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Two more gTLD bids kicked out of the program, but .kids gets ICANN funding

Kevin Murphy, March 12, 2013, Domain Services

Two more applications have been rejected from the new gTLD program, after they tried and failed to have their application fees subsidized by ICANN’s Applicant Support Program.
Three gTLDs were submitted for financial assistance, but ICANN’s Support Application Review Panel, delivering its results (pdf) today, decided that only one of them qualified for a cheapo bid.
DotKids Foundation Ltd, which is applying for .kids, is the lucky recipient of $138,000 worth of waived application fees. Its application now enters Initial Evaluation.
The applicants for .ummah (Ummah Digital Ltd) and .idn (NameShop), on the other hand, have been given a refund of the $47,000 application fee they paid and politely shown the door.
ICANN said: “applications that did not meet the threshold criteria for financial assistance will be excluded from further participation in this round of the New gTLD Program”.
That rule was introduced to prevent gaming — companies that asked for cheaper applications risked losing their applications if they failed to meet the requirements for support.
It doesn’t mean there was anything wrong with their gTLD applications, however.
The approval of funding for the DotKids Foundation is goodish news for people uncomfortable with Amazon’s closed gTLD land-grab — the retailer is the only other applicant for .kids.
While the .kids contention set remains, is pretty safe to say that Amazon will be able to utterly crucify its competition if the TLD goes to auction.

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Google-backed new gTLD industry group appears at WhatDomain.org

Kevin Murphy, March 12, 2013, Domain Registries

The formative domain name industry trade association that DI has blogged about a few times recently has found itself a web site.
The Google-backed initiative can be found now at WhatDomain.org, which currently carries a bit of brief information about the organization’s rough plans and a call for potential members to get in touch.
The site states:

We are organizing to help educate the world on the coming changes in the domain landscape and to support the interests of the domain name industry. We are inviting any organization with a similar interest in domains to join us in working to create and launch an organization that will enable us to work together to achieve these objectives.

The association will eventually have membership tiers and fees, but those details have yet to be arranged.
We understand that while new gTLD applicant Google is doing most of the “heavy lifting” getting the project off the ground, the company wants to go as arms-length as possible very quickly.
The first informal meeting of what may or may not become officially known as WhatDomain took place at during an intersessional ICANN meeting in Amsterdam this January.
The idea is to promote new gTLDs and domain names in general, raise the reputation of the industry and promote the universal acceptance of TLDs among software developers.
During a session here at the Digital Marketing & gTLD Strategy Congress in New York yesterday, ICANN head of stakeholder engagement Sally Costeron seemed to commit ICANN to help support the initiative.

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Confusion reigns over three “hijacked” ccTLDs

Kevin Murphy, March 12, 2013, Domain Registries

Control over three ccTLDs is currently up in the air due to the alleged hijacking of one of the registry operator’s domain names.
The TLDs for the Turks and Caicos Islands (.tc), the British Virgin Islands (.vg) and Grenada (.gd) are all nominally managed by a UK-based company called AdamsNames.
Last October, AdamsNames outsourced the back-end technical functions of the registry to KSRegistry, the registry sister company to German registrar Key-Systems.
But this week, it’s difficult to say who’s in charge any more.
KSRegistry, in an official statement, said yesterday that an unspecified “third party” had managed to take over the registry’s domain name, AdamsNames.net, and was operating a “shadow registry” there.

Today, the KSregistry GmbH, a hundred percent subsidiary of the Key-Systems GmbH, has learned that a third party has executed a transfer of the domain name adamsnames.net and now operates a shadow registry under this domain. According to the CEO of AdamsNames Ltd., Mr. Carsten Pauli, this transfer was not authorized by the registry operator.

Whois records show that the domain was transferred away from Key-Systems to Hexonet last week, and that the administrative contact changed from an address in London to an address in Istanbul.
The name on the records was Ertan Ulutas before and after the transfer.
So has Ulutas, by taking control over what is in effect the official registry web site, hijacked all three registries?
Statements appearing on AdamsNames.net this week tell a different story.
Whoever’s in control of the domain — presumably Ulutas — claims that the outfit is “currently experiencing a high level Corporate hijack from the minority shareholder Carsten Pauli and Key Systems GmbH.”
A statement today reads:

As you are all aware AdamsNames Ltd has been run by us for a while. Key Systems is our former Registry Backend provider. We recently noticed, the adamsnames.com domain, for which Key Systems was the Registrar had been illegally transferred into another account without any notice or authorisation from us.
Upon realising this we transferred our other gTLD domains to another Registrar. Due to this matter we lost trust in Key Systems GmbH and decided to run it ourselves. Please be aware that our Registry is fully operational.
All domains can be registered, renewed and updated as usual. We could not trust a company with three ccTLD’s if we could not trust them with one domain!

Whois records show that Pauli recently became the owner of AdamsNames.com. Ulutas was the previous owner. The domain is registered via Key-Systems.
KSRegistry, which has declined to comment beyond its prepared statement yesterday, said:

KSregistry GmbH still provides the technical back-end services for the ccTLDs .TC, .GD and .VG authorized by AdamsNames Ltd., but this is currently hampered by the actions of the third party.
In order to not endanger the integrity of the zone after addressing the issues, the Key-Systems GmbH as registrar has decided to not permit current modifications to domains under .TC, .GD and .VG. The resolution and renewal of the domains are not affected.

What seems to be happening here is that Pauli and Ulutas have had some kind of dispute, and that as a result the registrants and the reputation of three countries’ ccTLDs have been harmed.
Very amateurish.
UPDATE: Key-Systems founder and CEO Alexander Siffrin has issued the following updated statement in response to the latest claims on Adamsnames.net:

Key-Systems GmbH has at no time hijacked a domain name from Adamsnames Ltd. It has in the incident referred to by the party currently claiming to represent Adamsnames acted upon a request of the director of Adamsnames Ltd. who is also the signatory of the agreement outsourcing the technical backend of the registry to KSregistry GmbH.
On the other hand the transfer of the domain name adamsnames.net and with that the ability to change the management of the zone has to our knowledge been initiated without permission of Adamsnames Ltd.
It is noteworthy that at this time the domain names listed by the current technical operator do not list Adamsnames Ltd. as registrant:
ADAMSNAMES.NET
adamsnames.org
adamsnames.eu
You may draw your own conclusions.

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ICANN accredits .tk registry as registrar

Kevin Murphy, March 12, 2013, Domain Registrars

Freedom Registry, the company behind the oft-criticized .tk domain registry, seems to have been accredited as an ICANN registrar.
The new registrar business goes by the name OpenTLD. Its domain name currently bounces visitors to Freedom’s home page.
Freedom manages .tk, the ccTLD for tiny Tokelau. It’s the fastest-growing TLD — currently the second-largest ccTLD after Germany’s .de — because it’s free to register .tk domains.
As a result, it’s also regularly recognized by the Anti-Phishing Working Group as one of the most-abused TLDs out there, though the company says its business model allows it turn off abusive domains at will.

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Melbourne IT gets out of brand protection with $157m sale to CSC

Kevin Murphy, March 12, 2013, Domain Registrars

Corporation Service Company has acquired Melbourne IT’s flagship digital brand management service for a ridiculously expensive AUD 152.5 million ($157m).
The shock news takes Melbourne out of the high-margin defensive registration and brand monitoring market, leaving it as a basic domain registrar focused on small businesses.
For CSC, the deal leaves it with a considerably strengthened hand in the DBS space, which is poised to benefit from the massive influx of new gTLDs over the next few years.
It also means that all of the over 100 new gTLD applications Melbourne was supporting as a consultant will now be managed by CSC.
The price of AUD 152.5 million is far more than Melbourne IT could have hoped to ask for, equal to almost its entire market capitalization of AUD 160 million.
Melbourne has had a rocky time on the markets of late, and had previously disclosed that it was looking to sell off some units in order to appease shareholders and rationalize its business.
But DBS was considered a core business, bigger now than Melbourne’s regular domains business, and likely not for sale. CSC’s high-premium offer was too good, it seems, to be responsibly refused.
“While this was not a business that we had specifically earmarked for sale, given the value creation provided by the transaction, this was an opportunity which could not be ignored,” CEO Theo Hnarakis, said in a statement.
The deal follows the sale of MarkMonitor, a key Melbourne competitor, to Thomson Reuters last July. When it comes to brand protection in the domain name space, it’s a big boy’s game nowadays.
Melbourne will remain a domain registrar with over four million names under management.
The DBS business was formed in 2008, largely as a result of Melbourne’s purchase of Verisign’s brand services division for $50 million.

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TLD Health Check from DI is the first business intelligence tool for the new gTLD era

Kevin Murphy, March 11, 2013, Domain Services

DI today introduces TLD Health Check, an industry-first business intelligence service that enables users to quickly and easily monitor the performance of top-level domains.
TLD Health Check is software as a service. It allows anyone to not only track the growth of gTLDs new and old, but also to compare TLD popularity and abuse levels across the industry.
TLD Health Check is launching with 27 interactive charts and tables that make it simple for users to:

  • TLD Health Check screenshotMonitor the growth of gTLD registries. gTLD growth (or shrinkage) can be tracked against multiple criteria including domains under management, newly added domains, renewals and deleted domains. Based on official registry reports, the service also dynamically calculates metrics such as average registration periods, enabling users to gauge registrant confidence in each gTLD’s relevance and longevity.
  • Rank TLDs by popularity. TLDs can have lots of domains, but which TLDs are being visited most often by regular internet users? TLD Health Check aggregates TLD data from Alexa’s list of the top one million most-popular domain names, to figure out which TLDs web surfers actually use on a daily basis.
  • Compare abusive activity across 300+ TLDs. TLD Health Check calculates TLD abuse data from several major third-party malware and phishing domain lists, letting you instantly compare abuse levels between every live TLD.
  • Track cybersquatting levels by TLD. Drawing on a database of over 75,000 UDRP decisions, TLD Health Check lets you compare TLDs to see where the major cybersquatting enforcement is happening. DI PRO’s intelligent algorithms allow you to see only successful UDRP cases.
  • TLD Health Check screenshotMeasure registrar market share. Different registrars excel at selling different TLDs. TLD Health Check measures registrar growth and ranks companies by their market share in each TLD.
  • (Coming Soon) Monitor secondary market activity. Leveraging a database of tens of thousands of reported domain name sales, you can see where the secondary market action is.

The services is built on top of a massive database, over two years in the making, comprising hundreds of thousands of records dating back to 1999. Our data sets are updated hourly, daily, weekly and monthly.
Get Access
TLD Health Check screenshotTLD Health Check is currently in open subscriber beta, and we have an aggressive program of weekly feature upgrades and additions planned for the next few months.
The service can be accessed now by DI PRO subscribers, for no additional charge.
If you’re not already a PRO subscriber, please visit our subscriptions page to sign up for instant access.
New Monthly Subscription Option
To coincide with the launch of TLD Health Check, and in response to many reader requests, today we’re also announcing a new monthly subscription option for DI PRO.
Not only that, but any new subscriptions processed before March 15 will receive a perpetual $10-per-month discount if the subscriber uses the discount code NYC when subscribing.
DI is attending the Digital Marketing & gTLD Strategy Congress in New York today and tomorrow. Fellow attendees are welcome to request an in-person TLD Health Check demo.

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Demand Media hit with first new gTLD objection

Kevin Murphy, March 11, 2013, Domain Policy

With the deadline for filing objections against new gTLD applications fast approaching, the first such objection has been revealed.
Starting Dot, which has applied for .immo and other strings, has filed a String Confusion Objection against Demand Media’s .immobilien bid, according to the International Center for Dispute Resolution.
“Immobilien” is German for “homes” in the real estate context, while “immo” is a shorthand for the same term in a number of European languages.
The objection itself does not appear to have been published, but one can only assume that it’s based on the similarity of meaning between the two strings, rather than visual or audible confusion.
While it’s the first objection to be published, based on conversations with many interested parties I’m expecting a LOT more.
The deadline for filing objections using any of the four available mechanisms, is Wednesday.

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Chehade commits to grow the number of domain registrars in Africa

ICANN CEO Fadi Chehade has told African policymakers that he wants to make it easier for companies on the continent to become accredited registrars, saying he wants to grow the number five-fold in a year.
During a “Multistakeholder Internet Governance” meeting in Addis Ababa earlier this week, Chehade said he wants to see 20 more African registrars, in addition to the paltry five accredited today.
It can be hard for African firms to become accredited under ICANN’s rules due to assurances needed from banks and insurance companies, he said.

We committed to do our best. Dr Tarik Kamel and I made commitments yesterday. We will be talking to the African Development Bank, we will work with [the United Nations Economic Commission for Africa], we have relationships in the insurance industry. We will put our personal relationships — and I hope all of us cooperate on that — to change this.
We made a public commitment, that I may regret, that we will try as fast as we can by Durban to at least have some initial answers to facilitate this for the African community, because hopefully with your help and your assistance within a year we won’t be saying we have five accredited registrars, we’ll be saying we have 25.

The ICANN meeting in Durban, South Africa is slated for mid-July.
Chehade also told the audience that it didn’t make any sense that African domain registration money was flowing out of the continent due to the outdated registration practices of ccTLD operators there.
The speech largely focused on macro-policy issues of internet governance affecting the continent.
Naturalized American Chehade wore his Egyptian hat throughout, referring to Africans as “we”.
Listen to the whole 30 minutes here.

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Registrars and ICANN hit impasse on new RAA

ICANN and its accredited domain name registrars have hit a brick wall in their long-running contract negotiations, after ICANN demanded the right to unilaterally amend the deal in future.
Documents published by ICANN this morning reveal that the two sides have reached agreement on almost all of their previous sticking points — including the extremely thorny issue of Whois verification — but have run into some fundamental, eleventh-hour disagreements.
As we’ve been reporting for the last couple of weeks, the big unresolved issue is ICANN’s unilateral right to amend the Registrar Accreditation Agreement in future, which registrars absolutely hate.
Death of the GNSO? Again?
The text of that proposed change has today been revealed to be identical to the text ICANN wants to insert into the Registry Agreement that all new gTLD registries must sign.
It gives ICANN’s board of directors the right, by two-thirds majority, to make essentially any changes they want to the RA and RAA in future, with minimal justification.
Registrars are just as livid about this as new gTLD applicants are.
The proposed change appears to be one of those introduced last month that ICANN said “[stems] from the call by ICANN’s CEO, Fadi Chehadé, to work to improve the image of the domain industry and to protect registrants”.
Chehadé has been on the road for the last couple of months trying to raise ICANN’s profile in various stakeholder groups in the private and public sectors around the world.
One of the memes he’s impressed upon contracted parties and others is that people don’t trust the domain name industry. Part of ICANN’s solution, it seems, is to grant its board more powers over registries and registrars.
But the Registrars Stakeholder Group reckons unilateral amendments would torpedo the multistakeholder process by emasculating the Generic Names Supporting Organization. It said:

The effect of such a clause in the primary agreements between ICANN and its commercial stakeholders would be devastating to the bottom-up, multi-stakeholder model.
First, it will effectively mean the end of the GNSO’s PDP [Policy Development Process], as the Board will become the central arena for all controversial issues, not the community.
Second, it creates an imbalance of authority in the ICANN model, with no limits on the scope or frequency of unilateral amendments, and no protections for registrars and more important registrants.

That’s the biggest barrier to an agreement right now, and it’s one shared by the entire contracted parties constituency of ICANN. Expect fireworks in Beijing next month.
Friction over new gTLDs
Registrars and registries are also angry about the fact that ICANN wants to force registrars to adopt the 2013 RAA, even if their 2009 or 2001 deals are still active, if they want to sell new gTLDs.
RrSG secretary Michele Neylon of Blacknight told DI today that it looks like ICANN is trying to “drive a wedge” between registrars and registries.
Here’s why:
ICANN is trying desperately to stick to its new gTLD program timetable, which will see it start signing Registry Agreements with new gTLD applicants in late April.
But it wants the base RA to include a clause obliging registries to only sell via registrars on the 2013 RAA.
Because the 2013 RAA is not yet finalized, registrars could potentially hold up the approval and delegation of new gTLDs if they don’t quickly agree to the changes ICANN wants.
According to Neylon, the documents released today have been published prematurely; with a little more time agreement could be reached on some of the remaining differences.
Again: expect fireworks in Beijing.
Whois records will be verified
But the new RAA is not all friction.
ICANN and registrars have finally come to agreement on important topics where there was previously sharp divergence.
Registrars have agreed to a new Whois Accuracy Program Specification that is a lot weaker than ICANN had, working from a blueprint laid out by governments and law enforcement agencies, first asked for.
Under the 2013 RAA signed-up registrars will have to start verifying certain elements of the contact information submitted by their registrants.
Notably, there’ll be a challenge-response mechanism for first-time registrants. Registrars will ask their customers to verify their email address or enter a code that has been sent to them via SMS text message or phone.
Note the “or” in that sentence. ICANN and law enforcement wanted registrars to do email “and” phone verification, but ICANN appears to have relented after months of registrars yapping about costs.
In future practice, because email verification is far easier and cheaper to implement, I’d be surprised if phone verification is used in anything but the rarest of cases.
Other data points will also be verified, but only to see that they conform to the correct formats.
Registrars will have to make sure that mailing addresses meet the Universal Postal Union standards, and that phone numbers conform to International Telecommunications Union formatting, for example.
They’ll also have to verify that the street address exists (if they have access to that data) but there will be no obligation to make sure that address and phone number actually belong to the registrant.
Registrants that provide patently false information that fails registrar verification will get 15 days to correct it or face the suspension of their domains.
ICANN wants registrars to also verify their customer records (which are usually different to the Whois records and, anecdotally, more accurate anyway) too, but registrars have so far not agreed to do so.
Taken as a whole, at first reading it’s difficult to see how the new Whois verification spec will do anything to prevent fast-turnover abuse such as phishing, but it may go a small way to help law enforcement investigate longer-term scams such as counterfeit goods sites.
The proposed 2013 RAA, along with more explanatory documents than you could possibly read in a coffee break is now open for public comment, with the reply period closing shortly after the Beijing meeting.

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Go Daddy cozies up new gTLD players, drops its own .home and .casa bids

Go Daddy has changed tack in its new gTLD strategy, dropping its own applications and positioning itself strongly as a registry-neutral channel to market.
The company spent yesterday wooing new gTLD applicants at a specially convened meeting in its native Arizona; there were representatives from about half of the applied-for gTLDs in attendance.
But apart from the fact that Go Daddy has withdrawn its applications for .home and .casa — and symbolically dropped the “.com” from its logo — the company is playing its strategy pretty close to its chest.
Director of policy planning James Bladel told DI that the meeting was more about “starting a conversation” with registries, rather than laying out Go Daddy’s specific plans for new gTLDs.
The company will be a hugely important channel to market for many gTLDs, and competition for store-front space on the Go Daddy home page is expected to be fierce.
Existing big-volume “new” TLDs, such as .info and .co, can attribute much of their success to Go Daddy.
It’s responsible for well over half of all .info domains registered today and .CO Internet’s success to date can no doubt be attributed in no small part to its strong relationship with the company.
But Bladel would not be drawn on Go Daddy’s specific plans for the next wave of gTLDs.
While the company has a patent on a method of allocating shelf space via an Adsense-style bidding technology, Bladel said Go Daddy has not yet decided whether to use that system.
The company could also use other methods, algorithmic rather than commercial, for selecting which TLDs to display to users, such as geographic location, he said.
Another conversation that needs to happen relates to launch timing.
Ideas may include staggering launches to benefit from joint marketing efforts, or pooling launches into big-draw “launch day” events, Bladel speculated, noting that the company is more interested in hearing ideas from gTLD applicants right now.
While Go Daddy will continue to push its application for .godaddy dot-brand, with the loss of .home and .casa it will no longer be in the mass-market gTLD registry game.
Registry-neutral registrars may actually be a rarity in the new gTLD era.
eNom will certainly walk away with interests in more than a few gTLDs, directly and via its deal with Donuts. Tucows, Web.com and Directi will also have some, depending on contention set results.
Apart from Go Daddy, the only other top-ten registrars without their own gTLDs could be United and FastDomains.

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