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DotKids doesn’t want .kids auction to go ahead

Kevin Murphy, December 7, 2017, Domain Registries

One of the applicants for the .kids gTLD has asked ICANN to stop the planned last-resort auction.
DotKids Foundation is competing with Amazon for .kids and, because the two strings were ruled confusingly similar, with Google’s application for the singular .kid.
ICANN last month set a January 25 date for the three contenders to go to auction, having unfrozen DotKids’ application back in October.
DotKids’ bid had been put on hold due to it losing a Community Priority Evaluation — which found overwhelmingly that the organization did not represent a proper community — and its subsequent appeals of that ruling.
But the foundation now says that its application should be treated the same as .music, .gay, and a few others, which are currently on hold while ICANN waits for the results of a third-party review of the CPE process.
DotKids filed a Request for Reconsideration (pdf) with ICANN yesterday, immediately after being told that there were no plans to put the contention set back on hold.
Tomorrow is the deadline for the three applicants to submit their information to ICANN to participate in next month’s auction.
An ICANN last-resort auction sees the winning bid being placed in a fund for a yet-to-be-determined purpose, as opposed to private auctions where the losing bidders share the loot.

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Open Whois must die, Europe privacy chiefs tell ICANN

Kevin Murphy, December 7, 2017, Domain Policy

Unfettered public access to full Whois records is illegal and has to got to go, an influential European Union advisory body has told ICANN.
The Article 29 Working Party on Data Protection, WP29, wrote to ICANN yesterday to say that “that the original purposes of the WHOIS directories can be achieved via layered access” and that the current system “does not appear to meet the criteria” of EU law.
WP29 is made up of representatives of the data protection agencies in each EU member state. It’s named after Article 29 of the EU’s 1995 Data Protection Directive.
This directive is parent legislation of the incoming General Data Protection Regulation, which from May 2018 will see companies fined potentially millions of euros if they fail to protect the privacy of EU citizens’ data.
But WP29 said that there are questions about the legality of full public Whois under even the 1995 directive, claiming to have been warning ICANN about this since 2003:

WP29 wishes to stress that the unlimited publication of personal data of individual domain name holders raises serious concerns regarding the lawfulness of such practice under the current European Data Protection directive (95/46/EC), especially regarding the necessity to have a legitimate purpose and a legal ground for such processing.

Under the directive and GDPR, companies are not allowed to make consent to the publication of private data a precondition of a service, which is currently the case with domain registration, according to WP29.
Registrars cannot even claim the publication is contractually mandated, because registrants are not party to the Registrar Accreditation Agreement, the letter (pdf) says.
WP29 adds that law enforcement should still be able to get access to Whois data, but that a “layered” access control approach should be used to prevent full disclosure to anyone with a web browser.
ICANN recently put a freeze on its contract compliance activities surrounding Whois, asking registries and registrars to supply the organization with the framework and legal advice they’re using to become compliant with GDPR.
Registries and registrars are naturally impatient — after a GDPR-compatible workaround is agreed upon, they’ll still need to invest time and resources into actually implementing it.
But ICANN recently told contracted parties that it hopes to lay out a path forward before school breaks up for Christmas December 22.

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InternetNZ loses two of its three CEOs as it simplifies

Kevin Murphy, December 5, 2017, Domain Registries

InternetNZ has announced the results of a consultation into a restructuring of the organization.
The .nz ccTLD manager is to cut one of its three operating companies and reduce the number of CEOs from three to one.
NZRS, which actually runs the registry, will be folded into InternetNZ, while policy-setting body Domain Name Commission Ltd will remain a separate company in the same group.
Jordan Carter, CEO of the company since 2013, has been picked to carry on leading InternetNZ and to chair the board of DNCL, which is losing three of its 12 seats.
The company threw open the idea of a restructuring back in June, noting that it had 20 governors, three CEOs and 10 senior executives for the 35 full time employees across the three organisations
InternetNZ leadership said in a statement that they hope the changes will help the registry become more effective as it simplifies.

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Neustar ditches .biz for .neustar

Kevin Murphy, December 4, 2017, Domain Registries

Registry operator Neustar has migrated all of its web sites to its .neustar gTLD, abandoning its original home at .biz.
The company announced today that its main site can now be found at home.neustar. Its old neustar.biz already redirects to the dot-brand domain.
It’s also using domains such as marketing.neustar, security.neustar and risk.neustar to market its various services.
Neustar has been using its dot-brand extensively for years, adding at least 10 new sites this year, but today marks the formal blanket switch away from its old .biz branding.
The gTLD has over 600 names in its zone file, of which about 15 resolved to active .neustar web sites according to the last scan I did. There’s probably more today.
It must have been a bit of a Sophie’s Choice for the company.
Neustar has been using its own .biz ever since it went live with the gTLD over 15 years ago, a case of eating its own dog food when few others would, but it now clearly sees a tastier future in its dot-brand business.
The company acts as the back-end for almost 200 dot-brands already — about a third of those that went live from the 2012 gTLD application round — and seems to be laying the groundwork for a big push in the next round (expected at some point after 2020).
The rebrand should give Neustar some first-hand experience of the challenges current and future clients could face when switching to a dot-brand gTLD.

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Roberts elected to ICANN board

Kevin Murphy, December 4, 2017, Domain Policy

Channel Islands ccTLD operator Nigel Roberts has been elected to ICANN’s board of directors.
He gathered an impressive 67% of the votes in an anonymous poll of ccNSO members conducted last week.
He received 60 votes versus the 29 cast for his only opponent, Pierre Ouedraogo, an internet pioneer from Burkina Faso.
Roberts, a Brit, runs ChannelIsles.net, registry manager for .gg (for the islands Guernsey, Alderney and Sark) and .je (for Jersey). These are the independent UK dependencies found floating between England and France.
He’s been in the ICANN community since pretty much day one.
His election still has to be formally confirmed by the ccNSO Council and then the ICANN Empowered Community.
Roberts will not take his seat on the ICANN board until October next year, at the end of public meeting in Barcelona.
He will replace Mike Silber, the South African who’s currently serving his ninth and therefore final year as a director.
The other ccNSO seat is held by Australian ICANN vice chair Chris Disspain, who is also term-limited and will leave at the end of 2019.

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Brazil loses its only registrar as UOL bows out

Kevin Murphy, December 1, 2017, Domain Registrars

There are now no ICANN-accredited registrars in Brazil, following the termination of Universo Online’s contract this week.
I understand the agreement was ended at UOL’s request. It’s not a case of it breaching its contract.
UOL is a big deal in Brazil, getting beaten in the eyeballs stakes only by the likes of Google and Facebook, but as a registrar it wasn’t in the top 100 globally.
It had a little over 100,000 gTLD domains under management at the last count, with a peak over the last five years of roughly 200,000
I hear that these remaining domains will be transferred to Tucows’ accreditation.
Brazil has had at least four registrars, including UOL, over the years.
Countries roughly the same size as Brazil by population (over 200 million) include Nigeria and Pakistan, each of which still have one active registrar.
There are 10 contracted registries, managing nine 2012-round new gTLDs, in Brazil.

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Verisign wants to auction off O.com for charity

Kevin Murphy, December 1, 2017, Domain Registries

The internet could soon gets just its fourth active single-character .com domain name, after Verisign revealed plans to auction off o.com for charity.
The company has asked ICANN to allow it to release just one of the 23 remaining one-letter .com domains, which are currently reserved under the terms of the .com registry agreement.
It’s basically a proof of concept that would lead to this contractual restriction being lifted entirely.
O.com has been picked as the guinea pig, because of “long-standing interest” in the domain, according to Verisign.
Overstock.com, the $1.8 billion-a-year US retailer, is known to have huge interest in the name.
The company acquired o.co from .CO Internet for $350,000 during the ccTLD’s 2010 relaunch, then embarked upon a disastrous rebranding campaign that ended when the company estimated it was losing 61% of its type-in traffic to o.com.
Overstock has obsessed over its unobtainable prize for over a decade and would almost certainly be involved in any auction for the domain.
In fact, I wouldn’t be surprised to discover that Overstock pressured Verisign into requesting the release of o.com.
Despite the seven or eight figures that a single-letter .com domain could fetch, Verisign’s cut of the auction proceeds would be just $7.85, its base registry fee.
Regardless, it has a payment schedule in mind that would see the winning bidder continue to pay premium renewal fees for 25 years, eventually doubling the sale price.
The winner would pay their winning bid immediately and get a five-year registration, but then would have to pay 5% of that bid to renew the domain for years six through 25.
In other words, if the winning bid was $1 million, the annual renewal fee after the first five years would be $50,000 and the total amount paid would eventually be $2 million.
All of this money, apart from the auction provider’s cut, would go to a trust that would distribute the funds to internet-focused non-profit organizations, such as those promoting security or open protocols.
There’s also a clause that would seem to discourage domain investors from bidding. The only way to transfer the domain would be if the buyer was acquired entirely, though this could be presumably circumvented with the use of a shell company.
It’s an elaborate auction plan, befitting of the fact that one-character .com domains are super rare.
Only x.com, q.com and z.com are currently registered and it’s Verisign policy to reserve them in the unlikely event they should ever expire.
Billionaire entrepreneur Elon Musk this July reacquired x.com, the domain he used to launch PayPal in the 1990s, back from PayPal for an undisclosed sum.
Z.com was acquired by GMO Internet for $6.8 million in 2014.
Single-character domains are typically not reserved in the ICANN contracts of other gTLDs, whether pre- or post-2012, though it’s standard practice for the registry to reserve them for auction anyway.
Verisign’s reservations in .com and .net are a legacy of IANA policy, pre-ICANN and have been generally considered technically unnecessary for some years.
Still, there’s been a reluctance to simply hand Verisign, already a money-printing machine through accident of history, another windfall of potentially hundreds of millions of dollars by allowing it to sell off the names for profit. Hence the elaborate plan with the O.com trust fund.
The proposal to release O.com requires a contractual amendment, so Verisign has filed a Registry Services Evaluation Process request (pdf) with ICANN that is now open for public comment.
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.

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ICANN urged to crack down on new gTLD abuse

Kevin Murphy, November 29, 2017, Domain Registries

Registries selling dirt-cheap new gTLD domains should be rewarded with lower ICANN fees when they get proactive about abuse, while registrars that turn a blind eye to spammers should be suspended, an ICANN working group will recommend.
In its second batch of findings, the Competition, Consumer Trust, and Consumer Choice Review Team (CCT) said that financial incentives and a new complaints procedure should be used to persuade registries and registrars to fight DNS abuse.
The CCT said it “proposes the development of incentives to reward best practices preventing technical DNS abuse and strengthening the consequences for culpable or complacent conduits of technical DNS abuse” in a paper published today.
The review, which drew on multiple sources of market and abuse data, original research, and analysis of third-party research, is probably the most comprehensive study into the impact of the new gTLD program to date.
It concluded that overall rates of DNS abuse did not increase as a result of the program, but that bad actors are increasingly migrating away from legacy gTLDs such as .com to 2012-round TLDs such as .top, .gdn and Famous Four Media’s stable.
Indeed, much of the paper appears to be a veiled critique of FFM’s practices.
The registrar AlpNames, known to be affiliated with FFM and responsible for most of its retail sales, is singled out as the currently accredited registrar particularly favored by abusers.
The CCT report notes that AlpNames regularly sells domains for under $1, or gives them away for free, and offered a tool allowing registrants to randomly generate up to 2,000 available domains in 27 different gTLDs, pretty much inviting abuse.
“Certain registries and registrars appear to either positively encourage or at the very least willfully ignore DNS abuse. Such behavior needs to be identified rapidly and action
must be taken by ICANN compliance as deemed necessary,” the paper says.
The review found that gTLDs with no registration restrictions and the lowest prices had the most abuse. Duh.
“Generally, the DNS Abuse Study indicates that the introduction of new gTLDs did not increase the total amount of abuse for all gTLDs,” its report says. “[F]actors such as registration restrictions, price, and registrar-specific practices seem more likely to affect abuse rates.”
Drawing on data provided by 11 domain block-lists (SURBL, SpamHaus, etc), the paper states that at least one TLD (FFM’s .science) had an abuse rate excess of 50%.
Using SpamHaus data, the paper identities FFM’s .science, .stream, .trade, .review, .download and .accountant as having over 10% abuse during the period of its study. Also on that list: Uniregistry’s low-price .click and the China-based .top and .gdn.
One thing they all have in common is that AlpNames is a leading registrar, usually accounting for at least a quarter of domains under management.
There’s no way AlpNames/FFM is not aware of the amount of bad actors in its customer base, the question is what can ICANN do about it?
The CCT team recommends that registries and registrars with over 10% of their names used for abusive purposes should be tasked by ICANN with proactively cleaning up their zones. Those that fail to do so should be subject to a new Domain Abuse Dispute Resolution Process, it said.
These companies should have their contracts suspended when they’re “associated with unabated, abnormal and extremely high rates of technical abuse”, the report recommends.
There’s a big boilerplate specifying, tellingly, that registry operators that control registrars are affected by this recommendation too.
It should be noted that there was not a full consensus of support for the idea of a DADRP. Half a dozen working group members filed minority statements opposing it.
It’s not all stick in the report, however. There’s some carrot, too.
The CCT report recommends financial incentives such as fee reductions for registries that have “proactive anti-abuse measures” in place.
It noted that there is precedent for ICANN doing this kind of thing when it implemented an anti-tasting policy that seriously restricted registrars’ ability to get registry refunds.
The CCT Review Team was formed to figure out what impacts the 2012 new gTLD round had on the domain name market.
The completion of its work is one of several gating factors to the next new gTLD application round under ICANN’s new bylaws and the old Affirmation of Commitments with the US government.
It published initial recommendations earlier this year. This new set of recommendations is now open for public comment until January 8.

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China and cheapo TLDs drag down industry growth — CENTR

Kevin Murphy, November 27, 2017, Domain Registries

The growth of the worldwide domain industry continued to slow in the third quarter, according to data out today from CENTR.
There were 311.1 million registered domains across over 1,500 TLDs at the end of September, according to the report, 0.7% year-over-year growth.
CENTRThe new gTLD segment, which experienced a 7.2% decline to 20.6 million names, was the biggest drag.
But that decline is largely due to just two high-volume, low-price gTLDs — .xyz and .top — which lost millions of names that had been registered for pennies apiece.
Excluding these TLDs, year-over-year growth for the whole industry would have been 2.5%, CENTR said. The report states:

Over the past 2 years, quarterly growth rates have been decreasing since peaks in early 2016. The slowdown is the result of deletes after a period of increased investment from Chinese registrants. Other explanations to the slowdown are specific TLDs, such as .xyz and .top, which have contracted significantly.

The legacy gTLDs inched up by 0.2%, largely driven by almost two million net new names in .com. In fact, only five of the 17 legacy gTLDs experienced any growth at all, CENTR said.
In the world of European ccTLDs, the average (median) growth rate has been flat, but CENTR says it sees signs of a turnaround.
CENTR is the Council of European National Top-Level Domain Registries. Its Q3 report can be downloaded here (pdf).

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Domain blogger O’Meara elected to auDA board

Kevin Murphy, November 27, 2017, Domain Registries

Domainer-blogger Ned O’Meara, one of the fiercest critics of auDA, has been elected to the organization’s board of directors.
He was one of four directors elected at the Australian ccTLD registry’s Annual General Meeting today.
auDA splits its board into “demand” and “supply” classes. The former are registrants, the latter registrars and resellers.
O’Meara, a domain investor who blogs at Domainer.com.au, was elected as a demand class director, along with Nicole Murdoch, a trademark lawyer who O’Meara backed when he was prevaricating about his own run.
On the supply side, members elected Canadian-born chair of the Australian Web Industry Association and founder of 1300 Web Pro, James Deck, and Grant Wiltshire.
Wiltshire, who works for the government of the Australian state of Victoria, has been a demand-class director for the last two years. There’s no indication in his candidate statement where in the domain industry he has worked.
The election came a week after auDA named its new chair and a new independent director.
Chris Leptos is the new chair. He replaces Stuart Benjamin, who was forced out earlier this year after a “Grumpy” campaign led by O’Meara.
Leptos is deputy chair of financial advisory firm Flagstaff Partners and sits on the board of PPB Advisory. That’s the company that conducted an audit of auDA following the departure of its former CEO last year.
O’Meara landing on the board means he will of course become privy to all the information he’e been campaigning for auDA to be more transparent about recently. How this will affect his blogging remains to be seen, he has yet to write a post about his election.

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