Will the Trademark Clearinghouse kill off premium domains?

Rules proposed for the new Trademark Clearinghouse threaten to cut off some of new gTLD registries major sources of early revenue, according to registry providers.
Premium domain sales and founders programs are among the now industry-standard practices that would be essentially banned under the current draft of the TMCH rules, they say.
The potential problems emerged in a draft TMCH Requirements document circulated to registries 10 days ago and vigorously discussed during a session at the ICANN meeting in Beijing last week.
The document lists all of the things that new gTLD registries must and must not, and may and may not, do during the mandatory Sunrise and Trademark Claims rights protection launch periods.
One of the bits that has left registries confused is this:

2.2.4 Registry Operator MUST NOT allow a domain name to be reserved or registered to a registrant who is not a Sunrise-Eligible Rights Holder prior to the conclusion of the Sunrise Period.

What this means is that trademark owners get first dibs on pretty much every possible string in every gTLD.
“Trademark owners trump everything,” Neustar business affairs veep Jeff Neuman said during the Beijing meeting. “Trademark owners trump every possible use of every possible name.”
It would mean, for example, that if a new gTLD wanted to allocate some names to high-profile anchor tenants during a “founders program”, it would not be able to do so until after the Sunrise was over.
Let’s say the successful applicant for .shop wants to reserve the names of hundreds of shop types (book.shop, food.shop, etc) as premium names, to allocate during its founders program or auction later.
Because the .shop Sunrise would have to happen first, the companies that the own rights to, for example, “wallpaper” or “butcher” (both real US trademarks) would have first rights to wallpaper.shop and butcher.shop, even if they only planned to defensively park the domains.
Because there’s likely to be some degree of gaming (there’s a proof-of-use requirement, but the passing threshold is pretty low), registries’ premium lists could be decimated during Sunrise periods.
If ICANN keeps its TMCH Requirements as they are currently written, new gTLD registries stand to lose a lot of early revenue, not to mention control over launch marketing initiatives.
However, if ICANN were to remove this rule, it might give unscrupulous registries the ability to circumvent the mandatory Sunrise period entirely by placing millions of strings on their premium lists.
“Registries should have discretion to schedule their start-up phases according to their business plans so long as rights protection processes are honored, so that’s the balancing we’ve tried to do,” ICANN operations & policy research director Karen Lenz said during Beijing.
“It’s trying to allow registries to create requirements that suit their purposes, without being able to hollow out the rights protection intention,” she said.
The requirements document is still just a draft, and discussions are ongoing, she added.
“It’s certainly not our intention to restrict business models,” Lenz said.
Registries will get some flexibility to restrict Sunrise to certain registrants. For example, they’ll be able to disqualify those without an affiliation to the industry to which the gTLD is targeted.
What they won’t be able to do is create arbitrary rules unrelated to the purpose of the TLD, or apply one set of rules during Sunrise and another during the first 90 days of general availability.
The standard Registry Agreement that ICANN expects all new gTLDs to sign up to does enable registries to reserve or block as many names as they want, but only if those names are not registered or used.
It seemed to be designed to do things like blocing ‘sensitive’ strings, rather like when ICM Registry reserved thousands of names of celebrities and cultural terms in .xxx.
The Requirements document, on the other hand, seems to allow these names being released at a later date. If they were released, the document states, they’d have to be subject to Trademark Claims notices, but not Sunrise rules.
While that may be a workaround to the premium domains problem, it doesn’t appear to help registries that want to get founders programs done before general availability.
It seems that there are still many outstanding issues surrounding the Trademark Clearinghouse — many more than discussed in this post — that will need to be settled before new gTLDs are going to feel comfortable launching.

20 Comments Tagged: ICANN, new gTLDs, sunrise, tmch, trademark claims, trademark clearinghouse

ICANN cancels New York new gTLD party

ICANN has decided to call off its big New York City new gTLD launch “party”, DI has learned.
The high-profile media event, scheduled for April 23, was set to feature an appearance from mayor Michael Bloomberg and was expected to be a coming-out party for new gTLDs.
The original plan was for ICANN to sign the first registry agreements with new gTLD applicants during the event, but that notion was later scrapped due to ongoing contract talks.
However, during the public forum at the ICANN Beijing meeting last week, CEO Fadi Chehade said that the event was still going ahead.
That, according to an ICANN email sent to registries and registrars today, appears to be no longer the case. The email cited “current timelines” as the reason for delaying the event.
The Registry Agreement and Registrar Accreditation Agreement still under discussion between ICANN and contracted parties, and there are other factors in play such as the Governmental Advisory Committee’s wide-ranging advice from Beijing and continued uncertainties about the Trademark Clearinghouse.
With so much up in the air, a public awareness-raising event for the program may have been seen as premature.
A second, private set of meetings between ICANN and domain name companies, also scheduled for April 23 in New York, is still going ahead, according to the ICANN email.
Following on from discussions held over the last few months, the New York talks will focus on improving the image and professionalism of the domain name industry, one of Chehade’s pet projects.
Talks will cover items such as: forming a DNS industry trade association, a possible trust-mark scheme, conferences and media/analyst outreach.

10 Comments Tagged: gac, ICANN, new gTLDs, ra, raa, tmch, trust

Google domain hijacked in Kenya

Google’s Kenyan web site was reportedly inaccessible yesterday due to a hijacking of the company’s local domain name.
Google.co.ke briefly redirected users to a site bearing the slogan “hacked” on a black background, according to the Daily Nation. A change of DNS was blamed.
Google Kenya reportedly said:

Google services in Kenya were not hacked. For a short period, some users visiting www.google.co.ke and a few other website were re-directed to a different website. We are in contact with the organisation responsible for managing domain names in Kenya.

Google is of course a high-profile target; hackers often exploit weaknesses at third-party providers such as domain name registries in order to take down its satellite sites.
Its Irish site was taken down in October last year, after attackers broke in through a vulnerability in IEDR’s Joomla content management system.

4 Comments Tagged: google, hijacking, security

GAC Advice on new gTLDs “not the end of the story”

Governments may want new gTLD registries to become the internet’s police force, but ICANN doesn’t have to take it lying down.
ICANN is set to open up the shock Beijing communique to public comments, CEO Fadi Chehade said Friday, while chair Steve Crocker has already raised the possibility of not following the GAC’s advice.
“Advice from governments carries quite a bit of weight and equally it is not the end of the story,” Crocker said in a post-meeting interview with ICANN PR Brad White.
“We have a carefully constructed multi-stakeholder process,” he said. “We want very much to listen to governments, and we also want to make sure there’s a balance.”
The ICANN bylaws, he reminded us, give ICANN “a preference towards following advice from the GAC, but not an absolute requirement.”
That’s a reference the the part of the bylaws that enables ICANN’s board to overrule GAC advice, as long as it carries out consultation and provides sound reasoning.
It was invoked once before, when ICANN tried to get a handle on the GAC’s concerns about .xxx in 2011.
In this case, I’d be very surprised indeed if the GAC’s advice out of Beijing does not wind up in this bylaws process, if only because the document appears to be internally contradictory in parts.
It’s also vague and broad enough in parts that ICANN is going to need much more detail if it hopes to even begin to implement it.
It looks like at least 517 new gTLD applications will be affected by the GAC’s advice, but in the vast majority of cases it’s not clear what applicants are expected to do about it.
The first part of dissecting the Beijing communique will be a public comment period, Chehade said during the interview Friday. He said:

The community wishes to participate in the discussion about the GAC communique. So, alongside the staff analysis that is starting right now on the GAC communique we have decided to put the GAC communique out for public comment, soliciting the entire community to give us their input to ensure that the GAC communique is taken seriously but also encompasses our response, encompasses the views of the whole community.

Watch the full video below.

Comment Tagged: beijing, gac, gac advice on new gtlds, governmental advisory committee, ICANN, new gTLDs

Delay not certain as new gTLD contracts reopened

The launch window for new gTLDs may have just got pushed back another month or two, following the announcement of a new 42-day comment period on registry and registrar contracts.
But ICANN CEO Fadi Chehade said he’s looking at ways to streamline the process to offset the delays.
During the public forum in Beijing yesterday, ICANN CEO Fadi Chehade said that he’d cancelled a scheduled April 20 meeting of its board of directors, during which the new agreements were targeted for approval.
Instead, new versions of the 2013 Registrar Accreditation Agreement and new gTLDs base Registry Agreement will be posted for public comment next week.
As these are expected to be the final versions of both documents, they’re also expected to have full comment periods of 42 days — 21 for comments and 21 for replies.
“I believe that putting the last version of RAA for 2013 out for full public comment process is actually strengthening that agreement,” Chedhade said today. “It makes it an agreement of the community.”
For the Registry Agreement, Chehade said talks with registries are going well and that he hopes to have a version ready for public comment agreed with negotiators in less than a week.
Assuming an April 19 start, that puts the earliest possible date for ICANN board approval at May 31, assuming the board waits for the comment period to end before giving it the rubber stamp.
Before the contracts are approved, they can’t be signed by registries and registrars, and before they are signed new gTLD applicants cannot progress to the final pre-launch stages of the delegation process.
But Chehade is weighing an idea put forward during the public forum by Donuts’ Jon Nevett: why not allow applicants to complete pre-delegation technical testing before contract signing?
“We could potentially do something about advancing this step ahead of contracting, finding a way to start pre-delegation testing before contracting is done,” Chehade said.

2 Comments Tagged: beijing, ICANN, new gTLDs, pre-delegation testing, ra, raa

First new gTLD to fail evaluation revealed

With 132 new gTLD applications in receipt of their Initial Evaluation results, the first to fail has been revealed.
The failed application was for العلیان., an Arabic dot-brand filed by Olayan Investments Company, a 65-year-old privately held Saudi conglomerate.
It failed IE on financial grounds, according to its published results (pdf).
To pass the financial portion of the evaluations, applicants must score a minimum of eight points, scoring at least one point on each of the six questions.
While Olayan did score eight, it scored a zero on question 45, “Demonstration of Financial Capability”, which asks applicants to file audited or unaudited financial statements.
It appears that the applicant in this case did not provide enough information to be evaluated either during the application itself or in response to ICANN’s “clarifying questions”.
The application is now categorized as “Eligible for Extended Evaluation” by ICANN, meaning Olayan can provide extra information in an attempt to pass the failed question.
There’s no fee to do so in this case, but there would be a delay.
ICANN has so far delivered IE results for 132 applications for applications with priority queue numbers up to 149. Every other result to date has been a “pass”.

9 Comments Tagged: ICANN, initial evaluation, new gTLDs

GAC delivers sweeping advice that will delay scores of new gTLDs by months

ICANN’s Governmental Advisory Committee has issued the kiss of death to two new gTLD applications and sweeping advice that will delay many, many more.
In its Beijing communique, issued this hour, the GAC as expected delivered advice against whole categories of gTLDs and provided a lengthy but “non-exhaustive” list of affected bids.
First, the GAC said that the .africa bid filed by DotConnectAfrica and the .gcc bid filed by GCCIX WLL should be rejected. Those were full consensus objections.
Two gTLDs related to Islam: .islam and .halal, have non-consensus objections, and will now have to be considered by the ICANN board of directors directly.
The GAC also said it needed more time, until ICANN’s meeting in Durban this July, to consider delivering specific advice against 14 more:

the GAC advises the ICANN Board to: not proceed beyond Initial Evaluation with the following strings: .shenzhen (IDN in Chinese), .persiangulf, .guangzhou (IDN in Chinese), .amazon (and IDNs in Japanese and Chinese), .patagonia, .date, .spa, .yun, .thai, .zulu, .wine, .vin

On the issue of plurals versus singulars, the GAC said ICANN should “Reconsider its decision to allow singular and plural versions of the same strings.” This affects about 60 applications.
But it doesn’t end there.
As predicted, the GAC has also issued swathes of advice against scores of proposed gTLDs in 12 categories: children, environmental, health and fitness, financial, gambling, charity, education, intellectual property, professional services, corporate identifiers, generic geographical terms and inherently governmental functions.
A “non-exhaustive” list of applications has been provided for each category, covering well over 100, setting the stage for a fight over inclusion for any application that the GAC forgot about.
If the GAC gets its way, any application that falls into one of these categories will have to have enhanced regulations governing Whois, abuse mitigation, and security.
The GAC also has its say on “closed generics”, which it calls “exclusive registry access” strings. They should only be awarded if they serve a public interest purpose, the GAC said.
In short, the advice is extraordinarily broad and seems to delegate the considerable work of picking through the mess to ICANN.
More analysis later…

14 Comments Tagged: beijing, gac, gac advice on new gtlds, governmental advisory committee, ICANN, new gTLDs

Plural gTLDs give ICANN huge credibility risk

Can .pet and .pets co-exist peacefully on the internet? Or would they create such confusion among internet users that the whole new gTLD program would look irresponsible and foolish?
That’s the question ICANN is due to face today, as constituents line up at the public forum in Beijing to question its board of directors about the problem of plurals in new gTLDs.
The Governmental Advisory Committee, the Business Constituency, the Intellectual Property Constituency and others have all openly questioned the sanity of allowing plurals in recent days.
Right now there are 59 collisions between singular and plural gTLD applications (in English, at least, according to my analysis), involving 23 unique string pairs.
These are: .accountant(s), .auto(s), career(s), .car(s), .coupon(s), .cruise(s), .deal(s), .fan(s), .game(s), .gift(s), .home(s), .hotel(s), .kid(s), .loan(s), .market(s), .new(s), .pet(s), .photo(s), .review(s), .sport(s), .tour(s), .web(s) and .work(s).
None of these singular/plural clashes are currently in contention sets with each other, meaning there’s nothing to stop them all being delegated by ICANN. We could have a .loan alongside a .loans a year from now.
It seems to be only common sense that these clashes will cause frequent confusion. I doubt many would pass the longstanding “shouted across a crowded bar” test for URL clarity.
Would you want to register a .photo domain if you knew .photos was also available, and vice versa? If you did, wouldn’t you also want to register the .photos equivalent, just in case?
That’s one of the things ICANN’s commercial stakeholders are worried about: 23 extra TLDs means 23 extra defensive registrations for every brand they want to protect.
But there’s also the risk that gTLD registries that are successful in this application round will feel obliged to apply for the plurals of their strings in future rounds for defensive purposes.
The plurals issue also highlights shortcomings in how the new gTLD program was structured.
Why is this happening?
Unless two companies applied for the exact same strings, there are only two ways they could end up in a contention set together.
The first way was if the String Similarity Panel decided that the two strings were too visually similar to be allowed to co-exist, and that didn’t happen in the case of plurals. The panel only decided two things in the end: that I and l are confusingly similar, and that rn and m are confusingly similar.
To date, nobody except the Panel and ICANN knows what the logic behind this decision was, but it appears to be based on a very narrow (though not unreasonable) interpretation of what constitutes visual similarity.
The second way to end up in a contention set was to file a successful String Confusion Objection, or to be on the receiving end of one.
But of the 33 such objections filed, only 11 were filed against plurals, covering only six new gTLD strings in total: .pets, .tours, .webs, .games, .cars, and .kids. There was also an objection to .tvs, due to a clash with the existing ccTLD .tv.
(UPDATE: it appears that only approximately half of the String Similarity Objections filed have actually been revealed to date).
The main reason there weren’t more objections is that only existing registries and new gTLD applicants had standing to file an objection. Nobody else was allowed to.
Applicants were of course disincentivized from filing objections. Winning a String Confusion Objection doesn’t kill off your rival if you’re an applicant, it merely places both applications in a contention set.
Being in a contention set means you’re going to have to pay money to get rid of your competitor, either by negotiating some kind of private deal or by punching it out at auction.
By not filing objections, applicants in singular/plural situations risk looking like they don’t care about user confusion or are blasé about forcing defensive registrations.
(And by defensive registrations, remember here we’re not only talking about trademark owners, we’re talking about every potential future registrant in those gTLDs.)
They do have the slight excuse that they were only given a week or so to file objections after the results of the String Similarity Panel’s deliberations, delayed several times, were revealed.
There’s also the possibility that some of the apparent clashes won’t be as big of a concern in the marketplace due to, for example, registration restrictions.
What happens next?
The GAC is almost certain to issue advice about plurals in the next day or two, having brought the topic up with ICANN’s board of directors earlier this week.
The Business Constituency is also expected to make a few proposals directly to the board during the Public Forum in Beijing, Thursday afternoon local time.
The BC is likely to suggest, for example, that if one String Similarity Objection decision finds that a plural and a singular are confusingly similar, then that ruling should apply to all plural clashes, even if no objection has been filed.
It’s an audacious idea: it would certainly do the trick, but it would require some severe goal-post moving by ICANN at a time when it’s already under fire for pulling last-minute stunts on applicants.
It would also risk capturing fringe cases of strings that look plural but, in the context they are used in everyday language, are not (such as .new and .news).
Without some kind of action, however, ICANN is pretty much guaranteed to attract negative publicity.
Looking like it’s the stooge of the domain name industry, forcing regular registrants to double-buy their domains to the enrichment of registries and registrars, could look bad.

16 Comments Tagged: beijing, business constituency, gac, governmental advisory committee, ICANN, new gTLDs, string confusion objection, string similarity

ICANN headed for GAC fight over IGO pleading

ICANN may be heading for a bust-up with its Governmental Advisory Committee over the issue of a special domain name block-list for intergovernmental organizations.
The board of directors this week indicated at a meeting with the GAC in Beijing that it’s prepared to deny the GAC’s official demand for IGO protection at second level in all new gTLDs.
The GAC wants the names and acronyms of hundreds of IGOs — any organization that qualifies for a .int domain name — blocked, so that nobody would be able to register them, in every new gTLD.
It would, for example, give the European Forest Institute the exclusive rights to efi.tld in all future gTLDs.
Other well-known cybersquatting targets such as the European Organisation for Astronomical Research in the Southern Hemisphere (ESO), the North Atlantic Salmon Conservation Organization (NASCO) and the International Conference on the Great Lakes Region of Africa (ICGLR), would also be protected.
Some potentially very useful operational domains, such as a who.tld, would be banned (because of the World Health Organization).
Clearly, the GAC’s demands are a solution looking for a problem, giving special protection to many organizations that simply don’t need it, potentially at the expense of legitimate users.
The GAC had indicated that clashes with legitimate uses could be handled in a similar way to country names will be controlled in new gTLDs, where registries have to request special permission from the governments concerned to release the domains to others.
This would open a whole can of worms, however, the implications of which were outlined in an April 1 letter from ICANN board chair Steve Crocker to the GAC.
The board’s case was also succinctly articulated by director Chris Disspain during the board’s meeting with the GAC on Tuesday, and worth quoting in full. Disspain said:

This would mean that the Church of England would require the approval of the Council of Europe to register coe.church. It means the government of Canada would require the approval of the Andean Community to register can.anything. It means the International Standards Organization would require the approval of the International Sugar Organization to register iso.anything.
Even if this is what you intended in principle, the implementation of this advice is extremely problematic.
Who at each IGO would make a decision about providing consent? How long would each IGO have to provide consent? Would no reply be equivalent to consent? What criteria would be used to decide whether to give consent or not? Who would draft that criteria? Would the criteria be consistent across all IGOs or would consent simply be granted at the whim of an IGO.
The board believes that all these issues make it extremely difficult, if not impossible, to accept the advice as is.
Rather than rejecting this advice we seek an acknowledgement from the GAC in its communique that there are issues to be worked through, and we seek agreement with the GAC that they will work with the board and staff on these issues from now until Durban [this July] when the board will make a decision?

Disspain added that despite a board decision in November to set the ball rolling on IGO protections, it most certainly has not already decided to grant the GAC’s request.
This is an excellent development in GAC-board relations, in my view.
Rather than quaking at GAC advice, or rush-approving it to meet new gTLD program deadlines, the board is schooling the GAC about the obvious flaws in its position, and inviting it to think about the problems in a bit more depth, hearing alternate views, before lobbing advice grenades.
It’s a stark contrast to its treatment of the GAC’s 2011 advice on International Olympic Committee and Red Cross/Red Crescent names, where the board agreed to special protections in order to get the new gTLD program out of the door, creating thousands of extra person-hours of work for the GNSO.
When the GAC issued its IOC/RC/RC advice, it assured ICANN that the organizations concerned were special cases.
Others warned — presciently, as it turned out — that such protections would be merely the top of a slippery slope that would lead to a much longer list of protected names.
An effect of ICANN’s strong position now is that the slope is less steep and less slippery.
What happens next with the IGO names depends on the GAC’s communique from the ongoing Beijing meeting.
If it decides to engage with ICANN to sort out the problems it’s trying to create, they have until Durban to come to a deal. If it stands firm, ICANN may have to invoke the part of its bylaws that allows it to overrule the GAC, which has only done once before, when it approved .xxx.

4 Comments Tagged: governmental advisory committee, ICANN, igo, intergovernmental organizations, ioc

Donuts “almost doubles” $100m funding for new gTLD auctions

Somebody thinks new gTLDs will be a money-spinner.
Portfolio applicant Donuts, which is involved in 307 applications, has just announced a second funding round, greatly increasing its new gTLD contention set war-chest.
(UPDATE: This article originally stated, erroneously, that the funding was to the tune of $100 million. The exact amount has not actually been disclosed. Apologies for the error.)
It follows a $100 million funding round last year.
While the new amount was not disclosed, the deal “almost doubled” its funding, according to a press release, strongly suggesting it’s of a similar amount.
Existing investor Generation Partners and new investor Columbia Partners Private Capital were both involved in the round.
The company announced its first $100 million investment last year.
CEO Paul Stahura said the money was earmarked for new gTLD contention sets, many of which will be resolved at auction, and that “Donuts has further access to additional capital should the need arise”.
In a press release, he said:

We intended from the beginning to secure the gTLDs for which we applied. We enjoy tremendous support from our stockholders and lenders. This was an oversubscribed round that nearly doubles our capacity to compete. Our investors believe as strongly as we do that new gTLDs will bring relevance and specificity to registrants who have few usable choices today for Internet identities. This additional capital supports that belief, and we intend to deploy it to bring new gTLDs to market.

6 Comments Tagged: donuts, funding, ICANN, new gTLDs