This is who won the .inc, .llc and .llp gTLD auctions

The winners of the auctions to run the gTLD registries for company identifiers .inc, .llc and .llp have emerged due to ICANN application withdrawals.
All three contested gTLDs had been held up for years by appeals to ICANN by Dot Registry — an applicant with the support of US states attorneys general — but went to private auction in September after the company gave up its protests for reasons its CEO doesn’t so far want to talk about.
The only auction won by Dot Registry was .llp. That stands for Limited Liability Partnership, a legal construct most often used by law firms in the US and probably the least frequently used company identifier of the three.
Google was the applicant with the most cash in all three auctions, but it declined to win any of them.
.inc seems to have been won by a Hong Kong company called GTLD Limited, run by DotAsia CEO Edmon Chong. DotAsia runs .asia, the gTLD granted by ICANN in the 2003 application round.
My understanding is that the winning bid for .inc was over $15 million.
If that’s correct, my guess is that the quickest, easiest way to make that kind of money back would be to build a business model around defensive registrations at high prices, along the lines of .sucks or .feedback.
My feedback would be that that business model would suck, so I hope I’m wrong.
There were 11 original applicants for .inc, but two companies withdrew their applications years ago.
Dot Registry, Uniregisty, Afilias, GMO, MMX, Nu Dot Co, Google and Donuts stuck around for the auction but have all now withdrawn their applications, meaning they all likely shared in the lovely big prize fund.
MMX gained $2.4 million by losing the .inc and .llc auctions, according to a recent disclosure.
.llc, a US company nomenclature with more potential customers of lower net worth, went to Afilias.
Dot Registry, MMX, Donuts, LLC Registry, Top Level Design, myLLC and Google were also in the .llc auction and have since withdrawn their applications.

Eight more gTLDs get Chinese licenses

Radix and MMX have had four new gTLDs each approved for use in China.
MMX has had .work, .law, .beer and .购物 (Chinese for “shopping”) approved by the Ministry of Industry and Information Technology.
Radix gained approval for .fun, .online, .store and .tech.
The approvals mean that Chinese customers of Chinese registrars will be able to actually use domains in these TLDs rather than just registering them and leaving them barren.
It also means the respective registries have to apply more stringent controls on Chinese registrants.
They’re the first new gTLDs to get the nod from MIIT since April.
Only a couple dozen Latin-script new gTLDs have been given regulatory approval to operate fully in China.
MMX’s biggest success story to date, .vip, is almost entirely beholden to the Chinese market. Before today, it was also the only gTLD in its portfolio to pass the MIIT test.
The company said in a statement it has another four strings going through the approval process.
Radix already had .site on sale in China with government approval.

Double-charging claims as registries ramp up new gTLD refund demands

Registry operators have stepped up demands for ICANN to dip into its $100 million new gTLD cash pile to temporarily lower their “burdensome” accreditation fees.
A new missive from the Registries Stakeholder Group to ICANN this week also introduces a remarkable claim that ICANN may have “double charged” new gTLD applications to the tune of potentially about $6 million.
The RySG wants ICANN to reduce the quarterly fixed fees new gTLD registries must pay by 75% from the current $6,250, for a year, at a cost to ICANN of $16.87 million.
ICANN still has roughly $96 million in leftover money from the $185,000 per-TLD application fees paid in 2012, roughly a third of which had been earmarked for unexpected expenses.
When Global Domains Division president Akram Atallah refused this request in August, he listed some of the previously unexpected items ICANN has had to pay for related to the program, one of which was “implementation of the Trademark Clearinghouse”.
But in last week’s letter (pdf), the RySG points out that each registry was already billed an additional $5,000 fee specifically to set up the TMCH.

Your letter states that registry operators knew about the fee structure from the start and implies that changes of circumstance should be irrelevant. The TMCH charge, however, was not detailed in the applicant guidebook. ICANN added it on its own after all applications were accepted and without community input. Therefore, ICANN is very much in a position to refund registry operators for this overcharge, and we request that ICANN do so. Essentially, you would be refunding the amounts we paid with our own application fees, which should have been used to set up the TMCH in the first place.

These additional fees could have easily topped $6 million, given that there are over 1,200 live new gTLDs.
Was this a case of double-charging, as the RySG says?
My gut feeling is that Atallah probably just forgot about the extra TMCH fee and misspoke in his August letter. The alternative would be a significant accounting balls-up that would need rectifying.
RySG has asked ICANN for a “detailed accounting” of its new gTLD program expenses to date. If produced, that could clear up any confusion.
Group chair Paul Diaz, who signed the letter, has also asked for a meeting with Atallah at the Abu Dhabi public meeting later this month, to discuss the issue.
The letter also accuses ICANN of costing applicants lost revenue by introducing policies such as the ban on two-letter domains, increased trademark protections, and other government-requested restrictions that were introduced after application fees had already been paid.
The tone of the letter is polite, but seems to mask an underlying resentment among registries that ICANN has not been giving them a fair chance to grow their businesses.
UPDATE: This story was updated October 12 to correct the estimate of the total amount of TMCH setup fees collected.

Who should have rights to direct .au names?

Australian ccTLD registry auDA wants to know what you think about its plans to open up .au to direct second-level domain registrations.
It’s no longer a question of if the change should happen, but how it should be implemented.
A public consultation launched yesterday poses a series of questions about issues such as grandfathering, trademark rights and banning certain strings from registration.
It’s already been decided that existing third-level .au registrants should get first dibs on the matching second-level, but auDA has yet to decide what the eligibility cut-off date should be and for how long the names should be reserved before being released for registration by others.
The cut-off date is important because auDA has already seen some data suggesting possible domain investor gaming.
There were 193,645 strings that were registered as third-level domains in two zones at April 18, 2016, when the direct registration policy was announced, but that had risen to 255,909 as of September 1 this year.
That could be indicative of speculators obtaining low-value domains in .net.au or .org.au in the hope of beating the matching .com.au registrant to the possibly more valuable direct second-level .au domain.
If the April 2016 date is used, up to 14% of .au registrations will be subject to competing claims. The data shows that 90% of the conflicts are between .net.au and .com.au domains.
auDA has declined to draw any conclusions about gaming, however, saying that many of the conflicts could be defensive registrations made by the same registrant.
Where there are conflicts, a number of solutions have been posed. Among them: the longest continuous registration, priority for .com.au registrants, auction or lottery.
The consultation paper spends little time discussing the rights of trademark owners, something submissions from the IP lobby will no doubt seek to rectify.
Many of the questions auDA is posing are similar to those posed by the likes of .uk’s Nominet in previous ccTLD consultations.
There’s an additional wrinkle in the .au system as many state government and educational entities are required to register fourth-level names. So auDA wants to know what kind of rights these guys should have too.
The consultation is open until November 10 and all the relevant information can be found here.

Nine registries fighting for .au contract

Nine domain name companies are battling it out for the right to run Australia’s .au ccTLD.
That’s according to auDA, the .au registry, providing an update on the latest stage of its “registry transformation” project today.
A decision on which company to select could be made as soon as a month from now, though the process does seem to be running a week behind schedule due to contenders asking for more time to write their tenders.
One company that will certainly have applied for the job is incumbent Neustar, which has been running .au for the last 15 years (through its relatively AusRegistry acquisition).
Having earlier indicated that it was looking for somebody to build an in-house registry, auDA later clarified (or U-turned) that it wanted to stick with an outsourced back-end provider.
The apparent decision to bring the service in-house came in for some criticism from some auDA members, which waned when it emerged outsourcing was the only solution on the table.
There are about 3.1 million .au domains today, and the back-end gets roughly $5 a year (USD) per name.

In harsh tones, ccNSO rejects NomCom appointee

ICANN’s Country Code Names Supporting Organization has rejected the appointment to its Council of a Canadian registry director.
Saying NomCom ignored long-standing guidance to avoid appointing registry employees, the ccNSO Council has said the recent naming of Marita Moll to the role is “unacceptable”.
Moll will have to choose between sitting on the Council and being a director of .ca registry CIRA, the Council said in a letter to NomCom and the ICANN board.
Three of the Council’s 18 voting members are selected by NomCom. The rest are elected from ccTLD registries, three from each of ICANN’s five geographic regions.
To maintain balance, and promote independent views, the Council told NomCom most recently back in 2012 that it should refrain from appointing people connected to ccTLD registries.
The new Council letter (pdf) reads:

Council’s view (none dissenting) is that your Committee’s proposed selection directly contravenes this requirement, notwithstanding the clear and explicit assurance we received in 2012 from the then Chair of Nominating Committee that the Committee would be “avoiding any member already belonging to the ccTLD management participating in the ccNSO”.

The situation is exacerbated by the fact that CIRA already has representation on the Council in the form of CEO Byron Holland.
The letter concludes that the conflict is “irreconcilable” and the appointment “unacceptable”.
As the ccNSO does not appear to have refusal powers on NomCom appointees, it will presumably be up to Moll to decline the appointment.

Millions spent as three more new gTLDs auctioned

Two or three new gTLDs have been sold in a private auction that may well have seen over $20 million spent.
The not-yet-delegated strings .inc, .llc and (I think) .llp hit the block at some point this month.
They are the first new gTLDs to be auctioned since Verisign paid $135 million for .web a little over a year ago.
At this point, nobody wants to talk about which applicant(s) won which of the newly sold strings, but it seems that the proceeds ran into many millions.
MMX, which applied for .inc and .llc, said this morning that it has benefited from a $2.4 million windfall by losing both auctions.
The auctions evidently took place in September, but CEO Toby Hall declined to comment any further, citing non-disclosure agreements.
There were nine remaining applicants for .inc and eight for .llc.
I don’t think it’s possible to work out which sold for how much using just MMX’s disclosure.
But private auctions typically see the winning bid divided equally between the losers.
I believe .llp was probably sold off by auction at the same time.
The reason for this is that .llc, .inc and .llp were contention sets all being held up by one applicant’s dispute with ICANN.
Dot Registry LLC had applied for all three as “community” gTLDs, which meant it had to go through the Community Evaluation Process.
While it failed the CPE on all three counts, the company subsequently filed an Independent Review Process complaint against ICANN, which it won last August.
You may recall that this was the IRP that found disturbing levels of ICANN meddling in the drafting of the CPE panel’s findings.
Ever since then, ICANN has been conducting an internal review, assisted by outside experts, into how the CPE process worked (or didn’t).
Lawyers for Dot Registry and other affected applications (for .music and .gay) have been haranguing ICANN all year to get a move on and resolve the issue.
And yet, just as the end appeared to be in sight, Dot Registry seems to have decided to give up (or, possibly, cash out) and allow the strings to go to auction.
CEO Shaul Jolles declined to comment on the auctions today.
All I can currently tell you is that at least two of the Dot Registry holdout strings have been sold and that MMX did not win either of them.
The applicants for .inc were: Uniregistry, Dot Registry, Afilias, GMO, GTLD Limited, MMX, Nu Dot Co (now a known Verisign front), Donuts and Google.
The applicants for .llc were: MMX, Dot Registry, Nu Dot Co, Donuts, Afilias, Top Level Design, myLLC and Google.

MMX revenue slips despite domain growth

MMX today posted a smaller loss for the first half of the year, despite managing to grow domains under management and hit some important financial milestones.
The new gTLD registry formerly known as Mind + Machines, which announced a few months ago that it’s looking to be acquired, reported an H1 loss of $526,000 compared to a loss of $1.9 million a year earlier.
Revenue and billings were both down due to the lack of any big launches in the period; H1 2016 had benefited from the strong launch of .vip in China.
Revenue, which is recognized over the duration of the domain registrations, was $5.3 million compared to $7.4 million in 2016. Billings, a measure of cash sales, were $5.6 million compared to $8.1 million.
Despite these dips, MMX is happy enough that the “quality” of its revenue is getting better.
The company said that revenue from domain renewals more than doubled to $2.4 million and represented 45% of revenue. A year ago, it was 15%.
As another measure of the health of its business, it also said that its renewal billings was greater than its operating expenditure for the first time, after cost-cutting.
Domains under management went into seven figures for the first time, to 1.1 million. That was up from 821,000 at the start of the year.
It processed 318,000 new registrations in the six months, compared to 452,000 a year earlier (when .vip’s launch provided a boost).

.xyz back on sale in China

Chinese registrars have started to carry .xyz domains again, about five months after a Chinese government ban.
West.cn and Net.cn are two of the China-based companies that appear to be selling .xyz names at the yuan equivalent of a US dollar, based on a spot check this morning.
West.cn flagged the “restoration” of service on its blog today, saying it was “overjoyed” to resume sales.
XYZ.com revealed back in May that its new gTLD domains were “temporarily” no longer available via Chinese registrars, after the government there suspended its license.
The reason for the suspension has always been a little vague, but the registry told DNW back in May that it related to Real Names Verification.
RNV is the government-mandated identity check that must take place before anyone in China can register and use a domain name.
XYZ had been outsourcing the function to ZDNS, but that relationship fell apart for some reason (rumor has it there was a money dispute) and XYZ decided to switch to Tele-info.
In the interim, Chinese registrars, apparently under order of their government, dutifully stopped carrying .xyz domains.
XYZ also went through ICANN’s Registry Services Evaluation Process to get its move to Tele-info approved at the Registry Agreement level.
The downtime prevented XYZ from masking the precipitous decline in its number of domains under management, which has fallen by over three million since May.
XYZ and the Chinese government have yet to issue statements about the newly reinstated license.
UPDATE 10/10/2017 — XYZ.com got in touch last week to say that .xyz was never “banned” in China.
A spokesperson said in an email: “We had RNV in place with ZDNS and opted to switch. To be compliant with ICANN, we suspended registrations in China.”
He declined to clarify whether the suspension was voluntary or ICANN-mandated.
He also declined to confirm or deny that Chinese registrars been told to suspend .xyz registrations by the government, as local sources have previously told DI and Domain Name Wire.
Other gTLDs owned by other registries have previously obtained Chinese licenses without ICANN first approving their RNV providers.

puntCAT head of IT charged with “sedition”

Catalan gTLD registry puntCAT has confirmed that its head of IT, Pep Masoliver, has been arrested as part of a Spanish government crackdown on pushes for independence.
He’s been charged with “sedition” and is still in police custody this evening, a company spokesperson told DI.
His arrest coincided with the military police raid of puntCAT’s office in Barcelona that started this morning, related to a forthcoming Catalan independence referendum.
Spanish authorities had called for the registry to delete .cat domain names used to host content related to the referendum, which has been ruled illegal by the Spanish courts.
puntCAT, which had already alerted ICANN to what it characterized as the sweeping “censorship” of .cat, has now started up a social media campaign calling for Masoliver’s release.

Outraged by the arrest of our friend and colleague. We demand his immediate release #totsambtupep pic.twitter.com/TLsFwmlnQX

— Fundació puntCAT (@puntcat) September 20, 2017

The hashtag appears to translate as “All With You, Pep”.
Masoliver was among a dozen people arrested today by Spanish national authorities in a series of raids that have been condemned as anti-democratic.
The Guardian has a good round-up of the day’s events and local reaction.
“Sedition” isn’t a word you hear very often nowadays, particularly in democratic Western Europe, and I’m not going to pretend to have the first idea how it is treated under Spanish law.
UPDATE 1944 UTC: puntCAT issued a statement condemning the events of today in very strong terms. It’s worth quoting in its entirety.

The Fundació puntCAT wants to express its utmost condemnation, indignation and reprobation for the actions that it has been suffering lately with successive judicial mandates, searches and finally the arrest of our Director of Innovation and Information Systems, Pep Masoliver.
We are a private and non for profit foundation devoted to ensuring that Catalan – a persecuted and maltreated language – has its space in the digital world. We assist all our users with the greatest professionalism and we are a reference entity in Catalonia and in the world.
The show that we have experienced in our offices this morning has been shameful and degrading, unworthy of a civilized country. We feel helpless in the face of these immensely disproportionate facts.
We demand the immediate release of our colleague and friend.
We will continue to work for our foundational objectives as well as for the defense of freedom of expression on the Internet.