New gTLD marketing conference coming to New York

Momentum Consulting has announced a conference focused on marketing with new gTLDs for New York City next March.
The Digital Marketing & gTLD Strategy Congress is designed for brand managers, trademark lawyers and marketing executives, according to organizers.
The preliminary agenda was published today. It includes speakers from Citibank, which has applied for two new gTLDs, Neustar, Afilias, Domain Diction, PIR, Deloitte and Donuts.
ICANN CEO Fadi Chehade has also been invited to deliver the keynote, according to the agenda.
Lead sponsors include Afilias and Domain Diction. DI, Domain Name Wire and The Domains are media sponsors.
The event will run from March 11 to 12 in New York City. The venue does not appear to have been confirmed yet.

Geo gTLD applicants make “public interest” case for priority approval

ICANN’s has reached out to governments supporting geographic gTLD applicants over the last week, urging them to submit formal comments on the proposed “Draw” mechanism for prioritizing applications.
A barrage of correspondence from regional and city governments, some dating back as early as March when Digital Archery was still in play, has been published by ICANN over the last 48 hours.
They’re accompanied by much more recent responses from ICANN’s newly installed new gTLD program general manager, Christine Willett.
ICANN has heard from, among others, the state backers of .tirol, .zuerich, .hamburg and .berlin, all arguing that their geographic gTLD bids should be prioritized as being in the “public interest”.
The Draw mechanism would give priority to internationalized domain names, but not geographic gTLDs.
What’s missing from all the letters are any attempts to explain or justify the “public interest” claims.
ICANN’s responses are all the same: thanks for your letter, please contribute to the current public comment period on the proposed new gTLD prioritization lottery.
The letters can all be found on ICANN’s correspondence page. The comment period closes Friday.

Chehade sets out 12-point plan for next six months

ICANN CEO Fadi Chehade has set out his goals for ICANN over the next six months in an open letter to the community.
The ambitious 12-point to-do list includes finishing off the next Registrar Accreditation Agreement, finalizing the Trademark Clearinghouse, and launching “a community effort” to address the Whois debate.
The document was described by Chehade at the close of the Toronto meeting last month as his “scorecard” for “what I plan to prioritize and do between now and Beijing”.
The next big ICANN meeting is in Beijing next April.
The letter states that “operational excellence”, something the organization was frequently criticized for its lack of under its previous leadership, is ICANN’s “highest priority”.
The new gTLD program is naturally a big part of that. Chehade said that ICANN plans to:

Deliver on every aspect of the new gTLD program launch next year, meeting obligations and securing the necessary resources and personnel to lead the transition from what has been a policy-driven effort to implementation of a responsive and reliable operation. As a first step, we are working to advance the dialogue on implementation of the Trademark Clearing House. We must also execute the prioritization draw, evaluations, and pre-delegation tests flawlessly.

As part of that effort, a new gTLD services department will be created. Part of its task will be to monitor policy work to make sure the policies being created are “implementable”.
Chehade said that the divisive Whois issue, which he controversially referred to as an “easy” problem to solve during remarks in Toronto, will be subject to a new review:

To strengthen our commitment to the public interest, we will launch a community effort addressing the WHOIS debate in a strategic way, to resolve the longstanding open items in this area.

On the RAA, Chehade said that ICANN “will plan to reach consensus on a solid and enforceable Registrar Accreditation Agreement that is fair and balanced.”
The full letter, which also sets out goals for internationalization and the evolution of the multi-stakeholder model, can be downloaded here.

ICANN’s new gTLD fund at $352.3m

ICANN had $352.3 million in its new gTLD program bank account as of October 13, according to notes from a recent board meeting.
The numbers suggest that ICANN had only spent about $6 million on the program since the application window closed at the end of May.
With 1,930 applications at $186,000 a pop, excluding the seven refunds, ICANN should have grossed about $358 million.
The money is being held in a non-interest-bearing account, partly due to ICANN’s insistence that the program is not an exercise in self-enrichment.
Notes from the October 13 Board Finance Committee meeting also reveal that ICANN plans to revise its 2013 budget to account for the accelerated gTLD timetable.
The current budget was prepared before Digital Archery was scrapped and ICANN expected to process its applications in batches over two years. It now expects one batch lasting one year.

TLDH expects gTLD auctions in second half of 2013

While some new gTLD portfolio applicants are trying to get their contention sets resolved as quickly as possible, Top Level Domain Holdings reckons auctions won’t happen until the second half of 2013.
In a trading update this week, the company also said that it expects to start seeing revenue from its first successful new gTLD applications next year, with contested bids producing revenue in 2014.
TLDH said in a statement:

Provided that the ICANN proposed timetable is broadly adhered to, the Board of TLDH believes that a number of the Group’s 17 uncontested gTLD applications on its own behalf and the 5 uncontested client gTLD applications are likely to be revenue producing in 2013, with the balance becoming so in the first half of 2014. TLDH has commenced discussions with the leading worldwide registrars, premium name specialists, and secondary market platforms for distribution of these gTLD names.
TLDH is also working with other gTLD applicant groups to define formats for private auctions and other name resolution arrangements in respect of the contested names that TLDH has applied for. The Board expects that these auctions are likely to happen in the second half of 2013.

As we reported last week, fellow portfolio applicant Donuts approached competing applicants at the Toronto ICANN meeting last month with a proposal for running private auctions in early 2013.
The idea was not warmly received by many, we hear, and TLDH evidently does not agree.
The company also revealed this week that it plans to move its headquarters to Dublin, Ireland, and expects to start hiring more staff and directors in the near future.
Clark Landry, who has been a non-executive director of TLDH for several years, has left the board, TLDH announced.
Caspar von Veltheim, who has been managing some of TLDH’s geographic gTLD bids in Europe, has joined the board as an executive director, the company added.

Verisign defends .com price increases

Verisign has assured investors that it is confident its .com registry agreement is not in jeopardy, after seeing its stock plummet due to uncertainties over the deal.
In a statement yesterday, the company also defended the planned continuation of its price-raising powers.
It emerged last week that the US Department of Commerce is looking into the pricing arrangements of the new .com deal, which ICANN approved back in June.
Commerce has the right — in consultation with the Department of Justice and others — to approve or reject the contract based on its security/stability and pricing terms.
Whatever happens, it’s virtually unthinkable that Verisign will lose the contract. The company said:

While the review process with the Commerce Department may extend beyond Nov. 30, 2012, it could also be concluded by Nov. 30, 2012. In either case, Verisign expects to continue to run the .com registry.

It also said that its ability to increase prices by 7% in four of the six years of the contract is in fact in the public interest, saying in a lengthy statement:

The .com registry has an unequaled record of achievement, with full availability of DNS resolution in .com for more than 15 consecutive years. The economic activity supported by the .com registry is significant by any measure in an environment where the consequences of a failure of even a very short duration or degradation of the Domain Name System (DNS) resolution service, due to either a cyber attack or failure of hardware, software, or personnel, would have significant economic and non-economic impacts to the global economy.
The level of security and stability offered by Verisign is only possible with investments in overcapacity and redundancy, network security, intellectual property (IP) and in human capital: The engineers and employees at Verisign who operate the .com registry and ensure its security and stability. The pricing terms of the .com Registry Agreement enable Verisign to make these investments, develop the necessary IP, know-how and purpose-built systems, respond to new threats to stability as they emerge, and recruit and retain the specialized talent necessary to maintain our network, including dozens of globally distributed constellation sites and data centers in the U.S. and elsewhere.

In essence, Verisign is saying that the security and stability record — which Commerce evidently has already reviewed to its satisfaction — are inextricably linked to its ability to raise prices.
The company’s share price fell 18% in the aftermath of last week’s news, but recovered slightly yesterday — gaining about 11% — after the statement was released.

ICANN looking for new gTLD testing provider on very tight deadline

ICANN is seeking one or more pre-delegation testing providers for its new gTLD program on a very ambitious timetable.
An RFP issued yesterday calls for a company that can scratch-build a testing suite to put new gTLD applicants through the ringer before they go live, and have it up and running by March 25, 2013.
Pre-delegation testing is the last stage of the new gTLD program’s approval process.
Some new gTLD applicants have recently called on ICANN to begin testing as soon as possible — before even Initial Evaluation has finished — in order to speed up time to market.
The Applicant Guidebook suggests that ICANN itself would be doing the testing, and some applicants had made that assumption, but that’s clearly not the case.
The RFP spells out exactly what is required of the testing providers.
First, they’re expected to build bespoke software to run the tests.
In addition to load-testing and verifying the registry’s compliance with standards such as EPP, DNSSEC and Whois, it also needs a custom-made user interface for applicants and back-end integration with ICANN’s wobbly TLD Application System.
ICANN also wants to be able to open-source the software, which seems to rule out any off-the-shelf testing suites.
RFP respondents also need to be able test 20 applicants’ back-ends per week — potentially scaling up to 100 per week — as soon as ICANN starts signing registry agreements next year.
ICANN does not expect to announce the winning provider(s) until December 5. The deadline for responses is November 20.
In short, it looks like a challenging project on a very tight deadline.
I wonder how much institutional knowledge there is out there of, say, DNSSEC, in companies that are not also involved in new gTLD applications as either applicant or back-end.
The pool of possible RFP respondents is likely very small indeed.
The ability to run tests on the testing suite itself may also be limited by the timetable and the possible shortage of guinea-pig registry back-ends.
Why ICANN has waited until this very late date to issue the RFP is a real head-scratcher.
ICANN is offering a 24-month contract with a possible 12-month extension. The RFP can be downloaded here.

Demand Media: ignore our Republican gTLD rivals

Demand Media has asked ICANN to “ignore” complaints from the US Republican party about its application for the .republican gTLD.
Last month, the Republican National Committee and the Republican State Leadership Committee submitted comments to ICANN arguing that Demand would be an unsuitable custodian for the gTLD.
Demand is best known for its “unofficial, mediocre and sometimes incorrect” content farms, such as eHow, the letter (pdf) said.
The company should not be allowed to run .republican because it implies endorsement by the Republican party, or some kind of community backing for a non-Community application, the letter said.
This week, Demand has responded, saying it’s nothing but competitive posturing, given that the RSLC has applied for .gop (for “Grand Old Party”, a nickname for the Republicans):
A letter to ICANN from Demand subsidiary and .republican applicant United TLD Holdco, says:

Because the RSLC and RNC have applied for .GOP, an arguably competing string, it is easy to see through these arguments and ignore them as nothing more than an attempt to undermine the credibility of United TLD in order to gain a competitive advantage.
…
By their own admission, RSCL and RNC agree that “.REPUBLICAN has the potential to be a very powerful gTLD.” It is natural then, that they would attempt to discredit United TLD in the hope of eliminating competition for their own string.

The thrust of Demand’s rebuttal is that Republicanism is not an exclusively American movement — other parties around the world use the name — and that it also has generic meaning.
It further argues that the quality of the content Demand provides elsewhere is irrelevant, because the company plans to sell .republican domain names, not produce content there.
Demand has also applied for .democrat, the other major US political party, but did not receive any complaints from the Democratic party during the designated ICANN comment period.

Trademark protection stalemate follows ICANN 45

Trademark interests and new gTLD applicants are at odds about trademark protection — again — following the ICANN meeting in Toronto two weeks ago.
In a welcomed, not-before-time show of cooperation, the Intellectual Property Constituency and Business Constituency submitted to ICANN a bulleted list of requests for improved rights protection mechanisms.
The list is, for the most part, not particularly egregious — calling for a permanent Trademark Claims service and a Uniform Rapid Suspension service that meets its cost goals, for example.
But the New TLD Applicants Group (NTAG), an observer component of the Registries Constituency, has dismissed it out of hand, anyway, saying that the time for policy changes is over.
Here’s the IPC/BC list:

1. Extend Sunrise Launch Period from 30 to 60 days with a standardized process.
2. Extend the TMCH and Claims Notices for an indefinite period; ensure the process is easy to use, secure, and stable.
3. Complete the URS as a low cost alternative and improve its usefulness – if necessary, ICANN could underwrite for an initial period.
4. Implement a mechanism for trademark owners to prevent second-level registration of their marks (exact matches, plus character strings previously determined to have been abusively registered or used) across all registries, upon payment of a reasonable fee, with appropriate safeguards for registrants with a legitimate right or interest.
5. Validate contact information for registrants in WHOIS.
6. All registrars active in new gTLD registrations must adhere to an amended RAA for all gTLD registrations they sponsor.
7. Enforce compliance of all registry commitments for Standard applications.
8. Expand TM Claims service to cover at least strings previously found to have been abusively registered or used.

Most of these requests are not entirely new, and some have been rejected by the ICANN policy-development process and its board of directors before.
The NTAG points out as much in a letter to ICANN management last week, which says that new gTLD applicants paid their application fees based on promises in the Applicant Guidebook, which should not be changed.

Many of the BC & IPC proposed policy changes have been considered and rejected in no fewer than four different processes and numerous prior Board decisions. Indeed, many go far beyond the recommendations of the IRT, which was comprised almost exclusively of trademark attorneys. These last-minute policy recommendations amount to just another bite of the same apple that already has been bitten down to its core.
The new gTLD policy development process is over. Applicants relied on the policies in the final Guidebook in making business decisions on whether to apply. At the time that ICANN accepted applications and fees from applicants, ICANN and applicants entered into binding agreements. ICANN should not change these agreements unilaterally without extraordinary reason and especially not when it would materially harm the counterparties to the agreements.

The Applicant Guidebook, as it happens, asks applicants to explicitly acknowledge that ICANN may make “reasonable
updates and changes” to the rules, even after the application has been submitted.
But if applicants reckon changes would create a “material hardship”, ICANN is obliged to “work with Applicant in good faith to attempt to make reasonable accommodations in order to mitigate any negative consequences”

US probing Verisign price hikes, .com contract may be extended

The US Departments of Commerce and Justice are investigating the price increase provisions of Verisign’s .com registry agreement.
Verisign CEO Jim Bidzos disclosed the “review” on a conference call with financial analysts tonight.
It is likely that it will last beyond November 30 2012, the date the current .com agreement expires, he said.
“There’s a possibility it will not be complete by November 30,” he said.
A special six-month extension is likely to be triggered, he said.
“The status of our ability to operate .com is not an issue here,” he said.
He declined to comment on questions related to the likelihood that the company would be forced to change its pricing plans.
Verisign has spent $3.9 million in legal and other fees related to the US review, it emerged during the call.
ICANN approved the contract, which gives Verisign the right to increase its .com registry fees by 7% in four of the next six years, in June.
ICANN will see an extra $8 million in revenue from Verisign as a result.
Due to the special nature of .com, Justice and Commerce approval is required before the contract can be renewed. Verisign had previously expected that to come before November 30.
Verisign shares are trading down 14% in after-hours trading following the news.