Domain Registry of America still slamming, still scamming

Domain name slamming is alive and well in the ICANN-accredited registrar community.
I’ve just received a letter in the mail offering me the chance to transfer and renew domainincite.com for the knock-down price of £25 ($38) a year.
It’s Domain Registry of America again, still slamming almost a decade after it was first sued for the completely unethical practice of conning people into transferring their domain names.
The letter looks like a renewal notice. Besides ostensibly coming from “Domain Renewal Group”, it also contains the prominent text “Domain Name Renewal Service”.
Domain Renewal Group and Domain Registry of America are one and the same – fronts for the ICANN-accredited registrar Brandon Gray Internet Services Inc, dba NameJuice.com.
The letter, as you can see from the scan, is a little less bogus than the ones DROA started sending out back in 2001. The text states now much more clearly that “this is not a bill”.
But domain slamming has always relied upon people not reading the letter properly and/or not understanding the intricacies of domain transfers, and this is no different.
DROA’s business depends upon its letters finding their way into the hands of gullible individual registrants or accounting departments that will blindly pay official-looking notices.
At the prices the company charges – pretty much the most expensive in the industry – very few people will have transferred their domains because they thought they were getting a good deal.
There have been numerous complaints and lawsuits against DROA over the last decade.
In November 2009, the UK Advertising Standards Agency found DROA in breach of truthfulness and honesty guidelines for a substantially similar mailshot and ruled:

The mailing must not appear again in its current form.

And last year, the .ca registry CIRA terminated Domain Registry of Canada, another Brandon Gray front, for slamming .ca registrants using the same methods.
So isn’t it about time ICANN shut these muppets down too?
Unfortunately, ICANN can only use contracts to enforce compliance, and I’m not sure there are any sticks in the 2001 Registrar Accreditation Agreement that it can use to beat them.
DROA has plainly breached Go Daddy’s Whois access policy by slamming me (the letter was sent to my Whois billing address, not my actual residence), but I don’t think there’s much Go Daddy can do about that short of suing.
As far as I can tell, Brandon Gray, which has about 130,000 domains under management, got its ICANN accreditation in about 2003. It was previously an eNom reseller.
So its accreditation is probably going to be up for renewal within the next couple of years.
Fortunately, ICANN has just this week introduced stricter new accreditation application rules that are specifically designed to weed out the scumbags.
Any company or individual with a track record of dishonesty is no longer welcome at ICANN.
So if there’s nothing that can be done before then, at the very least when Brandon Gray’s accreditation expires ICANN should not renew it.
What’s more, other registrars should lean on ICANN to make sure Brandon Gray is shown the door. It’s been bringing their industry into disrepute for the best part of a decade and it’s time for it to stop.

19 Comments Tagged: brandon gray internet services, domain registry of america, domain registry of canada, domain renewals group, go daddy, ICANN, slamming

ICANN to hire conflict of interest experts

ICANN is to bring in ethics experts to advise it on its conflicts of interest policy, addressing the ongoing controversy over its former chairman’s move to the domain industry.
The organization plans to “engage an external firm with expertise in advising on ethical issues”, according to the minutes of a September 15 meeting of its Board Governance Committee.
The consultants will be tasked with helping to “develop an ICANN Ethics Regime or set of Guidelines for the Board, the staff and the community.”
ICANN has been faced recently with calls to impose post-employment restrictions on board members and staff, in order to prevent a “revolving door” between it and the industry it essentially regulates.
This follows former chairman Peter Dengate Thrush’s move to new gTLD applicant Minds + Machines just a few weeks after voting to approve the new gTLD program.
Senator Ron Wyden and the Association of National Advertisers are among those making the call, and the US Department of Commerce, which oversees ICANN, appears to have heard it.
But as I reported earlier in the week, it may actually be illegal for ICANN, as a California corporation, to contractually ban employees from joining domain name companies after they quit.
However, the BGC has other ideas about how to strengthen ethics without imposing these potentially problematic employment restrictions.
It’s now talking about a ethics policy with “disclosure and abstention requirements” for directors “surrounding future interests or potential future interests”.
While the policy has yet to be written, one can imagine a scenario in which an ICANN director would be prevented from voting on a policy that would be likely to enrich them in a future job.
Cherine Chalaby, Bill Graham and Ray Plzak are the BGC members who will be leading the board discussions, which are expected to continue in Dakar later this month.
The ethics issue was first raised publicly by ICANN president Rod Beckstrom during his opening address at the Singapore meeting in June — before the new gTLD vote and before Dengate Thrush’s departure.

1 Comment Tagged: ana, conflict of interest, dakar, ethics, ICANN, m+m, Minds + Machines

Two new TLDs to be approved next week

ICANN is set to approve two new country-code top-level domains next week – .cw and .sx – for the year-old nations of Curacao and Sint Maarten.
The two countries were created when the Netherlands Antilles split last October.
The ICANN board of directors plans to rubber-stamp the delegations of both ccTLDs next Tuesday, according to the consent agenda for its meeting.
It also plans to vote on the “transition” arrangements for the Netherlands Antilles’ .an, which is now a ccTLD without a country.
The .an space won’t be the first TLD to be deprecated. Yugoslavia’s .yu disappeared in March last year, for example, a few years after Serbia and Montenegro acquired their own ccTLDs.
The recipient of .sx is expected to be SX Registry, a joint venture of Luxembourg registry startup OpenRegistry and Canadian registrar MediaFusion.
OpenRegistry CEO Jean-Christophe Vignes said that if ICANN votes for the delegation the company will start talks with potential registrar partners at the ICANN Dakar meeting later this month.
MediaFusion and Vignes’ alma mater EuroDNS have already been approved to act as .sx registrars.
The company plans to use CHIP, the ClearingHouse for Intellectual Property, for its sunrise period.
Anyone with a .an registration predating December 2010 will be able to request the equivalent .sx name under a grandfathering program the company plans to launch.
It will be the first TLD that OpenRegistry has provided the back-end infrastructure for.

5 Comments Tagged: .an, .cw, .sx, cctlds, chip, iana, ICANN, mediafusion, openregistry, sx registry

BITS may apply for six financial gTLDs

BITS, the technology policy wing of the Financial Services Roundtable, may apply to ICANN for as many as six financially-focused new top-level domains.
The organization is pondering bids for .bank, .banking, .insure, .insurance, .invest and .investment, according to Craig Schwartz, who’s heading the project as general manager for registry programs.
(UPDATE: To clarify, these are the six strings BITS is considering. It does not expect to apply for all six. Three is a more likely number.)
Schwartz, until recently ICANN’s chief gTLD registry liaison, told DI that the application(s) will be filed by a yet-to-be-formed LLC, which will have the FSR and the American Bankers Association as its founding members.
It will be a community-designated bid, which means the company may be able to avoid an ICANN auction in the event that its chosen gTLD strings are contested by other applicants.
“We’ve looked at the scoring, and while it may not come into play at all we do believe we can meet the requisite score [for a successful Community Priority Evaluation],” Schwartz said. “But we’re certainly mindful of what’s happening in the space, there’s always the possibility of contention.”
There’s no relationship between BITS and CORE, the Council of European Registrars, which is apparently looking into applying for its own set of financially-oriented gTLDs, Schwartz said.
It’s not a big-money commercial play, but the new venture would be structured as a for-profit entity, he said.
“It’s relatively analogous to what’s happened in the .coop space, where after 10 years they have only about 7,000 registrations,” Schwartz said.
It sounds like pricing might be in the $100+ range. Smaller financial institutions lacking the resources to apply for their own .brand gTLDs would be a likely target customer base.
Interestingly, .bank may begin life as a business-to-business play, used primarily for secure inter-bank transactions, before it becomes a consumer-facing proposition, Schwartz said.
He added that it would likely partner with a small number of ICANN-accredited registrars – those that are able to meet its security requirements – to get the domains into the hands of banks.
VeriSign has already signed up to provide the secure back-end registry services for the bid.

3 Comments Tagged: .bank, .insure, .invest, aba, american bankers association, bits, financial services roundtable, fsr, ICANN, new gTLDs, new TLDs, phishing

AusRegistry drops the “Aus”, sets up in US

AusRegistry International has rebranded itself as ARI Registry Services and will now offer new gTLD clients the option to host their domains in either Australia or the US.
The company has built itself a registry back-end in an undisclosed location on US soil to support the move.
Dropping the “Aus” appears to be specifically designed to address the perception that locating a gTLD in Australia is somehow technologically or politically risky, which ARI says isn’t the case.
ARI CEO Adrian Kinderis explained the decision in a press release:

We are the first to admit that the ‘Aus’ reference in our previous name incorrectly positioned us as a smaller, geographically focused organisation, which did create some issues with our plans for global expansion. Despite the fact we have an office and staff in the United States and clients situated in four of the seven continents around the world, there remained some belief that our services were somewhat isolated in Australia.

Potential gTLD applicants are concerned about issues such as “overzealous governments, privacy and ownership laws, political environments and financial benefits including currency fluctuations” that can vary according to the jurisdiction a registry is hosted in, ARI said.
A choice between the US and Australia may seem like a choice between one “overzealous government” and another, but it may at least put some insular American companies’ minds at rest.
While the move makes perfect business sense for ARI, I can’t help but feel that ICANN’s goal of increasing geographic diversity in the registry industry seems a little diminished this morning.
The rebranding does not affect the company’s parent, AusRegistry Group, which provides the back-end for Australia’s .au ccTLD.
ARI’s new domain is ariservices.com.

1 Comment Tagged: ari registry services, ausregistry, ausregistry international, ICANN, new gltds, new TLDs

Full UDRP reform unlikely until 2017

The often-criticized Uniform Dispute Resolution Policy is unlikely to see fundamental changes for at least five years, following an ICANN review published yesterday.
ICANN has recommended, after talking to the community, that full UDRP reform should be put on the back-burner until at least a year and a half after the first new gTLDs go live.
Since that isn’t likely to happen until early 2013, ICANN is unlikely to address the subject until mid-2014. The chances of a revamped UDRP going live before 2017 are therefore slim.
The new Final Issue Report (pdf), prepared by ICANN staff and sent to the GNSO Council yesterday, says:

Staff recommends that a [Policy Development Process] on the UDRP not be initiated at this time. Staff recommends that a PDP be delayed until after the New gTLD Uniform Rapid Suspension System (URS) has been in operation for at least eighteen months. Doing so would allow the policy process to be informed by data regarding the effectiveness of the URS, which was modelled on the UDRP, to address the problem of cybersquatting.

The report was informed by a number of stakeholder webinars and questionnaires sent to UDRP providers earlier this year, as well as a round of public comments.
It notes that UDRP has remained the same since October 1999, but that it still has proved flexible enough to react to changes in the domain industry and cybersquatting tactics.
The report states:

After carefully evaluating the issues and concerns expressed by the ICANN community regarding the UDRP, Staff has concluded that many relate to process issues associated with the implementation of the UDRP, rather than the language of the policy itself.

In the absence of root-and-branch reform, ICANN has suggested the formation of an “expert panel” to investigate whether smaller changes could be made to the periphery of the UDRP.
It could, for example, look at amendments to the Supplemental Rules that UDRP providers use to handle complaints and responses. ICANN wrote:

To the extent that these expert recommendations result in modifications to certain of the UDRP Rules or suggested changes for provider Supplemental Rules to align with the UDRP Rules, these may be adopted by the ICANN Board without the necessity of undertaking a complete PDP.

Consultations have shown that there’s little appetite for massive reform from either side of the debate; it’s probably not too cynical to say that the status quo will be maintained largely by paranoia.
Trademark holders would ideally prefer a cheaper, faster system that is more accommodating to their own interests, whereas domain investors would like to see an end to forum-shopping and panelists who give too much deference to big business.
But both sides are terrified that the actual process of reforming UDRP would be captured by their opponents, ultimately tilting the balance of power against their own interests.
The trademark lobby is convinced that ICANN policy-development is the plaything of the domain name industry, and vice versa.
What we’re left with is a system where cybersquatting still pays and in which reverse domain hijacking can sometimes be a cheap way to get your hands on a domain you want.
And it looks like it could stay that way for some time to come.
The Final Issue Report now needs to be considered by the GNSO Council, presumably at its public meeting in Dakar, Senegal later this month.
I think the Council will almost certainly accept the report’s recommendations against a PDP with little argument – everybody has far too much other stuff to be worrying about at the moment.
It’s less clear to me whether the idea of an “expert panel” will find favor, however. That may be one of Dakar’s more interesting open questions.

3 Comments Tagged: cybersquatting, gnso, ICANN, udrp

Open .co landrush re-auctions — the full list

.CO Internet is putting 100 .co domain names that failed to auction during its landrush last year up for “re-auction”, and it looks like there are a few possible gems on the list.
The company said last week that the 100 names are the last of the domains that went to auction but failed to change hands due to a lack of bidders or non-payment by the winner.
While the first auctions were restricted to only those who had paid the landrush fee, this time around anybody can participate. Pool.com will again handle the auction.
There are some potentially nice names, such as accidentlawyers.co, injurylawyers.co, seoul.co, comicbooks.co and businessintelligence.co.
Click here for the full list of names.

10 Comments Tagged: .co, .co internet, auction, landrush, pool.com

Win $5,000 for your new gTLD idea

Afilias is offering $5,000 for the best idea about what to do with a new generic top-level domain.
The company has kicked off a competition today designed to stimulate interest in ICANN’s new gTLD program.
It said in a press release this evening:

With this contest, Afilias is looking for unique new TLD ideas, whether that domain is a “dot Brand” (for a company) or a “dot Niche” (for a concept or community) or a “dot City” domain. The goal is to discover ideas for “right of the dot” domains that cannot be done today with any of the existing domains, like .com or .net.

Basically, you send in your best new gTLD idea – not just a string, but an innovative way to use it – and you stand a chance of winning prizes of $5,000, $3,000 or $1,500.
The contest web page can be found here. The rules are here.
According to the press release, I’ve agreed to be on the judging panel, apparently as the latest stage of my ongoing campaign of utterly shameless self-promotion.
The other judges are former ICANN president Paul Twomey, Matthew Quint of the Center on Global Brand Leadership and David Rogers of BRITE, both at Columbia Business School, as well as Afilias’ CTO and CMO, Ram Mohan and Roland LaPlante.
I’m not sure what to expect, but it strikes me that if you have a halfway decent idea for a new gTLD – and you don’t actually plan to apply for it – you may not have much to lose by entering.
Afilias is accepting submissions until October 17, just two weeks from now, and the winners will be announced October 24.

14 Comments Tagged: afilias, competition, ICANN, new gTLDs, new TLDs

Would an ICANN ethics policy break the law?

Calls for a new ethics policy to prevent a “revolving door” between ICANN and the domain name industry stepped up today, with the Association of National Advertisers entering the debate.
But would such a policy be illegal in ICANN’s home state of California?
The ANA and others wrote to ICANN today, in response to a public comment period on the question of whether ICANN should revise its conflicts of interest policy.
ICANN had asked whether the policy should be changed in order to let its board of directors vote to give themselves a salary. They’re currently all unpaid except the chair.
But the responses so far have instead largely focused on the perceived need to stop directors (and to a lesser extent staff) from taking lucrative industry jobs after they quit.
That was perhaps inevitable given the recent mainstream media coverage of former ICANN chair Peter Dengate Thrush, who took a high-paying job with new gTLD applicant Minds + Machines just a few weeks after helping to push through approval of the gTLD program.
The ANA’s president, Bob Liodice, wrote:

There is, at a minimum, legitimate reason for concern that the lack of adequate conflict of interest policies have led to the development of a growing perception that Mr. Thrush (and perhaps other senior staff who recently have left ICANN) may have let future career prospects influence their official duties.

(The other senior staffer he refers to could only be Craig Schwartz, the former chief gTLD registry liaison, who quit ICANN to join a likely .bank applicant in June.
While there are good reasons that Dengate Thrush’s move looks extremely fishy to outsiders, I’ve yet to hear any compelling arguments that Schwartz, who I don’t think had any high-level policy-making power anyway, did anything wrong.)
The ANA is of course the ring-leader of the ongoing campaign to get ICANN to rethink the new gTLD program in its entirety.
Liodice’s letter goes on to outline a number of suggestions, posed as questions, as to how ICANN could improve its conflict of interest policy, such as:

should ICANN consider reasonable restrictions or a moratorium on post‐service employment of ICANN staff by, or the contracting of such staff members with, parties under contract to ICANN, or whose businesses are materially affected by any decision made by the Board during the staff member’s tenure?

In other words: should ICANN staff be banned from joining registrars and registries after they leave?
In two other letters to ICANN today, Coalition for Online Accountability, International Trademark Association and American IP Law Association (collectively) and the French government make similar calls for future employment restrictions, albeit only for ICANN directors rather than staff.
But here’s another question: if the community asked ICANN to institute a revolving-door prevention policy, could it legally do so? A bit of digging suggests it might be tough.
According to the minutes of an August 15 meeting of ICANN’s Board Governance Committee:

The BGC discussed that as a private sector organization, ICANN is limited in its ability to place restrictions on future employment, though there are many things that ICANN can do to address these concerns, such as continued strict adherence and enforcement of confidentiality provisions.

The matter was also discussed by the full board at its retreat last month, and is on the agenda for the public meeting in Dakar, Senegal, at the end of October.
While ICANN does have pseudo-regulatory power (all enforced through contract) it is at the end of the day a California corporation, which is bound by California law.
And in California, it may not be legal to unreasonably restrict employees’ future job opportunities.
I’m not a lawyer, and this may not be applicable to ICANN for any number of reasons, but consider how California law deals with so-called “non-compete clauses” in employment contracts.
The text “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void” is on the California statute books.
And in 2008, the California Supreme Court interpreted this rather strictly, ruling that “non-competition agreements are invalid under section 16600 in California even if narrowly drawn”.
So could ICANN legally prevent staff or directors from jumping into the for-profit sector when they please? Is there any point in the community even debating the subject?
At this point, any members of the California Bar reading this are welcome to throw their $0.02 into the comments section below.

2 Comments Tagged: ana, association of national advertisers, coalition for online accountability, conflict of interest, france, ICANN, Minds + Machines, revolving door

US and EU could see power diluted in ICANN

A proposed shakeup of how ICANN divides the world into geographic regions could shift power away from US and European Union citizens.
Working group recommendations just finalized after over two years of discussion would see dozens of countries join the European and North American regions.
If adopted by ICANN, the proposals could potentially reduce the number of Western European and American faces on the ICANN board of directors.
ICANN currently recognizes five regions: North America, Latin America/Caribbean, Europe, Africa and Asia/Pacific. Under its bylaws, each region needs to have at least one seat on the board, and no region may have more than five.
After two years of deliberations, the volunteer Geographic Regions Review Working Group has now recommended that the five regions stay, but that many countries should be shuffled between regions to more accurately describe their location.
The North America group currently comprises just the US and Canada, along with a small number of US overseas territories. Mexico inexplicably counts as Latin America.
If the working group’s proposals are adopted, North America would lose territories such as Guam and American Samoa and gain more than 20 Caribbean and North Atlantic island nations, such as Jamaica, Barbados and the Cayman Islands.
The net result of this would be that when new ICANN directors are selected, the North American pool of candidates could be much more geographically and culturally diverse.
Europe’s boundaries would also be redrawn to encompass nations in the Middle East, which are currently assigned to the Asia/Pacific group.
Nations such as Iran, Saudi Arabia and Israel would join Europe, as would former Soviet states such as Georgia, Tajikistan and Armenia. In total, Europe would get 24 new countries.
Some former colonial territories currently assigned to Europe due to their political heritage rather than their actual location would be shuffled into a more geographically appropriate region.
The British-owned Falklands would move to Latin America, for example, while French Polynesia and the British Indian Ocean Territory would join the Asia/Pacific region.
Again, a result of this reshuffle is that a region currently dominated by EU and other Western European states would have to be shared by a more diverse group of stakeholders.
Many of the moves make a lot of sense. In the current set-up, for example, the largely Greek-speaking EU nation Cyprus is in the same “geographic region” as Australia, some 9,000 miles away.
The new borders have been recommended to match the way the regions are currently handled by the five Regional Internet Registries, which allocate IP addresses to network operators.
The working group, in deciding to use the RIRs’ jurisdiction as a baseline, wrote in its report (pdf):

Fundamentally, ICANN is a technical organization and so aligning regions with the technical “infrastructure” of the numbering resource allocation system seems logical and defensible.
If adopted without modification, a total of 62 countries and territories would move to new regions, but many of these are the result of assigning territories to their geographic region rather than to the region of their mother country

The decision to stick at five regions will come as a blow to Arab states and some island nations, which had lobbied for new regions to be created to reflect their interests.
The working group has also recommended that any country or territory that wants to stick with its existing region is entitled to do so, but that once they do they’re locked into that decision for 10 years.
ICANN has opened the proposals to a longer-than-usual period of public comment, starting today and ending December 19, presumably in order to give the Governmental Advisory Committee and its members plenty of time to prepare reactions.
It seems unlikely we’ll see any formal adoption of the recommendations before the Costa Rica ICANN meeting in March 2012 at the earliest.

Comment Tagged: geographic regions, ICANN, regional internet registries, rirs