Extortion.sucks — Vox Pop CEO defends “under-priced” $25,000 sunrise fee

Vox Populi Registry, the .sucks new gTLD applicant backed by Momentous Corp, is to charge trademark owners $25,000 to participate in its Sunrise period, should it win the TLD.
Not only that, but it’s become the first new gTLD applicant that I’m aware of to start taking pre-registration fees from trademark owners while it’s still in a contention set with other applicants.
At first glance, it looks like plain old trademark-owner extortion, taken to an extreme we’ve never seen before.
But after 45 minutes talking to Vox Pop CEO John Berard this evening, I’m convinced that it’s worse than that.
The company is setting itself up as the IP lobby’s poster child for everything that is wrong with the new gTLD program.
If Vox Pop wins the .sucks contention set — it’s competing against Donuts and Top Level Spectrum — it plans to charge trademark owners $25,000 to participate in Sunrise and $25,000 a year thereafter.
Registrations during general availability, whether they match a trademark or not, will cost $300 a year.
During the pre-registration period, the Sunrise fee is $2,500 and the “Priority Reservation” fee is $250.
The Sunrise fee is, I believe, higher than any sunrise fee in any TLD ever to launch.
But Berard said that he believes Vox Pop’s .sucks proposition is, if anything, “under-priced”.
“Most companies spend far more than $25,000 a month on a public relations agency, most companies spend more than $25,000 a month on a Google ad campaign,” he said.
“Companies spend millions of dollars a year on customer service. We view .sucks as an element of customer service on the part of companies,” he said.
Berard, a 40-year veteran of the public relations business, said that he believes .sucks represents an opportunity for brands to engage with their customers, gaining valuable insight that could help them improve product development or customer service.
“The last thing I view .sucks as is a domain name. That’s the last value proposition for .sucks,” he said. “The primary value proposition is as a key and innovative part of customer service, retention and loyalty.”
It’s about giving companies “the ability to bring internet criticism and commentary out of the shadows and into the light” and “an opportunity to actually have a legitimate ability to correct misconceptions and engage, in much the way they’re doing now with Facebook”, he said.
It’s all about helping companies create a dialogue, in other words.
But Berard said that Vox Pop does not intend to launch any value-added services on .sucks domains.
While a domain name may be the “last value proposition” of .sucks, it is also the only thing that Vox Pop is actually planning to sell.
Asked to justify the $25,000 Sunrise fee, at first Berard pointed to policies that he said will ensure a transparent space for conversation.
“A company might not have to register its brand in .sucks, because if someone else does the policies and practices that we hope to deploy give that company a transparent opportunity to participate,” Berard said. “There’s no chasing unknown people down dark alleys for unfounded criticism. It will all be done in the light of day.”
“We have built-in policies that prevent sites from being parked pages,” he said. “The site must be put to that use — of customer service — whether you are the company that owns [the brand] or a customer that wants to complain about it.”
There was some confusion during our conversation about what the policies are going to be.
At first it sounded like companies would be obliged to run criticism/conversation sites targeting their own brands or risk losing their domains, but Berard later called to clarify that while pages cannot be parked under the policy, they can be left inactive.
It will be possible, in other words, for a company to register its brand.sucks and leave the associated site dark.
The registry would also have an “authenticated Whois database”, he said, though it would allow registrants to use privacy services.
There would also be prohibitions on cyber-bullying and porn in .sucks, if Vox Pop wins it. It has committed to these policies in its Public Interest Commitments (pdf)
But the company does not appear to be doing anything that ICM Registry did not already do when it launched .xxx a couple of years ago, when it comes to making brand owners’ lives easier.
In fact, it’s planning to do a lot less, while being literally a hundred times more expensive.
By contrast, if Donuts wins .sucks, brand owners will be able to defensively block their marks using the Domain Protected Marks List for $3,000 over five years, which would cover all of Donuts 200-300 new gTLDs.
There doesn’t appear to be any good reason Vox Pop is charging prices well above the market rate, in my view, other than the fact that the company reckons it can get away with it.
In what may well be a deliberate move to put pressure on trademark owners, Vox Pop is also the first registry I’ve encountered to say it will do a 30-day, as opposed to a 60-day, Sunrise period.
Under ICANN rules, registries have to give at least 30 days warning before a 30-day Sunrise starts, but once it’s underway they are allowed to allocate domains on a first-come-first-served basis.
All of the 30-odd registries currently in Sunrise have opted for the traditional 60-day option instead, where no domains are allocated until the end of the period.
There’s also the question of accepting Sunrise pre-registrations before Vox Pop even knows whether it will get to run .sucks.
There are two other applicants and Berard said that he reckons the contention set is likely to go to an ICANN last-resort auction.
Judging by ICANN’s preliminary timetable, the .sucks auction wouldn’t happen until roughly September next year, by my reckoning.
Anyone who pre-registers today will have to wait a year before they can use (or not) their domain, if they even get to register it at all.
Any money that is taken during the pre-reg period will be refunded if Vox Pop fails to launch.
In the meantime, it will be sitting in Momentous’ bank account where the company, presumably, will be able to use it to try to win the .sucks auction.
Trademark owners, in my view, should vote with their wallets and stay the hell away from Vox Pop’s pre-registration service.
I’m not usually in the business of endorsing one new gTLD applicant over another, but I think Vox Pop’s Sunrise pricing is going to make the whole new gTLD program — and probably also ICANN and the domain name industry itself — look bad.
It’s a horrible reminder of a time when domain name companies were often little better than spammers, operating at the margins and beyond of acceptable conduct, and it makes me sad.
The new gTLD program is about increasing choice and competition in the TLD space, it’s not supposed to be about applicants bilking trademark owners for whatever they think they can get away with.

Applicants spank IO in .health objections

Donuts and Dot Health LLC have beaten back objections filed by ICANN’s Independent Objector over the .health gTLD.
In simultaneous separate rulings by the same three-person International Chamber of Commerce panel, it was decided that the string “health” is not intrinsically offensive.
The IO, in his Limited Public Interest Objections, had argued that health is a human right protected by international law, and that .health should be managed with certain safeguards to protect the public.
But the ICC panels sided with the applicants, finding that in order for an objector to prevail in a LPI objection he must show that the string itself contravenes international law.
The panels used a strict reading of the Applicant Guidebook and supporting documentation to come to their conclusions. In the Donuts case, the panel ruled:

The Panel has no hesitation in finding that the string “health” is not objectionable in and of itself. It is obvious to the Panel that the word “health” does not conflict with any generally accepted legal norms relating to morality and public order of the same nature as the first three grounds ICANN listed in AGB Section 3.5.3.

The LPI objection was created in order to prevent gTLDs from being delegated where the string itself endorses ideas such as racism, slavery or child abuse.
ICANN has said that applications for such strings “may well be rare or non-existent”.
The panels sharply dismissed claims that IO, Alain Pellet, and a staff member were conflicted due to their previous work for the World Health Organization.
The Donuts ruling is here and the Dot Health ruling is here.

.buzz and .support go live

DotStrategy has become the newest registry with a gTLD live in the DNS root.
Its .buzz, which is aimed at “groups related to blogging, communications, journalism, advertising, and marketing and development” was delegated last night.
The first second-level name, nic.buzz, is currently resolving to a parking page — seemingly managed by one of the usual parking companies — which, let’s face it, looks a bit crap even as a temporary measure.
That said, I really like .buzz as a concept, if for no other reason than it’s a rare example of a gTLD string that seems to have been selected by a human rather than an algorithm.
Speaking of which, Donuts also had its 42nd gTLD, .support, delegated last night.
There are now 54 new gTLDs live in the DNS root.

The plurals debate is over as ICANN delegates 17 more new gTLDs

Another 17 new gTLDs were delegated to the DNS root last night, most of them belonging to Donuts.
Notably, Donuts now runs .photos and .careers, the first two delegated gTLDs where live applications also exist for the singular form of the string.
Uniregistry is currently contracted and awaiting the delegation of .photo, while dotCareer is already contracted for .career.
The debate about whether ICANN should permit singular and plural versions of the same string to coexist is now surely over.
Just a week ago, the Internet Association — a trade group comprising Amazon, Google, AOL, Yahoo, Salesforce, Zynga and many others — called on ICANN to rethink its policy of coexistence.
Calling the policy a “violation of user trust”, the Association said (pdf), “the existence of these domain names poses significant risks to the DNS, Internet companies, and their users”.
The Association noted that the Governmental Advisory Committee had strong concerns about singular and plural coexistence, due to the risk of consumer confusion.
String Confusion Objection panels have reached quite different conclusions about whether adding an “s” makes a string confusingly similar to another.
Personally, while I’m all for competition, I believe coexistence will lead to parasitical business models that will bring the domain name industry into further disrepute.
I know for a fact that some registries are considering the merits of tailgating their confusingly similar competitors.
But it seems ICANN’s decision was final.
There’s currently no mechanism for ICANN to un-approve a gTLD once it’s been delegated — failing serious wrongdoing by the registry — so it’s difficult to see how it could now decide that plural and singular forms of the same string should be mutually exclusive.
While I’m sure the Internet Association and others will carry on complaining, I think they’re now talking to deaf ears.
There were 17 new gTLDs delegated yesterday in total, 15 of which were in Donuts portfolio.
Donuts has also added the following to its portfolio: .cab, .camp, .academy, .center, .company, .computer, .domains, .limo, .management, .recipes, .shoes, .systems and .viajes (Spanish for “travel”).
CONAC, the China Organizational Name Administration Center had .政务 (“government”) and .公益 (“public interest”) delegated.

ICANN publishes accelerated gTLD auction timeline

ICANN has cut the anticipated length of its “last resort” new gTLD auctions in half, last night publishing a schedule that would take 10 months and end in early 2015.
The draft schedule and auction rules, put together by selected auctioneer Power Auctions, would see 10 monthly batches of auctions, with 20 contention sets resolved per month.
The revised rules, which are open for public comment, read:

It is anticipated that Auctions will be conducted once per month to resolve 20 Contention Sets per Auction, with the intention to complete all Auctions within one (1) year from the date of the first Auction.

It’s still anticipated that auctions will begin in March 2014.
That’s a lot better for applicants than the original plan, which was to limit each applicant to only five auctions per month. Due to Donuts’ large portfolio, that would have stretched the process out to April 2016.
An accompanying schedule (pdf) published last night actually batches up 201 of the remaining contested gTLDs into 10 buckets, so most applicants now know where they stand.
It’s good news for applicants that have high priority numbers but are in contention sets with applicants with low priority numbers — they’ll get bumped to the front of the queue.
For example, dot Buy Limited drew 1,883 in the prioritization lottery, but will be in the first monthly auction because it’s up against Amazon, with priority number 128, for .buy.
There’s still no news about how ICANN will handle indirect contention, however.
While the schedule has placed the likes of .unicom and .unicorn — which were found similar by evaluation panels — in the same auction, it does not yet reflect the results of objections that should (in theory) place different strings in the same contention set.

The latest new gTLD passes and signings

Five new gTLD applications passed Extended Evaluation late Friday, while one more contract was signed.
Four of the five EE passes were dot-brands that had previously failed to provide ICANN with enough financial information to pass their Initial Evaluation.
They are: .mckinsey (McKinsey Holdings), .alcon (Alcon Laboratories), .cipriani (Hotel Cipriani), and .jcp (JCP Media).
The fifth was DotHome Ltd (Defender Security/CGR-Ecommerce) with .home, a bittersweet pass given that the .home gTLD is now unlikely to ever see the light of day due to name collision risks.
Also late Friday, another registry signed its Registry Agreement with ICANN. This time, it was Dai Nippon Printing with .dnp, a Japanese dot-brand.
The contract has not yet been published, but it seems unlikely to be ICANN’s newly proposed dot-brand contract, which is still open for public comment.

No costs to registries from TM Claims extension

New gTLD registries will not have to pay any extra fees due to the Trademark Clearinghouse’s extension of the Trademark Claims service, according to the the TMCH.
When the TMCH announced a few days ago that it planned to extend Claims indefinitely — beyond the 90 days required by ICANN contract — a couple of gTLD registries asked me if it would mean more costs for them.
According to the TMCH, the answer is “no”.
The TMCH said in a statement (with my emphasis):

no additional costs will be charged to the registries
…
The Clearinghouse will create an extra interface that works separately from the existing trademark database interface for the 90 days Claims Notifications (during these 90 days registries have to pay 0.25 USD per registration when there is a successful registration matching a mark in the Clearinghouse). The 90+ interface will charge no such fee when there is an exact match.

The TMCH plans to use other means, such as scraping zone files, to provide the extended service.

Blocked trademarks still eligible for Donuts sunrises

Donuts has confirmed that it is to allow trademark owners to participate in its new gTLD Sunrise periods even if their marks appear on name collisions block-lists.
The decision means that companies will be able to choose whether to grab names matching their marks during Sunrise, or take the risk that they will be released at a later date.
Donuts, like all gTLD registries, has been given block-lists for each of its TLDs. The idea is to avoid collisions with names already in use on private name-spaces behind corporate firewalls.
Lots of these blocked names match or contain well-known trademarks.
(Trademark owners can use the DI PRO collisions search engine to figure out which gTLDs have been asked to block their marks.)
While this appears at first glance to be good news for mark owners that just want their marks blocked in as many TLDs as possible, it also poses potential risks.
Blocked names are not likely to be blocked until after the first wave of Sunrise periods are over, and ICANN’s unblocking process has not yet been written.
For a company that wants to register its brand in a new gTLD, but is on a block-list, that could cause problems.
By allowing companies to participate in Sunrise regardless, Donuts is giving them a way to mitigate the risk of somebody else grabbing their brands in future.
Donuts does not plan to allow any of these names to be activated in the DNS until the ICANN collisions mitigation plan has been finalized, however.
So companies could find themselves paying for Sunrise names but unable to use them until some unspecified future date — if at all.

Ten more new gTLDs get ICANN contracts

.bar, .pub, .fish, .actor, .caravan, .saarland, .yokohama, .ren, .eus and .рус all have new gTLD contracts with ICANN as of yesterday.
It’s an eclectic batch of TLDs. Unusually, only one belongs to Donuts.
Of note is .caravan, which on the face of it looks like an English-language generic, but which is actually a closed, single-registrant dot-brand.
While “caravan” is an English dictionary word in the UK and Australasia, in the US it’s a 50-year-old trademark belonging to Illinois-based applicant Caravan International.
The Governmental Advisory Committee never flagged up .caravan as a “closed generic” in its Beijing Communique, so ICANN never questioned how it would be used.
However, the application states that the company plans “to reserve all names within the TLD to itself”.
What we seem to have here is a case of a dictionary word in one part of the world being captured by a single-registrant applicant due to a trademark elsewhere.
Another notable new Registry Agreement signatory is Punto 2012, which has obtained a contract for .bar.
The gTLD was originally contested, but Demand Media’s United TLD withdrew following an RFP held by the government of Montenegro, which had an effective veto over the string “Bar” due to a match with the protected name of one of its administrative regions.
I gather Montenegro will be paid in some way from the .bar registry pot.
There are also a few new geographic/cultural registries this week: .eus for the Basque people of Spain, .yokohama for a Japanese city, .saarland for a German state and the Cyrillic IDN .рус for a subset of the Russian people.
The only .brand is .ren, for the Chinese social network Renren.
The remainder are English-language generics.

Should new gTLD objections have an appeals process?

That’s the question the ICANN Ombudsman is asking today.
Several new gTLD applicants that have lost objections — many in decisions that appear to diverge from ICANN’s rules or are inconsistent with other decisions — have been in touch to ask for redress, Ombudsman Chris LaHatte blogged this morning. He wrote:

The real problem as it seems to me, is that apart from the internal review procedures, there is no ability to seek an appeal from the panel decisions. A number of complainants had mentioned the need for an appeal process, emphasising that some of the decisions were in their view, inconsistent or not following the majority views.

LaHatte noted that his role is to decide issues of fairness in ICANN’s own decisions. As objections are all handled by third-party arbitration bodies, it’s not at all clear whether he has any authority at all over objection decisions.
Applicants have also been invoking the Reconsideration process en masse in an attempt to have successful objections overturned, but all Reconsideration requests to date have been rejected.
Reconsideration generally requires that the requester provide ICANN with new evidence that was not considered at the time of the original decision.
The ICANN Board Governance Committee, which handles Reconsideration, appears to be happy to leave objections in the hands of the arbitrators so far.
But the new gTLD objection process is a bit of a joke at the moment.
String Confusion Objection panelists have delivered inconsistent decisions, while Community Objection and Limited Public Interest Objection panels often seem to be making up rules as they go.
So should ICANN have an appeals process? If one is created it will undoubtedly be broadly used.