GoDaddy did not cybersquat the Oscars, court finds

In a landmark decision, a US court has ruled that GoDaddy’s practice of parking unused domains with Google advertising does not count as cybersquatting.
The Academy of Motion Picture Arts and Sciences, which runs the annual Oscars awards, sued the registrar five years ago after seeing that GoDaddy had parked hundreds of names containing its mark.
Under UDRP, registrar parking is controversially often taken as a sign of the registrants bad faith by panelists.
But the California court ruled that GoDaddy’s actions did not amount to trademark infringement due to the unique circumstances of the case.
GoDaddy did not select the advertisements — Google’s algorithms did — nor did it manually review which domains were being parked.
Domain Name Wire has a pretty good breakdown of the key points in the 129-page ruling.
What’s going to be interesting is whether UDRP panelists — which sometimes take their cues from US legal precedent — will start to adjust to view registrar parking in a more benign way when judging registrant bad faith.

1 Comment Tagged: cybersquatting, godaddy, oscars, trademarks

ICANN throws lifeline to flopping new gTLDs

New gTLD registries with lower than expected sales will now be able to reduce the amount of their “failure bond”.
ICANN has introduced a new Continued Operations Instrument Amendment Service, which will enable registries to raise or lower the amount of their COI depending on how business is going.
A COI is a letter of credit or cash in escrow that registries must secure in order to fund three years of emergency operations in the event that their businesses fail.
The amount of the COI is calculated from sales projection and ranges from $18,000 (for under 10,000 names) to $300,000 (over 250,000 names).
Let’s face it, at the moment the amendment service must surely be targeted largely at companies that over-estimated their future sales and secured a COI much larger than they needed.
If they’ve escrowed cash, the new service will allow some of that money to be freed up to spend on more useful activities.
ICANN said that if it determines that a registry has under-projected its sales, it will be able to refer it to the new service in order for the COI to be increased.
Currently, only four new gTLDs have over 250,000 names under management, judging by zone files.

2 Comments Tagged: coi, ICANN, new gTLDs

Retail sales see CentralNic over double revenue

CentralNic saw a huge 171% increase in revenue and a tripling of billings in the first half of the year, based on its newly acquired retail business and the sale of premium names.
For the six months to the end of June, the London-based firm saw revenue of £4.4 million ($6.8 million) compared to £1.6 million ($2.5 million) a year earlier.
It moved into profit during the period, netting £287,000 ($442,000) after tax compared to a loss of £599,000 in the 2014 period.
CentralNic broke down its numbers into segments, showing that its new business areas were responsible for most of the growth, while the core registry business was relatively slow.
Registry was up 13% to £1.6 million ($2.5 million).
The new registrar business, which is lead by its $7.5 million Internet.bs acquisition, leaped from £180,000 to £1.8 million (£2.8 million), while its premium name sales business was £1.1 million compared to a negligible £50,000 a year earlier.
The company noted in a statement that Google was the first “megabrand” to use a .xyz domain name and expressed optimism that this may increase awareness of new gTLDs in future.
CentralNic is the second-largest new gTLD back-end, as measured by registration volume, largely due to its .xyz contract.
It also acts as back-end for .online, which left the blocks very quickly earlier this month, racking up over 57,000 names so far.

Comment Tagged: .xyz, centralnic, earnings

Neustar shoots the corpse of .kids.us

The ill-conceived, barely used .kids.us domain is to stay dead, Neustar confirmed last night.
The .us registry operator said that its Stakeholder Council met August 17 and:

carefully considered the report on the kids.us domain and unanimously recommended that the requirement be suspended for the life of the .us contract.

Neustar had been forced into making a call about reintroducing .kids.us by its current .us contract, which it signed in March 2014.
One October 2014 expert report and May 2015 comment period later, and the decision has been made to keep the idea suspended.
.kids.us was introduced via US legislation as a way to make politicians look like they were doing something create a friendly space for the under 13s.
But the zone wound up with reg numbers that make new gTLDs look popular, so the decision was made in 2012 to kill it off.
Neustar’s .us contract lasts another two to four years, and that’s how long the suspension will last, at least.

3 Comments Tagged: .kids.us, .us, neustar

ICANN just gave a company a new gTLD for free

The Tor Project Inc, a Massachusetts non-profit software maker, just got a new gTLD reserved for its own exclusive use, by ICANN, for free.
Tor did this without engaging in the ICANN new gTLD program, paying any ICANN application fees, or following any of the rules in the ICANN Applicant Guidebook.
It basically circumvented the entire ICANN process, and it only took six months from asking.
Neat trick, right?
Tor develops the software that creates the Tor “anonymity network” used by people who wish to obfuscate their internet usage (legal or otherwise) by routing their traffic via a series of proxies or relays.
The free software, which plugs into browsers, uses meaningless, hashed “.onion” domains because the routing method is known as “onion routing”.
IANA, an ICANN department, last night placed .onion on its list of Special Use Domains, meaning it cannot be delegated to the DNS.
If anyone were to apply for it today — assuming that were possible — they’d be out of luck. It seems .onion now has the same protected status as .example and .localhost.
The reservation was made at the instruction of the Internet Engineering Task Force, which published a new Internet Draft reserving the .onion gTLD for use with Tor.
An Internet Draft is a “work in progress” standards track document with a six-month shelf life, not yet a finalized Request For Comments (RFC).
This one was written by engineers from Tor and Facebook.
The Internet Engineering Steering Group, the IETF’s coordinating body, approved the draft last week.
Of the 13 IESG members who voted on the document, the first draft of which was published six months ago, five voted “Yes”, seven offered “No Objection” and only one abstained.
The abstainer, Barry Leiba, standards guru at Huawei Technologies, wrote:

I believe the IETF shouldn’t be involved with registering special-use TLDs for things that were used outside of IETF protocols, and should not be wading into territory that belongs to ICANN. I know there are a bunch of other such TLDs that people/organizations would have us snag for them, and I very much want to avoid doing a batch of others.
That said, I well understand the deployed code involved and the importance of keeping things working in this case, and I don’t want to stand in the way. So I’m standing aside with an “Abstain” ballot.

The logic behind the reservation is that if ICANN were to delegate .onion to somebody else (for example, The Onion) there would be a risk that the improved privacy offered by Tor would be compromised.
Voting in favor of the draft, Cisco engineer Alissa Cooper wrote:

Registering this name seems warranted in light of the potential security impact. We need to make our processes work for the Internet, not vice versa.

Another affirmative vote came from Oracle engineer Ben Campbell. He wrote:

This one took some soul searching. But I think the arguments have been made, and that on the whole this registration does more good than harm.

A number of IESG members suggested that the IETF should revisit and possibly amend the RFC in which it originally granted itself the power to reserve gTLDs.
That’s RFC6761, entitled “Special-Use Domain Names”, which dates to February 2013.
RFC6761 lays out a seven-point test that a string must pass before it can be considered “special use” and thereby reserved.
The tests cover whether humans, applications and various types of DNS software are expected to handle the string differently to a regular TLD.
The RFC also notes:

The IETF has responsibility for specifying how the DNS protocol works, and ICANN is responsible for allocating the names made possible by that DNS protocol… Reservation of a Special-Use Domain Name is not a mechanism for circumventing normal domain name registration processes.

I think reasonable people could disagree on whether that’s what has just happened in the case of .onion.
Indeed, there was some discussion on the IETF’s “dnsop” working group mailing list about whether Tor was “squatting” .onion, and whether it was appropriate to reserve its chosen TLD string.
I wonder what kind of precedent this could set.
The Tor Project Inc is a Massachusetts non-profit company. It’s primarily funded by US government grants, according to its 2013 financial statements, the most recent available. It doesn’t sell .onion domains — they’re auto-generated by the software.
Part of the argument in favor of allowing the new Internet Draft is that .onion substantially pre-dates the creation of RFC6761 — it’s not an attempt to game the RFC.
Why wouldn’t that same argument apply to, for example, alternate root operator Name.Space, which has been offering hundreds of pseudo-gTLDs since 1996?
Name.Space could argue that its strings pre-date .onion by eight years, and that the security of its registrants and users could be compromised if ICANN were to delegate them to the DNS.
What about NameCoin, another alternate root provider? It also pre-dates RFC6761 and, like Tor, uses browser software to work around the DNS.
I don’t know enough about the IETF’s processes, to be honest, to say whether it would be forced to apply its .onion logic to these other namespaces. But it’s an interesting question.
And as somebody who has spent the last five years immersed in the minutiae of the rules ICANN has created to govern the allocation of words, it’s jarring to see those rules circumnavigated so completely.

11 Comments Tagged: .onion, iana, ICANN, iesg, ietf, privacy, tor, tor project

Who wants ICANN’s $60m gTLD windfall?

ICANN has opened a formal public comment period to move forward discussions on how it should spend the almost $60 million it has so far received in new gTLD auction proceeds.
It’s not yet looking for concrete suggestions on how to spend the money — this is a pre-consultation consultation — it’s only looking for comments on the principles that should be considered when discussions take place.
ICANN has so far raised $58.8 million from “last resort” new gTLD auctions. With 27 contention sets remaining, that number could go up if one or more applicants refuse to participate in private auctions.
The GNSO Council has been moving to create a Cross-Community Working Group to discuss how the money should be spent, but clashed briefly with the ICANN board, which has said it will make the ultimate decision, earlier this year.
The new paper (get it here) basically asks questions along the lines of: who should decide where the money goes? How should conflicts of interest be handled? How much third-party expert opinion should be solicited? How much say should the board have? How much outreach should there be?
Underpinning it all is the implicit problem that the longer, more detailed and more convoluted the process, the less money there will be to actually distribute at the end.
Knowing the ICANN community’s propensity for convolution, I wouldn’t be surprised if it managed to spunk the whole lot on expert advice, working group travel, lawsuits and coffee.
(Okay, I would actually be surprised, but you get my point).
The paper also includes links to about 20 spending suggestions that have been made in various public fora over the last couple of years.
Some ideas include: giving it back to the applicants, funding open source DNS software, reducing the new gTLD application fee, marketing new gTLDs to registrants, and donating it to charity.
It does not appear to be true that ICANN slipped in one of its own management’s suggestions in an attempt to funnel off new gTLD money into the unpopular NetMundial initiative, as has been alleged elsewhere today. The NetMundial suggestion referred to in the paper actually came from Danny Aerts of Swedish ccTLD manager IIS.

9 Comments Tagged: auctions, ICANN, new gTLDs

XYZ fighting red tape to serve Chinese customers

XYZ.com is trying to become one of the first non-Chinese gTLD registries to be able to sell unhindered into the Chinese market, in the face of Draconian government regulations.
The company has filed a Registry Services Evaluation Process request with ICANN — the first of its kind — that would let it use a gateway service, based in China, to comply with strict local laws on registries, registrars and registrants.
The Ministry of Industry and Information Technology regulations have been in place for a decade, but it’s only in the last year or so, in light of the new gTLD program, that China has been strictly enforcing them.
Anyone in China can buy a domain, but you need a license if you want to put up a web site, according to Gavin Brown, CTO of .xyz back-end CentralNic. Registrants also need to have their Whois information verified and validated, he said.
The problem for Chinese residents today is if they buy a domain in a TLD that is not licensed by the government, they won’t be able to obtain a license to host a web site on that domain.
The .xyz gTLD is believed to have a few hundred thousand domains registered via Chinese registrars, a substantial portion of its total.
There’s a worry that China could demand the deletion of these names and others, as it has previously in .cn, if the proper licenses have not been obtained.
Naturally, the inability to use these domains has led to a lot of pissed-off registrants. XYZ says has been receiving complaints from its registrars in the country, which in turn have been receiving complaints from their customers.
XYZ proposes to fix the problem by using a gateway service provided by ZDNS, a DNS provider based in mainland China.
Registrars in the country would maintain a separate EPP connection to ZDNS, which would act as a proxy to CentralNic’s UK-based primary EPP system.
ZDNS, which is prominently promoting its gateway service on its web site, would handle the Whois verification and also proxy the .xyz Whois lookup service, but only as it pertains to Chinese registrants and queries originating in China.
Data on non-Chinese registrants would continue to be housed with CentralNic.
ZDNS would also prevent Chinese registrants registering domains containing strings that have been banned by the government.
XYZ’s RSEP request (pdf) is currently undergoing its technical/competition review with ICANN. Assuming it passes, it would be exposed to public comment before being approved.
The RSEP states: “we are confident that the entire Internet user base of China would endorse this service and that Chinese registrars would strongly endorse this service.”
It’s the first such request to ICANN, suggesting that an awful lot of gTLDs are still not compliant with the Chinese regulations.
As of April, only 14 TLDs — all managed by China-based companies — were licensed to operate in China.

5 Comments Tagged: .college, .xyz, centralnic, china, ICANN, miit, resep, zdns

Frakes to lead Moniker

Domain industry veteran Jothan Frakes has been tapped to take over leadership of troubled US registrar Moniker.
Frakes will take over from CEO Bonnie Wittenburg.
The news emerged during the DomainFest Asia conference in Macau, at which Frakes is a speaker, overnight.
Moniker will be his first CEO gig, but he’s a bit of a jack of all trades in the industry.
Frakes has previously worked for Sedari, Minds + Machines, Oversee.net and Moniker.
He was one of the technical evaluators for the new gTLD program, subcontracted to KPMG.
For the last couple of years he’s been a key figure behind the NamesCon and DomainFest conferences.
It might be a wise hire for Moniker — Frakes is well known and well liked in the domaining community, somewhere Moniker’s reputation has suffered horribly over the last year.
Its market share has been plummeting for years, but matters were exacerbated in June 2014 with a disastrous switch to a new registration platform that was uniformly despised (read these comments) and broke everything.

9 Comments Tagged: moniker

Reddit peppers Go Daddy boss with sexism questions

Go Daddy can’t seem to shake off the legacy of its long-running, sexually suggestive TV advertising.
In an “Ask Me Anything” session on Reddit yesterday, CEO Blake Irving seemed to face more questions about sexism, women in technology and equal opportunities hiring than any other topic.
He made about 70 posts during the session, at least 10 of which related to Go Daddy’s relationship with the equally-fair sex in some way. Some Reddit users wondered aloud whether some such questions had been planted by Go Daddy sock-puppets.
The “best”-rated question on the thread addressed the company’s old TV commercials, which in the early days regularly featured scantily-clad, large-breasted women. Irving said:

The old ads helped GoDaddy build massive brand awareness in the US. They weren’t helpful to our reputation as an egalitarian provider of services though, and they didn’t do enough to tell people what we actually do. One of the first things I did at GoDaddy was pivot the advertising to reflect what we did and who we did it for. When 58% of small businesses in the US are run by women you should reflect the great work they do as small businesses. That’s what we’ve done with our ads over the past two years.

Irving joined Go Daddy in December 2012. Its ads since then have focused less and less on the prurient interest.
Irving also pointed out in one answer than a third of the company’s executive team is female.
He was also asked a number of questions about the new .ski gTLD (he was wearing a branded baseball cap in the AMA’s accompanying photograph).
Go Daddy employees also seemed to be out in force, asking multiple questions about this year’s corporate Christmas party.
When asked about the prospects for new gTLDs versus .com, Irving sat on the fence:

We’re seeing steady increases in awareness and the first instances of big global brands using the names (like abc.xyz and brand TLDs like home.barclays). We expect this to continue to drive new gTLD sales over time. For the foreseeable future, COM will likely remain the most desired name in the US and outside. It’s universally recognizable around the world. Either way, our goal is to provide the best choices available for each customer and the new gTLDs make getting the perfect name for you much more likely.

When asked “Does your burning evil raise your body temperature?”, Iriving replied:

Ummmm …. GoDaddy is an eco-conscious company, so we are firmly against practices that are harmful to the environment, including the use of malevolent forces as a fuel source. But, I do like a good bike ride to get my heart pumping.

The whole AMA can be read here.

1 Comment Tagged: go daddy

Architelos: shadiest new gTLD is only 10% shady

Disputing the recent Blue Coat report into “shady” new gTLDs, domain security firm Architelos says that the shadiest namespace is just under 10% shady.
That’s a far cry from Blue Coat’s claim earlier this week that nine new gTLDs are 95% to 100% abusive.
Architelos shared with DI a few data points from its NameSentry service today.
NameSentry uses a metric the company calls NQI, for Namespace Quality Index, to rank TLDs by their abuse levels. NQI is basically a normalized count of abusive domains per million registered names.
According to Architelos CEO Alexa Raad, the new gTLD with the highest NQI at the end of June was .work.
Today’s NameSentry data shows that .work has a tad under 6,900 abusive domains — almost all domains found in spam, garnished with just one suspected malware site — which works out to just under 10% of the total number of domains in its zone file.
That number is pretty high — one in 10 is not a figure you want haunting your registry — but it’s a far cry from the 98.2% that Blue Coat published earlier this week.
Looking at the numbers for .science, which has over 324,000 names in its zone and 15,671 dodgy domains in NameSentry, you get a shadiness factor of 4.8%. Again, that’s a light year away from the 99.35% number published by Blue Coat.
Raad also shared data showing that hundreds of .work and .science domains are delisted from abuse feeds every day, suggesting that the registries are engaged in long games of whack-a-mole with spammers.
Blue Coat based its numbers on a sampling of 75 million attempted domain visits by its customers — whether or not they were valid domains.
Architelos, on the other hand, takes raw data feeds from numerous sources (such as SpamHaus and SURBL) and validates that the domains do actually appear in the TLD’s zone. There’s no requirement for the domain to have been visited by a customer.
In my view, that makes the NameSentry numbers a more realistic measurement of how dirty some of these new gTLDs are.

Comment Tagged: .science, .work, architelos, Famous Four Media, Minds + Machines, namesentry, new gTLDs, security