Neustar pays $109 million for .CO Internet

Four years after relaunching the Colombian ccTLD .co as a global top-level domain, .CO Internet has been acquired by its long-time partner Neustar for $109 million.
The .co registry will become a wholly-owned subsidiary of Neustrar, which already runs .biz and .us, following the close of the deal.
.CO recorded revenue of $21 million in 2013, of which Neustar took $4 million as its back-end registry provider, according to Neustar.
The .co zone currently stands at about 1.6 million names, according to the companies. That seems to mean it added roughly 200,000 net new names in 2013, judging by its 2012 numbers.
The company relaunched .co in 2010, having jointly bid with Neustar for a Colombian government contract.
It was the last truly impressive TLD launch, with 200,000 registrations on day one and over 1 million in its first year.
While the space is still stuffed with speculators, unlike some other TLDs .co is also widely, visibly used by its intended audience — start-ups and entrepreneurs.
.CO is known primarily for its marketing acumen — some new gTLD registries could learn a thing or two — which Neustar CEO Lisa Hook raised as a selling point in today’s press release:

By combining .CO Internet’s innovative domain marketing capabilities with Neustar’s distribution network and technical resources, we will be able to broaden our registry services and the .co brand worldwide, while creating shareholder value.

Neustar expects the deal to close within a month.

TLD Registry sells 20k+ IDN gTLD names to Chinese gov

TLD Registry has sold 20,452 new gTLD domain names to the Chinese government as it prepares to launch .中文网 (“.chinesewebsite”) and .在线 (“.online”) tomorrow.
The deal, signed this week with the Service Development Center of the State Council Office for Public Sector Reform (SCOPSR) is for 10,226 names in each gTLD.
The domains include the Chinese-script names of every city in China with a population of over 200,000, as well as counties, municipalities and other regional names.
Strings that translate to things like “invest in [place name]” and “tourism [place name]” have also been registered to the government in both TLDs, according to the company.
It looks like this is the first significant anchor tenant deal we’ve seen in the new gTLD program.
Assuming China actually uses these names, it could be great publicity for the new registry’s gTLDs. The government has a policy of transitioning all of its services to fully IDN.IDN domains.
If not, it still means that both gTLDs stand to launch with over 10,000 names in each zone file on day one, even before regular registrants have had a chance to buy them.
The company is also set to auction a bunch of premium names in both namespaces on Friday simultaneously via Sedo and a live event at a private members’ club in Macau.
I’m posting this from Hong Kong airport, en route to the Macau event. As a matter of disclosure: TLD Registry is paying for my flights and accommodation.

Weirdest new gTLD launch yet? .wed launches with a single registrar

The new gTLD .wed went into sunrise yesterday with the strangest pricing model yet and a stringent Registry-Registrar Agreement that seems to have scared off all but one registrar.
Atgron is positioning .wed as a space for marrying couples to celebrate their weddings, but only temporarily.
It seemingly has little interest in domain investors or ongoing customer relationships beyond one or two years.
If you register a second-level .wed domain, you can have it for $150 a year for the first two years, according to the Atgron web site. After that, the price rockets to $30,000 a year.
Registrars, resellers and wedding-oriented businesses are allowed to opt out of the third-year spike on their own .wed names if they join Atgron’s reseller program and sell at least 10 a year.
Unlike Vox Populi, which is actively marketing .sucks domains at $25,000 as a reasonable value proposition, Atgron jacks the price up as a deterrent to registrants holding on to names too long. It says:

.WED domain names are sold to couples for one or two years to celebrate their wedding. The domain names then become available to another couple… Mary and John can have MaryandJohn.WED and then YES the next Mary and John can have MaryandJohn.WED a year or two later and so on and so on.

That alone would be enough to put off most registrars, which value the recurring revenue from ongoing annual renewals, but I gather that the .wed RRA contains even more Draconian requirements.
Incredulous registrars tell me that Atgron wants them to create an entirely new web site to market .wed domains — they’re not allowed to sell the names via their existing storefronts.
The only registrar to bite so far is EnCirca, known historically for promoting obscure gTLDs such as .pro and .travel, which is selling .wed via a new standalone site at encirca.wed.
I also gather that Atgron won’t let registrars opt out of selling its third-level .wed domains, which are expected to go for about $50 a year with no third-year spike.
That didn’t work well for .name — registrars hated its three-level structure, forcing the registry to ultimately go two-level — and I don’t think it’s going to work for .wed either.
Registrars also tell me that Atgron wants to ban them from charging a fee for Whois privacy on .wed domains. They can offer privacy, but only if it’s free to the registrant.
With privacy a relatively high-margin value-add for registrars, it’s hardly surprising that they would balk at having this up-sell taken away from them.
As weird as this all sounds, it is of course an example of the kind of innovative business models that the new gTLD program was designed to create. Mission accomplished on that count.
Another thing the program was designed to create is competition, something Atgron will soon encounter when Minds + Machines arrives with .wedding and eats .wed’s lunch. In my view.
The .wed launch period is also quite unusual.
Atgron is running a landrush period concurrently with its 30-day sunrise period.
Even if you don’t own a trademark, you can apply for a .wed domain today. You’ll get a refund if your name is registered by a trademark owner during sunrise, and names won’t go live until April 20.
The registry has extended the 90-day Trademark Claims period to cover the sunrise period too, so it appears to be in compliance with ICANN rights protection rules on that count.
It’s a 30-day sunrise, so it’s first-come, first served if you’re a trademark owner.
As for sunrise pricing, the third-year spike appears to apply too.
Atgron documentation does say there’s going to be an option to purchase a 10-year trademark block for a one-time fee, but I couldn’t find any way to do this on the EnCirca.wed web site today.

Verisign stock punished after US move from root control

Verisign’s share price is down around 8% in early trading today, after analysts speculated that the US government’s planned move away from control of the DNS root put .com at risk.
The analyst firm Cowan & Co cut its rating on VRSN and reportedly told investors:

With less US control and without knowledge of what entity or entities will ultimately have power, we believe there is increased risk that VRSN may not be able to renew its .com and .net contracts in their current form.

It’s complete nonsense, of course.
The US announced on Friday it’s intention to step away from the trilateral agreements that govern control of the root between itself, ICANN and Verisign. But that deal has no dollar value to anyone.
What’s not affected, as ICANN CEO Fadi Chehade laboriously explained during his press conference Friday, are the contracts under which Verisign operates .com and .net.
The .com contract, through which Verisign derives most of its revenue, is slightly different to regular gTLD contracts in that the US has the right to veto terms if they’re considered anti-competitive.
The current contract, which runs through 2018, was originally going to retain Verisign’s right to increase its prices in most years, but it was vetoed by the US, freezing Verisign’s registry fee.
So not only has the US not said it will step away from .com oversight, but if it did it would be excellent news for Verisign, which would only have to strong-arm ICANN into letting it raise prices again.
Renewal of the .com and .net contracts shouldn’t be an issue either. The main rationale for putting .com up for rebid was to improve competition, but the new gTLD program is supposed to be doing that.
If new gTLDs, as a whole, are considered successful, I can’t see Verisign ever losing .com.
Verisign issued a statement before the markets opened today, saying:

The announcement by NTIA on Friday, March 14, 2014, does not affect Verisign’s operation of the .com and .net registries. The announcement does not impact Verisign’s .com or .net domain name business nor impact its .com or .net revenue or those agreements, which have presumptive rights of renewal.

Donuts: “eco” registrants could get their names back

Registrants whose domains were deleted by Donuts this week could get their names back, should ICANN release them from its reserved lists in future, the company said today.
In an email to affected registrants, believed to number a few dozen, Donuts said:

We are actively lobbying ICANN to make the domain names you registered available to you. We hope to be successful and, though you are under no obligation to do so, we think it would be helpful if you voiced your opinion to ICANN about it directly.
To get these domain names to you as soon as possible, we are maintaining a record of your details in the event ICANN releases these names for registration. If and when ICANN does, we will contact you and have these names registered to you for free.

The only names affected by the screw-up were “eco” and “00” at the second level in any of Donuts new gTLDs.
The company had accidentally removed both strings from its list of reserved names, making the domains available for registration.
The string “eco” is reserved because it matches the acronym of the Economic Cooperation Organization, an intergovernmental organization, while “00” is reserved along with all two-character strings.
Whether “eco” is released will rather depend on whether the ICANN board of directors sides with the Generic Names Supporting Organization, which wants acronyms removed from the reserved list, or the Governmental Advisory Committee, which wants the protection to remain.
For “00”, it’s a slightly different story. There’s no move I’m aware of to relax the two-character rule, which is designed to protect current and future ccTLDs.
But it does seem a bit strange for numeric domains to be reserved in this way, given that there’s virtually no chance of a future nation being assigned a numeric country code by the UN.
It may not be impossible for “00” to be released, but I think it might take a bit longer.

Donuts’ “eco” debacle affected two-character domains too

Donuts has clawed back a couple dozen premium domain names from their erstwhile owners after accidentally selling names that were supposed to be restricted.
The second-level strings “eco” and “00” were inadvertently released for sale in Donuts’ new gTLDs, even though they’re on ICANN’s lists of names that must not be registered.
After noticing its error, the company started deleting the affected domains, notifying registrants that they would be receiving a refund.
Mike Berkens of The Domains reported that he had lost eco.domains. One of his readers claimed he’d already rebranded his whole company around eco.gallery, costing him dearly.
The domains were deleted because they’re on one of the several lists of reserved names attached to Donuts’ ICANN contracts.
ECO is the acronym for the Economic Cooperation Organization, which is on a temporary list of reservations related to international governmental organizations.
00 is an ASCII two-character label that is supposed to be reserved under a measure designed to prevent clashes with existing and future ccTLDs. The rule also captures numeric strings for some reason.
Donuts said in a statement:

We understand the confusion regarding certain second level registrations. Donuts inadvertently made two strings — “eco” and “00” — available for registration due to a registry error and is sorry for the inconvenience.
We WISH we could sell these names, and frustrating as it may be, these strings are on at least two lists of ICANN-prohibited registrations, so we were obligated to take this step in order for Donuts, registrars and registrants to be in compliance with ICANN requirements.

The IGO acronyms rule is extremely controversial.
It was demanded by ICANN’s Governmental Advisory Committee following requests from IGOs, which generally do not enjoy trademark protection and would be unable to use new gTLD rights protection mechanisms.
But the Generic Names Supporting Organization, representing a more diverse range of interests, came to a unanimous consensus that only the names — not the acronyms — of IGOs should be reserved.
Acronyms of course have multiple uses, as the ECO case amply illustrates. ECO the organization doesn’t even own “eco” in any legacy TLD, operating its web site at ecosecretariat.org.

Will .exposed see a big sunrise?

Donuts’ new gTLD .exposed goes into sunrise today, but will it put the fear into trademark owners?
It’s arguably the first “ransom” TLD to go live in the current round and the first since .xxx, which scared mark holders into blocking over 80,000 domains back in late 2011.
Most new gTLD sunrise periods to date — most of which have been focused on vertical niches — have had sunrise registrations measured in tens or hundreds rather than thousands.
But .exposed, I would say, is in the same free speech zone as yet-to-launch .sucks and .gripe, which lend themselves well to having a company, product or personal name at the second level.
Brand protection registrars are encouraging their clients to pay special attention to this type of gTLD.
Will this cause a spike in sunrise sales for Donuts over the next 60 days?
It might be difficult to tell, given that Donuts also offers brand owners a blocking mechanism via the Domain Protected Marks List service, so the domains don’t show up in the zone files.
But DPML blocks can be overturned by others with matching trademarks, so some trademark owners may decide to register the name instead for an overabundance of caution.

Google giving away 5,000 free new gTLD domains

Google is giving away free .みんな domains.
According to a company spokesperson, the first 5,000 people to submit a .みんな web site idea via a campaign web site will receive a coupon for a free one-year registration in the new namespace.
The offer expires April 5.
The regular retail price at registrars appears to be about $13 a year.
.みんな means “everyone” in Japanese and is apparently pronounced “.minna”. It’s the second IDN gTLD to go to general availability so far, and currently has roughly 2,500 registered names.
The web site appears to show examples of domains that are being registered under the program, as well as commentary from something called Google+, which appears to be some kind of social network.

PIR goes live with three non-Latin .org gTLDs

The internet has its first IDN versions of legacy gTLDs.
Public Interest Registry had three new gTLDs delegated over the weekend, all non-Latin versions of its flagship .org.
The gTLDs were .संगठन, which means “organization” in Hindi, and the Chinese .机构 and .组织机构, which seem to be two ways of saying “organization” too.
They’re not strictly speaking transliterations, as they represent whole dictionary words conceptually related to .org, rather than trying to approximate the spoken sound of “org”.
The .com equivalents Verisign has applied for in other scripts are actually meant to sound the same as “com” without actually meaning “commercial” or “company” in their language.
Because PIR has taken a different approach, there’s no grandfathering for existing .org registrants.
These three new gTLDs will be unrestricted, according to PIR’s applications, but will have slightly stricter rules on abuse — no porn will be allowed, for example.

.secure applicant loses CTO to Yahoo!

Yahoo has reportedly hired a new chief information security officer in the form of Alex Stamos, outspoken CTO of .secure new gTLD applicant Artemis Internet.
The news of Stamos’ departure was first reported by Re/code, citing unnamed sources, a week ago.
Stamos did not respond to a DI request for comment but I gather he’s been flagging up his departure from Artemis on ICANN mailing lists.
According to Re/code, he’s going to be Yahoo’s first CISO for a year.
Stamos’ departure will be a blow for Artemis, which is owned by escrow provide NCC Group. He has been, I think, I pretty good front man for the company over the last couple of years.
I also wonder whether he sensed which way the wind is blowing in the .secure contention set, in which Artemis is in a two-horse race with the much wealthier Amazon.
NCC also recently bought the .trust application from Deutsche Post, which looked a bit to me like a backup plan.