Amazon snubs ICANN auction to win .coupon privately

Amazon has won the new gTLD .coupon, after Minds + Machines withdrew its application this week.
I understand that the two-way contention set was settled privately via a third party intermediary, possibly via some kind of auction, with M+M ultimately being paid off to withdraw its bid.
.coupon was the only ICANN-managed “auction of last resort” scheduled for July, following the $600,000 sale of .信息 last week.
The next batch of ICANN auctions is now not due to happen until August, unless of course ICANN rejigs its schedule in light of the .coupon settlement.
It’s not clear why Amazon has suddenly decided it prefers the idea of a private commercial settlement after all, but it appears to be good news for M+M, which will see the majority of the cash.
However, it could be related to the fact that .coupon, and dozens of other Amazon new gTLD applications, recently made the switch from being “closed generics” to more inclusive proposals.
Amazon had originally intended that itself and its subsidiaries would be the “only eligible registrants” for .coupon, but in March it changed the application, among many others.
Now, Amazon talks in vague terms about .coupon names being available to “eligible trusted third parties”, a term that doesn’t seem ready to define before the TLDs are actually delegated.
It seems to me, from Amazon’s revised applications, that .coupon and its other gTLDs will be locked down tight enough that they could wind up being effectively closed generics after all.
When Amazon publishes its first eligibility requirements document with ICANN, I expect members of the Governmental Advisory Committee will be watching closely.

1 Comment Tagged: .broadway, .coupon, amazon, auction, closed generics, ICANN, m+m, Minds + Machines, new gTLDs, private auctions

.hotel avoids auction with CPE win

A new gTLD applicant backed by the hotel industry has won a Community Priority Evaluation, meaning it gets to automatically win the .hotel contention set without going to auction.
If the decision stands, no fewer than six rival applicants for the string — including the likes of Donuts, Radix, Famous Four and Minds + Machines — are going to have to withdraw their applications.
It’s a bit of a shocker.
The CPE winner is HOTEL Top-Level-Domain, which scored 15 out of 16 available points in the CPE. The minimum required to vanquish all foes is 14 points.
The company will have spent a fair bit of cash fighting the CPE, but nothing compared to the millions of dollars an auction for .hotel would be likely to fetch.
Crucially, where HOTEL prevailed was on the “Nexus” criterion — demonstrating a link between the string and the community supporting the application — where four points are available.
In the first four CPE results to come through, back in March, each applicant scored a 0 on Nexus and none scored more than 11 points overall.
Dot Registry, which failed four CPEs (.inc, .llc, .corp and .llp) this week, also repeatedly flunked on this count.
HOTEL, however, scored a 3.
Rival applicants such as Donuts and M+M had argued that HOTEL’s stated community failed to take into account smaller hoteliers, such as bed and breakfast owners.
But the CPE panelist decided that the application did not “substantially overreach”:

The string nexus closely describes the community, without overreaching substantially beyond the community. The string identifies the name of the core community members (i.e. hotels and associations representing hotels). However, the community also includes some entities that are related to hotels, such as hotel marketing associations that represent hotels and hotel chains and which may not be automatically associated with the gTLD. However, these entities are considered to comprise only a small part of the community. Therefore, the string identifies the community, but does not over-reach substantially beyond the community, as the general public will generally associate the string with the community as defined by the applicant.

There’s no formal appeals mechanism for CPE, but rival applicants could try their luck with more general ICANN procedures such as Requests for Reconsideration.
HOTEL Top-Level-Domain is a Luxembourg-based entity, founded in 2008 to apply for the gTLD, backed by about a dozen international hotelier associations, including the International Hotel and Restaurant Association.
The IHRA counts 50 major hotel chain brands among its members and claims to be officially recognized by the UN for its lobbying work on behalf of the hospitality industry.
HOTEL intends to keep the .hotel gTLD restricted “initially” to only hotels as defined in the international standard ISO 18513.
Registrants will be verified against hotel industry databases. This will happen post-registration, but before the domain name can be activated in the DNS.
In other words, unless you’re a member of the hotel industry, you won’t be getting to use a .hotel domain name. Domainers are apparently not wanted.
All .hotel names will also be checked a year from registration to ensure that they have a web site displaying relevant content. Redirection to other TLDs may be allowed.
I was so convinced that the CPE was designed in such a way that it would be failed by all the applicants which had applied for it, I bet $50 (to go to an applicant-nominated charity) that none would.
If HOTEL wants to let me know which charity they want the $50 to go to, I’ll get it donated forthwith. I’m just glad I didn’t offer to eat my underwear.

1 Comment Tagged: .hotel, community priority evaluation, ICANN, new gTLDs

Uniform Rapid Suspension comes to .us

Neustar is to impose the Uniform Rapid Suspension policy on the .us ccTLD.
This means trademark owners are going to get a faster, cheaper way to get infringing .us domains taken down.
From July 1, all existing and new .us names will be subject to the policy.
Neustar’s calling it the usRS or .us Rapid Suspension service, but a blog post from the company confirms that it’s basically URS with a different name.
It will be administered by the National Arbitration Forum and cost mark owners from $375 per complaint, just like URS.
Neustar becomes the second ccTLD operator to support URS after PW Registry’s .pw, which implemented it from launch.
URS and usRS only permit domains to be suspended, not transferred to the mark owner, so there’s less chance of it being abused to reverse-hijack domains.
The burden of proof is also higher than UDRP — “clear and convincing evidence”.

Comment Tagged: .us, neustar, uniform rapid suspension, urs, usrs

Three more dot-brands dumped

Two companies have yanked three bids for dot-brand new gTLDs this week.
The German financial advisor Allfinanz Deutsche Vermögensberatung withdrew its applications for .allfinanzberatung and .allfinanzberater, which mean Allfinanz “advice” and “advisers”.
As well as being a bit of a mouthful, they both appear to be unnecessary given that the company also applied for .allfinanz by itself. That application has passed evaluation and is still active.
Meanwhile, in Finland, one of the world’s biggest elevator/escalator manufacturers, KONE, has withdrawn its equally unfathomable application for .kone.
Roughly 55 dot-brand applications have been withdrawn to date. Hundreds remain.

6 Comments Tagged: .allfinanzberatung, .kone, ICANN, new gTLDs, withdrawals

M+M profits by losing new gTLD auctions

Minds + Machines managed to make a profit in 2013, after years of losses, due to its participation in private new gTLD auctions, some of which it “lost”.
The company today reported operating profit of £776,000 for the year to December 31, compared to a £3.07 million loss in 2012, on revenue of £4.12 million. Profit after tax was £729,000.
“Profit was primarily a result from participating three private auctions,” CEO Antony Van Couvering said in a statement.
Chairman Fred Krueger added:

As we expected, private auctions have become the key method of settling contention between applications and we have benefited from this development, as it has enabled our cash to work on a leveraged basis: the domains we have lost in private auction (for example .property and .website) have helped finance new TLDs we have acquired such as .wedding and .garden.

Minds + Machines (then Top Level Domain Holdings) said last October that it had raised £2.97 million by losing the auctions for .lawyer and .website.
Excluding the auctions, it looks like the company made just £36,000 in revenue, all of which came from its registry back-end business.

4 Comments Tagged: auctions, m+m, minds+machines, new gTLDs

Donuts wins .gifts, .sarl and .restaurant

Donuts has won the contention sets for three new gTLDs, at least two of which seem to have come as the result of an Applicant Auction auction.
It beat mySARL to .sarl, Lucy Ventures to .gifts and Uniregistry, Minds + Machines and Famous Four to .restaurant. All of these rival bidders have withdrawn their applications now.
.sarl is a company designator in some French-speaking countries, including France.
.restaurant is interesting because it will be competing against .rest. While I prefer .restaurant, .rest’s backers believe it has broader appeal in non-English-speaking nations.
.gifts will be competing against Uniregistry’s .gift, which currently has 5,781 registrations.
Since I was told that Applicant Auction had settled 10 contested gTLDs almost two weeks ago, 11 contention sets have been resolved by withdrawals.
I’m guessing one of these fights was settled by other means. Donuts has been known to make private deals on occasion.

7 Comments Tagged: .gifts, .restaurant, .sarl, donuts

.uk launches with Stephen Fry as anchor tenant

Nominet has launched its controversial .uk service, enabling Brits and others to register directly at the second level for the first time.
It did so with an endorsement from quintessential uber-Brit, gadget nut, Apple slave and national treasure Stephen Fry and a marketing splash including a .uk domain apparently visible from 35,000 feet up.
This sign has been placed in one of the main flight paths into Heathrow. Readers flying in to London for ICANN 50 later this month might want to ask for a window seat.

Actor/author/comedian Fry was the first to be given a .uk today. He’s switched from stephenfry.com to stephenfry.uk as a result — the .com is already redirecting to the .uk.
He said in a blog post:

It’s only three harmless key-presses, you may think. A year or so back I wrote that it seemed to me annoying and lax of the British internet authority (if such a body ever existed, which it didn’t and doesn’t) when domain names were being handed that they were so inattentive and their eyes so off the ball. How come Germany could have .de, France .fr, South Africa .za, Italy .it etc etc etc? And we poor British had to have the extra exhaustion of typing .co.uk. Three whole keystrokes. It doesn’t stack up to much when compared to other howling injustices in the world. The length of time poor students and tourists have to queue to get an Abercrombie and Fitch polo shirt for example, but nonetheless it has been a nuisance these twenty years or so.

His involvement has helped the news hit many of the major daily newspapers in the UK today.
This is how to launch a TLD.
Fry’s friend Prince Charles was given princeofwales.uk last December, among 69 domains previously under .gov.uk that the government requested receive special treatment.
While new .uk addresses are available to register now, you won’t be able to immediately register one that matches a .co.uk unless you’re the owner of that .co.uk.
All .co.uk registrants have been given five years to decide whether they want the .uk equivalent, which carries a £2.50-a-year fee ($4.20), assuming a multi-year registration.
That’s the same as a .co.uk. Assuming .uk gets good uptake and that most registrants will keep their .co.uk names for the foreseeable future, Nominet’s accounts could be in for a significant boost.
Owners of .org.uk or .me.uk names only get the free reservation if the matching .co.uk is not already registered. Otherwise, they have to wait five years like everyone else.

7 Comments Tagged: .uk, direct.uk, nominet

Breaking: Go Daddy files for $100 million IPO

Go Daddy has filed its S-1 registration form with the US Securities and Exchange Commission, signalling its intention to go public.
The filing reveals the company plans to raise $100 million with the share sale.
Go Daddy’s revenue for 2013 was $1.1 billion, up from $910.9 million in 2012, the filing reveals.
But the company said it uses “bookings” as a measure of its success, due to the way its revenue is collected up-front but recognized on its books over the term of the domain or hosting contract.
Bookings were $1.4 billion in 2013, up from $1.25 billion in 2012.
Go Daddy is loss-making, recording a net loss of $199.8 million in 2013 and $279 million in 2012.
The company has 57 million domains under management and hosts 8.5 million web sites, according to the S-1. Those are spread between 12 million customers, a number that grew by 1.3 in 2013.
A surprising 24% of its sales come via its customer service people; the rest comes through its web site.
Go Daddy planned to IPO in 2006, but subsequently yanked the offering due to “market uncertainties” and then-CEO Bob Parsons’ apparent discomfort with the process.
In 2011 the company was taken over by the investment firms KKR, Silver Lake Partners, and Technology Crossover Ventures, paying a reported $2.25 billion for a 65% stake.
Since then, an eventual IPO has not been a matter of if, but when.
I’m tweeting more nuggets from the S-1 as I find them.

2 Comments Tagged: go daddy, ipo

Famous Four makes $175,000 from .webcam porn names

Famous Four Media has sold a package of 15 .webcam domain names to an unspecified buyer for a total of $175,000.
The deal included tube.webcam, asian.webcam and milf.webcam, which Famous Four described as “adult oriented”.
Whois records for the domains are not yet available.
The .webcam gTLD is due to go to general availability today, alongside .bid and .trade. Together, they’re the registry’s first three gTLDs to hit GA.
It’s not an explicitly adult-oriented gTLD, but “cam” sites are a pretty big deal in the world of porn nowadays, so it’s easy to guess where .webcam will get most of its action.
The $175,000 deal — almost the full new gTLD application fee — was brokered by HuntingMoon, which specializes in adult industry names, in collaboration with Media Options and Domain Broker UK.
The deal follows hot on the heels of the $3 million sale of sex.xxx.

Comment Tagged: .webcam, Famous Four Media, huntingmoon

How NetSol opts you in to cybersquatted .xyz names

Clear-cut cases of cybersquatting seem to be among those .xyz domain names that Network Solutions has registered to its customers without their explicit request.
Some of the domains I’ve found registered in .xyz, via NetSol to the registrants of the matching .com or .net names, include my-twitter.xyz, facebook-liker.xyz and googledia.xyz.
Domains including other brands, such as Rolex, Disney, iPhone, Amazon and Pepsi can also be found registered to third parties, via NetSol, in .xyz’s zone today.
They’re all registered via NetSol’s Whois privacy service, which lists the registrant’s “real” name in the Whois record, but substitutes mailing address, email and phone number with NetSol-operated proxies.
I think the chance of these names being paid for by the registrant is slim. It seems probable that many (if not all) of the squatty-looking names were registered via NetSol’s promotional program for .xyz.
As previously reported, NetSol has been giving away domain names in .xyz to owners of the matching .com names. Tens of thousands of .xyz names seem to have been registered this way in the last week.
The “registrants” did not have to explicitly accept the offer. Instead, NetSol gave them the option to “opt-out” of having the name registered on their behalf and placed into their accounts.
The effect of this has been to propel .xyz into the leading spot in the new gTLD league table. It had 82,236 names in today’s zone file. a clear 15,000 names ahead of second-place .club.
But it’s not clear how much, if any, support NetSol has received from the registry, XYZ.com. CEO Daniel Negari told Rick Schwartz, in a coy interview last week:

The Registry Operator is unable to “give away” free domain names. I never even saw the email that the registrar sent to its customers until I discovered it on the blogs.

The opt-out giveaway has also prompted speculation about NetSol’s right to register domains without the explicit consent of the registrant, both under the law and under ICANN contract.
Under the Registrar Accreditation Agreement, in order to register a domain name, registrars “shall require” the registrant “to enter into an electronic or paper registration agreement”.
That agreement requires the registrant to agree to, among many other things, the transfer or suspension of their domains if (for example) they lose a UDRP or URS case.
But that doesn’t seem to be happening with the opt-out names,
Barry Shein, president of The World, had shein.xyz registered on his behalf by NetSol on Saturday. He already owns shein.com, also registered with NetSol.
NetSol’s email informing him of the registration, which Shein forwarded to DI, reads as follows:

Dear Valued Network Solutions Customer,
Congratulations, your complimentary SHEIN.XYZ domain has arrived!
Your new .XYZ domain is now available in your Network Solutions account and ready to use. To go along with your new .XYZ domain, you have also received complimentary access to Professional Email and Private Registration for your .XYZ domain.
If you choose not to use this domain no action is needed and you will not be charged any fees in the future. Should you decide to keep the domain after your complementary first year, simply renew it like any other domain in your account.
We appreciate your business and look forward to serving you again.
Sincerely,
Network Solutions Customer Support
www.networksolutions.com
http://www.networksolutions.com/help/index.jsp

Importantly, a footnote goes on to describe how NetSol will take a refusal to opt out as “continued acceptance” of its registration agreement:

Please note that your use of this .XYZ domain name and/or your refusal to decline the domain shall indicate acceptance of the domain into your account, your continued acceptance of our Service Agreement located online at http://www.networksolutions.com/legal/static-service-agreement.jsp, and its application to the domain.

So, if you’re a NetSol customer who was picked to receive a free .xyz name but for whatever reason you don’t read every marketing email your registrar sends you (who does?) you’ve agreed to the registration agreement without your knowledge or explicit consent, at least according to NetSol.
I am not a lawyer, but I’ve studied enough law to know that this is a dubious way to make a contract. Lawyers I’ve shown this disclaimer to have laughed out loud.
Of course, because each registrant already owns a matching .com, they’ve already accepted NetSol’s registration agreement and terms of service at least once before.
This may allow NetSol to argue that the initial acceptance of the contract also applies to the new .xyz domains.
But there are differences between .com and .xyz.
Chiefly, as a new gTLD, .xyz registrants are subject to policies that do not apply to .com, such as the Uniform Rapid Suspension policy.
URS differs from UDRP in that there’s a “loser pays” model that applies to complaints involving over 15 domains.
So these .xyz registrants have been opted into a policy that could leave them out of pocket, without their explicit consent.
Of course, we’re talking about people who seem to be infringing famous trademarks in their existing .com names, so who gives a damn, right?
But it does raise some interesting questions.
Who’s the registrant here? Is it the person who owns the .com, or is it NetSol? NetSol is the proxy service, but the .com registrant’s name is listed in the Whois.
Who’s liable for cybersquatting here? Who would Twitter file a UDRP or URS against over my-twitter.xyz? Who would it sue, if it decided to opt for the courts instead?

33 Comments Tagged: .xyz, cybersquatting, network solutions, new gTLDs, trademarks, udrp, urs