Domain name industry growth slowed by China crackdown

The massive slump in Chinese domain name registrations appears to have hit the overall domain name market significantly in the first quarter 2010, slowing its growth.
According to the latest VeriSign Domain Name Industry Brief, only one million net new domains were registered across all TLDs in the period, a paltry 0.6% increase.
There were about 193 million domains active at the end of March, up from 192 million at the start of the year.
A million might seem like a lot, until you consider that the market grew by 11 million domains in the fourth quarter and by three million in the first quarter of 2009.
The slump is certainly due to the rapid decline in .cn domains.
China’s ccTLD had about 13.4 million names at the end of last year, and only 8.8 million at the end of March. April’s numbers show the decline continued, with 8.5 million names registered.
The China drag has been caused by a combination of pricing and the Draconian new identification requirements the communist government placed on the registry, CNNIC.
Chinese registrants now have to present photo ID before they can register a domain.
VeriSign’s own .com/.net business did a decent trade in the quarter, up 7% compared to the same quarter last and 2.7% on December to 99.3 million names in total.
With registrations growing by 2.7 million per month, this means VeriSign already has more than 100 million names in its com/net database.

3 Comments Tagged: .cn, .com, .net, china, cnnic, ctlds, domain name industry brief, verisign

Red Bull wins court case but loses UDRP

Energy drink maker Red Bull has somehow managed to lose a UDRP complaint over the domain name taurusrubens.com, despite having already won a lawsuit against its current registrant.
“Taurus Rubens” was the name of an air show slash performance art piece sponsored by Red Bull, performed at Salzburg airport in August 2003. There’s a clip here on YouTube.
The day before the show, an Austrian man named Reinhard Birnhuber registered taurusrubens.com and rubenstaurus.com and parked them with his ISP.
Two years later, when Red Bull got wise to the registrations, it offered Birnhuber €500 for them. He countered with a demand for a whopping €1 million.
That was in March 2005. One month later, Red Bull secured an Austrian trademark on the term “Taurus Rubens”. It then filed a UDRP complaint with WIPO.
Judging from that WIPO decision, it’s pretty clear that Birnhuber’s registrations were not entirely innocent.
Not only did he ask a ludicrous price for the domains, he also admitted to knowing about the air show when he registered them, he already owned redbullbag.com, and he gave a bunch of reasons about his plans for developing the domains that WIPO didn’t buy.
Nevertheless, because Red Bull had acquired its trademark rights years after the registrations, apparently just so it had standing under the UDRP rules, WIPO dismissed the complaint.
So Red Bull sued in an Austrian commercial court instead, and won.
Birnhuber appealed, and lost.
The court ruled that he had registered the domains in bad faith and that he should turn them over to Red Bull.
But he has apparently so far refused to do so. So Red Bull this year filed a second UDRP complaint with WIPO, asking for the domains to be transferred to it.
And, bizarrely, Red Bull lost.
WIPO this week denied the company’s complaint on the grounds that the the Austrian court’s ruling is irrelevant under UDRP rules, and that the 2005 WIPO decision should stand.
Here’s a Google translation of the relevant bits:

The panel can see in the above circumstances, no new facts or actions that would warrant a new assessment of the case. In this respect, the complainant fails to recognize that not only “new actions” to the resumption of proceedings are necessary, but this also has to be relevant.
…
The correct legal result is more than the enforcement of that ruling in Austria, especially as the present legal request (transfer of the domain name) covers with the sentencing order of the Austrian court. Since both parties are domiciled in Austria, is likely a priori, no specific enforcement problems arise. WIPO panels can so far do not replace the state authorities.

So, does Birnhuber get his €1 million? I doubt it. But right now he still owns taurusrubens.com.

5 Comments Tagged: austria, red bull, reinhard birnhuber, tarusrubens.com, taurus rubens, udrp, wipo

US government requests root DNSSEC go-ahead

The National Telecommunications and Information Administration, part of the US Department of Commerce, has formally announced its intent to allow the domain name system’s root servers to be digitally signed with DNSSEC.
Largely, I expect, a formality, a public comment period has been opened (pdf) that will run for two weeks, concluding on the first day of ICANN’s Brussels meeting.
NTIA said:

NTIA and NIST have reviewed the testing and evaluation report and conclude that DNSSEC is ready for the final stages of deployment at the authoritative root zone.

DNSSEC is a standard for signing DNS traffic using cryptographic keys, making it much more difficult to spoof domain names.
ICANN is expected to get the next stage of DNSSEC deployment underway next week, when it generates the first set of keys during a six-hour “ceremony” at a secure facility in Culpeper, Virginia.
The signed, validatable root zone is expected to go live July 15.

1 Comment Tagged: brussels, DNSSEC, ICANN, ntia

Charity e.co auction kicks off with $10k bid

The four-day auction of the domain name e.co started less than an hour ago at Sedo, and it has already attracted a five-figure bid.
.CO Internet, the Colombian firm behind the newly liberalized .co ccTLD namespace, is using the auction to plug its upcoming landrush, which kicks off June 20.
Juan Diego Calle, CEO of the registry, previously said e.co is “perhaps the shortest, most memorable digital brand in the world”.
Proceeds from the sale will be donated to the charity of the winning bidder’s choosing.
Due to the high-profile nature of the auction, wannabe bidders have to fill out an application form before posting their bids.
The bidding will conclude during a live event at the Internet Week show in New York this Thursday.

Comment Tagged: .co, .co internet, e.co, sedo

Nominet appoints Baroness to chair

Nominet, the .uk registry manager, has hired Irene Fritchie, aka Baroness Fritchie, to be its new chair.
No, I’d never heard of her either, but apparently Fritchie is a life peer and a dame, with a seat in the House of Lords since 2005.
Her geek credentials appear to comprise her chairmanship, until last year, of the Web Science Research Initiative, a joint initiative between the University of Southampton and MIT.
So she’s on speaking terms with Tim Berners-Lee, it seems.
Fritchie replaces Bob Gilbert, who quit in March after guiding the organization through a tricky period.
A cynic would say that it’s fortuitous that Nominet now has a member of the UK legislature fighting its corner, given that the recently passed Digital Economy Act originated and was primarily written in the Lords.
The Act created powers for the British government to take over .uk if Nominet screws up by letting domainers commandeer its board.
Fritchie is a cross-bencher, meaning she is beholden to no one political party.
Nominet also said that it has appointed Piers White MBE as a non-executive director. White has a background in banking and currently sits on the board of Ordnance Survey.

1 Comment Tagged: baroness fritchie, bob gilbert, digital economy act, nominet, piers white

Council of Europe wants ICANN role

The Council of Europe has decided it wants to play a more hands-on role in ICANN, voting recently to try to get itself an observer’s seat on the Governmental Advisory Committee.
The Council, which comprises ministers from 47 member states, said it “could encourage due consideration of fundamental rights and freedoms in ICANN policy-making processes”.
ICANN’s ostensibly technical mission may at first seem a bit narrow for considerations as lofty as human rights, until you consider areas where it has arguably failed in the past, such as freedom of expression (its clumsy rejection of .xxx) and privacy (currently one-sided Whois policies).
The Council voted to encourage its members to take a more active role in the GAC, and to “make arrangements” for itself to sit as an observer on its meetings.
It also voted to explore ways to help with the creation of a permanent GAC secretariat to replace the current ad hoc provisions.
The resolution was passed in late May and first reported today by IP Watch.
The Council of Europe is a separate entity to the European Union, comprising more countries. Its biggest achievement was the creation of the European Court of Human Rights.

2 Comments Tagged: council of europe, gac, governmental advisory committee, ICANN, whois, xxx

How a company hacked the .eu sunrise to register generic domains

An Austrian company exploited a loophole in EurID’s .eu sunrise period to register dozens of generic .eu domain names, according to the European Court of Justice.
An outfit by the name of Internetportal und Marketing GmbH noticed back in 2005 that European Union regulations covering the .eu launch said that trademarks containing “special characters” could be claimed under the .eu sunrise.
If your trademark contained characters not compatible with normal DNS, such as $ or #, you could ignore those characters when you applied for your trademark as a .eu sunrise period domain.
So, with ingenuity I have to grudgingly admire, Internetportal registered 33 trademarks in Sweden that comprised generic dictionary terms interspersed with those special characters.
By applying under the sunrise period, rather than during the landrush or open registration periods, the company could eliminate most of its competitors for the domain.
Crafty.
The ECJ case concerned the domain reifen.eu – meaning “tyre” “or “tire” in German – but the company apparently also applied to register 180 other generic domains using the same method.
Internetportal registered the trademark “&R&E&I&F&E&N&”, knowing that the ampersands would be ignored by EurID’s policy when it applied for reifen.eu.
It did in fact win the domain, and others, during the sunrise, on the back of its Swedish trademarks.
Unfortunately, a man named Richard Schlicht who held a (later) Benelux trademark on the term “reifen” filed a Alternative Dispute Resolution procedure over the registration in 2006 and won.
Internetportal appealed, and it eventually made its way to ECJ. But Europe’s highest court decided last week that reifen.eu had indeed been registered in bad faith and in violation of the rules.
There’s loads of stuff in the ruling to excite IP lawyers, but as far as I can tell it boils down to one basic common-sense precedent: if you register a trademark purely for the purposes of securing a domain name in a sunrise period, you’re out of luck, at least in Europe.
Given that pretty much all the dictionary terms under .eu have already gone, and that the sunrise period ended years ago, I doubt the finding will have a great deal of immediate practical impact.
But a more general point holds, for those considering applying for a new TLD: if there are loopholes in your sunrise period rules, you can guarantee they will be exploited.

2 Comments Tagged: adr, alternative dispute resolution, eurid, european court of justice, internetportal, newTLDs, reifen.eu, sunrise

Go Daddy launches paid YouTube clone

Go Daddy has opened the doors of Video.me, a video-hosting service with a difference.
The difference is you have to pay for it.
The company seems to be banking on the idea that users will be happy to hand over $2 per month, rather than use YouTube for free, because Video.me has simpler password protection.
“People want privacy online, it’s obvious from the all of the recent news,” chief executive Bob Parsons said in a press release. “YouTube has been the place for mass-consumption videos, but for sharing more personal items, it’s way too complicated.”
Most of the recent news about online privacy has been focused on Facebook. I don’t think I’ve seen many people complaining about YouTube.
Still, at the very least the service is a high-profile use of a .me domains, which could help Go Daddy as a partner in Domen, the Montenegro-based .me registry.

2 Comments Tagged: .me, domen, facebook, go daddy, video.me, youtube

ICANN’s Draft Applicant Guidebook v4 – first reactions

As you probably already know, ICANN late yesterday released version 4 of its Draft Applicant Guidebook, the bible for new top-level domain registry wannabes.
Having spent some time today skimming through the novel-length tome, I can’t say I’ve spotted anything especially surprising in there.
IP interests and governments get more of the protections they asked for, a placeholder banning registries and registrars from owning each other makes its first appearance, and ICANN beefs up the text detailing the influence of public comment periods.
There are also clarifications on the kinds of background checks ICANN will run on applicants, and a modified fee structure that gets prospective registries into the system for $5,000.
DNSSEC, security extensions for the DNS protocol, also gets a firmer mandate, with ICANN now making it clearer that new TLDs will be expected to implement DNSSEC from launch.
It’s still early days, but a number of commentators have already given their early reactions.
Perennial first-off-the-block ICANN watcher George Kirikos quickly took issue with the fact that DAG v4 still does not include “hard price caps” for registrations

[The DAG] demonstrates once again that ICANN has no interests in protecting consumers, but is merely in cahoots with registrars and registries, acting against the interests of the public… registry operators would be open to charge $1000/yr per domain or $1 million/yr per domain, for example, to maximize their profits.

Andrew Allemann of Domain Name Wire reckons ICANN should impose a filter on its newly emphasised comment periods in order to reduce the number of form letters, such as those seen during the recent .xxx consultation.
I can’t say I agree. ICANN could save itself a few headaches but it would immediately open itself up to accusations of avoiding its openness and transparency commitments.
The Internet Governance Project’s Milton Mueller noted that the “Draconian” text banning the cross-ownership of registries and registrars is basically a way to force the GNSO to hammer out a consensus policy on the matter.

Everyone knows this is a silly policy. The reason this is being put forward is that the VI Working Group has not succeeded in coming up with a policy toward cross-ownership and vertical integration that most of the parties can agree on.

I basically agree. It’s been clear since Nairobi that this was the case, but I doubt anybody expected the working group to come to any consensus before the new DAG was drafted, so I wouldn’t really count its work as a failure just yet.
That said, the way it’s looking at the moment, with participants still squabbling about basic definitions and terms of reference, I doubt that a fully comprehensive consensus on vertical integration will emerge before Brussels.
Mueller lays the blame squarely with Afilias and Go Daddy for stalling these talks, so I’m guessing he’s basing his views on more information than is available on the public record.
Antony Van Couvering of prospective registry Minds + Machines has the most comprehensive commentary so far, touching on several issues raised by the new DAG.
He’s not happy about the VI issue either, but his review concludes with a generally ambivalent comment:

Overall, this version of the Draft Applicant Guidebook differs from the previous version by adding some incremental changes and extra back doors for fidgety governments and the IP interests who lobby them. None of the changes are unexpected or especially egregious.

DAG v4 is 312 pages long, 367 pages if you’re reading the redlined version. I expect it will take a few days before we see any more substantial critiques.
One thing is certain: Brussels is going to be fun.

3 Comments Tagged: afilias, andrew allemann, antony van couvering, dag, DNSSEC, draft applicant guidebook, george kirikos, go daddy, ICANN, internet governance project, milton mueller, Minds + Machines, new TLDs, vertical integration

ICANN’s Sword algorithm fails Bulgarian IDN test

ICANN has released version 4 of its new TLD Draft Applicant Guidebook (more on that later) and it still contains references to the controversial “Sword” algorithm.
As I’ve previously reported, this algorithm is designed to compare two strings for visual similarity to help prevent potentially confusing new TLDs being added to the root.
The DAG v4 contains the new text:

The algorithm supports the common characters in Arabic, Chinese, Cyrillic, Devanagari, Greek, Japanese, Korean, and Latin scripts. It can also compare strings in different scripts to each other.

So I thought I’d check how highly the internationalized domain name .бг, the Cyrillic version of Bulgaria’s .bg ccTLD, scores.
As you may recall, .бг was rejected by ICANN two weeks ago due to its visual similarity to .br, Brazil’s ccTLD. As far as I know, it’s the only TLD to date that has been rejected on these grounds.
Plugging “бг” into Sword returns 24 strings that score over 30 out of 100 for similarity. Some, such as “bf” and “bt”, score over 70.
Brazil’s .br is not one of them.
Using the tool to compare “бг” directly to “br” returns a score of 26. That’s a lower score than strings such as “biz” and “org”.
I should note that the Sword web page is ambiguous about whether it is capable of comparing Cyrillic strings to Latin strings, but the new language in the DAG certainly suggests that it is.

6 Comments Tagged: .br, .бг, brazil, bulgaria, cctlds, ICANN, idns, new TLDs, sword group