positioning itself strongly as a registry-neutral channel to market.
The company spent yesterday wooing new gTLD applicants at a specially convened meeting in its native Arizona; there were representatives from about half of the applied-for gTLDs in attendance.
But apart from the fact that Go Daddy has withdrawn its applications for .home and .casa — and symbolically dropped the “.com” from its logo — the company is playing its strategy pretty close to its chest.
Director of policy planning James Bladel told DI that the meeting was more about “starting a conversation” with registries, rather than laying out Go Daddy’s specific plans for new gTLDs.
The company will be a hugely important channel to market for many gTLDs, and competition for store-front space on the Go Daddy home page is expected to be fierce.
Existing big-volume “new” TLDs, such as .info and .co, can attribute much of their success to Go Daddy.
It’s responsible for well over half of all .info domains registered today and .CO Internet’s success to date can no doubt be attributed in no small part to its strong relationship with the company.
But Bladel would not be drawn on Go Daddy’s specific plans for the next wave of gTLDs.
While the company has a patent on a method of allocating shelf space via an Adsense-style bidding technology, Bladel said Go Daddy has not yet decided whether to use that system.
The company could also use other methods, algorithmic rather than commercial, for selecting which TLDs to display to users, such as geographic location, he said.
Another conversation that needs to happen relates to launch timing.
Ideas may include staggering launches to benefit from joint marketing efforts, or pooling launches into big-draw “launch day” events, Bladel speculated, noting that the company is more interested in hearing ideas from gTLD applicants right now.
While Go Daddy will continue to push its application for .godaddy dot-brand, with the loss of .home and .casa it will no longer be in the mass-market gTLD registry game.
Registry-neutral registrars may actually be a rarity in the new gTLD era.
eNom will certainly walk away with interests in more than a few gTLDs, directly and via its deal with Donuts. Tucows, Web.com and Directi will also have some, depending on contention set results.
Apart from Go Daddy, the only other top-ten registrars without their own gTLDs could be United and FastDomains.

ICANN to publish unfinished RAA tomorrow

ICANN will tomorrow publish for public comment a version of the 2013 Registrar Accreditation Agreement that accredited registrars have not yet agreed to.
CEO Fadi Chehade told a conference call of registries and new gTLD applicants as much this afternoon, causing the Registrars Stakeholder Group to immediately state that talks have not finished yet.
However, ICANN subsequently confirmed the plan to DI, clarifying that the documents it will publish tomorrow will highlight ongoing points of divergence between ICANN and the RrSG.
The posting will comprise documents with “competing text identified that shows the similarities and differences in position between ICANN and the Registrar [Negotiating Team”, ICANN said.
I believe that the publication has been set for tomorrow to allow ICANN to hit its public comment deadlines for the big Beijing public meeting next month.
The posting was apparently agreed to at a meeting between the registrars and ICANN on Friday.
While the two sides have come to agreement on most of the changes to the RAA, sticking points remain despite now-daily talks.
I understand that a proposed unilateral right of amendment in ICANN’s favor is currently a big barrier to final agreement.

ICANN to reveal Registrant Rights & Responsibilities (and here’s a draft copy)

ICANN is set to publish and start promoting a new Registrant Rights & Responsibilities charter at some point over the next couple of days, we hear.
The one-page document is set to become an important part of CEO Fadi Chehade’s plan to make the domain name industry appear more trustworthy and likable in the eyes of the internet-using public.
He first revealed the idea during a meeting with registries and registrars in Amsterdam last month.
An ICANN-commissioned study showed that people have a very low opinion of the industry, he told them.
The new document is designed to address some of those concerns.
While the charter may be presented as originating in the industry, it was first drafted by ICANN and we hear that some registrars have been somewhat reluctant to agree to it.
“It’s like when you’re a kid and your dad gives you a birthday card to sign for your mom,” one registrar told us.
The legalese-stricken document that ICANN originally presented to them over-stretched and could have carried legal exposure, they added.
DI has been sent of copy of what we’re told is a close-to-final draft of the document, which we understand is more agreeable to most registrars. We’ve pasted it below in full.

Registrants’ Rights and Responsibilities
Domain Name Registrants’ Rights:

1. Your domain name registration and any privacy services you may use in conjunction with it must be subject to a Registration Agreement with an ICANN Accredited Registrar.
   • You are entitled to review this Registration Agreement at any time, and download a copy for your records.
2. You are entitled to accurate and accessible information about:
   • The identity of your ICANN Accredited Registrar;
   • The identity of any privacy service provider affiliated with your Registrar;
   • Your Registrar’s terms and conditions, including pricing information, applicable to domain name registrations;
   • The terms and conditions, including pricing information, applicable to any privacy services offered by your Registrar;
   • The customer support services offered by your Registrar and the privacy services provider, and how to access them;
   • How to raise concerns and resolve disputes with your Registrar and any privacy services offered by them; and
   • Instructions that explain your Registrar’s processes for registering, managing, transferring, renewing, and restoring your domain name registrations, including through any privacy services made available by your Registrar.
3. You shall not be subject to false advertising or deceptive practices by your Registrar or though any privacy services made available by your Registrar. This includes deceptive notices, hidden fees, and any practices that are illegal under the consumer protection law of your residence.

Domain Name Registrants’ Responsibilities:

1. You must comply with the terms and conditions posted by your Registrar, including applicable policies from your Registrar, the Registry and ICANN.
2. You must review your Registrar’s current Registration Agreement, along with any updates.
3. You will assume sole responsibility for the registration and use of your domain name.
4. You must provide accurate information for publication in directories such as WHOIS, and promptly update this to reflect any changes.
5. You must respond to inquiries from your Registrar within fifteen (15) days, and keep your Registrar account data current. If you choose to have your domain name registration renew automatically, you must also keep your payment information current.

It draws on changes ICANN and registrars have agreed to in the 2013 (hopefully) Registrar Accreditation Agreement, such as registrar commitments to provide basic information about themselves.
As for the 2013 RAA itself, we hear that ICANN wants to present a final version to its board of directors for approval during its public meeting in Beijing in early April.
That would mean opening it up for public comment next week, but registrars and ICANN have not yet agreed to a final draft for publication, despite now-daily negotiation meetings.
The major sticking point, we gather, is an amendment that would give ICANN a unilateral right to change the contract in future — similar to the proposed gTLD Registry Agreement provision currently causing a shitstorm in the new gTLD applicant community.
There’s also controversy about the fact that ICANN wants to restrict new gTLDs to only registrars that sign the new RAA, which is designed to be a carrot to get them to sign up even if their 2009/2001 RAAs are still active.

Demand Media mulls eNom spin-off

Are the synergies between domain name registrars and content farms not all they were cracked up to be?
That’s a question emerging from last night’s news that Demand Media is planning to spin off its domains business, which includes number-two registrar eNom, into a separate public company.
The company, reporting its fourth-quarter earnings, said that it’s looking into the possibility of breaking up content and domains into two separately-owned businesses.
The new domain company would comprise eNom (wholesale) and Name.com (retail) on the registrar side, any new gTLDs Demand manages to win, the formative registry back-end business, and its stake in NameJet.
“We believe that a separation of the two independent companies will better position each business to pursue their increasingly diverse strategic priorities and opportunities,” CEO Richard Rosenblatt told analysts.
The spin-off would have revenue of over $150 million a year and margins of almost 20%, chief financial officer Mel Tang added.
Rosenblatt said new gTLDs will be “transformative” for the domain industry, saying that Google, Amazon and dot-brands will help grow consumer awareness of the world beyond .com.
Demand has filed 26 new gTLD applications of its own, and has 50-50 rights to 107 more with Donuts.
Previously, Demand has stated in regulatory filings that it used data gathered from domain name lookups to create ideas for the content farm side of its business. It’s not clear if that would continue after a split.

ICANN terminates three registrars

ICANN has pulled the plug on three accredited domain name registrars, saying they all failed to comply with an audit.
Lime Labs, R Lee Chambers Company (DomainsToBeSeen.com) and Central Registrar (Domainmonger.com) have been given 30 days notice that their accreditations are being yanked and that their domains will be transferred to other registrars.
About 12,000 domains will be affected, the vast majority of which are managed by Lime Labs.
The three registrars were among 10 that ICANN pounced on last month when they failed to respond to its Contractual Compliance Audit Program.
This program is a three-year initiative to make sure registrars and registries are complying with their contractual requirements. A third of registrars were randomly selected to take part late last year.
According to ICANN’s termination notices, all three registrars ignored last month’s warnings and did not submit the data required for the audit.
DomainsToBeSeen and Domainmonger both have just a few hundred gTLD domain names under management each. Lime Labs is much larger, with over 11,000.
The terminations will come into affect March 13.

Frank Schilling’s Uniregistry gets accredited as a registrar

Portfolio new gTLD applicant Uniregistry has taken the first step towards bringing its proposed new gTLDs to market by getting accredited as a registrar by ICANN.
Uniregistrar Corp shares its Cayman Islands address with Uniregistry.
The company’s web site states:

Uniregistrar is a new ICANN accredited registrar designed to let you create domain names in the new top level domain extensions offered by Uniregistry.
Beginning in 2014 anyone will be able to create and manage their domain names using the simple site we plan to create here. The names offered by Uniregistrar will be shorter, clearer, easier to use and manage than the .com .net or .org names you know from the past.

Given that its IANA number does not yet appear on the official list, the accreditation must have been granted pretty recently.
Uniregistrar is already accredited to sell .asia, .biz, .com, .info, .jobs, .mobi, .name, .net, .org, .pro, .travel and .xxx names, suggesting that the company plans to sell more than just its own TLDs.
Schilling’s existing accredited registrar, iRegistry, which is used primarily (or exclusively) to manage Name Administration’s massive portfolio of domains, is only accredited in .com, .net, .org and .xxx.
Uniregistry is an applicant for 54 new gTLDs, including .auction, .sexy, .christmas and .blackfriday.
Unlike the current regime, under ICANN’s rules for new gTLDs, “vertical integration” — where a registry can own a registrar that sells domains in its TLDs — is permitted.

Go Daddy claims half-boobed Super Bowl ads success

Go Daddy reckons its two commercials broadcast in the US during the Super Bowl last night were the most successful in the company’s history, according to two key metrics.
The company said in a press release:

Last night’s ads delivered more new customers and more overall sales, as compared to any other Super Bowl campaign in the company’s history.

Go Daddy has been advertising during the game for nine years. This year was the third in which is has partnered with .CO Internet, the .co registry, on one of the ads.
One of the ads was shameless, vintage, attention-grabbing Go Daddy — primarily comprising a lingering shot of a passionate kiss between an attractive female model and a male geek archetype.
The other, which advertised .co, largely eschewed mammary glands in favor of the “Underpants Gnomes” theory of domain name advertising, in which registering a domain somehow leads to fabulous wealth.
ICM Registry used a similar tactic in its launch advertising late 2011.

The Super Bowl is the season finale of a little-played fringe sport known as “American Football”.
Viewers of the annual US broadcast traditionally pay special attention to the regular commercial interludes because the brief, fleeting moments of actual sport are so soul-sappingly tedious.

United Domains has 1 million new gTLD pre-regs

United Domains announced today that its new gTLD pre-registration program has racked up its millionth domain.
The registrar has been accepting no-commitment pre-regs since mid-2011, and currently lets customers express interest in over 120 not-yet-approved gTLDs.
The most popular is .web, with over 123,000 expressions of interest to date.
Customers are not of course guaranteed anything in return for handing over their email addresses, but for registrars and registries such programs are a useful way to measure (and drum up) interest.
Some say such programs do little more than sow confusion among registrants, however.

NameCheap resurrects anti-SOPA transfers promo

NameCheap has decided to bring back the promotion that saw roughly 20,000 domain names transferred to it from Go Daddy, in protest of the company’s stance on US legislation, a year ago.
Its “second annual Move Your Domain Day” will be on January 22, with inbound transfers costing $3.99 (a buck cheaper than last year) on domains in the five biggest gTLDs.
It will donate $0.50 to the Electronic Frontier Foundation for every transfer, escalating to $1 and $1.50 if it gets more than 10,000 and 20,000 domains respectively.
The original promo was an opportunistic move to capitalize on Go Daddy’s support for the censor-happy Stop Online Piracy Act, which caused a great deal of controversy a year ago.
SOPA is now of course dead, and the senior Go Daddy executive who was most vocally in support of the bill, general counsel Christine Jones, is no longer with the company.