.gay is gay enough after all? ICANN overturns community panel decision

One of the applicants for .gay has won a significant battle in the fight for the controversial new gTLD.
In a shock move, a committee of ICANN’s board of directors has overturned the rejection of dotgay LLC’s Community Priority Evaluation, ordering that the case should be re-examined by a new panel of experts.
As you may recall, dotgay’s CPE was kicked out in October after the Economist Intelligence Unit panel decided that the company’s defined community was too broad to be described by “gay” as it included a lot of people who aren’t gay, such as straight people.
The decision — which I thought was probably correct — caused an uproar from dotgay’s myriad supporters, which include dozens of international equal rights and gay community organizations.
dotgay filed a Request for Reconsideration, ICANN’s cheapest but least reliable form of appeal, and today found out it actually won.
ICANN’s Board Governance Committee, which handles the RfR process, this week ruled (pdf):

The BGC concludes that, upon investigation of Requester’s claims, the CPE Panel inadvertently failed to verify 54 letters of support for the Application and that this failure contradicts an established procedure. The BGC further concludes that the CPE Panel’s failure to comply with this established CPE procedure warrants reconsideration. Accordingly, the BGC determines that the CPE Panel Report shall be set aside, and that the EIU shall identify two different evaluators to perform a new CPE for the Application

The successful RfR appears to be based on a technicality, and may have no lasting impact on the .gay contention set.
Under the EIU’s process rules: “With few exceptions, verification emails are sent to every entity that has sent a letter(s) of support or opposition to validate their identity and authority”.
It seems that the EIU was sent a bundle of 54 letters of support for dotgay, but did not email the senders to verify they were legit. The BCG wrote:

Over the course of investigating the claims made in Request 14-44, ICANN learned that the CPE Panel inadvertently did not verify 54 of the letters of support it reviewed. All 54 letters were sent by the Requester in one correspondence bundle, and they are publicly posted on ICANN’s correspondence page.36 The 54 letters were deemed to be relevant by the EIU, but the EIU inadvertently failed to verify them.

If an applicant wins a CPE it means all the other applicants are automatically excluded, and the door is now open for the EIU to rethink its earlier decision.
So do competing applicants Rightside, Minds + Machines and Top Level Design now have genuine cause for concern? Not necessarily.
CPE applicants need to score at least 14 out of 16 available points in order to win, and dotgay only scored 10 points in its original evaluation.
Crucially, the EIU panel said that because the “community” as defined by dotgay included transgender, intersex, asexual and straight “allies” of equal rights, it was too broad to score any of the available four points on the “Nexus” criteria.
The BCG could find no fault with the EIU’s determination on Nexus, so even if dotgay’s letters of support are verified according to procedure, it would not necessarily lead to dotgay picking up any more Nexus points.
The BCG wrote on Nexus: “Requester’s substantive disagreement with the CPE Panel’s conclusion does not support reconsideration”.
However, given that the EIU is going to do the entire CPE all over again with new panelists, it seems entirely possible that dotgay could win this time.

NCC buys Open Registry for up to $22.6m — a gTLD registry now owns part of the TMCH

NCC Group has acquired registry back-end provider Open Registry in a deal that could be worth as much as £14.9 million ($22.6 million).
The deal means that NCC, which runs the new gTLD .trust via subsidiary Artemis Internet, now owns a back-end, a registrar and a piece of the Trademark Clearinghouse, in addition to its original core domain business of providing data escrow services to registries.
According to NCC, the acquisition is for a minimum of £7.9 million ($12 million), with the rest to be paid over three years if Open Registry meets performance targets.
Open Registry had revenue of €3.7 million ($4.3 million) in 2014, turning a profit of €15,000 ($17,300).
Its core business is as a back-end provider for new gTLD applicants. It has about 20 on its books, mostly European dot-brands and cities.
Part of the company’s business is CHIP, the Clearinghouse of Intellectual Property, which along with IBM and Deloitte runs the ICANN-sanctioned TMCH, which all new gTLD registries must use in their Sunrise and Trademark Claims launch periods.
It also owns a small registrar, Nexperteam, which has about 8,000 domains under management.
The Benelux company employs eight people.
Open Registry’s founding CEO Jean-Christophe Vignes joined Artemis as head of domain operations in 2013.

ICANN audit claims two more registrar scalps

Two tiny registrars — WebZero and Black Ice Domains — have had their registrar accreditations terminated for a failure to respond to a routine ICANN audit.
Israel-based Black Ice had just a couple thousands gTLD domains under management; US-based WebZero had fewer than 100.
Both registrars stood accused of not providing documents to ICANN in response to an audit, per their Registrar Accreditation Agreements.
ICANN will now look for a registrar or registrars to take over these registrars’ domains.

A quarter of registrar’s names are “illicit pharmacies”

One in four of the domain names registered with the registrar NetLynx are linked to current, past or potential future rogue drug sites, according to online pharmacy monitor LegitScript.
The Mumbai-based registrar was hit with a breach notice by ICANN Compliance last week, over an alleged failure to investigate an abuse complaint about a single customer domain, tnawsol24h.com.
NetLynx did not adequately respond to ICANN’s calls from November 26 to January 5, according to the notice (pdf).
While ICANN did not identify the source or nature of the complaint, according to LegitScript it was filed by the UK Medicines and Healthcare products Regulatory Agency and it claimed that the domain was being used as a “rogue internet pharmacy”.
LegitScript did some research into NetLynx’s domains under management and now claims that it is not an isolated case.
Company president John Horton blogged:

at least a quarter of the registrar’s business is dependent on rogue Internet pharmacy registrations, with roughly 3,000 of the 12,000 domain names under the registrar’s portfolio taggable as current, past or “holding sites” for illicit online pharmacies.

Horton clarified for DI that the 3,000 number is extrapolated from the fact that LegitScript managed to categorize 1,820 out of the 7,000 NetLynx domains it could find as problematic.
Of those, 820 were “online and active” rogue pharmacies, he said. He gave canadian-drug-pharmacy.com, pills-delivery.net and pillsforlife.net as examples.
Another 780 were hosting rogue pharmacies in the past but have since been shut down, he said.
Finally, LegitScript categorized 220 as “meeting known patterns” for “holding sites” where illicit pharmacies may be launched in future. Horton said:

many of the spam pharma organizations use “holding domain names” (not all are online at any one time), so if the website was NOT currently online, we looked to a variety of data — known domain name patterns, screenshots, known rogue name servers, known rogue IP addresses, etc. — to determine the likelihood that a domain name is likely to be a rogue Internet pharmacy, and gave NetLynx the benefit of the doubt if there was any lack of certainty

LegitScript classifies online pharmacies as “rogue” if they offer to ship medicines without a prescription to people in jurisdictions where prescriptions are required.
Horton is now calling for ICANN to look into terminating NetLynx’s accreditation.

.top says Facebook shakedown was just a typo

Jiangsu Bangning Science & Technology, the .top registry, is blaming a typo for a Facebook executive’s claim that it wanted $30,000 or more for facebook.top.
Information provided to the ICANN GNSO Council by Facebook domain manager Susan Kawaguchi yesterday showed that .top wanted RMB 180,000 (currently $29,000) for a trademarked name that previously had been blocked due to ICANN’s name collisions policy.
But Mason Zhang, manager of the registry’s overseas channel division, told DI today that the price is actually RMB 18,000 ($2,900):

We were shocked when seeing that our register price for TMCH protected names like Facebook during Exclusive Registration Period is changed from “eighteen thousand” into what is written, the “one hundred and eighty thousand”.
I think that might be a type mistake from our side, and we checked and we are certain that the price is CNY EIGHTEEN THOUSAND.

The 18,000-yuan sunrise fee is published on the registry’s official web site, as I noted yesterday.
The registry email sent to Facebook is reproduced in this PDF.
I wondered yesterday whether a breakdown in communication may to be blame. Perhaps I was correct.
While $3,000 is still rather high for a defensive registration, it doesn’t stink of extortion quite as badly as $30,000.
Still, it’s moderately good news for Facebook and any other company worried they were going to have to shell out record-breaking prices to defensively register their brands.

Here’s how the new number two new gTLD got so big so quick

Attentive DI readers will recall my journalistic meltdown last week, when I tried to figure out how the Chinese new gTLD .网址 managed to hit #2 in the new gTLD zone file size league table, apparently shifting a quarter of a million names in a week.
Well, after conversations with well-placed sources here at NamesCon in Las Vegas this week, I’ve figured it out.
.网址 is the Chinese for “.url”.
Its rapid growth — hitting 352,000 names today — can be attributed primarily to two factors.
First, these weren’t regular sales. The registry, Knet, which acquired original applicant Hu Yi last year, operates a keyword-based navigation system in China that predates Chinese-script gTLDs.
The company has simply grandfathered its keyword customers into .网址, I’m told.
The keyword system allows Latin-script domains too, which explains the large number of western brands that appear in the .网址 zone.
The second reason for the huge bump is the fact that many of the domains are essentially duplicates.
Chinese script has “traditional” and “simplified” characters, and in many cases domains in .网址 are simply the traditional equivalents of the simplified versions.
I understand that these duplicates may account for something like 30% of the zone file.
I’ve been unable to figure out definitively why the .网址 Whois database appeared to be so borked.
As I noted last week, every domain in the .网址 space had a Knet email address listed in its registrant, admin and technical contact fields.
It seems that Knet was substituting the original email addresses with its own when Whois queries were made over port 43, rather than via its own web site.
Its own Whois site (which doesn’t work for me) returned the genuine email addresses, but third-party Whois services such as DomainTools and ICANN returned the bogus data.
Whether Knet did this by accident or design, I don’t know, but it would have almost certainly have been a violation of its contractual commitments under its ICANN Registry Agreement.
However, as of today, third-party Whois tools are now returning the genuine Whois records, so whatever the reason was, it appears to be no longer an issue.

The new massive number two new gTLD has me paralyzed with confusion

The Chinese-script gTLD .网址 powered to the number two spot in the new gTLD rankings by zone file size this week, but it’s doing some things very strangely.
.网址 is Chinese for “.site”, “.url” or “.webaddress”.
The registry is Hu Yi Global, ostensibly a Hong Kong-based registrar but, judging by IANA’s records, actually part of its Beijing-based back-end Knet.
I’m going to come out and admit it: even after a few hours research I still don’t know a heck of a lot about these guys. The language barrier has got me, and the data is just weird.
These are the things I can tell you:

• .网址 has 352,727 domains in its zone file today, up by about a quarter of a million names since the start of the week.
• The names all seem to be using knet.cn name servers
• I don’t think any of them resolve on the web. I tried loads and couldn’t find so much as a parking page. Google is only aware of about eight resolving .网址 pages.
• They all seem to have been registered via the same Chinese registrar, which goes by the name of ZDNS (also providing DNS for the TLD itself).
• They all seem to be registered with “nameinfo@knet.com” in the email address field for the registrant, admin and technical contacts in Whois, even when the registrants are different.
• That’s even true for dozens of famous trademarks I checked — whether it’s the Bank of China or Alexander McQueen, they’re all using nameinfo@knet.cn as their email address.
• I’ve been unable to find a Whois record with a completed Registrant Organization field.
• Nobody seems to be selling these things. ZDNS (officially Internet Domain Name System Beijing Engineering Research Center) is apparently the only registrar to sell any so far and its web site doesn’t say a damn thing about .网址. The registry’s official nic.网址 site doesn’t even have any information about how to buy one either.
• ZDNS hasn’t sold a single domain in any other gTLD.
• News reports in China, linked to from the registry’s web site, boast about how .网址 is the biggest IDN TLD out there.

So what’s going on here? Are we looking at a Chinese .xyz? A bunch of registry-reserved names? A seriously borked Whois?
Don’t expect any answers from DI today on this one. I’ve been staring at Chinese characters for hours and my brain is addled.
I give up. You tell me.

.reise is first live new gTLD to hit the auction block

German domain registry Dotreise has become the first company to reveal that it wants to sell off a new gTLD.
Innovative Auctions is to handle an auction on February 27 at which Dotreise will attempt to unload the unwanted string, it emerged this evening.
The word “reise” is German for “travel”.
The gTLD has failed to capture much interest since it launched. As of today, it has just 1,254 domains in its zone file, about 1,000 of which were registered in its first week of general availability last August.
At launch, it had just a handful of registrars. Only four registrars sold more than 100 names in August.
It’s currently a relatively big-ticket TLD, which may account for the low sales. It retails for about $170 to $180 at United-Domains, the registrar that has shifted the most .reise names to date.
That would put revenue for .reise at under a quarter of a million dollars a year, based on its current volume, I guess.
It competes with Donuts’ .reisen, which has pretty much the same meaning but has been available a month longer and retails for under $25 a year; .reisen has a slightly bigger zone file, at 3,839 domains.
According to Innovative, the company behind Applicant Auction, which helps settle new gTLD contention sets with auctions:

The .REISE TLA will be a simultaneous ascending clock auction, similar to the format of the Applicant Auction. There will be no buyer commission for this auction, so no additional fees – you just pay the winning price if you win.

It’s a one-day auction.
Innovative had planned to auction off multiple live gTLDs in October, but was hit by delays.

Fatal timeout? A dozen dot-brands procrastinating to death

Over a dozen new gTLD applications have been iced because the applicants couldn’t or wouldn’t talk to ICANN about signing contracts before their deadlines.
Volvo and PricewaterhouseCoopers are among the 13 dot-brand applicants whose $185,000+ investments could vanish in a puff of smoke because they can’t bring themselves to sign on the dotted line, I’ve discovered.
The following gTLD applications, filed by 10 different companies, are no longer active because of contracting problems:

.select, .compare, .axis, .origins, .changiairport, .nissay, .lamer, .clinique, .pwc, .volvo, .amp, .招聘 (Chinese “.recruitment”), .wilmar

They’re all uncontested applications. They’re also all, with the exception of .招聘, envisaged having single-registrant policies (dot-brands, in other words).
All had their apps flagged by ICANN as “Will Not Proceed” in the new gTLD process late last year, having failed to sign or start negotiating their Registry Agreements in time.
Under program rules, applicants originally had nine months from the day they were invited to contract with ICANN in which to sign their RAs.
After protests from dot-brand applicants planning to sign up for so-called “Spec 13” code of conduct exemptions, ICANN last June gave such applicants an extension until July 2015, as long as they hit a September 1 deadline to respond to ICANN’s overtures.
Applicants that did not request an extension had an October 29 deadline to sign their RAs.
According to an ICANN spokesperson, a failure to hit such “interim milestones” disqualifies applicants from signing RAs.
It’s not entirely clear from the Applicant Guidebook how applicants can extricate themselves from this limbo state without withdrawing their applications, but ICANN assures us it is possible.
“Will not Proceed is not a final status,” the spokesperson cautioned. “But they are currently not eligible to sign the RA with ICANN. But if that status changes, we’ll update it accordingly on the site.”
Withdrawals would qualify the applicants for a 35% refund on their application fees, he confirmed.

Schilling laughing as Uniregistry beats Google to .lol

Uniregistry’s portfolio of quirky new gTLDs grew today. The company seems to have beaten Google to .lol in a private deal.
The two companies were the only ones to apply for .lol, and Google’s application was formally withdrawn today.
As usual for private contention set settlements, the winning price has not been disclosed.
Uniregistry has 18 delegated gTLDs in its stable, with five more currently uncontested applications (.lol makes six) waiting in the wings.
I like .lol as a gTLD. It’s a punchy, short, meaningful string that certainly belongs to the right of the dot.
I can see it being deployed in the near term by the incessant sewer of BuzzFeed clones that are increasingly stinking up social media, which could give increased visibility and helpful viral marketing.
Longer term, there may be a worry if in future the kidz stop using “lol” and start viewing it as something their parents say, but we’re probably a ways from that yet.