Four more dot-brands join the gTLD deadpool

Four big-brand gTLDs have asked ICANN to terminate their contracts so far this year, bringing the total number of voluntarily discontinued strings to 73.

Notable among the terminations are two of the three remaining gTLDs being held by luxury goods maker Richemont, both of them Chinese-language generics.

It’s dumped .珠宝 (.xn--pbt977c) which is “.jewelry”, and .手表 (.xn--kpu716f) which is “.watches”.

The company, which applied for 14 gTLDs in the 2012 round, has already gotten rid of nine dot-brands. Only the English-language .watches remains of its former portfolio.

Also being terminated is .esurance, named for an American insurance provider owned by Allstate. This appears to be related to Allstate’s plan to discontinue the Esurance brand altogether this year.

There is still one .esurance domain active and listed in Google’s index: homeowners.esurance.

Allstate continues to own .allstate, which has a few active domains (which forward to its primary .com domain).

Finally, French reinsurance giant SCOR wants rid of .scor, which it has not been using.

End of the road for Neustar as GoDaddy U-turns again and buys out its registry biz

GoDaddy has changed its mind about the registry side of the industry yet again, and has acquired the business of Neustar, one of the largest and oldest registries.

The deal will see GoDaddy purchase, for an undisclosed sum, all of Neustar’s registry assets, amounting to 215 TLDs and about 12 million domains.

It means the gTLD .biz is now under the new GoDaddy Registry umbrella, as are the contracts to run the ccTLDs .us, .in, and .co, 130 dot-brand gTLDs and 70 open gTLDs.

Neustar’s registry staff are also being taken on.

“We’re bringing the whole team aboard. One of the things we’re very excited about is bringing the team aboard,” Andrew Low Ah Kee, GoDaddy’s chief operating officer, told DI today.

He added that, due to coronavirus job insecurities wracking many minds right now, GoDaddy has promised its entire workforce that there will be no layoffs in the second quarter.

Nicolai Bezsonoff, currently senior VP of Neustar’s registry business, will run the new unit. He said for him the opportunity for “innovation” was at the heart of the deal.

“We’ve always been one step removed from the customer, so it can be hard to understand what customer wants to do,” he said. “This gives us huge customer insight into what customers want and how they want to use domains.”

Pressed for hypothetical examples of innovation, Bezsonoff floated ideas about selling domains for partial-year periods, or doing more to crack down on DNS abuse.

The deal is an example of “vertical integration”, which has been controversial due to the potential risk of a dominant registry playing favorites with its in-house registrar, or vice versa.

While registries such as Donuts, CentralNic and until recently Uniregistry vertically integrated with little complaint, the industry is currently nervous about Verisign’s newfound ability under its ICANN contract to own and run a registrar.

Because GoDaddy is the Verisign — the runaway market leader — of the registrar side of the industry, one might expect this deal (expected to close this quarter) to get more scrutiny than most.

But the company says it’s going to “strictly adhere to a governance model that maintains independence between the GoDaddy registry and registrar businesses”.

Low Ah Kee said that this means the registry and registrar “won’t share any information that gives or appears to given any unfair advantage” to the GoDaddy registrar, that their business performance will be assessed separately, and that they’ll be audited to make sure they’re not breaking this separation.

If GoDaddy appears to be preemptively expecting criticism, there’s a good reason why: the proposed acquisition of .org manager PIR by private equity group Ethos Capital has caused huge upset in recent months, and there are some parallels here.

First, like .org, pricing restrictions were lifted in Neustar’s .biz under a contract renewal with ICANN last year. It fell under the radar a little as .biz is substantially smaller, not a legacy gTLD as such, and not widely used.

Like the .org deal, the transfer of control of .biz will also be subject to ICANN’s approval before GoDaddy and Neustar can seal the deal.

Could we be looking at another big public fight over a gTLD acquisition?

But unlike Ethos with .org, GoDaddy says it has no intention of raising prices with .biz.

“We will not be raising prices, in fact we will look into reducing prices for some TLDs,” Bezsonoff said.

One TLD where one assumes prices won’t be going down is .co, where Neustar has just had its margins massively slashed by the Colombian government.

The acquisition was announced just days after the Colombian government announced that it has renewed its contract with Neustar to run .co for another five years, but under financial terms hugely more favorable to itself.

Whereas the initial 10-year term saw the government being paid 6% to 7% of the .co take, that number has soared to 81%, making .co — arguably Neustar’s registry crown jewel — a substantially less-attractive TLD to manage.

One assumes that the acquisition price would have fluctuated wildly based on the outcome of the .co renegotiation, but the GoDaddy/Neustar execs I talked to today didn’t want to talk about terms.

GoDaddy’s history with the registry side of the business has been changeable.

As far as ICANN contract is concerned, it is already a registry because it owns the .godaddy dot-brand. But that’s currently unused, with the registry functions outsourced to — cough — Neustar’s arch-rival Afilias.

Given Neustar’s religious devotion to the dot-brand concept, and the weirdness of using one of your primary competitors for a key function, one might expect both of those situations to change.

GoDaddy did also apply for .casa and .home back in 2012, but changed its mind and abandoned both bids fairly early in the process.

The sudden excitement about the registry business today begs the question of why GoDaddy didn’t buy Uniregistry’s registry business at the same time as it bought its secondary market and registrar earlier this year, but apparently it was not for sale.

Following the acquisition, Neustar is keeping its DNS resolution services and GoDaddy will continue to use them, so Neustar is not entirely out of the domain game, but it looks like the end of the road for Neustar as a brand I regularly report on.

The registry started life in 2000 as “NeuLevel”, a joint-venture between Neustar and Aussie registrar Melbourne IT formed to apply to ICANN for new gTLDs. It wanted .web, but got .biz, which now has about 1.7 million names under management, down from a 2014 peak of 2.7 million.

Amazon governments vow revenge for “illegal and unjust” ICANN decision on .amazon

The eight nations of the Amazon Cooperation Treaty Organization are unhappy that ICANN is giving .amazon to Amazon the retailer and have vowed to spread the word that ICANN has acted “illegally”.
ACTO secretary general Alexandra Moreira has written (pdf) to ICANN CEO Göran Marby to say: “We consider this decision an illegal and unjust expropriation of our culture, tradition, history and image before the world.”
She said that ACTO is now “committed to disseminating news of this situation to all relevant groups”, adding:

the international community should be aware of the very real consequences or ramifications (be it economic, environmental, cultural or related to questions of sovereignty) of granting exclusive access to the domain “.Amazon” to a single company.

The delegation of .amazon to Amazon the company, “jeopardizes the continued well-being of the societies that live there”, she wrote, with no elaboration.
Amazon was last month told it could have the gTLD after a years-long battle with ACTO and the ICANN Governmental Advisory Committee, which had advised ICANN by consensus to reject the .amazon application.
That consensus broke last year when the US government basically said enough was enough and refused to continue back the eight South American governments’ plight.
Under the terms of Amazon’s contract, it has to protect hundreds of culturally sensitive second-level domains of ACTO’s choosing, and to give each of its members a single domain that they can use to promote their portion of the Amazonian region.
ACTO had wanted more, basically demanding joint ownership of .amazon, which Amazon refused.
It remains to be seen whether ACTO’s reaction will be limited to harsh language, or whether its members will actively try to disrupt ICANN activities. The next GAC-ICANN face-to-face, set for Cancun in March, could be interesting viewing.

Amazon beats South America! Dot-brand contracts now signed

Amazon has prevailed in its seven-year battle to obtain the right to run .amazon as a branded top-level domain.
The company signed contracts for .amazon and the Chinese and Japanese translations on Thursday, despite years-long protests from the eight South American governments that comprise the Amazon Cooperation Treaty Organization.
This means the three gTLDs are likely to be entered into the DNS root system within a matter of weeks, after ICANN has conducted pre-delegation testing to make sure the registry’s technical systems are up to standard. The back-end is being provided by Neustar, so this is pretty much a formality.
.amazon is pretty much a done deal, in other words, and there’s pretty much nothing ACTO can do within the ICANN system to get the contract unsigned.
ACTO was of course angry about .amazon because it thinks the people of the Amazonia region have greater rights to the string than the American e-commerce giant.
It had managed to muster broad support against the gTLD applications from its Governmental Advisory Committee colleagues until the United States, represented on the GAC by the National Telecommunications Administration did a U-turn this November and withdrew its backing for the consensus.
This coincided with Amazon hiring David Redl, the most-recent former head of the NTIA, as a consultant.
The applications were originally rejected by ICANN due to a GAC objection in 2013.
But Amazon invoked ICANN’s Independent Review Process to challenge the decision and won in 2017, with the IRP panel ruling that ICANN had paid too much deference to unjustified GAC demands.
More recently, ACTO had been demanding shared control of .amazon, while Amazon had offered instead to protect cultural interests through a series of Public Interest Commitments in its registry agreements that would be enforceable by governments via the PIC Dispute Resolution Procedure.
This wasn’t enough for ACTO, and the GAC demanded that ICANN facilitate bilateral talks with Amazon to come to a mutually acceptable solution.
But these talks never really got underway, largely due to ACTO internal disputes during the political crisis in Venezuela this year, and eventually ICANN drew a line in the sand and approved the applications.
After rejecting an appeal from Colombia in September, ICANN quietly published Amazon’s proposed PICs (pdf) for public comment.
Only four comments were received during the month-long consultation.
As a personal aside, I’d been assured by ICANN several months ago that there would be a public announcement when the PICs were published, which I even promised you I would blog about.
There was no such announcement, so I feel like a bit of a gullible prick right now. It’s my own stupid fault for taking this on trust and not manually checking the .amazon application periodically for updates — I fucked up, so I apologize.
PICs commenters, including a former GAC vice-chair, also noticed this lack of transparency.
ACTO itself commented:

The proposed PIC does not attend to the Amazon Countries public policy interests and concerns. Besides not being the result of a mutually acceptable solution dully endorsed by our countries, it fails to adequately safeguard the Amazon cultural and natural heritage against the the risks of monopolization of a TLD inextricably associated with a geographic region and its populations.

Its comments were backed up, in pretty much identical language, by the Brazilian government and the Federal University of Rio de Janeiro.
Under the Amazon PICs, ACTO and its eight members each get a .amazon domain that they can use for their own web sites.
But these domains must either match the local ccTLD or “the names of indigenous peoples’ groups, and national symbols of the countries in the Amazonia region, and the specific terms OTCA, culture, heritage, forest, river, and rainforest, in English, Dutch, Portuguese, and Spanish”.
The ACTO nations also get to permanently block 1,500 domains that have the aforementioned cultural significance to the region.
The ACTO and Brazilian commenters don’t think this goes far enough.
But it’s what they’ve been given, so they’re stuck with it.

Three more dot-brands fizzle out. Total now 69, dudes

Three more dot-brand registries have opted to kill off their own gTLDs, bringing the total to date to 69.
The three self-terminating gTLDs, which all informed ICANN of their intentions in October and November, are: .工行 (.xn--estv75g), .nadex and .vistaprint.
The .vistaprint termination is perhaps of note, given that online printing company Vistaprint was one of the bidders in the 2016 auction of .web, due to its application for .webs being ruled confusingly similar.
It wound up paying just a dollar for that gTLD, due to the complexity of the .web contention set, but even that appears to have been a defensive move.
Since then, Vistaprint has also terminated its .vista contract, and my records show that it has been “in contracting” with ICANN for .webs since August 2016. Clearly, it’s in no rush to ever actually use the thing.
Also noteworthy, .工行 becomes only the second internationalized domain name gTLD to self-terminate, after Walmart called it quits on its pre-delegation contract for .一号店.
.工行 was owned by the state-owned Industrial and Commercial Bank of China (ICBC), which by many measures is the largest bank in the world. It had revenue of over $105 billion last year, so whatever factors drove its decision to dump its dot-brand, cost was not one of them.
Finally, Nadex, an online stock-trading platform, evidently couldn’t find a use for .nadex, so it’s jumped ship too.
Hundreds of dot-brands remain, collectively managing thousands of domains and web sites.

XYZ buys dormant gTLD from “pyramid scheme” operator

XYZ.com has bought another unused dot-brand to add to its portfolio.
It’s taken over the contract for .quest from original registry Quest ION Ltd, a subsidiary of a Hong Kong-based multi-level marketing company called QNet, according to ICANN records.
The gTLD will become the 13th that XYZ has a stake in, and the second dormant dot-brand that it’s acquired, after .monster.
.quest has been delegated for a few years, but its owner had no live domains beyond the mandatory NIC site.
I have to say I was unfamiliar with the company until today, but QNet’s Wikipedia page makes it sound sufficiently dodgy that I’m surprised nobody raised questions about its suitability to be a registry during the ICANN application process.
Its multi-level marketing business model has been described as a “pyramid scheme” or “Ponzi scheme” by various governments and has seen QNet hit by serious legal challenges in many countries on at least four continents.
Loads of its executives, including at least one listed on the gTLD application, have been arrested over the years.
But I guess that’s water under the bridge now, because XYZ has taken control of .quest.
There’s no word yet on a launch date.

Rival dot-brand bidders in settlement talks, seek auction delay

Two companies called Merck have managed to delay an ICANN auction for the .merck dot-brand top-level domain.
The two companies applied for .merck in 2012 and have spent the last almost eight years conducting a battle for the string using various ICANN conflict and appeals mechanisms.
Earlier this year, ICANN placed the two applications into a “last resort” auction, the proceeds of which would flow into ICANN’s own coffers.
Scheduled for July, it would have been the first time competing brands had fought for the same gTLD at ICANN auction.
But the two Mercks sought and received multiple extensions to the auction date, telling ICANN that they were in private settlement talks, until ICANN seemingly got bored and denied their last extension request.
The auction was set to go ahead in late October, but the two applicants managed to get another delay anyway by filing a Request for Reconsideration with ICANN, asking that the refusal to extend be overturned.
While the request is likely to be rejected, the mere fact of its filing means both applications continue to be in “On Hold” status while the request is processed, buying the companies at least a month of extra time to come to their own less-expensive resolution.
The two companies are US-based Merck Registry Holdings, Inc. and its former parent, Germany-based Merck KGaA. The German company is over 350 years old and split from its American subsidiary when it was seized by the US government during World War I. They’re both in the chemicals business.

Former NTIA chief Redl now working for Amazon

David Redl, the former head of the US National Telecommunications and Information Administration has joined Amazon as an internet governance advisor, I’ve learned.
I don’t know whether he’s taken a full-time job or is a contractor, but he’s been spotted palling around with Amazon folk at ICANN 66 in Montreal and knowledgeable sources tell me he’s definitely on the payroll.
Redl was assistant secretary at the NTIA until May, when he was reportedly asked to resign over a wireless spectrum issue unrelated to the domain names after just 18 months on the job.
His private sector career prior to NTIA was in the wireless space. I don’t believe he’s ever been employed in the domain industry before.
NTIA is of course the US agency responsible for participating in all matters ICANN, including the ongoing fight over Amazon’s application for the .amazon brand gTLD.
The proposed dot-brand has been in limbo for many years due to the objections of the eight nations of the Amazon Cooperation Treaty Organization, which claims cultural rights to the string.
ACTO nations on ICANN’s Governmental Advisory Committee want ICANN to force Amazon back to the negotiating table, to give them more power over the TLD after it launches.
But the NTIA rep on the GAC indicated at the weekend that the US would block any GAC calls for .amazon to be delayed any longer.
As I type these words, the GAC is debating precisely what it should say to ICANN regarding .amazon in its Montreal communique, using competing draft texts submitted by the US and European Commission, and it’s not looking great for ACTO.
As I blogged earlier in the week, another NTIA official, former GAC rep Ashley Heineman, has accepted a job at GoDaddy.
UPDATE: As a commenter points out, Redl last year criticized the revolving door between ICANN and the domain name industry, shortly after Akram Atallah joined Donuts.

America has Amazon’s back in gTLD fight at ICANN 66

The United States looks set to stand in the way of government attempts to further delay Amazon’s application for .amazon.
The US Governmental Advisory Committee representative, Vernita Harris, said today that the US “does not support further GAC advice on the .amazon issue” and that ICANN is well within its rights to move forward with Amazon’s controversial gTLD applications.
She spoke after a lengthy intervention from Brazilian rep Ambassador Achilles Zaluar Neto, who said South American nations view the contested string as their “birthright” and said ICANN is allowing Amazon “to run roughshod over the concerns and the cultural heritage of eight nations and tens of millions of people”.
It was the opening exchange in would could prove to be a fractious war of words at ICANN 66 in Montreal, which formally opens tomorrow.
The .amazon applications have been controversial because the eight countries in the Amazon Cooperation Treaty Organization believe their unwritten cultural rights to the word outweigh Amazon’s trademark rights.
Forced to the negotiating table by ICANN last year, the two sides each posed their own sets of ideas about how the gTLD could be managed in such a way as to protect culturally sensitive terms at the second-level, and taking ACTO’s views into account.
But an ICANN-imposed deadline for talks to conclude in April was missed, largely as a result of the ongoing Venezuela crisis, which caused friction between the ACTO governments.
But today, Brazil said that ACTO is ready and willing to get back to the negotiating table asked that ICANN reopen these talks with an impartial mediator at the helm.
As things stand, Amazon is poised to get .amazon approved with a bunch of Public Interest Commitments in its registry contract that were written by Amazon without ACTO’s input.
Neto said that he believed a “win-win” deal could be found, which “would provide a positive impetus for internet governance instead of discrediting it”. He threatened to raise the issue at the Internet Governance Forum next month.
ICANN’s failure to reopen talks “would set a bad precedent and reflect badly on the current state of internet governance, including its ability to establish a balance between private interests and public policy concerns”, he said
But the US rallied to Amazon’s defense. Harris said:

The United States does not support further GAC advice on the .amazon issue. Any further questions from the GAC to the Board on this matter we believe is unwarranted… We are unaware of any international consensus that recognizes inherent governmental rights and geographic names. Discussions regarding protections of geographic names is the responsibility of other forums and therefore should be discussed and those relevant and appropriate forums. Contrary to statements made by others, it is the position of the United States that the Board’s various decisions authorizing ICANN to move forward with processing the.application are consistent with all relevant GAC advice. The United States therefore does not support further intervention that effectively works to prevent or delay the delegation of .amazon and we believe we are not supportive and we do not believe that it’s required.

This is a bit of a reversal from the US position in 2013.
Back then, the GAC wanted to issue consensus advice that ICANN should reject .amazon, but the US, protecting one of its largest companies, stood in the way of full consensus until, in the wake of the Snowden revelations, the US decided instead to abstain, apparently to appease an increasingly angry Brazil.
It was that decision that opened the door to the six more years of legal wrangling and delay that .amazon has been subject to.
With the US statement today, it seems that the GAC will be unlikely to be able to issue strong, full-consensus advice that will delay .amazon further, when it drafts its Montreal communique later in the week.
The only other GAC member speaking today to support the US position was Israel, whose rep said “since it is an ongoing issue for seven years, we don’t believe that there is a need for further delay”.
Several government reps — from China, Switzerland, Portugal, Belgium and the European Commission — spoke in favor of Brazil’s view that ICANN should allow ACTO and Amazon back to the negotiating table.
The GAC is almost certain to say something about .amazon in its communique, due to drop Wednesday, but the ICANN board of directors does not currently have an Amazon-related item on its Montreal agenda.
UPDATE: The originally published version of this story incorrectly identified the US GAC representative as Ashley Heineman, who is listed on the GAC’s web site as the US representative. In fact, the speaker was Vernita Harris, acting associate administrator at the US National Telecommunications and Information Administration. Had I been watching the meeting, rather that just listening to it, this would have been readily apparent to me. My apologies to Ms Heineman and Ms Harris for the error.

Hindu god smites Chrysler gTLD

Car-maker Chrysler has withdrawn its application for the .ram dot-brand gTLD more than six years after receiving a government objection on religious grounds.
Ram is a brand of pickup trucks manufactured by Chrysler, but it’s also a variant spelling of Rama, an important deity in the Hindu pantheon.
Back in 2013, ICANN’s Governmental Advisory Committee forwarded an objection from majority-Hindu India, later saying: “The application for .ram is a matter of extreme sensitivity for the Government of India on political and religious considerations.”
In a 19-page response (pdf), Chrysler said that Ram vehicles had been around for 75 years without offending Hindus, and that .ram was to be a restricted dot-brand that could not be used by third parties to post offensive content.
The objection appeared at a time when the GAC was not obliged to show its thinking and often deliberately obfuscated its advice. But ICANN placed .ram on hold anyway, where it has remained ever since.
Over the intervening time, Chrysler has rethought its dot-brand strategy, and last month called on ICANN to cancel five of the six gTLDs it already owns (but does not use) — .chrysler, .dodge, .mopar, .srt and .uconnect.
It’s still contracted to run .jeep, weirdly.