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Closed generics ban likely to remain after another policy group failure

Kevin Murphy, August 15, 2023, Domain Policy

Closed generic gTLDs are likely off the table for ICANN’s next application round, after a secretive policy development working group failed to reach a consensus on how they could be permitted.

The chairs of the ALAC-GAC-GNSO Facilitated Dialogue on Closed Generic gTLDs have put their names to a draft letter that essentially throws in the towel and recommends ICANN sticks to the status quo in which closed generics are not permitted.

The chairs of the three committees write that they “believe that it is not necessary to resolve the question of closed generic gTLDs as a dependency for the next round of new gTLDs, and we plan to inform the ICANN Board accordingly.”

In other words, whatever latency related to needing a closed generics policy that was built in to ICANN’s recent April 2026 target for opening the next application round could be eliminated from the timeline.

The three chairs added (emphasis in original PDF):

We agree with the ICANN Board (in its original invitation to the GAC and the GNSO to engage in a facilitated dialogue) that this topic is one for community policy work, rather than a decision for the Board. As such and based on our collective belief that there is neither the need nor the community bandwidth to conduct additional work at this stage, we also plan to ask that, for the next round, the Board maintain the position that, unless and until there is a community-developed consensus policy in place, any applications seeking to impose exclusive registry access for “generic strings” to a single person or entity and/or that person’s or entity’s Affiliates (as defined in Section 2.9(c) of the Registry Agreement) should not proceed. Finally, we also plan to inform the Board that any future community policy work on this topic should be based on the good work that has been done to date in this facilitated dialogue.

But that position — still a draft — is already facing some push-back from community members who disagree about what the current status quo actually is.

The 2012 application round opened up with the assumption that closed generics were A-okay, and it received hundreds of such applications.

But the governments of the GAC, no doubt stirred by competition concerns, balked when they saw big companies had applied for gTLD strings that could enable them to dominate their markets.

The GAC demanded that closed generics must service the public interest if they were to be permitted, so ICANN Org — in what would turn out to be an Original Sin injected into the destiny of future rounds — retroactively changed the rules, essentially banning closed generics but allowing applicants to withdraw for a refund or open up their proposed registration policies.

The third option was to defer their applications to a future application round, by which point it was assumed the community would have established a closed generics policy. No applicant took that option.

But making that policy was the job of a committee called SubPro, but when turned its attention to the issue, entrenched positions among volunteers took hold and no consensus could be found. It couldn’t even agree what the status quo was. The group wound up punting the issue to the ICANN board.

The discussion moved on last year when ICANN decided to launch the “Facilitated Dialogue”, forcing the GAC and the GNSO to the negotiating table in last-ditch attempt to put the issue to bed for good.

Ironically, it was the 2013 GAC advice — made at time when the governments drafted their advice in secret and were deliberately ambiguous in their output — that killed off closed generics for a decade that ICANN used to reopen the issue. The GAC hadn’t wanted a blanket ban, after all, it just wanted to mandate a “public interest” benefit.

The assumption was that the Facilitated Dialogue would come up with something in-between a ban and a free-for-all, but what it actually seems to have come up with is a return to the status quo and disagreement about what the status quo even is.

It really is one of those situations where ICANN, in its broadest definition, can’t see to find its ass with two hands and a flashlight (and — if you’ll indulge me — a map, GPS coordinates, and a Sherpa).

Epik had worst month ever in April

Kevin Murphy, August 8, 2023, Domain Registrars

The fallout from Epik’s financial mismanagement scandal continued to wreak havoc on the company’s registration numbers in April, the latest ICANN registry transaction reports show.

The company had its worse month ever for transfers, with 34,698 domains being moved to rival registrars and only 206 being transferred in.

Epik sold just 411 gTLD domains in April — its worst month for adds in over a decade — having regularly added five figures worth in pre-scandal months.

The registrar’s domains under management number for all gTLDs was 557,652 at the end of the month, down 50,239 compared to the end of March and down 234,902 compared to September, when the scandal began to emerge.

For context, April was the month when news of a customer lawsuit (now settled) seeking $300,000 redress over a botched domain sale first emerged and stories of Epik’s woes started receiving broader attention.

Epik now has a new owner and is awaiting ICANN approval to transfer its accreditation.

Huge telco dumps gTLDs after rebrand

Kevin Murphy, August 8, 2023, Domain Registries

e&, a major telecoms company in the Middle East, has told ICANN to scrap its two dot-brand gTLDs following a partial corporate rebrand last year.

The Abu Dhabi-based company, which operates in 16 countries and has turnover of over $7 billion, said it no longer wishes to operate .etisalat and its Arabic equivalent, اتصالات. (.xn--mgbaakc7dvf). It’s never used the domains.

The company last year said it was rebranding as e&, the ampersand perhaps demonstrating that its marketing folk have little interest in intuitive domain names. “Etisalat by e&” is still used in some territories.

The firm uses eand.com as its primary web site domain.

As dot-brands with no domains and no customers, ICANN will quietly drop them from the root in due course.

April 2026 is the date for the next new gTLD round

Kevin Murphy, August 1, 2023, Domain Policy

ICANN has given itself an April 2026 target for accepting the next round of new gTLD applications.

Board chair Tripti Sinha wrote yesterday that ICANN expects the next Applicant Guidebook — the Book of Mormon for the program — to be completed in May 2025 “which enables the application round to open in Q2 2026 (with the goal of April 2026)”.

She noted, as if it needed note, that there could be delays.

Back in May, ICANN had indicated May 2026 as the likely date. That was in a fairly obscure Inside Baseball document. The newly revealed date is an official ICANN announcement.

Other key dates come in the fourth quarter 2025, when ICANN will start accepting applications for its Applicant Support Program and registry service provider pre-evaluation program.

Sinha said the board last week approved an Implementation Plan that lays out the work — and costs — for the next three years.

ICANN expects the program to cost it $70 million between Q2 2023 and Q2 2026. It’s assuming it gets roughly 2,000 applications, in with its experience in 2012. It will hire 29 new staff.

Doria leaving ICANN board a loss for new gTLD program

Kevin Murphy, August 1, 2023, Domain Policy

ICANN’s Nominating Committee has announced its 2023 selections for many of the Org’s leadership positions, and the big shocker is that director Avri Doria is not among the picks.

NomCom said it has reappointed lawyer Sarah Deutsch for a third three-year term, but Doria’s seat is being taken by Catherine Adeya, a Kenyan tech policy expert who describes herself as a “Senior Digital Transformation & Governance Specialist”.

Adeya holds various directorships and was director of research at the World Wide Web Foundation for a couple of years until layoffs in late 2022, according to her socials.

While Adeya seems incredibly well-qualified for the role, I can’t help but lament the loss of Doria’s institutional expertise. She, along with fellow ICANN lifer Becky Burr, have recently been doing a pretty good job working with the GNSO to help oil the wheels of implementation and get the new gTLD program up and running again.

The NomCom picks mean that the number of voting Africans on the 20-person board doubles from one to two and the number of North Americans is reduced by one. The gender mix of course remains the same, with six out of the 16 voting seats filled by women.

There’s been a lot of talk this year, particularly from chair Tripti Sinha, about a goal to achieve “gender parity” in ICANN’s leadership positions, and NomCom’s 2023 appointments certainly seem to reflect that.

Despite as few as 27% of the 155 applicants ticking the female box on the application form, versus 59% male, only two of the nine open positions were filled by men.

Two of the nine hail from Asia-Pacific, with three from Africa, two from North America, and one each from Europe and Latin America.

ICANN’s bylaws require at least one director from each of the five geographic regions and the board every year encourages NomCom to keep gender and geographical diversity in mind when making their picks.

All the NomCom picks take their seats at the end of ICANN’s public meeting this October.

A second new gTLD has FAILED and will be sold off

A second commercial, non-branded new gTLD has thrown in the towel after failing to sell many domains and ICANN will seek out a new registry operator to take over.

Desi Networks has told ICANN it wants to unilaterally terminate its contract to run .desi, which as of the end of March had 1,425 domains under management after almost a decade in the root. It peaked at 4,330 domains in December 2018.

ICANN said it will invoke its Registry Transition Process to find a new registry operator. That’s essentially an auction, though if Desi Networks has so far failed to find a buyer privately one wonders how much attention it will attract.

The term “desi” broadly refers to people of South Asian residence or descent, usually Indians and the Indian diaspora. With over 1.5 billion potential registrants, on paper it looks like a winner.

But a Google search for .desi sites reveals just a handful of active domains, all related to porn sites.

The registry seems to have given up on approving zone file requests some time last year, so I have no insight into the kinds of domains currently registered, but ICANN says they are registered to third parties.

None of the registry’s own web sites, save nic.desi, appear to be working, and its Twitter account has been dormant since 2018.

The failure of the business doesn’t appear to be from a lack of channel opportunities. The gTLD is available through most of the major registrars, according to transaction reports, and runs on CentralNic’s back-end.

ICANN said it may transition .desi to an Emergency Back-End Registry Operator while it sorts everything out.

The Registry Transition Process has been invoked just once before, in 2021, after Atrgon’s .wed failed. That gTLD has been using an EBERO, Nominet, for six years.

Most registries that have terminated their gTLD contracts have been dot-brands with no third-party registrants. ICANN just removes those from the root.

.web hit by second ICANN complaint

Altanovo Domains, the Afilias spin-off that is fighting Verisign for control of the .web gTLD, has filed a second Independent Review Process complaint with ICANN.

The filing could add years to Verisign’s launch runway for .web, which it won via secret proxy Nu Dot Co at auction in 2016.

ICANN has not yet published the IRP complaint — presumably it’s being redacted to remove commercially confidential information — but documentation shows Altanovo has “filed” an IRP.

Altanovo and ICANN has been in a Cooperative Engagement Process — a form of negotiation designed to avoid an IRP — since May 3, but a document published July 19 shows that the CEP is now over.

It was quite a brisk process. Other CEPs have been known to last many months.

When the CEP first emerged in May, Verisign was pretty brutal in its reaction, accusing Altanovo of “delay for delay’s sake”.

As the second-place bidder, Altanovo could stand to take control of .web if Verisign’s bid was found to be outside the rules. That was the focus of the first IRP case, which lasted almost four years.

The first IRP panel ruled that ICANN broke its bylaws by failing to consider whether Verisign secretly bidding via NDC broke the new gTLD program rules. But ICANN a couple months ago finally bit the bullet and ruled that Verisign did no wrong.

ICANN decided not to rule on whether Altanovo, then Afilias, broke the auction rules by communicating with NDC during a comms blackout period.

The specific allegations in the new IRP are not yet known. The IRP is only for complaints about ICANN’s actions or inaction breaking its own bylaws and other foundational documents.

Registrar linked to defunct social network terminated

ICANN has terminated a registrar for not paying its fees and other infractions.

ICANN Compliance, in a termination notice effective August 10, said that US-based, Indian-operated Nimzo 98 had failed to provide a Whois service and escrow its registration data.

These secondary breaches seem to be side effects of the fact that the company is no longer operating. It’s been ghosting Compliance since December, according to the notice.

Nimzo, as I blogged in May, seems to have been the in-house registrar of a short-lived social network project name Houm, which offered users a domain name as part of the service bundle.

It peaked at about 21,000 names before it abruptly deleted them all, last October, registry transaction reports show.

At the last count, this March, it had just 270 names under management. ICANN will trigger its De-Accredited Registrar Transition Procedure to move whatever remains today into safer hands.

Next round of gTLDs could come much sooner than expected

Kevin Murphy, July 24, 2023, Domain Policy

ICANN’s next new gTLDs application round may be closer than we thought, after a policy working group dramatically reduced the timetable for completing its work.

The Internationalized Domain Names Expedited Policy Development Process team has managed to shave a whopping 13 months off its schedule, potentially leading to a similar period being shaved off the runway to the next application window.

The IDNs EPDP had expected to deliver its final deliverables — policy recommendations on how IDNs are handled in gTLD applications — in November 2025, meaning the earliest they could be adopted by the ICANN board would be March 2026.

Because the IDNs policy is seen as a critical gating factor to the next round commencing, the date ICANN penciled in for the next application window was May 2026.

But now the IDNs EPDP group has revised its deadline down to October 2024, member Donna Austin told the GNSO Council last Thursday. This could mean the board could approve its work in early 2025.

The new target means that IDNs are no longer the biggest delaying factor on the critical path to the next window — that honor now falls on the “closed generics” problem, which a “small team” of the GNSO and Governmental Advisory Committee have been working on in private all year.

The latest thinking on closed generics is that another EPDP would be formed with an estimated run-time of 96 weeks (22 months) — a mid-2025 end date, in other words.

But there are even question marks over that optimal timeline now, following a less than supportive informal public comment period that closed last week. The closed generics small team has apparently taken a week off to ask itself some fundamental questions.

One possibility that has been suggested to speed things up is to take closed generics out of the critical path by retaining the current de facto ban for the next round.

If that were to happen, we could be looking at an application window in 2025.

But nobody ever won money betting on ICANN hitting deadlines, so take this speculation with a pinch of salt big enough to give an elephant hypertension.

Domainer objects to Epik’s acquisition over Masterbucks collapse

A Los Angeles film production company and its domainer CEO have objected to Epik’s request to transfer its ICANN accreditation from the discredited former registrar Epik Inc to mystery new registrar Epik LLC.

Todd Ryan, CEO of American Business Capital Corporation and a domain investor, has written to ICANN to say that the transfer should be blocked until “all outstanding debts” are paid.

He’s particularly concerned with customers that may have been left out of pocket by Masterbucks, the payments service that has been described as a PayPal clone or simply a jumped-up Epik store credit system.

“The financial losses incurred by customers who utilized Masterbucks, a payment method provided by Epik registrar, are a matter of significant importance,” Ryan wrote.

“It is crucial that ICANN, as the governing body responsible for overseeing the domain registration industry, takes decisive action to ensure that all debts owed to these affected customers are satisfactorily resolved prior to any transfer of registrar accreditation,” he wrote.

Masterbucks was at the center of the old Epik’s financial mismanagement woes, with domainers beginning to complain that they couldn’t withdraw their funds almost a year ago.

Ryan says he’s a member of ICANN’s Business Constituency but does not say in his letter whether he’s owed money.

It’s not clear who currently owns the Masterbucks liabilities. The service was not believed to be part of the deal that saw the Epik registrar acquired from the Inc to the LLC last month.

ICANN’s head of compliance has written that it could take months for the Epik accreditation transfer to be approved (or otherwise).

Ryan also demands that ICANN disclose the identity of Epik LLC’s owners, which is still a bit of a mystery.