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Domaining Europe moves to the Netherlands

Kevin Murphy, December 2, 2015, Domain Services

Domaining Europe conference will be held in the Netherlands for the first time in 2016.
Organizers say the venue will be the Grand Hotel Amrâth Kurhaus in The Hague, which is about an hour by train from Amsterdam’s Schipol airport.
Since its inception, Domaining Europe has been held in Valencia, Spain.
The plan for 2016 is to hold the conference May 29 to 31, two days after the TheNextWeb Europe conference ends in Amsterdam.

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It’s official: new gTLDs didn’t kill anyone

Kevin Murphy, December 2, 2015, Domain Tech

The introduction of new gTLDs posed no risk to human life.
That’s the conclusion of JAS Advisors, the consulting company that has been working with ICANN on the issue of DNS name collisions.
It is final report “Mitigating the Risk of DNS Namespace Collisions”, published last night, JAS described the response to the “controlled interruption” mechanism it designed as “annoyed but understanding and generally positive”.
New text added since the July first draft says: “ICANN has received fewer than 30 reports of disruptive collisions since the first delegation in October of 2013. None of these reports have reached the threshold of presenting a danger to human life.”
That’s a reference to Verisign’s June 2013 claim that name collisions could disrupt “life-supporting” systems such as those used by emergency response services.
Names collisions, you will recall, are scenarios in which a newly delegated TLD matches a string that it is already used widely on internal networks.
Such scenarios could (and have) led to problems such as system failure and DNS queries leaking on to the internet.
The applied-for gTLDs .corp and .home have been effectively banned, due to the vast numbers of organizations already using them.
All other gTLDs were obliged, following JAS recommendations, to redirect all non-existent domains to 127.0.53.53, an IP address chosen to put network administrators in mind of port 53, which is used by the DNS protocol.
As we reported a little over a year ago, many administrators responded swearily to some of the first collisions.
JAS says in its final report:

Over the past year, JAS has monitored technical support/discussion fora in search of posts related to controlled interruption and DNS namespace collisions. As expected, controlled interruption caused some instances of limited operational issues as collision circumstances were encountered with new gTLD delegations. While some system administrators expressed frustration at the difficulties, overall it appears that controlled interruption in many cases is having the hoped-for outcome. Additionally, in private communication with a number of firms impacted by controlled interruption, JAS would characterize the overall response as “annoyed but understanding and generally positive” – some even expressed appreciation as issues unknown to them were brought to their attention.

There are a number of other substantial additions to the report, largely focusing on types of use cases JAS believes are responsible for most name collision traffic.
Oftentimes, such as the random 10-character domains Google’s Chrome browser uses for configuration purposes, the collision has no ill effect. In other cases, the local system administrators were forced to remedy their software to avoid the collision.
The report also reveals that the domain name corp.com, which is owned by long-time ICANN volunteer Mikey O’Connor, receives a “staggering” 30 DNS queries every second.
That works out to almost a billion (946,728,000) queries per year, coming when a misconfigured system or inexperienced user attempts to visit a .corp domain name.

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Complaints over 50% .uk price hike

Kevin Murphy, November 27, 2015, Domain Registries

.uk registrars are petitioning Nominet to complain about plans to increase the price of a .uk domain name by up to 50%.
The registry announced the price increase, which will come into effect March 1 next year, on Wednesday.
A one-year registration will go up to £3.75 ($5.65) wholesale, still cheaper than any gTLD I can think of.
Currently, Nominet charges £3.50 for a one-year reg and £2.50 per year for multi-year registrations.
The company heavily hinted, in an email, that some of this extra cash will wind up in registrars’ pockets, due to promotional spending:

Our new pricing strategy aims to accomplish three things. Firstly, as with any business the price we charge is linked to our ability to deliver a fantastic service. Secondly, we want to invest in the .UK namespace to ensure we can differentiate over the long-term. Thirdly, we want to be able to invest in marketing and promotions in order to secure prominence at point of sale – which our current pricing levels cannot support.

The price of a .uk domain has not increased since 1999, Nominet said.
Increasing the price from a posh coffee to a London beer is presumably not a big deal for most registrants, but domainer-registrars are unhappy.
Andrew Bennett of Netistrar has set up a web site at egm.uk to call for “outraged” registrants and Nominet members to voice their opposition to the changes.
The site points out that Nominet has said it will review its pricing annually.
It calls on Nominet to have a three-month public consultation then a member vote before introducing the changes.
At time of publication, 77 registrants and 47 Nominet members have signed the petition.
On its web site, Nominet lists 2,048 members.

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Bladel romps home in ICANN election re-run

Kevin Murphy, November 24, 2015, Domain Policy

Go Daddy VP of policy James Bladel has been elected chair of ICANN’s Generic Names Supporting Organization Council.
The result came a month after the GNSO Council embarrassingly failed to elect a chair to replace outgoing Jonathan Robinson.
This time Bladel ran unopposed, securing the unanimous support of both his own Contracted Parties House and the Non-Contracted Parties House, which did not field a candidate.
In the October vote, the NCPH had nominated academic Heather Forrest.
Due to personal friction between commercial and non-commercial NCPH Council members, Bladel lost that election to “none of the above” by a single vote.
Forrest has been elected vice-chair, along with Neustar’s Donna Austin.
Volker Greimann and David Cake, who had been running the Council on an interim basis for the last month, have stepped aside.

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Verisign warns about Chinese .com boom

Kevin Murphy, November 24, 2015, Domain Registries

Verisign has warned investors that the current boom in .com sales is largely coming from Chinese domainers and may not be sustainable.
The company has added an unprecedented 4.1 million domain in .com and .net so far during the fourth quarter.
“While there continues to be demand for domain names globally, the recent increased volume for Verisign’s top level domains, as well as top level domains of other registries, during the fourth quarter is coming largely through registrars in China,” the company said in a Securities and Exchange Commission filing.
It listed several factors that are likely responsible for the sudden uptick, but warned that renewal rates are typically not great.

In the past, Verisign has discussed many factors that affect the demand for domain names, including, but not limited to economic, social, and regulatory conditions, Internet adoption, Internet penetration, and increasing e-commerce. In addition to these factors affecting demand, Verisign is also evaluating additional potential factors unique to China that may also be responsible for the recent increased volume of new registrations in China.
In no particular order, these potential factors, or combination of factors, could include, but may not be limited to, government initiatives in China to develop their online economy such as ‘Internet Plus;’ registry and registrar regulatory requirements; cultural influences such as the popularity of numeric domain names; increasing competition amongst Chinese registrars; potential increases in domain name investment activity; and recent capital markets volatility and access to capital in China.
Verisign cannot predict if or how long this increased pace of gross additions will continue and we cannot at this time predict what the renewal rate for these domain names will be. Verisign has noted in the past that renewal rates for domain names registered in emerging markets, such as China, have historically been lower than those registered in more developed markets.

It’s difficult to imagine that Chinese investors have managed to find four million unregistered domains worth keeping.
There are currently 123,497,852 domains in the .com zone file, according to Verisign’s web site.
Verisign is not the only registry that appears to be benefiting from a deluge of registrations from China.
XYZ.com has seen over 440,000 domains added to its .xyz zone file in the last three weeks, bringing its total to over 1.5 million, which appear to be largely coming through Chinese registrars.

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Verisign v XYZ judge confirms both companies suck

Kevin Murphy, November 21, 2015, Domain Registries

Verisign and XYZ.com have both come out of a US lawsuit looking like scumbags.
Explaining his dismissal of Verisign’s false advertising lawsuit against .xyz registry XYZ.com, Virginia judge Claude Hilton today said that XYZ.com’s statements about its registration numbers were “verifiably true”.
At the same time, he confirmed that they came about as a result of a bullshit deal with Network Solutions to bolster .xyz’s launch numbers.
The judge’s ruling confirms for the first time the financial details of the deal between XYZ and Web.com (Network Solutions) that saw .xyz’s registration volume rocket in its first few weeks of general availability. He wrote:

Web.com purchased 375,000 domain names for a price of $8 each totaling $3 million dollars. In exchange, XYZ purchased advertising from Web.com in the form of 1,000 impressions for $10 each, at a total cost of $3 million dollars. Instead of cash exchanging hands, advertising credit was given to XYZ and the .xyz domain names were given to Web.com, who subsequently gave them away as free trials to their subscribers.

In other words, XYZ bought $10,000 of advertising for $3 million and paid for it with $3 million of free .xyz domains — 375,000 of them.
That bogus deal enabled XYZ to report big reg volume numbers without actually, legally, lying,
“The statements regarding Defendants’ revenue and number of registrations are statements of fact that are verifiably true,” the judge wrote.

When the Defendants [XYZ.com] stated they were a market leader in new TLD’s and that they had the most new registrations than any other TLD, they were basing that information off of an accurate zone file. Further, the zone file confirms that there are over 120 million .com registrations and one {1) million .xyz registrations. These statements are also true.

The judge said he was dismissing the suit not just because XYZ wasn’t lying, but also because Verisign couldn’t show that it had been harmed.
The number of .com registrations has actually been going up, he noted.
Much of Verisign’s complaint centered on this ad:

Verisign said the ad lied about the availability of .com domains, which XYZ denied.
The judge said:

The video posted to YouTube is puffery and opinion. It displays no actual domain names, and communicates a subjective measure of value and superiority, not capable of being proven false.

“Puffery” is a term with legal weight in false advertising cases under US law. It basically means that advertisers are allowed to exaggerate. XYZ had in fact used the “puffery” defense.
The judge seems to have relied heavily on zone file analysis to reach his conclusions. He wrote.

according to Plaintiff’s [Verisign’s] own data, .com names are largely unavailable. In a given month, Plaintiff reports that it receives about two (2) billion requests to register <.com> domain names, yet fewer than three (3) million are actually registered.

I believe that “two billion” number refers to how many “attempted adds” Verisign gets every month for .com domains, as reported in its monthly reports with ICANN.
That number would include every automated attempt to register a dropping domain by every registrar.
It’s not a reflection of how many actual human beings attempt and fail to register .com domains and, in my view, it’s worrying that the judge took it to mean that.
In summary, the lawsuit managed to unearth the dirty reality behind XYZ’s launch “success”, whilst also making Verisign look like a petty, petulant, child.
Everybody loses.
Except the lawyers, obviously, who have been paid millions.

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ICANN reveals 12 more data breaches

Kevin Murphy, November 20, 2015, Domain Registries

Twelve more new gTLD applicants have been found to have exploited a glitch in ICANN’s new gTLD portal to view fellow applicants’ data.
ICANN said last night that it has determined that all 12 access incidents were “inadvertent” and did not disclose personally identifiable information.
The revelation follows an investigation that started in April this year.
ICANN said in a statement:

in addition to the previous disclosures, 12 user credentials were used to access contact information from eight registry operators. Based on the information collected during the investigation it appears that contact information for registry operators was accessed inadvertently. ICANN also concluded that the exposed registry contact information does not appear to contain sensitive personally identifiable information. Each of the affected parties has been notified of the data exposure.

The glitch in question was a misconfiguration of a portal used by gTLD applicants to file and view their documents.
It was possible to use the portal’s search function to view attachments belonging to other applicants, including competing applicants for the same string.
Donuts said in June that the prices it was willing to pay at auction for gTLD string could have been inferred from the compromised data.
ICANN told compromised users in May that the only incidents of non-accidental data access could be traced to the account of Dirk Krischenowski, CEO of dotBerlin.
Krischenowski has denied any wrongdoing.
ICANN said last night that its investigation is now over.

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ICANN reveals $1m of not-lobbying lobbying expenses

Kevin Murphy, November 20, 2015, Domain Policy

ICANN has revealed how much it has spent so far on a few controversial professional services firms that have been accused of “lobbying” the US government on behalf of the organization.
It said today that between July 2015 and September 2015 it spent $1,070,438 on six companies providing “Education/Engagement” services related to the transition of IANA from US government oversight.
Two of the payees are consulting firms run by former high-level US officials.
One is Albright Stonebridge Group LLC, founded by Clinton-era secretary of state Madeleine Albright.
The other is Rice Hadley Gates LLC, which counts W-era officials Condoleeza Rice, Stephen Rice and Robert Gates as its principles.
The $1 million figure also includes payouts to PR firm Edelman, which has been working with ICANN for as long as I can remember, a video production company, and two other consultants.
It’s substantially less than the $2.4 million spend estimated by Kieren McCarthy, whose public-forum questions at the last two ICANN meetings and subsequent The Register article seem to be responsible for the latest disclosures.
McCarthy, in heated public clashes with ICANN CEO Fadi Chehade, had argued that these payouts were essentially “lobbying” expenses that had not been disclosed because they fall into a “loophole” in US regulations that require lobbyists to disclose their clients.
ICANN said it spent $765,829 on external lobbying services — both related to the IANA transition and not — over the same period.
Its in-house lobbyist, James Hedlund, has separately disclosed a spend of $890,000 over the period.
McCarthy had argued that ICANN was trying to hide the true extent of its lobbying, because it’s trying to make a case with US authorities for ICANN the organization that is at odds with what the community-led IANA transition process is trying to achieve.
Today’s disclosures show that ICANN spent $4,809,949 — almost half of its transition-related professional services spend — on the two law firms that have been advising the two volunteer groups developing the IANA transition proposals.
It spent a more modest $1,150,213 on its own legal advisers, Jones Day.

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English beats Portuguese in $2.2m .hotels auction

Kevin Murphy, November 19, 2015, Domain Registries

Booking.com has won the right to operate .hotels after an auction concluded a protracted fight over the gTLD.
In an ICANN-run auction yesterday, Booking.com prevailed with a winning bid of $2.2 million.
Its sole competitors was Travel Reservations (formerly Despegar Online), which had applied for the Portuguese word .hoteis.
In 2012, a String Similarity Review panel concluded that .hotels and .hoteis look too similar to coexist, due to the likelihood of confusion between I and l in sans-serif fonts.
Neither applicant agreed with that decision, knowing that it would result in a expensive auction, and Booking.com filed a Request for Reconsideration and then, in March 2013, an Independent Review Process complaint.
After two years, it lost the IRP. But the panel said it had “legitimate concerns” about the fairness of the SSR process and ordered ICANN to pay half of its costs.
Now, Booking.com has had to fork out another $2.2 million for the string.
That’s not particularly expensive as ICANN-auctioned gTLDs go. Eight of the 13 other strings ICANN has auctioned have sold for more.
ICANN’s auction proceeds to date now stands at $63,489,127, which is being held in a separate bank account for purposes yet to be determined.

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How one registrar allegedly dodges ICANN Compliance

Kevin Murphy, November 17, 2015, Domain Registrars

A Chinese registrar has been accused by ICANN of playing games to avoid complying with Whois policy.
In a breach notice from ICANN Compliance last week, Beijing-based 35 Technology is told that it has failed to verify Whois records as required by its accreditation agreement.
The domain in question was shoesbbalweb.com, which DomainTools’ archived screenshots show was once used to sell branded running shoes.
I understand that 35 is believed to have suspended the domain when ICANN first referred a Whois accuracy complaint to it.
It is then said to have un-suspended the domain, without any change to the Whois record, as soon as ICANN closed the complaint.
The breach notice (pdf) instructs 35 to:

Provide records and information demonstrating that 35 Technology took steps to verify and validate the Whois information of the domain name since 23 March 2015, or provide ICANN with an explanation why the domain name suspension was removed without verifying and validation Whois information

The switcheroo appears to have been brief enough that its suspended state was not recorded by DomainTools.
ICANN has a monitoring program, however, that randomly spot-checks previously complained-about domains for ongoing compliance.
The registrar, which does business at 35.com, is not tiny. It had over 450,000 domains under management, in legacy gTLDs and a handful of Chinese-script new gTLDs, at the last count.
It has until the end of the month to explain itself or risk termination.

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