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German toilet provider has Best. Domain. Ever.

Kevin Murphy, September 29, 2011, Gossip

A few of us attending the newdomains.org conference in Munich this week spotted what is possibly the most inadvertently funny domain name in the history of the internet.
We found this advertised in the men’s room at Oktoberfest:
ass-container.de
It would be funny enough merely seeing that domain on a poster in a public toilet, but what makes it perfect is that the company it advertised, ASS GmbH, is in the business of providing portable toilets for large events.
Mike Berkens of TheDomains has photographic evidence of the poster itself (I don’t usually take a camera to the toilet with me) but in the absence of that photo, here’s a capture from the firm’s site.
Ass Container

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Will URS really be as cheap as ICANN says?

Kevin Murphy, September 29, 2011, Domain Policy

I’m having a hard time believing that trademark holders will be able to enforce their rights in new top-level domains for just $300.
The Uniform Rapid Suspension policy (pdf) is one of the new systems ICANN is putting in place to deter cybersquatters from abusing trademarks in new gTLDs.
It’s very similar to the existing UDRP, but it’s quicker and it only deals with the suspension – not transfer – of infringing domain names.
No URS arbitration provider has yet been appointed, but ICANN’s Applicant Guidebook, which spells out the policy, currently estimates a price of $300 per single-domain filing.
At least twice during the newdomains.org conference in Munich this week I heard ICANN representatives quote a price between $300 and $500.
I’m wondering how realistic this is.
Typically, domain arbitration fees are split between the provider, which receives a third, and the panelist, who receives the remaining two thirds.
With a $300 fee, that’s $100 to the provider and $200 to the sole panelist – who must be an experienced trademark lawyer or similar – compared to a $500/$1,000 split with the UDRP.
My question is: how many trademark lawyers will get out of bed for $200?
The URS gives panelists between three and five days to come up with a decision, but I’m guessing that you’d be lucky, for $200, to buy three to five hours of a panelist’s time.
Even I charge more than $200 for half a day’s work.
The Rapid Evaluation Service recently introduced by ICM Registry, which serves essentially the same purpose as URS but for the .xxx gTLD, costs $1,300 in National Arbitration Forum fees.
Like URS, the RES is designed for a speedy turnaround – just three days for a preliminary evaluation – of clear-cut cybersquatting cases.
Like URS, complaints submitted using RES have a tight word-count limit, to minimize the amount of work panelists have to do.
With that in mind, it seems to me that a $300 fee for URS may be unrealistic. Even the $500 upper-end ICANN estimate may be optimistic.
It will be interesting to see if ICANN’s negotiating clout with likely URS providers is better than ICM’s and, more importantly, to see whether $200 is enough to buy consistent, reliable decisions from panelists.

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AusRegistry wins .jewelers deal

Kevin Murphy, September 27, 2011, Domain Registries

GJB Partners, one of the few companies to recently announce a commercial new top-level domain bid, has selected AusRegistry International to provide the back-end registry for .jewelers.
It’s the first non-geographic TLD contract win AusRegistry has announced this year.
While it’s probably a small deal, it’s notable because one of GJB’s managing partners is George Bundy, CEO of BRS Media, the registry for .fm and a potential .radio applicant.
BRS is currently the only public reference customer for Espresso, the registry platform offered by Minds + Machines, an AusRegistry competitor.

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Notes from day one of the Munich new gTLDs conference

Kevin Murphy, September 26, 2011, Domain Registries

The newdomains.org conference on new top-level domains kicked off here in Munich today, the first major show in Europe dedicated to new gTLDs.
The city is the grasp of Oktoberfest at the moment – the drunk tourist contingent is high, and it seems like every fifth person you pass on the street is in traditional local costume.
Hairy knees and lederhosen are the order of the day for the men. For the ladies: tight, low-cut biermädchen bodices and flowing skirts in earthy colors. Cleavage as far as the eye can see.
Munich feels, to this cultural Luddite at least, like it’s ready to dissolve into a bawdy, soft-core 1970s Bavarian sex comedy at any moment.
Thankfully, inside the stylish Sofitel Munich Bayerpost hotel the attire is strictly business-casual.
Turnout for newdomains.org appears to be good — maybe a couple hundred people — and there are plenty of faces beyond the “usual suspects”, thanks probably to the number of locals in attendance.
Today kicked off with a keynote from new ICANN chair Steve Crocker.
Allotted 30 minutes, he whizzed through his presentation on “New gTLDs: Innovation and Protection” in about 20, covering many of the same bases, I’m told by attendees, as he did at the INTA trademark conference in Washington DC last week.
“These new TLDs are a springboard for innovation,” he said. “But this must not happen at the expense of brand holders.”
At a press conference later, I got the distinct impression – and it is only my impression – that Crocker is rather more enthusiastic about the program than ICANN’s current softly-softly approach to new gTLDs outreach allows him to express.
The party line from ICANN for the last few weeks has been one of “awareness, not advocacy”, which Crocker toed loyally today.
This may be sensible – it should not be seen to encourage the world and his dog to apply for a new gTLD – but the end result is that the naysayers have managed to successfully frame the issue, which is reflected in the largely negative questions that are usually asked.
The conference is split into two streams, one aimed at newbies, the other at people in more advanced stages of planning their new gTLD bids. I’ve been mainly sitting in on the latter.
In the morning, Roland LaPlante from Afilias presented some really good data and charts showing domain registration trends in the new gTLDs that have been introduced over the last 10 years – both ICANN-approved gTLDs and ccTLDs such as .eu and .me.
If there was one big takeaway from that session, it was that the first and second-year renewal dates are crucial if you want to build a sustainable gTLD. Every TLD dips around that mark.
LaPlante also revealed that, in a first-quarter 2011 survey, 18.7% of .info addresses hosted unique, dedicated web sites. About 65% were inactive or redirected to other TLDs.
While this seems like a small amount, given the size of .info it actually works out to a couple of million people/businesses using a non-.com gTLD as their main home on the web. Any TLD, I think, would be happy to have so many actual users.
The main letdown in the Afilias data, I thought, was the absence of any mention of the success of .co.
Fair enough, .co is only a year old and its numbers are not fully public, but the cynic in me notes that its exclusion probably will have made Afilias’ back-end figures shape up against rival Neustar’s rather better than they would have otherwise.
In the afternoon, I moderated a panel on registration strategies in the world of new gTLDs, featuring Monte Cahn and Mike Berkens of Right Of The Dot and Tim Schumacher of Sedo.
But first, I caught the tail-end of a presentation about internet policy from PIR’s CEO Brian Cute, who seems to be worried about the growing problem of governments using domain takedown notices as a means of law enforcement.
Schumacher kicked off our session with a presentation on his thoughts about new gTLD pricing, in which he compared four categories of company you might find on the stockmarket to four equivalent categories of domain names.
Essentially, he concluded that new gTLDs are going to be split between “junk” – the gTLD equivalent of www.a-junk-site.ws – and “brands” – comparable to vodka.com.
He said the new gTLD boom will mean “Some new business. No real change.” in terms of pricing and said a small number of “disruptive” new registries could help the industry.
We then launched into a discussion of registries’ premium name strategies – how to balance the allocation of premiums between founders programs, landrush auctions and registry reservations.
Unsurprisingly, you couldn’t slide a cigarette paper between Cahn and Berkens, but I think there was probably some disagreement on the panel about the relative importance of the role of domain investors in promoting a new gTLD.
Berkens said that high-profile domainers are “market-makers”, helping set the valuation expectations, whereas Schumacher (and to a lesser extent some of my questions) put a greater emphasis on the need for end user adoption and development.
It’s difficult to judge the success of a panel you’re sitting on, but I will admit that we shamefully overlooked the issue of IDNs until the closing moments, which was entirely my fault.
I finished the day at the “Ask the Experts” session in the newbie channel, on the basis that I’ve listened to enough panels on new gTLDs in the last two years to know that the value, for me, is in the questions.
Sadly, possibly due to attendees flagging at the end of the day, there weren’t many questions from the floor, leaving professional moderator Melinda Crane to pick up the slack.
One session unlikely to have that problem tomorrow is a two-man panel on the Applicant Guidebook comprising ICANN’s Kurt Pritz and Olof Nordling.
Today, these two ICANN experts been sitting on the front row of many sessions, enabling panelists to deflect tricky audience questions about the application process to them.
I don’t think there will be any shortage of questions during their session tomorrow.

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WordPress.com’s registrar service: Slow cookin’ makes good eatin’

Kevin Murphy, September 26, 2011, Domain Registrars

WordPress.com provider Automattic has not abandoned its plans to start offering domain names directly to its users, according to its lead developer.
It’s been about 11 months since the company received its ICANN accreditation, but it is currently still acting as a Go Daddy reseller.
“Our registry product is still under development,” Automattic founder and chief barbecue taste tester (really) Matt Mullenweg said in an email. “Slow cookin’ makes good eatin’.”
WordPress.com announced last week that it would start offering .me domains, alongside .com, .org, and .net, saying it would give users a better chance to get a domain they liked.
The .me registry, Domen, is a joint venture whose partners include Go Daddy and Afilias.
“GoDaddy is a valued partner and we continue to use many of their services as part of our business,” Mullenweg added.
Domain names are WordPress.com’s best-selling add-on product. According to DomainTools, over 226,000 domains are hosted on the same servers as WordPress.com.

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Telepathy sells Republic.com for $200,000

Kevin Murphy, September 23, 2011, Domain Sales

Sedo has brokered the sale of the domain name republic.com for $200,000.
It appears to be an end-user sale – Whois reveals the buyer is the UK clothing retailer Republic, which already owns republic.co.uk.
Republic.com already redirects surfers to the .co.uk site.
The seller appears to be Telepathy Inc, the company owned by well-known domainer Nat Cohen.
It’s the third six-figure deal Sedo has announced this week, following the $100,000 sales of silvercoins.com and siteweb.com.

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Should .com get a thick Whois?

Kevin Murphy, September 23, 2011, Domain Registries

The ICANN community has taken another baby step towards pushing VeriSign into implementing a “thick” Whois database for .com and .net domain names.
The GNSO Council yesterday voted to ask ICANN to prepare an Issue Report exploring whether to require “all incumbent gTLDs” to operate a thick Whois. Basically, that means VeriSign.
The .com and .net registries currently run on a “thin” model, whereby each accredited registrar manages their own Whois databases.
Most other gTLDs today run thick registries, as will all registries approved by ICANN under its forthcoming new gTLDs program.
The thinness of .com can cause problems during inter-registrar transfers, when gaining and losing registrars have no central authoritative database of registrant contact details to rely upon.
In fact, yesterday’s GNSO vote followed the recommendations of a working group that decided after much deliberation that a thick .com registry may help reduce bogus or contested transfers.
Trusting registrars to manage their own Whois is also a frequent source of frustration for law enforcement, trademark interests and anti-spam firms.
Failure to maintain a functional web-based or port 43 Whois interface is an often-cited problem when ICANN’s compliance department terminates rogue registrars.
Now that an Issue Report has been requested by the GNSO, the idea of a thick .com moves closer to a possible Policy Development Process, which in turn can create binding ICANN consensus policies.
There’s already a clause in VeriSign’s .com registry agreement that gives ICANN the right to demand that it creates a centralized Whois database.
Switching to a thick model would presumably not only transfer responsibility to VeriSign, but also cost and liability, which is presumably why the company seems to be resisting the move.
Don’t expect the changes to come any time soon.
Writing the Issue Report is not expected to be a priority for ICANN staff, due to their ongoing chronic resource problems, and any subsequent PDP could take years.
The alternative – for ICANN and VeriSign to come to a bilateral agreement when the .com contract comes up for renewal next year – seems unlikely given that ICANN did not make a similar requirement when .net was renegotiated earlier this year.

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NBT agrees to $236m buy-out

Kevin Murphy, September 23, 2011, Domain Registrars

Following in the footsteps of larger rival Go Daddy, the UK-based registrar Group NBT has agreed to be bought out by private investors for £153 million ($236m).
NBT owns registrars including NetNames, Ascio and Indom.
The all-cash offer comes from investors led by HgCapital and represents a 22.5% premium on the company’s closing share price yesterday.
At 550p a share, the offer stands to make a profit for anybody who has bought NBT shares in the last ten years, according to the company.
The news came as NBT reported an annual profit, excluding certain items, up organically 9% at £8.9 million ($13.8m) on revenue that was up 4% at £45.7 million ($70.6m).
Including the results from French registrar Indom, which the company acquired last December, profit was up 18% at £9.6 million ($14.8m) on revenue up 13% to £49.5 million ($76.5m)
The NBT deal is merely the latest in a series of buyouts and mergers to hit the registrar market this year.
As well as Go Daddy’s $2 billion+ change of control, Network Solutions recently sold out to Web.com for $561 million in cash and stock, and Tucows acquired EPAG Domainservices for $2.5 million.
At least one city analyst thinks the buyout timing relates to ICANN’s forthcoming new generic top-level domains program, and is bullish on Top Level Domain Holdings shares as a result.
Will the wave of consolidation continue? Who’s next?

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It’s official: London to seek .london gTLD

Kevin Murphy, September 22, 2011, Domain Registries

The official promotional agency for the city of London has formally declared its interest in applying to ICANN for a .london generic top-level domain.
I reported the story for The Register yesterday, and the official press release was sent out this afternoon, but it appears that I was misinformed about the issuance of a Request for Proposals.
According to London & Partners, at the moment it is only analyzing the potential costs and benefits, as well as consulting with local stakeholders.
The agency said in its press release:

In addition to enhancing the promotion of the capital, London & Partners is investigating what opportunities the ownership of the gTLD licence could bring in terms of harnessing commercial revenue streams and new job creation, whilst ensuring value for money.

It’s been backed by the office of Boris Johnson, the Mayor of London.
Two UK registries, Nominet and CentralNic, have already thrown their hats in the ring as likely bidders if and when an RFP is released.

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Bob Parsons worth $1.5bn, ranked 293 on Forbes 400

Kevin Murphy, September 22, 2011, Domain Registrars

Go Daddy executive chairman Bob Parsons is the 293rd wealthiest person in America, with a self-made fortune of $1.5 billion, according to the latest Forbes 400 rich list.
In its annual league table, published yesterday, Forbes ranks Parsons tied with tech investors such as LinkedIn co-founder Reid Hoffman and Groupon co-founder Evan Lefkofsky.
Parsons, Go Daddy’s founder and erstwhile CEO, is a debutant on the list following his sale of a majority stake in the company to a group of institutional investors.
KKR, Silver Lake and Technology Crossover Ventures collectively bought out more than half of Go Daddy in a deal announced in July, reportedly worth north of $2 billion.

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