Modest pay rises for ICANN top brass

ICANN’s six top executives have been given pay raises up to 3.5%, according to resolutions passed at ICANN 78 last week.

The increases are a little ahead of US inflation but a little below the market rate if these officers were to work elsewhere, according to the resolutions.

Interestingly, interim CEO Sally Costerton is named in a pay-rise resolution for the first time, perhaps indicating she’s no longer being paid through the UK-based consulting company she owns, which has allowed ICANN to hide her compensation in its annual tax filings.

The resolution raises her “salary” by up to 3.5% for her role as senior advisor to president and SVP, Global Stakeholder Engagement, but does not mention the fact that she’s also acting CEO.

1 Comment Tagged: ICANN, salaries

Nominet wins Microsoft’s dot-brand business from Verisign

Nominet has taken over back-end registry services for Microsoft’s small portfolio of dot-brand gTLDs.

The company said it’s now running .azure, .bing, .hotmail, .microsoft, .windows and .xbox TLDs, bringing the total number of gTLDs on its registry platform to 74.

Microsoft had been with Verisign to date, but Verisign told us in July that it’s getting out of the dot-brand back-end business.

Almost 100 gTLDs have left Verisign this year, the vast majority landing at Identity Digital.

Nominet also took on .sky from Verisign earlier this year.

Comment Tagged: Microsoft, nominet, verisign

Looks like the fight for .hotel gTLD is over

One of the longest-running fights over a new gTLD may be over, after three unsuccessful applicants for .hotel appeared to throw in the towel on their four-year-old legal fight with ICANN.

In a document quietly posted by ICANN last week, the Independent Review Process panel handling the .hotel case accepted a joint request from ICANN and applicants Fegistry, Radix and Domain Venture Partners to close the case.

The applicants lawyers had told ICANN they were “withdrawing all of their claims” and the panel terminated the case “with prejudice”.

They had been fighting to get ICANN to overturn its decision to award .hotel to HOTEL Top-Level-Domain (HTLD), formerly affiliated with Afilias, which had won a controversial Community Priority Evaluation.

CPE was a process under the 2012 new gTLD program rules that allowed applicants in contention sets to avoid an auction if they could show sufficient “community” support for their bids, which HTLD managed to do.

The Fegistry complaint was the second IRP to focus on this decision, which was perceived as unfair and inconsistent with other CPE cases. The first ran from 2015 to 2016 and led to an ICANN win.

Part of the complaints focused on allegations that an HTLD executive improperly accessed private information on competing applicants using a vulnerability in ICANN’s applications portal.

The IRP complainants had also sued in Los Angeles Superior Court, but that case was thrown out in July due to the covenant not to sue (CNTS) that all new gTLD applicants had to agree to when they applied.

The fight for .hotel had been going on for longer than that for .web, but unlike .web it appears that this fight may finally be over.

Comment Tagged: .hotel, cpe, dvp, Fegistry, htld, ICANN, irp, radix

China has .com’s growth by the balls

Verisign has downgraded its expectations for .com/.net growth for the year into potentially negative territory, citing — not for the first time — low demand from China.

The registry expects its domain name base to grow at a maximum of 0.4% or shrink as much as 0.4% by the end of the year. That compares to a prediction of between 0% and 2.25% growth at the start of the year.

“Low demand from China remains the primary source of drag on the overall domain name base growth,” CEO Jim Bidzos told analysts on Thursday. “Excluding registrars based in China, both our domain name base and new registrations are up year-over-year”.

The company’s regulatory filing for Q3 shows that China revenue was down from $26.8 million to $22 million over the year. It was the only one of the four geographic reporting segments to show a shrinkage.

Verisign ended Q3 173.9 million .com/.net domains under management, down 0.1% over the year and down half a million names in the quarter.

While DUM growth may be on the decline, price hikes compensate and keep Verisign’s dollar-growth going.

The company reported year-over-year revenue growth up 5.4% at $376 million for the quarter of 2023. Net income was $188 million, up from $169 million a year ago.

Comment Tagged: .com, .net, china, earnings, financials, verisign

.web fight back in “court”

ICANN is heading back to the quasi-courtroom of its Independent Review Process, after .web auction runner-up Altanovo Domains filed its second IRP complaint about the controversy-ridden gTLD.

I first reported that the complaint had been filed back in July, but it was not until last Thursday that ICANN published the document, along with thousands of pages of exhibits and its own response, almost all thoroughly redacted to remove references to the one contract at the heart of the mess.

Now-independent Altanovo, which was part of Afilias before that company was acquired by Donuts, claims that ICANN broke its bylaws commitments to apply its policies equitably to everyone.

The company remains incredibly cheesed off that it lost the 2016 auction for .web, which saw a company called Nu Dot Co pay ICANN $135 million for the domain, at a time when it was secretly backed by Verisign.

Altanovo claims that NDC broke the terms of ICANN’s Applicant Guidebook and the rules of the auction by declining to disclose the existence of the Domain Acquisition Agreement it had signed with Verisign.

That deal saw Verisign bankroll and dictate the terms of NDC’s handling of the auction; in exchange, NDC would transfer .web to Verisign shortly after signing its ICANN registry agreement.

Altanovo has already won one IRP about this. The panel in the first case ruled in May 2021 that ICANN broke its bylaws because its board did not make a decision on whether NDC’s behavior was kosher.

As a result of that ruling, the board spent over a year mulling and eventually decided this April that, no, NDC didn’t break the rules. It’s that decision that Altanovo is challenging now. The complaint says:

NDC had no independent business plan for .WEB that it intended to implement. Its sole purpose in applying for .WEB was to obtain it for the oldest of the incumbent players, not to market .WEB itself in any way or to compete in the market… No one in the Internet Community, including the other .WEB Contention Set members, had any clue that, as of August 2015, they were competing with Verisign and not NDC.

ICANN’s response to the complaint states that its board was exercising its “business judgement”, which must be deferred to, and that Altanovo’s claims about bylaws breaches merely amount to differences of interpretation.

Speaking to analysts on Verisign’s third-quarter earnings call last week, company CEO Jim Bidzos quoted from the conclusion of ICANN’s IRP response and added: “Altanovo’s IRP request should be denied. We agree with ICANN.”

“We continue to believe that this IRP filed by Altanovo and its backers has been filed for the purpose of delay,” he said.

Altanovo reckons that Verisign and ICANN have been colluding on their legal responses to the .web and that certainly seems likely in terms of the redactions ICANN has made to the complaint and response published last week.

All quotations of the Verisign-NDC DAA are redacted in the Altanovo complaint are redacted as “third party confidential”, presumably at Verisign’s request; in the ICANN response the single DAA quote remains unredacted.

Comment Tagged: .web, altanovo, auctions, ICANN, irp, new gtld, verisign

Nominet takes over failed .desi

Nominet has been picked as the Emergency Back-End Registry Operator for failed gTLD .desi, the company confirmed today.

The gig means the .uk registry will be responsible for keeping .desi ticking over — handling DNS, EPP, Whois etc — while ICANN looks for a successor registry.

.desi was operated by mom-n-pop outfit Desi Networks of Maryland on a Team Internet back-end until it threw in the towel this July, having failed to sell more than a handful of domains.

The term “desi” refers to the cultures of the Indian subcontinent and its diaspora, giving an addressable market well over a billion people. But there were only 1,743 registered domains at the last count but the only active sites that show up in Google are porn.

It’s the second gTLD to go into special measures after .wed, which Nominet is also handling. ICANN has three accredited EBERO providers, the others being CNNIC of China and CIRA in Canada.

While .wed has only one active registrar and barely 30 registered domains, .desi has almost 300 registrars, about 70 of which have domains.

Comment Tagged: .desi, desi networks, ebero, nominet

Wright elected to Nominet board

Nominet members have selected Steve Wright to a non-executive directorship on the company’s board.

The .uk registry said today that his three-year term started at the company’s AGM yesterday.

Wright came very close to winning in the first round of voting, securing 723,027 votes. That was just shy of the threshold of 743,038 required to win. He picked up 79,264 in the second round to end up with a total of 802,291.

David Thornton was knocked out in the first round and Thomas Rickert was defeated in the second. Turnout was 13% of members.

Nominet members each have as many votes as they have .uk domains under management, capped to avoid capture by the largest registrars.

The election was somewhat controversial. Five candidates were initially nominated, but incumbent Phil Buckingham pulled out for mysterious reasons and regular Nominet antagonist Jim Davies was disqualified for missing a deadline on the screening process, which he denied doing.

Wright and Rickert debated during the London Domain Summit in August, and the consensus in the bar afterward was that you couldn’t really slide a cigarette paper between their platforms, which revolved around similar themes of transparency and communication.

Wright is a consultant and former owner of a hosting company.

This article was updated October 19 to correct Wright’s current job description.

Comment Tagged: .uk, election, nominet

Identity Digital keeps .org back-end deal

Public Interest Registry is to keep Identity Digital as its back-end registry services provider following a competitive RFP process, the organization announced today.

The deal’s highlight TLD is of course .org, with its 11 million domains, but it also includes the much smaller .charity, .foundation, .gives, .giving, .ngo, .ong, .орг, .संगठन , and .机构.

Identity Digital inherited the contract when it acquired Afilias a few years back. PIR announced the RFP back in March.

There’s no word on whether Identity Digital is taking a pay cut as a result of the competitive process, but it should become clear when non-profit PIR eventually publishes its tax returns.

Comment Tagged: .org, identity digital, pir

Freenom spanked for holding Olympics domain hostage

Freenom has been hit by its third ICANN contract-breach notice in under a month, this time because the organizers of the 2024 Paris Olympics could not transfer a domain out to another registrar.

The registrar, formally OpenTLD, failed to take off the ClientTransferProhibited status from the domain club2024.tickets, preventing the registrant from transferring it, ICANN claims.

Digging through my database and Whois records, it looks like the organizing committee of Paris 2024 used Freenom to defensively register 10 .tickets domain names related to its Le Club Paris 2024 marketing initiative in July 2020.

They were the only .tickets domains Freenon has ever sold.

When they came up for renewal last year, the Paris committee instead transferred nine of them out to local registrar Gandi, where they remain. The 10th domain was not transferred for some reason.

ICANN says Freenom is in violation of the Transfer Policy by failing to unlock the domain without a good reason. Additionally, the domain doesn’t show up in Whois queries on Freenom’s web site, despite still being in the zone file.

Compliance has given the registrar until November 7 to come back into compliance or risk losing its accreditation.

Freenom is already working under two active breach notices, which ICANN said it has not yet responded to. The deadline on the earlier, September 20 notice has already passed, so ICANN could escalate any day.

Comment Tagged: breach, compliance, freenom, ICANN, opentld

Belgian MP registers Hamas domain, redirects to IDF

A member of the Belgian parliament has reportedly registered hamas.be and redirected it to the Israeli Defense Forces’ web site.

Michael Freilich, the country’s only Jewish MP, bought the domain after seeing it was available and to keep it out of the hands of Hamas supporters, according to The Jerusalem Post.

He also reportedly caused the deletion of a payment processing account linked to Hamas.

His actions follow the massacre of Israelis and others by Hamas terrorists October 7, which kicked off a conflict that has already claimed thousands of lives on both sides.

1 Comment Tagged: .be, hamas, idf