Should new gTLDs be delayed?

Is the world ready for the new generic top-level domains program? Is ICANN ready?
It’s been well over two months since ICANN approved its new gTLD program, and the initial sense of excitement and purpose in the industry seems to have given way to virtual silence from ICANN and a profound lack of audible enthusiasm from the internet at large.
What’s going on with the program? Where’s the final Applicant Guidebook? Who are the experts ICANN is going to hire to actually decide which applications succeed or fail?
Is four months really sufficient time to put the world on notice that new gTLDs are coming and to give everybody enough opportunity to prepare?
Is anybody outside the industry even paying attention?
Read this quote (with my emphasis) from Friday’s wrap-up session at the .nxt conference in San Francisco and see if you can guess whose mouth it came out of.

My takeaways, if I can run through them quickly…
…a sense of relief that this program is finally underway as of June 20 has suddenly now turned into a worry. There’s a whole lot of people who can’t believe it’s happening, and there’s a sense of worry that it’s all going to happen too fast. So that’s quite interesting. There’s a hell of a lot that has to be done between now and launch.
Some things are not yet done… We haven’t got the information about the [Trademark] Clearinghouse yet, we don’t know what the [Governmental Advisory Committee] processes are going to be, and we actually have to design registry systems and explain those two to customers and show how they are going to fit together and we can’t. So there’s a problem there about the rush.

You may be thinking that those are the words of some naysayer in a stuffed shirt – a hater from the trademark lobby or the advertising industry who wants to put the stoppers on new gTLDs.
Actually, that’s the opinion of Peter Dengate Thrush, who was chairman of the ICANN board of directors when it voted to approve the program, despite concerns that it wasn’t ready yet, in June.
Dengate Thrush is now of course executive chairman of Minds + Machines, which is in the position of actually having to deal with the program in its incomplete state.
His words were, I believe, offered up as an analysis of the mood of the conference, rather than some kind of mea culpa, if you were wondering about the context or tone.
Nevertheless, he had a point.
Here are some of things that don’t seem to have been finalized yet:
The Applicant Guidebook
Incredibly, the most recent version of the application rulebook posted on the ICANN web site dates from May. It’s still essentially still an almost-done draft document.
ICANN’s board voted in June to amend the Applicant Guidebook before the first round of applications opens.
So, where is it? Where’s the final Guidebook?
Who’s going to sign a check investing in new gTLDs when the rules are still open to change?
Still minding the GAC
How, precisely, will the Governmental Advisory Committee decide whether to intervene to thwart a gTLD application on public policy grounds?
ICANN has agreed to let the GAC make up its own rules governing how it reaches consensus before it objects to applications, but so far it has not said what those rules are going to be.
If you think you might apply for a potentially controversial gTLD string – or even if you don’t – you still don’t have enough information today to make a fully informed risk analysis.
Your best strategy right now might be to ensure that your string complies with Sharia, or to pay off a bunch of government officials to ensure they fight your corner.
Where are the experts?
ICANN has not yet named the company or individuals who have been or will be hired to process the hundreds of gTLD applications that are likely to be received next year.
As Dengate Thrush noted, it also hasn’t appointed a Trademark Clearinghouse, which is a critical component of two mandatory new gTLD rights protection mechanisms.
Currently, it’s hard to say for certain what integration between registries and the Clearinghouse will entail financially or technologically.
That may not be an enormous problem, but it could make writing an application slightly trickier.
Watching the watchmen
ICANN is in receipt of letters from competition authorities in the US and European Union, telling it in fairly blunt terms that its decision to allow registries and registrars to integrate is Bad Policy.
The rules that separate registrars like Go Daddy from registries such as VeriSign have been good for consumers, they say, and should be kept in place under the new gTLD regime.
ICANN, also in its June 20 vote, has already agreed to talk to these authorities about possibly scaling back the proposed liberalization of the vertical integration rules.
But if this is already happening, it’s happening behind closed doors, because we’ve not heard a peep about it from ICANN or the two governments since June.
If this situation escalates when everybody gets back from vacation, I will not be surprised.
Where’s the outreach?
ICANN has promised a four-month communications campaign before the start of the first round of applications. That means it has to kick off by September 12, just two weeks from now.
This campaign actually began at the press conference about half an hour after the June 20 board vote, ICANN president Rod Beckstrom said at the time, but apart from a couple of plaintive cries for help there’s been precious little visible outreach since then.
Director Bertrand de La Chapelle evidently gave Beckstrom a hard time about this during a board meeting a month ago, according to the minutes.
A new ICANN web site devoted to new gTLDs is expected to launch next month, and I understand that staff including Beckstrom will hit the road for a world tour around the same time.
But given the recent mock outrage from ad industry shills such as the Association of National Advertisers, it’s arguably a little late for ICANN to start to worry about framing the issue.
Most people reading about new gTLDs in the press the last few weeks probably came away thinking new gTLDs are nothing but a money grab by registries and cybersquatters/domainers.
(It is that, of course, but it’s lots of other nicer things too.)
From a public relations perspective, ICANN will be starting on the back foot. Its outreach efforts may turn out to be not be so much about educating the world about its program but re-educating it.
Oh, and it only has $750,000 to pull off this feat.
As a very wise man said at .nxt on Friday: “The size and scale of that [budget] doesn’t really match up to the problem it’s trying to address.”
(Yeah, that was Dengate Thrush again)
Welcome to the cheap seats
ICANN has committed $2 million from reserves to a mechanism whereby needy applicants from developing nations will be able to get a discount (TBC) on their application fees.
That mechanism does not yet exist. Such applicants are today at a disadvantage compared to their wealthier competitors when it comes to planning applications and raising funds.
A volunteer working group known as JAS has been working out the details, meeting by phone two or three times a week, but reaching consensus seems to have been a very tough slog.
Policies developed from the bottom up have a convoluted chain of custody before they get approved. A deadline missed by a day or two can delay the ICANN rubber stamp by weeks.
The way things look today, the JAS applicant support policy is going to be cutting it extremely fine if it wants to make it before the ICANN board’s October meeting in Dakar.
Wither round two?
Perhaps the most intractable problem underlying the whole program is the absence of a launch date for the second-round application window.
Speakers at the .nxt conference last week reckoned lawsuits over individual contested gTLDs are inevitable, and that they could delay the second round until as late as 2017, if it happens at all.
It’s in that context that large companies, already nervous about entering into a new, unmeasurable, unproven marketing paradigm, are being asked to commit potentially millions to new gTLDs today.
It’s arguably like being asked, in 1991, to pay $500,000 for sex.com, with no idea whether this newfangled “hypertext” thing is going to take off.
Sounds like a great deal today, but back then it would have sounded like a 419 scam.
As Yahoo lawyer J Scott Evans said at .nxt, many companies feel they have “a gun to their heads”.
It’s hardly surprising some of them have persuaded their trade groups to lobby against the program, threatening to bring their pocket Congressmen down on ICANN’s head and/or file a lawsuit or two.
Which brings me to my headline
Which brings me to my headline. Would another delay be good for the new gTLD program?
If the ANA were to sic its lawyers on ICANN tomorrow, would a temporary restraining order that delayed the program by a few month actually be healthy for it in the longer term?
A great many people and organizations that could make valuable contributions to the domain name industry will not have heard about new gTLDs before June 20.
A delay before January could give ICANN and its community a bit more time to smooth away the rough edges of the program and to address the issues that have not yet been resolved.
It could give potential applicants from outside the established community more time to decide whether to engage with the program, more time to raise funds or secure budgets, and more time to develop their new gTLD application strategies.
I’m referring here not only to large corporations with lengthy budgeting cycles, but also to entrepreneurs with cool ideas and meager resources that perhaps need more time to be able to get on board.
Could a delay also increase the proportion of applicants from outside Europe and North America, and the proportion of IDN gTLD applicants who truly understand their markets?
Bluntly, would a short delay in the launch, whether it came about as a result of legal action or not, make round one of the ICANN new gTLD program less of a clusterfuck?
Yeah, I’m playing Devil’s Advocate here
The best quote I heard during my remote participation in the .nxt conference last week was offered up by Brian Larson from DotMLS as “Larson’s Corollary to Newton’s Third Law”:

Any discussion about what the post-new-gTLD world is going to look like is inherently speculative… For any argument about the post-new-gTLD world there is an equally plausible but opposite argument.

For the avoidance of doubt, if there was any doubt in your mind, that maxim certainly applies to the opinions expressed in this article. I could just as easily write 2,000 words arguing for the opposing view.

8 Comments Tagged: .nxt, ICANN, new gTLDs, new TLDs

NetNames puts gTLD.com domain to good use

European registrar Group NBT has a pretty great domain for its new generic top-level domains consulting business: gTLD.com.
Under its NetNames corporate registrar brand, the company is targeting the “.brand” market, like so many others, judging by its recently relaunched web site.
Its services include pre-application consulting, help with applications, and ongoing management services, provided through its relationships with registry infrastructure partners.
It will also keep track of other ICANN gTLD applications and alert clients about potential cases of trademark infringement.
One thing’s for sure, new gTLD applicants in general are spoiled for choice now when it comes to selecting a consultant.

Comment Tagged: group nbt, gtld.com, ICANN, netnames, new gTLDs, new TLDs

ICANN vice president quits before he starts

ICANN’s recently announced vice president of Europe, Thomas Spiller, will not be joining the organization after all.
His appointment to the new position was announced June 23. He was due to start work heading ICANN’s Brussels office on Monday.
I understand Spiller has chosen a position at another company instead, and that his decision may have predated the announcement of CEO Rod Beckstrom’s July 2012 departure earlier this month.
A policy expert, he previously worked for the French Prime Minister’s Office and the software company SAS, according to an ICANN press release (pdf).
The European VP job is now being advertised once more on ICANN’s hiring page.
The news of Spiller’s non-showing at ICANN was first revealed this morning by GNSO chair Stephane Van Gelder.

Comment Tagged: ICANN

Domainer Jan Barta invests in dotFree

The Czech company hoping to apply to ICANN for the .free top-level domain next year has secured an undisclosed investment from local domainer Jan Barta.
Jeremie Godreche from dotFree described the deal as “an active and long term relationship”.
Barta is the founder of Elephant Orchestra, a domain investment and lead generation company based in Prague. You can read a recent interview with him in the Prague Post here.
DotFree appears to have recently overhauled its web site also.
It now has a planned launch schedule that would see a .free founders program open in January 2012 and its sunrise period begin a year later.
Now there’s confidence.
I expect .free to be a contested gTLD, and we won’t find out until April at the earliest how many other applicants are also chasing it.
The company plans to monetize .free by charging for 200,000 premium names and imposing an annual upgrade fee on registrants with more than one non-premium domain.
It has had 97,000 pre-registrations since last November.

Comment Tagged: .free, dotfree, elephant orchestra, ICANN, jan barta, new gTLDs, new TLDs

DomainTools opens massive email record database

DomainTools has opened up a huge database that matches domain names to the mail servers they use.
A search on ReverseMX.com for a domain name returns the mail servers that domain uses. In reverse, you can search for a mail server or IP address and find out which domains use it.
For example, a query for one of Google’s mail servers will spit back a short list of some of the domains that use Google for their email, along with an aggregate domain count.
DomainTools said in a press release:

ReverseMX can be used by a wide audience – basically anyone interested in researching the footprint of small or large email providers. For example, users can analyze which mail servers’ domains are using certain email providers, or how Microsoft’s hosted email is doing against Gmail or Yahoo.

The data currently covers the 130 million domains registered under .com, .edu, .net, .org, .info, .biz, and .us – the largest TLDs for which zone files are freely available.
DomainTools has already uncovered a few interesting factoids, such as that 30 million domain names use Go Daddy for their email, making it easily the largest provider.
The service also interrogates domains’ SPF records to work out which IP addresses are authorized to send email for any given domain.
I can imagine ReverseMX being useful for researchers in the security industry (and their spammer adversaries?).
But unlike DomainTools’ other services, it does not immediately appear to be something that many people in the domain name industry will find themselves using on a daily basis.

Comment Tagged: DomainTools, reversemx

Now you can outsource your whole gTLD

It’s already common practice for domain name registries to outsource their technical operations to a back-end provider such as VeriSign or Afilias, but a new company hopes that new gTLD registries will want to go one step further.
Sedari, which appears to have soft-launched at the .nxt conference today, wants successful new gTLD applicants to outsource their back-office functions too.
The company, headed by former ICANN policy advisor Liz Williams, “helps string owners outsource the risk and responsibility of running a registry in compliance with ICANN’s contracts”, according to its site.
I understand this means functions such as billing, support, compliance, and liaising with the back-end registry and the front-end registrars.
I guess it’s going to be possible for a successful gTLD applicant to sign a registry contract with ICANN and then do very little to actually manage its day-to-day operation.
A registry that outsources its technical infrastructure to the likes of Neustar and its back office to Sedari will presumably be free to focus on nothing but marketing.
Sedari is staffed by a number of familiar faces.
Its CFO is Kevin Wilson, who had the same role at ICANN until January, and former ICANN director Dennis Jennings is on the board.
Its CTO is Wayne MacLaurin, who was previously CTO of Momentous. Jothan Frakes, formerly with Minds + Machines, is senior VP of channel management.

Comment Tagged: ICANN, new gTLDs, new TLDs, sedari

Direct marketers join anti-gTLD bandwagon

The UK Direct Marketing Association has added its voice to the collection of advertising trade groups that oppose ICANN’s new generic top-level domains program.
DMA executive director Chris Combemale said in a statement:

Creating a tranche of new internet domain names will be extremely costly to businesses. As well as the associated costs of registering new domain names and spending money to attract customers to multiple domains, businesses face the legal and financial headache of having to contend with cybersquatters grabbing specific domains.
Customised domain names won’t offer brands any enhanced marketing possibilities because consumers can easily search for specific information with the current domain name system.
Companies are already hard pressed to find cost savings in these tough trading times; adding a further financial burden that won’t reap any commercial benefits cannot be justified.

The organization said it plans to formally ask ICANN to withdraw or revise the program.
The Association of National Advertisers, the Interactive Advertising Bureau and the American Association of Advertising Agencies have already made similar calls.
The DMA UK has over 800 members, according to its web site.

3 Comments Tagged: direct marketing association, ICANN, new gTLDs, new TLDs

Most new gTLDs will fail

We’re going to see hundreds of new gTLDs over the coming years, but we’re also going to see potentially hundreds of failures.
That’s the view being espoused by some of the biggest cheerleaders of ICANN’s new generic top-level domains program, including its former chairman, at the .nxt conference this week.
During the opening session on Wednesday, a panel of experts was asked to imagine what the domain name industry might look like in 2017, five years after the first new gTLDs go live.
“My assumption is that many TLDs will have completely failed to live up to their promoters’ hype,” said Minds + Machines executive chairman Peter Dengate Thrush, whose last action as ICANN chair was pushing through approval of the program. “But on the other hand many of them, and I hope a majority of them, will be thriving.”
Anyone expecting to build a business on defensive registrations better think again, panelists said.
“Many ill-conceived generic-term TLDs will have failed by that point, especially those generic term TLDs that are taking comfort in the .xxx Sunrise Part B revenue model,” said Paul McGrady of the law firm Greenberg Traurig.
“There’s definitely going to be burnout in the brand-owner community, so don’t expect the brand owners to show up to to fuel that,” he said.
Others, such as Tucows CEO Elliot Noss, went further.
“I think there’ll be more failures than successes and I’m not fussed by that,” said Noss. “For the users in the namespace, it’s not like they’re left high and dry.”
He compared failing gTLDs to the old Angelfire and Geocities homepage services that were quite popular in the late 1990s, but which fizzled when the cost of domains and hosting came down.
But while the disappearance of an entire gTLD would take all of its customers with it, a la Geocities, that’s unlikely to happen, panelists acknowledged.
ICANN’s program requires applicants to post a bond covering three years of operations, and it will also select a registry provider to act as an emergency manager if a gTLD manager fails.
When gTLD businesses fail, and they will, they’re designed to fail gracefully.
In addition, taking on an extra gTLD after its previous owner goes out of business would be little burden to an established registry provider — once the transition work was done, a new string would be a extra renewal revenue stream with possibly little additional overhead.

2 Comments Tagged: .nxt, ICANN, new gTLDs

M+M surprised by .mumbai snub

One of Minds + Machines’ key top-level domain applications has been thrown into confusion after government support for its .mumbai bid was apparently revoked.
In a letter that surfaced on the ICANN web site this week, Y.S. Mahangade, deputy director of IT at the Municipal Corporation of Greater Mumbai, wrote (pdf):

Honorable Deputy Mayor of MCGM inadvertently issued a letter to one organization which has been revoked later by Honorable Deputy Major of MCGM. It may please be noted that the official position of the City of Mumbai is communicated by Municipal Commissioner.

Under ICANN’s rules, all applications for geographical gTLDs must be backed officially by the local government, otherwise they get rejected.
According to Wikipedia, the Mayor of Mumbai (and presumably the deputy) has a “largely ceremonial” function, “as the real powers are vested in the Municipal Commissioner”.
Wikipedia does not say what kind of power the deputy director of IT wields. I’m guessing it’s not much.
M+M CEO Antony Van Couvering said in a statement:

This is the first we have heard about this and we are looking into the matter with our client, India TL Domain Pvt Ltd, to whom the original letter of appointment was issued by the Deputy Mayor of Mumbai. Once we understand what the situation is viz-a-viz India TL Domain Pvt Ltd and the City of Mumbai, we will provide an update.

You can view the letter of support from the deputy mayor here.
M+M announced its deal with the .mumbai applicant, India TL Domain, in June. As I noted at the time, not much is known about the company.
But according to official records, the company’s managing director is Ashok Hiremath, who’s also chairman of Mumbai-based fungicide manufacturer Astec Lifesciences.
His brother Suresh, now apparently a British citizen living in London, appears to be the only one of the company’s three directors to have engaged, albeit lightly, in ICANN policy development.
The third director is also Astec’s corporate secretary. The company shares its address with Astec.
In June, M+M’s parent company, Top Level Domain Holdings, issued two million new shares to an unnamed consultant as a result of the .mumbai deal, raising £160,000 ($260,000).
This is not the first time a geographic gTLD applicant that apparently raised support from the necessary governmental entity has had its plans thrown into doubt.
The same happened to DotConnectAfrica, a potential .africa bidder, in May, after the African Union apparently did an about-face.
Mumbai is India’s largest city, with over 20 million citizens. It’s also the richest (although the poverty there is enough to make you weep) making .mumbai a potentially lucrative gTLD.

Comment Tagged: .mumbai, astec lifesciences, city tlds, ICANN, m+m, Minds + Machines, new gTLDs, new TLDs, tldh

MelbourneIT talks to 270 .brand applicants

The Australian domain registrar MelbourneIT said it has talked to 270 companies and signed contracts with 17 that want to apply for “.brand” top-level domains.
The news came in the company’s “disappointing” first-half financial results announcement yesterday.
According to its official report (pdf), MelbourneIT has received 230 expressions of interest and has inked deals with 14, but managing director Theo Hnarkis reportedly told analysts the higher numbers.
The company is charging clients between AUD 45,000 ($47,000) and AUD 75,000 ($79,000) to handle the ICANN application process.
MelbourneIT’s preferred partner for back-end registry services is VeriSign, so the clients it signs are likely to become recurring revenue streams for VeriSign if their applications are successful.

Comment Tagged: .brand, ICANN, melbourneit, new gTLDs, new TLDs, verisign