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Dot-brand gTLD guilty of domain name hijacking

Kevin Murphy, May 6, 2015, Domain Policy

Fashion retailer Mango, which owns its own dot-brand gTLD, has been found guilty of Reverse Domain Name Hijacking after allegedly doctoring evidence in a .uk cybersquatting case.
The company, which runs .mango, lost a Nominet Dispute Resolution Service complaint against New Zealand-based domain investor Garth Piesse over mango.co.uk and mango.uk.
It’s only the sixth RDNH finding in 13 years of DRS history.
Mango tried to buy the domain using a pseudonym and, when Piesse asked for “six figures”, filed the DRS instead.
Piesse claimed in what appears to have been a well-argued defense that the person attempting to buy the domain on Mango’s behalf did not identify Mango as the would-be buyer.
Further, he claimed that Mango deliberately tried to hide this fact from the DRS panel by scrubbing its negotiator’s email address from evidence it submitted.
While DRS panelist Tim Brown did not agree that this omission alone was enough to find RNDH, he agreed that Mango did not have “entirely clean hands”. He ruled:

The sequence of events in the present case appears to show that the Complainant attempted to buy from the Respondent. When these negotiations failed the Complainant started proceedings under the DRS. As I have noted, the Complainant has relied on bare assertion and has provided a paucity of evidence to support its arguments.
Even a cursory reading of the Policy, Procedure and extensive guidance on Nominet’s website would quickly show that a matter concerning a clearly generic, dictionary term would require a higher standard of argument and evidence than is perhaps common. That the Complainant has failed to come anywhere close to providing sufficient argument or evidence is, in my view, strongly indicative that the Complainant pursued this dispute in frustration at the Respondent’s unwillingness to sell for a price it was willing to pay, rather than because of the merits of its position in terms of the Policy’s requirements.
I conclude that the Complainant brought a speculative complaint in bad faith in an attempt to deprive the Respondent of the Domain Names. I therefore determine that the Complainant has engaged in Reverse Domain Name Hijacking.

Spain-based Mango has owned its trademarks for well over a decade, and Piesse only got his hands on the domains in question in 2013 and 2014.
Piesse, who owns about 18,000 domains, was able to show that Mango the brand is unheard of in New Zealand and that he has a track record of buying fruit-based .uk domain names.

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Whois privacy reforms incoming

Kevin Murphy, May 6, 2015, Domain Policy

Whois privacy services will become regulated by ICANN under proposals published today, but there’s a big disagreement about whether all companies should be allowed to use them.
A working group has released the first draft of its recommendations covering privacy and proxy services, which mask the identity and contact details of domain registrants.
The report says that P/P services should be accredited by ICANN much like registrars are today.
Registrars should be obliged to disclose which such services they operate or are affilated with, presumably at the risk of their Registrar Accreditation Agreement if they do not comply, the report recommends.
A highlight of the paper is a set of proposed rules governing the release of private Whois data when it is requested by intellectual property interests.
Under the proposed rules, privacy services would not be allowed to reject such requests purely because the alleged infringement deals with the content of a web site rather than just the domain.
So the identity of a private registrant of a non-infringing domain would be vulnerable to disclosure if, for example, the domain hosted bootleg content.
Registrars would be able to charge IP owners a nominal “cost recovery” fee in order to process requests and would be able to ignore spammy automated requests that did not appear to have been manually vetted.
There’d be a new arbitration process that would kick in to resolve disputes between IP interests and P/P service providers.
The 98 pages of recommendations (pdf) were drafted by the Generic Names Supporting Organization’s Privacy & Proxy Services Accreditation Issues Working Group (PPSAI) and opened for public comment today.
There are a lot of gaps in the report. Work, it seems, still needs to be done.
For example, it acknowledges that the working group didn’t reach any conclusions about what should happen when law enforcement agencies ask for private data.
The group was dominated by registrars and IP interests. There was only one LEA representative and only one governmental representative, and they participated in a very small number of teleconferences.
There was also a sharp division on the issue of who should be able to use privacy services, with two dissenting opinions attached to the report.
One faction, led by MarkMonitor and including Facebook, Domain Tools and fake pharmacy watchdog LegitScript, said that any company that engages in e-commerce transactions should be ineligible for privacy, saying: “Transparent information helps prevent malicious activity”.
Another group, comprising a handful of non-commercial stakeholders, said that no kind of activity should prevent you from registering a domain privately, pointing to the example of persecuted political groups using web sites to raise funds.
There was a general consensus, however, than merely being a commercial entity should not alone exclude you from using a P/P service.
Currently, registrar signatories to the 2013 RAA are bound by a temporary P/P policy that is set to expire January 2017 or whenever the P/P accreditation process starts.
There are a lot of recommendations in the report, and I’ve only touched on a handful here. The public comment period closes July 7.

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Most ICANN new gTLD breaches were over a year ago

Almost three quarters of the security breaches logged against ICANN’s new gTLD portal occurred over a three-month period in early 2014, DI can reveal.
Almost every incident of a new gTLD applicant coming across data they weren’t supposed to see — 322 of the 330 total — happened before the end of October last year, ICANN told DI.
Most — 244 of the 330 — happened before April 30 last year.
The first breach, discovered by an independent audit of the portal, was January 22 2014.
ICANN says it was first notified of there being a problem on February 27, 2015.
The improper data disclosures were announced by ICANN last week.
As we reported, a simple configuration error by ICANN in third-party software allowed users of the Global Domains Division portal — all new gTLD applicants — to view confidential data belonging to other applicants.
Documents revealed could have included sensitive financial projections and registry technical details.
My first assumption was that the majority of the incidents — which have been deliberate or accidental — were relatively recent, but that turns out not to be the case.
In fact, if anyone did download data they weren’t supposed to see, most of them did it over a year ago.
ICANN has been notifying applicants and registries about whether their own data was compromised and expects to have told each affected applicant which other applicants could have seen their data before May 27.
Ninety-six applicants and 21 registries were affected.

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.porn and .adult sunrises net around 8,000 sales

The sunrise periods for .porn and .adult netted just shy of 4,000 domains per TLD, according to ICM Registry.
The company said .porn received 3,995 registrations while .adult trailed slightly with 3,902.
Those numbers are a combination of regular Trademark Clearinghouse sunrise registrations and Sunrise B registrations.
The ICANN-mandated sunrise periods ended April 1 and were followed by unique Sunrise B periods, during which anyone who bought a .xxx block in 2011 could register the matching new gTLD names.
This time, however, Sunrise B domains actually do resolve.
I believe the the Sunrise B phases accounted for something like 1,500 names apiece.
The previous high bar for 2012-round new gTLD sunrises was .london, with just over 800 registrations.
While .porn and .adult may be record breakers for this round, sales were just a twentieth of the levels seen when .xxx launched in 2011 — about 80,000 names were defensively registered back then.
Later this week, ICM will kick off another launch phase — Domain Matching — during which anyone who owned a .xxx domain prior to April 30 can get their matching .porn and .adult names.
General availability is scheduled for June 4.

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“Naked aggression” or genius? .sucks trolls trademark event

.sucks registry Vox Populi has annoyed intellectual property interests by trolling a trademark conference with a .sucks mobile billboard.
As tweeted by corporate registrar Marksmen, which described the move as “naked aggression”, attendees to the International Trademark Association conference in San Diego, California saw this roaming the streets this weekend.


Vox Pop also has a booth at INTA 2015.
The company says .sucks is an opportunity for brands to engage more effectively with their customers, but most IP interests think it looks more like extortion.
The high annual $2,000+ sunrise fee has a lot to do with that, as does the special “Sunrise Premium” list of trademarks that will always incur similarly high prices.
Update: According to a reader, who submitted this photo, Vox Pop is also giving out free .sucks-branded condoms.

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Dumb ICANN bug revealed secret financial data to new gTLD applicants

Kevin Murphy, April 30, 2015, Domain Registries

Secret financial projections were among 330 pieces of confidential data revealed by an ICANN security bug.
Over the last two years, a total of 19 new gTLD applicants used the bug to access data belonging to 96 applicants and 21 registry operators.
That’s according to ICANN, which released the results of a third-party audit this afternoon.
Ashwin Rangan, ICANN’s new chief information and innovation officer, confirmed to DI this afternoon that the data revealed to unauthorized users included private financial and technical documents that gTLD applicants attached to their applications.
It would have included, for example, documents that dot-brand applicants reluctantly submitted to demonstrate their financial health.
But Rangan said it was not clear whether the glitch had been exploited deliberately or accidentally.
While saying the situation was “very deeply regrettable”, he added that applicant data deemed confidential when it was submitted back in 2012 may not be considered as such today.
The vulnerability was in ICANN’s Global Domains Division Portal, which was taken offline for three days at the end of February and early March after the bug was reported by a user.
Two outside consulting firms were brought in to scan access logs going back to the launch of the new gTLD portal back in April 2013.
What they found was that any user of the portal could access any attachment to any application, whether it belonged to them or a third-party applicant, simply by checking a radio button in the advanced search feature.
It was a misconfiguration by ICANN of the Salesforce.com software used by GDD, rather than a coding error, Rangan said.
“The public/private data sharing setting can be On or Off and here it was set to On,” he said.
On 330 occasions, starting “in earliest part of when the portal first became available” two years ago, these 19 users would have been exposed to data they were not supposed to be able to see.
The audit has been unable to determine whether the users actually downloaded confidential data on those occasions.
What’s confirmed is that only new gTLD applicants were able to use the glitch. No third-party hackers were involved.
The 19 users who, whether they meant to or not, exploited this vulnerability are now going to be sent letters asking them to explain themselves. They’ll also be asked to delete anything they downloaded and to not share it with third parties.
Before May 27, ICANN will also contact those applicants whose secret data was exposed, telling them which rival applicants could have seen it.
Rangan said that there have been almost 600,000 GDD sessions in the last two years, and that only 36 of them revealed data to unauthorized users.
“It’s a small fraction,” he said. “The question is whether they just stumbled across something they were not even aware of… Looking at the log files it is not clear what is the case.”
ICANN seems to be giving the 19 users the benefit of the doubt so far, but still wants them to explain their actions.
As CIO, Rangan was not able to comment on whether the breach exposes ICANN or applicants to any kind of legal liability.
It’s not the first time sensitive applicant data has been exposed. Back in 2012, DI discovered that the home addresses of the directors of applicants had been published, despite promises that they would remain private.
At the time of the original GDD portal misconfiguration, ICANN had noted security expert Jeff “The Dark Tangent” Moss as its chief security officer.
Earlier this week, ICANN’s board of directors authorized expenses of over $500,000 to carry out security audits of ICANN’s code.

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.xyz dismisses own ads as “puffery”

Kevin Murphy, April 30, 2015, Domain Registries

XYZ.com has dismissed its own claim that .xyz is the “next .com” as “mere opinion or puffery”, in an attempt to resolve a false advertising lawsuit filed by Verisign.
Attempting to get the lawsuit resolved without going to the expense of a full trial, the registry has filed with the court a lengthy, rather self-deprecating deconstruction of its own marketing.
It says among other things that the blog posts and videos at issue are “not statements of fact but rather mere puffery, hyperbole, predictive, or assertions of opinion”.
Verisign sued XYZ and its CEO, Daniel Negari, in December, claiming that the video embedded below reflects “a strategy to create a deceptive message to the public that companies and individuals cannot get the .COM domain names they want from Verisign, and that XYZ is quickly becoming the preferred alternative.”

Last week XYZ filed a motion asking the court to rule on the pleadings only, meaning it would not go to trial. It appears to be an effort by the smaller company to avoid any more unnecessary legal fees.
“Verisign is attempting to litigate XYZ out of business complaining about a vanity video, website blog posts, and opinions stated to a reporter,” the motion says.
The document goes to great lengths to argue that the video, blog posts and interviews given by Negari are not “statements of fact”, but rather mere “hyperbole”.
It even goes to the extent of arguing that its ads make Verisign look good:

XYZ’s claim to be “the next .com” could not plausibly harm Verisign’s commercial interest because the claim reinforces that Verisign’s .COM is the most-popular, most-successful domain. Perhaps consumers think that since .XYZ is the next .COM, they should not buy other new domains. Perhaps consumers buy more .COM domains because XYZ has promoted Verisign as the market leader. But Verisign suffering any injury as a result of XYZ’s statements is implausible.

Some might view the old Honda in the video with the “COM” license plate as trusty and reliable, and the Audi sports car with “XYZ” as high maintenance, impracticable, and too trendy.

Verisign may or may not win the lawsuit, but it does seem to have succeeded in getting XYZ to cut the balls off of its own marketing.
Verisign has not yet filed a response to XYZ’s motion, which will be heard in court May 8.
You can download the PDF of the motion here.

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DomainFest to hold one-day event this June

Kevin Murphy, April 30, 2015, Domain Sales

DomainFest is heading to Bulgaria for a special one-day conference a little over a month from now.
NamesCon, which now owns the DomainFest brand, plans to hold the event June 3 at the Kempinski Hotel Marinela in Sofia.
It will be sandwiched between the fifth annual DomainForum — June 1-2 in Varna and Ruse — and EuroDIG — and internet governance conference June 4-5 also at the Kempinski.
The focus of the event appears to be very much on the domain investment side of the industry.
Tickets for DomainFest will be €125 ($140) on the door, but can be acquired for the early-bird price of €49 until the end of April (that is, today). Dinner costs another €40.
DomainForum, as ever, will be free to attend.
The schedule, which has not yet been finalized, can be found here. Tickets for DomainFest and DomainForum can be obtained here.
DI may attend.

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GoDaddy getting out of NASCAR, whatever that is

Kevin Murphy, April 30, 2015, Domain Registrars

GoDaddy is dropping its sponsorship of a NASCAR racing car, largely because Johnny Foreigner doesn’t have a clue what NASCAR is.
The company has been sponsoring Stewart-Haas Racing and driver Danica Patrick since 2007; Patrick is a spokesperson appearing in many commercials.
But now GoDaddy says it is dropping the deal at the end of the 2015 season in order to diversify its marketing in growth markets overseas.
It is currently negotiating to keep on Patrick as a spokesperson separately.
NASCAR is a pretty US-centric pass-time, with little recognition overseas. I recall seeing Patrick’s face on a London Underground billboard a few years ago and wondering what on Earth Go Daddy was thinking.
GoDaddy chief marketing officer Phil Bienert said in a press release yesterday:

NASCAR has been a tremendous domestic platform to help us achieve an 81 percent aided brand awareness domestically, but at this stage, we need a range of marketing assets that reach a more globally-diverse set of customers.

GoDaddy said it has presence in 37 countries in 17 languages and “is positioning to fortify its presence in Asia by the end of this year.”
From 2010 to 2012, the company had an Asia-based celebrity spokesperson in actress/singer/model DI.
In related news, I’ve just noticed that GoDaddy no longer uses a space between Go and Daddy in its brand, so DI’s house style will be adjusted accordingly.

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.xyz helps CentralNic double its revenue

Kevin Murphy, April 28, 2015, Domain Registries

CentralNic’s revenue almost doubled in 2014, helped by the launch of new gTLDs.
The UK-based registry today reported annual operating profit of £497,000 ($759,000), down from £694,000 ($1.05 million) in 2013, on the back of revenue up 99% at £6.06 million ($9.25 million).
Billings– money taken but not yet recorded as revenue — was up a whopping 154% at £9.89 million ($15.1 million).
Part of the reason for the growth was the launch of new gTLDs last year.
CentralNic acts as the registry back-end for eight TLDs that launched last year, including runaway volume leader .xyz, which has about 880,000 domains in its zone file today.
Another big contributor was Internet.bs, the Bahamas-based registrar that CentralNic acquired for $7.5 million last year.
The registrar had about 400,000 legacy gTLD domains under management at the end of the year, according to DI’s records.
Both new gTLDs and Internet.bs started contributing to revenue in the second half of the year.
CentralNic also said that its new “enterprise” division, which sells premium domains and offers consulting and software, was a growth factor.
CEO Ben Crawford told the markets that the new gTLD opportunity has so far been “softer” than expected.

Only a small number of retailers received their accreditations from ICANN to sell domains under the new TLDs in 2014, and a lack of public awareness pending the launches of the “superbrand TLDs” such as .google, .apple and .sony, meant that the market for new TLDs in 2014 was softer than had been projected by ICANN and other industry experts. It was essentially limited to domain investors and other early adopters.

Opinion in split in the industry on how much reliance can be put on what Crawford calls “super-brands” to do the heavy lifting when it comes to public awareness of new gTLDs.

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