Calls to fix new gTLD “revolving door” at ICANN

ICANN’s CEO has acknowledged calls for a rethink of its ethics policies in light of the approval of the new generic top-level domains program and a recent high-profile staff departure.
Rod Beckstrom, during his opening remarks at ICANN’s international public meeting in Singapore last week, said he expects to lose staff to new gTLD applicants:

we could see a rise in departures as our highly qualified staff are recruited by other organizations, including some in this room, for their unique experience in this emerging area.
This would be a solid endorsement of our staff. Not unexpectedly, the first such resignation has already occurred.
I am pleased to hear the community begin discussions on whether ICANN ethics policies need to be strengthened.

The resignation referred to was that of Craig Schwartz, who has quit his job as ICANN’s chief gTLD registry liaison to head BITS’ application for .bank and other financial TLDs.
There are fears that the sudden influx of new money into the gTLD space could easily attract ICANN’s top talent away from the organization, making it less effective.
This looming problem is particularly troubling given ICANN’s recent staff retention problems.
Adrian Kinderis, CEO of likely applicant and registry services provider AusRegistry, said during a meeting between the ICANN board and the GNSO Council last week:

I need to ramp up some people very very quickly that know about this domain application process, and I’ll pay big dollars because there’s big dollars out there…
If you don’t do something, I will poach all your good people.

A small number of people who know the Applicant Guidebook inside-out – I’ve heard stories of meetings where ICANN executives use a whiteboard to brainstorm all the possible ways to game the program – would make invaluable recruits for registry services providers or consulting firms.
Senior vice president Kurt Pritz, who’s been heading the development of the Guidebook for the last few years, would be a killer hire if and when he decides to leave.
Currently, there’s nothing in these employees’ contracts that would prevent such talent leakage – although many have signed confidentiality agreements – Beckstrom said on Monday.
The GNSO has started talking about a policy that could help prevent a “revolving door” between the industry and ICANN, which is in many ways its regulator.
A very early-stage draft document compiled by Go Daddy’s Tim Ruiz has been circulated to the Council, outlining eight ideas for such a policy.
It could for example require contracted parties to agree not to hire ICANN staff during their employment and for a period thereafter, and vice versa.
It also suggests banning staff joining ICANN from a contracted party working on matters related to that company for two years after being hired.
Governments around the world already have such policies in place, although they vary wildly and are enforced with various degrees of effectiveness.
Perversely, the fact that everyone knows these talks are now underway may in fact accelerate registries’ headhunting of ICANN staff – there presumably can be no revolving door ethics policy violation before a revolving door ethics policy has been created.

1 Comment Tagged: ICANN, new TLDs

Go Daddy sale to make Bob Parsons a billionaire

Number one domain name registrar Go Daddy is in talks to sell out to private investors in a deal worth north of $2 billion, according to reports.
The deal, first reported by the New York Post and subsequently confirmed by other newspapers, would see the company acquired by a group led by Silver Lake Partners and KKR & Co for between $1 billion and $2.5 billion.
An official announcement could come as soon as Tuesday, these reports said.
Go Daddy has been subject of exit strategy rumors before, notably late last year, and it came to nothing, but this time it’s looking like a done deal.
The company also attempted to go public in 2006, but its IPO was yanked due to poor market conditions and other reasons.
In fact, IPOs appear to be the exception rather than the rule when it comes to domain name registrars.
Register.com did go public, but it didn’t work out too well and it was reprivatized. Network Solutions also wound up in private hands. Demand Media listed last year, but eNom is not its core business.
For many, Go Daddy is synonymous with its flamboyant chief executive, Bob Parsons, who founded the company in 1997 with the proceeds of a previous technology company sale.
As the company’s primary shareholder, the sale will likely make him a billionaire. The question is: as a serial entrepreneur, how long will Parsons stick around?
He’s a pretty good businessman, to be sure, but he’s never struck me as somebody who’s particularly passionate about the domain name industry.
I expect he’ll stick around for a while to groom his successor after the sale closes – it may even be a condition of the deal – but I’d be surprised if he’s still at the helm two years from now.
I understand there are also a number of senior Go Daddy executives with share options; we’re likely to see these guys on the receiving end of windfalls if the deal goes through.
I’ll also be interested to see how new ownership will affect Go Daddy’s philanthropic work.
The company does not like to talk about it (more than three or four times a month) but it does contribute a fair bit to charitable projects.
I don’t think new management will attempt any kind of drastic shake-up of Go Daddy’s business model, such as raising prices, in the short term.
The company has a winning formula that is not in need of fixing right now.

4 Comments Tagged: bob parsons, go daddy, ipo

VeriSign’s .net contract renewed

VeriSign has been given the nod to continue to run the .net domain registry after a vote by ICANN’s board of directors today.
The vote was 14-0, with director Bertrand De La Chappelle abstaining without explanation.
The renewal is hardly surprising – nobody thought for a second that VeriSign would fail to retain the contract – but the deal was controversial anyway, due to a Boing-Boing misunderstanding.
The contract still allows VeriSign to carry on raising prices, by up to 10% in any given year, and it still calls for ICANN to receive $0.75 per domain, which currently adds up to over $10 million a year.
The money is still ostensibly earmarked for special projects including extending ICANN’s outreach into developing nations and DNS security, and the resolution passed by the board today says:

ICANN commits to provide annual reporting on the use of these funds from .NET transaction fees.

This is presumably designed to address criticisms that it basically ignored its commitment under the 2006 .net agreement to set up two “special restricted funds” to manage .net cash, as I reported on here.

1 Comment Tagged: .net, ICANN, singapore, verisign

OpenRegistry wins .gent registry deal

Add another city top-level domain to your lists, the Belgian city of Ghent is set to apply for .gent, using OpenRegistry as its back-end registry software provider
The application for .gent will be made to ICANN by ComBell, a smallish local registrar, which already has the required local government support.
Ghent is Belgium’s third-largest city, with 250,000 residents, so we’re probably looking at a relatively low-volume TLD.
The “Gent” spelling is Dutch.
It sounds like ComBell will be running the infrastructure, assuming the bid is approved, using OpenRegistry’s software, which has also been selected to run a couple of small new ccTLDs.

2 Comments Tagged: .gent, combell, ghent, openregistry

Crocker picked to lead ICANN

Steve Crocker has been elected chairman of ICANN’s board of directors, following the departure of Peter Dengate Thrush, whose term on the board expired today.
Described earlier this week by CEO Rod Beckstrom as “one of the uncles of the internet”, Crocker is the creator of the Request For Comment format for internet standards.
Replacing Crocker as vice-chair is fellow geek Bruce Tonkin, chief strategy officer of Melbourne IT, the Australian domain name registrar.
Both men were selected by secret board poll.
The board revealed the unsuccessful candidates for the first time too: Cherine Chalaby and Sebastien Bachollet stood for chair, while Bachollet and Ray Plzak stood for vice-chair.
Because Crocker’s term on the board ends in October, his long-term future depends now on whether the ICANN Nominating Committee decides to renew his term for another three years.
I expect it will. Last year, NomCom kicked out all three of its appointees whose terms were up, irking some. Declining to re-appoint Crocker this year could look like regicide by committee.
This leaves NomCom with only one pick in 2011. It will almost certainly be a woman from a region currently under-represented on the board. My guess is Russia.
Also joining the board today was .au’s Chris Disspain, who replaces Dengate Thrush as ccNSO appointee, and Canadian consultant Bill Graham, who replaces Rita Rodin Johnston from the GNSO.

Comment Tagged: board, elections, ICANN

ICANN names European vice president

ICANN has appointed Thomas Spiller to be its first vice president, Europe.
Spiller has worked for the French Prime Minister’s Office, but most recently was head of global policy strategy at the software vendor SAS.
He’s a French national, but will be based in ICANN’s Brussels office when he begins, August 29.
“I look forward to reinforcing ICANN’s outreach to all stakeholders and strengthening the ongoing inclusive dialogue with Europe’s Internet users, national governments, EU institutions and business,” he said in a press release.
If you’re counting, Spiller will be ICANN’s eighth vice president, the third to be appointed this year.

Comment Tagged: ICANN

ICM names former ACLU chief to policy board

ICM Registry has appointed former American Civil Liberties Union president Nadine Strossen to the Policy Council of IFFOR, the oversight body responsible for the .xxx top-level domain.
Strossen held the role at the ACLU between 1991 and 2008. Her appointment to the largely volunteer role at IFFOR is a bit of a coup for the organization.
She fills the seat designated for a free speech advocate.
Also named to the council is Sharon Girling, a former British cop who was closely involved in many high-profile child abuse imagery stings, including Operation Ore.
Law professor Fred Cate has been appointed the council’s security/privacy expert, and first amendment lawyer Bob Corn-Revere is ICM’s appointed representative.
There will be five other policy council members, all drawn from the porn industry, named in July or August, IFFOR said in a press release.
IFFOR, the International Foundation For Online Responsibility, will get $10 a year from every .xxx domain name registered.

Comment Tagged: icm registry, iffor, policy council, xxx

Kroes slams ICANN new gTLD approval

Neelie Kroes, vice-president of the European Commission, has repeated her call for ICANN reform after it rejected governmental advice in its newly approved top-level domains program.
According to a statement from her official spokesperson sent to Intellectual Property Watch, Kroes said the approval of the program “disregard[ed] governmental advice on public policy issues” and “underscores the need for the model to be reformed to remain sustainable”.

The lack of an adequate response on the part of ICANN Board clearly points to some deficiencies in the current functioning of the model. This calls for specific actions in order to remedy the situation.

Kroes seems to believe that governments are entitled to every concession they demand from “multistakeholder” policy-making processes.
According to IP-Watch, she promised to coordinate a response with EU member states and the US.
While the Governmental Advisory Committee had filed about 80 objections to aspects of the Applicant Guidebook earlier this year, ICANN managed to whittle the list down to a small handful.
It refused to remove the requirement for trademark owners to provide proof of use before participating in sunrise periods, and to lower the burden of proof in certain anti-cybersquatting mechanisms.
Governments also don’t seem particularly convinced by ICANN’s decision to approve the program before consulting more deeply with competition authorities over the vertical integration issue.
GAC chair Heather Dryden delivered a more measured statement expressing “disappointment” with the decision yesterday.
EC GAC representative Gerard de Graaf, who’s earning himself a reputation in ICANN as a bit of a firebrand, was less measured in his response, accusing ICANN of potentially putting new gTLD applicants at risk of violating European competition laws.
More at Intellectual Property Watch.

9 Comments Tagged: european commission, gac, gerard de graaf, ICANN, neelie kroes, new TLDs

Facebok.com had 250 million hits a year

The typo domain name facebok.com was receiving an estimated 250 million visits per year, according to a Facebook attorney.
As I’ve previously reported, the domain was subject to controversy after Facebook won it in a UDRP adjudication and was subsequently sued by the cybersquatter.
“Obviously, it’s Facebook except lacking one O, and attracting a lot of traffic – 250 million was the estimate by our SEO team, 250 million hits a year,” Facebook’s Susan Kawaguchi said during a panel on UDRP here at the ICANN meeting in Singapore.
“Somebody was making a lot of money off of it,” she said.
Facebok.com bounced users to what Kawaguchi described as a “social survey scam” – a site that used Facebook’s look-and-feel to get users to sign up for expensive text message services.
After Facebook won the UDRP in September, a bogus Panama-based shell company sued Facebook and the registrar, EuroDNS, claiming to be the true owner of the domain.
The suit persuaded EuroDNS to put the transfer to Facebook on hold, and ICANN threatened to terminate the registrar’s accreditation as a result.
The situation has since been resolved, and Facebook owns the domain, but EuroDNS may find itself in trouble with the Luxembourg court.

6 Comments Tagged: eurodns, facebok.com, facebook, udrp

Afilias links up with Right Of The Dot

Afilias and Right Of The Dot have announced a partnership to jointly assist new top-level domain applicants.
Right Of The Dot is Monte Cahn and Mike Berkens’ latest venture, a consulting firm focused primarily on helping new registries price their “premium” second-level domains.
Afilias runs the .info registry and provides registry services for many other TLDs, including .org.
The Afilias deal is the first major partnership Right Of The Dot has announced.

3 Comments Tagged: afilias, ICANN, new TLDs, right of the dot