Nominet to purge £50 million from war chest for good causes as new chair outlines strategy

.uk registry Nominet is to take £50 million ($68 million) it had set aside for acquisitions and instead donate it to public benefit causes, as part of a suite of reforms outlined by new chair Andy Green yesterday.

“We’ve made a clear commitment that we’re about purpose, not profit,” Green said in a short video address to members.

The money is about half of Nominet’s reserve fund, which will be reduced to about £50 million over the next three years. The company also committed to donating at least £5 million a year from profits in future.

While the company has talked a good game about addressing critics’ concerns over the few months since its CEO walked and half its board were fired by angry members, it’s the first big example of Nominet putting some concrete pounds-sterling numbers on its new strategy.

And it doesn’t stop at good causes. The company is scrapping its ambitions to broaden out into domain-adjacent sectors such as security, and will sell off its Cyglass network security business.

“We’ve decided to abandon the idea of building a global cyber[-security] business,” Green told members, in an address that promised to put the registry at the center of everything.

Cyglass lost about £2.2 million in the last six-month reporting period, the company revealed.

Nominet will keep one foot in DNS infrastructure security, where it services the UK government, Green said. That business also currently makes a loss, about £1 million, but is targeted for profitability by 2024.

On the issue of executive and director pay, he reiterated that the company has scrapped an incentive plan that he said was “clearly a misstep”, and noted that his own compensation is lower than his predecessors.

Staff wages will be compared against not only companies in the tech sector, but also other public-benefit concerns, he said.

Domainers and registrars who were hoping Nominet would slash its .uk wholesale fees have less to be cheerful about — Green said that Nominet will instead commit to freeze its prices until 2024.

After that time, the company will take another look and decide whether to raise, freeze, or even lower its fees, Green said.

Reaction from some of the members whose uprising caused the current change of strategy appeared to welcome the changes warmly on social media, while expressing concern that Nominet has not yet picked a new permanent CEO to guide the firm on this new path.

Comment Tagged: .uk, cyglass, nominet

.club — the whole TLD just went down

GoDaddy Registry’s .club gTLD appears to have been down for the last few hours.

At time of writing, no .club domain names are resolving, instead returning NXDOMAIN errors to browsers, and the registry is reportedly working on fixing whatever ails it.

The .club registry accounts for over a million domains, so the problem is affecting a lot of people.

At 1107 UTC, the registrar Namecheap wrote that “the DNS information cannot be queried for the domains”, updating half an hour later to say the registry is “working to resolve the issue within the nearest time possible.”

Cloudflare, also alerted by its customers, said on Twitter that it had “identified the name resolution problem on upstream Registry.”

Tucows confirmed that the problem is preventing customers from registering or managing their .club domains.

It appears to be a DNS issue. The gTLD’s name servers, which are all found at get.club, are not currently responding. All six official names servers use the same IPv4 and IPv6 addresses.

It appears that .hsbc, the dot-brand for the global bank HSBC, is suffering identical problems. It also runs on the GoDaddy back-end. Other gTLDs on the same infrastructure I checked appear to be working normally.

This is highly unusual. Entire TLDs do not typically just drop off the internet like this.

Like all gTLDs, .club has a DNS availability service level agreement of 100% uptime baked into its ICANN Registry Agreement, which it clearly has failed to meet this month.

The .club gTLD was acquired by GoDaddy from .CLUB Domains earlier this year, raising the possibility of some kind of handover-related problem. However, .club was already running on the old Neustar back-end, which GoDaddy acquired last year.

UPDATE: As of 1325 UTC, domains in .club and .hsbc appear to be resolving again (at least from where I’m sitting in the UK) after at least two and a half hours of downtime.

After the incident was resolved, the registry tweeted:

This morning there was a DNS service disruption impacting .Club websites. The issue has now been resolved. We apologize for any inconvenience this may have caused.

— .CLUB Domains (@getDotClub) October 7, 2021

GoDaddy Registry tweeted:

This morning there was a DNS service disruption impacting .club websites. The issue has now been resolved. We apologize for any inconvenience this may have caused.

— GoDaddy Registry (@GoDaddyRegistry) October 7, 2021

UltraDNS, the massively redundant DNS resolution service still owned by Neustar, identified the problem starting at 1030 UTC and being fixed by 1415 UTC. It did not specify what caused it, and suggested (contrary to the experience of some internet users) that it was restricted to Asia and Europe.

I’ve reached out for comment, and will update as we discover more…

10 Comments Tagged: .club, godaddy

Donuts’ DropZone approved despite competition fears

ICANN has approved Donuts’ proposed drop-catching service, DropZone, despite concerns it could add cost to the dropping domains market.

The Org and Donuts subsidiaries representing over 200 gTLDs signed amendments September 29 that incorporate DropZone into their Registry Agreements, according to ICANN records.

The full new text in the amendments, which does a pretty good job of describing the service, is:

Dropzone Service

Registry Operator may offer the Dropzone service, which is a Registry Service that will manage the release of domain names that have reached the end of their life cycle.

The Dropzone is a separate system, parallel to the main EPP system, that will manage on a daily basis the release of domain names that have been purged for a short period of time, called the Dropzone. Any TLD-accredited registrars may use the Dropzone to register a recently-purged domain name.

On a daily basis, at the end of the Dropzone period, the Registry will execute an awarding process, which will select, per domain name, the first domain creation request submitted (first come, first serve).

What the amendment doesn’t mention are fees. The original Donuts Registry Service Evaluation Request stated in August:

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.

This caused concern at TurnCommerce, the company that runs the DropCatch.com network of registrars, which told ICANN last month that DropZone was anti-competitive and could raise the price of dropping domains.

But ICANN responded that DropZone passed its competition sniff test, and would not be referred to government authorities.

Donuts has not yet publicly announced plans to launch DropZone.

A virtually identical service, that did not mention added fees in its RSEP, was previous approved for Afilias, the registry operator Donuts acquired at the start of the year.

1 Comment Tagged: donuts, drop catching, dropcatch, dropzone, ICANN, rsep, turncommerce

I’m not kidding, ICANN is flirting with banning jokes

ICANN has come a long way since 2005 or thereabouts, when, at a public meeting, I made deputy general counsel Dan Halloran laugh so hard he vomited out of his nose.

Now, the increasingly po-faced Org has crawled so far up its own arse that it’s openly talking about banning — or at the very least discouraging — humor and lightheartedness during its thrice-annual get-togethers.

Ombudsman Herb Waye today blogged up his traditional pre-meeting reminder about the Expected Standards of Behavior, ahead of this month’s ICANN 72 AGM, which is taking place virtually.

There’s nothing wrong with this — the ESOB is merely a form of institutionalized politeness — but it’s being embellished this time around with a warning not to joke around in the Zoom chat rooms.

Waye wrote:

the intention of a comment can be difficult to ascertain without the benefit of vocal tone and body language. What was intended as a joke or light-hearted observation online to a group can unintentionally make the subject of the comment feel unfairly targeted.

I consulted with the ICANN community and organization (org) leadership for thoughts on how to promote a respectful virtual environment while also supporting the spirit of open dialogue that drives ICANN. I am grateful for their input. To ensure our Zoom sessions are engaging, inclusive, and productive, please remember these tips:

• To avoid confusion and to respect the session’s planned agenda, please keep your interventions in the public chat on the topic that is being discussed.
• Use private messages for off-topic comments.
• Before commenting or adding a joke, please remember the cultural diversity of the ICANN community and consider how your comment could be perceived.

Remember, ICANN meetings are designed to be soul-crushingly dull, and attended only by sensitive North American children, so let’s keep them that way.

7 Comments Tagged: esob, ICANN, icann 72, Ombudsman

DotConnectAfrica slammed for two-faced strategy as it loses .africa appeal

Unsuccessful gTLD applicant DotConnectAfrica has been handed what may prove to be the final nail in the coffin for its failed .africa bid.

A California appeals court has upheld ICANN’s lower-court victory over DCA in its entirety, ruling that the .africa applicant had a two-faced legal strategy that saw it first argue that it did not have a right to sue, but then suing anyway.

After having its .africa application rejected by ICANN due to lack of African government support in 2012, the following year DCA filed an Independent Review Process complaint against ICANN.

One of its key arguments in that case was that it, along with every other new gTLD applicant, had been forced to sign a legal waiver, preventing them from taking ICANN to court.

When it was handed a partial victory in the IRP, sufficient to embarrass ICANN but not enough to have .africa reassigned, DCA was one of a few parties who ignored the legal waiver and sued anyway, in 2016.

Now, the California appeals court has confirmed a lower court ruling that this violated the rule of “judicial estoppel”, which prevents a party switching between two diametrically opposing arguments to suit their strategy at any given time.

“DotConnect took two contrary positions. It told the arbitrators on the Independent Review Panel it could not sue in court. DotConnect then sued in court,” the three judges wrote.

They added that the “text of that litigation waiver was unequivocal, unconditional, and unlimited.”

The ruling describes the .africa case in pretty much the same way as I have for the last decade — DCA didn’t have government support when it applied for the gTLD and ICANN was well within its rights to throw out the application under the program’s rules.

ICANN was handed a thoroughly comprehensive victory, in other words, and awarded costs.

Is this the end of the .africa case? Given DCA boss Sophia Bekele’s apparent fondness for the sunk cost fallacy, who knows?

While all these legal shenanigans have been ongoing, .africa has been delegated to and launched by ZA Central Registry, which had the support of the African Union following an RFP that DCA refused to participate in.

There are about 30,000 .africa domains under management today, which is not terrible for a new gTLD.

The 30-page appeals court ruling (pdf) was made September 20 and ICANN published it this week.

Comment Tagged: africa, dca, dotconnectafrica, ICANN, new gTLDs, zacr

PIR poaches new CTO from Verisign

Public Interest Registry has announced the hiring of Rick Wilhelm as its new chief technology officer.

Wilhelm comes from Verisign, where he was VP of platform management. He’s also previously worked for Network Solutions and Neustar and sat on ICANN’s Security and Stability Advisory Committee.

He replaces Joe Abley, who quit for a job at Neustar in August.

Wilhelm started today, and reports to CEO Jon Nevett.

Comment Tagged: neustar, pir, verisign

Marby finds his pandemic pessimism

CEO Göran Marby has spelled out his goals for ICANN’s current fiscal year, and they include a scaled-back ambition when it comes to face-to-face public meetings in the face of an ongoing pandemic.

His first enumerated goal for the year ending June 30, 2022 is:

Develop, with the community and with support from the Board, the ability to conduct hybrid meetings that are inclusive and enhance the opportunity for community interaction and decision-making.

Compare this with his equivalent goal from July 2020:

Work with Supporting Organization and Advisory Committee leaders, community members, and the Board to define and implement a phased plan to return to face-to-face meetings.

The goal of creating a “face-to-face” meetings plan has been replace with a “hybrid” meeting plan, where some section of the community can only participate online, depending on travel restrictions.

A lot has happened in the last 15 months when it comes to the coronavirus pandemic.

In June 2020, there was still some optimism in the ICANN board that the October meeting that year would go ahead in Hamburg as normal. That didn’t happen, and the face-to-face components of the three subsequent meetings have also been cancelled.

At that time, the world still hadn’t experienced the reality of Covid-19 variants, and the possibility of multiple lockdown scenarios was still largely theoretical.

So it’s probably no surprise that Marby has been forced to rein in his hopes for bumping elbows with the global community any time soon.

ICANN 72 later this month, originally planned for Seattle, will be the sixth consecutive online-only public meeting, but Marby has been tasked by the board with making the Puerto Rico meeting next March a “hybrid” affair.

Given his goals run to mid-2022, it seems possible ICANN 74, slated for The Hague next June, is also being considered most likely a hybrid meeting.

Marby has nine goals for the year in total. Seven he wrote himself, two were set by the board. Last year, he had 10 in total of which four were set by the board.

Other areas of interest coming from his own pen include greater focus on legislation around the world, emerging technologies such as blockchain naming, outreach in the developing world, DNS security and stability and prioritizing ICANN’s increasingly overwhelming workload.

Not all of them are stated as goals, at least in Marby’s blog post, and not all appear to have measurable outcomes.

The board has told him to “stimulate Universal Acceptance” and “work with Internet governance stakeholders”. Again, it’s all pretty amorphous stuff.

One 2021 goal that does not make an appearance this year is “Develop a plan for the potential economist function”, or hiring an “astrologer in chief” as I phrased it last year.

Reasonable people could disagree with whether this one was fulfilled — the economist job has been advertised on the ICANN web site all year, but does not yet appear to have been filled.

Comment Tagged: coronavirus, covid-19, ICANN, pandemic

James Bond domains listed for sale by .bond registry

ShortDot has made James Bond related domain names in the gTLD .bond available for sale or lease, as the movie franchise’s latest outing smashes box office records.

Both james.bond and 007.bond are currently listed for sale for $25,000 each at Dan.com, with a lease-to-own option of $2,084 a month. The .bond registry is listed as the seller. They will renew at the standard rate.

The offers were announced shortly before the weekend opening of No Time To Die made a reported $120 million internationally in cinema ticket sales, beating pandemic-related box office records.

Both “James Bond” and “007” are trademarks of movie producer EON Productions, so it seems buyers might be assuming some UDRP risk. I asked ShortDot about this last week but did not receive a response.

In a press release, the company made hay about the fact that that “James” is a super-common given name and “007” is a three-digit numeric, which are both sought-after categories of domains.

These are the kinds of assertions you’d expect in a UDRP defense.

.bond was originally a dot-brand for Bond University in Australia, but it was sold to ShortDot in 2019 after laying dormant for years.

Regular .bond domains retail for about $70 a year. There are over 4,000 currently registered.

Comment Tagged: .bond, 007, james bond, new gTLDs, shortdot, trademarks, udrp

Afnic gets renewed for .fr

Incumbent .fr registry Afnic has been reinstated for another five years by the French government.

The company said its contract has been re-upped for a further period starting July 1 next year, following an open call for rival bidders that opened in May.

Between now and then, the precise terms of the deal will be worked out. The government appears to want improved security and accountability at the ccTLD.

Afnic has been running .fr, which has been estimated as a €76 million contract, since 1997.

.fr has about 3.8 million domains under management, making it a the eighth-largest ccTLD by volume.

Comment Tagged: .fr, afnic

Tucows buys UNR’s registry business as Schilling bows out

Tucows has acquired UNR’s registry business, the latest in the piecemeal sale of the old Uniregistry by founder Frank Schilling.

The Canadian registrar said it is taking on the technology platform as well as 10 UNR staffers.

Not many details of the deal, not even the purchase price, have been revealed.

“While I am slowly getting out of the industry, it’s important to me to know that my businesses are being left in the best hands,” Schilling said in a brief Tucows press release.

The deal gives Tucows a registry component to match rival GoDaddy, which acquired Neustar’s registry business last year, and makes the company the latest to throw itself into the vertically integrated domain space.

GoDaddy acquired Uniregistry’s registrar business last year also.

The UNR registry was originally Internet Systems Consortium’s but was acquired by UNR towards the beginning of the current new gTLD cycle.

It’s not currently clear which TLDs, if any, continue to run on the UNR platform. The company auctioned off 20 gTLDs in May, making $40 million, but did not disclose the buyers and none of the ICANN contracts have yet changed hands.

Certain ICANN approvals are needed before the deal closes, Tucows said.

Neither company answered DI’s questions about which TLDs are making the move, but Tucows VP Dave Woroch told us:

We are purchasing their registry platform and technology/intellectual property. In addition to servicing a number of registry operators, this platform will be applicable or beneficial to our broader registrar business, and we are looking at how we can implement some of that technology into our registrar platform. Along with this purchase of the registry platform, we have the unique opportunity to bring on a very experienced team of software engineers with specific expertise, and that will benefit our domain business at a time when it has been particularly challenging to add talent…

Tucows will be actively marketing itself as a backend registry provider, both for gTLDs and ccTLDs, and if there is another round of new gTLDs, we would fully expect to participate there as well.

Comment Tagged: acquisition, godaddy, isc, uniregistry, unr