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EU body tells ICANN that 2013 RAA really is illegal

Kevin Murphy, January 29, 2014, Domain Registrars

A European Union data protection body has told ICANN for a second time — after being snubbed the first — that parts of the 2013 Registrar Accreditation Agreement are in conflict with EU law.
The Article 29 Data Protection Working Party, which is made up of the data protection commissioners in all 28 EU member states, reiterated its claim in a letter (pdf) sent earlier this month.
In the letter, the Working Party takes issue with the part of the RAA that requires registrars to keep hold of customers’ Whois data for two years after their registrations expire. It says:

The Working Party’s objection to the Data Retention Requirement in the 2013 RAA arises because the requirement is not compatible with Article 6(e) of the European Data Protection Directive 95/46/EC which states that personal data must be:
“kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the data were collected”
The 2013 RAA fails to specify a legitimate purpose which is compatible with the purpose for which the data was collected, for the retention of personal data of a period of two years after the life of a domain registration or six months from the relevant transaction respectively.

Under ICANN practice, any registrar may request an opt out of the RAA data retention clauses if they can present a legal opinion to the effect that to comply would be in violation of local laws.
The Working Party told ICANN the same thing in July last year, clearly under the impression that its statement would create a blanket opinion covering all EU-based registrars.
But a week later ICANN VP Cyrus Namazi told ICANN’s Governmental Advisory Committee that the Working Party was “not a legal authority” as far as ICANN is concerned.
The Working Party is clearly a bit miffed at the snub, telling ICANN this month:

The Working Party regrets that ICANN does not acknowledge our correspondence as written guidance to support the Waiver application of a Registrar operating in Europe.

the Working Party would request that ICANN accepts the Working Party’s position as appropriate written guidance which can accompany a Registrar’s Data Retention Waiver Request.

It points out that the data protection commissioners of all 28 member states have confirmed that the letter “reflects the legal position in their member state”.
ICANN has so far processed one waiver request, made by the French registrar OVH, as we reported earlier this week.
Weirdly, the written legal opinion used to support the OVH request is a three-page missive by Blandine Poidevin of the French law firm Jurisexpert, which cites the original Working Party letter heavily.
It also cites letters from CNIL, the French data protection authority, which seem to merely confirm the opinion of the Working Party (of which it is of course a member).
EU registrars seem to be in a position here where in order to have the Working Party’s letter taken seriously by ICANN, they have to pay a high street lawyer to endorse it.

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Moment of truth as first seven new gTLDs go on sale

Kevin Murphy, January 29, 2014, Domain Registries

We’re finally going to see if there’s any demand for new gTLD domain names.
The first seven new gTLDs — .bike, .clothing, .guru, .holdings, .plumbing, .singles and .ventures, all operated by Donuts — hit first-come, first-served general availability this afternoon.
I understand that the precise time they’re due to become available is 1600 UTC.
But these are going to be unlike any new TLD launches we’ve seen to date.
We’re unlikely to see the kind of mad gold-rush that was enjoyed by the likes of .mobi and .co in their first 24 hours, largely due to the high prices Donuts intends to charge for early adopters.
Under its Early Access Program, any domain registered in these TLDs on day one is going to cost over $10,000 for the first year. The price will come down to $2,500+ tomorrow and will be reduced each day until settling at regular pricing a week from now.
Go Daddy, which commands about half of the retail market, has previously indicated that its day one pricing for Donuts’ gTLDs will be $12,539.
Judging by the Go Daddy web site today, it’s treating EAP as one of its “priority pre-registration” phases distinct from general availability, which it says will kick off February 5.

The EAP is Donuts’ alternative to the landrush-with-auctions model we’ve become accustomed to in previous TLD launches.
The questions are whether this will affect domain investors’ willingness to dive in and grab some premium real estate and whether it will encourage actual end-users to register early.
It seems pretty obvious that while day one of GA for Donuts’ gTLDs is the first big test of its pricing strategy, it’s not going to be the yardstick for volume performance that we’ve seen in previous launches.
I think it’s a pretty safe bet that today’s volumes for Donuts will not come close to GA-day numbers for the likes of .co, .xxx or .mobi, which were in the five or six-figure range.
But with pricing for .bike et al today literally 200 times more expensive than .xxx’s GA pricing, Donuts doesn’t need to sell a great many names to have made a nice return.
ICM Registry said it sold 55,367 .xxx domains in the first 24 hours of GA back in December 2011. With a registry fee of $62, that’s revenue of $3.43 million to the company.
To make the same amount of money from a single gTLD such as .guru, with its $10,000 (I believe) registry fee, Donuts only needs to sell 343 domains today.
.CO Registry sold 194,000 domains in its first 24 hours, at a registry fee I believe was $20, for approximately $3.88 million in revenue. Donuts would only need to sell 388 .clothing domains to make the same return.
These might be achievable numbers. .CO, which operated a landrush-with-auctions period, sold at least 38 domains for over $10,000 and 227 for over $2,500, based on its published results.
Volume matters for the long-term health of a gTLD with public visibility and an aftermarket, but not so much anymore for the financial health of the registry itself.
UPDATE: An earlier version of this story reported that the premium EAP prices recur for every year of the registration. They actually revert back to standard Donuts pricing in the second year.

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First European registrar to get Whois data opt-out

Kevin Murphy, January 28, 2014, Domain Registrars

ICANN plans to give a French registrar the ability to opt out of parts of the 2013 Registrar Accreditation Agreement due to data privacy concerns.
OVH, the 14th-largest registrar of gTLD domains, asked ICANN to waive parts of the RAA that would require it to keep hold of registrant Whois data for two years after it stops having a relationship with the customer.
The company asked for the requirement to be reduced to one year, based on a French law and a European Union Directive.
ICANN told registrars last April that they would be able to opt-out of these rules if they provided a written opinion from a local jurist opining that to comply would be illegal.
OVH has provided such an opinion and now ICANN, having decided on a preliminary basis to grant the request, is asking for comments before making a final decision.
If granted, it would apply to “would apply to similar waivers requested by other registrars located in the same jurisdiction”, ICANN said.
It’s not clear if that means France or the whole EU — my guess is France, given that EU Directives can be implemented in different ways in different member states.
Throughout the 2013 RAA negotiation process, data privacy was a recurring concern for EU registrars. It’s not just a French issue.
ICANN has more details, including OVH’s request and links for commenting, here.

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Scottish gTLD may launch before independence vote

Kevin Murphy, January 27, 2014, Domain Services

The application for .scot, a new gTLD for Scottish people, is ahead of schedule and is likely to launch before the nation heads to voting booths for an independence referendum later this year.
Glasgow-based applicant Dot Scot Registry signed its ICANN Registry Agreement on January 23. That’s despite having a processing priority number way down the pile at 1,453.
The company had previously expected that it would launch in “early 2015”, according to a press release. Now it’s hoping to launch before the Commonwealth Games kicks off, also in Glasgow, on July 23.
If .scot moves as quickly through the remaining stages of the application process as other registries have, it could be delegated in late March, meaning general availability could come as early as June.
This means the domain is likely to be in the hands of Scots and those of Scottish heritage before the landmark independence referendum, which is set for September 18 this year.
The vote will see Scots asked “Should Scotland be an independent country?”. If the majority says “yes”, Scotland would withdraw from the United Kingdom and become fully self-governing.
Scotland’s first minister, Alex Salmond, said in the press release:

2014 is an exciting year for Scotland, and I’m delighted that this distinct online identity for the nation, and all who take an interest in Scotland, will become available this summer.

If Scotland does become the world’s newest formally recognized country, it will be eligible for its own two-character ccTLD too.
The string would be designated by the International Standards Organization and is not likely to be particularly meaningful. The only two-character strings remaining that begin with S are .sf, .sp, .sq and .sw.
The process of obtaining a ccTLD would also take at least a year after (if) Scotland is recognized by the United Nations as an independent nation, which wouldn’t be until at least 2016.
Whatever happens, .scot is going to see the light of day well before any potential Scottish ccTLD, perhaps making it the .com to the country’s .us over the long term.

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Taryn Naidu is a *%@$! Rightside bans company “ridicule” in its new gTLDs

Kevin Murphy, January 27, 2014, Domain Registries

If you register a domain name in one of Rightside Registry’s new gTLDs, you’ll be banned from using it to mock the company or any of its employees or shareholders.
That’s according to its Acceptable Use (Anti-Abuse) Policy (pdf) published by ICANN today.
As well as prohibiting the usual kinds of malicious hacking and spamming activity, child abuse material and so on, the policy bans:

Holding of [United TLD Holdings] (including its affiliates) or their employees or shareholders up to public scorn, ridicule, or defamation.

I can’t recall seeing that kind of clause in a domain name registration agreement before.
While “defamation” is obviously illegal in most places (as determined by a court), “scorn” seems to be a pretty broad term that could capture a lot of free speech commentary.
Rightside has applied for 26 new gTLDs. Several are the kinds of places you might expect to see some edgy discussion: .republican, .democrat, .army, .actor and .gay to name a few examples.
It seems the simplest route to getting a web site you don’t like shut down in any of these gTLDs would be to buy a single Rightside share and file an abuse complaint.
Also banned by the policy is:

Impersonating any person or entity, including, but not limited to, a UTLDH official, or falsely stating or otherwise misrepresenting your affiliation

Rightside, aka United TLD, is the Demand Media domain name retailer and new gTLD registry currently being spun off into a standalone company under CEO (and thoroughly nice bloke) Tayrn Naidu.

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Trademark Clearinghouse using .uno to plug new gTLDs to Spanish markets

Kevin Murphy, January 24, 2014, Domain Registries

New gTLD registry Dot Latin has scored an early anchor tenant win, as the Trademark Clearinghouse has agreed to use two .uno domain names to market rights protection mechanisms in Spanish-speaking markets.
The TMCH, run by Deloitte and IBM, will use trademark-clearinghouse.uno and tmch.uno. The non-hyphenated version of the longer domain has not been delegated.
Both domains currently redirect to the Spanish-language version of the TMCH’s main .com site.
It’s a nice awareness-raising move for Dot Latin, potentially (depending on how well the TMCH markets it) getting its gTLD’s brand in front of major Spanish trademark-owning eyeballs.
The company signed its ICANN Registry Agreement in mid-September, so its 120-day waiting period before it was allowed to hand out second-level domains is already up.
The .uno sunrise period is due to end February 7.

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DomainFest to return in March

Kevin Murphy, January 24, 2014, Domain Services

The DomainFest conference has confirmed its return for 2014.
The ninth annual show in the series is going back to the name DomainFest, having dabbled with a change to WebFest.
Organizers say the conference is “is dedicated to bridging the gap between domain name industry, online advertising, affiliates, social media and mobile.”
The agenda is split into three tracks: mobile, monetization and “gTLDs and registrars”, which seems to have a heavy focus on new gTLDs.
It will be held at the Loews Hollywood Hotel in Los Angeles from March 31 to April 2.
Prices for early bird registration are currently $695, with a $30 booking fee, rising to $995 on February 14 and then to $1,495 on the door.

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Uniregistry bans front-page porn in .sexy

Kevin Murphy, January 24, 2014, Domain Registries

It’s okay to have a .sexy web site, just don’t make it too sexy.
Uniregistry, which will shortly launch the gTLD, has banned front-page nudity in the .sexy space.
Its Acceptable Use Policy, published this week, says that “content unsuitable for a minor” is not permitted on the home pages of any .sexy domains:

For the .SEXY top-level domain, the Registered Names Holder shall not permit content unsuitable for viewing by a minor to be viewed from the main or top-level directory of a .SEXY domain name. For purposes of clarity, content viewed at the main or top-level directory of a .SEXY domain name is the content immediately visible if a user navigates to http://example.sexy or http://www.example.sexy. No restrictions apply to the content at any other page or subdirectory addressed by a .SEXY Registered Name.

The policy goes on to spell out in legalese that it’s talking about porn, rather than nudity or erotica per se, and that “minor” is defined as anyone under 13.
Keeping the front page of web sites porn-free, requiring age verification before the user is allowed to drill down to the good stuff, is considered good practice among porn sites already.
Domain Name Wire, which first spotted the ban, has also published the policy (pdf).

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Gripe sites and PPC banned in new gTLD

Kevin Murphy, January 24, 2014, Domain Registries

New gTLD registry Plan Bee expects to ban gripe sites in its forthcoming .build registry.
Its Acceptable Use and Takedown Policy (pdf), published this week, is among the strictest I’ve seen.
The gTLD was delegated last weekend. It’s going to be an open space targeted at the construction industry, but its AUP bans a lot of stuff.
As might be expected, any form of malicious hacking or spamming behavior is verboten, as is child abuse material.
Activities more often regulated today by registrar user agreements — such as piracy and counterfeiting — are also prohibited.
But the policy goes on to ban activities that are typically permitted in other TLDs, including “gripe sites” and “pay-per-click”. The AUP reads (I’ve emphasized some oddities):

Further abusive behaviors include, but are not limited to: cybersquatting, front-running, gripe sites, deceptive and⁄or offensive domain names, fake renewal notices, cross-gTLD registration scam, name spinning, pay-per-click, traffic diversion, false affiliation, domain kiting⁄tasting, fast-flux, 419 scams or if the domain name is being used in a manner that appears to threaten the stability, integrity or security of the Registry, or any of its Registrar partners and ⁄or that may put the safety and security of any registrant or user at risk.

Domains deemed abusive can be suspended or deleted by Plan Bee, under the policy.
I can see why a niche gTLD might want to build up loyalty in its associated industry by suspending gripe sites targeting construction companies, but banning “pay-per-click” is a baffling decision.
Will .build registrants be prohibited from using Google Adsense to support their sites?
The .build launch dates have not yet been revealed but it’s likely to be a matter of weeks.

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Ten more new gTLDs go live

Kevin Murphy, January 24, 2014, Domain Registries

Donuts, Afilias and Atgron were the beneficiaries of 10 new gTLD delegations yesterday.
Various Donuts subsidiaries had .boutique, .bargains, .cool, .expert, .tienda (“shop” in Spanish), .tools, .watch, .works delegated, bringing the company’s total portfolio to 70 gTLDs.
Afilias had its fourth new gTLD of this round go live in the DNS root: .kim, which is expected to serve people who have the first or last name Kim.
I think it’s the first personal-name gTLD to hit the internet.
Finally, Atgron had .wed delegated. It’s going to be an unrestricted gTLD aimed at marrying couples. It will eventually compete with the currently contested string .wedding.
I have to ponder what the renewal rates are going to be like for what seems to be the first event-focused TLD.
How long before their big day will registrants register their names, and for how long afterwards will they keep the registration alive for sentimental reasons? Atgron reckons such sites stay live for about 18 months.
There are also reportedly twice half as many divorces as marriages in the US at the moment. One wonders why nobody applied for .divorce.

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