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Digital archery looked “silly” but had “minor risks”, ICANN board was told

Kevin Murphy, July 2, 2012, Domain Policy

While ICANN staff acknowledged that digital archery was perceived as “silly”, it told the board of directors that it was “straightforward” and “unambiguous and easy to execute”.
That’s according to the latest delayed release of meeting minutes and briefing documents detailing board-level discussions between the Costa Rica and Prague meetings.
There was significant debate at the board level about digital archery prior to its approval in March, with directors generally favoring an auction model instead, these documents reveal.
Digital archery as a method of batching new gTLD applications was approved by ICANN at the end of March. It was then suspended two weeks ago and finally killed off last Wednesday.
Back in March, the board of directors’ new gTLD program committee was presented with a strong case in favor of archery by ICANN staff.
According to March 28 briefing document (pdf):

Implementation of the auction model at this late date presents significant risk of: program delay, legal action and significant reputational impact as described below. Board working group members tend to agree with this viewpoint but there is a split of opinion. The digital archery model presents minor risks; primarily a minor reputational risk from the perceived awkwardness of the model.
Analysis indicates that the legal risk raised by a random selection program will be satisfactorily addressed. This is true even though the results appear to have an element of randomness.

Implementation of the digital archery model is essentially completed. It presents no schedule risk. Its operation is straightforward.

Hindsight is a wonderful thing, and it reveals in this case that digital archery was far from straightforward in its operation, and did in fact present schedule risk.
The new gTLD program is currently in semi-limbo while ICANN tries to figure out a way to sequence the processing of applications in a fair and timely way.
Other documents published following Prague include the lengthy minutes of a May 29 committee meeting at which directors argued with staff about how to geographically weight batches.
Staff pushed for a proportional system – where if 10% of applications came from a specific region, 10% of the first batch would be drawn from that region – the minutes reveal.
But several directors argued and won the case for the “round robin” scenario, which would have given advantage to applicants from under-represented regions instead.
Newly published minutes from May 6 also reveal that ICANN considered offering 1% interest on refunds to applicants that withdrew their applications before Reveal Day.

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Microsoft, Yahoo and others involved in new dot-brand gTLD group

HSBC, Microsoft, Yahoo and jewelry maker Richemont have told ICANN they plan to form a new GNSO stakeholder group just for single-registrant gTLD registries.
The group would comprise dot-brand registries and — potentially — other types of single-user gTLD manager.
A letter (pdf) to ICANN chair Steve Crocker, signed by executives from the four companies, reads in part:

As a completely new type of contracted party, we do not have a home to represent our unique community. In addition, the existence of conflicts with other contracted parties makes it challenging for us to reside within their stakeholder group.

Combined, the companies have applied for about 30 single-registrant gTLDs, mostly corresponding to brands.
Richemont, which is applying for dot-brands including .cartier, is also applying for the keywords .jewelry and .watches as single-user spaces.
The group plans to discuss formalizing itself at the next ICANN meeting, in Toronto this October.
During the just-concluded Prague meeting, the GNSO’s existing registries stakeholder group accepted several new gTLD applicants — I believe mainly conventional registries — into the fold as observers.
How the influx of new gTLD registries will affect the GNSO’s structure was a hot topic for the Governmental Advisory Committee during the meeting too. I guess now it has some of the answers it was looking for.

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Digital archery is dead, but uncertainties remain

Kevin Murphy, June 28, 2012, Domain Policy

ICANN has killed off its unpopular “digital archery” scheme, which it had planned to use to rank and batch new top-level domain applications for evaluation.
But the organization has not yet replaced it with anything, leaving gTLD applicants without their much-sought-after certainty for at least the next three weeks.
In a resolution yesterday, ICANN’s New gTLD Program Committee approved the following resolution:

Resolved (2012.06.27.NG06), the New gTLD Program Committee directs the President and CEO to terminate the Digital Archery process as approved in Resolutions 2011.12.08.04-2011.12.08.07.

Given the discussions between the ICANN board and the rest of the community here at ICANN 44 in Prague this week, it would have been more surprising if archery had survived.
Not everyone is happy to see it go, of course.
Richard Schreier, CEO of erstwhile digital archery service provider Pool.com, took to the mic at the ICANN public forum this afternoon to ask that ICANN sticks to its decisions in future.
He further noted that the decision to scrap archery had been made without the input of applicants who are not in attendance at the meeting.
Now that archery has gone, the ICANN board has left a vacuum – nobody knows how applications will be prioritized for processing and evaluation.
Committee chair Cherine Chalaby said that ICANN will now open a comment period for all applicants, in order to help build a “roadmap” to “detail the next steps and timelines”.
This roadmap is due, it seems before the new gTLD committee’s next meeting, which is due to take place approximately three weeks from now.
This does not necessarily mean the program has been delayed, however. ICANN senior vice president Kurt Pritz said a few times this week that evaluators will start looking at apps July 12.

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.radio gTLD applicant joins the GAC

Kevin Murphy, June 28, 2012, Domain Policy

The European Broadcasting Union, which is one of four applicants for the .radio top-level domain, has asked to join ICANN’s Governmental Advisory Committee as an observer.
It is believed that its request is likely to be accepted.
The move, which comes just a couple of weeks after ICANN revealed its list of new gTLD applications, could raise conflict of interest questions.
While several GAC governments and observers are backing new gTLD bids – the UK supports .london, for example – they’re generally geographic in nature and generally not contested.
But .radio has been applied for by Afilias, BRS Media and Donuts in addition to the EBU.
While any organization can file objections against applications, under the rules of the new gTLD program the GAC has the additional right to issue special “GAC Advice on New gTLDs”.
Consensus GAC advice is expected to be enough to kill an application.
Since it’s not entirely clear how the GAC will create its formal Advice, it’s not yet clear whether the EBU will have any input into the process.
According to the GAC’s governing principles, observers do not have voting rights, but they can “participate fully in the GAC and its Committees and Working Groups”.
The EBU’s .radio gTLD would be open to all potential registrants, but it would be subject to post-registration content restrictions: web sites would have to be radio-oriented, according to the application.
It’s also the only Community-designated bid in the contention set, meaning it could attempt a Community Priority Evaluation to resolve the dispute.
The EBU has also applied for .eurovision, the name of its annual singing competition, as an uncontested dot-brand.

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ICANN: new gTLDs will not kill the internet

Kevin Murphy, June 28, 2012, Domain Policy

One of ICANN’s Governmental Advisory Committee’s ongoing inexplicable obsessions is that the introduction of new top-level domains risks toppling the internet.
One or more GAC members have raised the topic of DNS root zone scalability at pretty much every meeting the GAC has had with ICANN’s board of directors for the last couple of years.
It’s the reason why ICANN has committed to delegate no more than 1,000 new gTLDs – a fairly arbitrarily chosen number – to the root per year.
I’m not entirely sure where the GAC’s concerns originated, but they’ve been dismissed as red herrings on multiple occasions by ICANN and third-party technical experts.
And now ICANN has published yet another report – this one written by its own IANA staff – making the point that the risk to root stability is query volume, not database size.
Here’s the gist:

Having twice as many TLDs does not mean that the average Internet user visits twice as many web pages, or writes twice as many emails. Rather, Internet usage is driven by growth in overall Internet adoption. Having more TLDs available does not directly incur increased usage of the DNS; rather it will exchange a subset of their query load from existing TLDs to new TLDs.

You can download the full report here.

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New gTLD application batching dead?

Kevin Murphy, June 26, 2012, Domain Policy

It’s looking increasingly possible that not only is digital archery dead, but that ICANN may also kill off the idea of batching new gTLD applications entirely this week.
Given the number of groveling apologies from staff and board about the failure of digital archery over the last few days, there doesn’t seem to be any way it can be plausibly reinstated following its shut-down last week.
But from the first three days of meetings and hallway conversations here at ICANN 44 in Prague, it’s pretty clear that doing away with batching is under serious consideration at board level.
It’s also my understanding that ICANN staff, which initially appeared reluctant to abandon plans to divide the 1,930 applications into three or four batches, is now also thinking along the same lines.
Batching is unpopular among most — but by no means all — applicants, because they don’t want to risk losing a time-to-market advantage by being allocated to a later batch.
When director Chris Disspain told an audience of applicants yesterday, “What I think the board thinks you want now is certainty,” the reaction suggested he had hit the nail on the head.
The problem ICANN has with a single batchless evaluation process is that it faces — hypothetically at least — up to 1,409 unique gTLDs exiting Initial Evaluation at the same time.
This could cause problems because it’s promised the DNS root server operators and the Governmental Advisory Committee that it will delegate no more than 1,000 new gTLDs per year.
These commitments are, at least for now, non-negotiable, chairman Steve Crocker has indicated this week.
So ICANN has to figure out a way to “rate limit” application processing so that no more than 1,000 gTLDs go live in the same 12 month period.
Many opponents of batching have stated that the process already contains several throttling mechanisms, or “gateways” as ARI Registry Services CEO Adrian Kinderis calls them.
For starters, not every application will be successful. Some will be withdrawn soon because they were tactical filings, others will not pass Initial Evaluation and will be withdrawn.
Some will fail Initial Evaluation and enter Extended Evaluation. Others will face formal objections or will find themselves in contention resolution.
In these cases, applicants can expect an extra six months of processing time, which will act as a natural throttle.
For those applications that get through to contract negotiations, ICANN’s legal department will operate on a strict first-in-first-out basis with the paper contracts, Disspain said yesterday.
But there’s a concern that these gateways might not be enough to smooth out the evaluation and approval process.
Various solutions have been put forward by the ICANN community so far this week.
These have ranged from the predictable “IDN applicants should go first” from IDN applicants and “brands should go first” from brand applicants, which both seem unlikely to be adopted, to some more inventive ideas.
Top Level Domain Holdings founder Fred Krueger and others have suggested that one way to prioritize applications would be to ask the large portfolio applicants — TLDH, Google, Donuts, et al — to decide which of their gTLDs they want to hit the root first.
“I value .london significantly more than I value .beer,” Krueger said yesterday. “I’m sure Google values .google more than .lol.”
Another idea, put forward by Uniregistry’s outside counsel Bret Fausett yesterday, was to rank applications according to how cleanly they exit Initial Evaluation.
Applications that made it through Initial Evaluation without the evaluators needing to ask any clarifying questions would be considered the “first batch”. Those that needed a single question answered would be the “second batch”, and so on.
This system would have the advantages of enabling a single batch while rate-limiting applications based on their inherent quality.
On the face of it, it’s quite an attractive idea, and it’s my sense that Fausett’s approach was well-received by ICANN. We might be hearing more about it as ICANN 44 progresses.

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Former ICANN VP calls bull on Beckstrom’s exit speech

Kevin Murphy, June 26, 2012, Domain Policy

If you were following DI on Twitter during the opening ceremony of ICANN 44 yesterday, you may have noticed I only tweeted one direct quote from incoming CEO Fadi Chehade.


I pulled this one line out of what was a fairly long and passionate address because I had a “hunch” what might be coming up next when outgoing CEO Rod Beckstrom took the stage for the final time.
Now, former ICANN vice president of corporate affairs Paul Levins has called out his old boss for taking credit where credit may not be due.
Beckstrom said, during his opening remarks:

My first day on the job, I was given a blank sheet of paper and I was told that the Memorandum of Understanding with the Department of Commerce of the US government was not going to be renewed by ICANN.
And I was told, “You better come up with something better and you have to get it done in 90 days because the MoU is going to expire.”
Together we worked and we created the Affirmation of Commitments.

The MoU and the AoC which replaced it have been ICANN’s primary statements of legitimacy with the US government, spelling out its responsibilities to the internet community.
Levins, writing on CircleID last night, calls Beckstrom out on the statement.

We were not starting with a blank piece of paper. It’s to his credit that he allowed that to continue, but it’s not healthy to perpetuate a belief that what replaced the Joint Project Agreement — the Affirmation of Commitments (AoC) — was miraculously developed in the space of only weeks prior to the expiration of the JPA — that an accountability rabbit was pulled from the hat.
Nothing could be further from the truth.
It was ultimately the result of ten years of community effort.
But in the lead up to the JPA expiry, the direct negotiating and writing team was me, Theresa Swinehart and importantly — from the Department of Commerce (DoC) — the willing, creative and sincere cooperation of Fiona Alexander and Larry Atlas the then Senior Advisor at the Office of the Assistant Secretary for Communication at the National Telecommunications and Information Administration (NTIA).

The first written draft of the AoC had been produced over the eight months prior to Beckstrom’s arrival, Levins writes.
It’s fairly well known that Levins was one of the first people to lose his job under Beckstrom, but several others who were on ICANN staff at the time have confirmed to DI that the AoC was developed as Levins says.
His op-ed doesn’t strike me, in that light, as a full case of sour grapes.
Levins, who seems to be one of the many ICANN attendees who was impressed by Chehade’s debut address yesterday, signs off his editorial with what could be considered advice to both Chehade and Beckstrom:

…truth and sincerity is what should continue to drive the AoC’s ongoing implementation. But it should also drive the corporate memory of its creation.

Humility was a personality trait that ICANN specifically asked for when it advertised the CEO’s job earlier this year.
Judging by the reactions of ICANN 44 attendees who listened to Chehade’s speech yesterday — and have met him — humility is something Chehade appears to possess in buckets.
Everybody I’ve spoken to so far is impressed with the new guy, though some have also pointed out that they felt the same way this time in 2009.

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ICANN gives Verisign’s .com contract the nod

ICANN’s board of directors has approved Verisign’s .com registry agreement for another six years.
In a closed meeting on Saturday, the results of which have just been published, the board decided against making any of the changes that had been suggested by the community.
There had been a small uproar over the fact that Verisign will retain the right to increase its .com registry fee by 7% in four out of the next seven years.
The new contract also rejiggers the fees Verisign pays ICANN to bring them more into line with other registry agreements. As a result, ICANN will net millions more in revenue.
Other parties had also asked for improved rights protection, such as a mandatory Uniform Rapid Suspension system, and for the current restrictions on single-character domain names to be lifted.
But the board decided that “no revisions to the proposed .COM renewal Registry Agreement are necessitated after taking into account the thoughtful and carefully considered comments received.”
The agreement will now be forward to the US government for approval. Unlike most registry contracts, the Department of Commerce has the right to review the .com deal.
The current contract expires November 30.

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Batching session provides more questions than answers

Kevin Murphy, June 24, 2012, Domain Policy

ICANN plans to start evaluating new generic top-level domain bids on schedule July 12, despite the fact that its digital archery application batching system is offline.
That’s according to senior vice president Kurt Pritz, who told a session of the GNSO Council here in Prague this morning that “we want to ensure evaluations start taking place as scheduled”.
Due to the large amount of contention it seems most likely that there will be three batches, he said, which will take 15 months to process through Initial Evaluation.
Teams at ICANN’s outside evaluators – Ernst & Young, KMPG et al – are already doing test evaluations in order to “calibrate” their scoring for consistency, Pritz said.
Applications will be continuously sent to evaluators for processing throughout the three batches – split into batches at the “output” stage rather than the “input” stage, he said.
“We feed applications in and batches are how they are reported out,” he said.
But with the future of digital archery currently uncertain, one wonders how the “input” will be ordered.
If ICANN is set on pushing applications into the evaluation funnel by July 12, by which time the batching problem may have not been resolved, we could be faced with some weird scenarios.
Theoretically, a batch three application could be processed next month and not be spat out of the system for another year and a half. That’s my interpretation of what Pritz said, anyway, shared by some but not all people who were in the room.
More details are sure to emerge as ICANN 44 progresses…

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First new gTLD registry hub provider launches

Kevin Murphy, June 24, 2012, Domain Services

The first effort to provide a centralized “hub” between domain name registrars and new generic top-level domain registries has hit the market.
Norwegian new gTLD consultant/applicant CloudNames has launched The Registry Hub, and says it will offer more than 70% of its equity to the first companies that sign up for the service.
The problem it wants to address is that of complexity.
With hundreds of new mass-market gTLDs likely to appear over the next few years, it will be hard for registrars to keep track of them all.
The Registry Hub says it will provide a “technical, legal and commercial proxy” between registries and registrars.
It’s not entirely dissimilar to the business models of the reseller-oriented registrars that we see today.
One problem it hopes to tackle is paying registry fees.
It’s standard in the domain name industry today for registrars to pay their registry fees in advance – leaving a deposit with each of the registries they work with, which they chip away at over time.
That’s nice for the registry’s cash-flow, but it’s not going to be great for smaller registrars in a world with a few hundred new gTLDs they might want to sell.
These hub services – I’m expecting to see more announce themselves, soon — would consolidate deposits to make it commercially easier for smaller registrars to sell many more gTLDs.
Smart new gTLD registries will probably find market adoption easier if they can figure out ways to avoid this deposit problem entirely, perhaps by switching to a post-payment system.
The Registry Hub would take a small fee for each domain name registered through its service.

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