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.xyz starts to plummet — NetSol freebies to blame?

XYZ.com has been seeing its .xyz zone file shrink rapidly over the last five days, likely as a result of free domains pushed out to Network Solutions customers starting to expire.
DI PRO stats show that .xyz has shrunk by 49,658 domains this week — today at 888,413 names compared to a June 4 peak of 942,927.
It was June 4 last year when the industry become aware that NetSol was automatically pushing .xyz names into the accounts of its existing customers without their explicit consent.
Renewal rates usually do not become clear for 45 days after expiration, due to grace periods, but domains can delete earlier.
On June 9, 2014, one year ago today, .xyz had 87,073 domains in its zone file. It’s difficult to see where a loss of almost 50,000 names this week could come from if not the NetSol freebies deleting.
It is believed that the NetSol giveaway contributed about 350,000 names to .xyz’s zone over the period of its offer.
NetSol has been bundling .xyz renewals — which along with the free year of email and privacy comes to a whopping $57 — when it asks its customers to renewal their matching .com/.net/.org domains.
.xyz likely hasn’t seen the worst of its total shrinkage yet.
When eNom pushed free .info domains into its customers’ accounts about 10 years ago the renewal rate on those names was virtually zero.

New gTLD trade group launches

A group of new gTLD registries have got together to form the TLD Operator Community, a new “think tank” devoted to the commercial aspects of running new TLDs.
According to its web site:

The TLD Operator Community is designed to provide all new TLD applicants with an opportunity to share their experiences, learn from each other and focus on the commercial realities of operating a TLD – away from the confines of ICANN, policy or technical discussions.

The group appears to be coordinated right now by ARI Registry Services.
The distinction between the TLD Operator Community and the Domain Name Association appears to be that the DNA has more of a focus on outreach and education beyond the industry.
The new group will hold an introductory webinar June 30 (or July 1, depending on your time zone) featuring speakers from Donuts, Vox Populi, dotBerlin, Barclays and others.

ICM beats own annual projections with .porn on day one

ICM Registry says it managed to comfortably beat its own expectations for annual sales within the first eight hours of .porn and .adult going into general availability yesterday.
CEO Stuart Lawley said that there were 10,038 .porn domains and 8,277 .adult domains in its registry at the end of yesterday.
The company’s new gTLD applications with ICANN had predicted 10,000 .porn domains and 3,000 .adult domains at the end of the first year of availability, he said.
“We are therefore delighted to have exceeded those numbers on day one of GA,” he said. “We are particularly pleased with the high numbers from .adult.”
The majority of the names were registered either during the sunrise periods (ICM had two per TLD) or the recently ended “domain matching” program, which gave .xxx owners first dibs on matching .porn and .adult names.
A month ago, the company said .porn received 3,995 registrations while .adult had 3,902 at the end of the sunrises.
Earlier this week, after domain matching ended, Lawley said that .porn had almost 7,500 names while .adult had almost 7,000.
ICM will launch .sex in September.

Are new gTLD registries ripping off brands with unfair sunrise fees?

Forget .sucks — several less controversial new gTLD registries have come under fire from the likes of Google, Facebook and Adobe for charging sunrise fees as high as $17,000 for domains matching famous trademarks.
According to figures supplied to DI by ICANN’s Business Constituency, the domain instagram.love carries a $17,610 “Premium Name Fee” during the current sunrise period.
Instagram is of course the photo sharing service belonging to Facebook, and to the best of my knowledge not a dictionary word.
The domain facebook.love has a $8,930 fee, these figures show, while google.love costs $6,610, both in addition to sunrise fees of $350 and annual fees of $60.
The regular sunrise fee for .love comes in at $265 at some registrars.
The new gTLDs .design, .video, .wang, .wein, .rich and .top also seem to carry very high fees for brands such as Facebook, according to the BC’s numbers.
Google recently filed a public comment with ICANN which warned:

some registry operators are taking advantage of rights owners during Sunrise by charging exorbitant and extortionate Sunrise registration fees. Although such pricing policies are not strictly within the ICANN compliance mandate, they contravene the spirit of the RPMs [rights protection mechanisms], damage ICANN’s reputation, harm consumers in contravention of ICANN’s mandate to promote the public interest, and create disincentives for rights owners to take advantage of the Sunrise period

Similar comments were sent by the Intellectual Property Constituency, BC, and others.
The issue of registries charging super-high “premium” fees for trademarked names has been on the radar of the BC and the IPC since at least 2013.
It seems that in at least some cases, trademark owners are being hit with the higher fees because their marks are dictionary words that the registry has identified as premium due to their regular meaning.
For example, adobe.design is on the list of names provided by the BC, carrying a $1,175 registration fee.
But Andrew Merriam, director of business development at .design registry Top Level Design, denied that the software company is being targeted. Instead, he said “adobe” refers to the material used in architecture — its dictionary meaning.
He said: “Stucco.design, concrete.design, wood.design, granite.design (and many other materials and building styles) are all on the premium list, at varying prices. In fact, adobe.design is priced on the lower end of all these materials.”
Merriam said the registry’s premium fee for adobe.design is actually $250 and speculated that $1,175 could be the price quoted by Adobe’s brand protection registrar post-markup. It was $349 at Go Daddy, he said.
In other cases, trademarks may have found their way on to premium lists due to a lack of manual vetting by the registry, rather than nefarious targeting.
In the case of instagram.love, Evatt Merchant of .love registry Merchant Law Group told DI that Facebook can buy the name for the normal sunrise fee if it wants.
He told DI that trademark owners should contact the registry if they believe their marks have been wrongly given premium prices. He said:

While it is possible that some brand terms that are frequently googled have ended up on the premium list, valued based on their Google search frequency, there is a simple solution. During the sunrise period, brands seeking non-dictionary trademarked domain names can contact the registry so that a review of individual sunrise pricing can occur. As has already occurred, such requests will often result in the .LOVE TLD voluntarily offering to reduce their sunrise application cost to the base sunrise price and that would certainly be the case for Instagram.

ICANN’s does not regulate pricing in new gTLDs, but nevertheless the IPC and BC and their members have asked ICANN to include premium pricing of trademarked names in its upcoming review of rights protection mechanisms.

Is the Defending Internet Freedom Act pro-crime?

The Defending Internet Freedom Act of 2015, introduced to the US Congress last month, contains a provision that could be interpreted as pro-pron, pro-piracy or even just pro-crime.
The act is designed to prevent the US giving up its oversight of ICANN/IANA unless certain quite strict conditions are met.
It’s a revised version of a bill that was introduced last year but didn’t make it through the legislative process.
Like the 2014 version, it says that the US cannot sever ties with ICANN until its bylaws have been amended in various ways, including:

ICANN is prohibited from engaging in activities unrelated to ICANN’s core mission or entering into an agreement or modifying an existing agreement to impose on a registrar or registry with which ICANN conducts business any condition (such as a condition relating to the regulation of content) that is unrelated to ICANN’s core mission.

It’s the “regulation of content” bit that caught my eye.
Presumably written as a fluffy, non-controversial protection against censorship, it ignores where the real content regulation conversations are happening within the ICANN community.
It’s a constant mantra of ICANN that is “doesn’t regulate content”, but the veracity of that assertion has been chipped away relentlessly over the last several years by law enforcement, governments and intellectual property interests.
Today, ICANN’s contracts are resplendent with examples of what could be argued is content regulation.
Take .sucks, for a timely example. Its Registry Agreement with ICANN contains provisions banning pornography, cyber-bulling and parked pages.
That’s three specific types of content that must not be allowed in any web site using a .sucks domain.
It’s one of the Public Interest Commitments that were voluntarily put forward by .sucks registry Vox Populi, but they’re still enforceable contract provisions.
Using a dispute resolution process (PICDRP), ICANN would be able to levy fines against Vox Pop, or terminate its contract entirely, if it repeatedly allows porn in .sucks web sites.
This sounds quite a lot like content regulation to me.
It’s not just .sucks, of course. Other registries have PICs that regulate the content of their gTLDs.
And every contracted new gTLD registry operator has to agree to this PIC:

Registry Operator will include a provision in its Registry-Registrar Agreement that requires Registrars to include in their Registration Agreements a provision prohibiting Registered Name Holders from distributing malware, abusively operating botnets, phishing, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law, and providing (consistent with applicable law and any related procedures) consequences for such activities including suspension of the domain name.

It’s convoluted, but it basically indirectly forces (via registrars) new gTLD domain registrants to, for example, agree to not infringe copyright.
The PIC is paired with a provision (3.18) of the 2013 Registrar Accreditation Agreement that requires all registrars to investigate and “take necessary and appropriate actions” in response to abuse reports within 24 hours of receipt.
Section 3.18 is essentially the RAA mechanism through which ICANN can enforce the PIC from the RA.
This is currently one of the most divisive issues in the ICANN community, as we witnessed during the recent Congressional hearings into ICANN oversight.
On the one hand, big copyright owners and online pharmacy watchdogs want ICANN to act much more ruthlessly against registrars that fail to immediately take down sites that they have identified as abusive.
On the other hand, some registrars say that they should not have to engage in regulating what content their customers publish, at least without court orders, in areas that can sometimes be amorphously grey and fuzzy.
Steve Metalitz, from a trade group that represents the movie and music industies at ICANN, told the US Congress that registrars are dismissing piracy reports without investigating them, and that “unless registrars comply in good faith, and ICANN undertakes meaningful and substantive action against those who will not, these provisions will simply languish as empty words”.
John Horton from pharmacy watchdog used the same Congressional hearing to out several registrars he said were refusing to comply with 3.18.
One Canadian registrar named in Horton’s testimony told DI that every complaint it has received from LegitScript has been about a web site that is perfectly legal in Canada.
In at least some cases, it seems that those pushing for ICANN to more stringently regulate content may have “internet freedom” as the least of their concerns.
If the Defending Internet Freedom Act becomes law in the US, perhaps it could prove a boon to registries and registrars upset with constant meddling from rights owners and others.
On the other hand, perhaps it could also prove a boon for those operating outside the law.

Group uses FOI to demand entire .nyc Whois database

Former .nyc hopeful Connecting.nyc has requested a dump of the entire .nyc Whois database using freedom of information legislation.
According to a blog post, the group has filed a request under the New York Freedom of Information Law for all 75,000 Whois records.
Connecting.nyc says it wants the data in order to plot every .nyc registrant on a map of the city to see “if the name purchasers were spread evenly over the city or concentrated in a particular neighborhood or borough. And if they were from a particular social or economic strata.”
It says it has spent 10 weeks asking for the data via email but has been rebuffed.
Under ICANN Registry Agreements, registries are under no obligation to offer bulk Whois access. Registrars are supposed to allow it under their accreditation agreements, but are allowed to charge huge sums.
The .nyc space does not allow private registrations. Its Whois data is all publicly accessible and could conceivably be mined via sequential queries.
The new gTLD is managed by Neustar but assigned to the City of New York, making it essentially government-owned.
It will be interesting to see whether Whois access falls under FOI law. Many other geographic gTLDs have government links and may fall under their own respective FOI legislation.
Connecting.nyc once intended to apply for .nyc itself, but is now a sort of self-appointed community watchdog for the gTLD. It’s an At-Large structure within ICANN.

ICANN’s new gTLD survey gives new gTLD awareness numbers

ICANN has released the results of a huge survey focusing on awareness and trust in gTLDs new and old.
The headline number is 46% — that’s the how many of the 6,144 international survey respondents said they were aware of new gTLDs.
The respondents were asked this question:

As you may or may not know, new domain name extensions are becoming available all the time. These new extensions are called new gTLDs.
Which of the following new gTLDs, if any, have you heard of? Please select all that apply.

They were presented with a list comprising .email, .photography, .link, .guru, .realtor, .club and .xyz. These were the biggest seven Latin-script new gTLDs when the survey was developed in January.
Tellingly, .email and .link stole the show, with 28% and 24% awareness respectively. The other five options ranged from 13% for .club to 5% for .xyz.
I think the numbers were influenced by some respondents not quite understanding the question. People are familiar with email and with links as internet concepts, which may have swayed the results.
Akram Atallah, president of ICANN’s Global Domains Division, acknowledged this potential problem in ICANN’s announcement last night, saying:

The survey found that domains with an implied purpose and functional associations, such as .EMAIL, were most often recalled by Internet users. While some of the drivers may be linked to familiarity and general association versus awareness of the extension, we believe it’s a signal that people are receptive to the names.

It’s also notable that, almost 15 years after launch, .biz and .info only have 50% awareness, according to the survey. For .mobi. .pro, .tel and .asia, all released between 2004 and 2008, the awareness was at 37%.
It’s not impossible that new 2012 round — which has generated thousands of headlines — has raised more awareness of new gTLDs.
The survey found that 38% of internet users who were aware of new gTLDs have visited a .email web site in the last year. The number was 28% for .link.
The survey also found that 52% of respondents would consider using a new gTLD if they were setting up a web site in the next six months. The number ranged from 40% for .email to 22% for .xyz.
Among the plethora of other findings, the survey discovered that only 92% of internet users have heard of .com.
Go figure.
The entire survey, carried out by Nielsen, can be found here.
UPDATE: This article was substantially revised a few hours after publication to remove references to the numbers being “nonsense”. This was due to my misreading of the survey questionnaire. My apologies for the confusion.

Two more legacy gTLDs agree to use URS

The registries behind .pro and .cat have agreed to new ICANN contracts with changes that, among other things, would bring the Uniform Rapid Suspension policy to the two gTLDs.
Both gTLD Registry Agreements expire this year. Proposed replacement contracts, based heavily on the base New gTLD Registry Agreement, have been published by ICANN for public comment.
They’re the second and third pre-2012 gTLDs to agree to use URS, which gives trademark owners a simpler, cheaper way to have infringing domains yanked.
Two weeks ago, .travel agreed to the same changes, which drew criticisms from the organization that represents big domain investors.
Phil Corwin of the Internet Commerce Association is worried that ICANN is trying to make URS a de facto consensus policy and thereby bring it to .com, which is still where most domainers have most of their assets.
Following DI’s report about .travel, Corwin wrote last week:

this proposed Registry Agreement (RA) contains a provision through which staff is trying to preempt community discussion and decide a major policy issue through a contract with a private party. And that very big issue is whether Uniform Rapid Suspension (URS) should be a consensus policy applicable to all gTLDs, including incumbents like .Com and .Net.

ICANN needs to hear from the global Internet community, in significant volume, that imposing the URS on an incumbent gTLD is unacceptable because it would mean that ICANN staff, not the community, is determining that URS should be a consensus policy and thereby undermining the entire bottom-up policy process. Domain suspensions are serious business – in fact they were at the heart of the SOPA proposal that inspired millions of emails to the US Congress in opposition.

The concern about .com may be a bit over-stated.
Verisign’s current .com contract is presumptively renewed November 2018 provided that it adopts terms similar to those in place at the five next-largest gTLDs.
Given that .net is the second-largest gTLD, and that .net does not have URS, we’d have to either see .net’s volume plummet or at least five new gTLDs break through the 15 million domains mark in the next three years, both of which seem extraordinarily unlikely, for .com to be forced to adopt URS.
However, if URS has become an industry standard by then, political pressure could be brought to bear regardless.
Other changes to .pro and .cat contracts include a change in ICANN fees.
While .pro appears to have been on the standard new gTLD fee scheme since 2012, .cat is currently paying ICANN $1 per transaction.
Under the new contract, .cat would pay $0.25 per transaction instead, but its annual fixed fee would increase from $10,000 to $25,000.

.sucks extends controversial sunrise, delays GA

Vox Populi has extended the pricey .sucks sunrise period for three weeks, saying trademark owners need more time to participate.
Sunrise was due to end this week, with general availability kicking off today.
But Vox Pop has extended the period to June 19, with GA starting two days later.
In an email blast to fellow attendees of the INTA 2015 intellectual property conference, the registry said it has “discovered that far too many intellectual property lawyers and company executives were unaware of the registry or the availability of its names.”
Other brands were unaware of the Trademark Clearinghouse, the email said.
“Additionally, we have seen an influx of applications in the final days and hours of our TMCH Sunrise Period,” Vox Pop said.
“We are concerned about the extent of awareness and rush, and so have decided that the responsible move is to add a bit more time to the equation by extending the TMCH Sunrise period,” it said.
The change in timings have been announced on the registry’s web site.
While it’s possible to read the move cynically — a way for Vox Pop to claw more cash from rights holders — it’s not particularly unusual.
It is not unheard of for launching TLDs to extend their sunrise periods in order to deal with late demand.
Anecdotally, trademark owners tend to delay sunrise purchasing decisions until towards the end of sunrise windows, creating the impression of growing demand and adding pressure to processing cycles.
The .sucks sunrise has come under fire for its pricing — a $1,999 registry fee that is being marked up by registrars by everything from $20 to many hundreds of dollars.

.berlin CEO prime suspect in ICANN data breach

dotBerlin CEO Dirk Krischenowski is suspected of using a bug in ICANN’s new gTLD portal to access hundreds of confidential documents, some containing sensitive financial planning data, belonging to competing gTLD applicants.
That’s according to ICANN documents sent by a source to DI today.
Krischenowski, who has through his lawyer “denied acting improperly or unlawfully”, seems to be the only person ICANN thinks abused its portal’s misconfigured search feature to deliberately access rivals’ secret data.
ICANN said last night that “over 60 searches, resulting in the unauthorized access of more than 200 records, were conducted using a limited set of user credentials”.
But ICANN, in private letters to victims, has been pinning all 60 searches and all 200 access incidents on Krischenowski’s user credentials.
Some of the incidents of unauthorized access were against applicants Krischenowski-run companies were competing against in new gTLD contention sets.
The search terms used to find the private documents included the name of the rival applicant on more than one occasion.
In more than once instance, the data accessed using his credentials was a confidential portion of a rival application explaining the applicant’s “worst case scenario” financial planning, the ICANN letters show.
I’ve reached out to Krischenowski for comment, but ICANN said in its letters to victims:

[Krischenowski] has responded through legal counsel and has denied acting improperly or unlawfully. The user has stated that he is unable to confirm whether he performed the searches or whether the user’s account was used by unauthorized person(s). The user stated that he did not record any information pertaining to other users and that he has not used and will not use the information for any purpose.

Krischenowski is a long-time proponent of the new gTLD program who founded dotBerlin in 2005, many years before it was possible to apply.
Since .berlin launched last year it has added 151,000 domains to its zone file, making it the seventh-largest new gTLD.
The bug in the ICANN portal was discovered in February.
The results on an audit completed last month showed that over the last two years, 19 users used the glitch to access data belonging to 96 applicants and 21 registry operators.
There were 330 incidents of unauthorized access in total, but ICANN seems to have dismissed the non-“Krischenowski” ones as inadvertent.
An ICANN spokesperson declined to confirm or deny Krischenowski is the prime suspect.
Its investigation continues…