Another auDA director quits after conflict claims

Australian ccTLD manager auDA has lost its second director in two week with the resignation of Michaella Richards, announced today.
Richards’ position had been subject to criticism by disgruntled auDA members.
It had been speculated that her appointment to the board last December was less due to her experience in the domain industry, reportedly lacking, than due to her friendship with CEO Cameron Boardman.
The two had worked together in the Victorian state government, as DomainPulse uncovered.
Richards had been appointed a “demand class” director, meaning it was her role to represent domain buyers, rather than registrars, on the board. But critics doubted her credentials in this regard.
No reason was given for her resignation today. auDA simply said:

The auDA Board is seeking nominations, including from its demand class membership, for the Demand Class Director casual vacancy resulting from the resignation of Dr Michaella Richards.

Richards follows chairman Stuart Benjamin, who resigned at the end of July just a few days members were due to vote on an motion to oust him.
auDA has in recent weeks reversed its positions on a number of controversial policies after member outcries.

Grumpy campaign claims victory after auDA U-turns

Australian ccTLD administrator auDA has scrapped two unpopular policies following the ouster of its chairman last week, allowing campaigning domainers to claim victory.
auDA said it has done away with its member code of conduct and has reinstated its policy of publishing its board meetings’ minutes.
These were two of the key demands of Grumpy.com.au, a member-driven campaign orchestrated by domainer-blogger Ned O’Meara.
Grumpy had called for the unilaterally imposed code of conduct to be replaced by one created in consultation with members, and that’s what auDA is now promising.
auDA said:

A membership consultation process on a new Code of Conduct will be held, and a revised Code will be submitted to the 2017 AGM. A Code of Conduct for Board members will be developed as part of the next phase of governance work and members will have the opportunity to provide input prior to any final decisions.

The code banned members, under pain of losing their memberships, from harassing or abusing staff. But it also banned them from bad-mouthing the registry in public or via the media — effectively gagging criticism.
auDA also said it will reinstate the practice of publishing minutes. It had recently agreed to restore previously published minutes, but it appears than meetings in future will also be publicly minuted.
Reversing these two policies were two of four demands the Grumpy campaign had made.
Another, calling for the head of chairman Stuart Benjamin, was rendered moot when Benjamin, apparently fearing that he could not win a simply majority of votes, quit just a few days before a member vote was due to take place.
The fourth, which called for auDA to scrap its plan to build and operate an in-house registry infrastructure, also appears to be moot. The company now seems to be talking about outsourcing to a third-party back-end provider.
auDA had refused, citing legal reasons, to include anything but the vote of confidence in the chair on its agenda for last week’s special members meeting.
O’Meara, in a blog post Friday, welcomed the U-turns. He wrote:

Before a group of members ever took this massive step of calling a special meeting, we pleaded with auDA to sort these issues out. We were ignored; then rebuffed.
…
And here we are today – with every single resolution now resolved (hopefully) in the members favour.
That’s what you call a strategy that backfired spectacularly on auDA.

auDA also said that it has commenced the process of seeking out a new independent director/chair.

.storage to have pricey second sunrise

The .storage gTLD is to get a second sunrise period after being acquired and repurposed by XYZ.com.
The registry will operate a “Trademark Landrush Period” for three weeks from November 7 as the first stage of .storage’s reboot as an open-to-all gTLD.
It’s not technically a “sunrise” period under ICANN rules — that phase was already completed under previous owner Extra Space Storage — nor is it restricted to trademark owners.
Basically anyone with the money will be able to buy a .storage domain during the period, but at a price.
One registrar is reporting that registrants will have to pay a $1,500 application fee on top of the soon-to-be-standard higher $699-per-year registration fee.
That’s considerably more than most new gTLDs charge during their regular sunrise phases.
There’s no need to own a matching trademark, so neither the registry, registrars or Trademark Clearinghouse have any trademark verification costs to bear.
But that also means anyone can pick up any generic, dictionary .storage domain they want without the need for paperwork. XYZ has previously said that all domains will be available at the same price, regardless of their previous “premium” status.
I can see some intellectual property interests being uneasy with how this relaunch is handling trademarks.
Under its former management, .storage was set to be tightly restricted to the physical and data storage industries, reducing the chance of cybersquatting, so some brands may have avoided the sunrise period.
After the relaunch — general availability starts December 5 — there will be no such restrictions. However, the high price of standard registrations is likely to deter all but the richest or dumbest cybersquatters.
XYZ.com acquired .storage for an undisclosed sum in May. There are currently about 800 domains in the .storage zone file.

HTC dumps its dot-brand

Mobile phone manufacturer HTC has become the latest dot-brand operator to get out of the new gTLD game.
The $4.3 billion-a-year Taiwanese firm has told ICANN that it no longer wishes to run .htc as a dot-brand registry and ICANN has signaled its intent to terminate the contract.
It becomes the 27th dot-brand, from the hundreds that have entered contracts over the last few years, to change its mind about owning a vanity gTLD.
Most recently, fast food chain McDonalds and kitchen utensils company Pampered Chef both dumped their respective dot-brands.
Like the previous terminations, HTC never actually did anything with .htc; it only had the contractually mandated nic.htc in its zone file.

Verisign confirms first price increase under new .net contract

Verisign is to increase the wholesale price of an annual .net domain registration by 10%, the company confirmed yesterday.
It’s the first in an expected series of six annual 10% price hikes permitted under its recently renewed registry agreement with ICANN.
The annual price of a .net registration, renewal, or transfer will go up from $8.20 to $9.02, effective February 1, 2018
If all six options are exercised, the price of a .net would be $15.27 by the time the current contract expires, including the $0.75 ICANN fee. It would be $14.52 without the ICANN fee.
The increase was confirmed by CEO Jim Bidzos as Verisign reported its second-quarter earnings yesterday.
For the quarter, Verisign saw net income go up to $123 million from $113 million a year ago, on revenue that was up 0.7% at $289 million.
It now has cash of $1.8 billion, up $11 million on a year ago.
It ended the quarter with 144.3 million .com and .net names in its registry, up 0.8% on last year and 0.68 million sequentially.

auDA chair quits days before vote to fire him

The chair of .au registry auDA has quit the job just three days before members were due to vote on a motion to fire him.
Stuart Benjamin, who took on the role in late 2015, faced a special member meeting on Monday that had just one resolution on its agenda:

That Stuart Benjamin be removed as a director of the Company with immediate effect.

Benjamin said today: “I have reached the view that there is no possible positive outcome for the organisation from the vote planned for Monday.”
That could mean he anticipated losing the vote, but it could also mean that he viewed a narrow victory as just as bad an outcome, optically, for auDA.
The confidence vote had been on the agenda due to a campaign at Grumpy.com.au organized by domainer/blogger Ned O’Meara.
Grumpy’s supporters reckon auDA has gone to the dogs over the last couple of years, with staff quitting or being fired en masse and an unwelcome culture of secrecy being imposed.
But Benjamin wrote:

As Chair I have overseen an increase in policy generation, in effective oversight, and in good governance.
We have also commissioned some of the largest member consultation projects in auDA’s history.
However, the auDA Board and members need to forge a different way of working together and I think there is a better chance for that to happen if I step away.

One bone of contention had been a new “code of conduct” that allowed auDA to revoke membership from any member who harassed or bullied staff.
Grumpy had opposed this measure because the code also included a gag order barring members from criticizing auDA in the media.
Benjamin took the opportunity to address this in his resignation announcement today, saying:

Everyone at auDA is open to robust criticism on strategy, policy and decision-making – that interaction makes us stronger. When that healthy engagement devolves into personal attacks on board members, the capacity of the organisation to attract and retain good people is affected.
I will continue to take a stand against cyber bullying and will not be deterred in standing up to anyone who thinks it is acceptable to personally attack staff and directors. I do not want my experiences to discourage others from running for election, or accepting an appointment, to this important organisation.

Another fractious issue, auDA’s decision to build a new in-house registry infrastructure, appears to have softened this week also.
The special general meeting is to proceed as planned on Monday. The only other items on the agenda are a CEO’s report and “any other business”.
Benjamin’s resignation letter to the .au community can be read here.

Donuts to complete Rightside acquisition tonight

Donuts is on the verge of closing its acquisition of coopetitor Rightside, after the vast majority of Rightside shareholders agreed to sell up.
Rightside just disclosed that owners of 92% of its shares — 17,740,054 shares — have agreed to sell at Donuts’ offer price of $10.60 per share.
That means the remaining 8% of shares that were not tendered will be converted into the right to receive $10.60 and Donuts can close the acquisition before the Nasdaq opens tomorrow morning.
After the $213 million deal closes, Rightside will become a wholly owned subsidiary of Donuts and Donuts can get on with implementing whatever efficiencies it has identified.
Rightside will cease to be publicly listed afterwards.
Together the combined company will be the registry for about 240 new gTLDs, as well as owning its own back-end registry infrastructure and the retail registrar Name.com.

MMX says .vip renewals running at 75%

MMX has revealed that its renewal rate for first-month .vip registrations in China were over 75%.
The portfolio gTLD registry, also known as Minds + Machines, said that 317,000 domains that were registered during .vip’s first month of availability have now been renewed.
The news follows a June announcement that the renewal rate would be over 70%.
The large majority of .vip names registered are registered via Chinese registrars, where prices can be around the $3 to $4 mark.
MMX CEO Toby Hall said in a statement that the company now plans to release some of its reserved “premium” .vip names.
He added that the company is confident that its recurring revenue from renewals will soon be high enough to cover its fixed overhead costs, one of its key performance benchmarks.

auDA now looking to outsource .au registry

Australian ccTLD overseer auDA appears to have softened its approach to overhauling the management of .au.
The organization said today that it’s now planning to look for an “outsourced registry operation” that will come online in July 2018.
In recent months, the company had been looking for suppliers to help it build a dedicated, in-house, .au infrastructure, in addition to keeping its outsourcing options open.
Today, auDA said that its recent request for expressions of interest had concluded. It said:

The [Registry Transformation Project] team have been very pleased with the strength of responses received and recommended to the auDA Board that auDA should proceed to the next stage of the project. The auDA Board subsequently resolved to undertake a formal Request for Tender (RFT) process. The RFT will be restricted to the respondents of the REOI with a scope to deliver an outsourced registry operation, based on auDA’s updated specifications, by July 2018.

It looks like any registry providers that did not get their foot in the door with the REOI are now permanently shut out of the process.
Additionally, it appears as though auDA has settled on an outsourced, rather than in-house, solution. Given the fact that the majority of the industry is based on service-based registry solutions, that had always seemed like a strong possibility.
auDA now plans to post a draft technical spec for comment August 14 and a formal request for tenders August 28, with a view to picking a winner in October/November for a July 2018 launch.
The company currently uses Neustar as its back-end due to Neustar’s 2015 acquisition of 15-year incumbent AusRegistry.
The names of the companies responding to the REOI, and their number, have not been disclosed.
auDA is currently facing a member revolt, partly but by no means exclusively over its decision to build an in-house registry. The company’s chair finds out whether members want him fired or not on Monday.

.blog tops 100,000 names, 66,500 blogs

The new gTLD .blog has gone through the 100,000 registered domain mark, according to its registry.
Knock Knock Whois There said that the milestone was reached with the registration of kitchenmagic.blog today.
It’s a pretty good start for the gTLD, which went into general availability last November, making for an average of 12,500 names added per month.
While KKWT has offered discounts and volume incentives to registrars, its wholesale prices have not approached levels low enough to start attracting abusive use en masse. We’re talking around the $8 mark at the cheapest, I hear.
In fact, the registry said today that it reckons 66.5% of its domains — 66,500, in other words — “have a unique website associated with them”, compared with an industry average under 40%.
Both of those statistics seem to have been supplied by Pandalytics, the DomainsBot service to which KKWT subscribes, and do not appear to be publicly available.
If accurate, 66.5% usage is a much better statistic to brag about than 100,000 registrations, in my view. Usage, of course, drives the virtuous circle that leads to more sales.