No $8 million discount for dot-brands, says ICANN

ICANN has rejected a request for a 80% discount on registry fees paid by dot-brand gTLD operators.

The Brand Registry Group had asked ICANN in May for a reduction in the annual fixed fee from $25,000 to $5,000, largely on the basis that they have essentially no abuse and require very little Compliance oversight.

But interim CEO Sally Costerton has now responded to “respectfully decline” the request, which would have wiped out about $8 million of ICANN’s annual budget, about 5% of its total revenue.

“The cost to support New gTLDs is not merely based on the number of domains under management or the level of abuse. Regardless of the size of the TLD, registry operators must still comply with the Registry Agreement and associated policies, and ICANN must monitor that compliance,” Costerton wrote.

Dot-brands already have lower fees because they uniformly don’t pass the 50,000 domains limit at which transactional fees kick in, she said.

There are mechanisms in the Base Registry Agreement that all amendments to be made, she said.

1 Comment Tagged: brand registry group, dot-brands, ICANN, new gTLDs

Epik lost 125,000 domains in Q1

Epik’s domains under management total fell by over 125,000 in the first quarter, March registry transaction reports reveal.

The company had 607,891 domains in its stable at the end of March, down from 732,914 at the start of the year. The number was down 40,000 in the month, almost double the decrease of February.

Most of the decline can be blamed on transfers — it had 27,721 names go to rival registrars in March and a net transfer loss of 26,658.

Epik had its worst month for newly registered domains too. Having regularly added 10,000 to 20,000 names a month last year, in March that had dwindled to about 2,000.

The company is known to have had troubles paying the largest gTLD registries, but it’s not clear whether this had an impact on its March numbers.

Epik peaked at over 800,000 domains under management before its financial troubles started to emerge last September. Last month it was sold to a mystery buyer which has vowed to turn its fortunes around.

Comment Tagged: epik

Buckingham leaves Nominet’s board early

Nominet director Phil Buckingham has stepped down from Nominet’s board of directors just a few months before his seat comes up for reelection.

Nominet said he was leaving the board for personal reasons immediately.

He was a member-elected non-executive director approaching the end of a three-year term. He will not stand for reelection, Nominet said.

The company, which runs .uk, opened up the seat for nominations in April and will hold a vote in September.

Comment Tagged: elections, nominet

Epik is off the ICANN naughty step

Epik is no longer in breach of its ICANN registrar accreditation agreement, but it remains to be seen whether its anonymous new owners can take over the contract, ICANN has said.

The registrar has paid its past-due fees, explained why it delayed its customers’ renewal requests and promised to put in place measures to ensure this kind of thing doesn’t happen again, ICANN Compliance chief Jamie Hedlund blogged.

This means Epik has dodged a contract suspension and gets to continue with business as usual, for now, albeit with many distrustful customers.

Hedlund wrote that ICANN is now reviewing Epik’s request to transfer its accreditation from Epik Inc to new entity Epik LLC, whose owners have yet to reveal their identities.

ICANN has to do due diligence on the buyer before approving the transfer, but Hedlund said this case is “complex” and is expected to take “several months”.

The LLC bought the old registrar for almost $5 million last month after a tortuous few months for customers claiming to be owed hundreds of thousands of dollars.

Some have speculated that the LLC is a front for Epik founder and former CEO Rob Monster, the person arguably most responsible for Epik’s woes over the last 12 months, but court documents published as part of a customer lawsuit include emails from Monster that suggest he was not involved.

Comment Tagged: compliance, epik, ICANN

Identity Digital is gobbling up Verisign’s back-end business

Verisign appears to be getting out of the new gTLD back-end registry services business, with Identity Digital taking over most of its dot-brand contracts.

Since 2018, over 80 gTLDs have moved from Verisign’s back-end to a competitor or have been removed from the DNS altogether. Over the same period, it hasn’t won any business from any of its rivals, according to data I’ve compiled.

Over the last few months about 30 new gTLDs have moved their technical back-end from Verisign to competitors, all but two to Identity Digital. Nominet and CIRA picked up a gTLD deal each.

Verisign tells me it’s not interested in providing new gTLD back-end services any more. A Verisign spokesperson said in an email:

In the case of the back-end services we provide to new gTLDs, we continually evaluate our business objectives and a few years ago, we decided that we would not be renewing our current new gTLD registry services customers and that we would help them transition before their contracts expired if they wished.

gTLDs moving home recently include .bosch, .crown, .chanel, .next, .nikon, .juniper and .fidelity.

Given the sheer number of gTLDs going to Identity Digital, it appears that there may be a side deal between the two registries to recommend migration to ID, but both companies declined to comment on that suggestion.

In 2012, Verisign had signed on to be the back-end for 220 new gTLDs, mostly dot-brands. Not all of those made it through the application process, but today my database has the company as RSP-of-record for fewer than 80 2012-round labels.

The company was said to be among the priciest option for dot-brands, trading on decades of .com uptime prestige, but the need for an RSP with 150 million domains under management is debatable when your gTLD is essentially just parked.

And for Verisign, the dot-brand business is not material to revenues and probably not especially profitable, at least when compared to the vast amounts of cash .com effortlessly generates.

In 2021, Verisign lost its deal to manage .tv to GoDaddy, after it declined to compete presumably due to the anticipated lower profit margins.

Comment Tagged: back-end, cira, godaddy, identity digital, nominet, verisign

o.com auction likely a damp squib after Overstock rebrand

Verisign’s long-planned auction of the single-character domain o.com is looking even less likely, with its most motivated bidder completely rebranding its company.

Overstock.com, which had been lobbying for Verisign to release the domain since at least 2004, said this week it’s bought the intellectual property assets of bankrupt rival furniture retailer Bed Bath & Beyond for $21.5 million, and will rebrand accordingly.

That means it will drop Overstock.com the brand and overstock.com the domain, in favor of bedbathandbeyond.com in the US. The rebrand of its equivalent Canadian sites under .ca will come first.

The domain switch will presumably be less chaotic than the company’s attempt to rebrand as O.co in 2011, which caused huge confusion in .com-loving North America and was quickly reversed.

The change of course means that Overstock now has no motivation to bid on o.com, should Verisign ever actually get around to exercising its hard-won right to sell off the domain for charity.

All but a handful of single-character .com domains have been reserved for decades, but Verisign was given permission to sell o.com by ICANN in 2018 after years of pleading by Overstock founder Patrick Byrne.

Byrne quit Overstock not long after ICANN gave the nod due to his involvement with Russian spy-turned-politician Maria Butina and evidently took his obsession with o.com with him.

Disclosure: over a decade ago, I provided consulting services to a third party in support of the release of o.com.

4 Comments Tagged: auction, ICANN, o.co, o.com, overstock.com, verisign

ICANN actually CHANGES Verisign’s .net contract after public comments

ICANN has decided to make a change to the upcoming new version of Verisign’s .net registry agreement in response to public comments, but it’s not the change most commenters wanted.

In the near-unprecedented nod to the public comment process, the Org says it’s agreed with Verisign to change two instances of upper-case “S” in the term “Security and Stability” to lower case.

That’s it.

Some commenters had wrung their hands over the fact that the .net contract includes upper-case “Security and Stability” as defined terms, in contrast to the lower-case “security and stability” found in other gTLD contracts.

Based on a strict reading, this could in some circumstances give Verisign an excuse to avoid implementing ICANN Consensus Policies, commenters including the Business Constituency and Intellectual Property Constituency noted,

It appears that this was an oversight by ICANN and Verisign rather that some kind of nefarious plot. In its public comments analysis and summary (pdf), ICANN writes:

We acknowledge however that the capitalization of the “s” could in theory potentially lead to different interpretations of the applicability of certain future Consensus Policies under Section 3.1(b)(iv)(1) for the .NET RA.

Because in this instance it was not the intent of ICANN org nor Verisign to limit in this manner the applicability of Consensus Policy topics for which uniform or coordinated resolution is reasonably necessary to facilitate the interoperability, security and/or stability of the Internet or DNS, ICANN org and Verisign have mutually agreed to update Section 3.1(b)(iv)(1) of the .NET RA to the lower case “s.”

So there we have it: a rare instance of a public comment period accomplishing something and a confirmed victory for accountability and transparency!

Most of the comments had focused on Verisign’s ability to raise prices and a clause that some domainers thought would allow censorial government regimes to seize domains, but ICANN said that’s all fine.

1 Comment Tagged: .net, ICANN, renewal, verisign

GoDaddy takes over .health

GoDaddy Registry has added .health to its growing stable of TLDs.

According to ICANN records, the company has taken over the contract from original registry DotHealth.

GoDaddy was already the back-end registry services provider for the gTLD, and as registrar is responsible for roughly half of the roughly 35,000 domains registered there.

Judging by ICANN documentation, GoDaddy has also acquired DotHealth.

1 Comment Tagged: .health, acquisition, dothealth, godaddy, ICANN, new gTLDs

The looooong road to urgently hiring ICANN’s next CEO

ICANN expects to appoint its next CEO about a year from now, up to 18 months after Göran Marby quit, despite impressing on job-hunters the need to act with speed or risk ICANN’s very existence.

After about 16 “listening sessions” with pretty much every part of the ICANN community over the last three months, the board of directors has approved a 10-page job description for the role.

The document pretty much prays for the Second Coming, at one point calling for a “servant leader” — an oxymoron arguably originating with the words of Jesus H Christ Himself and recently echoed by King Charles III during his coronation.

The new boss will have to be a global visionary with reams of experience managing large, big-budget technical organizations; an impeccably ethical open book; an international diplomat; a compassionate, empathetic nerd; a consensus-building polyglot; a disinterested ICANN insider.

The job description acknowledges that “few, if any” candidates will tick all the boxes, but it’s still setting itself a pretty high bar.

The fact that it takes half a year to write a job ad for a role that’s already been held by nine people over the last quarter century is baffling enough, but the recruitment process itself hasn’t even started yet.

ICANN now says it will put out a request for proposals for executive recruitment companies to manage the hiring process. It doesn’t expect to start interviewing candidates until the start of next year.

The actual appointment should come in the second quarter 2024, ICANN says. Whether the next chief will be available to start immediately is of course unknowable. In the meantime, interim CEO Sally Costerton will carry on filling the role.

You might expect the hiring process to get faster as ICANN gets older, better-resourced and more experienced, but it’s actually months slower than on the last few occasions a new CEO has been sought.

It was 10 months between Rod Beckstrom announcing he was quitting in 2011 and Fadi Chehadé being named heir apparent. After he announced he was out in 2015, it was nine months before Marby was crowned.

We’re now looking at potentially twice as long a runway between CEOs, and a job description that unironically calls for leadership amidst a “rapidly evolving” governance space, addressing the “the need to ‘get things done'” and ICANN’s need to “act with urgency” to manage emerging technological threats that could Balkanize the namespace and threaten ICANN’s very raison d’etre.

2 Comments Tagged: ICANN

Rwanda picked for ICANN meeting

ICANN is inviting its community to Kigali, Rwanda, for its ICANN 80 public meeting.

The shorter “Policy Forum” meeting, the same format as the one that took place in Washington DC this month, will start from June 10 next year at the Kigali Convention Centre, ICANN’s board decided last week.

It’s the first time ICANN has visited Africa since before the Covid-19 pandemic and the first time Rwanda will have hosted a meeting.

ICANN has hosted meetings in Africa on 12 occasions over the last 25 years, in seven countries — Morocco, Egypt, Tunisia, Kenya, Ghana, Senegal and South Africa.

ICANN’s practice is to rotate meetings through each of its five geographic regions, but it rarely happens in a strict order and obviously the pandemic shook up scheduling.

Rwanda and questions about its safety and human rights record have been in the news here in the UK for the last couple of years due to the British government’s plan to deport illegal migrants there.

But the UK and US authorities class Rwanda as safe, as long as you stay away from contested border regions. Visas appear to be free upon arrival for all travelers, regardless of origin.

Comment Tagged: ICANN, icann 80, kigali, rwanda