Dropping domains might get more expensive at Donuts

Donuts is planning to change the way its registry handles dropping domains and may charge additional fees for access.

According to a service request filed with ICANN, Donuts wants to migrate its hundreds of gTLDs to the “Dropzone” system originally deployed by Afilias, which the company acquired at the end of 2020.

Instead of domains separately dropping according to their expiry time, Dropzone sees them pooled together into daily batches for a more orderly release.

Registrars are still awarded dropping domains on a first-come, first-served basis, according to when they submit their EPP create requests to the Dropzone environment, according to Donuts.

Donuts reckons this system will allow it to better manage traffic load on its registry. Presumably, registrars won’t need to send so many creates, as the drop time is synchronized for all deleting domains.

It also thinks the process will help level the playing field for registrars trying to register expired domains.

But the ICANN request (pdf) also suggests that, unlike Afilias, it might add additional fees for registrars to access Dropzone:

In addition to the standard or premium registration prices of a given domain name, The Dropzone service can support additional application fees to be configured on a per TLD basis. Applications fees where applicable will be charged in addition to the standard registration price of a domain name.

Such charges would presumably be passed on to registrants.

Afilias’ original request for Dropzone approval stated that the fee to catch a drop would be the same as a standard registration fee.

Registrars will have to reconfigure their systems to use Dropzone, which exists on a separate host.

Afilias’ 21 gTLDs have been using Dropzone since ICANN approved the service last year.

.sucks registry probably “connected” to mass cybersquatter, panel rules

Vox Populi, the .sucks registry, is probably affiliated with and financially benefiting from a mass cybersquatter, a panel of domain experts has said.

In the UDRP case of Euromaster v Honey Salt, a three-person panel handed the complainant the domain euromaster.sucks, ruling that it was a case of cybersquatting.

It’s one of 21 .sucks UDRP complaints filed against Honey Salt, a Turks & Caicos company operating under unknown ownership believed to own hundreds or thousands of brand-match .sucks domains.

It’s lost 17 of the 19 so-far decided cases. It also won one case on a technicality and another early case on the merits after mounting a free-speech defense that subsequent panels have not bought.

What’s new about this one is that the WIPO panel — Lawrence Nodine, Douglas Isenberg and Stephanie Hartung — is the first to follow the money and openly infer a connection between Honey Salt and Vox Pop.

The panel said that it “infer[s] that the Respondent [Honey Salt] and Registry [Vox Pop] are connected”, and that Vox is probably trying to make money by charging trademark owners premium fees for their own brands.

Vox Pop has previously denied such a connection, when I first made the same inference last October.

Regular readers will recall that Honey Salt has registered hundreds of .sucks domains and pointed them to a wiki-style web site called Everything.sucks, ostensibly run by a third-party, US-based non-profit.

Rather than containing original “gripe” content, which could easily enable it to win a free-speech UDRP defense, Everything.sucks simply populates its site with poor-quality, context-free content scraped by bots from social media and third-party web sites such as TrustPilot and GlassDoor.

Originally, each page carried a banner linking to a secondary market page at Uniregistry or Sedo where the domains could be purchased, often at cost price.

That quickly disappeared when the first UDRP cases started rolling in, and earlier this year Everything.sucks said on each page that it refused to sell its domains to anyone, instead offering a free transfer.

It even published the pre-authorized transfer codes on each page, meaning literally anyone could seize control of the domain in question without asking permission from or negotiating with Honey Salt in advance.

The problem with that is that transfers are not free. Some domains are flagged as premium — including lots of brand-matches — and have transfer fees in the thousands of dollars. Even the cheapest still carry the base registry fee.

Many registrars steer well clear of this model, disallowing any .sucks transfers.

One registrar that reliably does allow .sucks transfers is Rebel, which is sister company to Vox Pop under the Momentous group of companies. It offers .sucks domains at the registry wholesale fee, which is $200 for an non-premium.

It’s been painfully obvious since the outset that the only parties that stand to make a profit on the Everything.sucks business model are the registry and its affiliated companies — it simply doesn’t make sense that Honey Salt would invest hundreds of thousands of dollars in trademark-infringing domains, simply to hand them over at cost.

But the Euromaster panel is the first to infer the connection, or at least the first to publicly infer the connection.

Euromaster had filed a supplemental document in its complaint pointing out that the “free” transfer of euromaster.sucks would in fact cost a “premium” fee of $2418.79. The registrar quoting that fee is not revealed.

The WIPO panel asked Honey Salt for an explanation and it sounds like it got a bunch of procedural waffle in response.

This led to the following discussion, to which I’ve added some emphasis:

The Panel also finds that Respondent [Honey Salt] has failed to show that it has no financial interest in the Disputed Domain Name. Complainant’s Supplemental submissions demonstrate that Complainant’s chosen registrar quoted a fee of USD 2418.79 to transfer the Disputed Domain Name. Complainant’s report is consistent with M and M Direct Limited v. Pat Honey Salt, Honey Salt Limited, WIPO Case No. D2020-2545, where a different panel conducted an independent investigation and reported that the domain name at issue in that case was not offered “free” as promised, but instead that registrars classified the domain names at issue as “premium” and quoted transfer fees of USD 3,198 and USD 4,270 respectively.

This directly contradicts any claim to be offering a free and noncommercial service, and given that any registration would result in a fee being paid to the Registry by a registrar, leads the Panel to infer that the Respondent [Honey Salt] and Registry [Vox Pop] are connected.

Given the prior decision in M and M Direct, and the evidence that Complainant’s Supplemental submissions, the Panel afforded Respondent an opportunity to submit additional argument and evidence to explain the inconsistency. Respondent made no effort to do so, but instead only opposed consideration of Complainant’s supplemental evidence and repeated its previous contentions. The Panel rejects the objections to Complainant’s Supplemental submission, and emphasizes that Respondent was given an opportunity fully to respond.

The Panel finds that Complainant’s evidence raises substantial questions about the credibility of Respondent’s assertion that it has no financial interest in the Disputed Domain Name and whether Respondent’s offer to transfer the Disputed Domain might, directly or indirectly, financially benefit Respondent. Accordingly, the Panel finds that Respondent has not carried its burden to show that its use is noncommercial

In other words, the panel suspects that Vox Pop is in on Honey Salt’s bulk-cybersquatting game.

The closest any other UDRP panel has come to making this link was in a recent case filed by multiple, unrelated trademark owners, where the panel, while denying the complaint on procedural grounds, suggested that aggrieved trademark owners instead invoke ICANN’s Trademark Post Delegation Dispute Resolution Procedure.

The Trademark PDDRP is a mechanism — so far unused and untested — that allows trademark owners to allege registry complicity in cybersquatting schemes. Think of it like UDRP for cybersquatting registries.

Frankly, I’m amazed it hasn’t been used yet.

Second-level .au names coming next March with tight deadline

Australia will soon become the latest country with an historical three-level ccTLD structure to offer second-level domains directly under .au.

Local registry auDA said today that direct SLD regs will become available next March.

It’s not the first country to do this — Australia follows the UK and New Zealand in de-emphasizing .co.nz and .co.uk in favor of SLDs.

But it’s giving registrants a much shorter deadline to claim their matching domains.

Unlike the UK, where registrants had five years to grab their matches before they became generally available, Aussies will only get six months.

Existing registrants will get first refusal on their matching domains. In cases of contention — where the .com.au and .net.au are registered to different people, for example — the registrant with the oldest domain gets priority.

Australian presence rules also apply.

.za back-end deal up for grabs

South African domain authority ZADNA has let it be known that it’s opening up the .za back-end contract to bids.

In a notice posted last week, the organization said that it’s told current operator ZACR that its contract will be terminated in six months, and that it will have to compete for a new one.

ZADNA had the option to extend the contract, which was signed in 2012, for another five years but has evidently chosen not to do so.

Still, ZACR has the twin benefits of incumbency and a home-field advantage — ZADNA says “the operation of the .ZA registry
infrastructure is geographically located in South Africa”.

Money might be a factor in play — the current wholesale registry fee for .co.za, .org.za and .net.za domains is ZAR 55 ($3.70), of which ZAR 15 ($1) is given to ZADNA. This mix is open to change under the rebid.

The organization has published a detailed request for information (pdf) explaining what it’s looking for, which will be followed by a formal request for proposals.

ZACR’s contract is due to end next April. ZADNA says it has no intention of bringing the registry in-house.

.za has 1.2 million domains and over 600 registrars.

Irish domain sales closely track pandemic restrictions

Sales of .ie domains saw their best-ever first half this year, with registration growth closely tracking pandemic-related restrictions.

Local registry IEDR reported this week that it added 33,815 new .ie domains in the six months to June 30, up 1.6% on last year. It ended the period with 324,074 .ie domains under management, up 9.6% on last year.

The registry is in no doubt that it benefited from the cross-industry lockdown bump associated with the coronavirus pandemic.

Comparing first quarter numbers show Q1 2021 regs up 34% on Q1 2020.

Ireland was in strict lockdown measures in the first months of this year, but did not enter lockdown until towards the end of the quarter in 2020.

Second quarter number reflected the same pattern in reverse — regs were down 22% this year, when lockdown had been eased, IEDR said.

The lockdown bump is a phenomenon whereby domain name sales spiked as traditional bricks-and-mortar small businesses rushed to establish an online presence in order to carry on business behind closed doors.

Domain keywords directly related to the pandemic were down in H1 compared to last year, while domains related to summertime, pools and barbecues spiked, the registry said.

“Crimes against humanity” claims against Afilias

Donuts subsidiary Afilias has been accused of participating in “crimes against humanity” and imperialist “apartheid”, due to its management of the contested .io ccTLD.

A London-based lawyer has filed a complaint with the Organization for Economic Cooperation and Development, seeking either the redelegation of .io or a big chunk of its profits.

The complaint was filed on behalf of Crypto Currency Resolution Trust (CCRT), representing people allegedly ripped off by cryptocurrency scams on .io domains, and the Chagos Refugees Group UK (CRG UK).

The latter group represents some of the people forcibly deported from the Chagos Islands in the 1970s, when the British government evicted the entire native population to make way for a US military base on Diego Garcia, the largest island.

The islands were renamed the British Indian Ocean Territory and, in the early days of the DNS, became eligible for the ccTLD .io

The TLD was delegated by IANA to Paul Kane’s London-based outfit Internet Computer Bureau in 1997, in the pre-ICANN days when such decisions were made without very much oversight.

ICB was quietly bought by Afilias for $70 million in 2017, as I broke the following year.

In 2019, the International Court of Justice ruled that the UK’s continued administration of BIOT is unlawful, and that the territory should be returned to the Chagossians, but the current Conservative UK government has shown no indication that it plans to abide by that ruling.

The lawyer for the Chagossians, Jonathan Levy, now claims in his OECD complaint that for Afilias to continue to run .io — which he reckons brings in over €10 million a year — amounts to a human rights abuse in violation of OECD guidelines.

The complaint states:

The British military occupation of the Chagos Archipelago has been severe and resulted in the Chagossians wandering the globe as a displaced people deported from their homeland in a forcible exile reminiscent of British tactics also used on Irish home rule advocates in the 19th Century. It is just simply an outrage that an Irish multinational company is deliberately complicit in crimes against humanity and apartheid on behalf of one of last vestiges of British imperialism and apartheid.

While Levy recognizes on his blog that Afilias has been acquired by US-based Donuts, only Afilias and its subsidiaries in the UK and Ireland are named as respondents.

In a second prong of the attack, Levy claims that Afilias is somehow complicit in cryptocurrency frauds carried out using .io domains.

Blaming a registry for the actions of its registrants is pretty tenuous. Imagine if Verisign got blamed for every nefarious action carried out with a .com domain — there would not be enough lawyers in the world to handle that workload.

But Levy reckons .io is a special case because BIOT lacks law enforcement and because Afilias promotes .io as the best TLD for tech companies “knowing full well” it is often used for crypto fraud. The complaint reads:

Complaina[n]ts submit that while other general purpose domains like GLTD .com may have as much or even more crypto fraud, ccTLD .io is an exception because it represents a political entity with no permanent population and no companies law and no law enforcement. Consequently, unlike ccTLD .com or .net where US authorities may seize websites; .io criminals have little to fear as BIOT has no civil police force nor financial intelligence unit. ICB has promoted ccTLD .io to the tech community knowing full well it will be misused by a significant criminal element specializing in crypto assets.

This still feels pretty tenuous to me. You cannot evade the long arm of the law simply by registering on offshore domain.

Still, Levy’s asking for restitution in the form of a percentage of the ICB acquisition price, ongoing and backdated royalties from the sale of .io domains and, failing that, redelegation of the ccTLD to the Chagossian people.

While I think the notion of Donuts/Afilias actively abusing human rights is pretty weak, there’s no denying it’s the beneficiary of an historical wrong. Imagine how many credibility points it could earn by voluntarily negotiating a profit-share with the displaced Chagossians.

Dead dot-brands #92 and #93

Two more companies have withdrawn from the new gTLD space, asking ICANN to rip up their dot-brand contracts.

The Royal Melbourne Institute of Technology, an Australian university, has terminated its contract for .rmit, and SwiftCover, an American insurance company, has withdrawn .swiftcover.

SwiftCover next used its gTLD, according to zone file records. Not once.

RMIT had registered a small handful of domains under .rmit, and had been using at least one of them — which wasn’t even a redirect to the uni’s main .au site — as recently as February this year.

But by May the experiment was over, with RMIT filing its ICANN papers.

These are the 92nd and 93rd dot-brand termination notices to be published by ICANN.

GoDaddy and MMX delay closure of $120 million gTLD deal

GoDaddy and MMX have extended the deadline for final closure of their $120 million gTLD acquisition deal by a couple weeks.

MMX said this week the delay is to give them more time to seek approvals from business partners in the four gTLDs that have not already made the move, believed to be .bayern, .boston, .miami and .nrw.

These are all geographic strings that require local government sign-off to complete the transfers.

The deadline had been August 7. It’s now August 23.

GoDaddy Registry has already taken control of 23 of MMX’s gTLDS.

This company had every reason to want a dot-brand, but just killed it off

The latest dot-brand to terminate its new gTLD registry contract with ICANN could have been a case study in why dot-brands are a good idea.

Dabur India is 137 years old and makes over a billion dollars a year selling consumer goods — mainly cosmetics and personal care products, but also shady-looking Ayurvedic alternative medicines and supplements — in its home country and beyond, and it had experimented with using its .dabur gTLD over the last six years.

But it’s no longer interested, telling ICANN recently that it wants its Registry Agreement torn up, which ICANN has agreed to.

That’s despite the fact that Dabur appears to be suffering from exactly the kind of problem that dot-brands were supposed to help mitigate.

If you visit its web site at dabur.com today, you’ll be immediately presented with a very prominent pop-up warning you about scammers exploiting the Dabur trademark to grift money out of people who think they’re signing up to be official distributors.

The notice is lengthy but in part reads:

DABUR is only dealing with trade through www.dabur.com and any person claiming themselves to be taking order for the supply of DABUR products via phone/online may be cheating with you. DABUR shall not be responsible for any order placed other than on our official website www.dabur.com

One of the biggest selling points for the dot-brand concept is that customers can be taught to distrust any solicitation purporting to be legit if it does not originate from a domain in the relevant dot-brand.

If the notice on dabur.com is any guide, turns out you can do the same thing with a .com domain.

Dabur had briefly experimented with its gTLD not long after it was delegated. Current zone files show half a dozen .dabur names, but only two seem to resolve or show up in search engines. One redirects to the .com site.

Ironically, the other is doctor.dabur, in which Dabur solicits doctors to sign up to push its Ayurvedic products. Ayurveda is a form of medical quackery popular in South Asia.

Added to the recent self-termination of QVC’s .qvc, the total number of dot-brands to lose their registry contracts is now 91.

Olympics: Australia preemptively blocking Brisbane 2032 regs

With the venue for the 2032 Olympic Games revealed as Brisbane, Australia last week, the .au registry this week asked people to stop trying to register Olympics-related domains, because they won’t work.

Local ccTLD registry overseer auDA said in a blog post that it’s seen a spike in attempts to register domains containing the string “olympics” and variants since the announcement was made a week ago.

But these strings are on auDA’s reserved list, which cannot be registered even as substrings without government permission. Only the Australian Olympic Committee is allowed to register such domains.

According to auDA, the protected strings are: olympic, olympics, olympicgames, olympiad and olympiads.

It’s a more comprehensive approach to protecting Olympic “trademarks” (for want of a better word) than that employed by ICANN in its gTLD registry contracts, where the various Olympic and Red Cross/Crescent organizations are among a privileged few to enjoy unique protections.

ICANN only requires registries to block the exact-match string from registration, while auDA will block substrings also.

auDA says the domain “BrissiOlympics.com.au” would be blocked. It would not in any ICANN gTLD.