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Five more new gTLDs, one in English, get the nod from China

Kevin Murphy, February 14, 2017, Domain Registries

Top Level Design’s .ink has become the sixth new gTLD in the Latin alphabet to be approved for sale in China.
It was one of four new gTLDs given regulatory approval to begin operating properly in the country late last week. The others were all in Chinese script.
From Finnish-founded TLD Registry, .中文网 (“Chinese web site”) and .在线 (“Chinese online”) gained approval.
From local outfit Guangzhou Yuwei Information Technology Co, .集团 (“group”) and .我爱你 (“I love you”) were given the nod.
It’s the third batch of new gTLDs to get Chinese government approval since .vip, .club and .xyz in December. In January, .site and .shop joined their ranks.
Under China’s Draconian domain name regulations, only domains registered via local registries and registrars may be used.
Registries from outside the country have had to set up a local corporate presence and agree to China’s censorship policies in order to be compliant.

The Pirate Bay likely to be sunk as .org adopts “UDRP for copyright”

Kevin Murphy, February 8, 2017, Domain Registries

Controversial piracy site The Pirate Bay is likely to be the first victim of a new industry initiative being described as “UDRP for copyright”.
The Domain Name Association today published a set of voluntary “healthy practices” that domain registries can adopt to help keep their TLDs clean of malware, child abuse material, fake pharmacies and mass piracy.
And Public Interest Registry, the company behind .org, tells DI that it hopes to adopt the UDRP-style anti-piracy measure by the end of the first quarter.
This is likely to lead to thepiratebay.org, the domain where The Pirate Bay has resided for some time, getting seized or deleted not longer after.
Under its Healthy Domains Initiative, the DNA is proposing a Copyright Alternative Dispute Resolution Policy that would enable copyright holders to get piracy web sites shut down.
The version of the policy published (pdf) by the DNA today is worryingly light on details. It does not explain exactly what criteria would have to be met before a registrant could lose their domain name.
But PIR general counsel Liz Finberg, the main architect of the policy, said that these details are currently being finalized in coordination with UDRP arbitration firm Forum (formerly the National Arbitration Forum).
The standard, she said, will be “clear and convincing evidence” of “pervasive and systemic copyright infringement”.
It’s designed to capture sites like The Pirate Bay and major torrent sites than do little but link to pirate content, and is not supposed to extend to sites that may inadvertently infringe or can claim “fair use”.
That said, it’s bound to be controversial. If 17 years of UDRP has taught us anything it’s that panelists, often at Forum, can take a liberal interpretation of policies, usually in favor of rights holders.
But Finberg said that because the system is voluntary for registries — it’s NOT an ICANN policy — registries could simply stop using it if it stops working as intended.
Filing a Copyright ADRP complaint will cost roughly about the same as filing a UDRP, typically under $1,500 in fees, she said.
Penalties could include the suspension or transfer of the domain name, but monetary damages would not be available.
Finberg said PIR chose to create the policy because she wasn’t comfortable with the lack of due process for registrants in alternative methods such as Trusted Notifier.
Trusted Notifier, in place at Donuts and Radix, gives the Motion Picture Association of America a special pass to notify registries about blatant piracy and, if the registry agrees, to have the domains suspended.
While stating that .org is a fairly clean namespace, Finberg acknowledged that there is one big exception.
“The Pirate Bay is on a .org, we’re not happy about that,” she said. “If I were to say what’s the one .org that is the prime candidate for being the very first one out of the gate, I would say it’s The Pirate Bay.”
Other registries have yet to publicly state whether they plan to adopt this leg of the DNA HDI recommendations.

ISOC New York challenges Neustar’s .nyc contract

Kevin Murphy, February 8, 2017, Domain Registries

The New York chapter of the Internet Society has called upon the city to delay the renewal of Neustar’s contract to run the .nyc gTLD, citing numerous concerns about how it is being managed.
In a letter (pdf) to Mayor Bill de Blasio, the group calls for a “town hall” and community consultation and for the city to “make appropriate adjustments” before the contract is renewed.
Its beef appears to be what it sees as .nyc’s lackluster performance in the market and the lack of promised community engagement.
The ISOC-NY letter contains a list of over a dozen “observations and nitpicks”.
These include a decline in .nyc registration volume, that fact that most .nyc names are parked, and the fact that Whois privacy is banned from the gTLD.
Neustar’s current contract is due to be renewed March, according to the letter.
(This post was updated February 8 to correct the expiry date of Neustar’s contract.)

.xxx has its ICANN fees slashed and adopts URS

Kevin Murphy, February 8, 2017, Domain Registries

ICM Registry is to see its .xxx ICANN registry fees hugely reduced in contractual amendments approved by ICANN last week.
The changes also mean that .xxx will now become subject to the Uniform Rapid Suspension anti-cybersquatting mechanism, despite it being a pre-2012 gTLD.
.xxx becomes the latest pre-2012 gTLD to move to a contract more closely aligned with the standard Registry Agreement from the new gTLD program.
Under the complex new deal, its per-transaction fee could be reduced from $2 to $0.25 by mid-2018.
Its quarterly fixed fee will go up from $2,500 to $6,250.
ICM has also agreed to take on many aspects of the standard new gTLD Registry Agreement, the most controversial of which is the URS.
The domainer group the Internet Commerce Association was fiercely critical of this addition to the contract, as it has been when URS was brought to .jobs, .travel, .cat, .pro and .mobi.
ICA is largely concerned that URS will also be pushed upon Verisign’s .net, which is up for contract renewal this year, and eventually .com.

Donuts sticks with Rightside despite Google support

Kevin Murphy, February 8, 2017, Domain Registries

Donuts has renewed its back-end registry services contract with Rightside, Rightside has announced.
That’s despite indications a few months ago that it might have been preparing for a switch to Google’s new Nomulus platform.
Rightside said yesterday that the deal, which has seen Rightside handle the registry for Donuts’ portfolio of almost 200 gTLDs for the last five years, has been extended.
It’s a “multi-year” deal, but the length of the extension has not been revealed.
Donuts had suggested last October that it might be ready to move to Nomulus instead.
The company revealed then that it had been quietly working with Google for 20 months on the software, which uses Google’s cloud services and is priced based on resource usage.
Then-CEO Paul Stahura said Nomulus “provides Donuts with an alternative back-end with significant benefits.”
Now-CEO Bruce Jaffe said yesterday that “Rightside’s registry platform has the right combination of innovative features, ease-of-operation, scalability, and highly responsive customer support”.

.club financing option sees early traction with $150k sales

Kevin Murphy, February 6, 2017, Domain Registries

.CLUB Domains said it has seen some early successes with its new 0% financing option, selling $150,000 worth of premium .club domains in its first week.
The registry announced that it sold 39 premiums for a total of $149,480, and that 37 of those names were sold using the financing option.
This option allows registrants to spread the cost of their domains over five years — 60 monthly payments — for names priced over $1,000.
The scheme was announced at the NamesCon conference in conjunction with a new brokers program, which gives brokers the ability to pass on 10% discounts to their clients and earn 15% commissions.
Seventeen of the 39 names were sold via brokers.
The results of the the first seven days of these programs compare favorably to other periods. In the fourth quarter of 2016, .CLUB said premium sales were $112,000.
For the whole of 2016, the registry sold $941,000 of reserved premium names, making a total of $4.3 million since .club launched May 2014.

Thick Whois policy for .com is now live

Kevin Murphy, February 2, 2017, Domain Registries

The domain name industry is kicking off one of its most fundamental shifts in its plumbing this week.
Over the next two years, Verisign and every registrar that sells .com domains will have to rejigger their systems to convert .com from a “thin” to “thick” Whois.
This means that by February 1, 2019, Verisign will for the first time control the master database of all Whois records for .com domains, rather than it being spread piecemeal across all registrars.
The switch comes as a result of a years-in-the-making ICANN policy that officially came into force yesterday. It also applies to .com stablemates .net and .jobs.
The first big change will come August 1 this year, the deadline by which Verisign has to give all of its registrars the ability to submit thick Whois records both live (for new regs) and in bulk (for existing ones).
May 1, 2018 is the deadline for all registrars to start submitting thick Whois for new regs to Verisign, but they can start doing so as early as August this year if they want to.
Registrars have until February 1, 2019 to supply Verisign with thick Whois for all their existing registrations.
There’s a process for registrars who believe they would be violating local privacy laws by transferring this data to US-based Verisign to request an exemption, which may prevent the transition going perfectly uniformly.
Some say that the implementation of this policy may allow Verisign to ask for the ability to ask a for an increase in .com registry fees — currently frozen at the command of the US government — due to its inevitably increased costs.
Personally, I think the added costs will likely be chickenfeed compared to the cash-printing machine that is .com, so I think it’s far from a slam-dunk that such fee increases would be approved.

ICANN loses another IRP — .sport gTLD fight reopens as panel finds “apparent bias”

Kevin Murphy, February 2, 2017, Domain Registries

The future of the .sport gTLD was cast into turmoil this week after an independent panel ruled that there was “apparent bias” in the decision that awarded the string to a group linked to the Olympics.
The new Independent Review Panel ruling found that ICANN broke its own bylaws by refusing to allow Famous Four Media to appeal a 2013 decision that essentially awarded .sport to rival bidder SportAccord.
FFM claims the expert panelist tasked with deciding SportAccord’s Community Objection had undisclosed conflicts of interest that made him much more likely to rule in favor of SportAccord, which is backed by the International Olympic Committee, than FFM, which is a purely commercial operator.
And the IRP panel did not disagree, ruling this week that ICANN should have taken FFM’s claims into account before rejecting its requests for an appeal in 2014.
The ruling means that ICANN may be forced to throw out the Community Objection decision from 2013 and order it to be re-tried with a new expert, potentially allowing FFM back into the .sport contest.
As usual with IRP cases, the ruling is a complex and very dry read, involving multiple layers of objections, appeals, panels and experts.
FFM and SportAccord were the only two applicants for .sport in the 2012 application round.
SportAccord, which has the backing of dozens of sporting organizations in addition to the IOC, claims to represent pretty much all organized sport and wants to run .sport with restrictions on who can register.
FFM, conversely, wants to keep it open to everyone with a passing interest in sport.
In an attempt to kick FFM out of the contest without a potentially expensive auction, SportAccord filed, and then won, a Community Objection in 2013.
To win, it had to prove that the interests of the sport community would be harmed if FFM got to run it. The objection expert panelist, Guido Tawil, came down on SportAccord’s side.
FFM naturally enough disagreed with his conclusion, and vowed to fight to overturn it.
The registry later discovered that Tawil had undisclosed ties to the IOC, which it said should have disqualified him from acting as an independent expert.
First, Tawil attended a conference of the International Bar Association in Rio de Janeiro in 2011 called “Olympic‐Size Investments: Business Opportunities and Legal Framework”, where he co‐chaired a panel entitled “The quest for optimising the dispute resolution process in major sport‐hosting events”.
Second, the law firm he works for, Argentina-based M & M Bomchil, counts DirecTV among its key clients and at the time of the Community Objection DirecTV was negotiating with the IOC for Latin America broadcasting rights for the Sochi 2014 and Rio 2016 Olympics, rights it subsequently obtained.
Third, a partner in Tawil’s law firm is president of Torneos y Competencias, a sports broadcaster with ties to DirecTV.
FFM has claimed: “Guido Tawil’s own legal practice and business is built around a company for whom IOC broadcasting rights are a core aspect of its business.”
While FFM filed two Requests for Reconsideration with ICANN in late 2013 and early 2014, raising the possibility of conflicts of interest and demanding ICANN have Tawil’s ruling thrown out, both were rejected by ICANN’s Board Governance Committee.
It also took its claims to the ICANN Ombudsman, who drafted (but did not finalize) a finding that agreed with FFM that the Community Objection should be retried with a new expert.
The subsequent IRP filing challenged the two RfR decisions and, two years later, the IRP panel has now ruled:

the IRP Panel is of the view that in order to have upheld the integrity of the system, in accordance with its Core Values, the ICANN Board was required properly to consider whether allegations of apparent bias in fact gave rise to a basis for reconsideration of an Expert Determination. It failed to do so and, consequently, is in breach of its governing documents.

The panel also said that ICANN should have taken the Ombudsman’s draft report into account.
It declared:

that the action of the ICANN Board in failing substantively to consider the evidence of apparent bias of the Expert arising after the Expert Determination had been rendered was inconsistent with the Articles, Bylaws and/or the Applicant Guidebook.

The panel has ordered ICANN to pay FFM’s share of the $152,673 IRP costs.
ICANN’s board will now have to consider the IRP decision, and it seems very possible that a new Community Objection review might be ordered.
On the face of it, it looks like a big win for FFM.
That does not mean that SportAccord will not prevail in its objection for a second time, even with a different presiding expert, however.
One fact in its favor is that it now has three years’ worth of evidence of how Famous Four conducts its business — selling domains at super-cheap prices, some say at the expense of the cleanliness of its namespaces — with which to attempt to show the likelihood of harm.
What seems certain is that the .sport gTLD is not going to see the light of day any time soon.
Read the ruling as a PDF here.

Neustar to auction .nyc premiums during New York Fashion Week

Kevin Murphy, January 27, 2017, Domain Registries

Neustar is to release a batch of reserved, fashion-related .nyc premium domains to coincide with next month’s New York Fashion Week.
Twenty-four names, including clothes.nyc, fashion.nyc, salon.nyc, models.nyc and shop.nyc will be released via an auction, the company said in a press release.
SnapNames will manage the auction at Auctions.nyc from February 1 to February 28. This period includes the duration of New York Fashion Week, which starts February 9.
It’s the second batch of premiums released by Neustar, which runs .nyc on behalf of the City of New York, after a real estate-themed auction in 2016.
That auction resulted in modestly priced sales including realestate.nyc ($21,300) and apartments.nyc ($16,155).

MMX billings double even as some volumes slide

Kevin Murphy, January 25, 2017, Domain Registries

MMX has reported a 100% increase in billings for 2016, despite its number of domains under management dropping in some TLDs.
The company, until recently known as Minds + Machines, said billing were $15.8 million in the year to December 31, compared to $7.9 million for in 2015.
Billings is an up-front measure of sales growth that does not take into account the way domain revenue is recognized over the life of the registration.
The company said, in a trading update to the London markets today, that billings and domains under management do not necessarily correlate. The former can be up even if the latter is down:

For example, in 2016 .work generated $392,000 off 81,000 registrations compared to $206,000 off 102,000 registrations in 2015 reflecting the use of a promotional initiative to drive registrations that year.

MMX also disclosed that China now accounts for more than half of its billings: 59%, compared to 24% for the US and 17% for Europe.
That’s largely based on its launch of .vip, which launched last May and has half a million names mainly because of the resonance of the string in China.
The company said it intends to imitate its focus on .vip in 2016 by only launching two TLDs — .boston and one other — in 2017.
MMX’s formal, audited 2016 financial results will be published in April.