L’Oreal’s dot-brand bites the dust

Beauty products maker L’Oreal has withdrawn its new gTLD application for .loreal.
I did not see this one coming.
L’Oreal is among the most prolific applicants for new gTLDs from the offline world, applying for 14 strings in total.
One of its marketing executives even spoke at the Digital Marketing & gTLD Strategy Congress in New York this March.
Its primary dot-brand is its first third application to be dropped.
The company has also applied for dot-brands including .maybelline, .garnier and .lancome, and generics such as .salon, .makeup, .skin and .hair, all of which still appear to be active bids.
Is this indicative of a changing gTLD strategy — perhaps the company has decided to focus on its product brands rather than its company name — or is .loreal merely the first latest of many withdrawals?

Plural gTLDs could be a casualty as ICANN accepts big chunk of GAC advice

ICANN has accepted nine pieces of Governmental Advisory Committee advice pertaining to new gTLDs, essentially killing off two applications and putting question marks over many more.
Notably, the question of whether plural and singular versions of the same string should be allowed to coexist has been reopened for debate, affecting as many as 98 applications.
ICANN’s New gTLD Program Committee, which carries board powers but does not include directors with conflicts of interest, this week passed a resolution that addresses a good chunk of the GAC’s Beijing communique.
It does not discuss any of the amorphous “safeguard” advice from the document, which was subject to a recently closed public comment period and is likely to take much longer to resolve.
By far the line item with the broadest immediate impact is this:

The NGPC accepts this advice and will consider whether to allow singular and plural versions of the same string.

That’s right folks, singular and plural gTLDs (eg, .car and .cars) may not be allowed to coexist after all.
Using a broad interpretation (that treats .new and .news as clashes, for example), 98 applications could be affected by this decision.
Singular vs plural is a contentious issue with some strongly held religious views. Whether you come down on one side or the other depends largely on how you see new gTLDs being used in future.
Proponents of coexistence see a future of 30,000 gTLDs being used as direct navigation and search tools, while opponents worry about the risk of freeloading plural registries making a killing from unnecessary defensive registrations.
The NGPC did not say how the debate would be moved forward, but I’d be surprised if it didn’t involved the broader community through public comments or meetings in Durban next month.
Ding dong…?
Two line items appear to put the final nails in the coffins of two new gTLD applications: DotConnectAfrica’s .africa and GCCIX WLL’s .gcc.
Both clash with the names of geographic regions (.gcc is for Gulf Cooperation Council, a name often associated with nations in the Arabian/Persian Gulf) and received the GAC’s strongest possible form of objection.
In both cases, the NGPC said the applications “will not be approved” and invited the applicants to withdraw.
However, it gave both applicants the right to appeal using “ICANN’s accountability mechanisms”.
Islamic strings on life support
Some governments in the GAC had taken issue with the applications for strings such as .islam and .halal, and the NGPC said it “stands ready to enter into dialogue with the GAC on this matter”.
That’s the Applicant Guidebook-mandated response when the GAC cannot reach a consensus that an application should be killed off.
Amazon among geo strings delayed
As expected, the NGPC decided to work with the GAC’s extended timetable for the consideration of 19 applications whose chosen strings clash with geographic names such as .thai and .persiangulf.
Basically, the GAC asked for more time to discuss them.
In response, ICANN will not delay Initial Evaluation for these applications, but it will not sign contracts with the applicants until the GAC has issued its final advice.
The list includes two big trademarks: retail giant Amazon and the clothing brand Patagonia.
Both will have to wait until at least Durban to discover their fate.
The list also includes .wine and .vin, because some in the wine industry have been kicking up a stink about the protection of special geographic identifiers (eg Champagne, Bordeaux) at the second-level.
Weasel words on community objections
There’s one piece of advice that the NGPC said it has “accepted” but which it clearly has not.
The GAC had said this:

The GAC advises the Board that in those cases where a community, which is clearly impacted by a set of new gTLD applications in contention, has expressed a collective and clear opinion on those applications, such opinion should be duly taken into account, together with all other relevant information.

I think any reasonable interpretation of this item would require ICANN or somebody else to make a subjective judgement call on which applications should win certain contention sets.
To my mind, the advice captures contested strings such as .book (where publishers hate the idea of Amazon running it as a closed generic) and .music (where the music industry favors a restricted registration policy).
But ICANN, always reluctant to have to pick winners and losers, seems to have chosen to interpret the advice somewhat differently. In its response, it states:

The NGPC accepts this advice. Criterion 4 for the Community Priority Evaluation process takes into account “community support and/or opposition to the application” in determining whether to award priority to a community application in a contention set. (Note however that if a contention set is not resolved by the applicants or through a community priority evaluation then ICANN will utilize an auction as the objective method for resolving the contention.)

I don’t think this covers the GAC’s advice at all, and I think the NGPC knows it.
As the parenthetical comment says, communities’ views are only taken into account if an applicant has filed a formal “Community” bid and chooses to resolve its contention set with a Community Priority Evaluation.
To return to the above examples, this may well capture .music, where at least one applicant intends to go the CPE route, but it does not capture .book, where there are no Community applications.
There are 33 remaining Community applications in 29 contention sets.
Will the GAC accept the NGPC’s response as a proper implementation of its advice? If it’s paying attention and feels strongly enough about the issue, my guess is probably not.
More special favors for the Olympics
The International Olympic Committee holds extraordinary power over governments, which has resulted in the GAC repeatedly humiliating itself by acting an Olympic lobbyist before the ICANN board.
In the Beijing communique, it asked ICANN to make sure that the temporary temporary protections granted to Olympics and Red Cross are made permanent in the Applicant Guidebook.
Prior to April, the Registry Agreement in the Guidebook said that the protected strings “shall be initially reserved”, but this language has been removed in the current version of the RA.
The NGPC said that this was due to the GAC’s advice. Box ticked.
But here’s the kicker: the protections will still be subject to a Generic Names Supporting Organization Policy Development Process.
In other words, the discussion is not over. The rest of the ICANN community will get their say and ICANN will try to reconcile what the GNSO decides with what the GAC wants at a later date.
While “accepting” the GAC’s advice, it’s actually proposing something of a compromise. The NGPC said:

Until such time as the GNSO approves recommendations in the PDP and the Board adopts them, the NGPC’s resolutions protecting IOC/RCRC names will remain in place. Should the GNSO submit any recommendations on this topic, the NGPC will confer with the GAC prior to taking action on any such recommendations.

New gTLD registries will not be able to argue in future that their contracts only require them to “initially” protect the Olympic and Red Cross strings, but at the same time the GNSO as a whole gets a say in whether permanent protections are warranted.
It seems like a pretty nice compromise proposal from ICANN — particularly given the problems it’s been having with the GNSO recently — but I doubt the GAC will see it that way.
Other stuff
There were two other items:

• The GAC had advised that no new gTLD contracts should be approved until the 2013 Registrar Accreditation Agreement is finalized. ICANN agreed. It’s already built into the timetable.
• The GAC wanted its existing views taken into account in the current, ongoing, formative discussions about a replacement service for Whois. That’s already happening.

In summary…
…it’s a pretty sensible response from the NGPC, with the exception of the weaselly response to the “community views” advice.
Taken as a whole, it’s notable for its respect for other stakeholders and processes, which is admirable.
Even in the case of .africa and .gcc, which I firmly believed would be dead today, it’s given the applicants the opportunity to go through the appropriate appeals channels.
The GAC, it seems, doesn’t even get the last word with its kiss of death.

GNSO wins minor victory in Trademark+50 dispute

The ICANN board has rescheduled an important decision for trademark owners, apparently at the behest of members of the Generic Names Supporting Organization Council.
The board’s New gTLD Program Committee was due to vote June 11 on whether to approve the rejection of a Reconsideration Request filed by the Non-Commercial Stakeholders Group.
But the item has been removed from the agenda and will now instead be discussed at a new June 18 meeting that appears to have been specially scheduled for the purpose.
The rescheduling follows an appeal by GNSO Councillor Jeff Neuman directly to the committee and other senior ICANNers.
Neuman and others were concerned that a June 11 decision would preempt a discussion of the issue slated for the Council’s June 13 meeting, which would have been very bad for board-GNSO relations.
For the full background, read this post.
Essentially, Neuman and other councilors are worried that ICANN seems to be riding roughshod over the GNSO in an attempt to make a proposal known as “Trademark+50” a part of the new gTLD program.
Trademark+50 is a mechanism that will greatly expand the number of strings trademark owners can submit to the Trademark Clearinghouse and get limited protection for.
The NCSG’s Reconsideration Request had asked ICANN to reconsider its classification of the proposal as an “implementation” change that didn’t require GNSO “policy” review.
But the ICANN board’s Board Governance Committee, which adjudicates such matters, last month rejected the request in what I would describe as a sloppily argued and disconcertingly adversarial decision.
It’s now up to the New gTLD Program Committee, acting for the full board, to rubber-stamp the rejection, clearing the path for Trademark+50 to become law for new gTLD registries.
Rescheduling the decision won’t change the outcome, in my view. Trademark+50 is very probably a done deal.
But voting before the GNSO Council even had a chance to put its concerns to the board would have given fuel to the argument that ICANN ignores the GNSO when it is politically expedient to do so.
ICANN may have dodged a bullet for now, but the dispute continues.

Donuts withdraws its .vote bid, raising questions about new gTLD auctions

One down, only 306 to go! Donuts has withdrawn its application for the .vote new gTLD, leaving an Afilias joint venture as the sole remaining applicant, it emerged today.
It’s reasonable to assume that this is the first result of the private string auctions, designed by Cramton Associates, that are being run by Innovative Auctions this week.
Donuts had submitted .vote to this auction and has previously said that auctions were its preferred method of resolving contention sets.
Either way, the winner of the contention set is Monolith Registry, a joint venture of .info registry Afilias and two individual investors based in Utah.
Monolith is also the only applicant for the Spanish translation, .voto.
It’s the first example of a contention set between competing business models being resolved.
The result tells us a lot about how money talks in the new gTLD program and how it does not evaluate applications based on criteria such as inclusiveness or innovation.
Donuts had proposed a .vote with an open registration policy and no special purpose. People would have been able to register domains there for essentially any reason.
Afilias, on the other hand, intends to tightly restrict its .vote to “official and verified governments and office seekers” in only the United States.
Remarkably, it has the same US-only policy for the Spanish-language .voto, though both applications suggest that eligibility will be expanded to other countries in future.
Cybersquatting is not infrequent in electioneering, so .vote could give voters a way to trust that the web site they visit really does contain the opinions of the candidate.
Pricing is expected to be set at $60 “for the first year” ($100 for .voto), and Afilias reckons there are upwards of one million elected officials and candidates that would qualify for the names in the US alone.
It’s a potentially lucrative business, in other words.
But did the program produce an ideal result here?
Is it better that .vote carries a high price and will be restricted to American politicians? Is it right that other, non-governmental types of voting will be excluded from the TLD?
Or does the result show that the program can produce innovative uses of TLDs? With a couple of restricted namespaces, where voters and politicians can trust the authenticity of the contents (insert politicians-are-liars joke here) is Afilias adding value to the internet?
These types of questions are going to be asked over and over again as more contention set results emerge.

Today’s new gTLD withdrawals: .play and .design

Two new gTLD applications have been withdrawn today: Directi’s .play and Starting Dot’s .design.
They’re the second application to be withdrawn by Directi after .movie, which it pulled last month for undisclosed reasons, and the first of Starting Dot’s five bids to die.
Starting Dot said that it has bowed out of the .design fight because there were “simply too many” other applicants in the contention set: eight including itself.
“It is now setting its focus and energy supporting and helping to grow its four other domains, and especially the two which are single applicant, .ARCHI and .BIO,” the company said.
I don’t believe either string was the subject of the private auctions that are happening this week. At least, they weren’t on the lists published by Demand Media or Donuts.
Directi’s .play bid, the first of the four-way contention set to be withdrawn, faces competition from Amazon and Google — both with “closed generic” models — as well as Famous Four Media.
The gTLD deadpool now comprises 71 withdrawals.

Huge registrar shake-up coming to .biz and .info

Afilias and Neustar will be soon able to sell .biz and .info domains direct, and may have to shut down registrars that refuse to sign up to the new 2013 Registrar Accreditation Agreement.
Those are two of the biggest changes proposed to the companies’ ICANN contracts, drafts of which were published this morning six months after their last registry agreements expired.
The new .biz and .info deals would allow both companies to vertically integrate — that is, own a controlling position in a registrar that sells domains in their respective gTLDs.
This would remove unwanted friction from their sales and marketing efforts, but would mean both registries would start competing with their own registrar channel in the retail market.
That’s currently not allowed in almost all gTLD contracts, but is expected to become commonplace in the era of new gTLDs, which have no such ownership restrictions.
These new vertical integration clauses were not unexpected; it’s been envisaged for a couple of years that the restrictions would be dropped in legacy gTLDs.
What is surprising are newly proposed clauses that would oblige Neustar and Afilias to terminate accredited registrars’ access to their TLDs if they don’t sign up to the 2013 RAA.
Under the process set out in the contracts, when registrars representing 67% of the domains in each given TLD have signed up to the 2013 RAA, all the other registrars would have between 270 and 330 days to also sign up to it or lose their ability to access the .biz/.info registries.
That would mean no selling new names and no accepting inbound transfers — a growth death sentence in the affected TLDs.
In the case of .info, in which Go Daddy has a 45% market share, it would only take the top four registrars to sign up to the 2013 RAA before the clock started ticking for the others.
However, this 67% rule would only kick in for Afilias and Neustar if Public Interest Registry and Verisign also voluntarily agree to the same rules for their .org, .com and .net gTLDs.
It’s a pretty aggressive move by ICANN to push the 2013 RAA onto registrars via its contracts with registries, but not the first.
In the separately proposed base New gTLD Registry Agreement, expected to be finalized in the next few weeks, registrars can only sell new gTLD domains if they’re on the 2013 RAA.
Other changes to the .biz and .info contracts include giving the registries the ability to block certain domains from registration to deal with security threats. Registries have been doing this since Conficker, but now they’ll be explicitly allowed to under their contracts.
They’ll also now be subject to the same emergency back-end transition provisions as new gTLDs, in the event of a catastrophic failure.
Both companies will also get to keep their ability to raise registry fees by 10% a year.
Presumably, given that the US Department of Commerce is not party to the .biz and .info deals, neither registry will get the same nasty surprise that Verisign got last year when Commerce froze its prices.
Both proposed contracts are now open for public comment at ICANN, here and here.
The previous contracts actually expired last December but were extended for six months due to ICANN’s focus on new gTLDs and the fact that it wanted to bring both agreements closer to the new gTLD contract.

Uncontested .catalonia drops out of gTLD race

The regional Government of Catalonia has withdrawn its application for .catalonia.
This is a bit of a weird one.
The application was designated officially “geographic”, but also presented as a single-registrant “dot-brand”, exclusively for the government’s use in promoting tourism.
It wasn’t contested, had no objections and was not covered by Governmental Advisory Committee advice.
Residents of Catalonia, a region of Spain, are of course already served by the .cat TLD, which served as the model for a multitude of regional and cultural gTLD applications.

ICANN hires new VP from Yahoo!

ICANN has poached a Yahoo! executive to head up its outreach efforts in Asia.
Singapore-based Kuek Yu-Chuang, who held a similar role at Yahoo, has been named vice president for global stakeholder engagement for Asia. He starts August 1.
Asia is one of the regions in which ICANN is trying to establish itself a more prominent presence.
Singapore has been named as a “hub”, ostensibly of equal importance to its LA headquarters, and it was announced in April that a satellite office will also be opened in China.
Before Yahoo, Yu-Chuang had experience working for the Singapore government.

Four registrars terminated

Four small domain name registrars have lost their ICANN accreditation and their domain names have been transferred to another.
ICANN announced on Friday that US-based C I Host and Central Registrar (Domainmonger.com), along with Panama-based Power Brand Center have all been terminated for non-compliance.
Breach notices had been sent earlier this year covering everything from broken Whois to a failure to cooperate with audits.
Dotted Ventures, also American, had allowed its accreditation to lapse in March. It had, however, also been sent a breach notice for non-payment of ICANN fees in April.
The gTLD domains they managed, which amount to between a couple of hundred and a couple of thousand each, have all been transferred to UK-based Astutium, which isn’t much bigger.
Customers of each terminated registrar will receive notices from Astutium instructing them how to proceed, ICANN said. There shouldn’t be a cost to transfer, so any request for cash may be a phishing attack.

Verisign says people might die if new gTLDs are delegated

If there was any doubt in your mind that Verisign is trying to delay the launch of new gTLDs, its latest letter to ICANN and the Governmental Advisory Committee advice should settle it.
The company has ramped up its anti-expansion rhetoric, calling on the GAC to support its view that launching new gTLDs now will put the security and stability of the internet at risk.
People might die if some strings are delegated, Verisign says.
Among other things, Verisign is now asking for:

• Each new gTLD to be individually vetted for its possible security impact, with particular reference to TLDs that clash with widely-used internal network domains (eg, .corp).
• A procedure put in place to throttle the addition of new gTLDs, should a security problem arise.
• A trial period for each string ICANN adds to the root, so that new gTLDs can be tested for security impact before launching properly.
• A new process for removing delegated gTLDs from the root if they cause problems.

In short, the company is asking for much more than it has to date — and much more that is likely to frenzy its rivals — in its ongoing security-based campaign against new gTLDs.
The demands came in Verisign’s response to the GAC’s Beijing communique, which detailed government concerns about hundreds of applied-for gTLDs and provided frustratingly vague remediation advice.
Verisign has provided one of the most detailed responses to the GAC advice of any ICANN has received to date, discussing how each item could be resolved and/or clarified.
In general, it seems to support the view that the advice should be implemented, but that work is needed to figure out the details.
In many cases, it’s proposing ICANN community working groups. In others, it says each affected registry should negotiate individual contract terms with ICANN.
But much of the 12-page letter talks about the security problems that Verisign suddenly found itself massively concerned about in March, a week after ICANN started publishing Initial Evaluation results.
The letter reiterates the potential problem that when a gTLD is delegated that is already widely used on internal networks, security problems such as spoofing could arise.
Verisign says there needs to be an “in-depth study” at the DNS root to figure out which strings are risky, even if the volume of traffic they receive today is quite low.
It also says each string should be phased in with an “ephemeral root delegation” — basically a test-bed period for each new gTLD — and that already-delegated strings should be removed if they cause problems:

A policy framework is needed in order to codify a method for braking or throttling new delegations (if and when these issues occur) either in the DNS or in dependent systems that provides some considerations as to when removing an impacting string from the root will occur.

While it’s well-known that strings such as .home and .corp may cause issues due to internal name clashes and their already high volume of root traffic, Verisign seems to want every string to be treated with the same degree of caution.
Lives may be on the line, Verisign said:

The problem is not just with obvious strings like .corp, but strings that have even small query volumes at the root may be problematic, such as those discussed in SAC045. These “outlier” strings with very low query rates may actually pose the most risks because they could support critical devices including emergency communication systems or other such life-supporting networked devices.
…
We believe the GAC, and its member governments, would undoubtedly share our fundamental concern.

The impact of pretty much every recommendation made in the letter would be to delay or prevent the delegation of new gTLDs.
A not unreasonable interpretation of this is that Verisign is merely trying to protect its $800 million .com business by keeping competitors out of the market for as long as possible.
Remember, Verisign adds roughly 2.5 million new .com domains every month, at $7.85 a pop.
New gTLDs may well put a big dent in that growth, and Verisign doesn’t have anything to replace it yet. It can’t raise prices any more, and the patent licensing program it has discussed has yet to bear fruit.
But because the company also operates the primary DNS root server, it has a plausible smokescreen for shutting down competition under the guise of security and stability.
If that is what is happening, one could easily make the argument that it is abusing its position.
If, on the other hand, Verisign’s concerns are legitimate, ICANN would be foolhardy to ignore its advice.
ICANN CEO Fadi Chehade has made it clear publicly, several times, that new gTLDs will not be delegated if there’s a good reason to believe they will destabilize the internet.
The chair of the SSAC has stated that the internal name problem is largely dealt with, at least as far as SSL certificates go.
The question now for ICANN — the organization and the community — is whether Verisign is talking nonsense or not.