Team Internet spends $41 million on content farm

Team Internet is back in acquisition mode, saying this morning it has picked up an Israeli content farm business for $41.8 million.

It’s bought Shinez IO, based in Tel Aviv and Denver, for the initial sum plus a potential extra $12.3 million if the company meets certain financial targets over the next two years, the company said.

Shinez operates a network of lightweight blogs covering areas such as food and fashion, which are marketed via social media and monetized via multiple ad networks.

It’s a lucrative business — Team Internet says Shinez had revenue of $111 million, $17.2 million in net revenue, and $10.4 million of EBITDA in 2023.

The acquisition edges Team Internet, formerly CentralNic, ever closer to becoming a billion-dollar company. It now expects revenue for 2023 to work out at $948 million.

The deal also seems to mean reduced exposure to Google as the company’s number one ad revenue source. Team Internet said “this acquisition would more than double the Online Marketing segment’s revenue generated independently of our Tier 1 channel partner”.

Comment Tagged: acquisition, centralnic, team internet

Epik backtracks on Kiwi Farms claim after legal threat

Epik has retracted a claim it made on social media that former customer Kiwi Farms was hosting child sexual abuse material on its web site.

The troubled registrar had said on Twitter in January that it had received a complaint about a “doxxing” post on the Kiwi Farms troll forum that contained naked photographs of an individual Epik said it believed was “underaged”.

Kiwi Farms supporters counter-claimed that the person in question was a 19-year-old adult and the web site’s owner, known as Null, threatened Epik with legal action.

Today, Epik tweeted:

Epik retracts its statement in regards to the Kiwi Farms @KiwiFarmsDotNet having child sexual abuse material on its website. While Epik may not agree with content that may be on its website, Epik has no direct knowledge of child sexual abuse material on the Kiwi Farms’ website.

In the last couple of month, Epik has sought to rebrand itself as a responsible registrar focused on entrepreneurs rather than controversial anchor tenants. It updated its abuse policy last year and kicked out customers such as Kiwi Farms and Gab.

The company is now owned by Registered Agents, a company formation company.

1 Comment Tagged: epik, kiwi farms

.austin names launch on blockchain

A city gTLD launching exclusively on a blockchain alternative naming system? It’s happened, with the announcement of .austin at the SXSW conference in Austin, Texas.

The extension is already on sale at $10 a name via Unstoppable Domains, in partnership with the Greater Austin Asian Chamber of Commerce.

The organizations said the names will serve 2.4 million residents of the Austin area. The extension appears on the Polygon blockchain.

There are plenty of city name gTLDs in the regular DNS, but .austin is believed to be the first blockchain-exclusive (excluding perhaps Handshake, where there are no doubt a great many).

The GAACC claims, without citation, that .austin is “far more secure than the four US city traditional TLDs that exist so far”, which is probably true — domains that don’t resolve for most people can’t be as easily abused.

There’s no word in the Unstoppable or GAACC announcements whether the plan is to apply to ICANN for .austin in the proper DNS in 2026 and mirror the two namespaces, but GAACC will face some administrative hurdles if it wishes to do so.

Under the current draft of the next round’s Applicant Guidebook, applicants need formal endorsement from the local government when applying for “a city name, where the applicant declares that it intends to use the gTLD for purposes associated with the city name.”

If the City of Austin were to apply to ICANN separately, there would no doubt be friction.

Comment Tagged: .austin, blockchain, gaacc, polygon, unstoppable

Freenom shuts down 12.6 million domains — report

Dying free-domains registry Freenom has shut down at least 12.6 million domains across three of its TLDs, according to research from Netcraft.

Netcraft’s latest web server survey shows that the domains — across .tk, .cf and .gq — no longer resolve, according to the company.

That’s 98.7% of the resolving domains Freenom had a month earlier, Netcraft said.

Freenom, also known as OpenTLD, said in February that it was to exit the domains business entirely as part of its settlement with Facebook owner Meta, which had sued it for alleged cybersquatting.

It had already lost its ICANN registrar accreditation and its government contracts to run its portfolio of ccTLDs.

The company’s business model was to offer most domains for free and then monetize them when the registrations expired or were suspended for abuse. It attracted a lot of abusive registrants.

Interestingly, Netcraft notes that the deletions meant that Cloudflare saw a 22% drop in its total hosted domains (with Cloudflare acting as host, not registrar) over the month.

Comment Tagged: cloudflare, freenom

GoDaddy’s next .xxx contract may not be a done deal

ICANN has published what could be the next version of GoDaddy’s .xxx registry contract, and is framing it as very much open to challenge.

The proposed Registry Agreement would scrap the “sponsored” designation from .xxx, substantially reduce GoDaddy’s ICANN fees, and implement the strictest child-protection measures of any gTLD, as well as make ICANN Compliance’s job a lot easier by standardizing terms on the new gTLD program’s Base RA.

But, as eager as ICANN usually is to shift legacy, pre-2012 gTLDs to the Base RA, this time it’s published the contract for public comment as if it’s something GoDaddy is unilaterally proposing.

It’s “ICM’s proposal”, according to ICANN’s public comment announcement, referring to GoDaddy subsidiary ICM Registry, and “ICM has requested to use the Base Registry Agreement form, as well as to remove the sponsorship designation of the .XXX TLD”.

This is not the language ICANN usually uses when it publishes RA renewals for public comment. Normally, the proposed contracts are presented as the result of bilateral negotiations. In this case, ICANN and ICM have been in renewal discussions for at least three years, but the contract is being presented as something GoDaddy alone has asked for.

The new RA would remove almost all references to sponsorship and to IFFOR, the pretty much toothless “sponsor” organization ICM created to get its .xxx application over the line under the rules of the Sponsored TLD application round that kicked off back in 2003.

Instead, it loads a bunch of Public Interest Commitments, aimed at replicating some of the safeguards IFFOR oversight was supposed to provide, into the Base RA.

GoDaddy would have to ban and proactively seek out and report child sexual abuse material. It would also prohibit practices that suggest the presence of CSAM, such as the inclusion of certain unspecified keywords in .xxx domains or in the corresponding web site’s content or meta-content.

(ICANN notes that these PICs may become unenforceable, depending on the outcome of current discussions about its ability to enforce content-related terms of its contracts).

GoDaddy and IFFOR have both submitted letters arguing that sponsorship is no longer required. The existence of sister gTLDs .adult, .sex, and .porn as unsponsored gTLDs, also in the GoDaddy Registry stable, proves the extra oversight is not needed, they say. Registrants polled do not object to the changes, they say.

GoDaddy’s cost structure would also change under the new deal. Not only would it save $100,000 a year by cutting off IFFOR, but it would also inherit the Base RA’s 50,000-domain threshold for paying ICANN transaction fees.

This likely means it won’t pay the $0.25 transaction fee for a while — .xxx was at about 47,500 domains under management and shrinking at the last count. It hasn’t reported DUM over 50,000 since January 2023.

While the renewal terms may seem pragmatic and not especially unreasonable, they’ve already received at least one public objection.

Consultant Michael Palage, who was on the ICANN board for the first three years of .xxx’s agonizing eight-year path to approval, took to the mic at the ICANN 79 Public Forum earlier this month to urge the board to reject GoDaddy’s request.

Palage said there have been “material violations of the Registry Agreement” that he planned to inform ICANN Compliance about. He added that approving the new deal would set a bad precedent for all the other “community” registries ICANN has contracts with.

The situation has some things in common with the controversy over the proposed acquisition of Public Internet Registry and .org a few years ago, in that the proposal entails ignoring promises made by a registry two decades ago.

Whether .xxx will attract the same level of outrage is debatable — this deal doesn’t involve nearly as many domains and does not talk to the price registrants pay — but it could attract noise from those who believe ICANN should not throw out its principles for the sake of a quieter life.

One place we might look for comment is the Governmental Advisory Committee, which was the biggest reason .xxx took so long to get approved in the first place.

But the timing of the comment period opening is interesting, coming a week after ICANN 79 closed. It will end April 29, about six weeks before the full GAC next meets en masse, at ICANN 80.

It’s not impossible that the new contract could be approved and signed before the governments get a chance to publicly haul ICANN’s board over the coals.

1 Comment Tagged: gac, godaddy, ICANN, icm, ra, renewal, xxx

GlobalBlock blocking 2.5 million domains

GoDaddy-led brand protection project GlobalBlock says it is already blocking over 2.5 million domains, just a couple of weeks after its formal launch.

The GlobalBlock web site reports that 2,569,815 domains are currently being blocked across 559 extensions (a mix of ccTLDs, gTLDs, third-level domains and blockchain names), for an average of just under 4,600 per extension.

It’s difficult to extrapolate much useful information about rapid market demand for the service from this one number, for a variety of reasons.

First, the more-expensive GlobalBlock+ service can block well north of 10,000 domains, mostly homographic variants of a trademark, for a single fee, which could mean as few as just a couple hundred customers have signed up so far at the most pessimistic interpretation.

Second, GlobalBlock offered pricing incentives to existing customers of GoDaddy’s AdultBlock and Identity Digital’s Domain Protected Marks List, both of which are over a decade old, in the months-long run-up to launch.

The vanilla, single-brand GlobalBlock service retails for about $6,000 per year, with GlobalBlock+ going for closer to $9,000.

Comment Tagged: bsa, dpml, globalblock, godaddy, identity digital

Microsoft moving its cloud apps from .com to .microsoft

Microsoft is planning to move all of its Microsoft 365 apps off a multitude of .com domains and consolidate them all under .microsoft, its dot-brand gTLD.

The company says it will move Teams, Outlook, and Microsoft 365 web apps to the cloud.microsoft domain. They currently use domains such as outlook.office.com, teams.microsoft.com and microsoft365.com.

It first announced the move in April last year and this week reminded developers of apps that use its cloud platform that they need to support the new domain.

Explaining the move to the dot-brand last year, the company wrote:

Consolidating authenticated user-facing Microsoft 365 experiences onto a single domain will benefit customers in several ways. For end users, it will streamline the overall experience by reducing sign-in prompts, redirects, and delays when navigating across apps. For admins, it will drastically reduce the complexity of the allow-lists required to help your tenant stay secure while enabling users to access the apps and services they need to do their work.

Microsoft plans to launch the teams.cloud.microsoft domain in June but run the two domain schemes in parallel for a while, so as to not unnecessarily break apps in its developer ecosystem.

It’s not going to dump microsoft.com altogether, saying that it plans to use it for “non-product experiences such as marketing, support, and e-commerce.”

The cloud.microsoft domain is already one of the more visible dot-brand names out there, ranking in the top 20 most-visited, according to Majestic rankings.

Hat tip: The Register.

1 Comment Tagged: dot-brands, Microsoft, new gTLDs

ICANN 79: anonymous trolls and undercover lawyers

Transparency, an ICANN watchword since day one, was a noticeable thematic undercurrent at the community’s 79th public meeting in Puerto Rico last week.

The problem of lawyers representing unnamed clients in policy-making groups was raised in several fora, while another section of the community seems to have separately been infiltrated by the same kind of anonymous trolls that plagued ICANN during its infancy.

Governments were especially keen that the GNSO clean house by tightening up its disclosure rules, following an abortive attempt at reform at the Hamburg meeting last October, and they found allies in the Contracted Parties House, which had killed off the reform after deciding it did not go far enough.

Under the current GNSO rules of engagement, everyone who volunteers to participate in policy-making has to file a Statement of Interest, disclosing information such as their employer, community group affiliations, and so on. Among other things, volunteers are asked:

Do you believe you are participating in the GNSO policy process as a representative of any individual or entity, whether paid or unpaid? Please answer “yes” or “no.” If the answer is “yes,” please provide the name of the represented individual or entity. If professional ethical obligations prevent you from disclosing this information, please so state.

The exemption is believed to be designed primarily for American lawyers in private practice, some of whom say they may sometimes be ethically prevented from disclosing the identity of their clients.

But this creates problems for community volunteers, and for the rest of us.

For policy-makers: sometimes, in a working group, you won’t know who you’re really arguing with. The guy opposite, in the expensive suit who keeps inexplicably rubbing her nostrils, could be a mouthpiece for almost any corporation, industry association, or government.

For the rest of us: we don’t know who is really making the policies that impact how domain names are sold, managed, and regulated. Those may seem trivial issues in the grand scheme of things, but they touch on issues such as free speech, data privacy, and how much money comes out of your pocket when you buy a domain.

An attempt last year by the GNSO to update its SOI rules was shot down by the Contracted Parties House because the proposed changes kept the lawyer disclosure exemption.

The Non-Contracted Parties House gave the changes their unanimous approval.

The GNSO Council Committee for Overseeing and Implementing Continuous Improvement, which came up with the changes, looked at 351 SOIs from two recent large policy working groups and found that “a maximum of 0.03% members were making use of the exemption.”

I think that means just one person.

But the scale of the issue is irrelevant compared to the principle, according to some.

Swiss GAC rep Jorge Cancio noted during a session with the CPH last week, “even if there’s a very small number of cases where people use some exceptions for not explaining whom they are working for, even if it’s just 10 people out of 1,000 participants, this already tarnishes the whole of the system”.

Registries Stakeholder Group chair Sam Demetriou concurred: “We believe in and we are strong supporters of the multistakeholder model, but in order for a model to be multistakeholder, you need to know who those stakeholders are. It is inherent in the entire system and the definition.”

The GAC’s position is that everyone participating in policy-making needs to be up-front about their interests, in accordance with global norms. In a session with the GNSO Council, UK rep and vice-chair Nigel Hickson urged the GNSO to sort out the SOI issue before ICANN meets again, set for Kigali this June, because ministers will be present, wanting answers.

Separately at ICANN 79 last week, there was a parallel debate going on about whether a group affiliated with ICANN should force its members to even file SOIs at all.

The Universal Acceptance Steering Group isn’t technically an ICANN body — a Supporting Organization or Advisory Committee — but it is funded and supported by ICANN and carries out ICANN work. It’s been around since 2015 but so far hasn’t required members to submit SOIs.

As anyone who attended or remotely lurked on the ICANN 79 Public Forum last week will know, the UASG came in for a lot of criticism, mostly from remote participants, some of whom have managed to pull off the near-miraculously impressive achievement of having a non-existent Google footprint.

I’m not of course suggesting that some of the people in the Public Forum chat room were trolls using pseudonyms, but… actually, yes, that is what I am suggesting.

These participants had beef with the UASG for imposing a new strict SOI requirement — rules coming into force right now give participants a few months to file their SOIs or get kicked off the UASG mailing list — and suggested UASG leadership had broken with ICANN rules by unilaterally imposing the requirement.

Said mailing list is notable for being lightly used, but with occasional traffic spikes, usually during discussions of anything related to elections or UASG leadership, from participants using free webmail addresses and often what appear to be joke names (Yisrael Memshelet, really?).

Sometimes, these participants have helped steer the mailing list discussion, and at least one question from an aforementioned Google-resistant remote participant was read out at last week’s Public Forum and responded to (kinda) by a board member. ICANN received so many remote UASG questions during the Public Forum that it said it would provide a consolidated written response after the meeting.

It seems ICANN is suffering from twin related transparency problems right now — lawyers who don’t want to reveal their clients, and trolls who don’t want to reveal their identities — neither of which is ideal for its legitimacy.

Comment Tagged: gac, gnso, ICANN, sois, transparency, uasg

ICANN scores win in single-letter .com lawsuit

A Los Angeles court has handed ICANN a victory in a lawsuit filed against it by a domainer who thinks he has the rights to register all the remaining single-character .com domains.

Bryan Tallman of VerandaGlobal.com sued ICANN back in August, claiming the Org was breaking the law by refusing to allow him to register domains such as 1.com and A.com.

He already owns the matching domains in Verisign’s Chinese, Japanese and Hebrew .com IDNs, such as A.קום (A.xn--9dbq2a) and 1.コム (1.xn--tckwe), and says previous Verisign statements mean this gives him the right to the equivalents in vanilla .com.

These domains would very likely be worth tens of millions of dollars apiece. Verisign has held almost all single-character domain names in registry-reserved status since the 1990s. A few, notably Elon Musk’s x.com, pre-date the reservation.

Tallman claimed unfair competition, breach of contract, negligence and fraud and sought a declaratory judgement stating that ICANN be forced to transfer to him all of the 10 digits and all 23 of the remaining unregistered letters in .com, along with some matching .net names.

Pretty outlandish stuff, based on some pretty flimsy arguments.

ICANN filed a demurrer last year, objecting to the suit and asking the Superior Court of California in LA to throw it out, and the judge mostly agreed. In a February ruling (pdf), published recently by ICANN, he threw out all seven of Tallman’s claims.

Tallman was given permission to re-state and re-file five of the claims within 30 days, but his demand for a declaratory judgement was ruled out completely as being irreparably broken.

1 Comment Tagged: ICANN, lawsuit, scdn, single-character, verandaglobal

Cosmetics brand terminates its gTLD

Brazilian cosmetics maker Natura has become the latest new gTLD operator to tell ICANN to terminate its dot-brand contract.

The company said it is “no longer interested” in operating .natura, and ICANN has agreed to end the Registry Agreement.

Natura was not using the domain beyond the mandatory nic.natura, but my records show that it did start experimenting with usage about five years ago.

A handful of domains, including global.natura, app.natura and innovationchallenge.natura were active and resolved to full-content web sites, but these were all shut off at the end of 2023.

The move comes at a time when Natura has been in a cost-cutting drive, divesting various assets and de-listing itself from the New York Stock Exchange.

The string “natura” is a dictionary word in some languages, meaning “nature” in Italian for example, so it could feasibly be applied for in future new gTLD program rounds.

Comment Tagged: .natura, dot-brands, ICANN, termination