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Roundup: industry reaction to US giving up IANA role

Kevin Murphy, March 16, 2014, Domain Policy

Members of the domain name industry and ICANN community reacted generally positively to the news Friday night that the US will step aside from its central role in ICANN oversight.
Several companies, organizations and individuals issued early statements in response. We present a summary of those to hit the wires so far here.
First, the so-called I* organizations (IETF, IAB, RIRs, ccTLD ROs, ISOC, and W3C), which manage the internet’s various technical functions and standards, issued a joint statement via ICANN:

Our organizations are committed to open and transparent multi-stakeholder processes. We are also committed to further strengthening our processes and agreements related to the IANA functions, and to building on the existing organizations and their roles. The Internet technical community is strong enough to continue its role, while assuming the stewardship function as it transitions from the US Government.

The Domain Name Association’s executive director Kurt Pritz said this:

The DNA welcomes a deliberate, thoughtful process, inclusive of all stakeholder views to determine the future of the IANA function. As our members are some of the most widely recognized customers of IANA, we will be playing an active role in the process moving forward. The US government performs admirably in this role and it is important that any new oversight mechanism perform as reliably and consistently, and in a manner that prevents the Internet from onerous regulations and/or content controls.

New gTLD portfolio applicant Donuts said:

The IANA function is very important to Internet stability, and Donuts supports the multistakeholder approach to managing this vital resource. As the largest applicant for new top-level domains, we look forward to providing a constructive contribution in this multi-stakeholder discussion. It’s critical that any new mechanisms for IANA oversight ensure not only stability and accountability but also uphold the vital public sector role in promoting Internet innovation and openness.

Lisa Hook, CEO of back-end registry provider Neustar, said in a press release:

We share the US government’s view that the time has come for ICANN to convene global stakeholders to develop the policies, procedures, and accountability framework needed to transition ultimate responsibility for the IANA functions, and we look forward to participating in that process.

Back-end and portfolio applicant Afilias said in its own press release:

We endorse the statements of the NTIA and the organizations noted above [the I*s] with respect to the maturation of these organizations and processes, and we are committed to continuing to contribute to the stewardship of the Internet as part of a globally inclusive, open and transparent multi-stakeholder community.

Michele Neylon, CEO of domain name registrar Blacknight Solutions said:

This is an incredibly historic and important day for Internet governance. As a member of the International governance and infrastructure communities I applaud this move away from a single government to a regulating body that represents the interests of the global community. However, the real challenge now lies ahead in identifying and implementing a strong, diverse community to oversee these crucial organizations.

Milton Mueller, the principal academic behind the Internet Governance Project blogged:

IGP has been leading the call for the US government to be consistent about its non-governmental approach to Internet governance since 2005. Naturally, we were gratified to see the Commerce Department finally come around to that position. Far from “giving up” something or “losing control,” the U.S. is sure to find that its policy has gained strength. We have just made it a lot harder for opponents of a free and open Internet to pretend that what they are really against is an Internet dominated by one hegemonic state.

The news broke rather late on a Friday night, with an NTIA press release and hastily convened ICANN press conference, after the story was leaked to the Washington Post.
There hasn’t been much time for formal written reactions yet, but I’m sure more will be forthcoming as people get into work on Monday morning.

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Belgians do want a piece of Donuts’ new gTLD action

Kevin Murphy, March 16, 2014, Domain Policy

The Belgian government is blocking approval of Donuts’ bid for the new gTLD .spa until the company agrees to hand over up to 25% of its .spa profits to the community of the city of Spa.
It emerged in a letter from Spa published by ICANN this weekend that the city is also demanding a role in managing the TLD at the registry operator’s expense.
The gTLD has been applied for by Donuts and the Asia Spa and Wellness Promotion Council.
Not only does the string .spa match the name of the city, but also the English dictionary word “spa” is actually named after Spa, which has been known for centuries for its “healing” springs.
Despite this, Spa is not a capital city — it has roughly 10,000 inhabitants — so it does not qualify as a protected geographic string under the rules of ICANN’s new gTLD program.
Spa nevertheless wants a role in the TLD’s management, in order to protect the interests of itself and its local community, and wants some of the profits to benefit its local businesses.
According to the letter (pdf) from Spa outside attorney Phillippe Laurent, ASWPC has already signed a memorandum of understanding with the city. That MoU, published with the letter, states:

The turnover generated by the exploitation of the .SPA registry will be used in priority to defray reasonable out-of-pocket expenses incurred by the City as a result of its participation in the SPARC or any other of its activity related to the management and governance of the .SPA extension.
Additionally, 25% of the net profit generated by the domain names registered in the .SPA registry by any Belgian, Dutch, Luxembourgish, French or German person or entity will be earmarks to be contributed towards Internet and spa & wellness activities development in and for the City of Spa and its region, especially as related to the scope of the “.SPA” TLD, to be directed by the City of Spa.

The deal would also see ASWPC reserve 200 .spa domain names (included potential premiums such as poker.spa and golf.spa) for the city to do with as it pleases.
Donuts has refused to sign the MoU, saying it’s inconsistent with the Applicant Guidebook and sets a “bad precedent”. Spa has therefore refused to endorse its application.
The city has its national government on its side. In the April 2013 Beijing communique of the ICANN Governmental Advisory Committee, the GAC listed .spa as one of several bids needing “further consideration”.
This was reiterated in its Durban and Buenos communiques, with the GAC noting that “discussions” between “relevant parties” were “ongoing”.
Essentially, the GAC is delaying .spa from approval while Spa tries to get Donuts to agree to hand over part of its of .spa profits.
There was a somewhat testy exchange at the Buenos Aires meeting in November, after an ICANN director asked the GAC if it was appropriate for a governmental entity to try to get a financial benefit from an applicant.
The Belgian GAC representative responded later that “no money will flow to the city of Spa”, conceding that “a very small part of the profits of the registry will go to the community served by .spa”.
That now seems to be not entirely accurate.
The MoU sees Spa getting reimbursed for its self-imposed cost of inserting itself into the management of the registry, so some money will flow to it. But it will presumably be revenue-neutral to the city.
The issue of the 25% profit cut is a bit ambiguous though.
While the money would not flow directly into city coffers, the city would get the ability to direct how it was spent. Presumably, it could be spent on projects that Spa locals would otherwise look to the city to pay for.
With Donuts and Spa apparently at an impasse, ICANN recently told the GAC that it won’t sign contracts with either applicant, yet, but that it wants “a timeline for final consideration of the string”.
It also wants the GAC to “identify the ‘interested parties’ noted in the GAC advice.”
With Laurent’s letter and the MoU seemingly spelling out exactly what Spa wants and why, perhaps ICANN can move the issue closer to resolution at the Singapore meeting next week.
Is it a shakedown? Is it appropriate behavior for the GAC to hold an application hostage while it tries to obtain financial benefit for its local businesses? Or is Donuts unreasonably trying to exploit a city’s centuries-old cultural heritage for its own economic gain?

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US to give up control over ICANN

Kevin Murphy, March 15, 2014, Domain Policy

In what can only be described as an historic announcement, the United States government tonight said that it will walk away from its control of the DNS root zone.
ICANN CEO Fadi Chehade said during a press conference tonight that the organization has begun a consultation to figure out “accountability mechanisms” that will replace the US role as ICANN’s master.
The news comes in the wake of Edward Snowden’s revelations about US spying, but Chehade and ICANN chair Steve Crocker said that the changes would have been made sooner or later anyway.
So what just happened?
Earlier this evening, the US National Telecommunications and Information Administration announced its “intent to transition key Internet domain name functions to the global multistakeholder community.”
That’s basically referring to the IANA contract, the US government procurement contract under which ICANN has the ability to make changes — essentially by recommendation — to the DNS root zone.
The current version of the contract is due to expire next year, and the hope is that when it does there won’t be any need for a renewal.
Between now and then, the ICANN community (that’s you) is tasked with coming up with something to replace it.
It’s going to be the hottest topic at the ICANN 49 meeting in Singapore, which kicks off a week from now, but it’s expected to be under discussion for much longer than that.
Chehade said during the press conference tonight that the idea is not to create a new oversight body to replace the NTIA. We seem to be talking about “mechanisms” rather than “organizations”.
He also said that the US government has made it plain that any attempt to replace the US with an intergovernmental body (ie, the International Telecommunications Union) will not be considered acceptable.
Whatever oversight mechanism replaces NTIA, it’s going to have to be “multistakeholder” — not just governments.
The root zone is currently controlled under a trilateral relationship between the NTIA, ICANN and Verisign.
Essentially, ICANN says “add this TLD” or “change the name servers for this TLD” and, after the NTIA has approved the change, Verisign implements it on its root zone servers. The other root zone operators take copies and the DNS remains a unique, reliable namespace.
The NTIA has said that it’s going to withdraw from this relationship.
One question that remains is whether Verisign will retain its important role in root zone management.
Chehade appeared slightly (only slightly) evasive on this question tonight, spending some time clarifying that Verisign’s root zone management contract is not the same as its .com contract.
I assume this prevarication was in order to not wipe billions off Verisign’s market cap on Monday, but I didn’t really get a good sense of whether Verisign’s position as a root zone manager was in jeopardy.
My guess is that it is not.
A second question is whether the US stepping away from the IANA function means that the Affirmation of Commitments between the US government and ICANN also has its days numbered.
Apparently it does.
Chehade and ICANN chair Steve Crocker pointed to the ICANN board’s decision a few weeks ago to create a new board committee tasked with exploring ways to rewrite the AoC.
And they said tonight that there’s no plan to retire the AoC. Rather, the idea is to increase the number of parties that are signatories to it.
The AoC, it seems, will be ICANN’s affirmation to the world, not just to the US government.

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Donuts: “eco” registrants could get their names back

Kevin Murphy, March 14, 2014, Domain Registries

Registrants whose domains were deleted by Donuts this week could get their names back, should ICANN release them from its reserved lists in future, the company said today.
In an email to affected registrants, believed to number a few dozen, Donuts said:

We are actively lobbying ICANN to make the domain names you registered available to you. We hope to be successful and, though you are under no obligation to do so, we think it would be helpful if you voiced your opinion to ICANN about it directly.
To get these domain names to you as soon as possible, we are maintaining a record of your details in the event ICANN releases these names for registration. If and when ICANN does, we will contact you and have these names registered to you for free.

The only names affected by the screw-up were “eco” and “00” at the second level in any of Donuts new gTLDs.
The company had accidentally removed both strings from its list of reserved names, making the domains available for registration.
The string “eco” is reserved because it matches the acronym of the Economic Cooperation Organization, an intergovernmental organization, while “00” is reserved along with all two-character strings.
Whether “eco” is released will rather depend on whether the ICANN board of directors sides with the Generic Names Supporting Organization, which wants acronyms removed from the reserved list, or the Governmental Advisory Committee, which wants the protection to remain.
For “00”, it’s a slightly different story. There’s no move I’m aware of to relax the two-character rule, which is designed to protect current and future ccTLDs.
But it does seem a bit strange for numeric domains to be reserved in this way, given that there’s virtually no chance of a future nation being assigned a numeric country code by the UN.
It may not be impossible for “00” to be released, but I think it might take a bit longer.

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French registrar gets Whois data waiver

Kevin Murphy, March 14, 2014, Domain Registrars

The French registrar OVH has been told by ICANN that it can opt out of a requirement to retain its customers’ contact data for two years after their domain names expire.
The move potentially means many more registrars based in the European Union will be able to sign the 2013 Registrar Accreditation Agreement and start selling new gTLD domains without breaking the law.
OVH was among the first to request a waiver to the 2013 RAA’s data retention provisions, which EU authorities say are illegal.
ICANN said last night:

ICANN agrees that, following Registrar’s execution of the 2013 RAA, for purposes of assessing Registrar’s compliance with the data retention requirement of Paragraph 1.1 of the Data Retention Specification in the 2013 RAA, the period of “two additional years” in Paragraph 1.1 of the Data Retention Specification will be deemed modified to “one additional year.”

It’s a minor change, maybe, and many EU-based registrars have been signing the 2013 RAA regardless, but many others have resisted the new contract in fear of breaking local laws.
Now that OVH has had its waiver granted, it’s looking promising that ICANN will also start to allow other EU registrars that have requested waivers to opt-out also.
ICANN has been criticized for dragging its feet on this issue, and I gather the OVH is still the only registrar to have been given the ability to opt out.

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Common first name lost to URS complaint

Kevin Murphy, March 14, 2014, Domain Policy

The first controversial Uniform Rapid Suspension decision? Probably not.
An self-described “entrepreneur” from Texas has lost control of the domain dana.holdings after a URS complaint filed by Dana Holding, a vehicle component supplier. The domain has been suspended.
It’s the first URS case where the second-level string, in this case “dana”, has a hypothetical multitude of uses not related to the trademark holder’s brand.
The respondent, one Farris Nawas, said in his URS response:

Dana is a common Middle Eastern female name. My family is of Middle Eastern descent. My intention is to establish a holding company in my native country and not in the United States. Upon my registration of the domain name www.Dana.Holdings, I discovered that Dana Holdings is nationally registered in the United states. Out of Courtesy, I approached Dana Limited corporation myself to let them know that I have registered the domain name with the intention of starting my own holding company.

The National Arbitration Forum URS examiner, Darryl Wilson, didn’t buy it
While Nawas was not wrong about Dana being a common first name, I feel I’m on pretty safe ground saying the excuse about starting his own holding company was utter nonsense.
Nawas owns over 200 domains, most of which were registered during the first days of new gTLDs general availability and many of which appear to be cut-and-dried cases of outright cybersquatting.
He was called out by Forbes for registering tommyhilfiger.clothing. I’ve discovered he also owns such as names 4san.ventures and akfen.holdings, among others, which also seem to match company names.
Evidence of a pattern of cybersquatting can be used by URS panels to find bad faith, but that doesn’t seem to have happened in this case.
Rather, Wilson seems to have taken Nawas’ offer to sell the domain to Dana for “an unspecified amount” as evidence that he’s a wrong ‘un. Wilson found his explanation “dubious at best”.

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Disadvantaged kids need your money after terrible Name.com charity drive

Kevin Murphy, March 13, 2014, Domain Registrars

Domain name registrar Name.com carried out what can only be described as a completely abysmal charity fund-raising drive during this week’s South by Southwest conference, and disadvantaged kids need your help as a result.
During the conference, Name.com got one of its more photogenic customer support guys to go around the streets of Austin, Texas, asking random passers-by to high-five him.
The high-fives were recorded on a great big electronic device the guy carried on his back. For every high-five he got, Name.com promised to donate a nickel ($0.05) to charity.
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The campaign was videoed and published on the company’s blog (here, here, here, and here)
The end result of this was 10,000 high-fives, which raised an absolutely pointless $500 for the charity concerned, which is the Austin Children’s Center, a very worthy-sounding cause.
The Austin’s Children’s Center provides services for child victims of abuse in Austin, Texas.
But if you watch all of the Name.com videos linked to above, you’ll learn rather more about Name.com than you will about the charity it’s supposedly raising money for.
And all this effort raised a pathetic $500.
There are people reading this post who have regularly spent more than that on dinner.
During the final video, a representative of the charity, the Austin’s Children’s Center, says “We have to raise 65% of our annual budget, and this year it’s $7 million.”
So Name.com raised a whopping 0.007% of its chosen charity’s annual funding needs, while putting rather a lot of effort into attempting to raise its own corporate profile.
I gather that the highfive-counting electronic gizmo that the CSR carried around on his back in the videos costs around $1,200 to buy, meaning that the stunt actually ran at a loss.
Name.com could have donated an extra $1,200 to this charity if it had not run the stunt at all.
That’s assuming, of course, that it didn’t pay the guy carrying the camera, or the guy who did the editing, or the guy who wrote the blog post, or the guy who sent me the press release today…
This kind of crap makes me sick.
I donated $25 to the Center today in protest at Name.com’s bullshit.
If you want to donate in protest too, which I strongly encourage you to do, do it here.
Not many people have donated yet. This charity really does need your help.
If you’re not convinced yet, watch this video and then donate if you find it funny.

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Rockefeller slams .sucks as “predatory shakedown”

Kevin Murphy, March 12, 2014, Domain Policy

US Senator Jay Rockefeller today came out swinging against the proposed .sucks new gTLD, saying it looks like little more than a “predatory shakedown” by applicants.
In a letter to ICANN (pdf), Rockefeller has particular concern about Vox Populi, the .sucks applicant owned by Canadian group Momentous.
As we’ve previously reported, Vox Populi plans to charge trademark owners $25,000 a year for defensive registrations and has already started taking pre-registrations even though .sucks is still in contention.
Rockefeller told ICANN:

I view it as little more than a predatory shakedown scheme… A gTLD like “sucks” has little or no socially redeeming value and it reinforces many people’s fears that the purpose of the gTLD expansion is to enrich the domain name industry rather than benefit the broader community of internet users.

Unusually, I find myself in agreement with Rockefeller, who chairs the Senate’s Commerce, Science and Transportation Committee — Vox Populi’s plan does bring the domain industry into disrepute.
But it’s not the only applicant for .sucks. Top Level Spectrum and Donuts have also applied for the string.
While neither has revealed their proposed pricing, in Donuts’ case a blocking registration via its Domain Protected Marks List service will cost substantially less on a per-domain basis.
Rockefeller asks that ICANN keep his thoughts in mind when reviewing the application, and I’m sure ICANN will pay lip service to his concerns in response, but I don’t think the letter will have much impact.
A bigger question might be: does Rockefeller’s letter foreshadow more Congressional hearings into the new gTLD program?
The last one, which Rockefeller chaired (for about five minutes, before he buggered off to do more important stuff) was in December 2011, and they have tended to happen every couple of years.
Such a hearing would come at an inopportune moment for ICANN, which is trying to distance itself from the perception of US oversight in light of the Edward Snowden spying revelations.
It’s been setting up offices all over the world and championing the forthcoming NetMundial internet governance meeting, which is happening in Brazil next month.

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Donuts’ “eco” debacle affected two-character domains too

Kevin Murphy, March 12, 2014, Domain Registries

Donuts has clawed back a couple dozen premium domain names from their erstwhile owners after accidentally selling names that were supposed to be restricted.
The second-level strings “eco” and “00” were inadvertently released for sale in Donuts’ new gTLDs, even though they’re on ICANN’s lists of names that must not be registered.
After noticing its error, the company started deleting the affected domains, notifying registrants that they would be receiving a refund.
Mike Berkens of The Domains reported that he had lost eco.domains. One of his readers claimed he’d already rebranded his whole company around eco.gallery, costing him dearly.
The domains were deleted because they’re on one of the several lists of reserved names attached to Donuts’ ICANN contracts.
ECO is the acronym for the Economic Cooperation Organization, which is on a temporary list of reservations related to international governmental organizations.
00 is an ASCII two-character label that is supposed to be reserved under a measure designed to prevent clashes with existing and future ccTLDs. The rule also captures numeric strings for some reason.
Donuts said in a statement:

We understand the confusion regarding certain second level registrations. Donuts inadvertently made two strings — “eco” and “00” — available for registration due to a registry error and is sorry for the inconvenience.
We WISH we could sell these names, and frustrating as it may be, these strings are on at least two lists of ICANN-prohibited registrations, so we were obligated to take this step in order for Donuts, registrars and registrants to be in compliance with ICANN requirements.

The IGO acronyms rule is extremely controversial.
It was demanded by ICANN’s Governmental Advisory Committee following requests from IGOs, which generally do not enjoy trademark protection and would be unable to use new gTLD rights protection mechanisms.
But the Generic Names Supporting Organization, representing a more diverse range of interests, came to a unanimous consensus that only the names — not the acronyms — of IGOs should be reserved.
Acronyms of course have multiple uses, as the ECO case amply illustrates. ECO the organization doesn’t even own “eco” in any legacy TLD, operating its web site at ecosecretariat.org.

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Will .exposed see a big sunrise?

Kevin Murphy, March 11, 2014, Domain Registries

Donuts’ new gTLD .exposed goes into sunrise today, but will it put the fear into trademark owners?
It’s arguably the first “ransom” TLD to go live in the current round and the first since .xxx, which scared mark holders into blocking over 80,000 domains back in late 2011.
Most new gTLD sunrise periods to date — most of which have been focused on vertical niches — have had sunrise registrations measured in tens or hundreds rather than thousands.
But .exposed, I would say, is in the same free speech zone as yet-to-launch .sucks and .gripe, which lend themselves well to having a company, product or personal name at the second level.
Brand protection registrars are encouraging their clients to pay special attention to this type of gTLD.
Will this cause a spike in sunrise sales for Donuts over the next 60 days?
It might be difficult to tell, given that Donuts also offers brand owners a blocking mechanism via the Domain Protected Marks List service, so the domains don’t show up in the zone files.
But DPML blocks can be overturned by others with matching trademarks, so some trademark owners may decide to register the name instead for an overabundance of caution.

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