Court rules YouPorn can sue ICANN for alleged .xxx antitrust violations

A California court today ruled that ICANN is subject to US antitrust laws and therefore the lawsuit filed by YouPorn.com owner Manwin Licensing over the .xxx gTLD can proceed.
In a mixed ruling, the Central District of California District Court granted some parts of ICM Registry and ICANN’s motions to dismiss the case and rejected others.
Here’s what it had to say on the subject of antitrust law, which ICANN argued back in January did not apply to it because it “does not engage in trade or commerce”:

The Court finds the transactions between ICANN and ICM described in the First Amended Complaint are commercial transactions.
ICANN established the .XXX TLD. ICANN granted ICM the sole authority to operate the .XXX TLD. In return, ICM agreed to pay ICANN money.
This is “quintessential” commercial activity and it falls within the broad scope of the Sherman Act. Even aside from collecting fees from ICM under the contract, ICANN’s activities would subject it to the antitrust laws.

That’s a pretty definitive knock-back for ICANN’s ballsy opening manoeuvre.
The court is allowing Manwin’s claims against ICANN to proceed. Manwin has until September 9 to amend and re-file its complaint.
As you may recall, Manwin sued ICANN and ICM last November, alleging that they conspired to break competition law by, among other things, forcing companies to defensively register .xxx domains.
ICM and ICANN filed separate motions to dismiss the case on seven grounds, but according to today’s ruling only two of these requests were successful.
What strikes me as particularly interesting on a first read are the definitions of the relevant domain name markets.
Under the Sherman Act, antitrust allegations have to be based on a defined “market”. Manwin’s complaint was based on the markets for “defensive registrations” and “affirmative registrations”.
The court ruled today that the company failed make the case that “affirmative registrations” is a market — because Manwin is happily running hundreds of porn sites in .com:

The Court finds Plaintiffs have failed to adequately plead the affirmative registration market. Plaintiffs have not alleged why other currently operating TLDs are not reasonable substitutes to the .XXX TLD for hosting adult entertainment websites. To the contrary, Plaintiffs allege that Manwin’s own website YouPorn.com is the most popular free adult video website on the internet.

However, the court found that “defensive registrations” is a market for the purposes of this case.
I am not a lawyer, but my sense is that this (pdf) is important stuff.
Lawyers: do feel free to chip in in the comments or via email.

13 Comments Tagged: antitrust, icm registry, manwin, xxx, youporn

Is .city confusingly similar to .citi? UDRP says yes

In one of the more surprising twists to hit the new gTLD program, Citigroup has claimed that its proposed dot-brand gTLD, .citi, is not “confusingly similar” to the proposed generic gTLD .city.
The company appears to be trying to avoid getting into a contention set with the three commercial applicants for .city, which would likely put it into an expensive four-way auction.
It’s a surprising move because you’d expect a financial services company to want to at least try to mitigate the risk of future .city/.citi typo-based phishing attacks as much as possible.
Indeed, its .citi application states that the mission of the gTLD “is to further assist Applicant in accomplishing its mission of providing secure online banking and financial services”.
Nevertheless, the company is now arguing, in a few comments filed with ICANN today, this:

CITI and CITY are not so similar in an Internet context as to create a probability of user confusion if they are both delegated into the root zone. Thus, the .CITI application should not be placed into a contention set with the .CITY application.

The new Citigroup position is especially bewildering given that it has argued the exact opposite — and won — in at least two UDRP cases.
In the 2009 UDRP decision Citigroup Inc. v. Domain Deluxe c/o Domain Administrator, Citigroup contended that:

Respondent’s citywarrants.com domain name is confusingly similar to Complainant’s CITIWARRANTS mark.

The panelist in the case concluded that the Y variant of the name was merely a “mistyped variation” of and “substantively identical” to the Citigroup trademark.
A similar finding appears to have been handed down in Citigroup v Yongki, over the arguably generic citycard.com, but the decision is written in Korean so I can’t be certain.
The company’s current view, which I’m going to go out on a limb on and characterize as expedient, is that ICANN has delegated multiple ccTLDs that have only one character of variation in the past (it hasn’t — the ccTLDs it cites all pre-date ICANN) without causing confusion.
It also states in its comments that the meaning and proposed usage of the two strings is “very different” (which one commenter has already suggested is historically dubious).
So what’s going on here?
Is Citigroup really willing to risk potential phishing problems down the line to save a few measly bucks today? On the face of it, it looks that way.
If it is put in a contention set with the three .city applicants, it could wind up at auction against Donuts ($100m funding), TLD Registry Ltd (apparently backed by the Vision+ fund) and Directi.
Will Citigroup’s gambit pay off?
That’s down to a) the String Similarity Panel and b) whether any of the .city applicants tries to force the company into the contention set via a String Confusion Objection, which seems unlikely.

9 Comments Tagged: .citi, .city, citigroup, phishing, string confusion objections, string similarity, udrp

More than half of new gTLD apps have comments

Over half of ICANN’s 1,930 new generic top-level domain applications have received comments, two days after the original deadline for having them considered expired.
There are 6,176 comments right now, according to the ICANN web site, and the DI PRO database tells me that they’ve been filed against 1,043 distinct applications covering 649 unique strings.
It looks like .sex is in the lead, with 275 comments — I’m guessing all negative — followed by its ICM Registry stablemates .porn (245) and .adult (254), due to the Morality in Media campaign.
The controversial dot-brand bid for .patagonia, which matches a region of Latin America, has been objected to 205 times.
Some that you might expect to have created more controversy — such as .gay (86) and .islam (21) — are so far not generating as many comments as you might expect.
Donuts has received the most comments out of the portfolio applicants, as you might expect with its 307 applications, with 685 to date.
Famous Four Media’s applications have attracted 416 and Top Level Domain Holdings 399.
Despite applying for .sexy, Uniregistry has a relatively modest 64 comments. That’s largely due to it managing to avoid being whacked by as many duplicate trademark-related comments as its rivals.
There have been 1,385 unique commenters (trusting everybody is being forthright about their identity) with as many as 486 affiliations (including “self” and variants thereof).

2 Comments Tagged: donuts, Famous Four Media, ICANN, new gTLDs, public comments, top level domain holdings, uniregistry

Afilias exec returns to ICANN board

Afilias chief technology officer Ram Mohan has been reappointed to ICANN’s board of directors for a fourth year.
He’s the Security and Stability Advisory Committee’s non-voting liaison, joining the board in 2009.
According to a notice (pdf) posted on ICANN’s web site yesterday, he’s been picked to continue in the role for another year.
Board liaisons, who are unpaid, serve annual terms and there are no limits on the number of years they can serve.
As arguably the most-conflicted person on the ICANN board in relation to new gTLDs, Mohan does not sit in on discussions of the program.

Comment Tagged: afilias, board of directors, ICANN, ssac

Big hotel chains pick a side in .hotel gTLD fight

Many of the world’s major hotel chains say they plan to object to every .hotel new gTLD application but one.
A coalition of many recognizable hotel brands, led by InterContinental, has filed comments against six of the seven .hotel applications, as well as the applications for .hotels, .hoteis and .hoteles.
They say they want the Independent Objector to object to these applications on community grounds. Failing that, they’ll file their own official Community Objections.
The comments (PRO) were filed by the Hotel Consumer Protection Coalition, which appears to be one of those ad hoc organizations that exists purely to send letters to ICANN.

HCPC encourages the Independent Evaluator to submit a formal Community Objection if necessary. (Guidebook, Sec. 3.2.5.) Failing either of these occurrences, HCPC will seriously consider filing a Community Objection of its own – unless, of course, Applicant voluntarily withdraws its application.

The coalition’s members include the Choice Hotels, InterContinental, Hilton, Hyatt, Marriott, Starwood and Wyndham hotel chains. Together, they say they have over 25,000 hotels in over 100 countries.
The lucky recipient of the coalition’s tacit support is HOTEL Top-Level-Domain, the Luxembourg-based applicant managed by Johannes Lenz-Hawliczek and Katrin Ohlmer, which is using Afilias as its back-end.
It’s one of only two .hotel applicants flagged in the DI PRO database as planning to use a “restricted” business model. Only hotels, hotel chains and hotel associations will be able to register.
The other applicant with planned restrictions is a subsidiary of Directi, though its application suggests that any eligibility requirements would only be enforced post-registration.
HOTEL Top-Level Domain is also the only applicant that appears to be pursuing a single gTLD. All but one of the others are portfolio applicants of various ambitions.
Top Level Domain Holdings, Donuts, Famous Four Media and Fegistry all plan “open” business models for .hotel, while Despegar Online is planning a single-registrant space.
The Hotel Consumer Protection Coalition’s support for HOTEL Top-Level Domain is conditional, however. The company has apparently had to agree to explicitly exclude:

“any entity other than a hotel, hotel chain, or organization or association that is not formed or controlled by individual hotels or hotel chains”

It’s also agreed to “immediately suspend” any “clear violations”, such as cases of cybersquatting, when notified by coalition members, and to include its members’ brands on a Globally Protected Hotel Marks List.
The support has apparently been granted extremely reluctantly. InterContinental explicitly does not support the new gTLD program, and Marriott has previously said it thinks .hotel is pointless.
I can’t imagine a .hotel supported by companies that have no plans to use it being particularly successful.

5 Comments Tagged: .hotel, directi, donuts, Famous Four Media, Fegistry, hotel consumer protection coalition, hotel top-level domain, ICANN, intercontinental hotels, new gTLDs, radix, top level domain holdings

Enjoy your weekend — ICANN extends new gTLD comment period

ICANN has extended the public comment period on new gTLD applications by 45 days, after pressure from intellectual property interests and the US government.
The window to have comments considered by evaluators, which was set to close on Sunday, will now end September 26. ICANN said:

After review and discussion of the community’s input, and careful consideration of the implications and impacts the additional time may have on the processing of applications, we have extended the application comment period an additional 45 days.

That’s in line with what the Intellectual Property Constituency asked for last week, but rather less than the Association of National Advertisers wanted.
To date, over 5,500 comments have been filed, but about half of those can be attributed to the same five or six brands, most of which are using the same consultant-prepared language in their filings.
The most immediate consequence of the change today, I expect, is that all the predictably last-minute commenters in the ICANN community get to enjoy their weekends instead.
And I checked: September 26 is a Wednesday.

3 Comments Tagged: ana, fairwinds, ICANN, ipc, new gTLDs, objections, public comment

Did Google withdraw three new gTLD applications?

Is Google behind the three new gTLD applications that have already been withdrawn?
ICANN senior veep Kurt Pritz revealed yesterday that three applications were already on the scrap heap, long before they’ve been evaluated, but he didn’t say which ones.
After a helpful nudge from a DI commenter, my best guess now is that they’re Google’s applications for .and, .are and .est.
As I blogged here and reported here over a month ago, these three strings are all protected geographic names, under ICANN’s rules.
They’re the ISO 3166-1 alpha-3 codes for the United Arab Emirates, Estonia and Andorra, which would be classified as country names and therefore banned by the Applicant Guidebook.
Many thanks to Silvia for the reminder.

3 Comments Tagged: .and, .are, .est, google, ICANN, iso 3166, new gTLDs

Go Daddy: 6% chance somebody else wants that available reg-fee domain too

If you’ve found an available, unregistered domain name, there’s at least a 6% chance that somebody else has also found it that very same day, according to Go Daddy.
More than 6% customer searches for available domain names are performed by more than one person each day, head of product development Richard Merdinger said in a blog post.
According to Merdinger, due to the sheer volume of searches, “more than six percent of customer searches for available domain names are performed by more than one person each day.”
The post, which was written in response to a single highly questionable allegation of “front-running”, added:

This overlap in domain name requests happens every day. As unique as customers believe their domain name ideas are, there’s more “innovation collision” than many people realize. With so many domain name registrations happening every day, there is a good probability a domain name you searched for is also being searched by someone else.

He also publishes some anonymized log data to prove his point.
There are tens of millions of domain searches on Go Daddy every day, apparently.

5 Comments Tagged: front-running, go daddy

Infodump: what we learned about new gTLDs today

ICANN held a webinar today in which it detailed a whole lot of the current thinking about the evaluation phase of the new gTLD program, including some new deadlines and target dates.
Senior vice president and acting program head Kurt Pritz fought through a cold to give new gTLD applicants more information and clarification than they’d received since Prague in June.
These are some of the things we learned:

• Three applications have been withdrawn already. We don’t know which ones.
• There have been 49 requests to change applications. Again, we don’t know which ones yet. ICANN is in the process of finalizing a threshold check to allow or deny these changes, details of which it expects to publish soon.
• “Clarifying Questions” are the new buzzword. CQs — yes, they have an acronym — are additional questions the evaluators need to ask applicants before they can score parts of their application. The vast majority of applications are going to get at least one CQ. The two-week deadline to respond to these questions, as described in the Applicant Guidebook, will likely be ignored in many cases.
• About 90% of applications will get a CQ about their financial status. This mainly concerns their Continuing Operations Instrument, the super-complex and expensive back-up cash commitments each applicant had to secure. But applicants who got letters of credit don’t need to panic if their banks have recently had their ratings downgraded.
• Another 40% can expect to get questions about their technical plans. Some applicants may have relied too heavily on their back-end providers to describe their security plans, it seems.
• About half of all geographic gTLD applications have not yet supplied letters of support from the relevant government. This was already anticipated and is accounted for by Guidebook processes however, Pritz said.
• Don’t expect an answer to the metering question any time soon. Batching may be dead, but ICANN does not expect to figure out its replacement — a way to throttle new gTLDs’ go-live dates — until October. There’s an open comment period on this and plenty more jaw-wagging to come.
• Objections will come before Initial Evaluation results. This sucks if you’re a likely objector. The deadline for filing objections is January 12, 2013, but evaluation results are not expected until June 2013 at the earliest. This means the much cheaper option of waiting to see if an application is rejected before paying for an objection is no longer a viable strategy. But it’s good for applicants, which will get a little more visibility into their likelihood of success and their costs.
• Contention sets will probably be revealed in November. The String Similarity Panel, which decides which gTLDs are too similar to each other to co-exist, is not expected to give its results to ICANN until late October, four and a half months after the June 13 Reveal Day — so applicants won’t know the full size of their contention sets until probably a couple of weeks after that.
• The new gTLD public comment period will probably be extended. After several requests, ICANN is very probably going to give everyone more time to comment on the 1,930 1,927 applications, beyond the August 12 scheduled closing date. An announcement is likely on Friday.

5 Comments Tagged: batching, clarifying questions, ICANN, initial evaluation, metering, new gTLDs, objections

DI PRO offers full-text new gTLD comment search

With ICANN today saying that it is “very inclined” to extend the public comment period on new gTLD applications, I thought it timely to announce a new feature for DI PRO subscribers.
If you’ve used ICANN’s web site to try to read some of the 4,000+ comments received to date, you might have noticed that it’s not always particularly easy to find what you’re looking for.
So I thought I’d write something a bit more functional.
These are some features of the new DI PRO new gTLD public comment search engine that I don’t think the ICANN site currently offers:
Search the full text of the comments. This is useful for, say, figuring out which comments discuss particular themes or issues, or are part of organized astroturf campaigns.
Search and sort by commenter affiliation. Want to see every comment filed by Tiffany or Lego or Heinz? If the commenter has disclosed his or her affiliation, you can do that.
Search by partial commenter name. There’s no need to remember the full name of the commenter you’re looking for. First name, last name, or just a few letters will suffice.
Search by alternate applicant name. The DI PRO database understands which applications originate from the likes of Google and Donuts and Famous Four Media, even if the application has been filed by a subsidiary with a different name.
The database is updated at least twice daily, rather than in real-time, so users may find a small delay between the time a comment appears on the ICANN site and the time it is indexed by DI.
Subscribers can start searching here.

Comment Tagged: di pro, ICANN, new gTLDs