Yes, you are dangerous, arbitrator tells “cybersquatter” OpenTLD

Free domains provider OpenTLD has been dealt a crushing blow in its fight against the suspension of its Registrar Accreditation Agreement.
ICANN is now free to suspend OpenTLD’s RAA, due to the company’s “pattern of cybersquatting”, following a decision by an independent arbitrator.
The arbitrator ruled yesterday that OpenTLD’s suspension should go ahead, because “OpenTLD’s continued operation could potentially harm consumers and the public interest.”
The 90-day suspension was imposed by ICANN Compliance in June, after it became aware that OpenTLD had lost two UDRP cases filed by competing registrars.
WIPO panelists found in both cases that the company had infringed its competitors’ trademarks in order to entice resellers over to its platform.
The suspension was put on hold voluntarily by ICANN, pending the arbitrator’s ruling on OpenTLD’s request for emergency stay. That request was conclusively rejected yesterday.
The arbitrator wrote:

the Arbitrator has little doubt that the multiple abusive name registrations made by OpenTLD, each of which included the registered mark of a competing domain name registrar and OpenTLD’s subsequent use of those domains… formed part of a broad concerted effort by OpenTLD calculated to deliberately divert name registration business, otherwise destined for competing domain name registrars… away from those registrars to OpenTLD instead.

He wrote that OpenTLD needs to put a process in place to prevent similarly cybersquatty behavior in future, rather than just making a commitment to changing its ways.
It’s pretty harsh stuff.
OpenTLD said recently that a suspension would “devastate” and “decimate” its business, due to the intertwining of its massive ccTLD business and rather smaller gTLD platform, but the arbitrator thought a technology workaround would be rather simple to implement.
No RAA means no gTLD sales and no inbound transfers.
OpenTLD is part of Freenom, which runs .tk and other free-to-register ccTLDs.
The company’s only ray of sunlight in the ruling is that the arbitrator said the costs of the proceeding should be split equally, not all falling on OpenTLD’s shoulders.
ICANN has not yet re-instituted the suspension, but it could come soon.
The full ruling can be read here.

OpenTLD says suspension would “devastate” its business

OpenTLD has fired off its newest salvo in its ongoing cybersquatting dispute with ICANN, saying the ICANN-imposed suspension would “devastate” its business.
The company has also addressed many of ICANN’s cybersquatting allegations, while failing to deny it squatted on two competitors’ trademarks.
In its latest arbitration filing (pdf), OpenTLD said: “Quite simply, the suspension of OpenTLD’s ability to offer gTLD registrations and inbound transfers would decimate its unique business model.”
ICANN had argued that the suspension of its registrar accreditation was no big deal because its gTLD domain base is measured in the low thousands, whereas the total domains under management of parent Freenom, which offers free domains in .tk and other ccTLDS, is in excess of 25 million.
But OpenTLD said the two businesses as “deeply intertwined” and separating the two would impair its ability to do business.
ICANN is pushing for the suspension because OpenTLD lost two UDRP cases earlier this year. Both were filed by competitors — Key-Systems and NetEarth — who accused the registrar of attempting to lure resellers to its platform by infringing rivals’ trademarks.
ICANN has since followed up by accusing OpenTLD of continuing to cybersquat famous brands, including Google and Facebook, even after the suspension notice was issued. These claims, as I noted last week, are very dubious, however.
In its latest filing, OpenTLD denies that any of those domains — all of which use its privacy service — were registered by itself. It goes so far as to name the actual registrants.
But it fails to deny that it was the true registrant of the Key-Systems and NetEarth domains lost in the UDRP cases.
Rather, it focuses on ICANN’s claims that it committed “cyberflight” by deleting the UDRP’d domains rather than allowing them to be transferred to the trademark owners.
It admits that the domains were deleted but said this was “inadvertent” and that it attempted to transfer them to its competitors later.
OpenTLD wants the threatened suspension stayed.
The case continues. A decision by the arbitration panel is expected August 24.

Battle over .jobs to drag on into 2013

Employ Media’s fight to avoid losing its contract to run .jobs won’t be resolved this year, according to the latest batch of arbitration documents published by ICANN.
February 2013, two years after the the battle was joined, is now the absolute earliest the company could find out whether ICANN has the right to shut down .jobs due to an alleged contract breach.
As you may recall from deep in the mists of time (actually, February last year) ICANN threatened to terminate Employ Media’s contract due to the controversial .Jobs Universe project.
The registry gave thousands of .jobs domains, mostly geographic or vocational strings, to its partner, the DirectEmployers Association, which started competing against jobs listings sites.
A coalition of jobs sites including Monster.com complained about this on the basis that .jobs was originally designed for companies to list their own jobs, not to aggregate third-party listings.
The coalition believed that the .Jobs Universe project was essentially a fait accompli, despite Employ Media’s promise that all the names now allocated to DirectEmployers would be subject to an open RFP process.
ICANN eventually agreed with the coalition, issued a breach notice, and now it finds itself in arbitration under the auspices of the International Chamber of Commerce.
Employ Media demanded arbitration in May last year, but it has inexplicably taken until now for it, ICANN and the ICC to publish a draft timetable for the process.
A face-to-face hearing has now been scheduled for January 28 to February 8, 2013. Between now and December, it’s paper filings – claims and counterclaims – all the way.
Arbitration clauses were added as standard to ICANN’s registry agreements in order to create a cheaper, faster option than fighting out disagreements in the courts.
However, with both sides lawyered up and a process now likely to last at least two years, it’s easy to wonder just how much more efficient it will be.
It won’t be an easy decision for the ICC panel.
While I still believe Employ Media was a bit sneaky about how it won ICANN approval for the .Jobs Universe project – and it certainly disenfranchised other jobs sites – there’s no denying that .jobs is now a much healthier gTLD for registrants as a result of DirectEmployers’ involvement.
An ICANN win might actually be a bad thing.