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Identity Digital sees abuse up a bit in Q3

Kevin Murphy, January 3, 2023, Domain Registries

Identity Digital has published its second quarterly abuse review, showing abuse reports up slightly overall.

The report, which covers the third quarter 2022, also shows that the registry only released the private Whois information for a single domain during the period.

ID said it closed 3,225 abuse cases in Q3, up from 3,007 in Q2, covering 4,615 domains, up from 3,816. The vast majority — almost 93% — related to phishing. That’s in line with the previous quarter.

In about 1,500 cases, the domains in question where suspended by the registry or registrar in the first 24 hours, the report says. In 630 cases, the registry took action after the registrar failed to act within 72 hours.

The company received five complaints about child sexual abuse material from the Internet Watch Foundation during the period, up a couple on Q2, but all were remediated by the registrars in question.

It received four takedown notices from the Motion Picture Association under the registry’s Trusted Notifier Program, all of which resulted in suspended domains.

There were requests for private Whois information for 20 domains, three of which were intellectual property related, but only one resulted in disclosure. In 12 cases ID took the decision not to disclose.

The company has over 260 gTLDs in its stable and over 5.5 million registered domains.

The full slide deck can be viewed here (pdf).

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UDRPs up in 2022, firm says

Kevin Murphy, December 28, 2022, Domain Policy

The World Intellectual Property Organization saw an increase in cybersquatting disputes this year, according to WIPO data compiled by VPN maker AtlasVPN.

There were 5,616 UDRP complaints filed with WIPO, up almost 10% from 2021, the company said.

The report does not appear to include data from the several other UDRP providers, so may not reflect the state of the system as a whole.

WIPO has processed 61,284 UDRP cases since the system was founded over two decades ago, the company said.

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More details on ICANN’s CEO handover

Kevin Murphy, December 28, 2022, Domain Policy

ICANN has published more information on its change of CEO, which saw Göran Marby’s shock resignation last week.

Interim CEO Sally Costerton has been employed on an automatically renewing six-month contract that will only end if she quits, is fired, or a permanent replacement is found.

The ICANN board of directors has approved a “monthly stipend”, a bonus payment while she holds the interim position, but the amount, based on advice from compensation consultancy Willis Towers Watson, was not disclosed.

In fact, Costerton’s salary has never been disclosed in the decade she has worked for the Org. It is assumed that she is paid via the UK-based company she set up with her husband around the same time she was hired by ICANN.

That company, Sally Costerton Advisory Ltd, had about £1.3 million ($1.6 million) in net assets as of March, company records, which include no income statement, show. ICANN’s tax returns, which report executive salaries, do not reflect any payments to the company.

The board’s resolutions also confirm that Marby, who will stay as a consultant until May 2024, has will have his contract renegotiated, but the terms were redacted.

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Merry Christmas! Marby finally out as ICANN CEO

Kevin Murphy, December 22, 2022, Domain Policy

Göran Marby has “resigned” as the CEO of ICANN.

An unrelated picture of John Travolta

Chair Tripti Sinha informed staff of his departure last night, saying Marby had been working with the board “over the past few days” to ensure a “smooth transition” that will see him stay on the payroll as a consultant until May 23, 2024.

That’s the date his employment contract was due to expire anyway. There’s no word yet on whether his eye-watering salary will be reduced.

Sinha herself is a new installation, taking over after the board ousted Maarten Botterman a few months ago.

Sally Costerton, senior vice president of global stakeholder engagement, has taken over on an interim basis, while ICANN recruits a successor, but she has an added bonus of being likable and one assumes she’s a leading candidate to take over on a permanent basis.

Costerton, a British former PR professional, has been itching for the gig for over a decade, first applying after Rod Beckstrom quit in 2012 and immediately brought into the senior ranks by Fadi Chehadé, who hired both of his unsuccessful fellow short-listers.

A CEO with a background in public relations in theory is good news for ICANN transparency. The Org has been criticized for ignoring the media and other transparency obligations under its current leadership.

Marby’s achievements in his six and a half years as CEO include being the first person to persuade the board to pay him over a million dollars a year and

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ICANN loses another dot-brand, this one in use

Kevin Murphy, December 20, 2022, Domain Registries

Linde, a German chemicals company, has asked ICANN to terminate its gTLD registry contract.

Unusually, the dot-brand was actually in use, with many .linde domains still in its zone file, many of which were indexed by search engines.

It seems the company was using two-letter country-specific domains such as cz.linde and feature-oriented names such as socialmedia.linde to redirect to pages on linde.com or even the godawful the-linde-group.com.

But whatever Linde was trying, it didn’t live up to expectations, so .linde is set to be added to the funeral pyre of 100+ dead dot-brands.

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Abuse crackdown likely in next gTLD registrar contract

Kevin Murphy, December 20, 2022, Domain Policy

ICANN and its accredited registries and registrars have formally kicked off contract renegotiations designed to better tackle DNS abuse.

The aim is to create a “baseline obligation” for contracted parties to “take reasonable and appropriate action to mitigate or disrupt malicious registrations engaged in DNS Abuse”, according to recent correspondence.

This may close the loophole in the contracts identified this year that hinder ICANN Compliance’s ability to take action against registrars that turn a blind eye to abuse.

The current contracts require registrars to “take reasonable and prompt steps to investigate and respond appropriately to any reports of abuse”, which lacks clarity because there’s no agreement on what an appropriate response is.

The registries and registrars stakeholder groups (RySG and RrSG) note that there won’t be an expansion of the term “DNS abuse” to expand into web site content, nor will the talks cover Whois policy.

As is the norm for contract negotiations, they’ll be bilateral between ICANN and a select group of representative contracted parties, and conducted in private.

Talks are expected to take three to six months and the resulting amendments to the Registrar Accreditation Agreement and base Registry Agreement will be published for 30 days of public comment.

It’s been almost 10 years since the RAA was last updated.

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ICANN expects to approve Whois Disclosure System next month

Kevin Murphy, December 20, 2022, Domain Policy

ICANN could be offering a centralized system for requesting private domain registration data as early as a year from now, a mere five and a half years after GDPR ruined the global Whois system for many.

The Org recently alluded to its “board’s anticipated January 2023 vote to move forward in implementing the new system to streamline the intake and routing of requests for access to nonpublic gTLD registration data” in a blog post.

It has previously stated that it will take nine months to develop and roll out the system, along with a three-month “ramp-up period”, but that preparatory work may have already started.

The system will be based on CZDS, the service that currently allows people to request zone file data from registries, and cost $3.3 million to develop and run for its anticipated two-year trial period.

Don’t expect it to be called the Whois Disclosure System though. Community feedback has been pretty clear that “disclosure” is an inappropriate word because the system merely manages requests and does not actually disclose anything.

It’s also going to be voluntary for both requesters and registrars/registries for now.

The system was previously known as SSAD Lite, a cut-down version of the community-recommended System for Standardized Access and Disclosure, which ICANN estimated would have cost infinity dollars and take a century to implement.

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.music gets its first live web site

Kevin Murphy, December 20, 2022, Domain Registries

The .music gTLD may be still officially unlaunched, but it got its first live anchor tenant this week after the DotMusic registry joined a partnership aimed at making translated lyrics more accessible.

DotMusic said it has become part of an initiative called BELEM, for “Boosting European Lyrics and their Entrepreneurial Monetisation”. Given that the entire namespace of .music is currently available, one wonders why such a contrived acronym was chosen.

The project, which is funded with €2 million of European Union money, has a live web site managed by DotMusic at belem.music. It’s the first .music site to go live other than the mandatory nic.music registry hub.

BELEM is out to get lyrics in various European languages translated by humans and the translations licensed to streaming services.

It has 14 other partners, including Canadian lyrics licensing company LyricFind and French streaming service Deezer, which plans to roll out one-click translations based on the new service.

The aim, the group says, is to “break down cultural barriers and further support artists’ monetisation of their works”.

For DotMusic, it’s an anchor tenant perhaps more noticeable to the music industry than to the public at large.

The .music gTLD has been live in the root for over two years now, and there’s still no published launch plan.

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CentralNic buys a bunch of web sites for $5.2 million

Kevin Murphy, December 20, 2022, Domain Services

CentralNic said yesterday has splashed out $5.2 million on what it calls “a portfolio of revenue generating niche websites”.

The announcement doesn’t specify any of the “multiple” sellers or the nature of the sites, other that to say it will add $1.2 million to the top line and $1.4 million of EBITDA in 2023.

The company was already responsible for monetizing some of the sites it has bought.

CentralNic hinted that it might be slowing down its long-running acquisition spree following the departure of 13-year veteran CEO Ben Crawford last week.

The company said “it is intended that in the future, the emphasis of cashflow generated will be a more balanced approach of returns to shareholders, deleverage and complementary bolt-on acquisitions.”

The newly announced deal was presumably in the advanced stages of closure at the time of Crawford’s departure.

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Industry outlook gloomy for next year, predicts ICANN

Kevin Murphy, December 16, 2022, Domain Policy

ICANN is forecasting a downturn of the domain industry’s fortunes over the coming year according to its draft fiscal 2024 budget, published today.

The Org’s beancounters are budgeting for slumps in both legacy and new gTLD transactions, along with declines in the number of contracted registries and registrars.

Global economic conditions, such as the post-Covid recessions and high inflation being experienced by many nations, are blamed for the poor outlook.

Overall, ICANN expects to have a couple million bucks less to play with in FY24, which runs from July 2023 to June 2024.

It’s planning to receive $145.3 million, down from the $147.7 million it expects to receive in the current fiscal year, which is only half-way through.

Most of ICANN’s money comes from transaction fees on legacy gTLDs — mainly Verisign’s .com — and that’s where it’s predicting a 1% decline, from $88.3 million to $87.1 million, or 185.8 million transactions compared to 187.9 million.

ICANN receives transaction fees on every domain added, renewed or transferred between registrars.

Verisign has been lowering its financial outlook all year, as .com shrinks. Fewer .com renewals means less money for ICANN.

ICANN also thinks new gTLD sales are going down, from 25.7 transactions in the current year to 24.2 million in FY24, taking about $600,000 from ICANN’s top line.

The number of contracted registries is also predicted to decline by 19, from 1,146 to 1,127 by the end of the year, while the number of registrars is expected to increase from 2,447 to 2,452.

Other funding sources, such as ccTLD contributions and sponsorships, are expected to remain unchanged.

The draft budget is open for public comment and could well change before it is finally approved, which usually comes in May or June.

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