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ICANN sets date for GAC showdown

Kevin Murphy, December 23, 2010, Domain Registries

ICANN and its Governmental Advisory Committee will meet for two days of talks on the new top-level domains program in Geneva from February 28, according to GNSO chair Stephane Van Gelder.
As well as the Applicant Guidebook (AGB) for new TLDs, the meeting is also expected to address the GAC’s outstanding concerns with the .xxx TLD application.
While I’d heard Geneva touted as a possible location, this is the first time I’ve heard a firm date put to it. As well as Van Gelder, other sources have heard the same date.
Talks ending March 1 would give ICANN less than two weeks before its public meeting in San Francisco kicks off to get the AGB into GAC-compatible shape before the board votes to approve it.
Is that a realistic timeframe? I guess that will depend on how the GAC meeting goes, the depths of the concessions ICANN decides to make, how receptive the GAC is to compromise, and whether it is felt that more public comment is needed.
Also, as I speculated last week, ICANN may have to officially invoke the part of its bylaws that deals with GAC conflicts, which it does not yet appear to have done, if it wants to approve the Guidebook at the end of the San Francisco meeting in March.
If the program is approved in March, that would likely lead to applications opening in August.
There’s likely to be one ICANN board meeting between now and Geneva – its first meeting of the year is usually held in late January or early February – so there’s still time for ICANN to make changes to AGB based on public comment, and to get its process ducks in a row.
There’s also plenty of time for the GAC to provide its official wish-list or “scorecard” of AGB concerns, which I believe it has not yet done.
Van Gelder also wonders on his blog whether the Geneva meeting will take place in the open or behind closed doors.
ICANN’s director of media affairs, Brad White, put this question to ICANN chair Peter Dengate Thrush during a post-Cartagena interview. This was his answer:

We haven’t actually resolved the rules of engagement with the GAC on this particular meeting but the standard position for all organizations within ICANN is that they are open… On the other hand if at any point think we the negotiation could be assisted by a period of discussing things in private I guess we could consider that.

That looks like a “maybe” to me.

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VeriSign takes over .gov

Kevin Murphy, December 22, 2010, Domain Tech

VeriSign has taken over registry functions at .gov, the top-level domain for the US government.
IANA records show that VeriSign Global Registry Services was named technical contact for .gov possibly as recently as this Monday.
The TLD is still administratively delegated to the US General Services Administration. Google’s cache of the IANA site shows the GSA was the technical contact for .gov as recently as October 29.
VeriSign certainly kept this contract win quiet.
At least, the first I heard about it was tonight, in an email VeriSign sent to the dns-ops mailing list, asking DNS administrators to reconfigure their DNSSEC set-up to reflect the change.

A KSK [Key Signing Key] roll for the .gov zone will occur at the end of January, 2011. This key change is necessitated by a registry operator transition: VeriSign has been selected by the U.S. General Services Administration (GSA) to operate the domain name registry for .gov.

The email expresses the urgency of making the changes, which are apparently needed in part because .gov was signed with DNSSEC before the root zone was signed, and some resolvers may be configured to use .gov as a “trust anchor” instead of the root.
The .gov TLD is reserved for the exclusive use of US federal and state government departments and agencies.
It’s certainly a prestige contract for VeriSign.
This appears to be the GSA page awarding the contract to VeriSign, in September, following an RFP. It’s valued at $3,325,000.

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Go Daddy offers Whois privacy for .co domains

Kevin Murphy, December 22, 2010, Domain Registrars

.CO Internet has started allowing registrars to offer Whois privacy services for .co domains, according to Go Daddy.
In a blog post, Go Daddy’s “RachelH”, wrote:

When the Internet Corporation for Assigned Names and Numbers (ICANN) and .CO Internet S.A.S. drafted the .co policy earlier this year, they decided to hold off on private registration to prevent wrongful use of the new ccTLD — especially during the landrush. Now that .co has carved its place among popular TLDs, you can add private registration to your .co domain names.

Unless I’m mistaken, ICANN had no involvement in the creation of .co’s policies, but I don’t think that’s relevant to the news that .co domains can now be made private.
During its first several months, .CO Internet has been quite careful about appearing respectable, which is why its domains are relatively expensive, why its trademark protections were fairly stringent at launch, and why it has created new domain takedown policies.
It may be a sign that the company feels confident that its brand is fairly well-established now that it has decided to allow Whois privacy, which is quite often associated with cybersquatting (at least in some parts of the domain name community).
It could of course also be a sign that it wants to give its registrars some love – by my estimates a private registration would likely double their gross margin on a .co registration.

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ICANN to tackle Trojan TLDs

Kevin Murphy, December 22, 2010, Domain Registries

When failing community-based top-level domain registries attempt to change their business models, ICANN may in future have a new way of dealing with them.
That seems to be a possible result of Employ Media’s controversial .jobs liberalization plans and the subsequent Reconsideration Request, which I blogged about last week.
The .jobs reconsideration revealed that not only are Reconsideration Requests a rubbish way to appeal ICANN’s decisions, but also that the Registry Services Evaluation Process is often a rubbish way to handle major contract changes.
The RSEP was introduced back in 2005 in belated response to a couple of controversial “services” that VeriSign, testing boundaries, had planned to unilaterally introduce in the .com registry, notably Site Finder and the Waiting List Service.
But since then the process has been used as a general-purpose tool for requesting changes to registry contracts, even when it’s debatable whether the changes fit the definition of “registry services”.
For example, when .jobs launched five years ago, it was put into Employ Media’s contract that the TLD was designed for companies to register their brands and list their jobs, and that’s all.
But that model didn’t work. It’s one of the least successful TLDs out there.
So the registry decided it could make more money with general purpose jobs boards, using generic .jobs domains. But it did not necessarily want to let existing independent jobs sites take part.
For want of a better term, I’ll call this an example of a “Trojan” TLD – a registry that gets its attractive TLD string approved by ICANN after making a certain set of promises, then later decides to move the goal posts to broaden its market, potentially disenfranchising others.
I’ve no reason to believe it was a premeditated strategy in Employ Media’s case, but precedent has now been set for future TLD applicants to use “community” as a foot in the door for broader aspirations.
To take a stupid, extreme, unrealistic example, imagine that ICM Registry’s .xxx flops badly. Should the company be allowed to start selling all the good .xxx domains to churches and other anti-porn campaigners? That would be a pretty big departure from its promises.
There were similar concerns, although not nearly as loudly expressed, with regards to Telnic’s recent contract changes, which will allow it to start registering phone number domain names in .tel, despite years of promises that it would not.
Go Daddy’s policy chief Tim Ruiz objected to the proposal on the grounds that it would be “unfair to other [.tel] applicants and potential applicants to allow an sTLD to change its purpose after the fact.”
The ICANN Board Governance Committee, which handles Reconsideration Requests, acknowledged these problems in its decision on .jobs in Cartagena (pdf), concluding that it:

thinks that the Board should address the need for a process to evaluate amendments that may have the effect of changing, or seeking to change, an sTLD Charter or Stated Purpose of a sponsored, restricted or community-based TLD.

The BGC seems to be saying that the RSEP is not up to the task of dealing with community-based TLDs that later decide their business plans are not the money-spinners they had hoped and want to loosen up their agreed community restrictions.
The committee went on to say that:

Because such a process may impact gTLDs greatly and is a policy issue, the GNSO is the natural starting point for evaluating such a process. We therefore further recommend that the Board direct the CEO to create a briefing paper for the GNSO to consider on this matter, and for the GNSO to determine whether a policy development process should be commenced.

So the GNSO will soon have to decide whether new policies are needed to deal with broad contract changes at failing community TLDs.
Any new policies would, I believe, be binding on community TLDs approved under the new gTLD program as well as older sTLDs, so it will be an interesting policy track to follow.

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OpenRegistry latest player in new TLD market

Kevin Murphy, December 21, 2010, Domain Registries

OpenRegistry has become the domain name industry’s newest top-level domain registry operator.
The new company, which went by the name Sensirius while in stealth mode, announced itself officially at the ICANN meeting in Cartagena two weeks ago.
Jean-Christophe Vignes is giving up his operational role at EuroDNS to be CEO of the new company, which hopes to bring more modular, custom-tailored options to organizations that want to launch new TLDs.
For “open”, read “flexible” – OpenRegistry plans to differentiate itself by offering clients “a la carte” options, rather than the one-size-fits-all services it believes some competitors offer.
“We’ve noticed that no two clients are the same,” Vignes said. “Some of them are already pretty well taken care of when it comes to drafting applications and so on, and just need the registry solution, but others are happy to have the full suite of our services.”
The idea is that a city TLD or niche community TLD will not necessarily have the same needs as a full-blown mass-market gTLD, Vignes said.
OpenRegistry plans to make three packages available at first, according to its web site – all-inclusive, managed registry, and software-only. Prices appear to start at around 100,000 euros.
The software itself is based on the registry expertise used in the design of Belgium’s .be and EurID’s .eu, although it appears to be a fresh creation.
Vignes said that it will be able to natively handle start-up functions such as premium domain auctions and interfacing with the IP Clearinghouse.
The company does not intend to apply for its own TLDs, Vignes said, allowing it to focus on its clients.
But it does plan on being somewhat selective on which TLDs with which it works, with “feasibility studies” one of the services on offer.
Like the incumbent registry triumvirate of VeriSign, Afilias and Neustar, OpenRegistry hopes that the ICANN-accredited registrar community will be a good source of clients.
ICANN recently said it plans to lift restrictions on registrars applying for and running registries.

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Whistleblower alleged shenanigans at DirectNIC

Kevin Murphy, December 18, 2010, Domain Registrars

A former employee of a company allegedly affiliated with domain name registrar DirectNIC claimed the company operated a fraudulent domain arbitrage scheme using Yahoo ads and Parked.com.
Mark Deshong filed a whistleblower lawsuit in August. It was settled in October, but its claims are quite interesting, and don’t appear to have been reported on elsewhere.
Until April this year, Deshong worked for a company called Keypath LLC, a domain registration and monetization company based in Tampa, Florida.
According to his lawsuit (pdf), Keypath is owned by the same bunch of people (notably Sigmund Solares and Michael Gardner) who run DirectNIC and Parked.com, as well as entities including Intercosmos Media Group and The Producers Inc.
Deshong said he was fired after blowing the whistle on a “fraudulent” scheme to bilk money out of Yahoo Search Marketing using the old practice of domain arbitrage.
The suit claimed Keypath bought ads on YSM to bring traffic to sites such as cameras.com that, in turn, displayed nothing but contextual ads generated automatically by YSM.
The company would pay Yahoo small amounts for the traffic it received, but would be paid larger amounts for the traffic it sent elsewhere.
That’s domain arbitrage in a nutshell. It was commonplace among domainers back in 2007 and earlier, and Keypath was far from the only company engaged in the practice.
Yahoo tried to put a stop to arbitrage on its ad network in February 2008, as Domain Name Wire reported at the time, but the lawsuit alleged that Keypath carried on regardless, using bogus identities.
This is when the “fraudulent” behavior is alleged to have commenced.
The suit claimed Keypath “created fictitious, unregistered DBA [Doing Business As] company names” in order to obtain up to 1,000 credit cards from Regions Bank.
The complaint, in an eyebrow-raising paragraph, goes on to list almost 100 of these alleged DBA companies’ names.
Each one of these companies would get a Gmail or Hotmail email address and a Skype phone number for the city where the “fictitious” company was supposedly based, the complaint alleged.
A proxy server would be obtained in each of these cities, which Keypath would use to access YSM and order ads pointing to parked pages, under the guise of one of the DBAs, the suit alleged.
The scheme covered about 50,000 domains and made about $375,000 during January 2010, according to the complaint.
The lawsuit was filed under Florida’s whistleblower act, so while it alleged multiple illegal acts (such as bank fraud and wire fraud) on Keypath’s part, it only attempted to prove wrongful termination.
Deshong basically claimed that he was canned after telling his superiors he could no longer carry out duties he believed to be illegal – he didn’t want to go to jail.
In its response (pdf) to the complaint, Keypath denied essentially all of Deshong’s claims.
It also denied that the company has ties to DirectNIC, Michael Gardner, Sigmund Solares, Intercosmos, Parked.com or The Producers.
(Probably a disingenuous claim. Florida company records show they’re all currently or recently linked to businesses located at 5505 West Gray Street in Tampa, Parked.com’s main US office. Keypath’s web site shows the same address).
5505 West Gray Street
Keypath also accused Deshong of a shakedown, attempting to “extort an unreasonable severance package”, and said that he had “improperly retained” a company laptop after he was fired.
The suit was settled out of court (pdf) on October 25th for an undisclosed sum.
The lawsuit is only tangentially related to the cybersquatting lawsuit Verizon filed against DirectNIC earlier this year. That case appears to be currently tied up in a pre-trial discovery/jurisdictional nightmare.

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Did .jobs win or lose in Cartagena?

Kevin Murphy, December 17, 2010, Domain Registries

Employ Media, the .jobs registry, had a victory in Cartagena last week, when the ICANN board voted not to overturn its August decision to allow .jobs to relax its registration policies.
The company will now be able to continue with its RFP process, allocate premium generic .jobs domains to its partners, auction them, and generally liberalize the namespace.
But the registry may not have got everything it wanted.
For at least a year, Employ Media, along with the DirectEmployers Association, has been pushing the idea of creating a massive free jobs board called universe.jobs.
The site would be fed traffic from thousands of premium geographic domains such as newyork.jobs, texas.jobs and canada.jobs, as well as vocational names such as nursing.jobs and sales.jobs.
Because Employ Media was previously only allowed to sell domains that corresponded to the names of companies, such as ibm.jobs and walmart.jobs, it asked ICANN to change its contract to allow these new classes of generic names to be registered.
The registry submitted a Registry Services Evaluation Process request, which was approved by the ICANN board in early August. The contract was amended shortly thereafter.
A few weeks later, a group of jobs sites including Monster.com, calling itself the .JOBS Charter Compliance Coalition, filed a Reconsideration Request, asking ICANN to reverse its decision.
The Coalition was concerned that the contract changes would enable universe.jobs, creating a potentially huge competitor with an unfair SEO advantage, while continuing to prohibit independent jobs sites from registering .jobs domains.
While the .jobs contract had been amended, the .Jobs Charter, which restricts those who can register .jobs domains to members of the human resources community, was not.
This potentially presented a problem for universe.jobs, as DirectEmployers may not have qualified to be a registrant under the charter.
But Employ Media’s RSEP proposal talked about creating a “self-managed class” of domains – the domains would belong to the registry but would be shared with third parties such as DirectEmployers.
That would have created an interesting precedent – registries would be able to keep hold of premium generic domain names and allow them to be “used” by only partner companies that agree to enter into revenue-sharing agreements.
But that “implementation method was withdrawn” by Employ Media after the ICANN Board Governance Committee asked about it as part of its Reconsideration Request investigation.
The BGC, while rejecting the Coalition’s request (pdf), also asked ICANN’s compliance department to keep a close eye on Employ Media, to make sure it does not overstep the bounds of its charter:

the BGC recommends that the Board direct the CEO, and General Counsel and Secretary, to ensure that ICANN’s Contractual Compliance Department closely monitor Employ Media’s compliance with its Charter

Even though its Reconsideration Request was denied, the .JOBS Charter Compliance Coalition counted both of these developments as a big win for its campaign, saying in a press release:

Given the Board’s commitment to aggressively monitor Employ Media’s implementation of the Phased Allocation Program, the Coalition is highly confident that ICANN will not permit Employ Media to register domain names to “independent job site operators” for purposes of operating job sites.

So does this mean that universe.jobs is dead?
Apparently not. Talk in the halls at the ICANN Cartagena meeting last week leads me to believe that the registry has figured out a way to launch the service anyway.
And DirectEmployers this Monday published a white paper (pdf), dated January 2011, which says universe.jobs will launch early next year.
DirectEmployers declined to immediately comment on its plans when I inquired this week, and the white paper sheds little light on the technicalities of the plan.
Judging from a promotion currently being run by EnCirca, a .jobs registrar, it seems that companies will only be able to list their jobs on universe.jobs if they own their own companyname.jobs domain.
EnCirca’s offer, which alludes to the .jobs sponsor, the Society for Human Resources Management, a “SHRM special“, says:

NEWS ALERT: December 13, 2010: ICANN has RE-CONFIRMED the .Jobs registry’s plan to allocate generic occupational and geographic-related .jobs domain names. Register your companyname.jobs to be part of this new initiative.

It will be interesting to see how domain allocations are ultimately handled.
While Employ Media’s request for proposals is ostensibly open, it looks a little bit like a smokescreen for its plan to hand big chunks of the .jobs namespace to the universe.jobs project.
But who will be the registrant of these domains? And will the allocations violate the .jobs charter? Will the registry carry on with its plan to create new “self-managed” class of domain names?
I think we’re going to have to wait for the new year to find out.

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Possible new TLDs timeline revealed

Kevin Murphy, December 16, 2010, Domain Registries

ICANN’s decision to delay the approval of its new top-level domains Applicant Guidebook last week in Cartagena left one big question hanging:
When will the program open for applications?
ICANN had pencilled in May 30 for the launch, but the new delay appeared to make that impossible. In the absence of an announcement from ICANN, nobody really knows what the current timetable is.
A few possible answers have now emerged with the publication this week of ICANN staff briefing documents (pdf) used by the board to make their original decision to target May 2011.
An October 28 document entitled “New gTLD Launch Scenarios”, penned by ICANN’s Kurt Pritz and Carole Cornell, explores the board’s options for approving a launch timeline.
It notes that applications cannot be solicited until ICANN has finished its mandatory four-month outreach/marketing campaign, which in turn can’t kick off until the AGB has been approved.
I’ll let the rest speak for itself:

If the Board were to approve the Guidebook after the January/February meeting, the announcement and communications campaign launch would be made shortly thereafter. The first applications could be received as early as (but not earlier than) 1 July 2011.
If the Board elects that a full comment analysis and sixth version of the Guidebook be written, with approval at the Silicon Valley meeting, the approval would be followed by an April announcement and communications campaign launch. First applications could be received as early as (but no earlier than) August 2011.

And here’s a lovely graphic illustrating the options (click to enlarge):
New gTLD Launch Scenarios
Given that we now know that the ICANN board intends to meet with the Governmental Advisory Committee to address its outstanding issues in February, the final scenario – with a San Francisco approval and August launch – now seems more likely.
Most of the rest of the briefing document is heavily redacted.

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Some countries not paying ICANN for their IDNs

Kevin Murphy, December 16, 2010, Domain Registries

ICANN may have to fund some of its IDN ccTLD Fast Track program out of its own pocket, due to at least one country not paying its full fees, judging from information released this week.
ICANN had invoiced applicants for a total of $572,000, but only $106,000 had been received, according to briefing documents (pdf, page 114) presented at the ICANN board’s October 28 meeting.
The organization invoices registries $26,000 for each TLD string it evaluates, but the fees are not mandatory, for political reasons. As of October, it had presumably billed for 22 strings.
At least one country appears to have had its applications processed at a knock-down rate.
Sri Lanka, which was billed $52,000 for two strings, only paid $2,000, and the remaining $50,000 appears to have been written off as “uncollectable”.
Russia, Egypt, South Korea and Tunisia had paid their fees in full.
While the remaining 17 evaluated ccTLDs may not have paid up by October, that’s not to say they have not paid since or will not pay in future.
ICANN also plans to bill IDN ccTLDs 1-3% of annual revenue as a “contribution”, which also won’t be mandatory, but no registry has been live long enough to receive that bill yet.

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Go Daddy-Google group targets bogus pill merchants

Kevin Murphy, December 15, 2010, Domain Policy

The newly forming industry body tasked with taking down web sites selling fake pharmaceuticals plans to meet next month to develop its mission statement and charter, according to Go Daddy general counsel Christine Jones.
Jones said in an interview tonight that the group, which Go Daddy is jointly “spearheading” with Google, is likely to meet in Phoenix, Arizona in the third week of January.
As I blogged earlier today, the organization was formed following a series of meetings at the White House, which has a policy of reducing counterfeit drugs sales online.
Domain name companies including Go Daddy, eNom, Neustar and Network Solutions are joined in the currently nameless non-profit by the three major search engines and all the major payment processors.
Jones confirmed that redirecting a domain name is an action a participating registrar could take if it finds an infringing site. Go Daddy and others already do this in cases of child porn, for example.
But the group will also share information about fake pharma sites so Google, for example, would also be able to block them from search and Visa could stop payments being processed, Jones told me.
The White House meetings were organized by Victoria Espinel, the administration’s Intellectual Property Enforcement Coordinator (IPEC).
So, while the group has yet to formalize its policies, I wanted to know what the prevailing opinion is on how “illegal” a site will have to be before the group will try to take it down.
Taking down a site selling sugar pills or industrial acid as HIV treatments is one thing, killing a site selling genuine medications to people without prescriptions is another, and blocking a legit pharmacy that sells drugs to Americans with prescriptions more cheaply from across the Canadian border is yet another.
Jones said: “If a pharmacy is a licensed pharmacy and is abiding by whatever the state rules are wherever they’re located, that’s not our target.”
Apparently the new organization, which will be formed as a non-profit entity, may help the companies to avoid running afoul of ECPA, the US Electronic Communications Privacy Act.
Jones said that other companies participating in the White House meetings still have not decided whether to join the new group or not. End-of-year budgetary issues may be a factor here.
Domain registrars have come in for considerable flak over 2010 for allegedly not doing enough to counter fake pharma sites.
A Knujon report published in May, and others, eventually led to eNom in particular promising to crack down harder on rogue pharmacies.

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