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Pilot program for Whois killer launches

Kevin Murphy, September 7, 2017, Domain Tech

ICANN is to oversee a set of pilot programs for RDAP, the protocol expected to eventually replace Whois.
Registration Data Access Protocol, an IETF standard since 2015, fills the same function as Whois, but it is more structured and enables access control rules.
ICANN said this week that it has launched the pilot in response to a request last month from the Registries Stakeholder Group and Registrars Stakeholder Group. It said on its web site:

The goal of this pilot program is to develop a baseline profile (or profiles) to guide implementation, establish an implementation target date, and develop a plan for the implementation of a production RDAP service.

Participation will be voluntary by registries and registrars. It appears that ICANN is merely coordinating the program, which will see registrars and registrars offer their own individual pilots.
So far, no registries or registrars have notified ICANN of their own pilots, but the program is just a few days old.
It is expected that the pilots will allow registrars and registries to experiment with different types of profiles (how the data is presented) and extensions before ICANN settles on a standard, contractually enforced format.
Under RDAP, ICANN/IANA acts as a “bootstrapping” service, maintaining a list of RDAP servers and making it easier to discover which entity is authoritative for which domain name.
RDAP is basically Whois, but it’s based on HTTP/S and JSON, making it easier to for software to parse and easier to compare records between TLDs and registrars.
It also allows non-Latin scripts to be more easily used, allowing internationalized registration data.
Perhaps most controversially, it is also expected to allow differentiated access control.
This means in future, depending on what policies the ICANN community puts in place, millions of current Whois users could find themselves with access to fewer data elements than they do today.
The ICANN pilot will run until July 31, 2018.

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Hammock swings from Rightside to MarkMonitor

Kevin Murphy, September 5, 2017, Domain Registrars

Statton Hammock has joined brand protection registrar MarkMonitor as its new vice president of global policy and industry development.
He was most recently VP of business and legal affairs at Rightside, the portfolio gTLD registry that got acquired by Donuts in July. He spent four years there.
The new gig sounds like a broad brief. In a press release, MarkMonitor said Hammock will oversee “the development and execution of MarkMonitor’s global policy, thought leadership, business development and awareness strategy”.
MarkMonitor nowadays is a business of Clarivate Analytics under president Chris Veator, who started at the company in July.

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Registry bosses to talk ICANN “tax cuts” at private meeting

Kevin Murphy, September 5, 2017, Domain Registries

The CEOs of 20 or more gTLD registries are due to meet privately this month to discuss, among other things, the possibility of a reduction in their ICANN fees.
The Registry CEO Summit is being held in Seattle at the end of September, I’m told.
Jay Westerdal of Top Level Spectrum (.feedback etc) and Ray King of Top Level Design (.design etc) are organizing the event.
“It’s a small, informal gathering, where the agenda will be set by the participants, most likely around best practices for running a new registry,” Westerdal said.
“It’s not an official group like the RySG, and we don’t expect to be putting out any statements or ‘work product’,” he said.
He said he expects 20 to 25 registry CEOs to attend.
.CLUB Domains CEO Colin Campbell, who said he will attend, said he intends to bring proposals to the meeting around persuading ICANN to support the industry with marketing support and fee reductions.
Campbell wants ICANN to commit to spend $4 million on marketing new gTLDs at trade shows and conferences.
He also wants ICANN to reduce its $0.25 per-domain registry fee, which he referred to as a “tax”, to $0.18 for three years (which would match the $0.18 registrars pay ICANN per transaction).
He said the money would ideally flow through into the pockets of registrants, rather than the industry.
“I’m not suggesting that it be permanent, I’m suggesting that in order to support the fledgling new gTLD industry that they offer a small reduction and hope registries will pass that on to registrars and hopefully registrars will pass that on to consumers,” Campbell said.
The reduction would also help raise awareness of new gTLDs, he said.
The $0.25 fee only kicks in when a registry tops 50,000 billable transactions per year, so the reduction would at first only affect the roughly 50 to 60 new gTLDs that are already over that milestone.
The $0.07 per-domain reduction is so small that even a registry as large as .club, with about a million domains, would only see its fees reduced by about $70,000 per year.
Over all the affected TLDs, it would come out to a cost to ICANN of about $1.2 million per year if current volumes hold.
“It’s a very small amount but I still believe the benefit goes to end users,” Campbell said.
For registrants, it’s difficult to imagine $0.07 making a huge difference, unless they’re a high-volume buyer (which are not always the buyers you want). Generally, the cheaper domains get the more they attract abusive registrants.
Whether the ideas will get any traction among other registry CEOs remains to be seen, but it’s not the first idea for reduced ICANN fees to come out of the registry community recently.
In March, the RySG formally asked ICANN to tap into its war chest of excess new gTLD application fees to waive 75% of its fixed $25,000 annual per-TLD fee, a move that would affect all new gTLDs rather than just the larger ones.
The rebate would have cost ICANN $17 million.
But ICANN knocked that idea back last week, saying it still does not know how much of this $96 million cash pile it will have to spend on unexpected events stemming from the program.

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Another auDA director quit in secret

Kevin Murphy, September 5, 2017, Domain Registries

Australian ccTLD registry auDA, in the midst of a transparency controversy, reportedly lost another of its directors last month.
According to a report in Australia’s Financial Review newspaper, Leonie Walsh stepped down August 14.
The paper cited Australian Securities and Investments Commission documents as its source.
Embattled auDA did not disclose her departure at the time, despite the fact that it did disclose that fellow director Michaella Richards had also quit the same week.
Richards had been accused by some auDA members, noting her previous professional relationship with CEO Cameron Boardman, of lacking experience in the domain industry.
No reason for Walsh’s departure has been given.
The two directors left just a couple of weeks after chairman Stuart Benjamin, who was facing a member vote of no-confidence he did not think he could win, quit.
auDA has come under criticism from members, such as those organized at Grumpy.com.au, for several policy shifts that seemed to make the organization more secretive and less responsive to members’ interests.
The organization has since done U-turns on most of controversial policies.

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.CLUB nears profitability, talks renewals and “trial” domains

Kevin Murphy, September 4, 2017, Domain Registries

.CLUB Domains is nearing profitability and poised to become a “growth engine”, despite the view that most of its current domains are not expected to renew, according to its CEO.
Colin Campbell told DI today that the company made $6.7 million in revenue last year, and is “very close” to breaking even.
The company reached one million domains under management milestone in June, but Campbell freely admits that the majority of its current domains are unlikely to renew.
Almost 700,000 of these domains are what .CLUB considers “trial accounts”, he said. These are domains that typically sold for under a dollar — .club has been seen for sale as low as $0.88 — to speculators.
The registry usually sees a 10% to 15% renewal rate on these domains, he said.
Of the remaining 300,000 “solid, regular registrations”, Campbell said he sees first-year renewals in the 68% to 70% range and subsequent years at 80% to 90%.
The company typically only discounts on its first-year registrations, so renewal rates are a much better indicator of performance.
He said .club has around 120,000 web sites (not including parked domains), some of which are showcased on its web site.
With this in mind, renewals are at the forefront of Campbell’s mind. He said a key performance indicator .CLUB uses is “average cost of acquisition per renewed domain”, which the company tracks on a per-registrar basis.
The company invested $3.3 million in marketing in 2016, he said. That does not include rebates to registrars participating in volume programs, but it does take into account acquiring prominent shelf space on key registrars, he said.
“We’re very close to break-even and we’re still going to be able to invest multi-million dollars in ad campaigns and marketing,” he said.
“We’re going to have a company that’s breaking even and is still going to be a growth engine,” he said. “We’re going to be able to sustain a path of growth. I don’t know too many TLDs who could say that. Of course, if you reduce your expenses down to nothing you can make a profit, but can you also be a growth engine?”
“That’s where I feel like a TLD needs to get to, to be a sustainable long-term presence in the market, like a .org or .net or .co,” he said.
Despite the narrowing losses and starkly higher volumes, the $6.7 million in 2016 revenue is a lower than the $7 million in 2015 revenue Campbell told Domain Name Wire about a year ago.
Campbell said today that the reason for the dip is that late 2015 saw many gTLDs (old and new, even including .com) benefit from a bump from the Chinese market. .CLUB’s top line was particularly exposed by some premium sales it made to Chinese investors during that growth spike.
Premium sales have also been performing well in 2017, Campbell said, driven by the financing options and broker program introduced in January.
.CLUB announced first-quarter premium sales totaling $505,000 and $2.5 million in Q2.

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Deutsch and Doria to join ICANN board

Kevin Murphy, September 4, 2017, Domain Policy

Veteran ICANN community members Avri Doria and Sarah Deutsch are to join ICANN’s board of directors in November.
Both have been selected by ICANN’s Nominating Committee to serve three-year terms starting at the end of the public meeting in Abu Dhabi, which wraps up November 3.
They replace current chair Steve Crocker, who is leaving after his maximum three terms on the board, and Asha Hemrajani, who is leaving after one term. Both take seats reserved for North Americans.
Doria, an independent consultant, is a 12-year member of the community and tireless working group volunteer, most closely associated with the Non-Commercial Users Constituency. Her clients include Public Interest Registry.
Deutsch is an intellectual property attorney perhaps best known as a 23-year employee of Verizon. She currently works at Mayer Brown in Washington DC.
Both new directors have been knocking about ICANN for ages in various leadership positions.
This contrasts with previous years, in which NomCom has gone outside of the community for board expertise.
NomCom also selected new members of the ccNSO, GNSO and ALAC, listed here.

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Afnic appoints Pierre Bonis new CEO

Kevin Murphy, September 1, 2017, Domain Registries

French ccTLD registry Afnic has named Pierre Bonis its new CEO.
Bonis officially started his new job today, but he’s been in the role on an interim basis since May 1, when he replaced Mathieu Weill.
Weill had abruptly quit after 12 years at Afnic in order to join the Digital Economy Department of the French government’s Directorate-General for Enterprise.
Bonis was Weill’s deputy for five years, so being kicked up the ladder by the Afnic board of trustees was perhaps not unexpected.

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After slow launch, .africa looks to add hundreds of resellers

Kevin Murphy, September 1, 2017, Domain Registrars

ZA Central Registry is opening up .africa and its South African city gTLDs to potentially hundreds of new registrars via a new proxy program.
The company today announced that its new registrar AF Proxy Services has received ICANN accreditation, which should open up .africa, .joburg, .capetown and .durban to its existing .za channel.
ZACR is the ccTLD registry for South Africa and as such it already has almost 500 partners accredited to sell .za names. But most of these resellers are not also ICANN accredited, so they cannot sell gTLD domains.
The AF Proxy service is intended to give these existing resellers the ability to sell ZACR’s four gTLDs without having to seek out an ICANN accreditation themselves.
“Effectively, all users of the AF Proxy service become resellers of the Proxy Registrar which is an elegant technical solution aimed at boosting new gTLD domain name registrations,” ZACR CEO Lucky Masilela said in a press release.
While reseller networks are of course a staple of the industry and registries acting as retail registrars is fairly common nowadays, this new ZACR business model is unusual.
According to ZACR’s web site, it has 489 accredited .za registrars active today, with 52 more in testing and a whopping 792 more in the application process.
Depending on uptake of the proxy service, that could bring the number of potential .africa resellers to over 1,300.
And they’re probably needed.
The .africa gTLD went into general availability in July — after five years of expensive legal and quasi-legal challenges from rival applicant DotConnectAfrica — but has so far managed to put just 8,600 names in its zone file.
That’s no doubt disappointing for TLD serving a population of 1.2 billion and which had been expected to see substantial domain investor activity from overseas, particularly China.

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No $17 million rebate for struggling new gTLDs

Kevin Murphy, August 31, 2017, Domain Registries

ICANN has turned down a request for about $17 million to be refunded to under-performing new gTLD registries.
The organization cannot spare the cash from its $96 million new gTLD program war chest because it does not yet know how much it will need to spend in future, Global Domains Division president Akram Atallah told registries this week.
The Registries Stakeholder Group made the request for fee relief back in March, arguing that the $25,000 per-TLD fixed annual fee each registry must pay amounts to an unfair “burden” that has “hampered their success and put them at a competitive disadvantage”.
The RySG proposed that this $6,250 per quarter fee should be reduced by $4,687.50 per quarter for a year, a 75% reduction, at a cost to ICANN of $16.87 million.
The money, they said, should be drawn from the $96.1 million in new gTLD application fees that were still unspent at the time.
The new gTLD program charged each applicant $185,000 per application. About third of the fee was to cover unforeseen events, and is often sniggeringly referred to as its legal defense fund.
Because the program was meant to work only on a cost-recovery basis, there are question marks hanging over what ICANN should ultimately do with whatever cash is left over.
(It should be noted that this cash is separate from and does not include the quarter-billion dollars ICANN has squirreled away from its new gTLD last-resort auctions).
Now that the vast majority of the 2012 round’s 1,930 applications have been fully processed, it must have seemed like a good time for the RySG to ask for some cashback, but ICANN has declined.
Atallah said in a August 29 letter (pdf) to the group that ICANN has had to spent lots of its program reserve on unanticipated projects such as name collisions, universal acceptance, the EBERO program and the Trademark Clearinghouse. He wrote:

We do not yet know how much of the New gTLD Program remaining funds will be required to address future unanticipated expenses, and by when. As such, at this time, ICANN is not in a position to commit to the dispensation of any potential remaining funds from the New gTLD Program applications fees.

It seems for now the hundreds of new gTLDs with far fewer than 10,000 registrations in their zones are going to keep having to fork over $25,000 a year for the privilege.

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MMX: three gTLDs approved for sale in Beijing

Kevin Murphy, August 31, 2017, Domain Registries

Three foreign new gTLDs have been approved for sale and resolution in Chinese capital Beijing, according to MMX.
The portfolio registry said today that its .vip is among the first to receive approval from the Beijing Communications Administration, one of China’s many regional authorities.
According to MMX, while many gTLDs have managed to pass through the Ministry of Industry and Information Technology’s stringent vetting process, the Beijing local authority has so far been slow to follow the national regulator’s lead.
But BCA approved .vip, along with GMO’s .shop and Donuts’ .ltd on August 16, the registry said in a market update.
This gives .vip national coverage in China, adding Beijing’s 22 million inhabitants.
MMX added that 188,764 different .vip sites, of the over 600,000 in its zone file, are currently indexed by Chinese search engine Baidu.
It also said that it plans to start selling Chinese-script internationalized domain names in .vip (in IDN.ascii format) in November.

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