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Uniregistry wins .gift and AOL yanks .patch bid

Kevin Murphy, August 16, 2013, Domain Registries

Three more new gTLD applications were withdrawn today, only one of which was related to this week’s previously reported batch of private auctions.
First, Famous Four Media has pulled out of the .gift race with Uniregistry, presumably after some kind of deal. They were the only two applicants, meaning Uniregistry wins the contention set.
Potentially complicating matters, there are also two applicants for .gifts — if the plural/singular debate is reopened, which seems possible after today’s events, it might not be over yet.
Second, AOL withdrew its application for .patch, which was to be a single-registrant space for its Patch-branded network of local web sites.
This seems to be connected to cost-cutting at AOL.
Last week, the company fired Patch’s creative director in front of 1,000 colleagues and announced it was cutting the number of sites in the network.
Today, it started laying off almost half of Patch’s 1,100 employees, according to the Wall Street Journal.
Third, Top Level Domain Holdings withdrew from the .guide contention set, leaving Donuts the winner — a formality following this week’s Innovative Auctions auction, which it lost.

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Google beats Donuts in objection — .pet and .pets ARE confusingly similar

Kevin Murphy, August 16, 2013, Domain Policy

Google has won a String Confusion Objection against rival new gTLD applicant Donuts, potentially forcing .pet and .pets into the same contention set.
The shock ruling by International Centre for Dispute Resolution panelist Richard Page goes against previous decisions finding singulars and plurals not confusingly similar.
In the 11-page decision, Page said he decided to not consider the reams of UDRP precedent or US trademark law submitted by the two companies, and seems to have come to his opinion based on a few simple facts:

Objector has come forward with the following evidence for visual, aural and meaning similarity. Visually, the words are identical but for the mere addition of the letter “s”. Aurally, the word “pets” is essentially phonetically equivalent to the word “pet”. The term “pet” is pronounced as it is spelled, “pet”. The term “pets” is likewise pronounced as “pets” in essentially a phonetically equivalent fashion. The terms each have only one syllable, and they have the same stress pattern, with primary accent on the initial “pe” portion of the words. In commercial meaning, the terms show no material difference. As English nouns, “pets” is the pluralization of “pet”.
The visual similarity and algorithmic score are high, the aural similarity is high, the meaning similarity is high. Objector has met its burden of proof. The cumulative impact of these factors is such that the Expert determines that the delegation of <.pet> gTLD and the <.pets> gTLD into the root zone will cause a probability of confusion.

Page did take into account the similarity score provided by the Sword algorithm — for .pet and .pets it’s actually a fairly weak 72% — in his thinking on visual similarity.
But he specifically rejected Donuts’ defense that co-existence of plurals at the second level was proof that plural/singular gTLDs could also co-exist at the top-level, saying:

The rapid historical development of the Internet and the proliferation of domain names over the past two decades has taken place without the application of the string confusion standard now established for gTLDs. Therefore, the Expert has not considered the current coexistence of pluralized second-level TLDs or similarities between country code TLDs and existing gTLDs in the application of the string confusion standard in this proceeding.

Can: open. Worms: everywhere.
The decision stands in stark contrast to the decision (pdf) of Bruce Belding in the .hotel v .hotels case, in which it was found that the two strings were “sufficiently visually and audibly different”.
Likewise, the panelist in .car v .cars (pdf) found that Google had not met the high evidential bar to proving the “probability” rather than mere “possibility” of confusion.
One has to assume that the evidence Google submitted in .car is fairly similar to the evidence it submitted in .pets.
Are String Confusion Objections just a crap shoot, the outcome depending on which panelist you get? It’s probably too early to say for sure, but it’s looking like a possibility.
The big test will come with the next .pets decision. Afilias, the other .pet applicant, has also filed an SCO against Donuts over its .pets bid.
What if the panel in the Afilias case goes the other way? Will Donuts be in a contention set with Google and Afilias or won’t it?
I asked Akram Atallah, president of ICANN’s Generic Domains Division, about this yesterday and he said that ICANN basically doesn’t know, and that it might have to refer back to the community for advice.
Read the Atallah interview here and the .pets decision (pdf) here.

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Interview: Atallah on new gTLD objection losers

Kevin Murphy, August 16, 2013, Domain Policy

Filing a lawsuit against a competitor won’t stop ICANN rejecting your new gTLD application.
That’s according to Akram Atallah, president of ICANN’s Generic Domains Division, who spoke to DI yesterday about possible outcomes from new gTLD objection rulings.
He also said that applicants that believe they’ve been wronged by the objection process may have ways to appeal the decisions and addressed what happens if objection panels make conflicting decisions.
Lawsuits won’t stay ICANN’s hand
In light of the lawsuit by Del Monte International GmbH against Del Monte Corp, as reported by Domain Name Wire yesterday, I asked Atallah if ICANN would put applications on hold pending the outcome of legal action.
The GmbH lost a Legal Rights Objection filed by the Corp, which is the older company and owner of the “Del Monte” trademark pretty much everywhere, meaning the GmbH’s bid, under ICANN rules, must fail.
Atallah said lawsuits should not impact ICANN’s processes.
“For us it’s final,” Atallah said. “If they have to go outside and take legal action then the outcome of the legal action will be enforceable by law and we will have to abide by it. But from our perspective the [objection panel’s] decision is final.”
There might be ways to appeal
In some cases when an applicant loses an objection — such as a String Confusion Objection filed by an existing TLD or an LRO filed by a trademark owner — the only step left is for it to withdraw its application and receive whatever refund remains.
There have been no such withdrawals so far.
I asked Atallah whether there were any ways to appeal a decision that would lead to rejection.
“The Applicant Guidebook is very clear,” he said. “When an applicant loses an objection, basically their application will not proceed any further. We would like to see them withdraw their application and therefore finish the issue.”
“Of course, as with anything ICANN, they have some other avenues for asking for reconsidering the decision,” he added. “Basically, going to the Ombudsman, filing a Reconsideration Request, or even lobbying the board or something.”
I wondered whether the Reconsideration process would apply to decisions made by third parties such as arbitration panels, and Atallah admitted that the Guidebook was “murky” on this point.
“There are two mentions in the Guidebook of this, I think,” he said. “One mentions that it [the panel’s decision] is final — the application stops — the other mentions that it is advice to staff.”
That seems to be a reference to the Guidebook at 3.4.6, which states:

The findings of the panel will be considered an expert determination and advice that ICANN will accept within the dispute resolution process.

This paragraph suggests that ICANN staff have to accept the objection panel’s decision. That would make it an ICANN decision to reject the application, which can be challenged under Reconsideration.
Of course, the Reconsideration process has yet to see ICANN change its mind on any matter of substance. My feeling is that to prevail you’d at a minimum have to present the board with new information not available at the time the original decision was made.
What if different panelists reach opposite conclusions?
While the International Centre for Dispute Resolution has not yet published its panels’ decisions in String Confusion Objection cases, a few have leaked out.
(UPDATE: This turns out not to be correct. The decisions have been published, but the only way to find them is via obscured links in a PDF file buried on the ICDR web site. Way to be transparent, ICDR.)
I’ve read four, enough to see that panelists are taking diverse and sometimes opposing views in their decision-making.
For instance, a panelist in .car v .cars (pdf) decided that it was inappropriate to consider trademark law in his decision, while the panelist in .tv v .tvs (pdf) apparently gave trademark law a lot of weight.
How the applicants intend to use their strings — for example, one may be a single-registrant space, the other open — seems to be factoring into panelists’ thinking, which could lead to divergent opinions.
Even though Google’s .car was ruled not confusingly similar to Donuts’ .cars, it seems very possible that another panelist could reach the opposite conclusion — in one of Google’s other two .cars objections — based on trademark law and proposed usage of the gTLD.
If that were to happen, would only one .cars application find itself in the .car contention set? Would the two contention sets be linked? Would all three .cars applications wind up competing with .car, even if two of them prevailed against Google at the ICDR?
It doesn’t sound like ICANN has figured out a way to resolve this potential problem yet.
“I agree with you that it’s an issue to actually allow two panels to review the same thing, but that’s how the objection process was designed in the Guidebook and we’d just have to figure out a way to handle exceptions,” Atallah said.
“If we do get a case where we have a situation where a singular and a plural string — or any two strings actually — are found to be similar, the best outcome might be to go back to the GNSO or to the community and get their read on that,” he said. “That might be what the board might request us to do.”
“There are lots of different ways to figure out a solution to the problem, it just depends on how big the problem will be and if it points to an unclear policy or an unclear implementation,” he said.
But Atallah was clear that if one singular string is ruled confusing to the plural version of the same string, that panel’s decision would not cause all plurals and singulars to go into contention.
“If a panel decides there is similarity between two strings and another panel said there is not, it will be for that string in particular, it would not be in general, it would not affect anything else,” he said.
ICANN, despite Governmental Advisory Committee advice to the contrary, decided in late June that singular and plural gTLDs can coexist under the new regime.

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Three gTLD contracts to be renewed next week

Kevin Murphy, August 16, 2013, Domain Registries

ICANN is set to belatedly renew the .info, .org and .biz Registry Agreements next week, according to the just published agenda of its board of directors’ next meeting.
The .info and .biz contracts expired last year, while .org’s expired in April. All three were extended while ICANN and the registries — Afilias, Neustar and PIR — figured out how much of the new gTLD Registry Agreement to incorporate into the renewed deals.
They wound up agreeing to, among other things, mandating the use of the 2013 Registrar Accreditation Agreement in all three gTLDs, but only on the condition that Verisign agrees to the same terms for .com and .net.
The three contracts didn’t go far enough for some, such as the Intellectual Property Constituency, which wants new gTLD rights protection mechanisms such as Uniform Rapid Suspension to be added.
The approval of the three renewals is on the consent agenda for the ICANN board’s August 22 meeting, so it seems unlikely that there will be any huge changes to the previously published draft contracts.
Also on the agenda for next week are the redelegations of the ccTLDs for Botswana (.bw) and Portugal (.pt).

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Artemis plans name collision conference next week

Kevin Murphy, August 16, 2013, Domain Tech

Artemis Internet, the NCC Group subsidiary applying for .secure, is to run a day-long conference devoted to the topic of new gTLD name collisions in San Francisco next week.
Google, PayPal and DigiCert are already lined up to speak at the event, and Artemis says it expects 60 to 70 people, many of them from major new gTLD applicants, to show up.
The free-to-attend TLD Security Forum will discuss the recent Interisle Consulting report into name collisions, which compared the problem in some cases to the Millennium Bug and recommended extreme caution when approving new gTLDs.
Brad Hill, head of ecosystem security at PayPal, will speak to “Paypal’s Concerns and Recommendations on new TLDs”, according to the agenda.
That’s notable because PayPal is usually positioned as being aligned with the other side of the debate — it’s the only company to date Verisign has been able to quote from when it tries to show support for its own concerns about name collisions.
The Interisle report led to ICANN recommending months of delay for hundreds of new gTLD strings — basically every string that already gets more daily root server error traffic than legitimate queries for .sj, the existing TLD with the fewest look-ups.
The New TLD Applicants Group issued its own commentary on these recommendations, apparently drafted by Artemis CTO Alex Stamos, earlier this week, calling for all strings except .home and .corp to be treated as low risk.
NTAG also said in its report that it has been discussing with SSL certificate authorities ways to potentially speed up risk-mitigation for the related problem of internal name certificate collisions, so it’s also notable that DigiCert’s Dan Timpson is slated to speak at the Forum.
The event may be webcast for those unable to attend in person, according to Artemis. If it is, DI will be “there”.

On the same topic, ICANN yesterday published a video interview with DNS inventor Paul Mockapetris, in which he recounted some name collision anecdotes from the Mesolithic period of the internet. It’s well worth a watch.

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Chehade hopes for lower round two gTLD fees

Kevin Murphy, August 16, 2013, Domain Policy

ICANN CEO Fadi Chehade has said he hopes that new gTLD application fees will be lower in the second round.
Speaking to Marketplace in a brief audio interview yesterday, he said:

As we go to round two, which everyone is clamoring for us to open, we will reassess the costs. We are a non-profit and therefore if the learnings from this first round lead us to a different fee — and I hope personally a lower fee so more people can participate — we will adjust that as we go.

The fees in the current round were $185,000, though the refund schedule means only successful applicants pay the full fee.
I’ve heard a couple of murmurings recently — nothing concrete as yet — that the cost of the program is actually running quite close to the original expectations that set the fee at $185,000.
Many applications have been withdrawn very close to the deadline for receiving their full pre-Initial Evaluation result refund, when one assumes that most of the IE costs have already been incurred.

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Second private auction nets $1.2m per gTLD

Kevin Murphy, August 16, 2013, Domain Sales

Only eight new gTLD contention sets were resolved during Innovative Auctions second round of private auctions this week, and the average winning bid has gone down.
The eight strings sold for a combine $9,651,000, or an average of $1.2 million per string. That’s down from the $1.5 million average reported from the first round of auctions in June.
The overall average winning bid from Innovative’s auctions is now $1.33 million.
Over 100 gTLDs had been committed to the second round by various applicants — which put up 68 strings and wound up winning three — but the auctions can obviously only go ahead if the whole contention set agrees to participate.
According to Innovative, these are the winners this week:

  • .guide: Donuts
  • .construction: Donuts
  • .storage: Extra Space Storage (applying as Self Storage LLC)
  • .desi: Desi Networks
  • .expert: Donuts
  • .fishing: Top Level Domain Holdings
  • .casa: Top Level Domain Holdings
  • .网址 (.wangzhi): Hu Yi Global

These were all two-applicant contention sets (Go Daddy had originally applied for .casa, but withdrew its application months ago).
Losing applicants — which get to take home the winning’s bidder’s cash, net Innovative’s fees — were Demand Media, Afilias, Dot Construction, and Red Circle.
The DI PRO Application Tracker will be updated daily as and when the losing applications are withdrawn. So far, only Donuts’ bid for .casa has had its withdrawal processed by ICANN.
Innovative seemed to blame the low turnout on the August holiday period, and said it has scheduled its third round of auctions for September 10.

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Dotless domains are dead

Kevin Murphy, August 16, 2013, Domain Policy

ICANN has banned dotless gTLDs, putting a halt to Google’s plans to run .search as a dotless search service and confounding the hopes of some portfolio applicants.
ICANN’s New gTLD Program Committee, acting with the powers of its board of directors passed the resolution on Tuesday. It was published this morning. Here’s the important bit (links added):

Resolved (2013.08.13.NG02), in light of the current security and stability risks identified in SAC053, the IAB statement and the Carve Report, and the impracticality of mitigating these risks, the NGPC affirms that the use of dotless domains is prohibited.

The current version of the Applicant Guidebook bans dotless domains (technically, it bans apex A, AAAA and MX records) but leaves the door open for registries to request an exception via Extended Evaluation.
This new decision closes that door.
The decision comes a week after the publication of Carve Systems’ study of the dotless domain issue, which concluded that the idea was potentially “dangerous” and that if ICANN intended to allow them it should do substantial outreach to hardware and software makers, essentially asking them to change their products.
The Internet Architecture Board said earlier that “dotless domains are inherently harmful to Internet security.”
Microsoft, no doubt motivated in part at least by competitive concerns in the search market, had repeatedly implored ICANN to implement a ban on security grounds.
Google had planned to run .search as a browser service that would allow users to specify preferred search engines. I doubt the dotless ban will impact its application’s chances of approval.
Donuts and Uniregistry, which together have applied for almost 400 gTLDs, had also pushed for ICANN to allow dotless domains, although I do not believe their applications explicitly mentioned such services.

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dotShabaka Diary — Day 4

Kevin Murphy, August 16, 2013, Domain Registries

Here’s the fourth 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.

Friday 16 August 2013
The IBM TMDB webinar was disappointing. We had hoped to gain some much needed insight into the TMDB system, but instead we left with more questions and concerns. Let’s hope IBM can lift their game for next week’s webinar and the integration and testing process is clarified.
In other news, it has been a week since the teleconference to discuss the URS Technical Requirements Document and we are still unclear on when the requirements will be finalised, posted and whether they stand on the critical path to our Sunrise. If the discussions during the teleconference are anything to go by, significant work is required by both parties to finalise the document. Implementing the requirements in the URS Technical Requirements Document isn’t as simple as flicking a switch – development efforts will be required. This work needs to start now.
Finally, there are now only a couple of days left in our Pre-Delegation Testing window and so far we have not heard anything; we hope that no news is good news. Following this we expect the PDT service provider will take a couple of weeks to review our results. Fingers crossed!
Still no welcome package.

Read previous and future diary entries here.

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NTAG rubbishes new gTLD collision risk report

Kevin Murphy, August 15, 2013, Domain Policy

The New gTLD Applicants Group has slated Interisle Consulting’s report into the risk of new gTLDs causing security problems on the internet, saying the problem is “overstated”.
The group, which represents applicants for hundreds of gTLDs and has a non-voting role in ICANN’s GNSO, called on ICANN to reclassify hundreds of “Uncalculated” risk strings as “Low” risk, meaning they would not face as substantial a delay before or uncertainty about their eventual delegation.
But NTAG said it “agreed” that the high-risk .corp and .home “should be delayed while further studies are conducted”. The current ICANN proposal is actually to reject both of these strings.
NTAG was responding to ICANN’s proposal earlier this month to delay 523 applications (for 279 strings) by three to six months while further studies are carried out.
The proposal was based on Interisle’s study of DNS root server logs, which showed many millions of daily queries for gTLDs that currently do not exist but have been applied for.
The worry is that delegating those strings would cause problems such as downtime or data leakage, where sensitive information intended for a recipient on the same local network would be sent instead to a new gTLD registry or one of its (possibly malicious) registrants.
NTAG reckons the risk presented by Interisle has been overblown, and it presented a point-by-point analysis of its own. It called for everything except .corp and .home to be categorized “Low” risk, saying:

We recognize that a small number of applied for names may possibly pose a risk to current operations, but we believe very strongly that there is no quantitative basis for holding back strings that pose less measurable threat than almost all existing TLDs today. This is why we urge the board to proceed with the applications classified as “Unknown Risk” using the mitigations recommended by staff for “Low Risk” strings. We believe the 80% of strings classified as “Low Risk” should proceed immediately with no additional mitigations.

The group pointed to a recent analysis by Verisign (which, contrarily, was trying to show that new gTLDs should be delayed) which included data about previous new gTLD delegations.
That report (pdf) said that .xxx was seeing 4,018 look-ups per million queries at the DNS root (PPM) before it was delegated. The number for .asia was 2,708.
If you exclude .corp and .home, both of those PPM numbers are multiples larger than the equivalent measures of query volume for every applied-for gTLD today, also according to Verisign’s data.
NTAG said:

None of these strings pose any more risk than .xxx, .asia and other currently operating TLDs.

the least “dangerous” current gTLD on the chart, .sx, had 331 queries per million in 2006. This is a higher density of NXDOMAIN queries than all but five proposed new TLDs. 4 Again, .sx was launched successfully in 2012 with none of the problems predicted in these reports.

Verisign’s report, which sought to provide a more qualitative risk analysis based on some data-supported guesses about where the error traffic is coming from and why, anticipated this interpretation.
Verisign said:

This could indicate that there is nothing to worry about when adding new TLDs, because there was no global failure of DNS when this was done before. Alternately, one might conclude that traffic volumes are not the only indicator of risk, and the semantic meaning of strings might also play a role. We posit that in some cases, those strings with semantic meanings, and which are in common use (such as in speech, writing, etc.) pose a greater risk for naming collision.

The company spent most of its report making somewhat tenuous correlations between its data (such as a relatively large number of requests for .medical from Japanese IP addresses) and speculative impacts (such as “undiagnosed system failures” at “a healthcare provider in Japan”).
NTAG, by contrast, is playing down the potential for negative outcomes, saying that in many cases the risks introduced by new gTLDs are no different from collision risks at the second level in existing TLDs.

Just as the NTAG would not ask ICANN to halt .com registrations while a twelve month study is performed on these problems, we believe there is no reason to introduce a delay in diversifying the Internet’s namespace due to these concerns.

While it stopped short of alleging shenanigans this time around, NTAG also suggested that future studies of root server error traffic could be gamed if botnets were engaged to crapflood the roots.
Its own mitigation plan, which addresses Interisle’s specific concerns, says that most of the reasons that non-existent TLDs are being looked up are either not a problem or can be easily mitigated.
For example, it says that queries for .youtube that arrived in the form of a request for “www.youtube” are probably browser typos and that there’s no risk for users if they’re taken to the YouTube dot-brand instead of youtube.com.
In another example, it points out that requests for “.cisco” or “.toshiba” without any second-level domains won’t resolve anyway, if dotless domains are banned in those TLDs. (NTAG, which has influential members in favor of dotless domains, stopped short of asking for a blanket ban.)
The Interisle report, and ICANN’s proposal to deal with it, are open for public comment until September 17. NTAG’s response is remarkably quick off the mark, for guessable reasons.

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