.jobs takes ICANN to arbitration

Employ Media, manager of the .jobs top-level domain, has become the first registry operator to take ICANN to arbitration to fight off a shut-down threat.
The company in the last hour said it has filed a Request for Arbitration with the International Chamber of Commerce in Paris, after informal efforts to reach agreement with ICANN broke down.
Employ Media CEO Tom Embrescia said in a statement:

This filing was necessary to ward off ICANN’s unwarranted and unprecedented threat of contract termination. That action created immediate uncertainty about the .JOBS TLD on the Internet and caused significant duress on our business.

ICANN had threatened to terminate the .jobs registry agreement – which I believe is pretty much the only option available to it in the case of a perceived breach – in February.
The filing means .jobs can operate as normal until the situation is resolved.
The dispute is essentially about Universe.jobs, a jobs listing service operated by the DirectEmployers Association using tens of thousands of generic .jobs domain names granted to it by Employ Media.
The .JOBS Charter Compliance Coalition, made up of independent jobs boards, complained to ICANN that Universe.jobs went against the spirit and letter of the original .jobs Charter.
Employ Media says that Universe.jobs was essentially authorized when ICANN approved its Phase Allocation process for handing out generic domains last year.
Employ Media is represented by lawyers from Crowell & Moring, some of the same individuals responsible for ICM Registry’s defeat of ICANN at its Independent Review Panel last year.
The request for arbitration can be read here in PDF format.

War of words over .jobs “breach” claims

Employ Media and ICANN have come to blows again over ICANN’s threat to shut down the .jobs registry for allegedly selling domain names in breach of its Charter.
Both parties are currently talking through their outside counsel, and the possibility of litigation has raised its head in public for the first time.
In the latest set of correspondence published by ICANN, Employ Media sharply (and ironically) criticized ICANN’s decision to publish an earlier set of correspondence on its web site.
The earlier email exchange, which I blogged about here, revealed that ICANN had asked the company to amend its Charter.
Two days later, Employ Media’s lawyers wrote to ICANN’s lawyers to express disappointment with the decision to post these emails, questioning ICANN’s commitment to good faith negotiations.

In light of this apparent bad faith action on ICANN’s part, Employ Media is questioning whether any hope remains for a full and fair exchange of ideas regarding a resolution of its dispute with ICANN.
…
[ICANN has] substantially hindered Employ Media’s ability to engage in productive and honest negotiations: all future communications will necessarily be more guarded and less open, given the expectation that they will be published to a larger audience

ICANN and Employ Media are currently in a “cooperative engagement” process – a less formal way to resolve their dispute than heading to an arbitration forum or court.
ICANN claims the registry is breaking its Charter commitments to the human resources industry by allocating tens of thousands of .jobs domain names to the Universe.jobs project, which is run by a partner, the DirectEmployers Association.
Independent jobs boards, represented by the the .JOBS Charter Compliance Coalition, believe that Universe.jobs is unfair and not compliant with Employ Media’s own policies.
Employ Media’s latest letter (pdf), which it demanded ICANN publish, drops hints about some of the behind-the-scenes talks (with my emphasis):

Had we known that any part of our communication was to be published, we would have certainly memorialized, in writing, your statements to us that ICANN very much wants to avoid an arbitration over this dispute, and that ICANN was therefore willing to agree to a process for approving a Charter amendment in order to do so. We would also have memorialized our positions, including our position that a Charter amendment is neither necessary nor desirable, but that we were considering acceding to ICANN’s request solely in the hopes of avoiding arbitration

ICANN’s lawyers’ response (pdf), sent April 26, says ICANN was merely fulfilling its transparency obligations by informing the community about the extension of the talks deadline.
They also said that the Employ Media should stop pretending to be surprised that ICANN issued the breach notice and is now asking for a Charter amendment.
ICANN further accused the registry’s lawyers of legal “posturing” which was “seemingly geared solely towards use in future litigation”.
Employ Media was due to deliver a proposed amendment to its Charter by yesterday. ICANN has said it will not take any further actions based on its breach notice until May 6.

Registry avoids .jobs shut-down

Employ Media has come to a deal with ICANN to avoid having its .jobs registry contract revoked, at least for the next few weeks.
Following discussions with ICANN’s lawyers, the company plans to amend its Charter, and has agreed to stop allocating non-company-name .jobs domain names until May 6.
ICANN threatened to terminate the .jobs registry deal in February, after Employ Media started allocating thousands of premium vocational and geographic domains to a partner, the DirectEmployers Association, to act as entry points for Universe.jobs.
In a breach notice (pdf), ICANN said that this use of .jobs domains “is inconsistent with the purpose stated in the .JOBS Charter and represented to the ICANN community”.
The .JOBS Charter ostensibly restricts registrations to human resources professionals, but in practice there’s a great big loophole that allows anybody to cheaply qualify for a domain.
In February, ICANN general counsel John Jeffrey told Employ Media:

By not establishing any meaningful restrictions on who may register second level registrations in the .JOBS TLD, Employ Media put in operation a TLD where anyone can register names, thus defeating the purpose for which the sponsored TLD came into existence.

In its response, the registry noted that it had followed ICANN’s proper procedures for introducing new “registry services”, such as the Phase Allocation Plan that allowed it to seed Universe.jobs.
It accused ICANN of bending to the wishes of the .JOBS Charter Compliance Coalition, a group of independent jobs sites operators that had objected to Universe.jobs.
Employ Media’s chief executive Brian Johnson wrote:

This is a sad day for both the Internet community and the international human resource management community. ICANN should be promoting competition and working cooperatively with its contractual parties, but instead is choosing to ignore the plain meaning of its contract with Employ Media in order to appease some apparently well‐financed and well‐connected provocateurs.

Since that letter (pdf) was sent, ICANN and the registry have been engaged in private discussions aimed at resolving the conflict, as allowed by the registry agreement.
In the latest set of correspondence, exchanged over the last week, it has emerged that ICANN has agreed to give Employ Media time to remedy the situation by amending its Charter.
The letters do not reveal whether the amendments will allow Employ Media to continue to offer Universe.jobs or not. I suspect they will.
The amendments may require the company to consult with its nominal sponsor, the Society for Human Resource Management.
ICANN wants a proposed Charter amendment on its desk by May 2. It has agreed to take no further action related to the breach of contract allegations until May 6.

Registry objects to .jobs shutdown threat

Employ Media will appeal ICANN’s threatened termination of its .jobs registry contract.
The company released a statement (pdf) late yesterday, following ICANN’s unprecedented threat, in which it said ICANN’s claims are “utterly without merit”.
“We view the substance of this notice to be a surprising reversal of position and contradictory to prior decisions issued by its Board of Directors,” the company said.
ICANN yesterday gave Employ Media until the end of the month to cancel its agreement to provide 40,000 .jobs domains to the DirectEmployers Association for its Universe.jobs employment board.
The organization said the allocation of the domains for non-human-resources purposes went against the letter, spirit and intent of the registry’s contract and Charter.
It essentially boils down to a claim that Employ Media hacked its contract to allow it to start making money on names beyond the limited scope of its original “sponsored” community TLD.
The .jobs TLD was originally pitched as a space for corporate HR pages, not independent jobs sites. With Universe.jobs, half of the namespace is an independent jobs site. Employ Media is believed to have a revenue-sharing arrangement with DirectEmployers.
The ICANN breach notice was welcomed by the .JOBS Charter Compliance Coalition, the ad hoc trade group formed by major commercial jobs sites to fight Universe.jobs.
Peter Weddle, executive director of the International Association of Employment Web Sites, said in a press release:

the Dot Jobs Universe was not an innovation but rather an unprecedented attempt by a registry operator to misappropriate an entire TLD for itself and its alliance partner in blatant disregard of ICANN’s rules.

Employ Media disagrees, of course, saying that Universe.jobs came about as a result of its “Phased Allocation” liberalization plan, which was approved by ICANN’s Registry Services Evaluation Process and then survived a Reconsideration Request filed by the Coalition.
The company said: “it is imperative for registry operators to have predictability in the performance of duties and that ICANN has a responsibility to honor its commitments with contracted parties.”
Its registry contract contains a dispute resolution procedure that first calls for bilateral talks and, failing agreement, arbitration via the International Chamber of Commerce.

ICANN threatens to shut down .jobs

In an unprecedented move, ICANN has threatened to cancel a top-level domain registry operator’s contract.
Employ Media, the .jobs registry, faces losing its TLD if it does not shut down Universe.jobs, the controversial jobs board operated by its partner, the DirectEmployers Association.
In a letter to the company (pdf), ICANN general counsel John Jeffrey wrote:

By not establishing any meaningful restrictions on who may register second level registrations in the .JOBS TLD, Employ Media put in operation a TLD where anyone can register names, thus defeating the purpose for which the sponsored TLD came into existence.
…
We are calling on Employ Media to take immediate actions to implement restricted registration policies that support the purpose for which the .JOBS top-level domain was established, and to cancel registrations and/or disavow themselves of the benefits of any registrations that are owned by related parties, if any.

The move comes following a complaint filed by the so-called .JOBS Charter Compliance Coalition, made up of jobs board such as Monster.com and CollegeRecruiter.com.
They’re annoyed that the registry licensed 40,000 premium geographic and vocational .jobs domains to DirectEmployers for Universe.jobs, which has started to compete with them.
Jeffrey wrote:

It appears that Employ Media and SHRM, through the Direct Employers Association, intend to use the .JOBS TLD primarily to compete with other internet job boards. Such use is inconsistent with the purpose stated in the .JOBS Charter and represented to the ICANN community.

The deal came as a result of a change to the .jobs registry contract, made through ICANN’s Registry Services Evaluation Process, that allowed Employ Media to lift a rule that restricted registered domain names only to the names of companies.
What the RSEP didn’t do was change the .jobs Charter, which restricts “who” may register .jobs domains. Yet, weirdly, the Charter is partly the basis for ICANN’s threat.
Jeffrey refers to the Charter restrictions, which are easily circumvented, as “specious” and “do not serve the international human resource management community”.
This is the Charter that ICANN approved back in 2005, and which hasn’t changed since, remember.
To come back into compliance, ICANN wants Employ Media to shut down Universe.jobs and get back to selling company-name registrations.
I think it’s likely Employ Media will appeal, possibly by taking the case to arbitration, as its contract allows.

Trojan TLDs to get more scrutiny

ICANN has proposed a new policy for its new top-level domain program that would make it harder for community-based TLDs to liberalize their registration policies after they launch.
The idea is to prevent a replay of the recent .jobs controversy, in which registry Employ Media substantially altered its business model after failing to sell enough .jobs domains.
Because the Applicant Guidebook gives “community” TLD applications an opportunity to avoid a potentially costly auction if their TLD is contested by multiple applicants, there’s a risk of gaming.
Under the current rules, a company could win a contested TLD without paying big bucks, by promising to restrict it to a narrowly defined community of registrants.
It could later attempt to change its rules via ICANN’s Registry Services Evaluation Process to broaden or limit its potential customer base, potentially harming others in the community.
I call these Trojan TLDs.
Employ Media, for example, restricted .jobs domains to the names of companies, but now has licensed thousands of geographical and vocational generic names to a partner, over the objections of major jobs search engines such as Monster.com.
Under ICANN’s proposed policies (pdf), community TLDs would still have to pass through the RSEP, but they’d also be subject to a review under the Community Priority Evaluation.
The CPE is already in the Guidebook. It will be used to score applications based on the strength of community support. To avoid an auction, you need to score 14 out of 16 points.
ICANN now suggests that the CPE criteria could also be used to evaluate what it calls a “Community gTLD Change proposal” made by a TLD registry post-launch.
The new score would be used to determine whether to accept or reject the change:

If the sum of all identified score changes for the first three CPE criteria is zero or positive, the recommendation would be to accept the proposal, regardless of any relevant opposition identified. If the sum is minus one, the recommendation would be to accept the proposal, unless there is relevant opposition from a group of non-negligible size, in which case the recommendation would be to reject the proposal. If the sum is minus two or lower, the recommendation would be to reject the proposal.

The ICANN board would be able to deviate from the CPE recommendation, as long as it stated its reasons for doing so, and the registry would have the right to appeal that decision under the existing Reconsideration Request process.
These rules would apply to all new TLDs that designate themselves as community-based, apparently regardless of whether they successfully passed the CPE during the application process.
The rules are presented as a “discussion draft”, but I don’t think they’re going to be opened to official public comment.

Coalition complains to ICANN about Universe.jobs

The .JOBS Charter Compliance Coalition thinks Employ Media is violating its own policies by allowing Universe.jobs to be launched, and has complained to ICANN.
Coalition chief John Bell said the group, which comprises jobs sites such as Monster.com and CareerBuilder.com, “filed a formal notice” with ICANN’s compliance department December 17.
That was just one week after ICANN’s board of directors, at the Cartagena meeting, passed a resolution calling for ICANN staff to “closely monitor” the registry for charter violations.
“We are confident that ICANN is taking our claims seriously and we are looking forward to a favorable decision,” Bell said.
Universe.jobs was turned on by the DirectEmployers Association last week, using hundreds of generic domains, after ICANN give the registry the all-clear to start selling non-company-name domains.
The issue is whether this independent jobs board, which is fed traffic from domains such as usa.jobs, texas.jobs and marketing.jobs, is a permissible use of .jobs domains.
The Coalition thinks it isn’t. Employ Media thinks it is.
The Coalition has also apparently complained about NativeAmerican.jobs, another employer-independent jobs site, on behalf of NativeAmericanJobs.com.

Universe.jobs launches with hundreds of premium domains

The controversial Universe.jobs project has soft-launched, offering jobs listings at hundreds of premium geographic and vocational .jobs domains.
Country and state domains such as usa.jobs, gbr.jobs and texas.jobs, as well as industry domains such as firefighter.jobs and journalist.jobs are live and resolving.
If you visit, say, usa.jobs or rus.jobs, you’ll be presented with a bunch of job listings from the USA or Russia. If you visit retail.jobs, you’ll be bounced to usa.jobs/retail (at least, I was).
Even combinations, such as texas.nursing.jobs, seem to work.
I’ve no idea how many domains have been activated this way, but since all the geographics seem to be active I’m guessing it’s at least several hundred at the second-level.
The site, which is presented as a service of the DirectEmployers Association’s National Labor Exchange, currently says it’s in beta.
But the big questions now are: is this legit, and who owns the domains?
Employ Media, the .jobs registry, had to fight ICANN and mainstream commercial jobs boards in order to drop the contractual restrictions that previously limited .jobs to company names.
But some argued that, despite the relaxation of the string restrictions, employer-independent jobs sites such as Universe.jobs would still be verboten under Employ Media’s charter.
The .JOBS Charter Compliance Coalition, made up of newspaper associations and boards such as Monster.com, tried to get ICANN to reconsider its decision, but failed (kinda).
While the Coalition’s Reconsideration Request was unsuccessful, ICANN did say it will start to monitor Employ Media for compliance with its charter more closely.
More interestingly, perhaps, during the ICANN investigation Employ Media abruptly dropped plans to create a “self-managed” class of domains – names registered to itself, but “used” by third parties such as DirectEmployers.
Did it make good on its promise? It’s difficult to be certain, because the Whois for the many of the domains in question seems to be broken.
I’ve been able to establish that some older domains, such as usa.jobs and nursing.jobs, currently belong to DirectEmployers, but trying to figure out who owns some of the more recently registered geographical .jobs names is an excruciating process.
The Whois link buried at the bottom of the official Employ Media web site directs you to the Whois service provided by VeriSign (which runs the back-end registry infrastructure for .jobs).
VeriSign’s tool does not return the name of the registrant, only details such as the registration date, associated name servers, and the URL of the appropriate registrar’s Whois server.
In the case of all these geo domains, the registrar appears to be NameShare. The Whois server URL given by VeriSign points to a second tool, at whois.nameshare.com, that doesn’t work.
If you try to query, for example, usa.jobs (after filling out the Captcha) you get this message:

[r3] Error Message: Unsupported TLD .jobs

If you visit the NameShare homepage, you will be able to find a third .jobs Whois tool, at whois-jobs.nameshare.com/whois/. This doesn’t seem to work properly either.
This tool will tell you that the domain usa.jobs belongs to DirectEmployers.
However, almost every other Universe.jobs-related domain that I queried returned a “not found” message, even when the domain resolves and the VeriSign tools says it’s been registered for over a month.
I’m not sure what’s going on. Some kind of technical problem, no doubt.

ICANN to tackle Trojan TLDs

When failing community-based top-level domain registries attempt to change their business models, ICANN may in future have a new way of dealing with them.
That seems to be a possible result of Employ Media’s controversial .jobs liberalization plans and the subsequent Reconsideration Request, which I blogged about last week.
The .jobs reconsideration revealed that not only are Reconsideration Requests a rubbish way to appeal ICANN’s decisions, but also that the Registry Services Evaluation Process is often a rubbish way to handle major contract changes.
The RSEP was introduced back in 2005 in belated response to a couple of controversial “services” that VeriSign, testing boundaries, had planned to unilaterally introduce in the .com registry, notably Site Finder and the Waiting List Service.
But since then the process has been used as a general-purpose tool for requesting changes to registry contracts, even when it’s debatable whether the changes fit the definition of “registry services”.
For example, when .jobs launched five years ago, it was put into Employ Media’s contract that the TLD was designed for companies to register their brands and list their jobs, and that’s all.
But that model didn’t work. It’s one of the least successful TLDs out there.
So the registry decided it could make more money with general purpose jobs boards, using generic .jobs domains. But it did not necessarily want to let existing independent jobs sites take part.
For want of a better term, I’ll call this an example of a “Trojan” TLD – a registry that gets its attractive TLD string approved by ICANN after making a certain set of promises, then later decides to move the goal posts to broaden its market, potentially disenfranchising others.
I’ve no reason to believe it was a premeditated strategy in Employ Media’s case, but precedent has now been set for future TLD applicants to use “community” as a foot in the door for broader aspirations.
To take a stupid, extreme, unrealistic example, imagine that ICM Registry’s .xxx flops badly. Should the company be allowed to start selling all the good .xxx domains to churches and other anti-porn campaigners? That would be a pretty big departure from its promises.
There were similar concerns, although not nearly as loudly expressed, with regards to Telnic’s recent contract changes, which will allow it to start registering phone number domain names in .tel, despite years of promises that it would not.
Go Daddy’s policy chief Tim Ruiz objected to the proposal on the grounds that it would be “unfair to other [.tel] applicants and potential applicants to allow an sTLD to change its purpose after the fact.”
The ICANN Board Governance Committee, which handles Reconsideration Requests, acknowledged these problems in its decision on .jobs in Cartagena (pdf), concluding that it:

thinks that the Board should address the need for a process to evaluate amendments that may have the effect of changing, or seeking to change, an sTLD Charter or Stated Purpose of a sponsored, restricted or community-based TLD.

The BGC seems to be saying that the RSEP is not up to the task of dealing with community-based TLDs that later decide their business plans are not the money-spinners they had hoped and want to loosen up their agreed community restrictions.
The committee went on to say that:

Because such a process may impact gTLDs greatly and is a policy issue, the GNSO is the natural starting point for evaluating such a process. We therefore further recommend that the Board direct the CEO to create a briefing paper for the GNSO to consider on this matter, and for the GNSO to determine whether a policy development process should be commenced.

So the GNSO will soon have to decide whether new policies are needed to deal with broad contract changes at failing community TLDs.
Any new policies would, I believe, be binding on community TLDs approved under the new gTLD program as well as older sTLDs, so it will be an interesting policy track to follow.

Did .jobs win or lose in Cartagena?

Employ Media, the .jobs registry, had a victory in Cartagena last week, when the ICANN board voted not to overturn its August decision to allow .jobs to relax its registration policies.
The company will now be able to continue with its RFP process, allocate premium generic .jobs domains to its partners, auction them, and generally liberalize the namespace.
But the registry may not have got everything it wanted.
For at least a year, Employ Media, along with the DirectEmployers Association, has been pushing the idea of creating a massive free jobs board called universe.jobs.
The site would be fed traffic from thousands of premium geographic domains such as newyork.jobs, texas.jobs and canada.jobs, as well as vocational names such as nursing.jobs and sales.jobs.
Because Employ Media was previously only allowed to sell domains that corresponded to the names of companies, such as ibm.jobs and walmart.jobs, it asked ICANN to change its contract to allow these new classes of generic names to be registered.
The registry submitted a Registry Services Evaluation Process request, which was approved by the ICANN board in early August. The contract was amended shortly thereafter.
A few weeks later, a group of jobs sites including Monster.com, calling itself the .JOBS Charter Compliance Coalition, filed a Reconsideration Request, asking ICANN to reverse its decision.
The Coalition was concerned that the contract changes would enable universe.jobs, creating a potentially huge competitor with an unfair SEO advantage, while continuing to prohibit independent jobs sites from registering .jobs domains.
While the .jobs contract had been amended, the .Jobs Charter, which restricts those who can register .jobs domains to members of the human resources community, was not.
This potentially presented a problem for universe.jobs, as DirectEmployers may not have qualified to be a registrant under the charter.
But Employ Media’s RSEP proposal talked about creating a “self-managed class” of domains – the domains would belong to the registry but would be shared with third parties such as DirectEmployers.
That would have created an interesting precedent – registries would be able to keep hold of premium generic domain names and allow them to be “used” by only partner companies that agree to enter into revenue-sharing agreements.
But that “implementation method was withdrawn” by Employ Media after the ICANN Board Governance Committee asked about it as part of its Reconsideration Request investigation.
The BGC, while rejecting the Coalition’s request (pdf), also asked ICANN’s compliance department to keep a close eye on Employ Media, to make sure it does not overstep the bounds of its charter:

the BGC recommends that the Board direct the CEO, and General Counsel and Secretary, to ensure that ICANN’s Contractual Compliance Department closely monitor Employ Media’s compliance with its Charter

Even though its Reconsideration Request was denied, the .JOBS Charter Compliance Coalition counted both of these developments as a big win for its campaign, saying in a press release:

Given the Board’s commitment to aggressively monitor Employ Media’s implementation of the Phased Allocation Program, the Coalition is highly confident that ICANN will not permit Employ Media to register domain names to “independent job site operators” for purposes of operating job sites.

So does this mean that universe.jobs is dead?
Apparently not. Talk in the halls at the ICANN Cartagena meeting last week leads me to believe that the registry has figured out a way to launch the service anyway.
And DirectEmployers this Monday published a white paper (pdf), dated January 2011, which says universe.jobs will launch early next year.
DirectEmployers declined to immediately comment on its plans when I inquired this week, and the white paper sheds little light on the technicalities of the plan.
Judging from a promotion currently being run by EnCirca, a .jobs registrar, it seems that companies will only be able to list their jobs on universe.jobs if they own their own companyname.jobs domain.
EnCirca’s offer, which alludes to the .jobs sponsor, the Society for Human Resources Management, a “SHRM special“, says:

NEWS ALERT: December 13, 2010: ICANN has RE-CONFIRMED the .Jobs registry’s plan to allocate generic occupational and geographic-related .jobs domain names. Register your companyname.jobs to be part of this new initiative.

It will be interesting to see how domain allocations are ultimately handled.
While Employ Media’s request for proposals is ostensibly open, it looks a little bit like a smokescreen for its plan to hand big chunks of the .jobs namespace to the universe.jobs project.
But who will be the registrant of these domains? And will the allocations violate the .jobs charter? Will the registry carry on with its plan to create new “self-managed” class of domain names?
I think we’re going to have to wait for the new year to find out.