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.ai registry fights deadbeats with tweaked auction rules

Kevin Murphy, March 21, 2024, Domain Registries

With too many auction winners failing to hand over the loot, the .ai registry has changed its auction terms to make being a deadbeat more expensive.

The registry has increased its deposit requirement from 2% to 5% for bidders considered “high risk”, which basically means new customers, or $100, whichever is higher. The deposit is forfeit if the buyer fails to pay.

The move comes because too many winners are currently failing to pay. On Twitter, registry manager Vince Cate wrote yesterday:

On http://auction.whois.ai we have had too many cases of people not paying for domains they bid for so we are increasing the deposit requirement to 5% and the non-payment fee to 5% effective immediately.

The registry conducts monthly auctions of expired inventory on its own platform using park.io software and is mirrored at Dynadot. The highest-interest names regularly attract five-figure bids, due to the increasing popularity of artificial intelligence.

Sometimes, the same names show up in consecutive auctions because the previous winner didn’t pay up. In January, for example, dog.ai and insure.ai, which had both attracted bids over $20,000, returned to auction.

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Amazon and Google among .internal TLD ban backers

Kevin Murphy, March 20, 2024, Domain Tech

Google and Amazon have publicly backed ICANN’s plan to reserve the top-level domain .internal for private behind-the-firewall uses.

ICANN picked the string “internal” as the one that it will promise to never delegate to the DNS root, allowing network administrators and software developers to confidently use it with a lower risk of data leakage should the TLD come under a registry’s control in future.

The public comment period over its choice is coming to a close tomorrow, with a generally supportive vibe coming from the 30-odd comments submitted so far.

Notably, tech giants Amazon and Google have both filed comments backing .internal, with both companies saying that they already use the TLD extensively for internal purposes (Google in its Cloud services) and that to allow it to be delegated in future would cause big problems.

Some commenters niggled that .internal is too long, and that something like .local or .lan, both already reserved, might be better. Others wondered why strings such as .corp or .home, which are already effectively banned due to the high risk of name collisions, were not chosen instead.

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.ai registry advises buyers not to use GoDaddy

Kevin Murphy, March 19, 2024, Domain Registries

The manager of the increasingly popular .ai ccTLD has seemingly escalated his beef with GoDaddy, now advising registrants to not transfer their .ai domains to the market-leading registrar due to technical and operational issues.

The list of approved registrars on the .ai registry web site has contained a warning about problems transferring domains into GoDaddy for many months, but now it explicitly advises against such transfers. The site reads:

We have had several problems with transfers into GoDaddy. First, you have to use auth codes of 32 characters or less. Second they can take weeks and many email and phone calls to actually do the transfer. Anyplace else the transfer is nearly instant once the receiving party does the transfer with the auth code and the domain is unlocked. With GoDaddy the auth code is just the start of a long process. For years GoDaddy could not transer .ai domains at all. We do not advise transfering to go GoDaddy and if you do don’t ask us for help, the problem is all GoDaddy.

GoDaddy has also been removed from .ai’s list of supported registrars, but registry manager Vince Cate tells me he did this at the request of GoDaddy, which he said is a reseller of Team Internet’s 1API. He declined to comment further.

I asked GoDaddy for comment a few weeks ago but did not receive one.

An earlier version of Cate’s warning, from about a year ago as .ai domains started to fly off the shelf, read:

The company Godaddy will say “domains with this extension are not transferable” when someone tries to transfer a “.ai” domain to them when a more correct error message would be “Godaddy does not know how to transfer .ai domains even though it is done using the industry standard EPP transfer command”.

It was later updated to read:

The company Godaddy will say “domains with this extension are not transferable” when someone tries to transfer a “.ai” domain to them when a more correct error message would be “Godaddy does not know how to transfer .ai domains even though it is done using the industry standard EPP transfer command”. They will also say, “Technically .ai domains are not transferable between most registrars, but we have a dedicated team that transfers them manually.” This is so wrong. All other registrars have no trouble doing them automatically. The only technical failure is at Godaddy. Because of they way Godaddy is doing this, I get many people asking me, “Vince, why don’t you let people transfer .ai domains?”, as if I was doing something wrong and not Godaddy. I do let people transfer .ai domains. All of the above registrars can do it automatically without any trouble. Really.

While the .ai domain is managed by the Government of Anguilla, Cate seems to have substantial autonomy over the registry. Much of its bare-bones web site is written in the first person.

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.post liberalizes with new sunrise period

Kevin Murphy, March 19, 2024, Domain Registries

The .post gTLD has opened a brand-protection sunrise period 12 years after it first launched, after liberalizing its registration policies to allow private businesses to buy domains.

.post is a “sponsored” gTLD run by the Universal Postal Union, a UN agency, and so far the space has been restricted to national postal agencies which are individually vetted before their domains can go live.

But the policies have been updated to allow the likes of private shipping and logistics providers and post-related technology vendors to also register names.

Registrants will still have their credentials checked and published for opposition when applying to register names, so it’s not going to be a speculative free-for-all when .post eventually goes to “general availability” on May 1.

The sunrise period will run until April 15, with only trademark owners able to apply.

The operation is being run largely by EnCirca, which is the only accredited registrar apart from the registry itself. It had just 430 registered names at the last count.

The .post ICANN Registry Agreement is up for renewal this year.

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Team Internet spends $41 million on content farm

Kevin Murphy, March 19, 2024, Domain Registries

Team Internet is back in acquisition mode, saying this morning it has picked up an Israeli content farm business for $41.8 million.

It’s bought Shinez IO, based in Tel Aviv and Denver, for the initial sum plus a potential extra $12.3 million if the company meets certain financial targets over the next two years, the company said.

Shinez operates a network of lightweight blogs covering areas such as food and fashion, which are marketed via social media and monetized via multiple ad networks.

It’s a lucrative business — Team Internet says Shinez had revenue of $111 million, $17.2 million in net revenue, and $10.4 million of EBITDA in 2023.

The acquisition edges Team Internet, formerly CentralNic, ever closer to becoming a billion-dollar company. It now expects revenue for 2023 to work out at $948 million.

The deal also seems to mean reduced exposure to Google as the company’s number one ad revenue source. Team Internet said “this acquisition would more than double the Online Marketing segment’s revenue generated independently of our Tier 1 channel partner”.

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Epik backtracks on Kiwi Farms claim after legal threat

Kevin Murphy, March 19, 2024, Domain Registrars

Epik has retracted a claim it made on social media that former customer Kiwi Farms was hosting child sexual abuse material on its web site.

The troubled registrar had said on Twitter in January that it had received a complaint about a “doxxing” post on the Kiwi Farms troll forum that contained naked photographs of an individual Epik said it believed was “underaged”.

Kiwi Farms supporters counter-claimed that the person in question was a 19-year-old adult and the web site’s owner, known as Null, threatened Epik with legal action.

Today, Epik tweeted:

Epik retracts its statement in regards to the Kiwi Farms @KiwiFarmsDotNet having child sexual abuse material on its website. While Epik may not agree with content that may be on its website, Epik has no direct knowledge of child sexual abuse material on the Kiwi Farms’ website.

In the last couple of month, Epik has sought to rebrand itself as a responsible registrar focused on entrepreneurs rather than controversial anchor tenants. It updated its abuse policy last year and kicked out customers such as Kiwi Farms and Gab.

The company is now owned by Registered Agents, a company formation company.

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.austin names launch on blockchain

Kevin Murphy, March 19, 2024, Domain Registries

A city gTLD launching exclusively on a blockchain alternative naming system? It’s happened, with the announcement of .austin at the SXSW conference in Austin, Texas.

The extension is already on sale at $10 a name via Unstoppable Domains, in partnership with the Greater Austin Asian Chamber of Commerce.

The organizations said the names will serve 2.4 million residents of the Austin area. The extension appears on the Polygon blockchain.

There are plenty of city name gTLDs in the regular DNS, but .austin is believed to be the first blockchain-exclusive (excluding perhaps Handshake, where there are no doubt a great many).

The GAACC claims, without citation, that .austin is “far more secure than the four US city traditional TLDs that exist so far”, which is probably true — domains that don’t resolve for most people can’t be as easily abused.

There’s no word in the Unstoppable or GAACC announcements whether the plan is to apply to ICANN for .austin in the proper DNS in 2026 and mirror the two namespaces, but GAACC will face some administrative hurdles if it wishes to do so.

Under the current draft of the next round’s Applicant Guidebook, applicants need formal endorsement from the local government when applying for “a city name, where the applicant declares that it intends to use the gTLD for purposes associated with the city name.”

If the City of Austin were to apply to ICANN separately, there would no doubt be friction.

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Freenom shuts down 12.6 million domains — report

Kevin Murphy, March 18, 2024, Domain Registries

Dying free-domains registry Freenom has shut down at least 12.6 million domains across three of its TLDs, according to research from Netcraft.

Netcraft’s latest web server survey shows that the domains — across .tk, .cf and .gq — no longer resolve, according to the company.

That’s 98.7% of the resolving domains Freenom had a month earlier, Netcraft said.

Freenom, also known as OpenTLD, said in February that it was to exit the domains business entirely as part of its settlement with Facebook owner Meta, which had sued it for alleged cybersquatting.

It had already lost its ICANN registrar accreditation and its government contracts to run its portfolio of ccTLDs.

The company’s business model was to offer most domains for free and then monetize them when the registrations expired or were suspended for abuse. It attracted a lot of abusive registrants.

Interestingly, Netcraft notes that the deletions meant that Cloudflare saw a 22% drop in its total hosted domains (with Cloudflare acting as host, not registrar) over the month.

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GoDaddy’s next .xxx contract may not be a done deal

Kevin Murphy, March 18, 2024, Domain Policy

ICANN has published what could be the next version of GoDaddy’s .xxx registry contract, and is framing it as very much open to challenge.

The proposed Registry Agreement would scrap the “sponsored” designation from .xxx, substantially reduce GoDaddy’s ICANN fees, and implement the strictest child-protection measures of any gTLD, as well as make ICANN Compliance’s job a lot easier by standardizing terms on the new gTLD program’s Base RA.

But, as eager as ICANN usually is to shift legacy, pre-2012 gTLDs to the Base RA, this time it’s published the contract for public comment as if it’s something GoDaddy is unilaterally proposing.

It’s “ICM’s proposal”, according to ICANN’s public comment announcement, referring to GoDaddy subsidiary ICM Registry, and “ICM has requested to use the Base Registry Agreement form, as well as to remove the sponsorship designation of the .XXX TLD”.

This is not the language ICANN usually uses when it publishes RA renewals for public comment. Normally, the proposed contracts are presented as the result of bilateral negotiations. In this case, ICANN and ICM have been in renewal discussions for at least three years, but the contract is being presented as something GoDaddy alone has asked for.

The new RA would remove almost all references to sponsorship and to IFFOR, the pretty much toothless “sponsor” organization ICM created to get its .xxx application over the line under the rules of the Sponsored TLD application round that kicked off back in 2003.

Instead, it loads a bunch of Public Interest Commitments, aimed at replicating some of the safeguards IFFOR oversight was supposed to provide, into the Base RA.

GoDaddy would have to ban and proactively seek out and report child sexual abuse material. It would also prohibit practices that suggest the presence of CSAM, such as the inclusion of certain unspecified keywords in .xxx domains or in the corresponding web site’s content or meta-content.

(ICANN notes that these PICs may become unenforceable, depending on the outcome of current discussions about its ability to enforce content-related terms of its contracts).

GoDaddy and IFFOR have both submitted letters arguing that sponsorship is no longer required. The existence of sister gTLDs .adult, .sex, and .porn as unsponsored gTLDs, also in the GoDaddy Registry stable, proves the extra oversight is not needed, they say. Registrants polled do not object to the changes, they say.

GoDaddy’s cost structure would also change under the new deal. Not only would it save $100,000 a year by cutting off IFFOR, but it would also inherit the Base RA’s 50,000-domain threshold for paying ICANN transaction fees.

This likely means it won’t pay the $0.25 transaction fee for a while — .xxx was at about 47,500 domains under management and shrinking at the last count. It hasn’t reported DUM over 50,000 since January 2023.

While the renewal terms may seem pragmatic and not especially unreasonable, they’ve already received at least one public objection.

Consultant Michael Palage, who was on the ICANN board for the first three years of .xxx’s agonizing eight-year path to approval, took to the mic at the ICANN 79 Public Forum earlier this month to urge the board to reject GoDaddy’s request.

Palage said there have been “material violations of the Registry Agreement” that he planned to inform ICANN Compliance about. He added that approving the new deal would set a bad precedent for all the other “community” registries ICANN has contracts with.

The situation has some things in common with the controversy over the proposed acquisition of Public Internet Registry and .org a few years ago, in that the proposal entails ignoring promises made by a registry two decades ago.

Whether .xxx will attract the same level of outrage is debatable — this deal doesn’t involve nearly as many domains and does not talk to the price registrants pay — but it could attract noise from those who believe ICANN should not throw out its principles for the sake of a quieter life.

One place we might look for comment is the Governmental Advisory Committee, which was the biggest reason .xxx took so long to get approved in the first place.

But the timing of the comment period opening is interesting, coming a week after ICANN 79 closed. It will end April 29, about six weeks before the full GAC next meets en masse, at ICANN 80.

It’s not impossible that the new contract could be approved and signed before the governments get a chance to publicly haul ICANN’s board over the coals.

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GlobalBlock blocking 2.5 million domains

Kevin Murphy, March 15, 2024, Domain Services

GoDaddy-led brand protection project GlobalBlock says it is already blocking over 2.5 million domains, just a couple of weeks after its formal launch.

The GlobalBlock web site reports that 2,569,815 domains are currently being blocked across 559 extensions (a mix of ccTLDs, gTLDs, third-level domains and blockchain names), for an average of just under 4,600 per extension.

It’s difficult to extrapolate much useful information about rapid market demand for the service from this one number, for a variety of reasons.

First, the more-expensive GlobalBlock+ service can block well north of 10,000 domains, mostly homographic variants of a trademark, for a single fee, which could mean as few as just a couple hundred customers have signed up so far at the most pessimistic interpretation.

Second, GlobalBlock offered pricing incentives to existing customers of GoDaddy’s AdultBlock and Identity Digital’s Domain Protected Marks List, both of which are over a decade old, in the months-long run-up to launch.

The vanilla, single-brand GlobalBlock service retails for about $6,000 per year, with GlobalBlock+ going for closer to $9,000.

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