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Company files for injunction against 189 new gTLDs

Kevin Murphy, October 12, 2012, Domain Registries

Alternate root player Name.Space has sued ICANN for trademark infringement and anti-competitive behavior, saying “insiders” have conspired to keep it out of the new gTLD program.
If successful, the suit would prevent dozens of new gTLD applicants from having their applications approved.
The lawsuit, filed in California this week, follows a warning the company fired at ICANN this March.
While only ICANN is named as a defendant, the suit alleges that the new gTLD program was crafted by and is dominated by “ICANN insiders” and “industry titans”.
It wants an injunction preventing ICANN delegating any of the 189 gTLD strings that it claims it has rights to.
It also fingers several current and former ICANN directors, including current and former chairs Steve Crocker and Peter Dengate Thrush, over their alleged conflicts of interest.
Name.Space has been operating 482 diverse TLDs — such as .news, .sucks, and .mail — in a lightly used alternate root system since 1996.
Most people can’t access these zones and are unaware that they exist.
The company applied to have 118 of these strings added to the root in ICANN’s “proof of concept” gTLD expansion in 2000, when the application fee was $50,000, but was unsuccessful.
Now, the company claims the new gTLD program is “an attack on name.space’s business model and a mean by which to create and maintain market power in the TLD markets”.
The complaint (pdf) states:

Rather than adopting a procedure to account for the pending 2000 Application and facilitate the expansion of TLD providers in the DNS, ICANN has adopted a procedure so complex and expensive that it once again effectively prohibited newcomers from competing. It instead has permitted participation solely by ICANN insiders and industry titans.

If it had applied for all 118 again in this year’s round, it would have cost almost $22 million (though it would have qualified for an $83,000 discount on a single bid).
Name.Space is asking for damages and an injunction preventing ICANN from approving 189 gTLDs that match those it currently operates in its alternate root.
The full list of affected applications is attached to the complaint.

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Hey, domainers, watch Frank Schilling tell you why ICANN is cool

Kevin Murphy, October 11, 2012, Domain Policy

I think this is the first time I’ve seen noted domainer Frank Schilling appearing in an ICANN-related video.
It was produced by Google during ICANN’s meeting in Prague a few months ago, and published on YouTube this week.
Alongside many familiar faces from the ICANN-policy-wonk side of the industry, you’ll also see Schilling, who is of course behind portfolio gTLD applicant Uniregistry, telling you:

What I like about ICANN is just that: it’s not controlled by anyone, yet it’s controlled by you. You control it just by contributing to the process. And it’s open to anyone in any language, anywhere in the world


I think the video pretty much nails it.
ICANN 45 starts in Toronto, Canada this weekend. You don’t need to be there to get involved.

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Council of Europe has Whois privacy concerns too

Kevin Murphy, October 11, 2012, Domain Policy

The Council of Europe has expressed concern about the privacy ramifications of ICANN’s proposed changes to Whois requirements in the Registrar Accreditation Agreement.
In a letter this week (pdf), the Bureau of the Consultative Committee of the Convention for the Protection of Individuals with regard to Personal Data (T-PD) said:

The Bureau of the T-PD took note of the position of the Article 29 Data Protection Working Parking in its comments of 26 September 2012 on the data protection impact of the revision of these arrangements concerning accuracy and data retention of the WHOIS data and fully shares the concern raised.
The Bureau of the T-PD is convinced of the importance of ensuring that appropriate consideration be given in the ICANN context to the relevant European and international privacy standards

The letter was sent in response to outreach from ICANN’s Non-Commercial Users Constituency.
The Article 29 letter referenced said that EU registrars risked breaking the law if they implemented ICANN’s proposed data retention requirements.
Earlier today, we reported on ICANN’s response, which proposes an opt-out for registrars based in the EU, but we noted that registrars elsewhere are unlikely to dig a two-tier RAA.

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Nominet chair rebuts “skewed and inaccurate” whistleblower claims

Kevin Murphy, October 11, 2012, Domain Registries

Nominet chair Baroness Rennie Fritchie has apologized for “embarrassment” caused by leaked emails that suggested Nominet and UK officials tried to avoid freedom of information laws.
But she has rebutted allegations that Nominet executives conspired to orchestrate a government takeover of the .uk namespace during a fractious board dispute back in 2008.
In a statement to Nominet members today, Fritchie said she has conducted a “fact-finding review” of the allegations and had “concluded that Nominet did not manufacture Government concern.”
As we reported a month ago, former policy director Emily Taylor made a number of claims about Nominet’s actions in 2008, when executives perceived a threat to control of the board by certain vocal domainers.
In order to ensure a friendlier board, Nominet approached the UK government for help, according to Taylor.
This led to an independent review, a restructuring of Nominet’s board, and powers for the government to take over the running of .uk being included in the Digital Economy Act of 2010.
Nominet has maintained, and Fritchie now says she has confirmed, that the concerns originated with the government, BT and the Confederation of British Industry, and not the other way around.
Fritchie wrote:

we have been extremely disappointed to see that correspondence from a troubled time in Nominet’s history has led to a skewed and inaccurate interpretation of events.

Having personally considered all available evidence, I have concluded that Nominet did not manufacture Government concern. There were longstanding issues, and the failure to win support for the proposed improvements in our governance at the AGM in 2008 was the catalyst that put Nominet’s problems firmly in the spotlight.
I have also been reassured that the concerns raised by CBI and BT representatives immediately following the 2008 AGM were not concocted by Nominet.

It also emerged last month that UK government officials and Nominet executives had been communicating via private email accounts, apparently in order to avoid Freedom of Information Act requirements.
One Nominet email from 2008 provided to DI signed off with “It feels wonderful to work free from fear of FOI !!”
It is for this email that Fritchie appears to be apologizing. She wrote:

We would however like to apologise for the embarrassment caused to members by an inappropriate suggestion, made in an email from a Nominet employee, that information could or should be deleted by officials to avoid an anticipated Freedom of Information request. This was a misguided attempt to ensure that open and honest conversations about how to secure the membership model of Nominet could take place, without being inappropriately influenced by those with vested interests. I would like to assure members that this was the result of troubled times, and is not at all representative of the way that Nominet operates.

The message was posted to Nominet’s members-only forum this afternoon.
The story may not be over yet, however.
Last month, Andrew Smith, Member of Parliament for Nominet’s home town of Oxford, told DI that he had referred Taylor’s freedom of information claims to Head of the Home Civil Service and the Chair of the Department of Culture, Media and Sport Select Committee.
“These are very serious matters and it is important they are properly investigated,” he said.

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ICANN says EU registrars could be exempt from stringent new Whois rules

Kevin Murphy, October 11, 2012, Domain Registrars

Registrars based in the European Union could be let off the hook when it comes to the Whois verification requirements currently under discussion at ICANN.
That’s according to ICANN CEO Fadi Chehade, who this week responded to privacy concerns expressed by the Article 29 Working Party, a EU-based quasi-governmental privacy watchdog.
The Working Party said last month that if ICANN forced EU registrars to re-verify customer data and store it for longer than necessary, they would risk breaking EU privacy law.
Those are two of the many amendments to the standard Registrar Accreditation Agreement that ICANN — at the request of governments and law enforcement — is currently pushing for.
In reply, Chehade noted that ICANN currently plans to give registrars an opt-out:

ICANN proposes to adapt the current ICANN Procedures for Handling Whois Conflicts with Privacy Law, to enable registrars to seek an exempton from these new RAA WHOIS and data protection obligations in the even that the obligations would cause registrars to violate their local laws and regulations.

He also said that the Governmental Advisory Committee has “endorsed” the provisions at question, and encouraged the Working Party to work via the GAC to have its views heard.
I understand that registrars based in the US and elsewhere would not respond favorably to what would essentially amount to a two-tier RAA.
Some of the RAA changes would have cost implications, so there’s an argument that to exempt some registrars and not others would create an un-level competitive playing field.
The Article 29 Working Party is an advisory body, independent of the European Union, comprising one representative from the data privacy watchdogs in each EU state.
Some GAC representatives said during the ICANN meeting in Prague this June that they had already factored privacy concerns into their support for the RAA talks.
It’s going to interesting to see how both registrars and the GAC react to the Article 29 developments at the Toronto meeting, which begins this weekend.

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New gTLD winners will be decided by lottery after all

Kevin Murphy, October 11, 2012, Domain Policy

ICANN will use a lottery to decide the order in which to process new gTLD applications, after a surprising U-turn.
ICANN this morning published a proposal that would prioritize applications based on a $100-a-ticket prize draw that would run in early December.
The results of the draw would be used to sequence applications for Initial Evaluation and, if successful, contract negotiations, pre-delegation testing and eventual delegation.
ICANN says the draw would give it an exemption to California’s anti-lottery laws, which was the primary reason it has so far resisted chance-based solutions to the batching/sequencing problem.
It’s applied for a special “fundraising drawings” license based on its non-profit status, which it expects to be granted before the end of November.
The license appears to have certain restrictions that confuse matters for applicants — they won’t be able to buy their tickets over the internet.
They’ll have to pay, in-person, for a paper ticket. But ICANN says that it can supply proxies for applicants at no cost, eliminating the need to fly a representative to California.
The whole process will be manual, so there’s little risk of an embarrassing Digital Archery-style snafu.
Applications for internationalized domain names would be given priority.
The draw would be run at some point between December 4 and 15.
Under the proposal, the results of Initial Evaluation would start to be released from March next year, starting with IDNs, at a rate of about 150 per week.
ICANN has also decided to extend the period for official objections to March 13, 2013, two months more than the current plan, due to requests for more time from potential objectors.
But the extension is unlikely to appease these objectors, which will still have to file objections before they know whether applications have passed Initial Evaluation, wasting money.
New gTLD applicants that pass Initial Evaluation, are not in contention and have no objections will have the option to immediately sign the standard registry contract.
Applicants wishing to negotiate their contracts will be processed according to their draw number.
However, no contracts will be signed before the ICANN meeting in Beijing next April. This is because the Governmental Advisory Committee does not expect to issue its formal Advice on applications before then.
ICANN expects to sign contracts and do pre-delegation testing at a rate of about 20 per week, which is roughly within the maximum 1,000-per-year delegation rate it has committed to.
The effect of this is that the first new gTLDs are expected to go live in the DNS root in the second quarter of 2013, rather than the third quarter.
I believe most of the proposals will be welcomed by most applicants. A lottery was always the most favored solution.
There will be some criticisms, however.
There does not appear to be a method envisaged for swapping slots, for example, so portfolio applicants probably won’t get to choose which of their gTLDs is delegated first.
The whole proposal is open for public comment here.

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Domainers not welcome in one-character .org auction

Kevin Murphy, October 10, 2012, Domain Sales

The Public Interest Registry is to auction 85 one and two-character .org domain names, but only to organizations that promise to use them in a manner consistent with the .org brand.
The sell-off, branded Project94, will be handled by Go Daddy and eNom, which have each been provided with half of the available portfolio.
Discounting legacy registrations, 94 domains were released when PIR amended its contract with ICANN earlier this year, but nine of them are being held back because they match ccTLDs.
It’s going to be a straightforward auction, but to get a chance at bidding your idea will have to be vetted first.
“We want to see these names used in a way that reflects the brand attributes and the values of .org,” PIR CEO Brian Cute told DI today.
“Before getting into the auction there will be a filter where the applicant has to say the purpose to which they’re going to put the .org that they’ll be bidding on,” he said.
People wondering whether the .org auction is a park-and-flip opportunity seem to be out of luck.
I believe it’s the first time that a TLD registry has merged the RFP and auction phases of their allocation process when they release previously reserved one and two-character domains.
PIR, which is a non-profit, says it will earmark the auction funds for special projects, such as encouraging deployment of new technologies like DNSSEC.
The full list of names being sold can be found at Project94.org

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Donuts signs up to Architelos anti-abuse service

Kevin Murphy, October 10, 2012, Domain Services

Architelos has a secured its first major customer win for the NameSentry anti-abuse service that it launched back in August.
Donuts, the highest-volume portfolio gTLD applicant, has signed up for the service, according to the companies.
For Donuts, which is probably the applicant that makes opponents of new gTLDs the most nervous, it’s another chance to show that it’s serious about operating clean zones.
For Architelos, it’s a pretty significant endorsement of its new technology.
The NameSentry service aggregates abuse data from multiple third-party malware, spam and phising lists and presents it in a way that makes it easier for registries shut down bad behavior.

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Downtime emerges as key barrier to Trademark Clearinghouse changes

Kevin Murphy, October 10, 2012, Domain Services

The risk of embarrassing technical glitches is now the major stumbling block in discussions about the best way to deploy the forthcoming Trademark Clearinghouse for new gTLDs.
ICANN is worried about the “reputational implications” of the TMCH going offline if, as proposed by domain name registries, it is in the “critical path” of the live registration process.
The concerns emerged in a letter earlier this week, and were discussed during an ICANN conference call yesterday.
The TMCH is expected to be a big database of trademarks, used to support the Trademark Claims and Sunrise periods that new gTLD registries will have to offer.
The policy behind both rights protection mechanisms is settled (essentially), but the actual technical implementation is still open to question.
While ICANN and its two contractors — IBM and Deloitte — have been quietly working on their favored model for some months, the registries that will support most new gTLDs have their own model.
Neustar, ARI Registry Services, Verisign and Demand Media have proposed a TMCH design that they say would be less costly to registries (and therefore brand owners) as well as having certain security benefits.
The problem with the registry’s plan is that it calls for real-time interactions between registrars, registries and the TMCH during the Trademark Claims phase of new gTLD launches.
This would require the Clearinghouse to operate with 100% up-time, which makes ICANN very nervous. It said in its letter this week:

Though requirements for resiliency to guard against such failures will be in place, the risk and impact of a failure incident in a centralized live query system are significant and have an impact on the reputation and, therefore, the effectiveness of the rights protection mechanisms supported by the Trademark Clearinghouse. Such an event could have reputational implications for the Clearinghouse and the New gTLD Program.

If the Clearinghouse went down, the argument goes, it would prevent domain names being registered in new gTLDs.
This would look very bad for ICANN, which has already experienced a few embarrassing technical problems with the program. How its policies and processes perform with live gTLDs will be scrutinized intensely.
But the registries say they’ve mitigated the problem as much as they can in their centralized model.
“It only puts the Trademark Clearinghouse in the critical path for registration for a limited number of registrations,” Neustar vice president Jeff Neuman said on yesterday’s call.
“In our model if a domain name does not match a trademark in the Clearinghouse then the Clearinghouse never sees it, it doesn’t matter if the Clearinghouse is up or down,” he said.
The negative impact of downtime in this scenario is that registrars would not be able to show would-be registrants Trademark Claims notices. But it would not necessarily enable cybersquatting.
Neuman further argued that the TMCH should be covered by the same kinds of service level agreements and data escrow requirements as contracted gTLD registries, minimizing the risk of downtime.
The second major hurdle to the implementation talks is the relative lack to date of input from brand owners.
The intellectual property community has previously expressed reservations about any TMCH model that would enable data mining by bad actors or opportunistic registrars and registries.
Yes, it’s a data privacy issue. Brand owners are worried that the contents of the Clearinghouse could be used by competitors to find holes in their trademark protection strategies, or by scammers.
While yesterday’s call had more input from the trademark community, the real work will come next Wednesday during a session at ICANN 45 in Toronto.

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Directi to relaunch .pw as an open TLD

Kevin Murphy, October 8, 2012, Domain Registries

Directi will soon relaunch .pw, the ccTLD for the tiny Micronesian nation of Palau, as an open pseudo-gTLD.
The official launch of the registry will happen at the ICANN meeting in Toronto next week, according to Directi CEO Bhavin Turakhia, with a sunrise period kicking off in December.
It’s the first TLD for which Directi — an applicant for 30 new gTLDs as well as a top-ten registrar — will act as the registry.
.pwThe company will brand the offering around the retroactive acronym “Professional Web”.
Turakhia hopes success will come from a combination of low cost — registry fees are not yet finalized, but will be sub-.com, he said — and the fact that .pw is mostly virgin territory.
“It’s a pretty good pricing model,” he said. “We’re making sure that people have access to desirable names at an affordable cost.”
The company plans to run .pw “exactly like a gTLD”, with standard sunrise, landrush and registration lifecycle policies. It will even adopt the UDRP, Turakhia said.
CentralNic, which already runs subdomain services such as .gb.com and .us.com, has been hired to run the back-end, despite the fact that Directi is using ARI Registry Services for its gTLD bids.
Sunrise is expected to start in early December and run for about 70 days. Landrush will run for a month, starting in February 2013. Pricing has yet to be finalized.
Directi is currently looking for registrars to sell the domains, above and beyond its own network of registrars.
Directi obtained the exclusive license to .pw about four years ago via EnCirca, the registrar that attempted to relaunch .pw under the “Personal Web” slogan in 2004.
The company originally planned to use the second level as a bundled service to tie in with a social networking slash instant messaging product that it was working on, but those plans have changed.
As a result .pw hasn’t been accepting registrations for a while.
Palau is a Pacific island nation with only about 20,000 citizens. As such, .pw doesn’t have a great many legacy registrations.
One such registration is pay.pw, which Directi is using for a payment gateway service.
Turakhia said that six second-level domains have been reserved for Palau’s use: co.pw, ne.pw, or.pw, ed.pw, go.pw and belau.pw. No other two-letter domains will be available.

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