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Tucows expands into 200 TLDs with $2.5m deal

Kevin Murphy, August 2, 2011, Domain Registrars

Tucows has acquired EPAG Domainservices, a Bonn, Germany-based domain name registrar, for $2.5 million.
The deal is notable for the size of EPAG’s top-level domain catalog – it offers registrations in 200 TLDs compared to Tucows’ current 33.
Tucows hopes to offer all 200 to its 12,000-strong reseller channel before the end of the year, according to a press release.
CEO Elliot Noss said: “We expect that the deep expertise in registry integration we gain from EPAG will add invaluable bench-strength to our team as we prepare for ICANN’s roll-out of new TLDs.”
EPAG was previously owned by QSC, one of Germany’s largest ISPs.
The registrar has a portfolio of 400,000 customer domains under management, which Tucows is getting its hands on for an average of $6.25 per domain.
Tucows’ OpenSRS channel currently accounts for about 11 million domains, making it the third-largest registrar after Go Daddy and eNom.
More than half of EPAG’s registrations appear to be in ccTLDs. Webhosting.info puts its share of the ICANN gTLD market at 160,623 domains.

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ICANN appoints new Ombudsman

Kevin Murphy, August 2, 2011, Domain Policy

ICANN has named Kiwi lawyer Chris LaHatte as its new Ombudsman.
The appointment, which runs for an initial period of two years from July 28, was made during a board meeting last Thursday, and revealed today.
LaHatte said this of his qualifications, on the ICANN blog:

I am an experienced mediator and lawyer and have practiced in New Zealand, Taiwan and Central Asia. I qualified as a lawyer from the University of Auckland and earned a Masters Degree in Dispute Resolution from Massey University, with judicial settlement conferences as my thesis. I am a Fellow of the Arbitrators and Mediators Institute of New Zealand, a mediator for the New Zealand Law Society on cost issues and a construction law adjudicator.

While his experience appears to be primarily in the construction industry, he seems to have at least a bit of domain savvy already, given that he owns his last name under .co.nz.
LaHatte replaces interim Ombudsman Herb Waye, who stood in following the departure of his old Mountie colleague Frank Fowlie, ICANN’s first Ombudsman, who quit in January.
The Ombudsman role was set up to handle complaints about the organization. It is often criticized for being relatively toothless.

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PIR sets its sights on .ngo

Kevin Murphy, August 1, 2011, Domain Registries

The .org registry hopes to add .ngo – for Non-Governmental Organization – to its stable of top-level domains, when ICANN opens its new gTLD program next year.
It may well face competition for the domain, however.
It’s quite difficult to narrowly define what an NGO is, but the Public Internet Registry plans to adopt a fairly broad definition that will give it potentially “millions” of new registrants.
“We’re looking at global, regional, and local NGOs, we’re engaging with all of them,” said PIR chief Brian Cute. “This acronym is something that these organizations strongly identify with.”
Cute said PIR has letters of support from some NGOs already, but is not prepared to disclose the identities of its supporters just yet.
Many NGOs are based in emerging markets – according to Wikipedia, India has as many as 3.3 million of them. PIR hopes to encourage domain growth in developing nations, Cute said.
With that in mind, we’re probably not looking at super-premium pricing, though PIR is not talking specific details of its plan yet.
It will be a self-designated “community” application, meaning it will qualify for a Community Priority Evaluation in the event that ICANN receives more than one bid for .ngo.
When a CPE kicks in, applications are scored against a number of criteria and have to get 14 out 16 points in order to win a contested gTLD without going to auction.
Those 14 points are not easy to win, however. Even .ngo, with its commonly understood meaning, may be a hard call.
As it happens, there is already potentially one other .ngo bidder.
The British charity Article 25 has been pondering a .ngo application since 2008, according to its web site at dotngo.net.
That initiative seems to have roughly similar goals to PIR — global, restricted, non-profit — and VeriSign seems to have been engaged as a possible registry services provider.
PIR plans to stick to its existing back-end infrastructure provider, Afilias.
As a community application, it will be a “closed domain”, Cute said. Unlike .org, there will be eligibility criteria to pass before you’re allowed to register a domain name.
PIR also plans to apply for internationalized domain name transliterations of .org, in Chinese, Hindi, Cyrillic and Arabic, Cute said.
Here‘s the site for the application.

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Big Content calls for government new gTLD oversight

Kevin Murphy, August 1, 2011, Domain Policy

The music, movie and advertising industries have backed a US move that could see governments getting more control over the approval of new top-level domains.
They’ve urged the National Telecommunications and Information Administration to keep a proposed rule that would force ICANN to show a new gTLD is in the “global public interest” before giving it the nod.
But they are opposed by many other stakeholders who responded to the NTIA’s Further Notice Of Inquiry on the renewal of ICANN’s IANA contract.
The FNOI resulted in about 35 responses, from companies and organizations on five continents.
The most controversial question posed by the NTIA was whether the IANA contract should include this provision:

For delegation requests for new generic TLDS (gTLDs), the Contractor [ICANN] shall include documentation to demonstrate how the proposed string has received consensus support from relevant stakeholders and is supported by the global public interest.

This was broadly interpreted as a way for governments to have a de facto veto over new gTLD applications, via ICANN’s Governmental Advisory Committee.
The proposed measure has now been supported by the Recording Industry Association of America, the Association of National Advertisers, and the Coalition for Online Accountability, which represents the music and movie industries.
Brand owners want another bite
In his strongly worded response, ANA president Robert Liodice wrote that the new gTLD program “is likely to cause irreparable injury to brand owners”, adding that it supported the NTIA’s proposal.

[It] provides a layer, however thin, of contractual protection that gTLDs will not be deposited to the authoritative root zone without appropriate justification. While the ANA believes that these protections are marginal at best, and that a more secure, safe and permanent solution must be found to prevent the harms to brand owners and consumers described above; nonetheless, “something is better than nothing”

Special interests
The RIAA said in its filing that it “strongly supports” the proposal, on the basis that it thinks .music, if approved as a gTLD, could lead to more online music piracy.

there are no concrete obligations in the latest application guidebook to implement heightened security measures for these types of gTLDs that are focused on particular industries such as record music. Given the the risk that such a gTLD application could pass through the ICANN process without committing to such measures, it should be incumbent on the IANA contractor to document how its entry into the root would meet the “global public interest” standard.

It’s a drum the RIAA, never afraid of making special-interest arguments on matters of internet governance, has been beating for some time.
It stopped short of asking for all existing TLDs (and IP addresses, in the case of peer-to-peer applications) to be banned outright, which would presumably do much more to prevent piracy.
Oh no you ditn’t!
The COA, which includes the RIAA among its members, has the honor of being the first of ICANN’s critics to raise the Peter Dengate Thrush Situation to officially bash the organization.
PDT, as you’ll recall, joined Minds + Machines, likely to be a volume gTLD applicant next year, just a few weeks after he helped push through ICANN’s approval of the gTLD program.
COA counsel Steve Metalitz wrote:

This development tends to confirm COA’s view that “the new gTLD process, like so much of ICANN’s agenda, has been ‘led’ by only a small slice of the private sector, chiefly the registrars and registries who stand to profit from the introduction of new gTLDs.”

If a “check and balance” on addition of these new gTLDs to the root was advisable prior to this announcement, it now appears to be indispensable.

Plenty of ICANN stakeholders on both sides of the new gTLD debate have been calling for a review of ICANN’s ethics policies recently, so the COA is far from alone in highlighting the perception problem PDT’s move, and others, may have created.
It looked dodgy, and people noticed.
But on the other hand…
Many responses to the FNOI take the opposing view – saying that the “global public interest” requirements appear to run contrary to IANA’s technical coordination mandate.
IANA’s statement of work, which mandates IANA staff independence from ICANN policy-making, seems like a very odd place to introduce a vague and highly policy-driven oversight check.
Opposition came from the gTLD registry community and likely applicants, as you might expect, as well as from a number of ccTLD operators, which was perhaps less predictable.
A typical response, from the ccNSO, was:

While recognising and supporting the need for ensuring that new gTLDs have consensus support and are consistent with the global public interest, the ccNSO suggests that the IANA contractor’s role should simply be to verify that ICANN has followed the Guidebook process and that all the evaluation criteria (not just the two referred to) have been met.

A number of responses also call for the strict separation of IANA staff from ICANN’s policy-making functions to be relaxed. The way the NTIA’s proposal is currently worded, it’s not clear if IANA’s experts would be able to provide their input to important work.

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VeriSign boss leaves domain industry

Kevin Murphy, August 1, 2011, Domain Registries

Former VeriSign chief executive Mark McLaughlin, who resigned last week, is leaving the domain name industry entirely, signing up as the new CEO of Palo Alto Networks, a firewall vendor.
The privately held company is being tipped for an imminent IPO, which could mean a big stock payday for McLaughlin if executed successfully.
The Wall Street Journal quotes McLaughlin today as saying “the upside is on the equity side”.
Coming ahead of the launch ICANN’s top-level domains program, you could have been forgiven for thinking that McLaughlin may have been headhunted by a new gTLD player.
That would have been a heck of an endorsement of the commercial opportunity of new gTLDs, for the head of .com and .net to throw in with the newcomers.
But clearly McLaughlin has realized there’s more money in firewalls.
Smart man.
At VeriSign, founder Jim Bedzos has taken over as CEO while a permanent replacement for the 10-year VeriSign veteran is sought.

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Fight over gb.com claims thousands of victims

Thousands of companies that use the pseudo-top-level-domain .gb.com have gone offline due to a legal fight between the registry and its founder.
CentralNIC sells third-level gb.com domains as a “Great Britain” alternative to .co.uk. A Google search reveals a great many small businesses use the extension for their web sites.
They’re all out of luck today. Anybody attempting to access any .gb.com domain is now welcomed by a placeholder page, which states:

You may be here because you have been sold a domain or email service using the gb.com domain that has ceased to work.
You can restore that service swiftly by registering with GB.COM Ltd.
GB.COM Ltd will not provide a service that you have paid others for, unless they have an arrangement with GB.COM Ltd.
If you have already paid for future service and it has ceased then you should contact your supplier.

GB.com appears to be owned by Stephen Dyer, who founded CentralNIC in 2000, but left the company following a buyout several years ago.
“This interruption relates to a longstanding legal dispute regarding the domain name gb.com, dating back to when the current shareholders acquired the business in 2004,” CentralNIC said.
Historical Whois records show that the email address associated with gb.com switched from CentralNIC to a webmail account at some point in September that year.
It’s currently registered to steve@enovi.com, which appears to be a Dyer-owned domain.
CentralNIC evidently has been selling domains under an extension it was not in control of for the last seven years, and now whatever leasing agreement it had arranged has broken down.
The company said: “We are currently taking legal advice about this and will be taking urgent steps to restore the service, but we cannot achieve that instantly.”
Until a solution can be found, it recommends that affected registrants sign up with GB.com to (hopefully) quickly restore DNS service to their sites.
However, the new GB.com site is so painfully amateurish that some customers seem to have mistaken it for a phishing attack.
I have some additional advice – after your gb.com domain is resolving again, register a new domain in a proper TLD (.uk, .com) and redirect all your traffic to it until your users know where to find you.
Then cancel the gb.com domain.
GB.com Ltd has already demonstrated pretty comprehensively that it doesn’t give a damn about your business, so I think you’ll agree it doesn’t deserve your money.
There are ways to go about a registry transition seamlessly, and this most certainly is not one of them.
Quite how GB.com hopes to match newly signed-up customers with the true previous registrants is not entirely clear – there’s potential for abuse unless it has full access to CentralNIC’s thick Whois.
Also worth pondering — where’s all the email to .gb.com domains going?
While this is a commercial dispute, rather than a technical stability problem, it still Looks Bad for CentralNIC, which recently has been heavily marketing itself as a “.brand” back-end provider.
It shouldn’t harm the company’s ability to pass an ICANN technical evaluation, but it may give potential clients pause for thought.
Of the 20 pseudo-TLDs listed on CentralNIC’s site, at least three others – us.com, us.org and gr.com – appear to be registered in the names of third parties, according to Whois records.
There’s no reason to believe these domains are in any immediate danger, however. They don’t appear to have any connection to GB.com or Dyer.
CentralNIC said: “We can confirm, with absolute certainty, that no other CentralNic domain extensions are subject to any such disputes.”
That will come as little comfort to the thousands of small businesses that find themselves offline today.
One such customer has set up a LinkedIn group to discuss the situation, and Twitter traffic from customers seems to be increasing as British users wake up to the news.
UPDATE: It seems that Stephen Dyer has form.
He was also director of Snappy Designs Ltd, owner of the photo-hosting site Fotopic.net, which went into liquidation earlier this year, leaving thousands of photographers stranded.
Amateur Photographer reported in March that potentially millions of images could have been lost due to the business’s failure.
The site currently says the images are safe. Users do not have access to them, however.
(spotted by @whois_search)

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VeriSign CEO quits. But where’s he going?

VeriSign’s CEO and president Mark McLaughlin has quit the company for a CEO position at an undisclosed private company.
The news of his departure, after two years at VeriSign’s helm, came during the company’s second quarter earnings call yesterday.
McLaughlin’s been at VeriSign for over a decade. In his time as CEO, he oversaw a massive restructuring at the company.
VeriSign is now dramatically smaller – 1,000 people compared to 5,000 when he took over – following the sale of assets such as the security business, which Symantec bought.
His resignation is effective on Monday, but he’s told the company he’ll stick around until late August. Founder and chairman Jim Bedzos will become interim CEO while a replacement is found.
But where’s McLaughlin going?
The timing, less that six months before ICANN’s new top-level domains program kicks off, is certainly curious. It would be an unbelievable coup for a new gTLD firm to hire the former boss of .com.
A lot of people are switching companies at the moment, positioning themselves the best to exploit the new gTLD opportunity. (Anybody need a writer? I’m told my prices are very reasonable).
But he could be going anywhere, of course.
On VeriSign’s earnings call yesterday, McLaughlin said he wanted to join a private company and take it public, which made me think he may be leaving the domain business entirely.
McLaughlin is an advisor to Altos Ventures, a venture capital firm with a bunch of startups to its name.
There are not a great many companies in the domain industry – that we know about, at least – that immediately jump out as near-term IPO candidates.
McLaughlin plans to announce his new employer next week.

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FarmVille domain seized from Chinese squatter

Kevin Murphy, July 28, 2011, Domain Policy

Zynga has claimed control of the domain name farmville.co.uk from a Chinese cyberquatter.
The summary decision under Nominet’s Dispute Resolution Service was made July 14, and posted to the Nominet web site today, but the Whois still shows the previous owner.
According to Whois records, the domain was registered July 1, 2009, just a couple of weeks after the popular FarmVille game launched on Facebook.
The domain currently resolves to a Sedo placeholder page.
If this proves anything, it’s that owners of rapidly growing web applications need to keep an eye on their brands in non-core TLDs, because cybersquatters are too.

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ICANN demands the right to terminate .jobs

ICANN has asked the International Chamber of Commerce to rule that it has the right to terminate Employ Media’s .jobs contract.
It’s filed its response to Employ Media’s demand for arbitration over the disputed Universe.jobs service, which saw the registry vastly expand the .jobs space.
Employ Media “transcended the very intent behind creation of the TLD” with Universe.jobs, which allocated tens of thousands of .jobs domains to the DirectEmployers Association, ICANN said.
The organization wants the ICC to rule that it “may, but is not required to, terminate the Registry Agreement with Employ Media”, as it has already threatened.
Employ Media took ICANN to arbitration in May, after ICANN notified it that it was in breach of its registry agreement and they were not able to settle their differences in private talks.
The registry wants a declaration that it is not in breach.
But according to ICANN, Employ Media is still and has always been restricted to selling domains just to human resources professionals to promote jobs “within their own organizations”.
That’s despite ICANN’s approval of a contract amendment last year that allowed the registry to sell non-companyname .jobs domains.
This liberalization, ICANN says, did not allow the company to launch Universe.jobs, which monetizes at least 40,000 geographical and vocational .jobs through a massive third-party jobs board.
ICANN is now trying to frame the arbitration proceeding around a single question – was its breach notice “appropriate” or not?
The whole debacle is based around two interpretations of the .jobs Charter, which spells out who can register .jobs domains. This is what it says:

The following persons may request registration of a second-level domain within the .JOBS TLD:
– members of SHRM [the Society For Human Resources Management]; or
– persons engaged in human resource management practices that meet any of the following criteria: (i) possess salaried-level human resource management experience; (ii) are certified by the Human Resource Certification Institute; (iii) are supportive of the SHRM Code of Ethical and Professional Standards in Human Resource Management, as amended from time to time, a copy of which is attached hereto.

Employ Media’s interpretation is fairly literal and liberal – any signed-up SHRM member can register a .jobs domain and somebody at DirectEmployers is a member and therefore eligible.
Becoming a SHRM member is pretty straightforward and cheap. It’s not much of a barrier to entry.
ICANN argues that this interpretation is bogus:

Employ Media has espoused policies that allow a .JOBS domain name (or thousands of them) to be used for virtually any purpose as long as a human resource manager is propped up to “request” the domain. In doing so, Employ Media has failed to enforce meaningful restrictions on .JOBS registrations, as required by the Registry Agreement.

It further argues that Employ Media should have allocated premium .jobs domains through an “open, fair and transparent” process, rather than the “self-serving… backroom deal” with DirectEmployers.
Evidence now filed by ICANN shows that the two organizations have been arguing about this since at least November 2009, when Employ Media launched a Universe.jobs “beta”.
ICANN also now says that it has no problem with Universe.jobs, provided that Employ Media and SHRM amend their Charter policies to make the service retroactively compliant.
The more this dispute progresses and the more convoluted and expensive it becomes, the more it leaves me scratching my head.
You can download the latest arbitration documents from ICANN.

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ICM gives away .xxx domains to porn stars (video)

It seems that pretty much every time I’ve written about .xxx over the last five or six years the article has been mentioned, or focussed on, how the porn business hates it.
For a change, here’s a shameless propaganda video (possibly NSFW) that ICM Registry produced during a recent, evidently quite boozy, party at Platinum Lace, a strip joint in London.

Context: ICM was sponsoring the party.
The people heard supporting .xxx are either porn actresses who’ve just been given their .xxx domains, employees of the Paul Raymond stable of top-shelf men’s magazines, or domain registrars.
One of the interviewers is “Mario”, a Z-lister known for being annoying on the TV show Big Brother last year. I figured his 15 minutes were already up, but I guess not.
The other is ICM’s sales director Vaughn Liley. He’s the one who starts interviews with the question “So, do you think .xxx will be good for the industry, or great?”
Watch out, David Frost.
Also seen posing, though not speaking, is Ben Dover, pretty much the only mainstream-famous porn video producer ever to come out of the UK.

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