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

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.

MMX billings double even as some volumes slide

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.

NamesCon picks if you’re not a domainer

I’m not going to NamesCon this year. Scheduling conflicts, personal life, blah blah blah. You don’t need to know.
It’s a shame, as I’ve enjoyed the show in previous years and there’s usually plenty to be learned even if, like me, you’re not a domain investor.
So while I won’t be there, I thought I’d put together a list of sessions that I’d be likely to attend in my capacity as a non-domainer, if I were attending. Which I’m not.
Don’t get me wrong, I usually find the domainer-focused stuff interesting. It’s just less interesting to me because DI is not an investment tip sheet and I personally have no pony in the race.
In agenda order…
The Evolution of Domaining
This is Frank Schilling’s seemingly annual keynote, this year subtitled “A vision for the future of domaining and how we’re going to get there. The next wave of passive income generation for the savvy domainer.”
While it’s certainly got a domainer-leaning theme, the Uniregistry CEO’s speeches are often must-listen events. Schilling is usually a candid and amiable speaker.
Plus, he’s made a shedload of cash out of domains so many people hang on his every word. That’s why he’s been on the Domain Name Wire podcast 86 times.
It’s on at 10am on Monday.
Dominate the Drop: Best Practices for Successfully Acquiring Deleting Domains
Michael White from SnapNames and Jonathan Tenenbaum from Namejet promise to spill the beans about the crazy competitive drop-catching market.
I find this aspect of the industry fascinating, especially given the arms race going on between SnapNames/Namejet and its rivals at the moment.
Over half of all ICANN-accredited registrars are currently shell companies created to bulk up the dropnets of the two aforementioned companies, as well as TurnCommerce and Pheenix.
There’s clearly money in it, so I regret I’ll be missing this session.
It’s on at 11am on Monday.
Domain Monetization for Registries and Registrars
As somebody who writes a blog largely looking at the sell-side of the industry, this session title speaks to me.
It’s being held by Michael Gilmour, CEO of ParkLogic, a company I’m not particularly familiar with.
Even if it just turns out to be a sales pitch for ParkLogic, it might be interesting anyway, due to the promise to “unlock hidden value from data that is readily accessible to you”, which intrigues me as a data nerd.
It’s on at 11am on Monday too, so it clashes with the dropcatching session.
The Most Shocking UDRP Decisions of 2016
This one sounds like fun. There are few things more amusing in the domain industry than listening to domainers moan about crappy UDRP decisions.
In this session, three industry names who are no strangers to UDRP will compete to have a decision of their choice crowned the “most shocking” of the last year.
This is on at noon on Monday.
Investing in New TLDs – Making Money in the Short and Long Term
A panel of experts discuss how to make money out of new gTLDs. I think that is going to be a hard sell to a typically skeptical domainer crowd, so I’d be curious to hear what they have to say at 2pm on Monday.
NamesCon Domain Auction 2017
Live domain auctions are sometimes entertaining, but depending on the auctioneer you may need to bring ear-protectors. It’s on at 3pm.
Uniregistry After Hours Party
If you haven’t fested enough sausage yet, now’s your chance to top up, from 9pm until “late” (which in Vegas could mean midnight, 2am, 6am, or mid-February).
Christian Domainers Breakfast Buffet
I’m slightly flabbergasted that this is a thing. What is a Christian domainer, and how do they differ from non-Christian domainers?
A special prize goes to the first person to send me a photo of themselves at this event reading a hardback copy of “The God Delusion” whilst eating a free Christian pastry.
7am Tuesday.
Building a Business to Last Decades
Despite the dry title, this is Matt Muellenweg, founder of WordPress/Automattic, and I’m interested to hear what he has to say. Plus, it’s the only thing going on at 10am on Tuesday.
China Masterclass
Few things have influenced the domain name industry over the last couple of years than China. In this session, four guys who understand the market over there discuss the trends they’re seeing and expecting.
12pm Tuesday.
Will Branded TLDs Impact the Marketplace in 2017 and Beyond?
Events promising to spill the beans about how big companies plan to use the dot-brands are rarely very informative in my experience — speakers play their cards far too close to their chests — but I keep going to them anyway.
Let’s hope the Microsoft and MarkMonitor speakers have something new to add to the conversation at 2pm.
Dollars and Sense of .net
Verisign’s Pat Kane pitches .net, which has been stagnating since the launch of new gTLDs. 3pm.
DNS Industry SWOT Analysis, 2017 Edition
The “strengths, weaknesses, opportunities and threats” for the industry according to… ICANN?
Global Domains Division head and occasional CEO Akram Atallah is the only big ICANN name speaking at this year’s NamesCon, so it’s worth checking this session out for that reason alone.
It’s on at 9.30am on Wednesday.
A Look Ahead at New TLDs
Three registries and one registrar discuss the future of new gTLDs at 11am on Wednesday.
Bloggers Broadcast: Dispatches from NamesCon 2017
An opportunity to throw things at my competitors at 12pm on Wednesday.
The Pragmatic Rebel: a Fireside Chat with Elliot Noss
Noss is one of the most engaging speakers in the industry in my view, even if the subject matter of this session is not quite up my alley. 1pm Weds.
Privacy and Your Domains
This review of domain privacy developments is right up my alley, but it also clashes with the Noss interview.
Executive Roundtable: Industry Trends Forecast for 2017
A conference roundup from four registry/registrar bigwigs closes down the conference.

GMO and Radix secure Chinese gTLD approval

GMO Registry and Radix have won Chinese government approval for their respective new gTLDs .shop and .site.
It’s the second batch of foreign new gTLDs to get the nod from China’s Ministry of Industry and Information Technology, following .vip, .club and .xyz in early December.
They’re also the first two Asian registries from outside China to get the right to flog their domains in China — GMO is Japanese and Radix is UAE-based with Indian roots.
Their new Chinese government licenses mean Chinese registrars will now be able to allow their customers to actually use .shop and .site domains to host web sites.
The registries in turn have had to agree to enforce China’s rather arbitrary and Draconian censorship policies on their Chinese customers.
The approvals were announced by MIIT December 29.
.site currently has about 570,000 domains in its zone file, making it a top-10 new gTLD by volume, while .shop, which launched much more recently, has over 100,000.
The ability for Chinese customers to develop their domains is no doubt good for the long-term health of TLDs, but it’s not necessarily a harbinger of shorter-term growth in a market where domains are often treated little more than meaningless baseball cards to be traded rather than commodities with intrinsic value.

.xyz, .club and .vip get the nod to sell in China

The Chinese government has granted licenses to operate in the country to its first tranche of new gTLDs — .vip, .club and .xyz.
The agreements mean that Chinese registrars will be able to give their Chinese customers the ability to actually use their domains for web sites.
It also means the companies will be obliged to censor domains the government does not like, but only those domains registered via Chinese registrars.
The Ministry of Industry and Information Technology announced the licenses, given to the Chinese subsidiaries of Minds + Machines, .CLUB Domains and XYZ.com respectively, today.
M+M CEO Toby Hall told DI that it’s “a great moment of support for Chinese registrars”, giving them a “very clear signal about which TLDs they can focus on”.
XYZ.com said in a blog post that some of its Chinese registrars (its biggest channel) are planning on offering discounts to celebrate the approval.
It’s always been possible for Chinese people to register new gTLD domains via Chinese registrars — it’s estimated that 42% of the 27 million new gTLD domains in existence today are Chinese-owned.
However, Chinese citizens need a government license if they want to launch a web site, and the government only issues licenses for domains in approved TLDs.
In addition to .cn and China-based gTLDs, which were the first to be given the nod, Verisign was approved earlier this year for .com.
Hall said that while .vip has been popular with Chinese domainers, the MIIT license means it can start to tap the small business market there too.
Obtaining the license means that the three registries, which are all based in the US or Europe, will have to comply with Chinese regulations when it comes to Chinese customers.
That basically means the Chinese government gets to censor pretty much anything it doesn’t like, up to and including sites that “spread rumors”.
Hall said that there’s no chance of this censorship bleeding out to affect non-Chinese customers.
M+M, along with XYZ and .CLUB, are using Chinese registry gateway ZDNS to act as a proxy between their own back-ends (Nominet for .vip, Neustar for .club and CentralNic for .xyz) and Chinese registrars.
“All of our Chinese web sites go through ZDNS, so only web sites going through ZDNS would be affected,” Hall said, referring to the censorship rules.
Hall added that he was “not aware” of there being a blocklist of politically sensitive strings that Chinese customers are not allowed to register.

Short .at domain auction raises over $1m

Nic.at’s three-stage auction of one and two-character .at domains has raised over $1 million.
Auction house Sedo announced today that over 1,000 .at names were sold, for a combined total of over $1 million.
The biggest-ticket name was c.at, which went for €56,000, according to Sedo.
Bidders were not restricted to Austria or German-speaking nations. Sedo said notable bids came in from China, the US and Canada.
Here’s the top-ten list, priced in euros:
[table id=46 /]

XYZ hires .top guy as first China employee

XYZ.com has hired its first Beijing-based employee, as part of its ongoing plan to formally enter the Chinese market.
The company said yesterday that it has appointed Mason Zhang, until recently chief marketing office at .top gTLD registry Jiangsu Bangning Science & Technology Co, as its new director of business development for China.
It’s part of XYZ’s seemingly interminable entry to the Chinese market, which is over a year old.
While the majority of .xyz’s registrations have been into China, the registry (along with pretty much every other Western registry) still does not have the necessary government permissions so that its customers can start using their names.
It kicked off a process to get ICANN approval for its Chinese gateway, operated by ZDNS, a year ago, and set up the mandatory Wholly Owned Foreign Enterprise in January.
The company said in a blog post that it expects to get its Chinese accreditation “very soon”.
Zhang’s former employer, .top, is second only to .xyz in terms of new gTLD registration volume, also due to Chinese sales. It has about 3.7 million names in its zone file, compared to .xyz’s 6.1 million.

Obama formally hands internet over to UN

US President Barack Obama today formally signed over control of the internet to the United Nations.
At a ceremony in Washington DC this morning, Obama officially granted the UN, which is controlled by China, Russia and Iran, the ability to censor any web site that does not conform to strict standards of speech.
UN Secretary-General Banksey Moon, who is a foreigner, said that the first order of business under the new regime is to permanently delete the following web sites:

breitbart.com
infowars.com
rushlimbaugh.com
foxnews.com
heritage.org
nra.org
tedcruz.org

A longer list, banning a further 8,102,671 domains, will be published later this week, Moon said.
In addition to the web site deletions, the following new rules have come into immediate international effect:

• all new web sites will be subject to monthly reviews by the Grand Mufti of Oman for compliance with Sharia law.
• a proposal to force migration of all .com web sites to .ke will be considered by a panel comprised entirely of coastal liberal elites, many of whom may be lesbians.
• registered Republicans only get 139 characters on Twitter.
• pornographic content will be subject to Japanese-style genital pixelation, which nobody likes.
• the emoji of the hanged black man has been banned.
• all browsers will have their home pages hard-coded to hillaryclinton.com, with no opt-out.
• everyone has to have the new U2 album on their phones.
• all YouTube cat videos will be preceded by a three-minute infomercial from PETA.
• “They” are coming to take away your guns.

Members of the Grand Unified Jewish Conspiracy can request an exemption from any of the new rules by showing the appropriate credentials at time of registration.
The new regime was warmly welcomed by all those still legally permitted to express an opinion.
“Today is a great day for freedom,” Senator Bernie Sanders, the new UN Special Envoy for Thought Compliance, said at a press conference.
“No longer will right-thinking internet users run the risk of coming across dangerous ideas as they go about their daily business online,” he said.
* * *
For avoidance of doubt: this article is satire. None of this stuff is going to happen. I’m merely gently trolling some of the coverage the IANA transition has received in certain media outlets and on the fringes of Twitter over the last several weeks.

ICANN handover in jeopardy as Texas leads lawsuit against US government

The state attorneys general of Texas, Arizona, Nevada and Oklahoma have sued the US Federal government to stop tomorrow’s planned IANA transition.
The 11th-hour suit seeks a court declaration that the transition would be unconstitutional and a temporary restraining order forcing the National Telecommunications and Information Administration to continue its oversight role.
It’s rooted in the conspiracy theories championed by the likes of Texas Senator Ted Cruz, who holds that allowing the NTIA to stop authorizing DNS root modifications is akin to handing broad internet censorship powers to Russia, China and Iran.
“Trusting authoritarian regimes to ensure the continued freedom of the internet is lunacy,” Texas Attorney General Ken Paxton said in a press release, losing about a thousand credibility points.
“The president does not have the authority to simply give away America’s pioneering role in ensuring that the internet remains a place where free expression can flourish,” he said.
The AGs reckon the remaining root zone partners, ICANN and Verisign, which are not bound by the First Amendment, could crack down on free speech.
The complaint states:

NTIA intends to delegate its approval authority over changes to the root zone file to ICANN and Verisign, and give these companies unbridled discretion to make changes to that file, with no substantive constraints on their decisions to grant or deny requests to alter the file that effectively enable or prohibit speech on the Internet.
Without the federal government approval authority, ICANN and Verisign have complete discretion to engage in this type of discrimination, and because these entities are private, citizens and States will not be able to use the democratic process

Citing the Property Clause of the U.S. Constitution, the AGs claim that the government does not have the authority to legally remove itself from oversight of the DNS root zone.
The DNS root is US property that cannot be disposed of without an act of Congress, the complaint alleges:

The Authoritative Root Zone File, the Internet Domain Name System as a whole, the exclusive right to approve changes to the root zone file, and the contracts NTIA administers in exercising control over them are property of the United States

The US Government Accountability Office told Cruz earlier this month that it was “doubtful” that it the transition requires the disposal of any US government property, in this report (pdf).
The AGs also reckon that if the US is no longer involved in root zone management, ICANN could delete .mil and .gov or transfer them to third parties.
The IANA contract between ICANN and NTIA is due to expire tomorrow night, ushering in a new era in which the global internet community becomes the back-stop preventing ICANN abusing its powers for Evil.
Cruz has been fighting against the transition for reasons best known to himself for months.
Most recently, he led an attempt to have a block on the transition included in a US federal funding bill, which wound up being passed yesterday with no such clause attached.
The four-state AG complaint can be read here (pdf).

Chinese investor pumps $7 million into M+M as .vip pushes firm into profit

Minds + Machines made a profit, kinda, in the first half of the year, due to the popularity of .vip in China.
The company today announced a loss of $1.9 million for the six months to June 30, compared to a $1.6 million loss in the comparable 2015 period, on revenue that was up 115% at $7.4 million.
But factoring out discontinued operations — M+M started to close its registrar and registry back-end businesses during the half — it actually managed to sneak a profit of $56,000.
Its revenue was also unaffected by one-time gains from gTLD auction losses, something which had pumped up its top line regularly for the last few years.
Chairman Guy Elliot said in a statement to the markets that M+M “has successfully been navigated out of troubled waters”.
The turnaround is due in no small part to the success of .vip, which racked up over 400,000 registrations in its first month (back in May), the large majority of which were sold to Chinese investors.
The company said that $5.5 million of the $8 million in H1 billings were made in the first 21 days of .vip’s availability.
Having started 2016 with no sales in Asia whatsoever, it expects 45% of its revenue to come from China by the end of the year.
As a direct consequence of .vip’s sales, M+M has received a £5.5 million ($7.2 million) investment from Goldstream Capital Master Fund I, a Cayman Islands shell company owned by Chinese private equity firm Hony Capital.
Hony, which manages $10 billion in assets, is perhaps best known for owning the pizza restaurant chain Pizza Express, which it acquired for $1.54 billion in 2014.
According to its web site, Hony’s own investors include three large Chinese state-owned investment vehicles.
The investment deal includes clauses preventing Hony from trying to get a director on M+M’s board and/or launching a hostile takeover bid.
It will own 7.17% of M+M after buying 50 million shares at £0.13 each, assuming M+M’s simultaneously announced £13 million ($17 million) share buyback is fully subscribed.
M+M opened a subsidiary in China (a Wholly-Owned Foreign Enterprise) during the half, in order to better serve the Chinese market and comply with Chinese government regulations.
It simultaneously laid off 44% of its staff in the US — engineers no longer needed due to the shift into an almost entirely marketing-focused business — and expects to end the year with only 13 employees there.