Domain Registry of America still slamming, still scamming

Domain name slamming is alive and well in the ICANN-accredited registrar community.
I’ve just received a letter in the mail offering me the chance to transfer and renew domainincite.com for the knock-down price of £25 ($38) a year.
It’s Domain Registry of America again, still slamming almost a decade after it was first sued for the completely unethical practice of conning people into transferring their domain names.
The letter looks like a renewal notice. Besides ostensibly coming from “Domain Renewal Group”, it also contains the prominent text “Domain Name Renewal Service”.
Domain Renewal Group and Domain Registry of America are one and the same – fronts for the ICANN-accredited registrar Brandon Gray Internet Services Inc, dba NameJuice.com.
The letter, as you can see from the scan, is a little less bogus than the ones DROA started sending out back in 2001. The text states now much more clearly that “this is not a bill”.
But domain slamming has always relied upon people not reading the letter properly and/or not understanding the intricacies of domain transfers, and this is no different.
DROA’s business depends upon its letters finding their way into the hands of gullible individual registrants or accounting departments that will blindly pay official-looking notices.
At the prices the company charges – pretty much the most expensive in the industry – very few people will have transferred their domains because they thought they were getting a good deal.
There have been numerous complaints and lawsuits against DROA over the last decade.
In November 2009, the UK Advertising Standards Agency found DROA in breach of truthfulness and honesty guidelines for a substantially similar mailshot and ruled:

The mailing must not appear again in its current form.

And last year, the .ca registry CIRA terminated Domain Registry of Canada, another Brandon Gray front, for slamming .ca registrants using the same methods.
So isn’t it about time ICANN shut these muppets down too?
Unfortunately, ICANN can only use contracts to enforce compliance, and I’m not sure there are any sticks in the 2001 Registrar Accreditation Agreement that it can use to beat them.
DROA has plainly breached Go Daddy’s Whois access policy by slamming me (the letter was sent to my Whois billing address, not my actual residence), but I don’t think there’s much Go Daddy can do about that short of suing.
As far as I can tell, Brandon Gray, which has about 130,000 domains under management, got its ICANN accreditation in about 2003. It was previously an eNom reseller.
So its accreditation is probably going to be up for renewal within the next couple of years.
Fortunately, ICANN has just this week introduced stricter new accreditation application rules that are specifically designed to weed out the scumbags.
Any company or individual with a track record of dishonesty is no longer welcome at ICANN.
So if there’s nothing that can be done before then, at the very least when Brandon Gray’s accreditation expires ICANN should not renew it.
What’s more, other registrars should lean on ICANN to make sure Brandon Gray is shown the door. It’s been bringing their industry into disrepute for the best part of a decade and it’s time for it to stop.

WordPress.com’s registrar service: Slow cookin’ makes good eatin’

WordPress.com provider Automattic has not abandoned its plans to start offering domain names directly to its users, according to its lead developer.
It’s been about 11 months since the company received its ICANN accreditation, but it is currently still acting as a Go Daddy reseller.
“Our registry product is still under development,” Automattic founder and chief barbecue taste tester (really) Matt Mullenweg said in an email. “Slow cookin’ makes good eatin’.”
WordPress.com announced last week that it would start offering .me domains, alongside .com, .org, and .net, saying it would give users a better chance to get a domain they liked.
The .me registry, Domen, is a joint venture whose partners include Go Daddy and Afilias.
“GoDaddy is a valued partner and we continue to use many of their services as part of our business,” Mullenweg added.
Domain names are WordPress.com’s best-selling add-on product. According to DomainTools, over 226,000 domains are hosted on the same servers as WordPress.com.

NBT agrees to $236m buy-out

Following in the footsteps of larger rival Go Daddy, the UK-based registrar Group NBT has agreed to be bought out by private investors for £153 million ($236m).
NBT owns registrars including NetNames, Ascio and Indom.
The all-cash offer comes from investors led by HgCapital and represents a 22.5% premium on the company’s closing share price yesterday.
At 550p a share, the offer stands to make a profit for anybody who has bought NBT shares in the last ten years, according to the company.
The news came as NBT reported an annual profit, excluding certain items, up organically 9% at £8.9 million ($13.8m) on revenue that was up 4% at £45.7 million ($70.6m).
Including the results from French registrar Indom, which the company acquired last December, profit was up 18% at £9.6 million ($14.8m) on revenue up 13% to £49.5 million ($76.5m)
The NBT deal is merely the latest in a series of buyouts and mergers to hit the registrar market this year.
As well as Go Daddy’s $2 billion+ change of control, Network Solutions recently sold out to Web.com for $561 million in cash and stock, and Tucows acquired EPAG Domainservices for $2.5 million.
At least one city analyst thinks the buyout timing relates to ICANN’s forthcoming new generic top-level domains program, and is bullish on Top Level Domain Holdings shares as a result.
Will the wave of consolidation continue? Who’s next?

Bob Parsons worth $1.5bn, ranked 293 on Forbes 400

Go Daddy executive chairman Bob Parsons is the 293rd wealthiest person in America, with a self-made fortune of $1.5 billion, according to the latest Forbes 400 rich list.
In its annual league table, published yesterday, Forbes ranks Parsons tied with tech investors such as LinkedIn co-founder Reid Hoffman and Groupon co-founder Evan Lefkofsky.
Parsons, Go Daddy’s founder and erstwhile CEO, is a debutant on the list following his sale of a majority stake in the company to a group of institutional investors.
KKR, Silver Lake and Technology Crossover Ventures collectively bought out more than half of Go Daddy in a deal announced in July, reportedly worth north of $2 billion.

Melbourne IT makes three senior hires

Aussie domain registrar Melbourne IT has recruited three senior executives from elsewhere in the industry to bulk up its Digital Brand Services business.
SSL evangelist Tim Callan, formerly with VeriSign, has been appointed chief marketing officer. He moved to Symantec after the VeriSign security business changed hands, but left in May.
Lena Carlsson, Melbourne’s new VP of domain strategy, is a former Swedish civil servant and former vice-chair of ICANN’s Governmental Advisory Committee.
Rob Holmes has also been recruited from brand management rival Corporation Services Company as the new global director of brand protection services.
The hires all appear to have been made over the last few months and were announced in a press release today.

Go Daddy’s 60-day domain lockdown loophole

Perhaps the most common complaint of the many leveled at Go Daddy over the years is that it refuses to allow customers to transfer domains to another registrar for 60 days after an ownership change.
The latest person to fire this criticism at the company is tech blogger Scott Raymond, who published a lengthy tirade against Go Daddy and its policy on ZDNet today.
Raymond points out that Go Daddy seems to be in violation of ICANN’s Inter-Registrar Transfer Policy, which explicitly prohibits the rejection of a transfer request due to a recent Whois change.
He’s not alone. Even Andrew Allemann of Domain Name Wire, hardly Go Daddy’s fiercest critic, said as recently as May that he thinks the company is in violation of the IRTP.
With good reason – this April 2008 ICANN advisory seemed to be specifically written with a ban on Go Daddy’s 60-day policy in mind.
But is the company non-compliant? ICANN doesn’t seem to think so.
I’ve tracked down this November 2009 email from David Giza, then ICANN’s head of compliance, in which he describes what seems to amount to a loophole Go Daddy and other registrars exploit.
Giza explains that the 2008 advisory “only addresses mandatory updates to Whois contact information, not a transfer or assignment to a new registrant”.
Registrants are obliged to keep their Whois data up-to-date; that’s what he means by “mandatory”.
Giza’s email adds:

the transfer policy does not prohibit registrars from requiring registrants to agree to the blocking of transfer requests as a condition for registrar facilitation of optional services such as the transfer of a registration to a new registrant.
We understand GoDaddy.com’s 60-day lock is a voluntary opt-in process where registrants are made aware of and agree to the restriction that the domain name is not to be transferred for 60-days following the completion of transfer. As such, this practice is not prohibited by the transfer policy.

In other words, there are “Whois Changes” and there are “Registrant Changes”, and registrars are only allowed to trigger a lock-down in the latter case, according to Giza.
And according to DNW’s reporting on the subject, that’s exactly what Go Daddy continues to do — locking the domain if certain fields in the registrant record are changed.
So the 60-day lock appears to be kosher, at least in the opinion of ICANN’s erstwhile compliance chief. Whether that could change under the department’s new management is unknown.
As it happens, the subject was raised by a recent working group that was looking into revising the IRTP, but it was so contentious that consensus could not be found.
The problem has been bounced down the road. The most recent mention came in this ICANN issue report (pdf, page 14-15).
Anyway, if I lost you several paragraphs ago, the net result of all this seems to be that Go Daddy probably isn’t breaking the rules, but that nobody can agree whether that’s a good thing or not.
The fact that one has to do this much digging into ICANN esoterica just to figure out whether Go Daddy is screwing its customers over isn’t very reassuring, is it?

Another registrar on the ICANN naughty step

ICANN has threatened to terminate the accreditation of Samjung Data Service, a South Korean domain name registrar.
The threat, the 13th ICANN’s compliance department has issued to a registrar this year, is notable because it’s a rare example where money does not appear to be an issue.
Samjung’s failing, according to ICANN’s termination letter, is its inability to escrow registrant data with Iron Mountain on the agreed schedule and in the required format.
The tiny registrar has also failed to make the technical contacts in its customers’ Whois records available online, and has been apparently ignoring ICANN’s calls and emails.
What ICANN does not do is accuse Samjung of not paying its accreditation fees, which in the past has been a notable feature of compliance actions.
Delinquent payments tend to alert ICANN that there may be other problems at a registrar, but this has led to criticisms that the organization is only concerned about its revenue.
Could the Samjung case be another example of the newly staffed-up ICANN compliance department taking the more proactive stance that was promised?

MelbourneIT talks to 270 .brand applicants

The Australian domain registrar MelbourneIT said it has talked to 270 companies and signed contracts with 17 that want to apply for “.brand” top-level domains.
The news came in the company’s “disappointing” first-half financial results announcement yesterday.
According to its official report (pdf), MelbourneIT has received 230 expressions of interest and has inked deals with 14, but managing director Theo Hnarkis reportedly told analysts the higher numbers.
The company is charging clients between AUD 45,000 ($47,000) and AUD 75,000 ($79,000) to handle the ICANN application process.
MelbourneIT’s preferred partner for back-end registry services is VeriSign, so the clients it signs are likely to become recurring revenue streams for VeriSign if their applications are successful.

Go Daddy confirms .xxx pricing, will host porn sites

Go Daddy has revealed its pricing scheme for .xxx domain names and confirmed that it will indeed host the porn sites that use them.
When .xxx goes into general availability in December, Go Daddy will charge $100 per name per year.
That’s surprisingly high – a $40 markup on the $60 ICM Registry fee – for a registrar generally known for its reasonable prices.
I know of at least two registrars planning to sell .xxx more cheaply – the UK’s DomainMonster ($75 if bought in bulk) and Spain’s DinaHosting ($67). There may be others I haven’t come across yet.
Sunrise period pricing at Go Daddy is $210 for applications from the adult entertainment industry and $200 for trademark holders from outside the industry. Landrush prices will be $200 too.
Those fees represent some of the better deals I’ve seen for .xxx’s pre-launch phases.
The prices have not yet been published on the Go Daddy web site, but a company spokesperson confirmed that some of its larger customers have been privately notified.
That apparently includes Mike Berkens, who broke the news last week.
Go Daddy also confirmed that it will host .xxx porn sites, though only on its paid-for hosting accounts.
I’ve always been a little confused by Go Daddy’s hosting terms of service. By my reading, porn was outright banned. Apparently I was dead wrong.
The company’s general counsel, Christine Jones, said in a statement:

Go Daddy’s Web hosting agreement does not currently prohibit pornography, except in the case of ad-supported hosting. Those terms will continue for all TLDs, including .xxx, unless otherwise prohibited by our agreements with the various registry operators.

I know I’m not the only person out there who was confused by the ToS, but I can’t think of a better person to clarify the situation than the company’s top lawyer.

It’s official: South Sudan to get .ss

The new African nation of South Sudan has officially been given the two-letter country code SS, meaning it is likely just months away from getting the top-level domain .ss.
The SS string appeared on the International Standards Organization’s ISO 3166-1-alpha-2 code list this week, following a request by the government of the country.
The 3166 list is the standard by which ICANN judges a territory’s eligibility to be delegated a country-code top-level domain.
South Sudan does not yet appear on IANA’s list of ccTLDs, but it’s likely to be added soon.
The last three nations to form, following the breakup of the Netherlands Antilles last October, already have ccTLD records in the IANA database, although none have yet been officially delegated to a registry or added to the DNS root system.
The delegation of a new ccTLDs is usually a much more straightforward proposition than the redelegation of an existing ccTLD to a new manager, which can take many years.
South Sudan declared independence July 9 this year and was officially recognized by the United Nations five days later.
It’s one of the world’s poorest and unhealthiest nations: it is estimated that 11% of its children die before their fifth birthday and that 2% of mothers die in childbirth.
Getting a ccTLD is probably quite low on the nation’s list of priorities.
According to reports, the South Sudan government was well aware of the connection “SS” has to the Nazis in Europe when it asked for the string.
It’s pretty tenuous connection, and I doubt anyone reasonable would take offense, but the incoming registry may want to add a few well-chosen strings to its reserved list just in case.