Buy it or lose it? Governments could get first dibs on two-letter domains

Governments and ccTLD registries would get new rights to own two-letter domains in new gTLDs under a proposed ICANN policy.
These highly-prized domains, many of which are likely worth thousands or tens of thousands of dollars, would be subject to a mini sunrise period, under the proposal.
The so-called Exclusive Availability Pre-registration Period would be limited to those companies or government entities in charge of matching ccTLDs.
The measures are outlined in “Proposed Measures for Letter/Letter Two-Character ASCII Labels to Avoid Confusion with Corresponding Country Codes” (pdf), published by ICANN late last week.
The surprisingly succinct document outlines three things new gTLD registries must do if they want to start selling two-letter domains matching ccTLDs, which are currently restricted.
The key measure is:

Registry Operator must implement a 30-day period in which registration of letter/letter two-character ASCII labels that are country codes, as specified in the ISO 3166-1 alpha-2 standard, will be made exclusively available to the applicable country-code manager or government.

In other words, if you’re a government or company listed as the ccTLD manager here, you get 30 days of exclusive opportunity to buy the LL.example matching your ccTLD.
Until now, governments have been able to block the release of LL new gTLD domains matching their ccTLDs.
The new proposal, introduced in an attempt to settle a long-running debate about the most appropriate way to enable the release of two-character strings, appears to add a “buy it or lose it” component to existing policy.
Under the base New gTLD Registry Agreement, all two-character domains were initially reserved.
Then, in late 2014, ICANN said registries could release all letter-number, number-letter and number-number combinations.
Many registries have already released such names, some selling for thousands at auction. When Rightside released its LN/NL/NN names, some carried price tags as high as $50,000.
Letter-letter domains could also be released following a formal registry request to ICANN, but were subject to a 60-day period during which governments could object.
Almost 1,000 new gTLDs have submitted such requests, and almost all have been “partially approved”.
That means some governments objected to the release of ccTLD-matching domains. Over 16,000 unique domain names have been objected to and therefore blocked over the last year or so.
The new proposal would add an extra process under which these blocked domains could be released, with ccTLD concerns getting first rights.
Interestingly, it appears to bring ccTLD managers into the mix, rather than restricting the names simply to governments.
The Governmental Advisory Committee has been the main driving force behind demands for restrictions on LL domains, but the proposed policy appears to also extend rights to private entities.
Remember, many ccTLDs are operated independently by private companies, without local government oversight.
For example, .uk is managed by Nominet, a non-governmental entity. The UK government has blocked many uk.example domains from being registered. The new policy appears to allow either Nominet or the government to register these names.
The one-page proposal is light on some details. It does not say, for example, what happens when the government and the ccTLD manager both want the name.
In keeping with ICANN’s habit of staying out of pricing, it does not specify price caps either.
It does, however, oblige registries to ban registrants from pretending to be affiliated with the relevant government when they are not.
Governments also get to complain, and registries have to investigate, if the relevant domains are causing “confusion”, though registries do not appear to be under a strict obligation to delete or suspend domains.
The policy is open for public comment until August here.

2 Comments Tagged: cctlds, gac, ICANN, new gTLDs, two-character, two-letter

Chinese gTLD cranks up renewal prices from $18 to $100

Chinese new gTLD registry Beijing RITT-Net has said it intends to more than quintuple its registration and renewal prices.
From January 1, 2017, prices for .手机 will go up from $18 a year to $100 a year, the company said in a notice to ICANN late last month.
.手机 (.xn--kput3i) is a Chinese internationalized domain name meaning “.cell” or “.cellphone”.
The registry told ICANN:

it is our sincere hope to adjust the initial registration and renewal fees from 18 dollars to 100 dollars with the aim to keep up with the status quo of China’s domain name market and to provide registrants with better services. We wish the new price will be effective from Jan 1st, 2017.

I believe this is the biggest renewal price hike for a new gTLD registry to date.
Around 25,000 existing registrations appear to be affected, but very few registrars will have to deal with the ramifications.
According to registry reports, over 99% of its registrations were made via Beijing Innovative Linkage Technology, which does business at dns.com.cn.

1 Comment Tagged: .xn--kput3i, .手机, Beijing Innovative Linkage Technology, Beijing RITT-Net, dns.com.cn, ICANN, new gTLDs

MarkMonitor to change hands in $3.55 billion deal

MarkMonitor owner Thomson Reuters is to sell of its IP division, which includes the brand-protection registrar, to private equity in a $3.55 billion all-cash deal.
The company said it will sell its Intellectual Property & Science business Onex Corporation and Baring Private Equity Asia.
MarkMonitor is of course a small part of that division. It also includes its Web of Science, Thomson CompuMark, Thomson Innovation, MarkMonitor, Thomson Reuters Cortellis and Thomson IP Manager services.
The unit reportedly has 4,000 employees and $1 billion in annual revenue.
Thomson Reuters said it will use $1 billion of the sale price to buy back shares and the rest to pay off debts.
The company revealed plans to get rid of the unit last November. Analysts said it was not core to its growth strategy.
Thomson Reuters acquired then privately held MarkMonitor for an undisclosed sum in 2012.

1 Comment Tagged: acquisition, markmonitor, thomson reuters

.blog launch date and pricing revealed

The new gTLD .blog will go to general availability in November with a wholesale price tag of $20, it was revealed today.
The registry, Knock Knock Whois There, told registrars that sunrise will kick off August 18 and run for 60 days with a $130 price tag. Disputed sunrise domains will go to auction.
Landrush will follow for a week from November 2 with a $130 application fee and auctions for contested domains a week later.
General availability is then due to begin November 21, with a registry fee of $20.
There will be tiered pricing on reserved “premium” names.
The registry does not seem to have ruled out an Early Access Period either.
This is all fairly consistent with KKWT’s previous statements that its pricing and launch structure will be in line with current industry norms.
The registry is owned by Automattic, the company behind the WordPress blogging software and service.
It emerged as the surprise secret backer of original applicant Primer Nivel earlier this year, following a $19 million auction win.

5 Comments Tagged: .blog, automattic, kkwt, knock knock whois there, primer nivel, wordpress

GoDaddy gets its dot-brand

GoDaddy has become a new gTLD registry with the delegation yesterday of .godaddy.
It’s a dot-brand, so domain name registrations will not be made available to the general public.
In one of the shortest mission statements found in new gTLD applications, the company describes .godaddy like this:

The mission or purpose of the .GODADDY gTLD is strictly for branding protection and internal use. The gTLD .GODADDY will give visitors to any .GODADDY site the assurance that they are truly dealing with Go Daddy and not an imposter or cybersquatter.

GoDaddy has not yet gone live with its nic.godaddy site.
It’s not the first domain name firm to get its own dot-brand. Notably, Neustar and Verisign own .neustar and .verisign.
It’s not the only registrar with a dot-brand, either. France’s OVH got there first with .ovh.
GoDaddy originally applied for two other gTLDs — .home and .casa — but withdrew their applications almost immediately after a shift of company strategy.

3 Comments Tagged: delegation, dot-brands, godaddy, ICANN, new gTLDs

Most businesses don’t care about .uk domains

The majority of businesses in the UK don’t care about direct second-level .uk domains, even when the benefits are spelled out for them, according to Nominet research.
The new survey found that only 27% of businesses would “definitely” or “probably” exercise their new right to buy a .uk domain that matches their .co.uk or .org.uk name.
That number only went up to 40% after respondents had seen a brief Nominet marketing pitch, the survey found.
Another 16% said they had no plans to get their .uk, post-pitch, while 44% remained undecided.
This was the value proposition the respondents saw (click to enlarge):

Under the direct .uk policy, all registrants of third-level domains, such as example.co.uk, have the right of refusal over the matching example.uk.
If they don’t exercise that right by June 10, 2019, the matching SLDs will be unfrozen and released into the available pool.
The new Nominet research also found out that most registrants don’t even know they have this right.
Only 44% of respondents were aware of the right. That went up to 45% for businesses and down to 33% for respondents who only owned .uk domain names (as opposed to gTLD names).
A quarter of respondents, which all already own 3LD .uk domains, didn’t even know second-level regs were possible.
Of those who had already bought their .uk names, over two thirds were either parking or redirecting. Individuals were much more likely to actually use their names for emails or personal sites.
The numbers are not terribly encouraging for the direct .uk initiative as it enters into its third year.
They suggest that if something is not done to raise awareness in the next few years, a lot of .co.uk businesses could find their matching SLDs in the hands of cybersquatters or domainers.
Nominet members (registrars and domainers primarily) were quizzed about possible ways to increase adoption during a company webinar today.
Suggestions such as making the domains free (they currently cost £2.50 a year, the same as a 3LD) or bribing a big anchor tenant such as the BBC to switch were suggested.
There’s a lot of dissatisfaction among the membership about the fact that .uk SLDs were allowed in the first place.
The number of second-level .uk names has gone from 96,696 in June 2014 to to 350,088 last year to 593,309 last month, according to Nominet stats.
Over the same periods, third-level regs have been shrinking, from 10.43 million to 10.22 million to 10.08 million, .

9 Comments Tagged: .uk, cybersquatting, direct.uk, nominet

Rightside refuses Donuts’ “opportunistic” $70m gTLD offer

Rightside has rebuffed Donuts’ semi-hostile takeover attempt for its portfolio of gTLD registry contracts.
The question now is: will Donuts up the offer from the $70 million already on the table?
In a pre-markets statement today, Rightside said the offer “undervalued” the assets.
CEO Taryn Naidu is quoted as saying:

After thoughtful evaluation, Rightside’s Board has determined that Donuts’ proposal significantly undervalues Rightside’s Registry assets. We believe Donuts’ proposal is an opportunistic attempt to acquire Rightside’s valuable portfolio of domain extensions with an undervalued price and in a manner that would not be in the best interests of Rightside shareholders.

The company reckons its gTLDs will be bringing in $50 million to $75 million in revenue a year in the next three two five years, which would represent substantial growth over current levels.
It made $2.6 million from the registry business in the first quarter this year.
Donuts’ offer could be considered “opportunistic” given that there’s some shareholder dissatisfaction with Rightside’s success rate with new gTLDs today.
Activist investor J Carlo Cannell and Uniregistry CEO Frank Schilling, both of whom own small but significant chunks of Rightside, have called on the company to get rid of some of its under-performers.
By announcing the offer publicly — apparently after months of private offers — Donuts might have been trying to capitalize on this unrest.
But pissed-off investors don’t necessarily want these gTLDs sold off cheap.
Rightside has 40 new gTLDs. A $70 million offer equals $1.75 million per gTLD. That’s fair way below the average sale price for gTLDs at ICANN auction, which is $7 million (or $3 million if you take the median).
Will Donuts now increase its offer, or back away?

4 Comments Tagged: cannell, donuts, new gTLDs, rightside, uniregistry

UK cybersquatting cases flat, transfers down

The number of cybersquatting cases involving .uk domains was basically flat in 2015, while the number of domains that were transferred was down.
That’s according to Nominet’s wrap-up of last year’s complaints passing through its Dispute Resolution Service.
There were 728 DRS complaints in 2015, the registry said, compared to 726 in the year before.
The number of cases that resulted in the transfer of the domain to the complainant was down to 53%, from 55% in 2014.
That’s quite a bit lower than complainants’ success rates in UDRP. In 2015, more than 70% of UDRP cases resulted in a transfer.
Nominet reckons that the DRS saved £7.74 million ($notasmuchasitusedtobe) in legal fees last year, based on a “conservative” estimate of £15,000 per case, had the complaint gone to court instead.
More stats can be found here.

1 Comment Tagged: .uk, cybersquatting, drs, nominet, udrp

dotgay loses third .gay appeal

Death warrant or portent of impending legal action?
dotgay LLC has lost its third attempt to get ICANN to reconsider tossing its application for community priority status in the fight for the .gay gTLD.
According to ICANN, on Sunday its Board Governance Committee threw out dotgay’s third Request for Reconsideration, an attempt to give the company an unprecedented third go at the Community Priority Evaluation process.
CPEs allow community gTLD applicants to avoid expensive auctions, but dotgay has lost two primarily on the grounds that its definition of community includes people who are not gay.
Its latest RfR was pretty weak, based on a technicality about which staffers at the Economist Intelligence Unit (which carries out the CPEs) were in charge of verifying its letters of community support.
The rationale for the BGC’s determination, which still needs to be rubber-stamped by the full ICANN board, has not been published yet.
But it seems from a blog post that ICANN now expects .gay to go to auction, where there are four competing applicants in total.
ICANN does not usually publish blog posts on RfR decisions, but in the .gay case it has been keen to avoid being accused of any motivation beyond a dogged pursuit of correct procedure.
So will dotgay go quietly? It remains to be seen.
While all new gTLD applicants had to sign a release promising not to sue ICANN, .africa applicant DotConnectAfrica sued earlier this year and managed to get a sympathetic judge who seems bent on allowing the case to go to trial.

6 Comments Tagged: .gay, community, cpe, dotgay, ICANN, new gTLDs, reconsideration, rfr

Verisign to get .com for six more years, but prices to stay frozen

ICANN and Verisign have agreed to extend their .com registry contract for another six years, but there are no big changes in store for .com owners.
Verisign will now get to run the gTLD until November 30, 2024.
The contract was not due to expire until 2018, but the two parties have agreed to renew it now in order to synchronize it with Verisign’s new contract to run the root zone.
Separately, ICANN and Verisign have signed a Root Zone Maintainer Agreement, which gives Verisign the responsibility to make updates to the DNS root zone when told to do so by ICANN’s IANA department.
That’s part of the IANA transition process, which will (assuming it isn’t scuppered by US Republicans) see the US government’s role in root zone maintenance disappear later this year.
Cunningly, Verisign’s operation of the root zone is technically intermingled with its .com infrastructure, using many of the same security and redundancy features, which makes the two difficult to untangle.
There are no other substantial changes to the .com agreement.
Verisign has not agreed to take on any of the rules that applies to new gTLDs, for example.
It also means wholesale .com prices will be frozen at $7.85 for the foreseeable future.
The deal only gives Verisign the right to raise prices if it can come up with a plausible security/stability reason, which for one of the most profitable tech companies in the world seems highly unlikely.
Pricing is also regulated by Verisign’s side deal (pdf) with the US Department of Commerce, which requires government approval for any price increases until such time as .com no longer has dominant “market power”.
The .com extension is now open for public comment.
Predictably, it’s already attracted a couple of comments saying that the contract should instead be put out to tender, so a rival registry can run the show for cheaper.
That’s never, ever, ever, ever going to happen.

8 Comments Tagged: .com, iana, ICANN, registry agreement, root zone, rzma, transition, verisign