Go Daddy proposes fake pharma site shutdown body

A cross-industry body that will make it easier for web sites selling fake drugs to be shut down is forming in the US, led by Google and Go Daddy.
The idea for the currently nameless organization was announced yesterday following a series of meetings between the internet industry and White House officials.
The group will “start taking voluntary action against illegal Internet pharmacies” which will include stopping payment processing and shutting down web sites.
The domain name business is represented by the three biggest US registrars – Go Daddy, eNom and Network Solutions – as well as Neustar (.biz, .us, etc) on the registry side.
Surprisingly, VeriSign (.com) does not appear to be involved currently.
Other members include the major credit card companies – American Express, Visa and Mastercard – as well as PayPal and search engines Google, Microsoft and Yahoo.
According to a statement provided by Neustar:

GoDaddy and Google took the lead on proposing the formation of a private sector 501(c)(3) non-profit organization that would be dedicated to promoting information sharing, education, and more efficient law enforcement of rogue internet pharmacies.

It’s early days, so there are no specifics as yet as to how the organization will function, such as under what circumstances it will take down sites.
There’s no specific mention of domain names being turned off or seized, although reading between the lines that may be part of the plan.
There’s substantial debate in the US as to what kinds of pharmaceuticals sites constitute a risk to health and consumer protection.
While many sites do sell worthless or potentially harmful medications, others are overseas companies selling genuine pharma cheaply to Americans, who often pay a stiff premium for their drugs.
The organization will do more than just shut down sites, however.
It also proposes an expansion to white lists of genuine pharmacies such as the National Association of Boards of Pharmacies’ Verified Internet Pharmacy Practice Sites (VIPPS).
And it will promote consumer education about the “dangers” of shopping for drugs online, as well as sharing information to stop the genuine bad guys “forum shopping” for places to host their sites.
This is what the statement says about enforcement:

The organization’s members agree to share information with law enforcement about unlawful Internet pharmacies where appropriate, accept information about Internet pharmacies operating illegally, and take voluntary enforcement action (stop payment, shut down the site, etc.) where appropriate.

While taking down sites that are selling genuinely harmful pills is undoubtedly a Good Thing, I suspect it is unlikely to go down well in that sector of the internet community concerned with the US government’s increasing role in removing content from the internet.

Go Daddy plans Premium DNS service

Go Daddy is to launch a Premium DNS service that will include managed DNSSEC security, the company revealed during sessions at the ICANN meeting in Cartagena last week.
Go Daddy customers can currently get a brief overview of the forthcoming service by logging into their domain manager and finding the Premium DNS “Coming Soon” link, or looking here.
During a session on DNSSEC in Colombia last week, Go Daddy’s James Bladel laid out more detail on the service in a presentation (PDF) which contains screenshots of the interface.
The company started supporting DNSSEC for free on certain TLDs in the summer – it currently supports .net, .biz, .eu, org and .us – but it requires users to manually generate and manage cryptographic keys.
That’s beyond the ken of most domain name owners, so the registrar is adding a premium “set it and forget it” service which will see Go Daddy manage the complexities of DNSSEC.
Bladel said of the service:

it’s as simple as having a DNSSEC on/off switch. So customers who have no particular interest in the behind- the-scenes technology of DNSSEC can simply flip that switch and then enjoy the benefits of a secured domain name.

The DNSSEC standard helps prevent domains being hijacked through cache poisoning attacks by signing each domain’s zone with a validatable cryptographic key. The technology will be available for .com domains early next year.
It’s by no means free or easy for registrars to implement, and there’s been little demand for the technology among registrants, so I’ve been wondering how registrars planned to monetize it.
Now we know how Go Daddy at least plans to do so – the Premium DNS service will have other benefits beyond DNSSEC, which could spur adoption through osmosis.
The service will also include DNS up-time guarantees of 99.999%, vanity name servers, log tracking, and several other perks.
The company has not officially announced the service to customers yet, so I expect we’ll find out more details in due course.

Go Daddy objects to numeric .tel domains

Go Daddy has objected to Telnic’s plan to start selling numeric .tel domain names, saying that it, among other things, “smells a lot like gaming”.
Telnic applied to ICANN last month to revise its registry contract to enable it to start selling domains containing numbers and hyphens.
I speculated a month ago that the International Telecommunications Union might object to the proposal, for reasons I explained in some depth.
(Briefly, Telnic won the .tel sponsored TLD partly because it promised for years not to enable domains that could look like phone numbers.)
But the ITU had nothing to say, at least in terms of the ICANN public comment period.
Go Daddy’s Tim Ruiz did object last Saturday on related grounds, telling ICANN:

We believe that this request cannot be granted without requiring the rebidding of the .tel sTLD itself. It is unfair to other applicants and potential applicants to allow an sTLD to change its purpose after the fact.
…
Since community, purpose, and use were such important aspects of the sTLD allocation decisions it seems inappropriate, fundamentally unfair, and even smells a lot like gaming, to allow an sTLD to change those aspects without an opportunity for others to bid competitively.

In response to Ruiz’s letter, Telnic chief executive Khashayar Mahdavi wrote to ICANN:

The restriction on all-numeric strings has nothing to do with the nature of .tel and was instead a measure put in place to address initial concerns about potential conflicts with ENUM… We believe time and the growing understanding of the .tel technology have proven such a conflict does not exist.

ENUM is a protocol for addressing voice services using the DNS. It uses dots between each individual digit of a phone number, which would be specifically disallowed under Telnic’s plans.
Mahdavi also expressed confusion as to why Go Daddy bothered to object – it is not currently a registry, it does not carry .tel domains and it will presumably not be affected by the relaxation of the .tel rules.
Is it possible the registrar is taking a principled stance?
Ruiz also noted:

We believe that certain other recent requests under the guise of the RSEP [Registry Services Evaluation Process] by sTLDs were also likely inappropriate for similar reasons

He didn’t specify which sTLDs he was talking about. Without wishing to put words into his mouth, I can think of at least one that fits the description.
The Telnic proposal has already passed ICANN’s staff evaluation. I expect it could come before the board next month at its Cartagena meeting.
In separate news, Telnic’s less-controversial proposal to start selling one and two-character .tel domains has now passed its ICANN evaluation (pdf).

Another reason why Go Daddy might not become a registry

Domain name registries and registrars will soon be able to own each other, but there are plenty of good reasons why many of them, including the largest, may not.
George Kirikos and Mike Berkens are asking very interesting questions today, based on earlier investigative reporting by DomainNameWire, about whether Go Daddy would or should be barred from owning a registry on cybersquatting grounds.
But that’s not the only reason why Go Daddy may have problems applying for a new top-level domain.
I reported back in March, when only my mother was reading this blog, that Go Daddy may have gotten too big to be allowed into the registry market.
If you think Go Daddy wants to apply to ICANN to manage a new TLD registry or two, ask yourself: why did Go Daddy spend most of the year opposing vertical integration?
I have no inside knowledge into this, but I have a theory.
In 2008, CRA International produced an economic study for ICANN that, broadly speaking, recommended the relaxation of the rules separating registries and registrars.
In December that year, less than two years ago, Go Daddy filed its very much pro-VI comments on the study:

Go Daddy has and continues to be an advocate for eliminating the existing limits on registry/registrar cross-ownership.
…
The arguments that have been presented in favor of maintaining the status quo simply do not hold water. Current and past examples of cross-ownership already serve as test cases that demonstrate cross-ownership can and does work, and it can be successfully monitored.

Over the course of the next 12 months, the company’s official position on VI mellowed, and by this year it had made a 180-degree turn on the issue.
Its comments to the VI working group, filed in April 2010, say:

Go Daddy’s position on the vertical integration (VI) issue has changed over time. When VI discussions first began our position was very much to the left (if left is full, unqualified VI), but it has moved steadily to the right (if right is maintaining the so-called status quo). At this point, we are nearly fully on the right.

The company cited concerns about security, stability and consumer protection as the reasons for its shift. While I’ve no doubt that’s part of the story, I doubt it paints a full picture.
The decision may also have something to do with another economic study, produced for ICANN in February this year, this time by economics experts Steven Salop and Joshua Wright. It was published in March.
This study, crucially I think, suggested that where cross-ownership was to take place and the larger of the two companies had market power, that the deal should be referred to government competition regulators. Salop & Wright said:

We recommend that ICANN choose a market share threshold in the 40-60% range (the market share measured would be that of the acquiring company). The lower end is the market share at which U.S. competition authorities begin to be concerned about market power.

Guess which is the only registrar that falls into this market share window?
In January this year, Go Daddy put out a press release, when it registered its 40 millionth domain, which claimed:

Go Daddy now holds a near 50 percent market share of all active new domains registered in the world and is more than three times the size of its closest competitor.

Correlation does not equal causation, of course, so there’s no reason the second economic study and Go Daddy’s policy U-turn are necessarily linked, but I’d be surprised if the market power issue did not play a role.
The newly published Applicant Guidebook appears to have taken on board a key Salop & Wright recommendation, one that may be relevant:

ICANN-accredited registrars are eligible to apply for a gTLD… ICANN reserves the right to refer any application to the appropriate competition authority relative to any cross-ownership issues.

It seems to me that Go Daddy may be one of the few companies such a provision applies to. The company may find it has a harder time applying to become a registry than its competitors.
In the interests of sanity, I should point of that the AGB has been out for less than 48 hours, and that anything written about its possible consequences at this point is pure speculation.

Go Daddy’s .co promo is a test

Go Daddy is was “testing” the .co top-level domain as its default extension, .CO Internet has revealed.
It’s been widely reported over the weekend that .co is now the first TLD in the drop-down menu on Go Daddy’s front page, but it looks like the news might not be as shocking as originally thought.
.CO Internet chief executive Juan Diego Calle has just blogged:

The GoDaddy test is exciting. Permanent? Not yet. While we have a great and expanding relationship with GoDaddy, we do not expect .CO to remain as the default TLD on a permanent basis. In fact this is only a test to measure conversions, customer feedback, and much more.

Still, onwards and upwards. It’s certainly good news for the marketing of the Colombian TLD.
Personally, I’d be interested not only in data on conversions but also on refunds. There’s bound to be the odd customer who blindly registers a nice-looking domain thinking it’s a .com, right?
UPDATE: Go Daddy is now showing me (and others) .com as the default TLD once more. I guess the data is in.

ICANN drops the bomb – registries can buy registrars

ICANN has just authorized the biggest shake-up of the domain name industry in a decade, lifting all the major cross-ownership restrictions on registrars and registries.
A surprise resolution passed on Friday at the ICANN board’s retreat could enable registries such as VeriSign to acquire registrars such as Go Daddy, and vice-versa.
The new rules will also allow registrars to apply for and run new top-level domains and, subject to additional conditions, may enable existing registries to eventually start selling direct to end users, potentially bypassing the registrar channel.
The implications of these changes could be enormous, and I expect they could be challenged by affected parties.
The board resolved that ICANN “will not restrict cross-ownership between registries and registrars”, subject to certain yet-to-be written Code of Conduct for preventing abuse.
These looser ownership restrictions will be included in the new TLD Applicant Guidebook. Existing registries will be able to transition to the new rules over time through contract changes.
ICANN will develop mechanisms for enforcing anti-abuse rules through contractual compliance programs, and will have the ability to refer cross-ownership deals to competition authorities.

These provisions may be enhanced by additional enforcement mechanisms such as the use of self-auditing requirements, and the use of graduated sanctions up to and including contractual termination and punitive damages.

The decision appears to have been made partly on the grounds that while almost all existing registry contracts include strict cross-ownership restrictions, it has never been a matter of formal policy.
A vertical integration working group which set out to create a bottom-up consensus policy earlier this year managed to find only deadlock.
ICANN chairman Peter Dengate Thrush said:

In the absence of existing policy or new bottom-up policy recommendations, the Board saw no rationale for placing restrictions on cross-ownership. Any possible abuses can be better addressed by properly targeted mechanisms. Co-ownership rules are not an optimal technique in this area.

Most members of the VI working group broadly favored some level of cross-ownership restriction, such as a 15% cap, while a smaller number favored the “free trade” position that ICANN seems to have gone for.
The companies campaigning hardest against cross-ownership being permitted were arguably Afilias and Go Daddy, though the likes of NeuStar and VeriSign also favored some restrictions.
Opponents of integrating registry and registrar functions argued that giving registrars access to registry data would harm consumers; others countered that this was best addressed through compliance programs rather than ownership caps.
The big winners from this announcement are the start-up new TLD registries, which will not be forced to work exclusively within the existing registrar channel in order to sell their domains.

ICANN “intervention” needed on TLD ownership rules

ICANN’s board of directors is today likely to step in to create rules on which kinds of companies should be able to apply for new top-level domains.
Chairman Peter Dengate Thrush now says “intervention appears to be required” on the issue of registry-registrar cross-ownership, after a GNSO working group failed to create a consensus policy.
In an email to the vertical integration working group yesterday, Dengate Thrush thanked particpants for their efforts and added:

The board is faced, in the face of absence of a GNSO position, to examine what should be done. This is a matter we are actively considering.
My sense is that, while reluctant to appear to be making policy, the Board is unwilling to allow stalemate in the GNSO policy development process to act as an impediment to implementing other major policy work of the GNSO, which calls for the introduction of new gTLDS. Some kind of Board intervention appears to be required, and we are considering that.

Currently, placeholder text in the new TLD Draft Applicant Guidebook calls for a 2% cross-ownership cap and effectively bans registrars from applying to become registries.
Such a scenario would very likely make single-registrant “.brand” TLDs unworkable. Canon, for example, would be forced to pay a registrar every time it wanted to create a new domain in .canon.
It would also put a serious question mark next to the viability of geographical and cultural TLDs that may be of limited appeal to mass-market registrars.
Many in the VI working group are in favor of more liberal ownership rules, with larger ownership caps and carve-outs for .brands and “orphan” TLDs that are unable to find registrars to partner with.
But others, notably including Go Daddy and Afilias, which arguably stand to gain more economically from the status quo, favor a stricter separation of powers.
This latter bloc believes that allowing the integration of registry and registrar functions would enable abusive practices.
Dengate Thrush’s email has already raised eyebrows. ICANN is, after all, supposed to create policies using a bottom-up process.
Go Daddy’s policy point man, Tim Ruiz, wrote:

I am hopeful that you did not intend to imply that if the bottom up process does not produce the reults that some of the Board and Staff wanted then the Board will just create its own policy top down.
I hope that the Board keeps its word regarding VI as it was given to the GNSO. To not do so would make it difficult to have any confidence in the Board whatsoever.

It’s a tightrope, and no mistake.

WordPress.com becomes a domain name registrar

Automattic, the company behind the WordPress.com blogging service, appears to have been granted an ICANN registrar accreditation, which would allow it to start selling domain names direct to its users.
The development seems to put a question mark next to the company’s reseller relationship with Go Daddy subsidiaries Wild West Domains and Domains By Proxy.
Currently, WordPress.com allows users to buy domain names and map them to their wordpress.com blog directly through their blog’s interface. The company charges $17 a year, with optional privacy.
It’s my understanding that the company currently acts as a Wild West Domains reseller, with the privacy protection service offered by Domains By Proxy. Both are Go Daddy companies.
Recently, WordPress.com started offering an Offsite Redirect service, enabling users to bounce visitors to example.wordpress.com to example.com after they’ve switched hosts.
Go Daddy used this as an opportunity to encourage WordPress.com users to migrate to its own hosting service in this blog post.
Automattic showed up on ICANN’s list of accredited registrars IDs yesterday, suggesting that it will not be long before it is also on the official list of accredited registrars.

Go Daddy files for business community patents

Go Daddy has applied for three US patents covering an “Online Business Community” that looks a bit like a social network for small businesses.
The patents describe a web site that enables companies and potential customers to interact through forums, community groups and ratings systems, as well as advertising, buying and selling.
In the applications, Go Daddy says it had noticed that:

presently-existing methods of conducting online business, however, do not permit businesses and potential customers alike to interact in one place to share business-related resources; advertise, buy, and sell goods and services; interact; hold discussions; and network.

The patents, if granted, would cover such a service.
While most or all of the features outlined in the applications can be found individually in other Go Daddy products, I don’t think the company currently has a service that combines them all in the way described by the patents. Go Daddy Marketplace probably comes closest.
The applications appear to cover the creation of ad hoc business communities, for example, as well as the formation of “partnerships” between members such as suppliers and customers.
They also appear to account for communication between members using technologies such as instant messaging or voice over IP, and for members to rate each other for trustworthiness.
The three applications, 20100262686, 20100262629 and 20100262502, were filed in June and published today.

Scary fitness trainer is new Go Daddy girl

Jillian Michaels, a trainer from TV’s The Biggest Loser, is Go Daddy’s latest spokesmodel, according to CEO Bob Parsons.
Parsons just uploaded this publicity shot:

She looks like she could happily beat the crap out of an entire ICANN meeting with one arm tied behind her back.
I don’t know about you, but I’m a little scared.