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As .spa launches, former partner pisses in the champagne

Kevin Murphy, May 25, 2021, Domain Registries

The world’s newest gTLD is due to hit its landrush launch phase tomorrow, but a disgruntled former business partner is warning that it plans to get all the registrations cancelled.

DotPH, the ccTLD registry for the Philippines, reckons it is owed half of the equity in .spa under a 2012 agreement, and has been warning registrars that to sell .spa domains would be to breach three injunctions it has secured through a Hong Kong court.

The latest such injunction (pdf), dated April 23, in part prevents the registry, Asia Spa and Wellness Promotion Council:

(whether directly or indirectly and whether by itself or via its agents or service providers (viz. registrars and registry backend) (“Agents/Service Providers”), employees and/or associated corporate entities whatsoever) be restrained from entering into any agreements for the sale, lease or other use or disposal of any .spa sub-domains (“Launch Agreements”) and/or causing, procuring or giving consent to the Agents/Service Providers to enter into any Launch Agreements

The injunctions are being interpreted differently by DotPH and ASWPC.

DotPH told participating registrars — there are at least 36 of them, according to the ASWPC web site — in a May 12 letter (pdf) from its lawyers:

ASWPC must stop selling .spa domains – by itself, or by or through its agents including Registrars… ASWPC cannot allow or permit any of its Registrars to sell any .spa domains.

It goes on to say:

Our clients will seek orders to cancel all registrations accepted by the .Spa Registry in breach of the Court order. You should alert any existing registrants, and any intending registrants of the Court order, and of the likelihood that any .spa domains registered are likely to be cancelled – unless they have a contract dating before 19 April 2021 requiring ASWPC, or you, to register their domains.

ASWPC’s interpretation appears to differ, in that it does not believe registrars are bound by the injunction, due to the chain of contracts between registry and registrant.

DotPH says that the Hong Kong High Court is next due to consider the case in August.

The .spa landrush phase is due to run from 1600 UTC May 26 until October 1. It’s ostensibly a community-based gTLD, but has eligibility policies that make it open to essentially anyone.

Angry investor sues for 30% of new .spa gTLD

Kevin Murphy, October 28, 2020, Domain Registries

Barely had the new gTLD .spa made it into the DNS root than it got sued by a company that claims it was stiffed out of a 30% stake in the domain.

Malaysia-based Asia Spa and Wellness Promotion Council, the newly minted registry, is being sued in Hong Kong by DotPH, the company that runs the Philippines ccTLD, .ph, over an eight-year-old investment deal DotPH says is being ignored.

It’s also named as defendants .asia registry DotAsia, DotAsia subsidiary Namesphere, and several DotAsia directors.

DotPH claims in its lawsuit that its CEO, Joel Disini, got together with DotAsia CEO Edmon Chung in early 2012 to come up with a deal whereby ownership of .spa, should its application be successful, would be split three ways.

ASWPC would hold half the shares, Namesphere 20%, and DotPH the remaining 30%, according to the complaint. DotPH claims it paid $60,000 for its stake in April 2012.

Now it claims that these shares were never formally issued, and it wants the Hong Kong court to force Namesphere to hand them over and force the original three-way ownership structure originally agreed.

But it turns out that DotAsia seems to have abandoned .spa anyway. Its board of directors a year ago voted to give ASWPC “sole rights” to the gTLD, enabling it to concentrate on .asia.

Disini, who was a member of the board at the time, claims he was only emailed about the vote a day before the meeting and did not see the email until it was too late.

He told DI: “the board of dotAsia moved to give away DotPH’s 30% equity in SPA”. He’s not happy about it. He reckons .spa could easily be a $2 million-a-year business.

The suit was filed October 19. You can read it here (pdf).

I’ve yet to receive a response to my request for comment from Chung, and will of course provide an update should he get back to me.