After ICANN nod, MMX buys .xxx

MMX has closed the acquisition of porn-focused ICM Registry, after receiving the all-clear from ICANN for the contract transfers.
The deal is worth roughly $41 million — $10 million cash and about $31 million in stock.
ICM runs .xxx from the 2003 gTLD application round (though it didn’t go live until 2011) and .porn, .adult and .sex from the 2012 round.
MMX, which now has 29 fully-owned TLDs and another five in partnerships, will now become roughly a quarter-owned by former ICM employees and its back-end provider, Afilias.
ICM president Stuart Lawley now owns 15% of MMX and is its largest shareholder.
CEO Toby Hall said in a statement to the markets that he has “identified a number areas of potential growth and synergy”.
The company noted that the deal increases the share of its revenue coming from the US and Europe, implicitly highlighting the reduction of its exposure to the volatile Chinese market, where .vip has been its biggest money-spinner to date.
ICM had something like 152,000 .xxx domains under management at the last count, but over 80,000 of those are reservations. It has about 92,000 names in its zone file currently.
The three 2012-round names are faring less well, with about 8,000 to 10,000 names apiece in their zones.
Somebody once jokingly told me that ICM stood for “Internet Cash Machine”, due to the perception that porn-focused names would sell like, well, porn. Just thought I’d mention that.

Comment Tagged: .adult, .sex, acquisition, ICANN, Minds + Machines, mmx, new gTLDs, porn, xxx

Donuts buys back .fan, ignores plural .fans

Donuts has purchased the unlaunched new gTLD .fan from its struggling owner, just three years after selling it.
The company said today that .fan will become its 241st TLD in its portfolio, having inked a deal with Asiamix Digital.
Asiamix also runs the plural .fans, which Donuts has not acquired.
A Donuts spokesperson said the singular variant was the only acquisition considered, but did not say why.
The gTLD has a colorful ownership history, given that it has not even launched yet.
It was originally owned by Donuts, which won it unopposed in the 2012 application round.
The company then transferred it to then-independent Rightside under a deal the two companies had covering about 100 applications.
Rightside then in 2015 briskly sold the contract to Asiamix, which already had the rights to the plural .fans and presumably wanted to reduce market confusion.
For whatever reason, Asiamix sat on .fan and never even announced launch plans.
Rightside was then acquired by Donuts last year.
Donuts’ spokesperson declined to disclose whether the latest re-acquisition was for the same, more, or less than the original 2015 transaction.
Asiamix is currently very likely facing the death of its business, having failed to make a go of .fans.
The plural has never had more than about 1,500 names in its zone file.
Donuts plans to launch .fan in short order, with general availability expected in mid-September. We should be looking at a sunrise period fairly soon.

1 Comment Tagged: .fan, .fans, asiamix, donuts, rightside

Domainers could lose their names as .au loophole closes

Domain investors dabbling in the .au space could face losing their names under new policies set to be proposed.
The .au Policy Review Panel, which helps set policy for Australian ccTLD registry auDA, said this week it is thinking about closing a loophole related to domain monetization that has allowed “speculation and warehousing” in violation of longstanding rules.
Monetized domains are “largely detrimental” to .au and rules permitting the practice should be scrapped, the panel is expected to formally conclude.
Anyone currently monetizing domains could be given as little as a day to comply with the new rules or face losing their names.
The expected recommendations were outlined in a memo (pdf) penned by panel chair John Swinson, an intellectual property lawyer, who wrote:

the Panel received a lot of feedback and information from the public that Domain Monetisation is largely detrimental to the name space. Feedback, including from sophisticated businesses, domain brokers and portfolio owners, was one could register almost any domain name under the Domain Monetisation rule, and that the current rules were unclear, and that domain names were being registered under the cover of Monetisation primarily for the purposes of resale or warehousing (which is contrary to the current policy).

Current auDA policy on domaining, dating from 2012, is pretty clear when it comes to domainers: “A registrant may not register a domain name for the sole purpose of resale or transfer to another entity.”
However, there’s a loophole when it comes to domains that are monetized with ad links. If a domain is monetized, reselling no longer becomes its “sole purpose”.
Another auDA policy also from 2012 specifically permits monetization as a valid reason for owning a .com.au or .net.au name.
It says that monetized domains must carry ad content relevant to the topic of the domain, and that there should be no brand infringement in the domain itself.
Swinson’s panel agreed in a May 1 meeting (pdf) that this rule should be scrapped.
It’s not entirely clear what would come to replace it, as the panel doesn’t seem likely to actually ban monetization as such. Swinson wrote:

Because the current rules are outdated, inconsistent and unclear, it is difficult to enforce the current rules that prevent the registration of domain names for domain speculation and warehousing.
The Panel’ s current view is that Domain Monetisation will not be banned, but of itself will not be a basis to meet the allocation criteria.

The “allocation criteria” refers to the eligibility requirements for .au domains, which currently require a “close and substantial” link between the registrant and the name.
The panel’s memo states that there would be a “grandfathering” period during which domainers whose sites do not comply with the new policy would have time to update them:

The Panel’s current view is to recommend that any new eligibility and allocation rules should apply on the next renewal of a domain name license. This will give domain name licensees who meet the current rules, but who will not meet any new rules, time to deal with the non-compliance.

The problem here of course is that the “next renewal” could be anywhere from a day to two years away, depending on the domain. That’s probably an area the panel needs to look at.
The monetization issue is one of several addressed in the panel’s interim report (pdf), which also looks at the possibility of direct, second-level domain registration.
Any new policy on either issue is still many months away.

4 Comments Tagged: .au, auda, direct, monetization, policy review panel

In GDPR case, ICANN ready to fight Tucows to the bitter end

ICANN has appealed its recent court defeat as it attempts to force a Tucows subsidiary to carry on collecting full Whois data from customers.
The org said yesterday that it is taking its lawsuit against Germany-based EPAG to a higher court and has asked it to bounce the case up to the European Court of Justice, as the first test case of the new General Data Protection Regulation.
In its appeal, an English translation (pdf) of which has been published, ICANN argues that the Higher Regional Court of Cologne must provide an interpretation of GDPR in order to rule on its request for an injunction.
And if it does, ICANN says, then it is obliged by the GDPR itself to refer that question to the ECJ, Europe’s highest judicial authority.
The case concerns Tucows’ refusal to carry on collecting contact information about the administrative and technical contacts for each domain name it sells, which it is contractually obliged to do under ICANN’s Whois policy.
These are the Admin-C and Tech-C fields that complement the registrant’s own contact information, which Tucows is of course still collecting.
Tucows says that these extra fields are unnecessary, and that GDPR demands it minimize the amount of data it collects to only that which it strictly needs to execute the registration contact.
It also argues that, if the Admin-C and Tech-C are third parties, it has no business collecting any data on them at all.
According to Tucows legal filings, more than half of its 10 million domains have identical data for all three contacts, and in more than three quarters of cases the registrant and Admin-C are identical.
In its appeal, ICANN argues that the data is “crucial for the objectives of a secure domain name system, including but not limited to the legitimate purposes of consumer protection,
investigation of cybercrime, DNS abuse and intellectual property protection and law enforcement needs”.
ICANN uses Tucows’ own numbers against it, pointing out that if Tucow has 7.5 million domains with shared registrant and Admin-C data, it therefore has 2.5 million domains where the Admin-C is a different person or entity, proving the utility of these records.
It says that registrars must continue to collect the disputed data, at the very least if it has secured consent from the third parties named.
ICANN says that nothing in the Whois policy requires personal data to be collected on “natural persons” — Admin-C and Tech-C could quite easily be legal persons — therefore there is no direct clash with GDPR, which only covers natural persons.
Its appeal, in translation, reads: “the GDPR is irrelevant if no data about natural persons are collected. In this respect, the Defendant is contractually obliged to collect such data, and failure to do so violates its contract with the Applicant.”
It goes on to argue that even if the registrant chooses to provide natural-person data, that’s still perfectly fine as a “legitimate purpose” under GDPR.
ICANN was handed a blow last month after a Bonn-based court refused to give it an injunction obliging EPAG (and, by inference, all registrars) to continue collecting Admin-C and Tech-C.
The lower court had said that registrants would be able to continue to voluntarily provide Admin-C and Tech-C, but ICANN’s appeal points out that this is not true as EPAG is no longer requesting or collecting this data.
In ICANN’s estimation, the lower court declined to comment on the GDPR implications of its decision.
It says the appeals court, referred to in translation as the “Senate”, cannot avoid interpreting GDPR if it has any hope of ruling on the injunction request.
Given the lack of GDPR case law — the regulation has only been in effect for a few weeks — ICANN reckons the German court is obliged by GDPR itself to kick the can up to the ECJ.
It says: “If the Senate is therefore convinced that the outcome of this procedure depends on the interpretation of certain provisions of the GDPR, the Senate must refer these possible questions to the ECJ for a preliminary ruling”.
It adds that should a referral happen it should happen under the ECJ’s “expedited” procedures.
An ECJ ruling has been in ICANN’s sights for some time; late last year CEO Goran Marby was pointing out that a decision from the EU’s top court would probably be the only way full legal clarity on GDPR’s intersection with Whois could be obtained.
It should be pointed out of course that this case is limited to the data collection issue.
The far, far trickier issue of when this data should be released to people who believe they have a legitimate purpose to see it — think: trademark guys — isn’t even up for discussion in the courts.
It will be, of course. Give it time.
All of ICANN’s legal filings, in the original German and unofficial translation, can be found here.

1 Comment Tagged: appeal, ecj, epag, gdpr, ICANN, lawsuit, privacy, tucows, whois

Three-letter .net leads as NamesCon charity auction raises €4,150 for Kenyan school

A domain auction at NamesCon Europe raised €4,150 for charity today.
A total of 22 domains were sold, each of which had been donated by a conference attendee.
The top sale was bbe.net, which went for €650, followed by xvs.net, which fetched €500.
The three-letter jjh.org went for €150, which some said was a bargain.
Also selling were smartphone.global and caring.global for €450 and €400 respectively.
The auction was organized by Shaun Wilkinson, COO of domain broker Nidoma, who wants to raise a total of €6,500 during NamesCon for the Hope Children’s Centre, which is trying to finish building a secondary school in Kenya.
Anyone wishing to help the charity reach its target can donate online here.

Comment Tagged: auction, hope childrens centre, namescon, namescon europe, nidoma

Atallah encourages domainers to get involved in ICANN

ICANN Global Domains Division chief Akram Atallah today encouraged domain investors to participate more in the ICANN community.
“Domain investors’ voices need to be heard in ICANN,” he said during brief remarks opening NamesCon Europe here in Valencia this morning.
“Your voices are as important as everyone else’s and should be heard,” he said.
He noted to the largely European crowd here that ICANN has a public meeting coming up in Barcelona toward the end of the year.
The call came within the context of comments that focused almost exclusively on GDPR and Whois.
Atallah said that the absence of Whois would make it difficult to track down bad guys and harder for the average person to ensure that the information they get online comes from a reputable source.
“Not everything on the internet is true,” he said, to an faux-incredulous “WHAT?!?” from a member of the audience. “You need to know who is behind this information.”
He said that ICANN hopes to keep Whois as transparent as possible, and played up the fact that most community members are now in agreement that a tiered access system seems like the best way forward, which he called a “major shift from 12 months ago, when the community could not agree on anything”.
He added that now that the Article 29 Working Party has been replaced by the European Data Protection Board, it could help ICANN figure out how to proceed on GDPR compliance efforts.
“I think we’ll get more clarity,” he said.
Disclosure: I’m at NamesCon on my own dime, but with a complementary complemintary complimentary press pass.

2 Comments Tagged: european data protection board, ICANN, namescon, namescon europe, privacy, whois

US asks if it should take back control over ICANN

The US government has asked the public whether it should reverse its 2016 action to relinquish oversight of the domain name system root.
“Should the IANA Stewardship Transition be unwound? If yes, why and how? If not, why not?”
That’s the surprisingly direct question posed, among many others, in a notice of inquiry (pdf) issued yesterday by the National Telecommunications and Information Administration.
The inquiry “is seeking comments and recommendations from all interested stakeholders on its international internet policy priorities for 2018 and beyond”. The deadline for comments is July 2.
The IANA transition, which happened in September 2016, saw the NTIA remove itself from the minor part it played, alongside meatier roles for ICANN and Verisign, in the old triumvirate of DNS root overseers.
At the handover, ICANN baked many of its previous promises to the US government into its bylaws instead, and handed oversight of itself over to the so-called Empowered Community, made up of internet stakeholders of all stripes.
The fact that the question is being asked at all would have been surprising not too long ago, but new NTIA chief David Redl and Secretary of Commerce Wilbur Ross expressed their willingness to look into a reversal as recently as January.
Back then Redl told Congresspeople, in response to questions raised primarily by Senator Ted Cruz during his confirmation process:

I am not aware of any specific proposals to reverse the IANA transition, but I am interested in exploring ways to achieve this goal. To that end, if I am confirmed I will recommend to Secretary Ross that we begin the process by convening a panel of experts to investigate options for unwinding the transition.

Cruz had objected to the transition largely based on his stated (albeit mistaken or disingenuous) belief that it gave China, Iran and a plethora of bad guys control over Americans’ freedom of speech, something that has manifestly failed to materialize.
But in the meantime another big issue has arisen — GDPR, the EU’s General Data Protection Regulation — which is in the process of eroding access rights to Whois data, beloved of US law enforcement and intellectual property interests.
NTIA is known to be strongly in favor of retaining access to this data to the greatest extent possible.
The notice of inquiry does not mention Whois or GDPR directly but it does ask several arguably related questions:

A. What are the challenges to the free flow of information online?
B. Which foreign laws and policies restrict the free flow of information online? What is the impact on U.S. companies and users in general?
C. Have courts in other countries issued internet-related judgments that apply national laws to the global internet? What have been the practical effects on U.S. companies of such judgements? What have the effects been on users?

NTIA’s statement announcing the inquiry prominently says that the agency is “working on” items such as “protecting the availability of WHOIS information”.
It also says it “has been a strong advocate for the multistakeholder approach to Internet governance and policy development”.
While GPDR and Whois are plainly high-priority concerns for NTIA, it’s beyond my ken how reversing the IANA transition would help at all.
GDPR is not ICANN policy, after all. It’s a European Union law that applies to all companies doing business in Europe.
Even if the US were to fully nationalize ICANN tomorrow and rewrite Whois policy to mandate the death penalty for any contracted party that refused to openly publish full Whois records, that would not make GDPR go away, it would probably just kick off a privacy trade war or mean that all US contracted parties would have to stop doing business in Europe.
That sounds like an extreme scenario, but Trump.
The NTIA’s inquiry closes July 2, so if you think the transition was a terrible idea or a wonderful idea, this is where to comment.

3 Comments Tagged: gdpr, iana transition, ICANN, notice of inquiry, ntia, privacy, whois

Christians rail against GoDaddy’s six-color gay rights flag

GoDaddy changed its social media avatars to a gay rights flag yesterday, incurring the wrath of some self-declared Christians and US right-wingers.

The change was made in recognition of LGBT Pride Month, in which every June gay rights groups hold marches and generally celebrate/call for equal rights for lesbian, gay, bisexual and transgender people.
The most egregious thing about the change is surely that there’s a color missing. For some reason, the world’s largest registrar has decided that rainbows look better with only six colors.
But many customers took to Facebook to decry the change on religious or political grounds.
Here’s a sample of some of the comments on the logo.

Now finding another service !!! I don’t support this crap !! I serve s higher power and I am as a Christian warrior to turn my back on this !!!

Don’t you start making a hard left turn to GoDaddy, are you gonna choose the coastal liberals over the other half of the country? Stay out of politics and picking sides. Your not above Boycott like every other Mega Company that chooses a Globalist agenda…

Keep your sexual or political opinion out of your business or I’ll leave your business son! Weather I agree or disagree Im not doing business with you for you to push your views upon me! Just sell me websites and hosting and keep your mouth shut, thanks!

Not doing business there anymore

To be fair, compared to the size of GoDaddy’s customer base, the number of outraged commenters was vanishingly small. I don’t think anyone at GoDaddy is shaking in their boots over the possible loss of a few hard-core right-wing customers.
But those saying it’s a political statement may have a point.
It might be interesting to note that on GoDaddy’s Facebook page for the UK, where equal rights are far less controversial and barely considered a mainstream political issue, the company has not changed its logo.
There were also lots of comments in favor of the change, of course.

Always been a huge fan of godaddy. Your customer service and products are superior. Now I’m even more of a fan. Thanks for taking a powerful stand, even amidst these trolls. I can’t even believe the hate spewing from them. #teamGoDaddy

Comment section, its not getting political or “imposing views” on others to support & respect gays as human beings. They’re not talking about gun rights or abortion or whatever, its LGBT, thats not a belief, or a view. So if you’re gonna seriously stop using the website over human decency & compassion during pride month, thats on you if ya wanna be a whining mope

The amount of offended people in these comments is killing me 😂 much love, GoDaddy. Happy pride. To all the high- strung offended snowflakes: you and your kind have enjoyed thousands of years without LGBT visibility. One site changes their profile pic and your anger burns for nothing. Suck it.

And there were plenty of ambivalent comments.

I am ok with supporting LGBT rights. I am not ok with my slow as hell server that I paid extra for it to be fast, but I paid up front for 3 years so whatever I guess I am hanging out awhile.

While I generally tend to steer away from stories about bogus, whipped-up, social media controversies (this is maybe the third time DI has posted such an article) I find it interesting as it reflects GoDaddy’s perception shift as a company.
A large reason GoDaddy got into the leading position it is today is due to its unabashedly breast-based advertising and sponsorship of sports only Republicans understand.
Less than a decade ago, it was more common for the company to attract controversy when founding CEO Bob Parsons did something dumb like brag about shooting an elephant.
Now it’s taking flak for making a half-assed nod towards gay rights? How times change.
Disclosure: it’s not lost of me that throughout this article I’ve used the word “gay” interchangeably with “LGBT”.

Comment Tagged: .gay, godaddy, pride

Can’t get enough GDPR? Come to my NamesCon panel

NamesCon Europe is being held in Valencia, Spain, this week, the first time the NamesCon branding has been applied to the old Domaining Europe show.
Starting Thursday, it’s a two-day conference — or three if you count the social events planned for Saturday — with a varied agenda focused on domain investors.
The keynote will be given by Akram Atallah, president of ICANN’s Global Domains Division, on a so-far unspecified topic.
There will be about 20 sessions in total, organized in a single track and covering topics such as valuation, monetization, drop-catching, web development and legal issues facing domainers.
Expect speakers from the likes of Donuts, Sedo, the new gTLDs .club and .global, and a bunch of companies I’ve never heard of (a fact I hope to rectify).
Staff from NamesCon owner GoDaddy also have a decent presence among the speakers.
Domaining Europe was sold to NamesCon earlier this year and there’s going to be a short “handover ceremony” at the end of the show, followed by a performance by a band whose lineup feature the conference’s new CEO.
I’ll be hosting a panel comprising Blacknight CEO Michele Neylon and German lawyer Thomas Rickert on the General Data Protection Regulation on Thursday just before lunch.
If you no longer wish me to tell you this, please click here. But if, as a domainer, you feel there are important GDPR issues that should be discussed at the session, feel free to leave a comment below or shoot me an email.
As usual with shows like this, a big part of the value is in the networking, and there’s plenty of opportunities for socializing scheduled, including a “Disco Party!” slated to end at 5am.
NamesCon Europe tickets are still available, priced now at €786.50 ($922).
Disclosure: I’m paying my own way to the show but have a complimentary press pass.

2 Comments Tagged: gdpr, godaddy, namescon, namescon europe

Court denies ICANN’s GDPR injunction against Tucows

A German court has refused ICANN’s request for a GDPR-related injunction against Tucows’ local subsidiary EPAG, throwing a key prong of ICANN’s new Whois policy into chaos.
EPAG now appears to be free to stop collecting contact information for each domain’s administrative and technical contacts — the standard Admin-C and Tech-C fields.
The ruling may even leave the door open for registrars to delete this data from their existing Whois databases, a huge blow to ICANN’s Whois compliance strategy.
According to an ICANN-provided English translation of the ruling (pdf), the Bonn judges (whose names are redacted — another win for GDPR?) decided that the Admin-C and Tech-C records are unnecessary, because they can be (and usually are) the same person as the registrant.
The judges said that if the additional contact names were needed, it would have historically been a condition of registration that three separate people’s data was required.
They wrote that this “is proof that any data beyond the domain holder — different from him — was not previously necessary”.
“Against the background of the principle of data minimization, the Chamber is unable to see why further data sets are needed in addition to the main person responsible,” they wrote.
Data minimization is a core principle of GDPR, the General Data Protection Regulation, which came into force in the EU less than a week ago. Tucows and ICANN have different interpretations on how it should be implemented.
The judges said that the registrant’s contact information should be sufficient for any criminal or security-related investigations, which had been one of ICANN’s key claims.
They also said that ICANN’s attempt to compare Whois to public trademark databases was irrelevant, as no international treaties govern Whois.
If the ruling stands, it means registries and registrar in at least Germany could no longer have to collect Admin-C and Tech-C contacts.
Tucows had also planned to delete this data for its existing EPAG registrations, but had put its plan on hold ahead of the judge’s ruling.
The ruling also gives added weight to the part of ICANN’s registry and registrar agreements that require contracted parties to abide by local laws.
That’s at the expense of the new Temporary Policy governing Whois introduced two weeks ago, which still requires Admin-C and Tech-C data collection.
There was no word in ICANN’s statement on the ruling last night as to the possibility of appealing.
But the org seized on the fact that the ruling does not directly state that EPAG would be breaching GDPR rules by collecting the data. General counsel John Jeffrey is quoted as saying:

While ICANN appreciates the prompt attention the Court paid to this matter, the Court’s ruling today did not provide the clarity that ICANN was seeking when it initiated the injunction proceedings. ICANN is continuing to pursue the ongoing discussions with the European Commission, and WP29 [the Article 29 Working Party], to gain further clarification of the GDPR as it relates to the integrity of WHOIS services.

Tucows has yet to issue a statement on the decision.
It may not be the last time ICANN resorts to the courts in order to seek clarity on matters related to GDPR and its new Temporary Policy.

5 Comments Tagged: epag, gdpr, ICANN, injunction, lawsuit, privacy, tucows, whois