Two new gTLD registries open offices in China

Portfolio gTLD registries Famous Four Media and Minds + Machines have both announced that they’re formally entering the Chinese market.
Both companies are establishing “wholly foreign-owned enterprises” (WFOEs), a form of company that does not require local investment, on the mainland.
The moves are aimed at getting the registries’ respective gTLDs accredited by the Chinese government, something that is required before local registrants are allowed to use them.
In a press release, FFM senior legal counsel Oliver Smith said:

It was clear to us soon after launching our first domain registry that domain registrations from China comprised a strong proportion of the total. It was a natural progression of our strategy to build a physical presence in China. The accreditation process is complicated but well-structured and, thanks to the help of advice from the Chinese government, should be completed relatively quickly.

In some of Famous Four’s gTLDs, Chinese registrars are the overwhelming majority of the sales channel.
In .win, the registry’s biggest-seller, China was responsible for about 85% of registrations at the last count, for example.
Meanwhile, M+M is taking a slightly different route into the country.
It said today that while it also shortly plans to open a WFOE, it has also partnered with ZDNS, a local provider of proxy services for registries.
ZDNS was the company XYZ.com partnered with for its controversial launch into China. According to M+M, it’s also working with .CLUB Domains and some Chinese gTLD registries.
M+M is also using the specialist consultancy Allegravita for its marketing there.
Its local entity will be called Beijing Ming Zhi Mo Si Technology Company Limited (which may or may not translate to something like “Wise Mediation”).
M+M’s first Chinese launches will be .beer, .fashion, .fit, .law, .wedding, .work and .yoga, with .vip and .购物 (“.shopping”) coming later in the year.

Fox promises dot-brand will be “the next big thing”

Fox seems set to become an unexpectedly early adopter of its dot-brand gTLD, .fox.
The only live .fox web site, nic.fox, is currently promising that the gTLD will become “the next big thing” in “Spring 2016”.
On the site, a glossy, quick-cut show-reel of Fox media carries the text:

Cue the lights. Roll the cameras. The next big thing is coming. And you’re invited. Welcome to .FOX. Spring 2016.

.fox will be a “a trusted digital space for everything you love about Fox” the site promises.
It suggests that Fox content in DVD, Blu-ray and Digital HD formats will be available via .fox web sites.
.fox has only been in the root since late November; its owners have not so far appeared to be champing at the bit to get their dot-brand online, and Fox has not exactly been enthusiastic about new gTLDs.
Its IP lawyers were some of the most outspoken critics of the program in its early days, estimating they would have to spend millions of dollars on defensive registrations.
Not only has that not happened, but Fox now seems to be grasping the “trusted source” dot-brand sales pitch with both hands.
It’s going to be interesting to see not only what the company has up its sleeve, but also how extensively it is promoted.

Registrars boycotting “gag order” .sucks contract

Registrars are ignoring new provisions in their .sucks contracts that they say amount to a “gag order”.
In a letter (pdf) to ICANN from its Registrars Stakeholder Group, the registrars ask for ICANN to convene a face-to-face negotiation between themselves and .sucks registry Vox Populi, adding:

Until such time, the Registrars believe that the amendments are not yet in effect and will continue to operate under Vox Populi’s existing RRA.

That means they’re working on the assumption that the controversial changes to the .sucks Registry-Registrar Agreement, sent to ICANN by Vox in December, have not yet been approved.
Vox Pop, on the other hand, has told ICANN that the changes came into effect January 6.
As we reported at the weekend, the registry is taking ICANN to formal mediation, saying ICANN breached the .sucks Registry Agreement by failing to block the changes within the permitted 15-day window.
The registrars’ letter was sent January 20, one day before Vox Pop’s mediation demand. The Vox letter should probably be read in that context.
The registrars have a problem with two aspects of the changed RRA.
First, there’s a clause that allows Vox to change the contract unilaterally in future. Registrars say this makes it a contract of “adhesion”.
Second, there’s a clause forbidding registrars taking “action to frustrate or impair the purpose of this Agreement”. Registrars read this as a “gag order”, writing:

Many Registrars not only serve as retail outlets for the purchase of domain names, but also provide consultative services to their clients on TLD extensions and their domain name portfolios. In conjunction with the provision of those services, registrars often opine on new gTLD and ccTLD extensions, the TLDs policies, pricing methodologies, security provisions and overall utility. These provisions could easily be read to inhibit such activities and restrict a registrar’s ability to offer those valuable services.

That’s referring primarily to corporate registrars working in the brand protection space, which are kinda obliged to offer .sucks for their clients’ defensive purposes, but still want to be able to criticize its policies and pricing in public.
ICANN has yet to respond to the request for a sit-down meeting between the registry and registrars.
However, given that Vox has invoked its right to mediation, it seems likely that that process will be the focus for now.
Mediation lasts a maximum of 90 days, which means the problem could be sorted out before April 20.

.sucks sends in the lawyers in “gag order” fight

Vox Populi is taking ICANN to mediation over a row about what some of its registrars call a “gag order” against them.
Its lawyers have sent ICANN a letter demanding mediation and claiming ICANN has breached the .sucks Registry Agreement.
I believe it’s the first time a new gTLD registry has done such a thing.
The clash concerns changes that Vox Populi proposed for its Registry-Registrar Agreement late last year.
Some registrars believe that the changes unfairly give the registry the unilateral right to amend the RRA in future, and that they prevent registrars opposed to .sucks in principle from criticizing the gTLD in public.
I understand that a draft letter that characterizes the latter change as a “gag order” has picked up quite a bit of support among registrars.
ICANN has referred the amended draft of the .sucks RRA to its Registrars Stakeholder Group for comment.
But Vox Pop now claims that it’s too late, that the new RRA has already come into force, and that this is merely the latest example of “a pattern on ICANN’s part to attempt to frustrate the purpose and intent of its contract with Vox Populi, and to prevent Vox Populi from operating reasonably”.
The registry claims that the changes are just intended to provide “clarity”.
Some legal commentators have said there’s nothing unusual or controversial about the “gag” clauses.
But the conflict between Vox and ICANN all basically boils down to a matter of timing.
Under the standard Registry Agreement for new gTLDs, registries such as Vox Pop are allowed to submit proposed RRA changes to ICANN whenever they like.
ICANN then has 15 calendar days to determine whether those changes are “immaterial, potentially material or material in nature.”
Changes are deemed to be “immaterial” by default, if ICANN does not rule otherwise within those 15 days.
If they’re deemed “material” or “potentially material”, a process called the RRA Amendment Procedure (pdf) kicks in.
That process gives the registrars an extra 21 days to review and potentially object to the changes, while ICANN conducts its own internal review.
In this case, there seems to be little doubt that ICANN missed the 15-day deadline imposed by the RA, but probably did so because of some clever timing by Vox.
Vox Pop submitted its changes on Friday, December 18. That meant 15 calendar days expired Monday, January 3.
However, ICANN was essentially closed for business for the Christmas and New Year holidays between December 24 and January 3, meaning there were only three business days — December 21 to 23 — in which its lawyers and staff could scrutinize Vox’s request.
Vox Pop’s timing could just be coincidental.
But if it had wanted to reduce the contractual 15 calendar days to as few business days as possible, then December 18 would be the absolute best day of the year to submit its changes.
As it transpired, January 3 came and went with no response from ICANN, so as far as Vox is concerned the new RRA with its controversial changes came into effect January 6.
However, on January 8, ICANN submitted the red-lined RRA to the RrSG, invoking the RRA Amendment Procedure and telling registrars they have until January 29 to provide feedback.
Vox Pop’s lawyer, demanding mediation, says the company was told January 9, six days after ICANN’s 15-day window was up, that its changes were “deemed material”.
Mediation is basically the least-suey dispute resolution process a registry can invoke under the RA.
The two parties now have a maximum of 90 days — until April 20 — to work out their differences more or less amicably via a mediator. If they fail to do so, they proceed to a slightly more-suey binding arbitration process.
In my opinion, ICANN finds itself in this position due to a combination of a) Vox Pop trying to sneak what it suspected could be controversial changes past its staff over Christmas, and b) ICANN staff, in the holiday spirit or off work entirely, dropping the ball by failing to react quickly enough.
While I believe this is the first time a 2012-round gTLD registry has gone to dispute resolution with ICANN, Vox did threaten to sue last year when ICANN referred its controversially “predatory” launch plans to US and Canadian trade regulators.
That ultimately came to nothing. The US Federal Trade Commission waffled and its Canadian counterpart just basically shrugged.

Cars gTLD launch clears $1 million in EAP

There was a small turn-out for the premium launch of .cars, .car and .auto gTLDs, but the registry says it cleared over $1 million in revenue.
The three gTLDs are run by Cars Registry, a venture between Uniregistry and XYZ.com.
They all finished their pricey Early Access Periods yesterday and are due to enter general availability today.
The EAP started January 12 with prices of $45,000 per domain. In GA, they won’t cost you less than $2,000.
While zone files show almost no new domains appearing between January 12 and today — three or four per domain at most — Uniregistry CEO Frank Schilling said EAP was a “success”.
“More than 100 dealers and brands took advantage of sunrise and EAP,” he said.
It appears there are a few dozen domains not appearing in zone files yet.
The three gTLDs combined have brought in over $1 million during EAP, Schilling said.

.security names priced at $3,000, .theatre at $750

XYZ.com may be best known for its budget .xyz gTLD, but its portfolio is increasingly leaning toward the super-premium end of the industry price range.
The company entered Early Access Period with its .security, .protection and .theatre gTLDs today, and they ain’t cheap.
.security and .protection are expected to carry retail prices of $3,000 a year, when they hit general availability a week from now.
Today, they’re $65,000 apiece, with the price reducing to $35,000, $15,000, $8,750 and $5,000 over the coming days.
Meanwhile, .theatre starts at $64,000, going down to $32,000, $14,000, $7,000 and $4,000 before finally settling at the GA RRP of $750.
All three gTLDs were acquired by XYZ.com from other applicants.
That was also the case for .cars, .car and .auto, which XYZ runs in a joint venture with Uniregistry, where retail prices are roughly $2,500.
In terms of competition, .security and .protection are probably up against .trust, while .theatre may well find itself in competition with .tickets, which has made inroads in Broadway.

.boston was a “distraction”, says gTLD seller

The Boston Globe newspaper decided to offload the gTLD after its new owners decided it was a “distraction”.
That’s according to a report yesterday in the newspaper itself.
Last week, it was announced that Minds + Machines, which already runs a handful of geo-gTLDs, is acquiring the .boston contract for an undisclosed sum.
Today, the Globe reports that its owners thought .boston would be “a distraction from the Globe’s central business of providing information through its print and online outlets”.
“The .boston domain business was inherited by the current management team and is not perceived as core to the mission of supporting the highest quality journalism in the region,” it quotes the Globe’s VP of marketing as saying.
The newspaper was acquired by Boston Red Sox owner John Henry in 2013, a year after the .boston application was filed, according to the report.
The acquisition, which sees M+M buy 99% the Globe subsidiary in control of the gTLD registry agreement, is subject to ICANN approving the contract reassignment.

Does .tickets have the ultimate anti-cybersquatting system?

I’ve never seen anything like this before.
.tickets gTLD registry Accent Media has launched an anti-cybersquatting measure that lets the world know who is trying to register what domain name a whole month before the domain is allowed to go live.
The service, at domains.watch, is currently only being used by .tickets, but it seems to be geared up to accept other TLDs too.
A spokesperson said the site soft-launched a couple months ago.
Today, if you want to register a .tickets domain name, you have a choice of two processes — “fast-track” or “standard”.
Fast-track is for organizations with trademarks matching their names. It take five days for the trademark to be verified and the domain to go live.
Standard-track applications, however, are published on domains.watch for 30 days before the the registration is fully processed (under the registry hood, the domain are kept in “Pending Create” status).

During that 30 days, anyone with a trademark they believe would be infringed by the domain may file a challenge against the registration. They have to pay a fee to do so.
The would-be registrant can counter by showing their own rights. If they have no documented rights, the challenger gets the name instead.
“Rights” in the case of .tickets means a trademark or evidence of use of a mark in a ticketing-related context.
While it’s certainly not unusual in the industry for restricted TLDs to manually vet their registrants before processing a registration, I’ve never before come across a registry that does it all in public, allowing basically anyone — or, at least, anyone who is willing to pay the challenge fee — to challenge any registration.
Can you imagine what the domain world would be like if this kind of system were commonplace across a range of TLDs?
A lot of people outside the industry — particularly in security, I fancy — would love it.

Uniregistry beats Donuts to .shopping, but .shop still in play

Uniregistry has emerged as the successful registry-to-be of .shopping from the convoluted .shop/.shopping new gTLD contention set.
Donuts, the only competing applicant for the string, withdrew its application late last week.
As we previously reported, the .shop/.shopping contention sets were joined at the hip due to a bizarre string similarity challenge, making the scheduled auction very complex.
But Donuts and Uniregistry seem to have come to a private arrangement about .shopping, outside of the ICANN auction process, making .shop a straightforward nine-way fight.
Donuts tells me the auction, in which it is participating, is still scheduled for January 27.

.top gTLD tops a million as China goes domain nuts

China-based new gTLD .top has become only the second new gTLD to pass the one-million-domain milestone.
The gTLD, managed by Jiangsu Bangning Science & Technology Co, had 1,000,469 domains in its zone file on Saturday, an increase of 5,808 on the day.
The zone has grown by 453,833 domains in the last 90 days, according to DI PRO stats.
It’s growing just slightly faster, in percentage terms, than new gTLD volume leader XYZ.com’s .xyz.
The rapid growth can no doubt be attributed largely to price, feeding the current Chinese appetite for domain investment.
Its most successful registrar, West.cn (Chengdu West Dimension Digital Technology Co), is currently selling .top names prominently for CNY 4 for the first year. That’s just $0.60.
The registry says that registrants come from 231 countries and regions. On its web site, it highlights France’s Gandi.net and Gibraltar’s budget registrar AlpNames as key international partners.
However, the latest registry reports show that over 90% of its sales are coming from China-based registrars.
Despite .top being a Latin-script TLD, European and North America registrars seem to account for a very small number of registrations.
It’s not even carried by the likes of GoDaddy and eNom.
The third-place 2012-round new gTLD is currently .wang, another Chinese registry, which yesterday had 628,125 names in its zone file.
Number four is .win, which despite being run by Gilbraltar-based Famous Four Media is utterly dominated by sales via Chinese registrars.
At number five is .club, with 552,065 names and a much more international distribution of registrars.