PwC wants to be your Whois gatekeeper

PricewaterhouseCoopers has built a Whois access system that may help domain name companies and intellectual property interests call a truce in their ongoing battle over access to private Whois data.
Its new TieredAccess Platform will enable registries and registrars to “outsource the entire process of providing access to non-public domain registration data”.
That’s according to IP lawyer Bart Lieben, partner at the Belgian law firm ARTES, who devised the system and is working with PwC to develop it.
The offering is designed to give trademark lawyers access to the data they lust after, while also reducing costs and mitigating domain name industry liability under the General Data Protection Regulation.
TieredAccess would make PwC essentially the gatekeeper for all requests for private Whois data (at least, in the registries plugged into the platform) coming from the likes of trademark owners, security researchers, lawyers and law enforcement agencies.
At one end, these requestors would be pre-vetted by PwC, after which they’d be able to ask for unredacted Whois records using PwC as an intermediary.
They’d have to pick from one of 43 pre-written request scenarios (such as cybersquatting investigation, criminal probe or spam prevention) and assert that they will only use the data they obtain for the stated purposes.
At the other end, registries and registrars will have adopted a set of rules that specify how such requests should be responded to.
A ruleset could say that cops get more access to data than security researchers, for example, or that a criminal investigation is more important than a UDRP complaint.
PwC has created a bunch of templates, but registrars and registries would be able to adapt these policies to their own tastes.
Once the rules are put in place, and the up-front implementation work has been done to plug PwC into their Whois servers, they wouldn’t have to worry about dealing with Whois requests manually as most are today. The whole lot would be automated.
Not even PwC would have human eyes on the requests. The private data would only be stored temporarily.
One could argue that there’s the potential for abusive or non-compliant requests making it through, which may give liability-nervous companies pause.
But the requests and response metadata would be logged for audit and compliance, so abusive users could be fingered after the act.
Lieben says the whole system has been checked for GDPR compliance, assuming its prefabricated baseline scenarios and templates are adopted unadulterated.
He said that the PwC brand should give clients on both sides “peace of mind” that they’re not breaking privacy law.
If a registrar requires an affidavit before releasing data, the assertions requestors make to PwC should tick that box, he said.
Given that this is probably a harder sell to the domain name industry side of the equation, it’s perhaps not surprising that it’s the requestors that are likely to shoulder most of the cost burden of using the service.
Lieben said a pricing model has not yet been set, but that it could see fees paid by registrars subsidized by the fees paid by requestors.
There’s a chance registries could wind up paying nothing, he said.
The project has been in the works since September and is currently in the testing phase, with PwC trying to entice registries and registrars onto the platform.
Lieben said some companies have already agreed to test the service, but he could not name them yet.
The service was developed against the backdrop of ongoing community discussions within ICANN in the Expedited Policy Development Working group, which is trying to create a GDPR-compliant policy for access to private Whois records.
ICANN Org has also made it known that it is considering making itself the clearinghouse for Whois queries, to allow its contracted parties to offload some liability.
It’s quite possible that once the policies are in place, ICANN may well decide to outsource the gatekeeper function to the likes of PwC.
That appears to be what Lieben has in mind. After all, it’s what he did with the Trademark Clearinghouse almost a decade ago — building it independently with Deloitte while the new gTLD rules were still being written and then selling the service to ICANN when the time came.
The TieredAccess service is described in some detail here.

5 Comments Tagged: abuse, artes, cybersquatting, gdpr, law enforcement, pricewaterhousecoopers, pwc, security, tieredaccess platform, trademarks, whois

.wang cut off with Chinese red tape

The registry behind .wang and several Chinese-language gTLDs has seen its official registry web site blocked due to Chinese regulations.
Zodiac Registry, which also runs .商城, .八卦 and .网店 (“mail”, “gossip” and “shop”), has seen zodiacregistry.com intercepted by its web host and replaced with a placeholder message explaining that the site lacks the proper government license.

It seems to have happened relatively recently. Google’s cache shows results from the page resolving normally in late May.
Ironically, its host is Alibaba, which also happens to be its largest registrar partner.
There’s no suggestion that registry operations or registrants have been affected. Domain availability checks at registrars for Zodiac TLDs appear to be working as normal.
The downtime appears to be a configuration problem. Alibaba requires customers to submit their Internet Content Provider license number before it will allow their sites to resolve properly.
ICP licenses are part of China’s censorship regime, issued by the Ministry of Industry and Information Technology. They must be obtained by any Chinese web site that wants to operate in China.
Zodiac does in fact have such a license, which according to the MIIT web site is active on at least six other domains.
While zodiacregistry.com is the domain officially listed with IANA for the company, it also operates TLD-specific sites such as bagua.wang for the “gossip” registry. None of these have been affected by the licensing issue.
UPDATE June 12: The site is now back online as normal.

Comment Tagged: .wang, china, icp license, miit, new gTLDs, zodiac registry

This latest Chinese bubble could deflate ccTLD growth

With many ccTLD operators recently reporting stagnant growth or shrinkage, one registry has performed stunningly well over the last year. Sadly, it bears the hallmarks of another speculative bubble originating in China.
Verisign’s latest Domain Name Industry Brief reported that ccTLDs, excluding the never-shrinking anomaly that is .tk, increased by 1.4 million domains in the first quarter of the year.
But it turns out about 1.2 million of those net new domains came from just one TLD: Taiwan’s .tw, operated by TWNIC.
Looking at the annual growth numbers, the DNIB reports that ccTLDs globally grew by 7.8 million names between the ends of March 2018 and March 2019.
But it also turns out that quite a lot of that — over five million names — also came from .tw.
Since August 2018, .tw has netted 5.8 million new registrations, ending May with 6.5 million names.
It’s come from basically nowhere to become the fifth-largest ccTLD by volume, or fourth if you exclude .tk, per the DNIB.
History tells us that when TLDs experience such huge, unprecedented growth spurts, it’s usually due to lowering prices or liberalizing registration policies.
In this case, it’s a bit of both. But mostly pricing.
TWNIC has made it much easier to get approved to sell .tw names if you’re already an ICANN-accredited registrar.
But it’s primarily a steep price cut that TWNIC briefly introduced last August that is behind huge uptick in sales.
Registry CEO Kenny Huang confirmed to DI that the pricing promo is behind the growth.
For about a month, registrants could obtain a one-year Latin or Chinese IDN .tw name for NTD 50 (about $1.50), a whopping 95% discount on its usual annual fee (about $30).
As a result, TWNIC added four million names in August and September, according to registry stats. The vast majority were Latin-script names.
According to China domain market experts Allegravita, and confirmed by Archive.org, one Taiwanese registrar was offering free .tw domains for a day whenever a Chinese Taipei athlete won a gold medal during the Asian Games, which ran over August and September. They wound up winning 17 golds.
Huang said that the majority of the regs came from mainland Chinese registrants.
History shows that big growth spurts like this inevitably lead to big declines a year or two later, in the “junk drop”. It’s not unusual for a registry to lose 90%+ of its free or cheap domains after the promotional first year is over.
Huang confirmed that he’s expecting .tw registrations to drop in the fourth quarter.
It seems likely that later this year we’re very likely going to see the impact of the .tw junk drop on ccTLD volumes overall, which are already perilously close to flat.
Speculative bubbles from China have in recent years contributed to wobbly performance from the new gTLD sector and even to .com itself.

Comment Tagged: .tw, allegravita, cctlds, dnib, pricing, taiwan, twnic, verisign

Dodgy registrars could be banned from .org promotions

The worse a registrar is at tackling abuse, the more likely it is to be excluded from promotions in the .org space, according to a new policy from Public Interest Registry.
The .org registry said today that it is introducing a new “Quality Performance Index” to rate its registrars according to the quality of their registrations.
They’ll be ranked according to three criteria: abuse takedown, renewal rates, and domain usage.
Those that score above a certain threshold will be pre-qualified for promotions. The others will be encouraged to talk to their PIR rep about things they could do to get their scores up.
This kind of mechanism should in theory make it relatively easy to separate registrars into conscientious corporate citizens on the one hand and fly-by-night spam-friendly jerks on the other.
Keeping the bad guys away from the discounts could go a long way to keeping .org a relatively healthy zone.
But I expect there may be concern from the middle-ground of the registrar space, where we have well-meaning but under-resourced registrars that may find their scores wanting.
An additional concern may be that PIR said it intends to change the score threshold depending on the promotion, which appears to give it the ability to exclude registrars more or less at will.
The QPI initiative also extends to PIR’s newer, lesser-used gTLDs.

Comment Tagged: .org, pir, pricing, promotions, public interest registry, quality performance index

India’s largest registrar goes insolvent, gets suspended

India’s largest independent registrar has been found insolvent by a local court, after failing to pay back $28 million in bank loans.
Net 4 India has now also had its right to sell gTLD domains suspended by ICANN as a result.
Judging by legal papers (pdf) buried on Net4’s web site, the insolvency relates to a series of loans the company took out with the State Bank of India between 2002 and 2012.
After the company failed to pay those loans back, in 2014 the debt was acquired from SBI by Edelweiss Asset Reconstruction, which specializes in buying debt cheap then recovering it through the courts.
Edelweiss sued Net4 to get its money back a couple of years ago and, in March this year after what appears to have been a slam-dunk, won its case.
The ruling states that the outstanding debt in 2017 was almost two billion rupees — Rs 1,940,860,284, which works out to just short of $28 million at today’s rates.
Having learned about the insolvency in April, ICANN set about trying to contact Net4’s management to see if the company was coming back into compliance.
ICANN’s Registrar Accreditation Agreement says ICANN can terminate registrars’ contracts if they are in insolvency proceedings for more than 30 days.
After the company failed to show it was compliant, this week its RAA was suspended from June 21 to September 19.
During that period, Net4 will not be able to sell new domain registrations or accept incoming transfers. It will also have to display a notice on its web site to that effect.
If it has not demonstrated compliance by August 28, ICANN may start its termination process.
Net4 is the largest ICANN-accredited registrar based in India, as measured by number of registered gTLD domains (excluding Public Domain Registry, LogicBoxes, and several affiliated dummy accreditations, which are all owned by US-based Endurance International).
It had over 100,000 gTLD domains under management at the end of February — almost all in .com and other legacy gTLDs — but its DUM had been shrinking hard for many months.
At some point, Net4 appears to have been listed on both India’s National Stock Exchange and the Bombay Stock Exchange, but was delisted about a year ago.

Comment Tagged: edelweiss, ICANN, insolvency, net 4 india, net4, suspension, termination

ZADNA CEO suspended for “hybrid misconduct”

The CEO of South Africa’s ccTLD registry has reportedly been suspended amid claims of “acts of misconduct”.
According to reports in the local tech press, Vika Mpisane was suspended in early December and has been subject to a delayed disciplinary process since January.
“Mr Vika Mpisane was suspended for serious hybrid acts of misconduct including mismanagement of ZADNA funds and others,” ZADNA chair Motlatjo Ralefatane told MyBroadband.
While details are rather thin on the ground, there are local rumors that some of the allegations relate to Mpisane’s salary and bonuses.
Ralefatane reportedly said that forensic accounting investigations are ongoing.
ZADNA, the ZA Domain Name Authority, is a non-profit organization and official ccTLD manager for .za. It answers to the South African government, but is not funded by it. It should not be confused with ZACR, the commercial entity that actually runs the .za registry on ZADNA’s behalf.
Mpisane has come under increased scrutiny this week as it turns out he is running unopposed for the Southern Africa seat on the board of AFRINIC, the Regional Internet Registry responsible for handing out IP addresses on the continent, apparently without ZADNA’s knowledge.
According to MyBroadband, Ralefatane believes Mpisane should not be representing that he has ZADNA’s support for his run.
His CV (pdf), posted to the AFRINIC web site in April, states that he is the current CEO of ZADNA, with no reference to his suspension.
Ralefatane reportedly added that she is not sure if AFRINIC or ICANN are aware of the allegations against him. They are now.
Mpisane is still listed on ZADNA’s web site as its CEO, also with no reference to the suspension.
His bio on the site reads, in its entirety (errors from the original): “The voice of reason and wisdom An outstanding leader with passion about the internet and what is has to offer. He walks the talk and talks the talk”.

1 Comment Tagged: .za, afrinic, cctlds, ICANN, zacr, zadna

Brand kills off gTLD that is actually being USED

Two more companies have told ICANN they’ve changed their minds about running a dot-brand gTLD, including the first example of a TLD that is actually in use.
Dun & Bradstreet has said it no longer wishes to launch .duns, and Australian insurance company iSelect has had enough of .iselect.
Both companies filed to voluntarily terminate their ICANN registry agreements in March, and ICANN published its preliminary decision to allow them to do so this week.
While business data provider D&B never got around to using .duns, .iselect has had dozens of active domains for years.
The company started putting domains in its zone file about three years ago and had over 90 registered names at the last count, with about a dozen indexed by Google. That’s a quite a lot for a dot-brand.
It is using domains such as home.iselect, news.iselect and careers.iselect as redirects to parts of its main corporate site, while domains such as gas.iselect, creditcards.iselect and health.iselect send customers to specific product pages.
They all redirect to its main iselect.com.au site. There are no web sites as far as I can tell that keep visitors in the .iselect realm.
I’m pretty certain this is the first example of a voluntary contract termination by a dot-brand that is actually in active use.
There have been 52 such terminations to date, including these two latest ones, almost all of which have been dot-brands that never got out of the barn door.
That’s over 10% of the dot-brands that were delegated from the 2012 gTLD application round.

1 Comment Tagged: .duns, dot-brands, dun & bradstreet, ICANN, iselect, new gTLDs, termination, trademarks

Time for some more ICANN salary porn

ICANN has filed its tax return for its fiscal 2018, so it’s once again that time of the year in which the community gets to salivate over how much its top staffers get paid.
The latest form 990, covering the 12 months to June 30, 2018, shows that the top 21 ICANN employees were compensated to the tune of $10.3 million, an average of $492,718 each.
That’s up about 4% from $9.9 million in the previous year, an average across the top 21 staffers of $474,396 apiece.
These numbers include base salary, bonuses, and benefits such as pension contributions.
Employee compensation overall increased from $60 million to $73.1 million.
The biggest earner was of course CEO Göran Marby, who is now earning more than his immediate predecessor Fadi Chehadé but a bit less than last-but-one boss Rod Beckstrom.
Marby’s total compensation was $936,585, having received a bonus of almost $200,000 during the year. His base salary was $673,133.
The number of staffers receiving six-figure salaries increased from 159 in fiscal 2017 to 183 — about 44% of its estimated end-of-year headcount.
Towards the end of the reported year, as ICANN faced a budget crunch, many members of the ICANN community had called on the organization to rein in its spending on staff.
ICANN says it targets compensation in the 50th to 75th percentile range for the relevant industry.
The top five outside contractors in the year were:

• Jones Day, ICANN’s go-to law firm. It received $5.4 million, down from $8.7 million in 2017.
• Zensar Technologies, the IT consultancy that develops and supports ICANN software. It received $3.7 million.
• IIS, the Swedish ccTLD registry, which does pre-delegation testing for new gTLDs. It received $1.3 million.
• Iron Mountain, the data escrow provider. It received $1.1 million.
• Infovity, which provides Oracle software support. It received $1 million.

The return shows that ICANN made a loss of $23.9 million in the year, on revenue that was down from $302.6 million to $136.7 million.
The primary reason for this massive decrease in revenue was the $135 million Verisign paid for the rights to run .web, at an ICANN last-resort auction, in ICANN’s fiscal 2017.
The tax form for 2018 can be found here (pdf) and 2017’s can be found here (pdf).

1 Comment Tagged: 990, budget, earnings, financials, ICANN, tax

Smaller registrars say .uk release is biased towards the Big Boys

A group of small .uk registrars have complained to Nominet that the imminent release of three million second-level .uk domain names is biased towards their deep-pocketed rivals.
So far, 33 registrars have signed a petition, penned by Netistrar’s Andrew Bennett, against Nominet’s rules.
On July 1, the registry plans to start releasing .uk 2LDs that are currently reserved under its five-year-long grandfathering program.
These are domains that match existing third-level domains in .co.uk, .org.uk, etc.
The 3LD registrants have until 0500 UTC on June 25 to claim their 2LD matches. A week later, Nominet will start releasing them in alphabetical batches of 600,000 per day, over five days, to the available pool.
It’s going to be a little like “the drop” in gTLDs such as .com, with registrars all vying to pick up the most-valuable names as soon as they are released.
In the gTLD space, each registrar is given an equal number of connections, which is why drop-catch specialists such as SnapNames own hundreds of registrar accreditations.
Nominet’s doing it a little different, instead throttling connections based on how much credit registrars have with the registry, which the petitioners believe rigs the system towards the registrars with the most money.
According to the Nominet, registrars with £450 of credit get six connections per minute, rising to nine per minute for those with £4,500, 60 per minute for £45,000 and, at the top end, 150 per minute for registrars with £90,000 stashed in the Bank of Nominet.
Larger registrars with multiple Nominet accreditations, known as “tags” in the .uk space, will be able to stack their connections for an even greater chance at grabbing the best names.
Registrars such as GoDaddy are already taking pre-orders and will auction off the domains they catch to the highest bidder, if there are multiple pre-orders for the same names, so there’s potentially a fair bit of money to be made.
The small registrars say these credit-based rules are “disproportionately unfair” to their business models.
They point out that it doesn’t make much sense to rate-limit connections based on their proven ability to pay, given that there’s no link between how many they plan to register in the crucial first minute after the drop and how many they intend to register overall.
Nominet says on its web site that the tiers as described are provisional and will be firmed up the week of June 24.
The petitioners are also bothered that Nominet has not made any EPP code available to help the smaller guys, which have fewer engineering resources, to adjust to this temporary, time-sensitive registration system, and that the release plan was not communicated well to registrars.
They further claim that Nominet has not conducted enough outreach to .uk registrants to let them know their grandfathered rights will soon expire.
Many well-known brands have yet to claim their trademark.uk names, they claim.
Nominet has previously told DI that it planned to advertise the end of grandfathering in the press and on radio in the run-up to the release.

3 Comments Tagged: .uk, 2lds, direct.uk, dropcatching, netristrar, nominet, second-level, trademarks

New gTLDs slip again in Q1

The number of domains registered in new gTLDs slipped again in the first quarter, but it was not as bad as it could have been.
Verisign’s latest Domain Name Industry Brief, out today, reports that new gTLD domains dropped by 800,000 sequentially to end March at a round 23.0 million.
It could have been worse.
New gTLD regs in Q1 were actually up compared to the same period last year, by 2.8 million.
That’s despite the fact that GRS Domains, the old Famous Four portfolio, has lost about three million domains since last August.
Verisign’s own .com was up sequentially by two million domains and at 141 million, up by 7.1 million compared to Q1 2018. But .net’s decline continued. It was down from 14 million in December to 13.8 million in March.
Here’s a chart (click to enlarge) that may help visualize the respective growth of new gTLDs and .com over the last three years. The Y axes are in the millions of domains.

New gTLDs have shrunk sequentially in six of the last 12 quarters, while .com has grown in all but two.
The ccTLD world, despite the woes reported by many European registries, was the strongest growth segment. It was up by 2.5 million sequentially and 10 million compared to a year ago to finish the period with 156.8 million.
But once you factor out .tk, the free TLD that does not delete expired or abusive names, ccTLDs were up by 1.4 million sequentially and 7.8 million on last year.

Comment Tagged: .com, .net, cctlds, dnib, domain name industry brief, Famous Four Media, ffm, grs domains, new gTLDs, verisign