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ICM sees 30,000 .xxx reservations in a day

Kevin Murphy, March 19, 2011, Domain Registries

ICM Registry is rapidly approaching the 250,000 mark for “pre-reserved” .xxx domain names, after racking up an extra 30,000 expressions of interest in less than 24 hours.
The counter on the ICM web site currently shows 243,972 domains have been reserved, compared to 211,942 at this time yesterday.
The counter ticked up by 2,000 domains in the 20 minutes it took me to write this post.
(UPDATE: The number of pre-reservations just passed 250,000, 24 hours after .xxx was approved.)
ICANN approved the .xxx top-level domain shortly after noon Pacific time yesterday, generating blogosphere buzz, a ton of Twitter traffic, and dozens of media stories worldwide.
An extra 30,000 domains is the same ball park as .CO Internet received following its commercial on Super Bowl Sunday last month.
But these free .xxx reservations will not necessarily translate into paid-for registrations, of course. Many people will be scared away from the fee, which I estimate is likely to be $70 to $100 a year.
But even if just one fifth convert, we’re talking about $2.5 million annually into ICM’s pocket, and another $500,000 to fund IFFOR, its sponsoring body. ICM expects to have at least 300,000 registrations in this first year.

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How ICANN overruled governments on .xxx

Kevin Murphy, March 19, 2011, Domain Registries

In approving the .xxx top-level domain, ICANN has for the first time explicitly overruled the wishes of international governments, as represented by its Governmental Advisory Committee.
In its rationale (pdf) for the decision, ICANN explains why it chose to disregard the GAC’s views.
There are two pieces of GAC advice that have been quite important. One was delivered in Wellington in 2007, the other was delivered yesterday
The Wellington GAC Communique noted that “several members of the GAC are emphatically opposed from a public policy perspective to the introduction of a .xxx sTLD.”
That was repeated during a terse, 10-minute “bylaws consultation” on .xxx yesterday, during which the the GAC also said “there is no active support of the GAC for the introduction of a .xxx TLD”.
ICANN chose to reject (kinda) both of those pieces of advice, on the basis of a quite literal interpretation — that GAC support was unnecessary and the advice was not specific enough:

There is no contradiction with GAC advice on this item. Active support of the GAC is not a required criteria in the 2004 sTLD round. Further, this is not advice from the GAC either to delegate .XXX or to not delegate .XXX, and therefore the decision to delegate .XXX is not inconsistent with this advice.

Unfortunately, this gives pretty much no clue to how the board will treat minority GAC positions in future, such as when some governments object to new gTLDs.
But companies planning to apply for potentially controversial TLDs can take heart from other parts of the rationale.
For example, the board did not buy the notion that .xxx should be rejected because some countries are likely to block it.
Saudi Arabia has already said it intends to filter out .xxx domains.
The GAC was worried that this kind of TLD blocking would lead to a fragmented root and competing national naming systems, but ICANN wasn’t so sure. The rationale reads:

The issue of governments (or any other entity) blocking or filtering access to a specific TLD is not unique to the issue of the .XXX sTLD. Such blocking and filtering exists today. While we agree that blocking of TLDs is generally undesirable, if some blocking of the .XXX sTLD does occur there’s no evidence the result will be different from the blocking that already occurs.

It’s been noted that some Muslim countries, for example, block access to Israel’s .il domain.
One director, George Sadowsky, dissented from the majority view, as is his wont. In a lengthy statement, he named stability as one reason he voted against .xxx.
He said “the future of the unified DNS could be at stake” and “could encourage moves to break the cohesiveness and uniqueness of the DNS”.
He drew a distinction between the filtering that goes on already and filtering that would come about as a direct result of an ICANN board action.
He was, however, in the minority, which makes proposed TLDs such a .gay seem likely to get less of a rough ride in future.

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.xxx domains could arrive by June

Kevin Murphy, March 18, 2011, Domain Registries

ICANN’s board of directors today approved the .xxx top-level domain, over the objections of governments and pornographers.
The vote was 9 to 3 in favor, with three directors recusing themselves due to conflicts of interest and the CEO abstaining (pretty typical for votes on .xxx over the years, I think it’s a liability thing).
Assuming the US government, which controls the DNS, doesn’t try the nuclear option of overruling ICANN, .xxx could make it into the root about 10 days from now.
Now expect ICM Registry to ramp up the marketing quite quickly – it’s aiming to launch the first of its three sunrise periods in mid-June, just three months from now.
We’re looking at a landrush certainly before the end of the year.
While ICM, in a press release today, said .xxx domains “will only be available to the adult entertainment industry”, the industry is self-defining, and president Stuart Lawley has previously stated that flipping porn domain names counts as an industry service.
Domain investors are welcome, if not necessarily encouraged, in other words.
I hear ICM has already reached out to registrars, giving them a mid-April deadline to apply to be evaluated.
The TLD launching on schedule will of course also depend on whether any legal action is taken to stop it. Diane Duke, executive director of the Free Speech Coalition, a porn trade group, said at a press conference yesterday that the FSC is thinking about suing.
She also said that it may arrange some kind of boycott, which strikes me as a terrible idea – how many pornographers will refuse to defensively register their .xxx domains out of principle? Very few, I suspect.
The FSC said last week that it was also looking into a Reconsideration Request or an Independent Review Panel procedure, which are the only two real avenues of appeal through ICANN.
An IRP could be more expensive than a lawsuit, and if precedent is any guide even a successful Reconsideration would be moot – it would take at least a month, by which time ICM’s registry contract would be long since signed.
It seems likely that ICM’s long, strange, expensive journey into the DNS may finally be at an end.

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Porn rally underway at ICANN San Francisco

Kevin Murphy, March 17, 2011, Domain Policy

A small group of Free Speech Coalition supporters are currently holding a protest against the .xxx top-level domain, outside the ICANN meeting in San Francisco.
The rally outside the Westin St Francis hotel on Union Square has attracted about 25 people by my count, chanting slogans such as “We want porn! No triple-X!”
Noted porn producer/performer John “Buttman” Stagliano is among them, although he seems to be keeping to the sidelines.
Not to judge, but another of the protestors appears to be the same homeless guy who’s been bothering me for change and cigarettes all week.
Also attending, first amendment attorney Paul Cambria. There’s an unsubstantiated rumor he’s ready to serve ICANN and/or ICM Registry with a lawsuit if .xxx gets approved tomorrow.
He declined to comment on the rumor.
There’s an FSC press conference shortly, and Cambria tells me he’s going to be making a statement at the ICANN public comment forum later this afternoon.
I’ll update when it becomes clearer what the FSC’s game-plan is.

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OpenRegistry wins .sx contract

Kevin Murphy, March 16, 2011, Domain Registries

OpenRegistry, the recently formed registry services provider, has won its first top-level domain deal.
The Benelux-based company has been signed up to provide the back-end registry for .sx, the country-code TLD newly assigned to Sint Maarten.
The deal with Sint Maarten’s government will see the formation of a new company, SX Registry SA, a joint venture of OpenRegistry and MediaFusion, a small Canadian registrar.
MediaFusion’s president, Normand Fortier, will serve as CEO of the company.
The registry’s policies and registrar partners will be announced over the coming weeks, but OpenRegistry CEO Jean-Christophe Vignes tells me the plan is to have a completely open, global ccTLD, along similar lines to the recently relaunched .co domain.
The ClearingHouse for Intellectual Property, CHIP, has been engaged to provide trademark protection services for .sx’s sunrise period.
Sint Maarten is a new country, one of three that formed following the break-up of the Netherlands Antilles (.an) last October. It was assigned .sx in December.
As such, the ccTLD has not yet been officially delegated to anyone, and the new company is hopeful it will be able to lock it down by ICANN’s June meeting in Singapore.
OpenRegistry, while employing experienced staff, does not currently operate any TLD registries. The .sx deal may make the company more appealing to other new TLD applicants.

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ICANN names compliance chief

Kevin Murphy, March 15, 2011, Domain Policy

ICANN has found itself a new senior director of contractual compliance, nine months after the post was vacated.
Maguy Serad, most recently with Nissan North America, starts April 4 at ICANN’s headquarters in Marina Del Rey, California.
She’s apparently a Black Belt Six-Sigma (don’t worry, that’s a real thing), Liberian by birth and currently a Lebanese citizen. She speaks English, French and Arabic.
ICANN has also hired Colombian intellectual property lawyer Carlos Alvarez as a new contractual compliance manager/auditor. He has a history in initiatives fighting software piracy and child pornography.
The timing of the hires means ICANN has probably dodged a bullet.
There have been grumblings in some parts of the ICANN community about the vacant compliance posts for some months, and some stakeholders here at the San Francisco meeting planned to make their feelings known to ICANN’s senior staff and board.
ICANN’s compliance team is responsible for monitoring and enforcing ICANN’s contracts with registries and registrars, which will become a lot more important when the new top-level domains program kicks off.

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Beckstrom calls for ICANN’s independence

Kevin Murphy, March 15, 2011, Domain Policy

ICANN president Rod Beckstrom has called for the organization to be allowed to further loosen its ties to the US government.
The two-hour opening ceremony of its 40th public meeting, here in San Francisco this morning, had a heavy focus on ICANN’s relationship with governments, and looked as much to its roots in the Clinton administration as it addressed more immediate concerns internationally.
Beckstrom and others tackled the renewal of the soon-to-expire IANA contract, with which the US grants ICANN many of its powers over the domain name system, head-on.
Beckstrom said some have expressed “a belief that the US government should live up to its 1998 White Paper commitment to transfer management of the IANA functions to the private sector-led organization entrusted to manage the DNS, which is ICANN. ”
That would mean severing one of the most frequently criticized links between ICANN and the USA.
In a press conference later, he confirmed that this is in fact his belief, saying that internet governance is “evolving behind the curve” as internet usage grows internationally.
The US handing the keys to the internet over to ICANN doesn’t appear to be immediately likely, however. But there may be some ways to continue to phase out the US special relationship on a shorter term basis.
Beckstrom took the stage shortly after Lawrence Strickling, head of the National Telecommunications and Information Administration, part of the US Department of Commerce, made some frank criticisms.
While stressing the Obama administration’s commitment to what he called “multistakeholderism” in internet governance, he had a few pointed remarks to make about ICANN’s decision-making process.
He accused the ICANN board of directors of “picking winners and losers” by making decisions in situations where the community has been unable to reach a consensus policy.
He singled out two recent policies where he believes ICANN has failed to sufficiently rationalize its decisions: registry-registrar integration and economic studies into new TLDs.
The criticisms are not new, and many of them may well go away if and when ICANN implements the recommendations of its Accountability and Transparency Review Team.
My initial sense is that the fact Strickling was able to speak so frankly and so publicly about the administration’s feelings is an encouraging sign of ICANN’s maturity.
And Beckstrom’s response was equally ballsy, urging ICANN’s supporters to lobby the NTIA for a loosening of US-ICANN ties.
The NTIA’s Notice Of Inquiry regarding IANA, which floats the idea of breaking up the IANA functions and possibly assigning them to three different entities, was released a few weeks ago.
During his address this morning, former ICANN chair Vint Cerf put forth the view that this kind of government procurement contract may be an inappropriate mechanism for overseeing IANA functions:

I believe that that concept of procuring service from ICANN really ought to change to become a cooperative agreement because I believe that format expresses more correctly the relationship between ICANN and the Department of Commerce.

Beckstrom evidently agrees with Cerf. At the press conference, he pointed out that the disadvantage of a procurement contract is that it’s short term, undermining confidence in ICANN.
It also requires ICANN to run the IANA to the benefit of the American people, rather than the international community, he said. This obviously can reinforce the perception in some parts of the world that ICANN has an untenable American bias.
“A cooperative agreement seems more befitting of the relationship the NTIA and ICANN has developed,” he said, noting that this is currently the structure of NTIA’s relationship with VeriSign.
The Number Resource Organization may give a further clue to ICANN’s game plan in this email (pdf) published today, in which the NRO says:

We strongly believe that no government should have a special role in managing, regulating or supervising the IANA functions.

The NRO suggests that ICANN, through these coming negotiations, should advocate for a staged reduction of the level of DoC’s oversight to IANA. This process could possibly involve a transitionfrom a contract to a cooperation agreement, and ultimately arrival at a non-binding arrangement, such as an affirmation of commitments

Beckstrom now wants your help to make this happen. During his keynote, he urged the ICANN community to make its disparate views known to the NTIA, “openly and in writing”.
“This is the chance to add your voice to those determining the fate of the IANA function,” he said. “If your voice is to be heard, you must speak up.”
“When all voices are heard, no single voice can dominate an organization – not even governments. Not even the government that facilitated its creation,” Beckstrom said.
Details about how to respond to the NOI can be found in this PDF.

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ICANN staff grilled over new TLDs

Kevin Murphy, March 13, 2011, Domain Registries

ICANN’s San Francisco meeting kicked off this morning with staff members responsible for the new top-level domains program answering – and trying to answer – stakeholder questions.
The short version: it’s still not clear what the end result of San Francisco will be when it comes to new TLDs.
The big deal this week is ICANN’s ongoing consultation with its Governmental Advisory Committee, which remains the biggest hurdle before ICANN can approve the program.
GNSO stakeholders wanted to know the current state of play with this consultation, and how close ICANN is to wrapping up policy development and launching the new TLD program.
A key question is whether the two days of talks the board has scheduled for this week count as the final GAC consultation called for in ICANN’s bylaws.
If they are, the board and the GAC could wrap up their negotiations before the board meets on Friday, and the program is one step closer to approval. ICANN wants this.
If they’re not, we could be looking at further GAC talks stretching on into the weeks or months between now and the Singapore meeting in June. The GAC seems to want this.
ICANN senior vice president Kurt Pritz said that the board and GAC met for one hour yesterday, but that they still have not agreed on the “bylaws” designation.
He said that the board “has a sense of urgency” about approving the program as soon as possible, and that the GAC is newly “energized”.
Staff were asked, by VeriSign’s Chuck Gomes and Minds + Machines’ Antony Van Couvering, whether such a consultation is needed at all.
After all, as has been discussed in articles on CircleID and .nxt recently, there’s no mention in the ICANN bylaws of a “consultation” per se.
Deputy general counsel Dan Halloran said that this is an area still open for discussion, but indicated that reaching common ground on the substantive issues is currently the priority.
There seems to be a feeling that the current talks represent not only a necessary step in approving new TLDs, but also a landmark piece of cooperation in the sphere of internet governance.
On the substantive issues, ICANN has currently marked each of the 80 points the GAC has made with the designation 1a, 1b or 2, depending on whether agreement has been reached, only reached in principle, or has not been reached at all.
The focus this week is going to be on the 23 “2s”. These are the issues, Pritz said, where ICANN has determined that to agree with the GAC would run contrary to the GNSO’s consensus positions.
Philip Corwin of the Internet Commerce Association, which represents domain investors, wanted to know whether “1a” topics are currently locked – the ICA is unhappy with a 1a concession ICANN has made regarding the Uniform Rapid Suspension policy.
The answer from staff was basically yes — a 1a is where ICANN’s board and staff think “we’re done”, Pritz said.
The plan for the rest of the week is to hold open discussions on the new TLD process on Monday and Wednesday, with corresponding bilateral GAC-board sessions on Tuesday and Thursday.
Stakeholder groups have been invited to make statements before and to inform these sessions.

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Slim pickings in the ICANN 40 schwag bag

Kevin Murphy, March 13, 2011, Gossip

Perhaps I checked in too early, before all the sponsors have showed up, but the schwag bag for the ICANN San Francisco meeting seems to offer surprisingly slim pickings.
Here’s what you can expect to clutter up your luggage if you’re in attendance at ICANN 40.

  • Baseball-style executive stress squeezy toy (VeriSign, .net)
  • Black polo shirt (IronDNS)
  • M&Ms-style candy (NameMedia)
  • Coffee mug (RegistryPro, .pro)
  • Badge/button (.green)
  • Mini beer-flagon-style shot glass thing (United Domains, newdomains.org)
  • Pack of tissues (.SO Registry, .so)
  • Post-it notes (VeriSign, .net)

Given the high sponsorship fees and the anticipated turn-out of 1,600 to 2,000 delegates, I was expecting much more. Perhaps some gold-plated breath mints or Armani cufflinks.
Never mind.
Still, nice to see .SO Registry pushing the boat out there. Tissues are always useful, but I was expecting at least a branded eye-patch.
I shall re-register under a fake name in a day or two to see if the quality of the schwag improves.

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dotMusic and ICANN execs form TLD consultancy

Kevin Murphy, March 11, 2011, Domain Services

Just what the world needs, another top-level domain consultancy.
Constantine Roussos, best known his campaign for .music, has teamed up with ICANN veteran Tina Dam to launch MyTLD.com, promising to help applicants with their TLD bids.
Dam was senior director of internationalized domain names at ICANN, spearheading the IDN ccTLD Fast Track program, until she quit last December.
Those are good credentials, especially for supporting IDN TLD applicants.
Dam is currently critical of how ICANN’s Applicant Guidebook treats IDN TLDs, saying that the process is too expensive and does not effectively handle transliterations and translations.
Roussos is an entrepreneur, owner of music.us/.biz/.co, who has been pushing his own self-financed .music bid for the last couple of years.
A running joke at the recent .nxt conference was that he was once an “outsider” but has since been firmly institutionalized by the ICANN environment. He’s also critical of aspects of the Guidebook.
MyTLD.com is the latest of a series of companies to form over the last few months to provide consulting to potential TLD applicants.
Recently, domain investors Mike Berkens and Monte Cahn founded Right Of The Dot, which specializes in marketing and premium domain strategy.
And Alexa Raad, former CEO of the .org registry PIR, is currently plugging her new consulting play, Architelos.

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