Dengate Thrush quits TLDH

Peter Dengate Thrush, executive chairman of new gTLD portfolio applicant Top Level Domain Holdings, has decided to quit not much more than a year into the job.
According to a press release, Dengate Thrush will leave the company in January 2013, to be replaced by original chair Fred Krueger.
No reason for the departure was given.
When he joined TLDH, his share option package envisaged him sticking around until at least July 2014.
Dengate Thrush will continue to advise some of TLDH’s new gTLD applicant clients after he leaves, according to the press release.
His decision to join TLDH in July 2011, just a few weeks after helping to push through approval of the new gTLD program as ICANN’s chairman, was a nodal point in ICANN’s recent evolution.
It led directly to strict conflict of interest rules being put in place on ICANN’s board, which are now being criticized by some contracted parties for removing vital expertise from the board.
It also gave plenty of ammunition to those who criticize ICANN for being too focused on enriching its insiders.
TLDH has applied for 70 gTLDs, and its Minds + Machines subsidiary is the named back-end provider for several more.

Original .web gTLD applicant sues ICANN

Image Online Design, which unsuccessfully applied for the .web gTLD all the way back in 2000, has sued ICANN, alleging trademark infringement and breach of contract.
IOD, which says it has over 20,000 .web domains under management in an alternate root, says ICANN never officially rejected its .web bid, and that it should not have allowed other companies to apply for it.
It’s looking for an injunction preventing ICANN awarding .web to any other company, as well as seeking ICANN’s “profits” resulting from the alleged infringement of its mark.
There are seven .web applicants in the current round, but IOD is not among them.
The company paid $50,000 for its application in 2000, but it’s not happy with the $86,000 discount ICANN offered 2000-round applicants on their $185,000 fees if they wanted to resubmit their applications.
The IOD complaint claims:

Allowing other entities to file applications for a .web TLD while IOD’s .WEB TLD application was still pending is improper, unlawful and inequitable.

The complaint cites the November 2000 ICANN meeting in Marina Del Rey, during which the first proof-of-concept gTLDs were approved by ICANN’s board of directors.
It notes that then-chair Vint Cerf steered the board away from approving .web applications filed by Afilias and others because IOD was already operating .web in an alternate root at the time.
You can watch a video of that meeting here.
The complaint also alleges tenuous conflicts of interest between two .web applicants (Afilias and Google) and members of ICANN’s board of directors (current chair and vice-chair Steve Crocker and Bruce Tonkin in the case of Afilias, and long-gone chair Vint Cerf in the case of Google).
The suit comes just a few days after IOD’s fellow 2000 applicant and alternate root player, Name.Space, sued ICANN on similar grounds, trying to prevent 189 gTLDs being approved.
Here’s the IOD complaint.

Company files for injunction against 189 new gTLDs

Alternate root player Name.Space has sued ICANN for trademark infringement and anti-competitive behavior, saying “insiders” have conspired to keep it out of the new gTLD program.
If successful, the suit would prevent dozens of new gTLD applicants from having their applications approved.
The lawsuit, filed in California this week, follows a warning the company fired at ICANN this March.
While only ICANN is named as a defendant, the suit alleges that the new gTLD program was crafted by and is dominated by “ICANN insiders” and “industry titans”.
It wants an injunction preventing ICANN delegating any of the 189 gTLD strings that it claims it has rights to.
It also fingers several current and former ICANN directors, including current and former chairs Steve Crocker and Peter Dengate Thrush, over their alleged conflicts of interest.
Name.Space has been operating 482 diverse TLDs — such as .news, .sucks, and .mail — in a lightly used alternate root system since 1996.
Most people can’t access these zones and are unaware that they exist.
The company applied to have 118 of these strings added to the root in ICANN’s “proof of concept” gTLD expansion in 2000, when the application fee was $50,000, but was unsuccessful.
Now, the company claims the new gTLD program is “an attack on name.space’s business model and a mean by which to create and maintain market power in the TLD markets”.
The complaint (pdf) states:

Rather than adopting a procedure to account for the pending 2000 Application and facilitate the expansion of TLD providers in the DNS, ICANN has adopted a procedure so complex and expensive that it once again effectively prohibited newcomers from competing. It instead has permitted participation solely by ICANN insiders and industry titans.

If it had applied for all 118 again in this year’s round, it would have cost almost $22 million (though it would have qualified for an $83,000 discount on a single bid).
Name.Space is asking for damages and an injunction preventing ICANN from approving 189 gTLDs that match those it currently operates in its alternate root.
The full list of affected applications is attached to the complaint.

Nominet chair rebuts “skewed and inaccurate” whistleblower claims

Nominet chair Baroness Rennie Fritchie has apologized for “embarrassment” caused by leaked emails that suggested Nominet and UK officials tried to avoid freedom of information laws.
But she has rebutted allegations that Nominet executives conspired to orchestrate a government takeover of the .uk namespace during a fractious board dispute back in 2008.
In a statement to Nominet members today, Fritchie said she has conducted a “fact-finding review” of the allegations and had “concluded that Nominet did not manufacture Government concern.”
As we reported a month ago, former policy director Emily Taylor made a number of claims about Nominet’s actions in 2008, when executives perceived a threat to control of the board by certain vocal domainers.
In order to ensure a friendlier board, Nominet approached the UK government for help, according to Taylor.
This led to an independent review, a restructuring of Nominet’s board, and powers for the government to take over the running of .uk being included in the Digital Economy Act of 2010.
Nominet has maintained, and Fritchie now says she has confirmed, that the concerns originated with the government, BT and the Confederation of British Industry, and not the other way around.
Fritchie wrote:

we have been extremely disappointed to see that correspondence from a troubled time in Nominet’s history has led to a skewed and inaccurate interpretation of events.
…
Having personally considered all available evidence, I have concluded that Nominet did not manufacture Government concern. There were longstanding issues, and the failure to win support for the proposed improvements in our governance at the AGM in 2008 was the catalyst that put Nominet’s problems firmly in the spotlight.
I have also been reassured that the concerns raised by CBI and BT representatives immediately following the 2008 AGM were not concocted by Nominet.

It also emerged last month that UK government officials and Nominet executives had been communicating via private email accounts, apparently in order to avoid Freedom of Information Act requirements.
One Nominet email from 2008 provided to DI signed off with “It feels wonderful to work free from fear of FOI !!”
It is for this email that Fritchie appears to be apologizing. She wrote:

We would however like to apologise for the embarrassment caused to members by an inappropriate suggestion, made in an email from a Nominet employee, that information could or should be deleted by officials to avoid an anticipated Freedom of Information request. This was a misguided attempt to ensure that open and honest conversations about how to secure the membership model of Nominet could take place, without being inappropriately influenced by those with vested interests. I would like to assure members that this was the result of troubled times, and is not at all representative of the way that Nominet operates.

The message was posted to Nominet’s members-only forum this afternoon.
The story may not be over yet, however.
Last month, Andrew Smith, Member of Parliament for Nominet’s home town of Oxford, told DI that he had referred Taylor’s freedom of information claims to Head of the Home Civil Service and the Chair of the Department of Culture, Media and Sport Select Committee.
“These are very serious matters and it is important they are properly investigated,” he said.

Directi to relaunch .pw as an open TLD

Directi will soon relaunch .pw, the ccTLD for the tiny Micronesian nation of Palau, as an open pseudo-gTLD.
The official launch of the registry will happen at the ICANN meeting in Toronto next week, according to Directi CEO Bhavin Turakhia, with a sunrise period kicking off in December.
It’s the first TLD for which Directi — an applicant for 30 new gTLDs as well as a top-ten registrar — will act as the registry.
The company will brand the offering around the retroactive acronym “Professional Web”.
Turakhia hopes success will come from a combination of low cost — registry fees are not yet finalized, but will be sub-.com, he said — and the fact that .pw is mostly virgin territory.
“It’s a pretty good pricing model,” he said. “We’re making sure that people have access to desirable names at an affordable cost.”
The company plans to run .pw “exactly like a gTLD”, with standard sunrise, landrush and registration lifecycle policies. It will even adopt the UDRP, Turakhia said.
CentralNic, which already runs subdomain services such as .gb.com and .us.com, has been hired to run the back-end, despite the fact that Directi is using ARI Registry Services for its gTLD bids.
Sunrise is expected to start in early December and run for about 70 days. Landrush will run for a month, starting in February 2013. Pricing has yet to be finalized.
Directi is currently looking for registrars to sell the domains, above and beyond its own network of registrars.
Directi obtained the exclusive license to .pw about four years ago via EnCirca, the registrar that attempted to relaunch .pw under the “Personal Web” slogan in 2004.
The company originally planned to use the second level as a bundled service to tie in with a social networking slash instant messaging product that it was working on, but those plans have changed.
As a result .pw hasn’t been accepting registrations for a while.
Palau is a Pacific island nation with only about 20,000 citizens. As such, .pw doesn’t have a great many legacy registrations.
One such registration is pay.pw, which Directi is using for a payment gateway service.
Turakhia said that six second-level domains have been reserved for Palau’s use: co.pw, ne.pw, or.pw, ed.pw, go.pw and belau.pw. No other two-letter domains will be available.

.cialis and .chatr new gTLD bids dumped

Two more new gTLD applications have been formally withdrawn.
ELi Lilly & Co has dropped its bid for .cialis and Rogers Communications has withdrawn its .chatr application.
Both were dot-brand applications — Cialis is a drug and Chatr is a Canadian wireless company — and neither was contested, though there are four applications for the very similar .chat.
This makes a total of six dead bids, following Google’s withdrawal of .est, .and and .are and German pump-maker KSB withdrew its dot-brand .ksb.
From ICANN’s statements, we know that there’s at least one other bid that is in the process of being withdrawn, but its identity is not yet known.

doMEn uses comedy compo to plug .me domains

doMEN, the .me registry, is marketing .me domain names with a series of comedy videos, presented in the form of a knockout competition and sweepstake.
The three-week “Comedy Cagematch” will see 30-second videos featuring 16 comedians being voted on by internet users. Voting gets you the chance to win a $500 camera.
The campaign has been put together by comedy-focused ad agency RadioFace, which has already produced this video featuring stand-up TJ Miller.

Apparently, if you have a .com you also have to use words like “problopportunity” (which I thought was pretty funny).
The promotion starts on Register.me from October 8. Only Americans and Canadians can enter the sweepstakes.

Worldwide domains up to 240 million

There are now more than 240 million registered domain names on the internet, according to Verisign.
Its latest Domain Name Industry Brief reports that a net of 7.3 million names were added across all TLDs in the second quarter, a 3.1% sequential increase, up 11.9% on Q2 2011.
Verisign’s own .com and .net hit 118.5 million domains by the end of June, up 1.6% sequentially and 7.8% year-over-year. Renewals were at 72.9%, down from 73.9% in Q1.
The company reported that new .com and .net registrations in the period totaled 8.4 million.

ResellerClub sells 11,000 .pro domains in a month

Directi says it sold 11,000 .pro domains via its ResellerClub channel in the first month after it started supporting the TLD.
That’s pretty impressive going, given that the whole of .pro was only about 155,000 domains at the last count, enough to put the registrar into fifth place for .pro domains under management.
ResellerClub’s wholesale price until October 31 is $2.99, with two free email accounts, according to the company.
The surge will prove useful to .pro registry Afilias, which expects to see over 40,000 domains — all of them US Zip codes registered to .pro’s former owner Hostway — drop this month.

ICM files $120m lawsuit over Manwin’s .xxx “boycott”

ICM Registry has counter-sued YouPorn owner Manwin Licensing, looking for at least $120 million in damages, saying the porn giant is using its market power to sideline the .xxx domain.
The company claims that Manwin’s antitrust lawsuit, filed last October, is merely one of several attacks against its business.
The counter-suit alleges that Manwin, after trying and failing to invest in ICM, illegally restrained trade by forcing its business partners not to do business with ICM.
The suit (pdf) reads:

Manwin has utilized its dominance in the adult entertainment industry to encourage the wholesale boycott of the .XXX TLD in the industry in order to destroy any competition tat may arise from the commercialization of .XXX and has secured agreement, either express or implied, by those within the industry that they will not do business with .XXX.

Manwin, for example, “coerced .XXX spokesmodels to end relationships with ICM” and “conditioned contracts with third parties on their non-involvement with the .XXX TLD”, according to ICM.
The counterclaims were filed in a California court on Friday, as the latest stage of the two companies’ ongoing legal battle.
The registry is looking for $40 million in damages for Sherman Act violations, trebled.
Manwin claims ICM and ICANN broke US competition law by setting up the .xxx “monopoly”, which both ICANN and ICM deny.