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Web.com just gave itself another reason to bid high for .web gTLD

Kevin Murphy, November 9, 2015, Domain Registrars

Registrar group Web.com is changing its stock market ticker symbol to WEB tomorrow, in another sign that it really, really wants to be identified with the string.
The switch from WWWW may indicate that the NASDAQ-listed company’s six rivals for the new gTLD .web have a fight — and a possible big payday — on their hands when .web finally goes to auction.
Web.com is competing with Nu Dot Co, Radix, Google, Donuts, Afilias and Schlund for the gTLD.
The company has already fiercely defended its “right” to .web, filing successful String Confusion Objections against .webs applicant Vistaprint.
Vistaprint subsequently filed an ICANN Independent Review Process complaint to appeal its SCO loss.
Last month, the IRP was won by ICANN, but the panel left the door open for ICANN to reconsider its decision.
The .web auction is not likely to go ahead until the Vistaprint issue is resolved.
If ICANN decides the two strings can be delegated separately, what I think is the last barrier to the .web auction going ahead disappears.
If not, then Vistaprint finds itself as the seventh contender in the auction, which may give it the impetus to carry on challenging the ruling.
ICANN’s board plans to discuss the issue at its next meeting, December 10.
Which way it leans will give an indication of how long it will be before .web goes to auction.

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Most US presidential hopefuls use Whois privacy despite begging for cash

Kevin Murphy, November 9, 2015, Domain Policy

More than half of the remaining US presidential candidates could have risked losing their official campaign web sites under proposed Whois privacy rules.
Today I carried out Whois queries on all 18 candidates to discover that 10, or over 55%, use a Whois privacy service.
Of the three remaining Democrat candidates, only Bernie Sanders uses privacy. Martin O’Malley and Hillary Clinton do not.
Here’s a table of the Republican candidates and their chosen privacy services. N/A means their campaigns are using what appears to be genuine contact information.
[table id=38 /]
The results are interesting because rules under discussion at ICANN earlier this year — which are apparently still on the table in other international fora — would have banned the use of privacy services for commercial web sites that allow financial transactions.
All 18 candidates — even Trump — solicit donations on their campaign sites, and many sell T-shirts, bumper stickers and such.
Back in May, a minority of ICANN’s Privacy & Proxy Services Accreditation Issues Working Group (PPSAI) were in favor of banning privacy for such registrants.
The rationale was that criminals, such as those selling counterfeit drugs, should not be allowed to mask their Whois details.
Judging by a working group report at the ICANN meeting in Dublin last month, the proposed new rules have been killed off by the PPSAI after a deluge of comments — around 22,000 — that were solicited by registrars and civil rights groups.
However, according to the Electronic Frontier Foundation, at the exact same time as the PPSAI was revealing its change of heart, the US government was pushing for virtually identical policy at a meeting of the OECD, the Organization for Economic Cooperation and Development.
The EFF says the proposed OECD Recommendation “would require domain name registration information to be made publicly available for websites that are promoting or engaged in commercial transactions with consumers.”
It’s remarkable that the US government is apparently pushing for rules that are being violated by most of its own hopeful commanders-in-chief as part of the democratic process.
Clearly, fake pharmacies are not the only class of crook to find value in privacy.

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NamesCon hotel “scam” doing the rounds

Kevin Murphy, November 9, 2015, Domain Services

A company with a track record of misleading conference attendees into booking hotels with higher fees appears to be targeting NamesCon.
This morning I received a phone call from somebody claiming to be from NamesCon, but he pronounced it “Name Escon”.
I asked him what company he worked for, and he continued to insist he worked for “Name Escon”.
So I indulged him for a while, and it turned out he was trying to book me into a Las Vegas hotel for the duration of the January 10-13 trade show.
He offered me a rate at the Tropicana of $99 per night, including breakfast. That’s actually not a bad rate — about $20 less than what Expedia is currently asking.
I kept him on the phone until he sent an email to an address he had on file for me (the one from DI’s About page, which I don’t use to sign up for anything).
It arrived immediately, from Exhibitors Housing Services (ehshousing.com), which appears to be a Los Angeles company, with a link to housing-portal.com.
The link led to a credit card authorization form, pre-tailored to my details and the rate offered, which included some terms and conditions I didn’t like the look of.
A simple web search revealed that the company is widely believed to be Bad News.
The same outfit appears to regularly target annual conferences using the exhibitor lists published on earlier conference web sites. Contact information appears to be taken from the exhibitor’s own site.
According to the likes of Affiliate Summit and The Physiological Society, and the Society of Trust and Estate Practitioners and the Agricultural & Applied Economics Association these guys may charge up-front processing fees and/or have a very unfavorable cancellation policy.
In fact, just Googling for “Exhibitors Housing Services” will return pretty much nothing but scam warnings from various conference organizers.
One chap even posted a YouTube video explaining what he thinks the scam is.
I’m pretty certain the company has nothing to do with NamesCon.

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ICANN opens blog to comments, immediately trolled

Kevin Murphy, November 9, 2015, Domain Policy

Welcome to my world, ICANN.
The organization on Friday opened its blog to commenters for the first time in years, allowing any registered user of the ICANN site to submit comments on its posts.
The switch appears to be retroactive on all previous posts on the platform.
The post announcing the move was immediately commented on by habitual, single-issue commenter Graham Schreiber, a name familiar to anyone who regularly reads the comments sections of industry blogs.
He’s the guy who unsuccessfully sued ICANN — for some reason — back in 2012 and has continued his tirade against the organization in social media ever since.
Trolling aside, it’s a good move by ICANN, something it should have done a long time ago.
While ICANN obviously accepts comments on pretty much everything it does, the usual format of emailed PDFs perhaps lacks some of the brevity, openness and immediacy of a two-way blog.

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European privacy ruling could add to registrars’ costs

Kevin Murphy, November 6, 2015, Domain Registrars

European domain registrars say they are facing increased costs of doing business due to a recent court ruling on privacy protection.
As a result, US data escrow giant Iron Mountain is likely to lose a lot of its ICANN business, as EU registrars defect to local alternatives such as UK-based NCC Group.
The ruling in question deals with the so-called “safe harbor” principles, under which European companies were able to transfer customers’ private data to US companies as long as the recipient promised to abide by EU privacy protection rules.
However, former spy Edward Snowden’s revelations of widespread privacy violations by the US government seemed to show that many US tech giants were complicit in handing over such data to US spooks.
And now the European Court of Justice has ruled the safe habor principles invalid.
This affects registrars because, under their ICANN contracts, they have to escrow registrant data on a weekly basis. That’s to prevent registrants losing their domains when registrars go out of business or turn out to be crooks.
While registrars have a choice of escrow agents, pretty much all of them use Iron Mountain, because ICANN subsidizes the service down to $0.
However, with the ECJ ruling, Euro-registrars have told ICANN that it would now be “illegal” to continue to use Iron Mountain.
In a recent letter (pdf) to ICANN, about 20 EU-based registrars said that non-European registrars would get a competitive advantage unless ICANN does something about it.
They want ICANN to start subsidizing one or more EU-based escrow agents, enabling them to switch without adding to costs.

the service fees of those [alternative] providers are not being supported by ICANN. Thus, the only solution for EU based registrars to comply with their local laws is to support this extra cost.
We are sure, you will agree this clearly constitutes an unfair disadvantage to a given category of a registrars.
This is why we ask ICANN to offer the same terms as it currently does to Iron Mountain to other RDE [Registrar Data Escrow] providers established in the European Economical Area to ensure a level playing field for registrars globally.

According to the registrars, they have until January to switch, so ICANN may have to move quickly to avoid unrest.

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XYZ says it won’t block censored Chinese domains

Kevin Murphy, November 6, 2015, Domain Registries

New gTLD registry XYZ.com has said it will not preemptively censor domain names based on the wishes of the Chinese government.
Over the last couple of days, CEO Daniel Negari has sought to “clarify” its plans to block and suspend domain names based on Chinese government requests.
It follows XYZ’s Registry Services Evaluation Request for a gateway service in the country, first reported by DI and subsequently picked up by the Electronic Frontier Foundation, a Wall Street Journal columnist, Fortune magazine and others.
The clarifications offered up by XYZ probably did more to confuse matters.
A blog post on Wednesday said that XYZ will not reserve any .xyz domain names from being registered, except those ICANN makes all new gTLD registries reserve.
Subsequent comments from Negari stated that XYZ will, as the RSEP stated, prevent names that have been banned in China from being registered.
However, there’s one significant difference.
Now, the registry is saying that it will only put those bans in place for domain names that have been specifically banned by the Chinese government when the name had already been registered by a Chinese registrant.
So, if I understand correctly, it would not preemptively ban anyone anywhere from registering [banned term].xyz.
However, if [banned term].xyz was registered to a Chinese resident and the Chinese government told the registry to suspend it, it would be suspended and nobody would be able to re-register it anywhere in the world.
Negari said in a blog comment yesterday:

if we receive a Chinese legal order tomorrow (before the gateway has launched) which requires disabling a domain name registered in China and properly under Chinese jurisdiction, then it will be disabled at the registry level, and not by the gateway. When the gateway launches the name will continue to be unavailable, and the gateway will not implement the action on a localized basis only in China. The normal registry system would continue to be the only system used to resolve the name globally. Again — the specific stability concern ICANN had was that we would use the Chinese gateway to make .xyz names resolve differently, depending on what country you are in. I completely agree that our [RSEP] re-draft to address that concern came out in a way that can be read in a way that we sincerely did not intend.

So there is a list of preemptively banned .xyz, .college, .rent, .security and .protection domains, compiled by XYZ from individual Chinese government requests targeting names registered to Chinese registrants.
Negari said in an email to DI yesterday:

To clarify the statement “XYZ will reserve domains,” we meant that XYZ will takedown domains in order to comply with “applicable law.” Unfortunately, the inaccuracies in your post caused people to believe that we were allowing the Chinese government to control what names could be registered or how they could be used by people outside of China. The idea that XYZ is going to impose Chinese law and prevent people outside of China from registering certain domain names is simply incorrect and not true. To be 100% clear, there is no “banned list.”

That was the first time anyone connected with XYZ had complained about the October 12 post, other than since-deleted tweets that corrected the size of the list from 40,000 domains to 12,000.
The RSEP (pdf) that causes all this kerfuffle has not been amended. It still says:

XYZ will reserve names prohibited for registration by the Chinese government at the registry level internationally, so the Gateway itself will not need to be used to block the registration of of any names. Therefore, a registrant in China will be able to register the same domain names as anyone else in the world.

This fairly unambiguous statement is what XYZ says was “misinterpreted” by DI (and everyone else who read it).
However, it’s not just a couple of sentences taken out of context. The context also suggests preemptive banning of domains.
The very next sentence states:

When the Gateway is initially implemented we will not run into a problem whereby a Chinese registrant has already registered a name prohibited for registration by the Chinese government because Chinese registrars are already enforcing a prohibition on the registration of names that are in violation of Chinese law.

This states that Chinese residents are already being preemptively banned, by Chinese registrars, from registering domains deemed illegal in China.
The next few paragraphs of the RSEP deal with post-registration scenarios of domains being banned, clearly delineated from the paragraph dealing with pre-registration scenarios.
In his blog post, Negari said the RSEP “addressed the proactive abuse mitigation we will take to shut down phishing, pharming, malware, and other abuse in China”.
I can’t believe this is true. The consequence would be that if China sent XYZ a take-down notice about a malware or phishing site registered to a non-Chinese registrant, XYZ would simply ignore it.
Regardless, the takeaway today is that XYZ is now saying that it will not ban a domain before it has been registered, unless that domain has previously been registered by a Chinese resident and subsequently specifically banned by the Chinese government.
The registry says this is no different to how it would treat take-down notices issued by, for example, a US court. It’s part of its contractual obligation to abide by “applicable law”, it says.
Whether this is a policy U-turn or a case of an erroneous RSEP being submitted… frankly I don’t want to get into that debate.
Disclosure: during the course of researching this story, I registered .xyz domains matching (as far as this monoglot can tell) the Chinese words for “democracy”, “human rights”, “porn” and possibly “Tiananmen Square”. I have no idea if they have value and have no plans to develop them into web sites.

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Forget .sucks, .feedback will drive trademark owners nuts all over again

Kevin Murphy, November 4, 2015, Domain Registries

Top Level Spectrum, the new gTLD registry behind .feedback, plans to give sell domains matching 5,000 of the world’s top brands to a third party that does not own the trademarks.
That’s one novel element of a .feedback business model that is guaranteed to drive the intellectual property community crazy in much the same way as .sucks did earlier this year.
The other piece of ‘innovation’ will see all .feedback domains — including the 5,000 brands — point by default to a hosted service that facilitates comment and criticism.
An example of such a site can be seen at www.eggsample.feedback. The registry’s CEO, Jay Westerdal, has a .feedback site at www.jay.feedback
If you agree to use the hosted service with your domain, the domain and service combined will cost a minimum of just $20 per year.
However, if you want to turn off the hosted service and use your .feedback like a regular domain, pointing to the web site of your choice, the price will ratchet up to $50 a month, or $620 a year.
Those are the wholesale prices. Both services will be offered through registrars, where some markup is to be expected.
The hosted service is being offered by Feedback SAAS LLC, a company that, judging by its web site, appears to share ownership with Top Level Spectrum, though Westerdal says the two firms have different employees.
It’s not dissimilar to the model employed by .tel, where name servers by default point to a registry-hosted service.
Unlike .tel, .feedback registrants will be able to opt out of using the SAAS service and point their domains to whatever name servers they want.
Westerdal told DI that .feedback is in the process of making a deal with a “third party” he could not yet name to have 5,000 branded .feedback domains deployed during the Early Access Period of the .feedback launch. That’s scheduled to start January 6.
“We are striking a deal to get feedback sites out there. We want everything to have feedback,” he said. “We are signing an agreement to get the ball rolling by doing a founders program to get names out there. Your favorite shoe, your pizza place, your everything.”
“The sites are all geared towards free speech and giving reviews,” he said. He said:

No trademark infringement will occur though, the sites are all geared towards free speech and giving reviews. Confusing the public that the brand is running the site will not happen, each site has a disclaimer and makes it clear the brand is not running the site.

Asked whether we were talking about a genuine third party or a shell set up by the registry, he said: “A real third party. I am not playing games.”
He said the higher pricing for the naked domain registration is intended to discourage companies from turning off the domains matching their brands.
The whole point of .feedback is to solicit feedback.
The as-yet unspecified third-party taking possession of the 5,000 brand names would not be prevented from selling the domains to the matching brand owner, or to any third parties, he said, though he would not be in favor of such a move.
He said that $20 a year to run a configurable .feedback site, with moderator privileges, is a “great deal” compared to the $300-a-month service he said consumer review site Yelp offers.
The SAAS service will make additional revenue by selling added features, suitable for enterprises, he said.
.feedback went into its sunrise period last week with a $2,000 wholesale fee — the same high price that attracted criticism for .sucks.
The original Registry Service Evaluation Process for the .feedback service hit ICANN over a year ago (pdf).
I missed it then. Sorry.
I noticed it today after corporate registrar MarkMonitor blogged about it.
Matt Serlin, VP of MarkMonitor, who blogged his opinion on .feedback’s strategy earlier today, said in an email that the .feedback strategy was “more objectionable” than he had thought, and that “[W]e would most likely look to raise to ICANN if that is his stated intent.”

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Pro-.com analyst “sponsored” by Verisign. Is this a big deal?

Kevin Murphy, November 4, 2015, Domain Registries

Verisign has admitted it “sponsors” an analyst who has written more than a dozen articles singing the praises of .com and questioning the value of new gTLDs over the last few years.
Zeus Kerravala is the founder and principal analyst at ZK Research. He writes a regular column for Network World called Network Intelligence.
Last week, domain industry eyebrows were raised by the latest in a series of pro-.com articles — all of which seem to have been removed by Network World in the last 24 hours — to appear in the column.
The latest article was entitled “Why more companies are ditching new domain names and reverting to .com“.
Kerravala basically mined domain industry blogs, including this one, for examples of companies preferring .com over ccTLDs and new gTLDS, to support a view that .com is awesome and other TLDs are not.
He could have quite easily have used the same method to reach the opposite conclusion, in my view.
The Halloween-themed article concluded:

The good news is that .com will be here now and into the future, just like it has been for the past 30 years to provide treats to businesses after they have been “tricked” by other TLDs.

The article, and 12 more before it dating back to August 2012, looked to some like Verisign spin.
Other headlines include “Why .com is still the domain of choice for businesses” and “New generic top-level domain names do more harm than good” and “Companies are movin’ on up to .com domain names”.
They’re all basically opinion pieces with a strongly pro-.com slant.
The opinion that .com is better than the alternatives is not uncommon, especially among domainers who have lots of money tied up in .com investments.
The fact that Kerravala, who doesn’t usually touch the domain industry in his column, has written a dozen stories saying essentially the same thing about .com over the last couple of years looked a bit odd to some in the domain industry.
And it turns out that he is actually on the Verisign payroll.
A Verisign spokesperson told DI: “ZK Research is a sponsored industry analyst and blogger.”
The company declined to answer a follow-up question asking whether this meant he was paid to blog.
Kerravala told DI that Verisign is one of his clients, but denied blogging on its behalf. He said in an email:

they are a client like many of the other large technology firms. Although I blog, like many analysts, I am first an foremost an analyst. I have paid relationships with tech vendors, service providers, end user firms, resellers and the financial community.
Verisign pays me for inquiry time and to have access to my research. Verisign has many relationships like this with many analyst firms and I have this type of relationship with many other technology firms.
In no way do vendors pay me to write blogs nor do they influence my research or my opinions. Sometimes, I may choose to interview a vendor on a certain topic and include them in the article.

Kerravala had not disclosed in his Network World articles or boilerplate biography that Verisign is one of his clients.
In a January 2014 article published on SeekingAlpha, “New Generic Top Level Domain Names Pose No Threat To VeriSign“, contains a disclosure that reads in part “I have no business relationship with any company whose stock is mentioned in this article.”
Kerravala said in an email that although his relationship with Verisign started in 2013, the company was not a client at the time the SeekingAlpha article appeared.
The relationship came to light after new gTLD registry Donuts emailed Kerravala via a third party — and Kerravala says under false pretenses — claiming to have liked his most recent article and asking for a contact name at Verisign.
He would have responded honestly to just being asked directly by Donuts, he said.
In a telephone conversation yesterday, he said that his articles about .com represent his genuinely held beliefs which, as we agree, are not particularly unusual.
He observed that DI has a generally pro-TLD-competition point of view, and that many of my advertisers are drawn from the new gTLD industry, and said that his relationship with Verisign is not dissimilar to DI’s relationship to its advertisers.

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.apple goes live

Kevin Murphy, November 4, 2015, Domain Registries

Apple’s .apple new gTLD was delegated today.
It’s going to be a strict dot-brand gTLD, in which only Apple can register domain names, but could wind up being highly influential.
While .apple now appears in the DNS root zone, no second-level names (not even nic.apple) are yet resolving.
Should Apple actually use its new TLD in a prominent way, it would be good news for the visibility of new gTLDs internationally.
The company has sold hundreds of millions of devices over the last decade or so.
But the company has a spotty history of paying attention to domain names, regularly launching products without first securing matching domain names.
It did recently adopt a .news domain name for one of its apps, however.
.apple could wind up being purely defensive, at least in the near term.
Apple’s 2012 application to ICANN describes its plans in literally one sentence, repeated five times:

Apple seeks to obtain the new .apple gTLD in order to provide consumers with another opportunity to learn about Apple, and its products and services.

Apple division Beats Electronics, which makes headphones, also had its dot-brand, .beats, delegated today.

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Correction: .shop auction weirder than I thought

Kevin Murphy, November 2, 2015, Domain Registries

The upcoming auction for .shop and .shopping new gTLDs is weird, but in a different way to which I reported on Friday.
The actual rules, which are pretty complicated, mean that one applicant could win a gTLD auction without spending a single penny.
The nine applicants for .shop and the two applicants for .shopping are not necessarily all fighting it out to be a single victor, which is what I originally reported.
Rather, it seems to be certain that both .shop and .shopping will wind up being delegated.
The ICANN rules about indirect contention are not well-documented, as far as I can tell.
When I originally reported on the rules exactly two years ago today, I thought an animated GIF of a man’s head exploding was an appropriate way to end the story.
In the .shop/.shopping case, it seems that all 11 applications — nine for .shop and two for .shopping — will be lumped into the same auction.
Which applicant drops out first will determine whether both strings get delegated or only one.
Uniregistry and Donuts have applied for .shopping, but only Donuts’ application is in contention with Commercial Connect’s .shop application (due to a String Confusion Objection).
As Donuts has applied for both .shop and .shopping, it will be submitting separate bids for each application during the auction.
The auction could play out in one of three general ways.
Commercial Connect drops out. If Commercial Connect finds the .shop auction getting too rich for it and drops out, the .shopping contention set will immediately become an entirely separate auction between Uniregistry and Donuts. In this scenario, both .shop and .shopping get to become real gTLDs.
Donuts drops its .shopping bid. If Donuts drops its bid for .shopping, Uniregistry is no longer in indirect contention with Commercial Connect’s .shop application, so it gets .shopping for free.
Commercial Connect wins .shop. If Commercial Connect prevails in .shop, that means Donuts has withdrawn from the .shopping auction and Uniregistry wins.
It’s complicated, and doesn’t make a lot of logical sense, but it seems them’s the rules.
It could have been even more complex. Until recently, Amazon’s application for .通販 was also in indirect contention with .shop.
Thanks to Rubens Kuhl of Nic.br for pointing out the error.

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