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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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.mii becomes the first new gTLD to face rejection

The applied-for new gTLD .mii is too similar to the US military gTLD .mil and will therefore be rejected by ICANN.
While many applications have been withdrawn, this is the first involuntary rejection to be announced by ICANN.
The applicant for .mii was MiTek USA, described by DI previously as the filer of the stupidest new gTLD applications of the current round.
It also applied for .connector, .mitek and .sapphire, the names of its product categories and brands.
All four of its applications will be formally rejected when ICANN publishes its Initial Evaluation results.
MiTek didn’t bother to answer the most basic questions in the new gTLD application, simply stating “TLD will not be resold. Purchased for brand protection only.” on almost every line.
The decision by the String Similarity Panel to rule .mii confusingly similar to .mil confirms what we already knew from the .hotels/.hoteis ruling — the letters I and L are confusing.
String similarity testing compares upper and lower-case letters as well as, I believe, different typefaces.

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Told you so? Four new gTLDs given geographic surprise, others given a pass

Kevin Murphy, March 7, 2013, Domain Policy

Four new gTLD applications have been told by ICANN the strings they wanted are geographic and will require government backing if they want to be approved.
One of the affected applicants is Tata, the $100bn Indian conglomerate.
During a webinar this week, ICANN reported the results of its new gTLD program’s Geographic Names Panel, which decides whether applicants need the support of governments or not.
Six applicants that had designated their applied-for string as geographic were ruled to be actually non-geographic. Three applicants that said they weren’t geographic were ruled to be, in fact, geographic.
And four strings DI had previously said were likely to be ruled geographic, actually received a pass.
These are the applications that have been told they’re geographic:

  • .bar — This was applied for by two applicants (one of which was a Demand Media subsidiary) as a TLD for drinking establishments. But “Bar” is also a commune of Montenegro, so it’s been deemed a geographic string by ICANN.
  • .tata — This is a dot-brand applied for by Tata Group, the 150-year-old, $100bn-a-year Indian conglomerate. But “Tata” is also a province of Morocco.
  • .tui — Applied for by TUI AG as a dot-brand, the string is also a province of Burkina Faso.

Geographic gTLDs can only be approved with the formal support or non-objection of the relevant governments.
All three of these strings were highlighted in the DI PRO database as potentially problematic geographic gTLDs over a year ago, well before the new gTLD application window closed.
I even reported for The Register in January 2012 that .tata was going to have problems.
According to ICANN’s Application Guidebook, any string that matches something on the various International Standards Organization’s lists of geographic names will be deemed geographic for new gTLD approval purposes.
But we got it wrong on some counts.
For example, we wondered whether the seven applications for .store were going to be ruled geographic, on the basis that Štore (note the accent) is a municipality of Slovenia.
Also, .delta, .est and .capital match regions of Nigeria, Burkina Faso and Denmark and all appear on the same protected ISO 3166 list as .tata, .tui and .bar, but do not appear to have been ruled geographic.
ICANN has not published the rationale behind its panel’s decisions yet.
A further six applied-for gTLD strings that had been designated geographic by their applicants were ruled to be not, in fact, geographic.
These all appear to be abbreviations of place names, or place names that do not appear on protected lists: .frl, .ist, .ryukyu, .scot, .vegas and .zulu.
There’s no real harm to applicants that find themselves in this position.

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PICs could be Beijing deal-breaker for new gTLDs

ICANN’s Governmental Advisory Committee may delay the approval of new gTLDs if applicants don’t submit Public Interest Commitments tomorrow.
That’s the message coming out of ICANN today, on the eve of the deadline for PICs submission set less than one month ago.
PICs, you will recall, are binding, enforceable commitments that new gTLD applicants are able to voluntarily add to their registry contracts with ICANN.
They’re meant to satisfy the GAC’s request for ICANN to tighten its grip on new gTLD registries and to give applicants a way to avoid GAC Advice and formal objections against their bids.
Applicants that commit to do whatever was asked of them in GAC Early Warnings, for example, may be able to avoid having the warning mutate into a full-blown GAC Advice kiss of death.
When ICANN announced the PICs idea a month ago, it gave applicants until March 5 to submit them. It intends to publish them on Wednesday for public comment and the GAC’s perusal.
But applicants are understandably nervous (to put it mildly) to comply, given that PICs would be enforceable via a dispute process that has yet to be written but could put their contracts at risk.
Responding to these concerns during a conference call today, ICANN CEO Fadi Chehade urged applicants to hit the deadline or risk the GAC delaying its Advice discussions beyond Beijing.
“I don’t think we can delay the submission of the PICs,” Chehade said. “If we do, then we will definitely not have the GAC come back to use with their committed advice in Beijing.”
“Unless we want to get them to do this advice beyond Beijing, we should stick with the 30 days or so we’ve asked people to get this done and make it happen,” he said.
The Beijing meeting runs April 7 to 11. The GAC is expected to issue its advice shortly after the meeting ends.
ICANN reckons it will be able to start approving new gTLDs April 23, but has also stated on numerous occasions that it will not approve anything before the GAC has spoken.
Chehade said today, based on his conversations with influential GAC members, that pushing the PICs deadline out beyond March 5 by even a few days would seriously endanger the current GAC Advice timeline.
New gTLD applicants are now in the tricky position of having to decide between potentially costly delays today and an unknown dispute system that could prove dangerous in future.

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