Verisign’s silly .xyz lawsuit thrown out

Verisign has had its false advertising lawsuit against the .xyz gTLD registry thrown out of court.
XYZ.com this week won a summary judgement, ahead of a trial that was due to start next Monday.
“By granting XYZ a victory on summary judgement, the court found that XYZ won the case as a matter of law because there were no triable issues for a jury,” the company said in a statement.
The judge’s ruling does not go into details about the court’s rationale. XYZ’s motion to dismiss has also not been published.
So it’s difficult to know for sure exactly why the case has been thrown out.
Verisign sued in December, claiming XYZ and CEO Daniel Negari had lied in advertising and media interviews by saying there are no good .com domain names left.
Many of its claims centered on this video:

XYZ said its ads were merely hyperbolic “puffery” rather than lies.
Verisign also claimed that XYZ had massively inflated its purported registration numbers by making a shady $3 million reciprocal domains-for-advertising deal with Network Solutions.
XYZ general counsel Grant Carpenter said in a statement: “These tactics appear to be part of a coordinated anti-competitive scheme by Verisign to stunt competition and maintain its competitive advantage in the industry.”
While Verisign has lost the case, it could be seen to have succeeded in some respects.
XYZ had to pay legal fees in “the seven-figure range”, as well as disclose hundreds of internal company documents — including emails between Negari and me — during the discovery phase.
Through discovery, Verisign has obtained unprecedented insight into how its newest large competitor conducts its business.
While I’ve always thought the lawsuit was silly, I’m now a little disappointed that more details about the XYZ-NetSol deal are now unlikely to emerge in court.

9 Comments Tagged: .xyz, false advertising, lawsuit, network solutions, new gTLDs, verisign, xyz.com

Registrars warn of huge domain suspension scam

Customers of at least half a dozen large registrars been targeted by an email malware attack that exploits confusion about takedown policies.
The fake suspension notices have been spammed to email addresses culled from Whois and are tailored to the registrar of record and the targeted domain name.
Customers of registrars including eNom, Web.com, Moniker, easyDNS, NameBright, Dynadot and Melbourne IT are among those definitely affected. I suspect it’s much more widespread.
The emails reportedly look like this:

Dear Sir/Madam,
The following domain names have been suspended for violation of the easyDNS Technologies, Inc. Abuse Policy:
Domain Name: DOMAIN.COM
Registrar: easyDNS Technologies, Inc.
Registrant Name: Domain Owner
Multiple warnings were sent by easyDNS Technologies, Inc. Spam and Abuse Department to give you an opportunity to address the complaints we have received.
We did not receive a reply from you to these email warnings so we then attempted to contact you via telephone.
We had no choice but to suspend your domain name when you did not respond to our attempts to contact you.
Click here and download a copy of complaints we have received.
Please contact us by email at mailto:abuse@easydns.com for additional information regarding this notification.
Sincerely,
easyDNS Technologies, Inc.
Spam and Abuse Department
Abuse Department Hotline: 480-124-0101

The “click here” invitation leads to a downloadable file, presumably containing malware.
Of course, the best way to check whether your domain name has been genuinely suspended or not is to use it — visit its web site, use its email, etc.
As domain suspensions become more regularly occurrences, due to ICANN policies on Whois accuracy for one reason, we can only expect more scams like these.

3 Comments Tagged: malware, phishing, security, spam

Three new ICANN directors started today

A former Dutch politician, a cable company VP and a Latin American ccTLD manager joined the ICANN board of directors today.
The three new directors took their seats at the conclusion of the ICANN 54 public meeting in Dublin.
Two were Nominating Committee appointees, the third was selected by the Address Supporting Organization to replace six-year veteran Ray Plzak.
Lousewies van der Laan is possibly the highest-profile new director.
She is a former politician who has sat as a member of both Dutch national and European parliaments.
She was a member of the super liberal D66 party in the Netherlands, briefly leading whilst it was part of a governing coalition before a leadership vote defeat and her subsequent retirement from politics in 2006.
Wikipedia has her as a former party spokesperson for “foreign policy, higher education, justice, technology, European affairs and gay rights”
Since then, she has spent time as chief of staff of the president of the International Criminal Court and an independent public affairs consultant.
She’s the second former MEP to sit on the current ICANN board, after German Facebook lobbyist Erika Mann.
The other NomCom appointee is Rafael “Lito” Ibarra, who runs SVNet, the ccTLD manager for El Salvador’s .sv domain.
According to ICANN, he is known as the “father of the Internet” in El Salvador, due to his contributions over the last couple of decades.
He seems to have received the .sv delegation from Jon Postel himself, in the pre-ICANN days.
He’s also on the board of LACNIC, the Latin American IP address registry.
The ASO appointee is Ron da Silva, VP of network engineering at US cable giant Time Warner Cable.
His previous employers include AOL and Sprint. He’s also been chair of ARIN’s advisory council.
The NomCom also reappointed incumbent George Sadowsky, who already has six years of ICANN board service under his belt.
The other two departing directors were Wolfang Kleinwachter and Gonzalo Navarro.

3 Comments Tagged: board, dublin, ICANN, icann 54

Why did the GNSO fail to pick a new leader?

Political infighting between sections of the Generic Names Supporting Organization seems to be responsible for the GNSO Council’s failure to elect a new chair yesterday.
Rumor has it that Contracted Parties House pick James Bladel, a VP at Go Daddy, only lost because of ructions in the Non-Contracted Parties House.
I stress these are just rumors — nobody with any first-hand knowledge of the situation was prepared to go on-record with me today — but they come from multiple sources.
As I reported earlier today, Bladel failed to secure the support of over 60% of the NCPH — the threshold to be elected chair — despite having the unanimous support of the CPH.
Roughly 47% of the NCPH chose to vote for “none of the above” instead, resulting in the GNSO Council now lacking a chair.
But I gather that this was not a diss against Bladel, his employer, or the CPH per se.
Rather, the story I’m hearing is that some councilors gave an empty chair their votes as a result of disagreements between the commercial and non-commercial sides of the NCPH.
Some say a deal had been made under which NCPH candidate Heather Forrest would receive at least 60% of the vote in round one, but some voters reneged on the deal, meaning she was knocked out of the running.
I don’t know if that’s true or not, but what it implies is that some votes that would have otherwise gone to Bladel in round two of voting were withheld, essentially out of spite.
Bladel only needed one additional NCPH vote to hit his 60%.
If this sounds like childish bickering, you may be right, but it wouldn’t be the first time a GNSO constituency has disrupted the council in order to make a point.
The last time that happened to a significant degree was over three years ago, when non-commercial users exploited a timing issue to protest new rights protection mechanisms for the Olympics, risking the new gTLD program timeline.
That led some at the time to predict the “death” of the GNSO.
That’s not happening this time. If anything, the wagons are circling.
Hastily reappointed council vice chair Volker Greimann, who became de facto chair at least for today, described the current situation as “business as usual” today, pointing out that ICANN bylaws envisaged and accounted for this kind of power vacuum.
The next vote on the chair’s position will take place at least a month from now.

1 Comment Tagged: dublin, election, gnso, ICANN, icann 54

Go Daddy veep loses ICANN election to “none of the above”

ICANN’s multistakeholder GNSO Council has been left embarrassingly rudderless after its members failed to elect a new chair.
The unprecedented result saw Go Daddy VP of policy James Bladel lose an election to “none of the above” yesterday.
Under GNSO rules, there are two candidates for chair. One is nominated by the Contracted Parties House (registries and registrars), the other by the Non-Contracted Parties House (intellectual property interests, ISPs, non-commercial users etc).
Bladel was the CPH candidate. He stood against Australian academic Heather Forrest, on the council representing the Intellectual Property Constituency.
To get elected, a candidate must get 60% of the vote from both houses.
In the first round of voting, conducted via secret ballot, Bladel won 100% of the CPH vote and 47% of the NCPH vote.
Forrest was then eliminated for the second round, which meant Bladel proceeded to a second round of voting: him against “none of the above”.
Council members took 15 minutes out to discuss among themselves what to do.
When they returned, Bladel’s CPH support remained unchanged, but he had only managed to get 53.85% of the NCPH vote.
If my calculations are correct, Bladel essentially missed the 60% threshold by a single vote.
That means the GNSO Council no longer has a chair.
The interregnum will last at least a month.
Each house now has until November 5 to make new nominations. The election will then be re-run “no sooner than 30 days” from yesterday.
In the meantime, the two vice chairs are running the show. The CPH said its current vice chair Volker Greiman will remain in the role while a new chair is being elected. The NCPH has not yet appointed a vice chair.
This morning, the CPH issued a statement that read in part:

Like many in the GNSO Community, the Contracted Party House is disappointed in the unprecedented outcome of the Council election. It is particularly unfortunate that this scenario occurred at a time when ICANN is in the global spotlight.
Throughout the election process, the common theme has been an agreement amongst all Councilors that either candidate would have made a competent and effective GNSO Chair. However, the qualifications of both candidates were ultimately disregarded.

In recent history, GNSO chairs have been drawn from the registries and registrars.
Since 2009, the chairs have been Jonathan Robinson (Afilias), Stephane Van Gelder (then Group NBT, a registrar), Chuck Gomes (Verisign).
This trend did not escape the notice of GNSO members, who quizzed Bladel and Forrest on Sunday on whether they would be able to give fair treatment to both houses on the Council.
Both candidates gave gracious responses. Bladel said:”The chair does not get extra votes when it comes to decisions. The chair does not have his votes taken away; his or her votes taken away. So really this is a question of optics.”

6 Comments Tagged: dublin, election, gnso council, ICANN, icann 54

Should brands get a new gTLD round to themselves? Twitter thinks so

Twitter wants to get its hands on some new gTLDs but doesn’t want to wait.
Having missed the first round of new gTLD applications back in 2012, the company is now keen on getting .twitter and other strings both branded and generic.
“We’re interest in round two,” Twitter trademark counsel Stephen Coates said as ICANN’s business constituencies met the board of directors today.
“We have several interesting opportunities to develop around that space,” he said. “We are interested in both brands and generics.”
The problem for Twitter, and every other would-be gTLD applicant, is that ICANN isn’t even talking in broad terms about when the next round will be.
The absolute minimum that must happen is that ICANN must complete a review of round one, focusing on “Competition, Consumer Trust and Consumer Choice”. This CCT review is mandated by ICANN’s Affirmation of Commitments with the US government.
Almost three years after the first round opened, the volunteer team that will carry out the CCT review has not even been assembled yet.
There are a number of other factors that may or may not wind up on the critical path — such as reviews of rights protection mechanisms and security and stability at the DNS root.
Coates said he would like a “bifurcated” review process leading to two separate second application rounds.
“I would advocate for bifurcating the review process, which I think is very important, especially around RPMs,” he said. “But also bifurcating the round process, treating dot-brands differently than generic names.”
I think this outcome is unlikely.
Application rules that give preference to one type of application over another invite exploitation. It happened in the 2003 sponsored TLD round and it’s happening with “community” and “Specification 13” applications in the current round too.

Comment Tagged: dot-brands, ICANN, icann 54, new gTLDs, twitter

ICANN boss warns against “content policing” calls

ICANN should resist attempts to turn the organization into a content regulator responsible for fighting piracy, counterfeiting and terrorism.
That’s according to CEO Fadi Chehade, speaking in Dublin yesterday at the opening ceremony of ICANN’s 54th public meeting.
His remarks have already solicited grumbles from members of the intellectual property community, which are eager for ICANN to take a more assertive role against registries and registrars.
Speaking to a packed auditorium, Chehade devoted a surprisingly large chunk of his opening address to the matter of content policing, which he said was firmly outside of ICANN’s remit.
He presented this diagram, breaking up the internet into three layers. ICANN plays in the central “logical” section but has no place in the top “societal” segment, he said.

“Where does ICANN’s role start and where does ICANN’s role stop?” Chehade posed. “It’s very clear Our remit starts and stops in this logical yellow layer. We do not have any responsibility in the upper layer.”
“The community has spoken, and it is important to underline that in every possible way, ICANN’s remit is not in the blue layer, it is not in the economic/societal layer,” he said. This is a technical organization.”
That basically means that ICANN has no responsibility to determine which web sites are good and which are bad. That’s best left to others such as the courts and governments.
Chehade recounted an anecdote about a meeting with a national president who demanded that ICANN shut down a list of terrorism-supporting web sites.
“We have no responsibility to render judgement about which sites are terrorists,” he said, “which sites are the good pharmacies, which sites are the bad pharmacies, which sites are comitting crimes, which sites are infringing copyrights…”
“When people ask us to render judgement on matters in the upper layer, we can’t.”
With that all said, Chehade added that ICANN should not shirk its duties as part of the ecosystem, whether through voluntary measures at registries and registrars or via contractual enforcement.
“Once determinations are made, how do we respond the these?” he said. “I hope, voluntarily.”
He gave the example of credit card companies that voluntarily stop doing business with web sites that have been reported to be involved in crime or spam.
The notion of registrars adhering to a set of voluntary principles was first floated by ICANN’s chief compliance officer, Allen Grogan, in a blog post earlier this month.
It was the one bone he threw to IP interests in a determination that otherwise came down firmly on the side of registrars.
Grogan had laid out a minimum set of actions registrars must carry out when they receive abuse reports, none of which contained a requirement to suspend or delete domain names.
The Intellectual Property Constituency appeared to greet Chehade’s speech with cautious optimism, but members are still pushing for ICANN to take a stricter approach to contract compliance.
In a session between the IPC and the ICANN board in Dublin this morning, ICANN was asked to make these hypothetical voluntary measures enforceable.
Marc Trachtenberg disagreed with Chehade’s credit card company example.
“The have an incentive to take action, which is the avoidance of future potential costs,” he said. “That similar incentive does not exist with respect to registries and registrars.”
“In order for any sort of voluntary standards to be successful or useful, there have to be incentives for the parties to actually comply with those voluntary standards,” he said.
“One possibility among many is a situation where those registries and registrars that don’t comply with the voluntary standards are potentially subject to an ICANN compliance action,” he said.
It’s pretty clear that this issue is an ongoing one.
Chehade warned in his address yesterday that calls for ICANN to increase its policing powers will only increase when and if its IANA contract is finally divorced from US government oversight.
Grogan will host a roundtable tomorrow at 10am Dublin time to discuss possible voluntary mechanisms that could be created to govern abuse.

1 Comment Tagged: compliance, copyright, crime, dublin, ICANN, icann 54, ipc, spam

ALAC throws spanner in ICANN accountability discussions

The At-Large Advisory Committee has yanked backing for a key ICANN accountability proposal.
The ALAC, on of ICANN’s policy advisory groups, this afternoon voted unanimously “to withdraw support for the Membership model” at ICANN 54 in Dublin.
The Membership model is a proposal out of the Cross Community Working Group on Accountability (CCWG) that would change ICANN’s legal structure to one of formal membership, where a Sole Member gets legal rights to enforce accountability over the ICANN board of directors.
The model has some fierce support in the CCWG, but over the last few days in Dublin the group has started to explore the possibility of a “Designator” model instead.
That would be a weaker accountability model than one based on membership, but stronger than the “Multistakeholder Enforcement Mechanism” proposed by the ICANN board.
ALAC chair Alan Greenberg said in a statement to the CCWG mailing list:

In its formal response to the CCWG-Accountability proposal issued in August 2015, the ALAC said that it could support the model being proposed, but preferred something far less complex and lighter-weight, and that we saw no need for the level of enforceability that the proposal provided. Moreover, the ALAC had specific concerns with the budget veto and the apparent lack of participation of perhaps a majority of AC/SOs.
In light of the reconsideration of a designator model by the CCWG, along with the recommendations of the Saturday morning break-out sessions, the ALAC felt that a revised statement was in order. Accordingly we decided, by a unanimous vote of the 14 ALAC members present (with 1 not present), to withdraw support for the Membership model.
I want to make it clear that this is not a “red line” decision. Should a Membership model become one that is generally advocated by the CCWG, and supported by a supermajority of Board directors (who ultimately MUST support any changes that they will be called upon to approve, else they would be in violation of their fiduciary duty), then the ALAC reserves its right to support such a model.

The move revises the battle lines in the ongoing accountability debate. It’s no longer a simple case of CCWG versus ICANN board.
Dublin is a crunch time for the accountability proposals.
The clock is ticking — if the ICANN community cannot agree on a consensus proposal soon it risks delaying the transition of the IANA functions from US government oversight and possibly killing off the transition altogether.
Yet, while the CCWG is making steady progress cleaning up remaining areas of disagreement, the differences between itself and the board are still as sharp as ever.

Comment Tagged: accountability, alac, ccwg, dublin, iana transition, ICANN, icann 54

ICANN 54 – Sunday live-blog

Testing, testing… one, two, one, two…
This is a live blog covering developments from ICANN 54 in near real-time.
If you’re looking at this page, the post will refresh automatically whenever there’s new content to see. If you’re reading it elsewhere it will, presumably, not.
Today I’ll be mainly sticking with the Generic Names Supporting Organization session, where they’re shortly due to meet with ICANN CEO Fadi Chehade.

Comment Tagged: icann 54, live-blog

Afilias gives its gTLDs a kick up the bum with U-turn 101domain buy

Afilias, once one of the fiercest opponents of registries owning registrars, has acquired 101domain to gain its first significant foothold in the registrar market.
Wolfgang Reile, president and CEO of 101domain, said he would be quitting the company and that COO/CFO Anthony Beltran will be leading the new Afilias unit in future.
The acquisition, which closed September 2, was for an undisclosed amount, but I’d say it was easily a seven-figure deal.
When Afilias rival CentralNic acquired Internet.bs last year, it paid $7.5 million.
California-based 101domain is currently about a quarter of the size that Internet.bs was when it was bought, based on gTLD domains under management, with a little over 120,000 names on its books as of June this year, according to registry reports.
But the company is well known as a go-to registrar if you want a broad choice of TLDs — it says it currently supports over 900. Its ccTLD sales may make the company much bigger.
Getting its stable of registry offerings to market is one of the reasons Afilias was drawn to 101domain.
Afilias’ own portfolio of TLDs contain some semi-restricted strings — such as .vote, which has a no-domaining policy — that would not be automatically attractive to many registrars.
Afilias told DI:

This acquisition furthers our post-vertical integration strategy of establishing a capability that enables us to both service our registry customers and ensure an outlet for TLDs of our own that may not be easy to find at a traditional registrar. 101domain is expected to continue to operate as it does today.

Afilias actually already had a registrar division — Emerald Registrar, which does business from iDomains.com — but had fewer than 1,500 domains under management at the last count.
Its registry business has over 20 million domains.
If you have a long memory, you may recall that Afilias was once dead-set against the concept of vertical integration — registries and registrars under the same ownership — which in the post-2012 new gTLD world has become industry standard.
The ICANN working group that was tasked with reforming ownership rule was held in stalemate by Afilias and Go Daddy back in 2010, before ICANN finally broke the deadlock.
New gTLD portfolio registries including Uniregistry, Google, Minds + Machines and Rightside have registrar businesses already. Famous Four seems to be closely aligned with Alpnames, and Donuts is tight with Rightside.

5 Comments Tagged: 101domain, acquisition, afilias, emerald registrar, new gTLDs