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Domain Incite is five years old today

Kevin Murphy, February 27, 2015, Gossip

Five years ago Domain Incite published its first story, with the introductory line “Let’s start at the beginning, shall we?”
I went on to describe how I’d registered the name domainincite.com and thrown up a live, resolving web site in less than one hour.
But that wasn’t quite the beginning.
What I neglected to mention were the eight hours I spent sitting with my father that weekend, brainstorming domains that captured the slightly acerbic tone I expected to use and which were also available at a reasonable price.
That was also when we came up with the tag line “domainincite.com n. because all the good domains were taken”, which has sat at the top of DI’s “About” page since day one.
Dad died last October, and I’d be lying if I said I’ve had an easy time getting over it.
Watching somebody you love dying of cancer is, needless to say, traumatic. Many readers will understand this all too well.
It can leave you with their final weeks indelibly at the forefront of your memories, whereas you should be remembering the enjoyable times you spent together.
I wouldn’t dream of blaming Dad for my eventual choice of domain, but we had fun collaborating on its conception.
That was something we did together, which gives DI’s birthday this year a bittersweet flavor for me.

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The IANA transition in a nutshell

Kevin Murphy, February 27, 2015, Domain Policy

The US plan to remove itself from its unique DNS oversight role is about creating a coalition of nations to thwart attempts by Russia and other “authoritarian” countries to increase government control of the internet.
That’s according to Larry Strickling, assistant secretary at the US National Telecommunications and Information Administration, who delivered a beautifully succinct explanation to confused senators at a hearing in Washington DC this week.
Despite unnecessary diversions into issues such as net neutrality and copyright protection — which I’m sure was not at all due to senators trying to score points with their corporate paymasters — the Commerce Committee hearing was surprising well-informed and not nearly as angry as it could have been.
Senators, mostly Republicans, reiterated their concerns that for the US to give up its role in the IANA functions contract could invite a takeover of ICANN by unfriendly nations such as China and Russia, thereby harming internet freedom.
At one point, Strickling was asked by a senator: “If there’s not a problem, what are we trying to fix here?”
His answer was one the best explanations of the political back-story of the transition that I’ve heard, so I’m going to quote it in full here.

There has been a problem, sir. At the end of 2012 when the world’s governments got together in Dubai for the ITU WCIT — World Conference on International Telecommunications — you had around 80 countries who voted to say the ITU needs to be more involved in internet governance. These were largely countries in the developing world siding with the more authoritarian regimes.
Part of the impetus for this was the continued irritation that many governments have, that has been exploited by authoritarian countries, that the United States with its special role with ICANN is in a position to control the internet in these developing counties and to turn it off in these countries and to otherwise interfere with the ability of countries to manage their own affairs with respect to the internet.
After this [IANA transition] announcement was made the next two large international meetings at which governments came together you saw a major change in position among the developing countries. We didn’t see any change in position from the authoritarian countries — and you’re not, they’re not going to change their views on this. But the key to succeeding in this on the global stage is to bring the rest of the world along with us, and that’s what we saw at the NETmundial conference in Brazil last April where the only countries who spoke out against the multi-stakeholder model of internet governance were Russia and Cuba.
We then flash forward to the ITU plenipotentiary conference in Busan last November and again you had Russia with the same proposals it’s been making for 10 years: that these functions ought to be transferred to the ITU and managed by governments. And that was beaten back by a coalition of developed and developing countries. So we’ve seen immediate results, or significant results, by the basis of our having been able to take this issue off the table for these countries, to get them to look at what’s really best for them without this overhang of a US role that was unique among governments and which was a source of irritation to governments and was being exploited to our detriment by foreign governments.
The fact of the matter is that the role we play with respect of the IANA functions is a clerical role. It’s truly stewardship. As I said before, we don’t provide any oversight of the policy judgments that ICANN and the multi-stakeholder community make. We participate as a government in the Governmental Advisory Committee, and we will continue to do that in future and will be vigorous advocates for a free and open internet.
The special role we play with respect of the IANA functions is totally administrative and clerical, yet it has been exploited by other governments — authoritarian governments — to our detriment. We’ve taken that off to the table by announcing this transition and as we complete it we will continue to see the benefits of that through the continued adoption and support for this model by the developing world.

His views were echoed by ICANN CEO Fadi Chehade more than once during the hearing, talking about how the transition process is designed to bring on board the “middle countries”, rather than already-allied nations or the fringe, minority authoritarian countries.
He cited Brazil as the key example of a government once in favor of more ITU control of the internet that is now, largely due to Chehade’s outreach and its key role in the NETmundial conference, firmly in the multi-stakeholder model camp.
The entire archived hearing can be viewed here.

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Google buys .app for over $25 million

Kevin Murphy, February 26, 2015, Domain Registries

The fiercely competed new gTLD .app has sold to Google for a record-breaking $25 million.
The company’s Charleston Road Registry subsidiary beat out 12 other applicants for the string, including Donuts, Amazon, Famous Four Media, Radix and Afilias.
The auction lasted two days and fetched a winning bid of $25,001,000, more than any other new gTLD to date.
The previous high is believed to be .blog, which I estimate sold for less than $20 million.
Because it was an ICANN-run “last resort” auction, all of the money goes into ICANN’s special auction proceeds fund, which previously stood at just shy of $35 million.
Previous ICANN auctions have fetched prices between $600,000 and $6,760,000.
Google originally proposed .app as a closed registry in which only Google and its partners could register names.
However, after the Governmental Advisory Committee pressured ICANN to disallow “closed generics”, Google changed its application to enable anyone to register.

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ICANN ditches plan to give governments more power

Kevin Murphy, February 25, 2015, Domain Policy

ICANN has quietly abandoned a plan to make it harder for its board of directors to go against the wishes of national governments.
A proposal to make a board two-thirds super-majority vote a requirement for overruling advice provided by the Governmental Advisory Committee is now “off the table”, ICANN CEO Fadi Chehade told a US Senate committee hearing today.
The threshold, which would replace the existing simple majority requirement, was proposed last August as a result of talks in a board-GAC working group.
At the time, I described the proposal as a “fait accompli” — the board had even said it would use the higher threshold in votes on GAC advice in advance of the required bylaws change.
But now it’s seemingly gone.
The news emerged during a hearing of the Senate Committee on Commerce, Science, and Transportation today in Washington DC, which was looking into the transition of US oversight of ICANN’s IANA functions to a multi-stakeholder process.
Asked by Sen. Deb Fischer whether the threshold change was consistent with ICANN’s promise to limit the power of governments in a post-US-oversight world, Chehade replied:

You are right, this would be incongruent with the stated goals [of the IANA transition]. The board has looked at that matter and has pushed it back. So it’s off the table.

That came as news to me, and to others listening to the hearing.
The original plan to change the bylaws came in a board resolution last July.
If it’s true that the board has since changed its mind, that discussion does not appear to have been documented in any of the published minutes of ICANN board meetings.
If the board has indeed changed its mind, it has done so with the near-unanimous blessing of the rest of the ICANN community (although I doubt the GAC was/will be happy).
The public comment period on the proposal attracted dozens of responses from community members, all quite vigorously opposed to the changes.
The ICANN report on the public comments was due October 2, so it’s currently well over four months late.
UPDATE 1: An ICANN spokesperson just got in touch to say that the board decided to ditch its plan in response to the negative public comments.
UPDATE 2: Another ICANN spokesperson has found a reference to the board’s U-turn in the transcript of a meeting between the ICANN board and GAC at the Los Angeles public meeting last October. A brief exchange between ICANN chair Steve Crocker and Heather Dryden, then chair of the GAC, reads:

DRYDEN: On the issue of the proposed bylaw changes to amend them to a third — two-thirds majority to reject or take a decision not consistent with the GAC’s advice, are there any updates there that the Board would like to — the Board or NGPC? I think it’s a Board matter? Yes?
CROCKER: Yes.
Well, you’ve seen the substantial reaction to the proposal.
The reaction embodies, to some extent, misunderstanding of what the purpose and the context was, but it also is very instructive to all of us that the timing of all this comes in the middle of the broader accountability question.
So it’s — I think it’s in everyone’s interest, GAC’s interest, Board’s interest, and the entire community’s interest, to put this on hold and come back and revisit this in a larger context, and that’s our plan.

So it seems that the ICANN board did tip its hand a few months ago, but not many people, myself included, noticed.

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Why you can’t register emojis in gTLDs

Kevin Murphy, February 25, 2015, Domain Tech

The popular “emoji” smiley faces are banned as gTLD domain names for technical reasons, according to ICANN.
Emojis are a form of emoticon that originated on Japanese mobile networks but are now used by 12-year-old girls worldwide due to their support on Android and iPhone operating systems.
CokeIt emerged last week that Coca-Cola has registered a bunch of smiley-face domain names under .ws, the Samoan ccTLD, for use in an billboard advertising campaign in Puerto Rico.
.ws was selected because it’s one of only a few TLDs that allow emojis to be registered. Coke is spinning its choice of TLD as an abbreviation for “We Smile”.
This got me thinking: would emojis be something new gTLD registries could start to offer in order to differentiate themselves?
Coke’s emoji domains, it turns out, are just a form of internationalized domain name, like Chinese or Arabic or Greek.
Emoji symbols are in the Unicode standard and could therefore be converted to the ASCII-based, DNS-compatible Punycode under the hood in web browsers and other software.
One of Coke’s (smiley-face).ws domain names is represented as xn--h28h.ws in the DNS.
Unfortunately for gTLD registries, ICANN told DI last night that emojis are not permitted in gTLDs.
“Emoticons cannot be used as IDNs as these code points are DISALLOWED under IDNA2008 protocol,” ICANN said in a statement.
IDNA2008 is the latest version of the IETF standard used to define what Unicode characters can and cannot appear in IDNs.
RFC 5892 specifies what can be included in an IDNA2008 domain name, eliminating thousands of letters and symbols that were permissible under the old IDNA2003 standard.
These characters were ostensibly banned due to the possibility of IDN homograph attacks — when bad guys set up spoof web sites on IDNs that look almost indistinguishable from a domain used by, for example, a bank or e-commerce site.
But Unicode, citing Google data, reckons symbols could only ever be responsible for 0.000016% of such attacks. Most homograph attacks are much simpler, relying on for example the visual similarity of I and l.
Regardless, because IDNA2008 only allows Unicode characters that are actually used in spoken human languages, and because gTLD registries are contractually obliged to adhere to the IDNA2008 technical standards, emojis are not permitted in gTLDs.
All new gTLDs have to provide ICANN with a list of the Unicode code points they plan to support as IDNs when they undergo pre-delegation testing. Asking to support characters incompatible with IDNA2008 would result in a failed test, ICANN tells us.
ICANN does not regulate ccTLDs, of course, so the .ws registry is free to offer whatever domains it wants.
However, ICANN said that emoji domains are only currently supported by software that has not implemented the newer IDN protocol:

Emoticon domains only work in software that has not implemented the latest IDNA standard. Only the older, deprecated version of the IDNA standard allowed emoticons, more or less by accident. Over time, these domains will increasingly not work correctly as software vendors update their implementations.

So Coke, while winning brownie points for novelty, may have registered a bunch of damp squibs.
ICANN also told us that, regardless of what the technical standards say, you’d never be able to apply for an emoticon as a gTLD due to the “letters only” principle, which already bans numbers in top-level strings.

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Crocker caught with his pants down, literally, at ICANN 52

Kevin Murphy, February 24, 2015, Gossip

Here’s your daily WTF moment, courtesy of ICANN’s official YouTube account.
If you’ve ever wanted to see ICANN chair Steve Crocker without his trousers — and let’s face it, who hasn’t? — now’s your chance.

Don’t ask. I’m just as baffled as you.

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Verisign sues .xyz and Negari for “false advertising”

Kevin Murphy, February 24, 2015, Domain Registries

Handbags at dawn!
Verisign, the $7.5 billion .com domain gorilla, has sued upstart XYZ.com and CEO Daniel Negari for disparaging .com and allegedly misrepresenting how well .xyz is doing.
It’s the biggest legacy gTLD versus the biggest (allegedly) new gTLD.
The lawsuit focuses on some registrars’ habit of giving .xyz names to registrants of .com and other domains without their consent, enabling XYZ.com and Negari to use inflated numbers as a marketing tool.
The Lanham Act false advertising lawsuit was filed in Virginia last December, but I don’t believe it’s been reported before now.
Verisign’s beef is first with this video, which is published on the front page of xyz.com:

Verisign said that the claim that it’s “impossible” to find a .com domain (which isn’t quite what the ad says) is false.
The complaint goes on to say that interviews Negari did with NPR and VentureBeat last year have been twisted to characterize .xyz as “the next .com”, whereas neither outlet made such an endorsement. It states:

XYZ’s promotional statements, when viewed together and in context, reflect 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.

As regular readers will be aware, .xyz’s zone file, which had almost 785,000 names in it yesterday, has been massively inflated by a campaign last year by Network Solutions to push free .xyz domains into customers’ accounts without their consent.
It turns out Verisign became the unwilling recipient of gtld-servers.xyz, due to it owning the equivalent .com.
According to Verisign, Negari has used these inflated numbers to falsely make it look like .xyz is a viable and thriving alternative to .com. The company claims:

Verisign is being injured as a result of XYZ and Negari’s false and/or misleading statements of fact including because XYZ and Negari’s statements undermine the equity and good will Verisign has developed in the .COM registry.

XYZ and Negari should be ordered to disgorge their profits and other ill-gotten gains received as a result of this deception on the consuming public.

The complaint makes reference to typosquatting lawsuits Negari’s old company, Cyber2Media, settled with Facebook and Goodwill Industries a few years ago, presumably just in order to frame Negari as a bad guy.
Verisign wants not only for XYZ to pay up, but also for the court to force the company to disclose its robo-registration numbers whenever it makes a claim about how successful .xyz is.
XYZ denies everything. Answering Verisign’s complaint in January, it also makes nine affirmative defenses citing among other things its first amendment rights and Verisign’s “unclean hands”.
While many of Verisign’s allegations appear to be factually true, I of course cannot comment on whether its legal case holds water.
But I do think the lawsuit makes the company looks rather petty — a former monopolist running to the courts on trivial grounds as soon as it sees a little competition.
I also wonder how the company is going to demonstrate harm, given that by its own admission .com continues to sell millions of new domains every quarter.
But the lesson here is for all new gTLD registries — if you’re going to compare yourselves to .com, you might want to get your facts straight first if you want to keep your legal fees down.
And perhaps that’s the point.
Read the complaint here and the answer here, both in PDF format.

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Chehade to face Congressional grilling this week

Kevin Murphy, February 23, 2015, Domain Policy

ICANN CEO Fadi Chehade is heading to Washington DC this week to defend plans to decouple the organization from formal US oversight in front of a potentially hostile committee of Congresspeople.
The Senate Committee on Commerce, Science, and Transportation will meet this Wednesday at 1000 local time to grill Chehade and others on the plan to remove the US government from the current triumvirate responsible for managing changes to the DNS root zone under the IANA arrangements.
He will be joined by Larry Strickling, who as head of the National Telecommunications and Information Administration is the US government’s point person on the transition, and Ambassador David Gross, a top DC lawyer formerly with the Department of State.
All three men are pro-transition, while the Republican-tilted committee is likely to be much more skeptical.
The blurb for the Wednesday hearing reads:

As the U.S. government considers relinquishing control over certain aspects of Internet governance to the private sector, concerns remain that the loss of U.S. involvement over the Internet Assigned Numbers Authority (IANA) could empower foreign powers — acting through intergovernmental institutions or other surrogates — to gain increased control over critical Internet functions.

Republicans and right-leaning media commentators have warned that handing over IANA oversight to a multistakeholder body risks giving too much power to governments the US doesn’t like, such as Russia and China.
Several bills introduced in the House and Senate over the last year would have given Congress much more power to delay or deny the transition.
An amendment to an appropriations bill approved in December prevents the NTIA from spending any taxpayer money on relinquishing its DNS root oversight role until after September 30 this year, the same day that the current IANA contract expires.
This effectively prevents a transition during the current IANA contract’s run. Strickling recently said that the NTIA is complying with this legislation, but noted that it does not prevent the agency participating in the development of the transition proposal.
ICANN community working groups are currently working on plans for ICANN oversight post-NTIA and for addressing ICANN accountability.
These documents are hoped to be ready to sent to the NTIA by July, so the NTIA will have enough time to consider them before September 30.
Strickling recently addressed this date in a speech at the State of the Net conference in Washington, saying:

I want to reiterate again that there is no hard and fast deadline for this transition. September 2015 has been a target date because that is when the base period of our contract with ICANN expires. But this should not be seen as a deadline. If the community needs more time, we have the ability to extend the IANA functions contract for up to four years. It is up to the community to determine a timeline that works best for stakeholders as they develop a proposal that meets NTIA’s conditions, but also works.

Opponents of the transition say that because the NTIA is prevented from terminating the IANA contract before October 1, the NTIA will have no choice but to extend it until September 30, 2017.
Given that 2016 is a presidential election year in the US, Barack Obama would be a private citizen again by the time the next opportunity to transition comes around, they say.
Which presidential hopeful — from either party — would not buckle if asked whether he supports a plan to let Iran run the internet? That’s the political logic at work here.
Chehade himself told the AFP news agency earlier this month that the transition would have to happen before the 2016 elections, to avoid political distractions.
I’m not so sure I agree with the premise that, due to the restraints imposed by the appropriation bill, the transition now has to happen under the next president’s administration.
In my layman’s reading of the current IANA contract, the NTIA is able to terminate it for the “convenience of the government” pretty much whenever it wants.
There’s also an option to extend the contract by up to six months. The NTIA exercised this option in March 2012 when it did not approve of ICANN’s first renewal proposals.

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Get NamesCon 2016 tickets at 80% off

Kevin Murphy, February 23, 2015, Domain Services

After its well-received 2015 show in Las Vegas last month, NamesCon has confirmed a third annual domain name conference for 2016 and is offering deeply discounted tickets for “super early birds” until the end of the month.
Until February 28, conference passes can be bought for $199. That’s an 80% discount on the regular $999 fee. No other early-bird discounts have yet been announced, but NamesCon says this is the “lowest” price the tickets are going to get.
As the event is targeted largely at domainers, NamesCon notes that tickets are non-transferable. Touts are not welcome, in other words.
The show will run from January 10 to 13 next year, in Las Vegas. The venue will be the reasonably priced Tropicana hotel for the third year in a row.
Conference producer Richard Lau said that the 2016 show will have a new sponsorship opportunity in the form of a “Meetery” on the first day.
With space for about 30 companies on small tables, the six-hour window will be “ideal for companies who do not want to man a booth for the entire conference but still want to be able to meet with all of the attendees,” Lau said.
NamesCon is also expanding the number of small tables available for sponsors that want to exhibit for the whole four days from six to 15 to 20, he said.
Tickets can be obtained through the NamesCon web site.

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.xxx boss says new gTLD registries need to “wake up”

Kevin Murphy, February 23, 2015, Domain Registries

ICM Registry president Stuart Lawley may be just weeks away from launching his second and third gTLD registries, but that doesn’t mean he has a positive outlook on new gTLDs in general.
“I think people need to wake up,” he told DI in a recent interview. “If you do the math on some of these numbers and prospective numbers, it just doesn’t stack up for a profitable business.”
“The new ‘Well Done!’ number seems to be a lot less than it was six months ago or 12 months ago,” he said.
Lawley said he’s among the most “bearish” in the industry when it comes to new gTLD prospects. And that goes for ICM’s own .porn, .sex and .adult, which are due to launch between March and September this year.
While he’s sure they’ll be profitable, and very bullish on the search engine optimization benefits that he says registrants could be able to achieve, he’s cautious about what kind of registration volumes can be expected. He said:

If you add up everybody that has ever bought a .xxx name, including the Sunrise B defensives, we have got a target market of about 250,000 names. People to go back to and say, “Look, you still have a .xxx or you had a .xxx at some stage. Therefore, we think you may be interested in buying .porn, .sex or .adult for exactly the same reasons.”
So, our expectations to sell to a whole new market outside of those quarter of a million names is probably quite limited.

Lawley said that he believes that the relatively poor volume performance of most new gTLDs over the last year will cause many registrars to question whether it’s worth their time and money to offer them.

I can see why registrars can’t be bothered. How many of these am I going to sell? Am I going to sell two hundred of them? Am I going to make five dollars per name? That’s one thousand dollars. It’s not worth it to me to put in ten thousand dollars worth of labor and effort to make one thousand dollars in revenue. So, I think that’s a challenge that many of the small lone player TLDs may face.

Lawley said he’s skeptical about the ability of major portfolio players, such as Donuts, to effectively market their hundreds of gTLDs, many of which are targeted at niche vertical markets.
He said in an ideal world a gTLD would need to spend $20 million to $30 million a year for a few years in order to do a proper PR job on a single TLD — ICM spent about $8 million to $9 million, $5.5 million of which was on US TV spots — and that’s just not economically viable given how many names are being sold.
But he added that he thinks it’s a good thing that some new gTLDs are seeing a steady and fairly linear number of daily additions, saying it might point to better long-term stability.

A lot of the TLDs that seem to be doing okay — .club for argument’s sake and several others in that ilk — seem to be doing their three hundred domains per day ADD, or 32 or 12 or whatever the number is, in a relatively linear fashion six or seven months after launch, which I think is potentially positive if one extrapolates that out.

The full interview, which also addresses SEO, dot-brands, registrar pay-for-placement and smart search, can be read by DI PRO subscribers here.

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