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Indian domain conference attracts 4,000

Kevin Murphy, October 31, 2012, Domain Services

While US domain conferences are reportedly becoming sedate affairs, a domain-heavy summit that kicks off tomorrow in Mumbai has more than 4,000 signed-up attendees, according to organizers.
The two-day ResellerClub Hosting Summit, organized by Directi, may have “hosting” in the title, but its sponsors and agenda reveal a strong presence from the domain name industry.
Verisign is the major sponsor, plugging its .com and .net TLDs. Other sponsors include .org, .biz, .co, .asia and .pw.
The agenda features speakers from Public Interest Registry, ICANN, NameMedia and Directi new gTLD applicant Radix.

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Demand Media: ignore our Republican gTLD rivals

Kevin Murphy, October 31, 2012, Domain Registries

Demand Media has asked ICANN to “ignore” complaints from the US Republican party about its application for the .republican gTLD.
Last month, the Republican National Committee and the Republican State Leadership Committee submitted comments to ICANN arguing that Demand would be an unsuitable custodian for the gTLD.
Demand is best known for its “unofficial, mediocre and sometimes incorrect” content farms, such as eHow, the letter (pdf) said.
The company should not be allowed to run .republican because it implies endorsement by the Republican party, or some kind of community backing for a non-Community application, the letter said.
This week, Demand has responded, saying it’s nothing but competitive posturing, given that the RSLC has applied for .gop (for “Grand Old Party”, a nickname for the Republicans):
A letter to ICANN from Demand subsidiary and .republican applicant United TLD Holdco, says:

Because the RSLC and RNC have applied for .GOP, an arguably competing string, it is easy to see through these arguments and ignore them as nothing more than an attempt to undermine the credibility of United TLD in order to gain a competitive advantage.

By their own admission, RSCL and RNC agree that “.REPUBLICAN has the potential to be a very powerful gTLD.” It is natural then, that they would attempt to discredit United TLD in the hope of eliminating competition for their own string.

The thrust of Demand’s rebuttal is that Republicanism is not an exclusively American movement — other parties around the world use the name — and that it also has generic meaning.
It further argues that the quality of the content Demand provides elsewhere is irrelevant, because the company plans to sell .republican domain names, not produce content there.
Demand has also applied for .democrat, the other major US political party, but did not receive any complaints from the Democratic party during the designated ICANN comment period.

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Trademark protection stalemate follows ICANN 45

Kevin Murphy, October 30, 2012, Domain Policy

Trademark interests and new gTLD applicants are at odds about trademark protection — again — following the ICANN meeting in Toronto two weeks ago.
In a welcomed, not-before-time show of cooperation, the Intellectual Property Constituency and Business Constituency submitted to ICANN a bulleted list of requests for improved rights protection mechanisms.
The list is, for the most part, not particularly egregious — calling for a permanent Trademark Claims service and a Uniform Rapid Suspension service that meets its cost goals, for example.
But the New TLD Applicants Group (NTAG), an observer component of the Registries Constituency, has dismissed it out of hand, anyway, saying that the time for policy changes is over.
Here’s the IPC/BC list:

1. Extend Sunrise Launch Period from 30 to 60 days with a standardized process.
2. Extend the TMCH and Claims Notices for an indefinite period; ensure the process is easy to use, secure, and stable.
3. Complete the URS as a low cost alternative and improve its usefulness – if necessary, ICANN could underwrite for an initial period.
4. Implement a mechanism for trademark owners to prevent second-level registration of their marks (exact matches, plus character strings previously determined to have been abusively registered or used) across all registries, upon payment of a reasonable fee, with appropriate safeguards for registrants with a legitimate right or interest.
5. Validate contact information for registrants in WHOIS.
6. All registrars active in new gTLD registrations must adhere to an amended RAA for all gTLD registrations they sponsor.
7. Enforce compliance of all registry commitments for Standard applications.
8. Expand TM Claims service to cover at least strings previously found to have been abusively registered or used.

Most of these requests are not entirely new, and some have been rejected by the ICANN policy-development process and its board of directors before.
The NTAG points out as much in a letter to ICANN management last week, which says that new gTLD applicants paid their application fees based on promises in the Applicant Guidebook, which should not be changed.

Many of the BC & IPC proposed policy changes have been considered and rejected in no fewer than four different processes and numerous prior Board decisions. Indeed, many go far beyond the recommendations of the IRT, which was comprised almost exclusively of trademark attorneys. These last-minute policy recommendations amount to just another bite of the same apple that already has been bitten down to its core.
The new gTLD policy development process is over. Applicants relied on the policies in the final Guidebook in making business decisions on whether to apply. At the time that ICANN accepted applications and fees from applicants, ICANN and applicants entered into binding agreements. ICANN should not change these agreements unilaterally without extraordinary reason and especially not when it would materially harm the counterparties to the agreements.

The Applicant Guidebook, as it happens, asks applicants to explicitly acknowledge that ICANN may make “reasonable
updates and changes” to the rules, even after the application has been submitted.
But if applicants reckon changes would create a “material hardship”, ICANN is obliged to “work with Applicant in good faith to attempt to make reasonable accommodations in order to mitigate any negative consequences”

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Independent Objector launches web site

Kevin Murphy, October 26, 2012, Domain Registries

The new gTLD program’s Independent Objector has launched his own web site, independently from ICANN.
Alain Pellet is the French international law expert appointed in May to the IO role. The new web site also reveals that one Julien Boissise is assisting him.
The IO’s job is to file Community Objections and Limited Public Interest Objections against new gTLD applications, should the need arise.
In practice, I’d be very surprised to see any of the latter filed during the current application round, but I’d expect to see several Community Objections.
Pellet will file his objections before January 13, according to the web site. That’s the current objection-filing deadline, which ICANN plans to extend to March 13.

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US probing Verisign price hikes, .com contract may be extended

Kevin Murphy, October 25, 2012, Domain Registries

The US Departments of Commerce and Justice are investigating the price increase provisions of Verisign’s .com registry agreement.
Verisign CEO Jim Bidzos disclosed the “review” on a conference call with financial analysts tonight.
It is likely that it will last beyond November 30 2012, the date the current .com agreement expires, he said.
“There’s a possibility it will not be complete by November 30,” he said.
A special six-month extension is likely to be triggered, he said.
“The status of our ability to operate .com is not an issue here,” he said.
He declined to comment on questions related to the likelihood that the company would be forced to change its pricing plans.
Verisign has spent $3.9 million in legal and other fees related to the US review, it emerged during the call.
ICANN approved the contract, which gives Verisign the right to increase its .com registry fees by 7% in four of the next six years, in June.
ICANN will see an extra $8 million in revenue from Verisign as a result.
Due to the special nature of .com, Justice and Commerce approval is required before the contract can be renewed. Verisign had previously expected that to come before November 30.
Verisign shares are trading down 14% in after-hours trading following the news.

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Only 2% of phishing attacks use cybersquatted domain names

Kevin Murphy, October 25, 2012, Domain Registries

The number of cybersquatted domain names being used for phishing is falling sharply and currently stands at just 2% of attacks, according to the Anti-Phishing Working Group.
The APWG’s first-half 2012 report (pdf) identified 64,204 phishing domains in total.
Of those, the group believes that only 7,712 (12%) were actually registered by the phishers themselves. The rest belonged to innocent third parties and had been compromised.
That’s a steep drop from 12,895 domains in the second half of 2011 and 14,650 in the first half of 2011.
Of the 7,712 phisher-owned domains, about 66% were being use to phish Chinese targets, according to the APWG.
The group’s research found only 1,350 that contained a brand name or a misspelling of a brand name.
That’s down from 2,232 domains in the second-half of 2011, representing just 2% of all phishing domains and 17% of phisher-owned domains.
The report states:

Most maliciously registered domain strings offered nothing to confuse a potential victim. Placing brand names or variations thereof in the domain name itself is not a favored tactic, since brand owners are proactively scanning Internet zone files for such names.
As we have observed in the past, the domain name itself usually does not matter to phishers, and a domain name of any meaning, or no meaning at all, in any TLD, will usually do.
Instead, phishers almost always place brand names in subdomains or subdirectories. This puts the misleading string somewhere in the URL, where potential victims may see it and be fooled. Internet users are rarely knowledgeable enough to be able to pick out the “base” or true domain name being used in a URL.

Taken as a percentage of attacks, brand-jacking is clearly a pretty low-occurrence offence, according to the APWG’s numbers.
In absolute numbers, it works out to about 7.5 domain names per day that are being use to phish and contain a variation of the brand name being targeted.
Unsurprisingly, the APWG found that Freedom Registry’s .tk — which offers free registration — is the TLD being abused most often to register domains for phishing attacks.
More than half of the phisher-owned domains were in .tk, according to the report.

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First .post domains going live

Kevin Murphy, October 25, 2012, Domain Registries

After entering the DNS root in August, the .post gTLD has started accepting its first registrations.
The Italian postal service is one of the first web sites with a .post address to go live, according to the Universal Postal Union, the registry manager.
Its site at posteitaliane.post appears to be more than just a mirror of its main .it site.
The postal services from Malaysia and Brazil have also signed up, according to the UPU.
The UPU has grand plans for the gTLD, promising a “global track and trace application” that will “enable customers to track the items they have ordered until final delivery.”

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ICM puts $7.7 million of .xxx domains up for sale

Kevin Murphy, October 24, 2012, Domain Sales

Having already sold over $5 million worth of premium .xxx domains names, ICM Registry is putting another 1,000 names on the market, with a total purchase price of over $7.7 million.
Unusually for registry-reserved names, which usually end up at auction, all of the names are priced to sell.
Prices range from $220,000 for girls.xxx to $330 for provide.xxx.
Along with the full list of available names, ICM has also published some rough guides to likely traffic, based on its data gleaned from running search.xxx for the last few weeks.
A “Search Rank” stat ranks the popularity of the relevant keyword in search.xxx queries, while “Traffic Rank” divides the list into five categories by likely traffic volume.
ICM privately sold about $4 million of premium .xxx domains during its pre-launch Founders Program. Domainer Frank Schilling is believed to have invested seven figures.
Its biggest single sale to date is believed to be gay.xxx, which was snapped up for $500,000 last year.
ICM CEO Stuart Lawley told DI that the company still has about 500 premium names — including cams.xxx and tube.xxx — held in reserve to be released at a later date.

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CoCCA withdraws from APTLD over support for AusRegistry “monopoly”

Kevin Murphy, October 24, 2012, Domain Registries

Registry services provider CoCCA has pulled out of the Asia Pacific Top Level Domain Association after APTLD gave support to AusRegistry in its campaign to continue to run .au.
The company claims that APTLD — the Hong Kong-based association of ccTLD operators from the region — backed AusRegistry because AusRegistry is one of its largest donors.
The allegations center on a consultation run by AuDA, the policy overseer for Australia’s .au domain.
AuDA is currently deciding whether to renegotiate AusRegistry’s longstanding registry back-end contract — which is its preferred option — or open it up to public tender.
Draft recommendations published for comment last month suggest that the contract should remain with AusRegistry when it expires in 2014, albeit with renegotiated terms.
CoCCA is mad with APTLD for submitting a comment in support of these recommendations without first consulting its membership, suspecting AusRegistry’s sponsorship of APTLD might have something to do with it.
(October 24 Update: APTLD has submitted a revised comment here. The original submission can be found here.)
In an email to APTLD last week, CoCCA director Garth Miller said:

That AusRegistry, a large for-profit company that is an associate member of APTLD can simply make a phone call to a board member and get the board to make a public submission on behalf of all members that a scheduled public tender be cancelled and AusRegistry be awarded the contract – worth as much as several hundred million dollars, because they have made substantial contributions to the APLTD in the past and are likely to do so in the future if awarded the contract is, in my view, disturbing.

CoCCA, which already provides registry services for a few ccTLDs in the region and runs the .cx (Christmas Island) ccTLD, reckons the .au back-end contract should be opened to competitive bidding.
Judging by the other submissions to AuDA’s consultation, which are published here, it’s a minority view.
Every other comment — most of which were sent by .au registrars, even newcomers such as Go Daddy — supports the recommendation that AusRegistry should keep the deal.
And AusRegistry says that everything is above board. CEO Adrian Kinderis said in a statement sent to DI:

AusRegistry has been actively seeking acknowledgments and recommendations from valued partners and industry leaders over the past month. This included an approach to APTLD to seek a reference from them to acknowledge the positive industry engagement and continued support and participation of AusRegistry in the Asia Pacific domain name industry. APTLD responded positively to our request. AusRegistry has made no secret of such, and to suggest that clandestine calls have taken place is simply not true.

APTLD also denied that it has done anything wrong, though it does not appear to be denying that AusRegistry contributions may have played a part in its decision.
In a statement, APTLD told DI:

The allegation on APTLD must be a misunderstanding and is untrue. APTLD has no comments to make on the tendering process and whether a public tender should be conducted. APTLD does not have sufficient local knowledge to provide any constructive comments. All APTLD can provide is a reference for AusRegistry as an active and positive player in the domain name industry in the Asia Pacific region. Past contributions to APTLD is just one of the many factors when the Board considers whether to provide a reference to a particular member.

AusRegistry has been running the .au registry under contract with AuDA since 2001. It’s used its experience to launch ARI Registry Services, a pretty big player in the new gTLD back-end market.
Last time its .au deal was renegotiated, prices came down.

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Here’s how Donuts wants to resolve its 158 new gTLD contention fights

Kevin Murphy, October 23, 2012, Domain Registries

Donuts is backing a private auction model designed and managed by Cramton Associates as its preferred solution for resolving its 158 new gTLD contention sets.
The proposals, spelled out by auction design expert Peter Cramton during private sessions with new gTLD applicants, caused a bit of a buzz — not all of it positive — at the ICANN meeting in Toronto last week.
But Donuts co-founder Jon Nevett told DI today that Cramton has addressed rivals’ concerns and that Donuts wants to handle as many of its contention sets as possible via private auction.
The idea is that private auctions will be faster and cheaper for applicants than the process set out by ICANN as the “last resort” method for resolving contention sets.
In the ICANN model, all of the proceeds of the auction would go to ICANN, to be distributed to worthy causes at a later date. But with a private auction, the winning bidder pays the losers.
This makes it more attractive to applicants, according to Donuts.
“The cost of losing an ICANN auction is greater than the cost of losing a private auction,” Nevett said. “If you lose an ICANN auction you get nothing, zero, you lose your asset.”
But with private auctions, “it doesn’t hurt as much to lose, so the theory is the second-place guys won’t stretch as much,” he said.
Cramton is a professor of economics at the University of Maryland. A long-time auction specialist, he’s been involved in designing processes for selling off wireless spectrum around the world.
For new gTLDs, Cramton proposes an “ascending clock” auction. At each stage, the price is increased by the auctioneer and the bidders/sellers can either commit to pay that amount or drop out.
The last man standing wins the gTLD, paying the amount that the second-highest bidder was willing to pay.
The money would be divided equally between all the losing applicants. According to Cramton, the advantage over proportional distribution is that it does not encourage applicants to over-bid, keeping costs down.
Cramton’s original plan, which left some applicants scratching their heads last week, was to run the auctions in the first quarter of 2013, before ICANN announces the results of Initial Evaluation.
That would mean that losing bidders would get a 70% refund of their ICANN application fee, which may be an attractive percentage in the case of low-value strings.
But it also means that an applicant could win an auction and later discover its application has been rejected. The other applicants would have withdrawn, so the gTLD would just disappear into the ether.
Judging by a series of videos shot last week and published on Cramton’s YouTube account, many applicants are in favor of running the auctions after IE results have been announced.
Another complaint expressed by Donuts’ competitors last week is Cramton’s “all or nothing” approach, in which Donuts’ rivals would have to commit to use the auctions for their entire portfolio of applications.
According to Nevett, that idea is no longer on the table.
“In the beginning he was discussing that it would have to be all your TLDs or none, and I think a lot of applicants told him that was unacceptable, so he changed his view,” he said.
The idea now is that the auctions would proceed on a TLD-by-TLD basis.
Given that winning bidders are giving money to their competitors, another concern is the ordering of the auctions. You don’t necessarily want to give your rivals a big wedge of cash they can use to out-bid you on the next lot.
The preferred solution here appears to be a simultaneous auction, with all the participating contention sets being resolved at the same time.
There was also a deal of suspicion in Toronto about whether Cramton would be biased towards Donuts, given that Donuts is responsible for finding Peter Cramton and introducing him to the gTLD program.
But Nevett said that Donuts has not contracted with Cramton. Peter Cramton showed up in Toronto on his own dime and has not required an up-front payment from Donuts, Nevett said.
“Every applicant has a veto on whether to participate, and it won’t happen unless every applicant wants to do it,” Nevett said. “Our incentive is to have an auction provider who is attractive to every applicant.”
“Our goal is to get as many applicants to participate in a private auction, so we need the auction to be designed in a way that is simple, fair and inclusive,” he said.
But there’s no denying that Donuts has a greater incentive than most to have a consolidated auction. By its own admission, it’s an eight-person operation without the manpower to negotiate 158 contention sets.
Cramton’s materials from last week’s Toronto sessions can be found at applicantauction.com or here.

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