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RightSide cuts super-premium fees in half, drops premium renewals

Kevin Murphy, January 11, 2017, Domain Registries

New gTLD registry RightSide has slashed the minimum price of its so-called “Platinum” tier premium domains and dropped renewal fees for these domains down to an affordable level.
The price changes come as part of two new marketing initiatives designed to start shifting more of its 14,000-strong portfolio of super-premiums through brokers and registrar partners.
The minimum first-year price of a Platinum-tier name has been reduced immediately from $50,000 to $25,000.
In addition, these domains will no longer renew every year at the same price. Instead, RightSide has reduced renewals to a more affordable $30.
“We weren’t selling them,” RightSide senior VP of sales and premiums Matt Overman told DI. “There is not a market for $50,000-a-year domain purchases.”
Now, “we feel comfortable enough with amount money we’re going to make up-front”, Overman said.
However, premium renewals are not being abandoned entirely; non-Platinum premium names will still have their original higher annual renewal fees, he said.
RightSide has sold some Platinum names in the five and six-figure range, but the number is quite small compared to overall size of the portfolio.
But Overman said that “none of them sold with a $50,000 renewal”. The highest renewal fee negotiated to date was $5,000, he said.
Before yesterday’s announcements, RightSide’s Platinum names were available on third-party registrars with buy-it-now fees that automatically applied the premium renewal fees.
However, it seems that the vast majority if not all of these sales came via the company’s in-house registrars such as Name.com and eNom, where there was a more flexible “make an offer” button.
Under a new Platinum Edge product, RightSide hopes to bring this functionality to its registrar partners.
It has made all 14,000 affected names registry-reserved as a result, Overman said. They were previously available in the general pool of unclaimed names and available to registrars via EPP.
Each affected name now has a minimum “access fee” of $25,000 (going up to $200,000 depending on name) that registrars must pay to release it.
They’re able to either negotiate a sale with a markup they can keep, or sell at “cost” (that is, the access fee) and claim a 10% commission, Overman said.
A separate Platinum Brokerage service has also been introduced, aimed at getting more professional domain brokers involved in the sales channel.
Brokers will be able to “reserve” up to five RightSide Platinum names for a broker-exclusivity period of 60 days, during which they’re expected to try to negotiate deals with potential buyers.
While no other brokers will be able to sell those names during those 60 days, registrars will still be able to sell those reserved names.
Overman said that if a registrar sells a name during the period it is under exclusivity with a participating broker, that broker will still get a commission from RightSide regardless of whether they were involved in the sale.
“We won’t give that name to any other broker, but if it sells through a registrar they still get their 10%,” he said. The registrar also gets its 10%.
This of course is open to gaming — brokers could reserve names and just twiddle their thumbs for 60 days, hoping to get a commission for no work — but the broker program is expected to be fairly tightly managed and those exploiting the system could be kicked out.
RightSide will be making the case for the two Platinum-branded offerings at the upcoming NamesCon conference in Las Vegas, where it also expects to name its first brokerage partners.

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ICANN retires Affirmation of Commitments with US gov

Kevin Murphy, January 9, 2017, Domain Policy

ICANN has terminated its last formal oversight link with the US government.
Late last week, ICANN chair Steve Crocker and Larry Strickling, assistant secretary at the US National Telecommunications and Information Administration mutually agreed to retire the seven-year-old Affirmation of Commitments.
The AoC, negotiated during the tail end of Paul Twomey’s leadership of ICANN and signed by successor Rod Beckstrom, laid out ICANN’s responsibilities to the US government and, to a lesser extent, vice versa.
It included, for example, ICANN’s commitments to openness and transparency, its promise to remain headquartered in California, and its agreement to ongoing reviews of the impact of its actions.
Ongoing projects such as the Competition and Consumer Trust Review originate in the AoC.
The rationale for concluding the deal now is that most of significant provisions of the AoC have been grandfathered into ICANN’s revised bylaws and other foundational documents following the IANA transition, which concluded in October.
Reviews such as the CCT and the lock on its California HQ are now in the bylaws and elsewhere, ICANN said in a blog post.
It’s worth mentioning that the US gets a new administration led by Donald Trump in a little over a week, so it probably made sense to get the AoC out of the way now, lest the new president do something insane with it.
The letters from Crocker and Strickling terminating the deal can be read together here (pdf).

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Termination on the .orientexpress

Kevin Murphy, January 6, 2017, Domain Registries

The dot-brand .orientexpress has derailed. That’s a train pun, expect more.
The gTLD operator has become the latest to signal (like a railway signal) to ICANN that it no longer wishes to run its dot-brand, this week asking for a contract cancellation (like a train cancellation).
Despite having left the station (like a train station) in February 2015, it only ever registered its mandatory nic.orientexpress domain, and that doesn’t even resolve any more, according to DI PRO tracking (like a train track).
While the Orient Express brand is familiar to many due to the famous Agatha Christie murder mystery novel, it’s been applied to multiple train companies and journeys over the years.
The gTLD was originally applied for, unopposed, in 2012 by Orient-Express Hotels. However, that company renamed itself to Belmond in 2014.
Belmond still runs a luxury train route bearing the Orient Express name, but apparently its devotion to the brand has run out of steam (like a steam train) and its gTLD was no longer just the ticket (like a train ticket).
It’s the 20th dot-brand to change its mind about owning a gTLD after its ICANN Registry Agreement was already signed.
According to DI PRO stats, almost 100 dot-brands are actively using their domains currently, so it’s not as if the concept has been a complete train wreck (like a train train wreck).

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NCC sells Open Registry at huge discount

Kevin Murphy, January 6, 2017, Domain Registries

NCC Group has followed through on its promise to divest parts of its domain business, selling the Open Registry collection of companies at a huge discount to the original purchase price.
KeyDrive and a mysterious entity called Terrain.com SA have together acquired the companies for €3.75 million ($3.97 million).
That’s compared to the minimum of £7.9 million ($12 million) NCC originally paid just two years ago.
NCC said in a statement that the sold companies are:

  • Open Registry SA, a registry back-end provider with a handful of new gTLD clients.
  • ClearingHouse for Intellectual Property SA, aka CHIP, which provides software and billing support for the Trademark Clearinghouse.
  • Nexperteam CVBA, a tiny registrar.
  • Sensirius CVBA, the original Open Registry company, a new gTLD consultancy.

Missing from that list is Artemis, the new gTLD registry for .trust, which NCC separately acquired from Deutsche Post for an undisclosed sum in February 2014.
NCC is also keeping hold of its data escrow business, which is widely used by gTLD registries to comply with ICANN rules.
It’s not clear how the sold companies are being divided up between the two buyers.
KeyDrive is the Luxembourg-based holding company for the registrars Key-Systems and Moniker and other domain firms.
Terrain.com appears to belong to EuroDNS chair Xavier Buck, who was chair of Open Registry until NCC bought it, but the domain itself doesn’t seem to resolve right now.
NCC said that €2 million will be paid up front and €1.75 million will be deferred for 18 months.

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ICA worried ICANN will force URS on .net

Kevin Murphy, January 5, 2017, Domain Registries

The Internet Commerce Association has called for a “moratorium” on the Uniform Rapid Suspension policy being added to legacy gTLD contracts, months before Verisign’s .net contract is up for renewal.
In a blog post, ICA counsel Phil Corwin accused ICANN staff of making policy by the back door by compelling pre-2012 registries to adopt URS, despite a lack of ICANN community consensus policy.
In the last few years the registries for .jobs, .travel, .cat, .pro, .xxx and most recently .mobi have agreed to adopt many aspects of the 2012 Registry Agreement, which includes the URS, often in exchange for lower ICANN fees.
Corwin wrote:

the real test of [ICANN’s Global Domains Division’s] illicit strategy of incremental de facto policymaking will come later this year, when the .Net RA comes up for renewal. We have no idea whether Verisign will be seeking any substantial revisions to that RA that would provide GDD staff with substantial leverage to impose URS, nor do we know whether Verisign would be amenable to that tradeoff.

The .net RA is due to expire July 1 this year.
Verisign pays ICANN $0.75 for each .net domain registration, renewal and transfer. If that were to be reduced to the 2012 standard of $0.25, it would save Verisign at least $7.5 million a year.
The URS provides brand owners with a way to suspend trademark-infringing domains in clear-cut cases. It’s based on UDRP but is faster and cheaper and does not allow the brand owner to seize ownership of the domains.
ICA represents large domain speculators, most of which have their investments tied up in .com and .net domains. It’s complained about the addition of URS to other gTLDs but the complaints have largely fallen on deaf ears.
ICANN has said that it does not force URS on anyone, but that it takes the base new gTLD program RA as its starting point for bilateral negotiations with registries whose contracts are up for renewal.

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ICANN’s top DC lobbyist gets consumer safeguards role

Kevin Murphy, January 5, 2017, Domain Policy

ICANN has named veteran staffer Jamie Hedlund as its new senior VP for contractual compliance and consumer safeguards.
It’s a new executive team role, created by the departure of chief contract compliance officer Allen Grogan. Grogan announced his intention to leave ICANN last May, and has been working there part-time since August.
The “consumer safeguards” part of the job description is new.
ICANN first said it planned to hire such a person in late 2014, but the position was never filled, despite frequent poking by anti-spam activists.
Now it appears that the two roles — compliance and consumer safeguards — have been combined.
This makes sense, give that ICANN has no power to safeguard consumers other than the enforcement of its contracts with registries and registrars.
From the outside, it does not immediately strike me as an obvious move for Hedlund.
While his job title has changed regularly during his six or so years at ICANN, he’s mainly known as the organization’s only in-house Washington DC government lobbyist.
He played a key role in the recent IANA transition, which saw the US government sever its formal oversight ties with ICANN.
His bio shows no obvious experience in consumer protection roles.
His replacement in the government relations role is arguably just as surprising — Duncan Burns, a veteran PR man who will keep his current job title of senior VP of global communications.
The appointments seem to indicate that lobbying the US government is not as critical to ICANN in the post-transition world, and that institutional experience in the rarefied world of ICANN is a key qualifier for senior positions.

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ICANN terminates penis pill pimp registrar

Kevin Murphy, January 5, 2017, Domain Registrars

ICANN is to terminate the contract of a Chinese registrar linked to dodgy pharmaceuticals web sites and other malfeasance.
Nanjing Imperiosus Technology Co, which does business as DomainersChoice.com, has been told it will lose its registrar accreditation February 3.
ICANN said in the termination notice that the company had failed to keep records related to abuse reports, failed to validate Whois records, and failed to provide ICANN with registration records, all in breach of the Registrar Accreditation Agreement.
The breaches related to complaints filed by illegal pharmacy watchdog LegitScript last September, I believe.
DomainersChoice and its CEO Stefan Hansmann were listed in Whois as the owners of potentially hundreds of domains that were being used to sell medicines for conditions ranging from heart disease to erectile dysfunction.
The domains 5mg-cialis20mg.com, acheterdutadalafil.com, viagra-100mgbestprice.net and 100mgviagralowestprice.net were among those apparently owned by the registrar.
According to LegitScript, thousands of DomainersChoice domains were “rogue internet pharmacies”.
The registrar has also been linked by security researchers to mass typosquatting campaigns.
The company’s web site even has a typo generator. While one could argue such tools are also useful to brand owners, DomainersChoice’s name suggests it’s geared towards domainers, not brands.
DomainersChoice had about 27,000 domains under management at the last count, which ICANN will now migrate to another registrar.
It’s not known how many of those were self-registered domains and how many were being used nefariously, but LegitScript CEO John Horton estimated (pdf) at least 2,300 dodgy pharma sites used the registrar.

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GMO and Radix secure Chinese gTLD approval

Kevin Murphy, January 3, 2017, Domain Registries

GMO Registry and Radix have won Chinese government approval for their respective new gTLDs .shop and .site.
It’s the second batch of foreign new gTLDs to get the nod from China’s Ministry of Industry and Information Technology, following .vip, .club and .xyz in early December.
They’re also the first two Asian registries from outside China to get the right to flog their domains in China — GMO is Japanese and Radix is UAE-based with Indian roots.
Their new Chinese government licenses mean Chinese registrars will now be able to allow their customers to actually use .shop and .site domains to host web sites.
The registries in turn have had to agree to enforce China’s rather arbitrary and Draconian censorship policies on their Chinese customers.
The approvals were announced by MIIT December 29.
.site currently has about 570,000 domains in its zone file, making it a top-10 new gTLD by volume, while .shop, which launched much more recently, has over 100,000.
The ability for Chinese customers to develop their domains is no doubt good for the long-term health of TLDs, but it’s not necessarily a harbinger of shorter-term growth in a market where domains are often treated little more than meaningless baseball cards to be traded rather than commodities with intrinsic value.

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Security experts say ICANN should address collisions before approving more new TLDs

Kevin Murphy, January 2, 2017, Domain Tech

ICANN’s Security and Stability Advisory Committee has told ICANN it needs to do more to address the problem of name collisions before it approves any more new gTLDs.
In its latest advisory (pdf), published just before Christmas, SSAC says ICANN is not doing enough to coordinate with other technical bodies that are asserting authority over “special use” TlDs.
The SAC090 paper appears to be an attempt to get ICANN to further formalize its relationship with the Internet Engineering Task Force as it pertains to reserved TLDs:

The SSAC recommends that the ICANN Board of Directors take appropriate steps to establish definitive and unambiguous criteria for determining whether or not a syntactically valid domain name label could be a top-level domain name in the global DNS.

Pursuant to its finding that lack of adequate coordination among the activities of different groups contributes to domain namespace instability, the SSAC recommends that the ICANN Board of Directors establish effective means of collaboration on these issues with relevant groups outside of ICANN, including the IETF.

The paper speaks to at least two ongoing debates.
First, should ICANN approve .home and .corp?
These two would-be gTLDs were applied for by multiple parties in 2012 but have been on hold since August 2013 following an independent report into name collisions.
Names collisions are generally cases in which ICANN delegates a TLD to the public DNS that is already broadly used on private networks. This clash can result in the leakage of private data.
.home and .corp are by a considerable margin the two strings most likely to be affected by this problem, with .mail also seeing substantial volume.
But in recent months .home and .corp applicants have started to put pressure on ICANN to resolve the issue and release their applications from limbo.
The second incident the SSAC paper speaks to is the reservation in 2015 of .onion
If you’re using a browser on the privacy-enhancing Tor network, .onion domains appear to you to work exactly the same as domains in any other gTLDs, but under the hood they don’t use the public ICANN-overseen DNS.
The IETF gave .onion status as a “Special Use Domain“, in order to prevent future collisions, which caused ICANN to give it the same restricted status as .example, .localhost and .test.
But there was quite a lot of hand-wringing within the IETF before this status was granted, with some worrying that the organization was stepping on ICANN’s authority.
The SSAC paper appears to be designed at least partially to encourage ICANN to figure out how much it should take its lead from the IETF in this respect. It asks:

The IETF is an example of a group outside of ICANN that maintains a list of “special use” names. What should ICANN’s response be to groups outside of ICANN that assert standing for their list of special names?

For members of the new gTLD industry, the SSAC paper may be of particular importance because it raises the possibility of delays to subsequent rounds of the program if ICANN does not spell out more formally how it handles special use TLDs.
“The SSAC recommends that ICANN complete this work before making any decision to add new TLD names to the global DNS,” it says.

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.africa could go live after court refuses injunction

Kevin Murphy, January 2, 2017, Domain Policy

DotConnectAfrica’s attempt to have ICANN legally blocked from delegating the .africa gTLD to rival applicant ZACR has been denied.
The ruling by a Los Angeles court, following a December 22 hearing, means ICANN could put .africa in the root, under ZACR’s control, even before the case comes to trial.
A court document (pdf) states:

The plaintiff is seeking to enjoin defendant Internet Corporation for Assigned Names and Numbers (ICANN) from issuing the .Africa generic top level domain (gTLD) until this case has been resolved…
The plaintiff’s motion for the imposition of a Preliminary Injunction is denied, based on the reasoning expressed in the oral and written arguments of defense counsel.

ICANN was just days away from delegating .africa last April when it was hit by a shock preliminary injunction by a California judge who later admitted he hadn’t fully understood the case.
My understanding is that the latest ruling means ICANN may no longer be subject to that injunction, but ICANN was off for the Christmas holidays last week and unable to comment.
“Sanity prevails and dotAfrica is now one (big) step closer to becoming a reality!” ZACR executive director Neil Dundas wrote on Facebook. He declined to comment further.
Even if ICANN no longer has its hands tied legally, it may decide to wait until the trial is over before delegating .africa anyway.
But its lawyers had argued that there was no need for an injunction, saying that .africa could be re-delegated to DCA should ICANN lose at trial.
DCA case centers on its claims that ICANN treated it unfairly, breaking the terms of the Applicant Guidebook, by awarding .africa to ZACR.
ZACR has support from African governments, as required by the Guidebook, whereas DCA does not.
But DCA argues that a long-since revoked support letter from the African Union should still count, based on the well-known principle of jurisprudence the playground “no take-backs”.
The parties are due to return to court January 23 to agree upon dates for the trial.

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