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Wine gTLDs get a pass as GAC fails to agree

Kevin Murphy, September 12, 2013, Domain Registries

Applicants for wine-related gTLDs will no longer be opposed by the Governmental Advisory Committee, it has emerged.
Writing to ICANN chair Steve Crocker this week, GAC chair Heather Dryden said that the GAC had failed to reach an agreement on whether to issue formal Advice against the applications.
Three .wine applicants and one .vin applicant are affected.
Some governments are concerned about strings at the second level because quite often a word many people associate primarily with a type of wine is also the protected name of the wine-producing region.
Champagne is probably the best-known example of this.
Nevertheless, the GAC couldn’t reach agreement on whether to provide formal advice to ICANN on this topic, so the applications will be free to proceed along the new gTLD program’s track.

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Register.com hit by breach notice over 62,232 domains

Kevin Murphy, September 12, 2013, Domain Registrars

Register.com, a Web.com business that is one of the top ten registrars by domains under management, has been hit by an ICANN compliance notice covering 62,232 domain names.
It’s a weird one.
ICANN says that the company has failed to provide records documenting the ownership trail of the domains in question, which all currently belong to Register.com itself.
The notice names 000123.net, 0011pp.com, 00h4.com, 010fang.net, 01rabota.com, 02071988.com and 020tong.com, but it seems that these are merely the first in a alphabetical list that is much, much longer.
Judging by DomainTools’ Whois history, these domains all appear to have been originally registered at various times by individuals in China and India, then allowed to expire, then registered by Register.com to itself.
The only common link appears to be that they were kept by Register.com after they expired, for whatever reasons registrars usually hoard their customers’ expired domains.
According to the compliance notice, ICANN wants the registrar to:

Provide a detailed explanation to ICANN how 62,232 domains in which Register.com itself is the registrant are used for the purposes of Registrar Services, as defined by Section 1.11 of the RAA;

The Registrar Accreditation Agreement says registrars have to keep registrant agreement records, except for a limited class of cases where the domain is owned by the registrar itself and used for registrar-related stuff.
Register.com, one of the original five oldest competitive registrars, has been given until October 2 to come up with the requested information for face losing its accreditation.
The registrar has almost three million gTLD domains under management. Combined with its Web.com sister registrars, which include Network Solutions, the number is closer to 10 million.

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Donuts signs three more new gTLD contracts

Kevin Murphy, September 10, 2013, Domain Registries

Donuts today signed Registry Agreements covering the new gTLDs .land, .plumbing and .contractors, according to ICANN.
The deals mean ICANN now has contracts covering 40 gTLDs, 22 of them as a result of the new gTLD program and 16 of which are to be managed by Donuts.
Like all the gTLDs Donuts applied for, they’re to be operated with an “open” registration policy.
It’s therefore ironic that the company should become the contracted registry for .plumbing and .contractors — both regulated industries where I come from — on the same day we find out that it can’t have .architect because architecture is a licensed profession.

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dotShabaka Diary — Day 9, Unwelcome and Uninformed?

Kevin Murphy, September 10, 2013, Domain Registries

The ninth installment of dotShabaka Registry’s journal, charting its progress towards becoming one of the first new gTLDs to go live, written by general manager Yasmin Omer.

Tuesday 10 September 2013
After responding to ICANN’s COI Clarification Notification of 10 July 2013, including submitting the Letter of Credit and other required documentation, dotShabaka Registry proceeded to the Contracting Phase. The Registry Agreement was executed in Durban a couple of days later.
Now a full two months after our Letter of Credit was submitted to ICANN we received a portal comment that “ICANN requires an original of the Letter of Credit” and we need to respond “as soon as possible to avoid delaying your progress in the post-evaluation process.”
How is this a requirement that we are only now being made aware of? Why the two month wait? Why is the Letter of Credit suddenly on the critical path to delegation for the شبكة. TLD? We are on the other side of the world from Los Angeles and this cannot be completed in a couple of hours.
We are yet to receive ICANN’s ‘Welcome Pack’ for new gTLD Registry Operators. Are other new gTLD Registry Operators at the front-end of the new gTLD program feeling unwelcome and uninformed?
إذا كان الصبر مُرًّا فعاقبته حلوة – If patience is bitter then its result is sweet…

Read previous and future diary entries here.

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First three Community Objections decided: DotGay and Google win but Donuts loses

Kevin Murphy, September 10, 2013, Domain Policy

The International Chamber of Commerce has delivered the first three Community Objection decisions in the new gTLD program, killing off one application and saving two others.
These are the results:
.gay
The objection filed by Metroplex Republicans of Dallas, a gay political organization, against DotGay LLC has failed.
The panelist, Bernhard Schlink, decided that Metrolplex lacked standing to file the objection, stating:

while the conservative segment, with which Metroplex claims association, is a segment of the clearly delineated gay community, it is not a clearly delineated community in and of itself. That some LGBTQ people hold conservative political views and vote for conservative candidates may bring them into a statistical category, but does not make them connect, gather, interact, or do anything else together that would constitute a community, or, that would make them publicly visible as one.

It was the only objection against this .gay application, meaning it can now proceed to later stages of the new gTLD process.
.fly
The objection was filed by FairSearch.org, a coalition of companies that campaigns against Google’s dominance of online markets, against Google’s .fly application.
The application was originally for a “closed generic” registry, but Google has since stated that it has changed its mind and run .fly with an open registration policy.
FairSearch lost the objection, despite ICC panelist George Bermann giving it the benefit of the doubt multiple times during his discussion on its standing to object.
Instead, Google prevailed due to FairSearch’s failure to demonstrate enough opposition to its application, with Bermann writing:

A showing of substantial opposition to an application is critical to a successful Objection. Such a showing is absent here.

He also decided that Google presented a better case when it came to arguing whether or not its .fly would be damaging to the community in question.
.architect
Finally, Donuts has lost its application for .architect, due to an objection by the International Union of Architects, which supports Starting Dot’s competing application for .archi.
Donuts had argued that UIA did not have standing to object because an “architect” does not always mean the kind of architect that designs buildings, which is the community the UIA represents. It could mean a software architect or landscape architects, for example.
But panelist Andreas Reiner found that even if the UIA represents a subset of the overall “architect” community, that subset was still substantial enough, still a community, and still represented by the string “architect”, so that it did have the standing to use the Community Objection.
It also did not matter that the UIA does not represent all the “structural architects” in the world, the panelist found. It represents enough of them that its opposition to .architect passes the “substantial” test.
He eventually took the word “architect” in its most common use — people who design buildings — in determining whether the UIA was closely associated with the community in question.
On the question of whether architects would be harmed by Donuts’ plan for .architect, the panelist noted that architects are always licensed for public safety reasons.
Here are some extracts from his decision, which seem important:

Beyond concerns of public safety, habitat for human beings is of essential importance in society, at the human-social level, at the economic level and at the environmental level

it would be compatible with the above references public interests linked to the work of architects and with the related consumer protection concerns, to allow the domain name “.architect” to be used by anyone other than “architects” who, by definition, need to be licensed

The use of the top-level domain “.architect” by non-licenced architects is in itself an abuse. This top-level domain refers to a regulated professional service. Therefore all safeguards must be adopted to prevent its use by a non-licensed person.

The top-level domain “.architect” raises the legitimate expectation that the related website is the webiste of a licensed architect (or a group of licenced architects). Correct information is essential to consumers visiting websites.

Basically, Reiner trashed Donuts long-standing argument in favor of blanket open registration policies.
He noted specifically that whether to allow a gTLD to proceed might be considered a free speech question, but said that free speech often has its limits, such as in cases of consumer protection.
Worryingly, one of the pieces of evidence that the panelist considered was the Governmental Advisory Committee’s Beijing communique, which contains the GAC’s formal advice against over 500 applications.

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Domain.com owner files for $400m IPO, to spend $110m buying Directi

Kevin Murphy, September 10, 2013, Domain Registrars

Endurance International, owner of Domain.com and HostGator, plans to raise up to $400 million in a Nasdaq IPO, and said it will spend up to $110 million of that buying Directi, India’s largest domain registrar.
As part of the proposed acquisition, Endurance has also agreed to bankroll Directi’s new gTLD auctions to the tune of $62 million.
The acquisition is not final, and appears to depend on a number of targets related to the IPO and Directi’s revenue performance. Endurance’s S-1 filing with the US Securities and Exchange Commission reads:

In August 2013, we entered into a master share purchase agreement to acquire all of the outstanding capital stock of Directi from Directi Holdings, the seller, for an amount we estimate will be between $100 million and $110 million in cash or, at the election of the seller, a combination of cash and shares of our common stock, subject to the satisfaction or waiver of specified customary closing conditions and the achievement of specified financial targets.

The acquisition would close in the fourth quarter this year.
As well as running a top-ten registrar (and a few dozen others), Directi subsdiary Radix Registry has 29 active new gTLD applications, 26 of which are contested.
Endurance proposes to help Radix win these contention sets. On new gTLD auctions, the S-1 says:

in connection with our proposed acquisition of Directi, we entered into agreements with entities affiliated with Directi Holdings related to participation in the auction of new top level domain extensions and domain monetization activities, pursuant to which, among other things, we may be obligated to make aggregate cash payments of up to a maximum of approximately $62 million, subject to specified terms, conditions and operational contingencies.

Endurance is a complicated company. Its most familiar brands include Domain.com, iPage, FatCow, Homestead, Bluehost, HostGator, A Small Orange, iPower and Dotster.
But since December 2011 it has been controlled and majority owned by Warburg Pincus and Goldman Sachs, which paid a reported $975 million.
Its annual revenue for the last three calendar years has been $87.8 million, $190.3 million and $292.2 million. It’s currently not profitable, recording a net loss of $139.2 million in 2012.
It has seven million domains under management and had 3.4 million customers at the end of June 2013.
Judging by the S-1, the company has over a billion dollars of debt. Directi acquisition excluded, most of its IPO proceeds would go towards paying off some of that debt.

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Trademark+50 coming in October

Kevin Murphy, September 10, 2013, Domain Policy

The controversial “Trademark+50” anti-cybersquatting service for new gTLDs is set to go live October 11 or thereabouts, ICANN announced last night.
Trademark+50 is the name given to a function of the Trademark Clearinghouse that enables trademark owners to obtain protection for strings that they’ve previously won at UDRP proceedings.
The service will be limited to 50 strings per trademark, with the total number of strings only limited by the total number of trademarks submitted.
ICANN said:

Rights holders may submit these domain name labels for association with existing Clearinghouse records as early as 11 October 2013. Once previously-abused labels have been verified, they will be integrated into the Trademark Claims service. ICANN expects this to occur by 18 October 2013, ahead of the earliest anticipated new gTLD Claims period.

In July at ICANN’s meeting in Durban, an IBM rep said that a Trademark+50 launch would be “difficult to reach before the middle of September”, which seems to have proven correct.
Pricing for Trademark+50, which we assume will entail a great degree of manual validation, does not appear to have been published yet.
Strings added to the IBM-run TMCH database under Trademark+50 will be eligible for Trademark Claims notifications, but not Sunrise periods, when new gTLDs launch.
Critics have repeatedly raised Trademark+50 as an example of ICANN going outside of its usual community-based policy-development processes in order to push through an unpopular mechanism.
Non-commercial users have criticized the system because it assumes that all strings won at UDRP are inherently cybersquatty, whereas the UDRP itself also requires the domain to have been used in bad faith.
Trademark owners have been able to submit their marks to the TMCH for several months, but Trademark+50 was a later addition to the new gTLD program’s rights protection mechanisms.

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Government forces Nominet into ludicrous porn review

Kevin Murphy, September 9, 2013, Domain Policy

Should Nominet ban dirty words from the .uk namespace?
Obviously not, but that’s nevertheless the subject of a formal policy review announced by Nominet today, forced by pressure from the British government and the Murdoch press.
Nominet said it has hired Ken MacDonald, former director of public prosecutions, to carry out the review.
He’s tasked with recommending whether certain “offensive” words and phrases should be banned from the .uk zone.
According to Nominet, MacDonald’s qualifications include his role as a trustee of the pro-free-speech Index on Censorship and a human rights audit he carried out for the Internet Watch Foundation, the UK’s child abuse material watchdog.
Nominet said:

Lord Macdonald will work with Nominet’s policy team to conduct a series of meetings with key stakeholders, and to review and assess wider contributions from the internet community, which should be received by 4 November 2013. The goal is to deliver a report to Nominet’s board in December of this year, which will be published shortly thereafter.

You can contribute here.
The review was promised by Nominet in early August following an article in the Sunday Times, subsequently cribbed quite shamelessly by the Daily Mail, which highlighted the fact that Nominet’s policies do not ban strings suggesting extreme or illegal pornography.
You may recall a rant-and-a-half DI published at the time.
While my rant was written without the benefit of any input from Nominet — I didn’t speak to anyone there before publishing it — it appears that Nominet already had exactly the same concerns as me.
The company has published a set of lightly redacted correspondence (pdf) between itself and the Department of Culture, Media and Sport which makes for extremely illuminating reading.
In a July 23 letter to DCMS minister Ed Vaizey, Nominet CEO Lesley Cowley uses many of the same arguments — even giving the same examples — as I did a week later. She was much more polite, of course.
She points out that as a matter of principle it probably should not be left to a private company such as Nominet to determine what is and isn’t acceptable content, and that it’s difficult to tell what the content of a site will be at the point the domain is registered anyway.

In relation to the questions of practicality, the permutations of offensive words and phrases that can be created in the 63 characters of a domain name are almost limitless, so the creation of some kind of exclusion list would ultimately not prevent offensive phrases being registered as domain names. Were we to have a set of words or phrases that could not be registered, we would likely end up restricting many legitimate registrations. A good example is Scunthorpe.co.uk, which contains an offensive term within the domain name, or therapist.co.uk which could be read in more than one way.

She also points out that domains such as “childabuse.co.uk”, which may on the face of it cause concern, actually just redirect to the NSPCC, the UK’s main child abuse prevention charity.
The real eye-opening correspondence discusses the Sunday Times article that first compelled Vaizey to lean on Nominet.
As I discussed in my rant, it was based on the musings of just one guy, a purported expert in internet safety called John Carr, who once worked for the IWF and now apparently advises the government.
The examples of “offensive” domains he had supplied the Sunday Times with, I discovered, were either unregistered or contained no illegal content whatsoever.
Nominet’s correspondence contains several more .uk domains that Carr had given the newspaper, and they’re even less “offensive” than the “rape”-oriented ones it eventually published.
The domains are teens‐adult‐sex‐chat.co.uk, teendirtychat.co.uk, teens.demandadult.co.uk, teenfuckbook.co.uk and ukteencamgirls.co.uk, all of which Nominet found contained legal over-18s pornography.
One of them is even owned by Playboy.
Carr, it seems, didn’t even provide the Sunday Times or Nominet privately with any domains that suggest illegal content in the string and actually contain it in the site.
Judging by the emails between Nominet’s PR people (which, admittedly, may not be the best place to obtain an objective viewpoint) the Sunday Times reporter was “not interested in the complexity of the issue” and:

has taken a very hostile stance and is broadly of the view that the internet industry is not doing enough to stop offensive (legal) content.

The Sunday Times’ downmarket sister publication, The Sun, is famous primarily for printing topless photographs of 18-year-old women (in the 1980s it was 16-year-old girls) on Page 3 every day.
The Sun, the UK’s best-selling daily, is currently resisting a valiant effort by British feminists, which I wholeheartedly support, to have Page 3 scrapped.
In other words, the level of media hypocrisy, government idiocy and registry cowardice that came together to create the MacDonald review is quite outstanding.
Still, Nominet in recent years has proven itself pretty good at making sure its independent reviews turn out the way it wants them to, so it’s looking fairly promising that this one is likely to conclude that banning rude words would be impractical and pointless.

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Angry Birds backing two Chinese-language gTLDs

Kevin Murphy, September 9, 2013, Domain Registries

The Finnish/Irish new gTLD applicant TLD Registry Ltd has signed two ICANN Registry Agreements, covering the Chinese strings .在线 (.online) and .中文网 (a phrase meaning “Chinese language website”).
The deals were signed yesterday, but the news is set to be formally announced in Beijing on Tuesday by the Finnish prime minister, Jyrki Katainen, who’s on a state visit to the country.
He’ll be joined by Peter Vesterbacka, chief marketing officer of Angry Birds maker Rovio Entertainment, which is supporting TLD Registry as the first announced member of its “founders program”.
The two new agreements mean ICANN has now contractual powers over more new gTLDs (19) than legacy ones (18).
TLD Registry CEO Arto Isokoski told DI this morning that 在线 and 中文网 are already extremely well-known and widely-used phrases on the Chinese internet.
“在线” is the direct translation of “online” and “中文网” is what Chinese web users instinctively type when they’re searching for the Chinese-language version of a foreign brand’s web site, he said.
“It surprises me as well that these were not contested,” Isokoski said. “These are the strings that Chinese users type in when they’re looking for web sites online.”
Both TLDs will be open to registrants anywhere in the world, though .中文网 seems to be particularly suited for brands from the ASCII parts of the world, looking to improve SEO in the country.
Isokoski said that the company hopes to take .在线 and .中文网 to market early next year. If the strings are delegated in early November, then general availability could start in mid-January, he said.
Depending on ICANN delays, the launch schedule may have to be moved back to February or March in order to avoid the “dead period” around Chinese New Year, which starts in late January, he said.
The most directly competitive gTLD would be .网址, an arguably superior string meaning roughly “website”, which is now out of contention and likely to sign its own contract soon.
Two other Chinese gTLDs, both owned by Donuts, have ICANN contracts already — .游戏 (games) and .企业 (business).
Isokoski said that TLD Registry hopes to have about 20 members of its founders program (included Rovio, which is Finnish but makes games wildly popular in China) and about 20 launch registrars.
Like other IDN gTLD registries, the company is hoping that its first-to-market advantage will give its marketing a lift due to the extra media interest.
TLD Registry is based in Ireland, near its back-end provider Afilias, but was founded by Finns. Afilias alum Pinky Brand is managing registrar relationships for the company.

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Famous Four says that Demand Media’s .cam should be rejected

Kevin Murphy, September 6, 2013, Domain Policy

Demand Media’s application for .cam should be rejected because it lost a String Confusion Objection filed by .com registry Verisign, according to rival applicant Famous Four Media.
“The process in the applicant guidebook is now clear: AC Webconnecting and dot Agency Limited proceed to resolve the contention set, and United TLD’s application cannot proceed,” chief legal officer Peter Young told DI.
dot Agency is Famous Four’s applicant for .cam, which along with AC Webconnecting survived identical challenges filed by Verisign. United TLD is the applicant subsidiary of Demand Media.
Serious questions were raised about the SCO process after two International Centre for Dispute Resolution panelists reached opposition conclusions in the three .cam/.com cases last month.
Demand Media subsequently called for an ICANN investigation into the process, with vice president Statton Hammock writing:

String confusion objections are meant to be applicant agnostic and have nothing to do with the registration or use of the new gTLD.

However, Famous Four thinks it has found a gotcha in a letter (pdf) written by a lawyer representing Demand which opposed consolidation of the three .cam cases, which stated:

Consolidation has the potential to prejudice the Applicants if all Applicants’ arguments are evaluated collectively, without regard to each Applicant’s unique plan for the .cam gTLD and their arguments articulating why such plans would not cause confusion.

In other words, Demand argued that the proposed usage of the TLD should be taken into account before the ICDR panel ruled against it, and now it saying usage should not have been taken into account.
Famous Four’s Young said:

Whether or not one ascribes to the view that usage should not be taken into account, and we believe that it should (otherwise we would not have argued it), the fact is that United TLD were very explicit prior to the publication that usage should indeed be taken into account.

The SCO debate expanded yesterday when the GNSO Council spent some time discussing .cam and other SCO discrepancies during its regular monthly meeting.
Concerns are such that the Council intends to inform the ICANN board of directors and its New gTLD Program Committee that it is looking into the issue.
The NGPC, has “Update on String Similarity” on its agenda for a meeting on Tuesday, which will no doubt try to figure out what, if anything, needs to be done.

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