Tucows splurges $30 million on Ascio

Tucows has spent almost $30 million on rival channel-focused registrar Ascio Technologies.
The company announced this morning that the $29.44 million deal will add about 1.8 million domains to its portfolio of managed names, along with an extra 500 resellers.
Ascio was generating $4 million of annual EBITDA before the deal closed, Tucows said in a press release, adding:

The Ascio reseller base fits squarely with Tucows’ core customer profile — ISPs, web hosting companies and website builders serving quality businesses that reward outstanding customer service with long-term loyalty.

Ascio has been owned by CSC Digital Brand Services since 2016, when it was acquired as part of a bundle of registrars in the NetNames group.
As a channel play, it was not really a fit with CSC’s core brand-protection market. It is of course a fit with Tucows, which owns OpenSRS.
The deal, which closed yesterday, has reduced choice in the space, which may not sit well with some resellers.

1 Comment Tagged: acquisition, ascio, csc, opensrs, tucows

UDRP complaints hit new high at WIPO

The World Intellectual Property Organization handled 3,447 UDRP cases in 2018, a new high for the 20-year-old anti-cybersquatting policy.
The filings represent an increase of over 12% compared to the 3,074 UDRP cases filed with WIPO in 2017. There were 3,036 cases in 2016
But the number of unique domains complained about decreased over the same period, from 6,370 in 2017 to 5,655 domains in 2018, WIPO said today.
The numbers cover only cases handled by WIPO, which is one of several UDRP providers. They may represent increases or decreases in cybersquatting, or simply WIPO’s market share fluctuating.
The numbers seem to indicate that the new policy of redacting Whois information due to GDPR, which came into effect mid-year, has had little impact on trademark owners’ ability to file UDRP claims.
UPDATE: This post was updated a few hours after publication to remove references to the respective shares of the UDRP caseload of .com compared to new gTLDs. WIPO appears to have published some wonky math, as OnlineDomain noticed.

1 Comment Tagged: cybersquatting, gdpr, ICANN, new gTLDs, trademarks, udrp, wipo

.vu to relaunch under mystery new registry

Vanuatu is to attempt to broaden the appeal of its .vu domain globally by switching to a new shared registry system.
The changes were initiated last week in Kobe, when the ICANN board of directors gave the final stamp of approval on the redelegation of the ccTLD.
.vu is now delegated to country’s Telecommunications Radiocommunications and Broadcasting Regulator (TRBR), having been managed since 1995 by Telecom Vanuatu Limited (TVL). The government passed a law in 2016 calling for the redelegation.
Under its new management, the market for .vu domains will be opened up at the registrar level. To date, TVL has operated as a sole source for .vu domains. From now on, it will just be one registrar among (presumably) many.
A registry back-end has already been selected, after tenders were received from nine companies, but it’s still in contract talks and TRBR is not ready to name the successful party just yet.
The Vanuatu government wants to encourage local ISPs and web developers to consider signing up as registrars or resellers, but the SRS will also be open to established international players.
Brand protection registrars and TLD completionists will no doubt begin to carry .vu directly as soon as they’re able to plug in to the new system.
But off the top of my head, I’m struggling to think of a strong global sales pitch for the string, other than a phonetic similarity to “view”.
It doesn’t stand for much as an acronym, doesn’t seem to work well in English as a domain hack, and doesn’t seem to mean much in other widely spoken languages (other than French, where it means “seen”, as in “déjà-vu”).
We can only hope the new management doesn’t attempt to market it with some kind of pathetic backronym.
Domains in .vu currently cost $50 (USD) per year when bought from TVL. I have no current data on how many .vu domains are registered.
InternetNZ’s Keith Davidson assisted in the redelegation and is handling comms during the handover.
Vanuatu is a Pacific archipelago nation, previously known as the New Hebrides, that gained independence from the UK and France in 1980. It had roughly 272,000 inhabitants at the last count.

2 Comments Tagged: .vu, iana, ICANN, icann 64, kobe, redelegation, telecom vanuatu, TRBR, TVL, vanuatu

AlpNames could get PAID for abandoning its customers

So it turns out selling domain names for peanuts to spammers isn’t a viable business model. Who’d have thunk?
As you’ll have no doubt already read elsewhere, ICANN has shut down AlpNames, the deep-discounting registrar with an unenviable reputation for attracting abusive registrants.
But there’s a chance that the company might actually get paid for its customer base, under ICANN rules.
ICANN today terminated AlpNames’ contract, effective immediately, having discovered the “discontinuance of its operations”.
It’s a rare case of ICANN going straight to richly deserved termination, skipping over the breach notice phase.
The former registrar’s web site has been down for the best part of a week, resolving to a Cloudflare error message saying the AlpNames web server is missing its SSL certificate.
But it appears its customers may have been experiencing problems accessing their accounts even earlier.
Judging by ICANN’s termination notice, the organization has had just about as much luck contacting AlpNames management as DI, which is to say: none.
CEO Iain Roache appears to have simply stopped paying attention to the company, for reasons unknown, allowing it to simply fade away.
At least three members of senior staff have left the company over the last several months, with former COO Damon Barnard telling DI he was asked to leave as a cost-cutting measure as Roache attempted to relocate the company from Gibraltar to the UK.
I gather that Roache is also currently tied up in litigation related to the failure of his old registry management business, Famous Four Media, which was removed by gTLD portfolio owner Domain Venture Partners last year.
So what happens now to AlpNames customers?
Fortunately, most of them should suffer only minor inconvenience.
ICANN has initiated its De-Accredited Registrar Transition Procedure, which will see all of AlpNames’ domains forcibly transferred to another registrar.
This often uses the data that registrars are obliged to periodically escrow, but in this case AlpNames uses LogicBoxes as a registrar back-end, so presumably LogicBoxes still has fresh, live data.
AlpNames had 532,941 domain names across all gTLDs on its IANA tag at the last official count, at the end of November. It’s believed to be closer to 700,000 today.
In November, its top two gTLDs were .top and .gdn, which had 280,000 names between them. It had over 19,000 .com names under management
Almost 700,000 names is a big deal, making AlpNames a top 40 registrar, and would make a nice growth spurt for any number of struggling registrars.
The portfolio could be a bit of a poisoned chalice, however, containing as it likely does a great many low-quality and some possibly abusive registrations.
At least one registrar, Epik, has publicly stated its desire to take over these domains, but due to the volume of AlpNames DUM it could be a competitive bidding process between multiple registrars.
Under the ICANN rules (pdf), a “full application process” is generally favored for defunct registrars with over 1,000 domains, when the de-accredited registrar has not named a successor.
The scoring system used to pick a winner has many criteria, but it generally favors larger registrars. They have to show they have the scale to handle the extra technical and customer support load required by the transition, for example.
It also favors registrars with breadth of gTLD coverage. They have to be accredited in all the gTLDs the dead registrar was. AlpNames supported 352 gTLDs and had active domains in 270 of them, according to November’s registry reports.
Language support may be an issue too, in case for example a substantial chunk of AlpNames business came from, say, China.
All applying registrars that score above a certain threshold are considered tied, and the tie-breaker is how much they’re willing to pay for the portfolio.
Unlike gTLD auctions, ICANN does not receive the proceeds of this auction, however. According to the policy (with my emphasis):

This procedure is not intended to create a new form of revenue for ICANN. To the extent payment is received as part of a bulk transfer, ICANN will apply funds against any debt owed by the registrar to ICANN and forward the remaining funds, if any, to the de-accredited registrar.

That’s right, there’s a chance AlpNames might actually get a small windfall, despite essentially abandoning its customers.
Think about it like the government using eminent domain to buy a house it wishes to demolish to make way for a new road. Except the house’s cellar is full of kidnapped children. And it’s on fire.
Of course, this might not happen. ICANN might decide that there’s not enough time to run a full application process without risk to AlpNames’ customers and instead simply award the dead registrar’s portfolio to one of the registrars in its pre-approved pool of gaining registrars.
That choice would be partly based on ICANN judgement and partly on which registrar is next in the round-robin queue of pre-qualified registrars.
Here’s a handy diagram that shows the procedure.

UPDATE August 12 2020: Roache recently wrote to DI and stated the following:

Alpnames itself worked closely with ICANN for months to arrange for its exit from the Registrar business and with a number of Registrars to arrange for the transfer of the customers. Your article does not reflect the detail of what transpired and is inaccurate.

4 Comments Tagged: alpnames, auction, de-accreditation, epik, ICANN, termination

O.com might be a one-off for Verisign

Verisign today was finally given approval to auction off o.com, the first single-character .com domain to hit the market since the early 1990s.
The ICANN board of directors voted to approve a contractual amendment that will lift the ban on single-character .coms in this instance, but it may not necessarily mean more will be sold in future.
The resolution passed in Japan states that the approval is “limited to the unique circumstances of this particular domain name, and the approval of the amendment does not establish a precedent that applies in other circumstances.”
So if Verisign decides it wants to sell off the remaining 22 one-letter .com domains in future, it’s going to have to go through the same lengthy approval process again, with no guarantee that ICANN will give it the nod.
Still, if the o.com proposal is hunky-dory this time around, I fail to see why ICANN would reject an identical proposal to sell a different domain.
As I explained in a blog post a week ago, Verisign will only get $7.85 a year for the domain, regardless of how many millions it raises.
The rest of the money will be distributed to non-profit causes by an independent third party.
While the auction has already cost Verisign far more money than it will make, it’s a nice PR win for the next time its .com price-raising powers are questioned.
Overstock.com, which has been lobbying ICANN and Verisign for the release of o.com for years is a virtually guaranteed bidder.
Former ICANN bigwig Kurt Pritz said recently that Overstock offered to pay ICANN $1 million to $2 million for the domain (somewhat shadily, it has to be said) over a decade ago.
Other O trademark owners that may show up include sporting goods vendor Oakley and future President of the United States Oprah Winfrey.
I hope bidders have to sign a no-suing covenant, as this is the kind of thing that could easily wind up in court.

1 Comment Tagged: auction, ICANN, o.com, overstock, verisign single-character

Andruff escalates Disspain feud, asks ICANN to ban him from chair

Domain consultant and former registry boss Ron Andruff has asked ICANN’s board of directors to ban Chris Disspain from becoming chair at the end of the year.
Writing on CircleID today, Andruff’s anti-Disspain message is veiled, but only thinly.
While not naming Disspain directly, Andruff wrote: “I call on the Chair and ICANN Board to ensure that no candidate who may be standing under a cloud of any type be considered for the highest position and authority within ICANN.”
Current chair Cherine Chalaby is out in October, when his nine-year term on the board comes to its bylaws-mandated end.
Disspain, who is currently vice chair and has always struck me as an obvious choice for the top job, has another year left on his term.
The “cloud” Andruff believes Disspain is standing under relates to longstanding allegations of “financial irregularities” at Australian ccTLD registry auDA, during the period Disspain was CEO.
It’s known that an unpublished audit of auDA by PPB Advisory in 2016 makes claims about some sloppy financial management, but there have never been any published allegations of wrongdoing by Disspain himself.
Andruff has been fighting for years with the Australian Information Commissioner to get this report, and other documents he believes might cast Disspain in a bad light, released under Aussie freedom of information law.
He was initially rebuffed, in November 2017, but appealed. After much back-and-forth, he was told two weeks ago that the Department of Communications and the Arts’ refusal to hand over the documents was in part “incorrect”. The Department is due to respond to that finding tomorrow.
It’s not at all clear what information, if any, the Department is going to release.
Andruff also notes that there’s an “ongoing police investigation” into the same “irregularities”.
The only such investigation I’m aware of involved “several” former auDA directors being referred to Victoria Police by auDA’s new management last April. There were 48 former directors at the time, and the names of those referred were not released.
Andruff is known to have beef with Disspain, who he holds responsible for his being passed over for the job as chair of the Nominating Committee in 2015.
ICANN typically does not name its new chairs until much later in the year, so it’s quite possible this is a storm that will have blown over by the time the board comes to picking Chalaby’s replacement.

1 Comment Tagged: auda, ICANN

ICANN plays tough over Amazon dot-brands

ICANN has given Amazon and the governments of the Amazon Cooperation Treaty Organization less than a month to sort out their long-running dispute over the .amazon gTLD.
The organization’s board of directors voted on Sunday to give ACTO and the e-commerce leviathan until April 7 to get their shit together or risk not getting what they want.
But both parties are going to have to come to an agreement without ICANN’s help, with the board noting that it “does not think that any further facilitation efforts by ICANN org will be fruitful”.
Attempts by ICANN to meet with ACTO over the last several months have been agreed to and then cancelled by ACTO on at least two separate occasions.
The eight ACTO governments think the string “Amazon” more rightfully belongs to them, due to it being the English name for the rain forest region they share.
Amazon the company has promised to safeguard culturally sensitive terms in .amazon, to assist with future efforts to secure .amazonas or similar for the Amazonian peoples, and to donate services and devices to the nations concerned.
Now, the two parties are going to have to bilaterally decide whether this deal is enough, whether it should be sweetened or rejected outright.
If they can’t come to a deal by ICANN’s deadline (which could be extended if Amazon and ACTO both ask for more time), ICANN will base its decision on whether to approve .amazon based on how Amazon unilaterally proposes to address ACTO’s concerns.
While a rejection of the .amazon application is still on the table, my read is that this is a bigger win for Amazon than it is for ACTO.

Comment Tagged: .amazon, acto, amazon, dot-brands, geographic, ICANN, icann 64, kobe, new gTLDs

Data beats Merdinger to head universal acceptance group

Email entrepreneur and internationalized domain name expert Ajay Data has been named as the new chair of the group that is struggling to promote the universal acceptance of top-level domains across the internet.
Data, who replaces Afilias COO Ram Mohan after a four-year term, beat GoDaddy’s VP of domains Rich Merdinger in a secret ballot of the Universal Acceptance Steering Group this week.
The number of votes each candidate received were not disclosed.
India-based Data is founder and CEO of Xgenplus, a developer of enterprise email servers with a focus on support for non-Latin scripts and internationalized domain names.
He’s been intimately involved in all things IDN for many years.
The UASG is an independent group, which receives funding from ICANN, dedicated to reaching out to software and web site developers to ensure their systems can support domain names in all scripts, including IDNs, as well as raise awareness of new gTLDs.

Comment Tagged: ICANN, idns, uasg

Radix sees revenue up 30%

New gTLD registry Radix said today that its revenue increased by 30% in 2018, largely due to an end-of-year boost.
The company, which runs nine gTLDs including .online and .site, said that gross revenue was $16.95 million last year.
It added that net profit was up 45.6%, but the privately held company does not actually disclose the dollar value of its bottom line.
Radix said that the fourth quarter of the year, which presumably saw the benefits of Operation September Thrust, was its strongest quarter.
The company said that 27% of its revenue came from standard-price new registrations and 60% from renewals.
Its premiums brought in $1.9 million, 56% of which were premium renewals.

Comment Tagged: earnings, financials, new gTLDs, radix

Verisign gets approval to sell O.com for $7.85

ICANN is to grant Verisign the right to sell a single-character .com domain name for the first time in over 25 years.
The organization’s board of directors is due to vote next Thursday to approve a complex proposal that would see Verisign auction off o.com, with almost all of the proceeds going to good causes.
“Approval of Amendment to Implement the Registry Service Request from Verisign to Authorize the Release for Registration of the Single-Character, Second-Level Domain, O.COM” is on the consent agenda for the board’s meeting at the conclusion of ICANN 64, which begins Saturday in Kobe, Japan.
Consent agenda placement means that there will likely be no further discussion — and no public discussion — before the board votes to approve the deal.
Verisign plans to auction the domain to the highest bidder, and then charge premium renewal fees that would essentially double the purchase price over a period of 25 years.
But the registry, already under scrutiny over its money-printing .com machine, would be banned from profiting from the sale.
Instead, Verisign would only receive its base registry fee — currently $7.85 per year — with the rest being held by an independent third party that would distribute the funds to worthy non-profit causes.
ICANN had referred the Verisign proposal, first put forward in December 2016, to the US government, and the Department of Justice gave it the nod in December 2017.
There was also a public comment period last May.
The request almost certainly came about due to Overstock.com’s incessant lobbying. The retailer has been obsessed with obtaining o.com for well over a decade, but was hamstrung by the legacy policy, enshrined in the .com registry agreement, that forbids the sale of single-character domains.
Whoever else wants to buy o.com, they’ll be bidding against Overstock, which has a trademark.
It’s quite possible nobody else will bid.
When Overstock briefly rebranded as O.co several years ago — it paid $350,000 for that domain — it said it saw 61% of its traffic going to o.com instead.
All single-character .com names that had not already been registered were reserved by IANA for technical reasons in 1993, well before ICANN took over DNS policy.
Today, only q.com, z.com and x.com are registered. Billionaire Elon Musk, who used x.com to launch PayPal, reacquired that domain for an undisclosed sum in 2017. GMO Internet bought z.com for $6.8 million in 2014.
With the sale of o.com now a near certainty, it is perhaps only a matter of time before more single-character .com names are also released.
No gTLD approved after 2012 has a restriction on single-character domains.
As a matter of disclosure: several years ago I briefly provided some consulting/writing services to a third party in support of the Verisign and Overstock positions on the release of single-character domain names, but I have no current financial interest in the matter.

36 Comments Tagged: .com, ICANN, o.co.o.com, overstock.com, scdn, single-character, verisign