Six big reasons we won’t see any new gTLD launches until Q3

ICANN’s announcement of a big media bash in New York on April 23, to announce the launch of new gTLDs, has gotten many people thinking the first launches are imminent.
Wrong.
We’re not going to see any new gTLD domains on sale until the third quarter at the earliest, in my view, and here are a few good reasons why.
April 23 is just a PR thing
ICANN has said that April 23 is primarily about awareness-raising.
Not only does it hope to garner plenty of column inches talking about new gTLDs — helping the marketing efforts of their registries — it also hopes to ceremonially sign the first Registry Agreements.
I think CEO Fadi Chehade’s push to make the industry look more respectable will also play a part, with the promotion of the Registrant Rights and Responsibilities document.
But there’s never been any suggestion that any strings will be delegated at that time, much less go live.
The contracts are still hugely controversial
If ICANN wants to sign a Registry Agreement on April 23, it’s going to need a Registry Agreement to sign.
Right now, applicants are up in arms about ICANN’s demand for greater powers to amend the contract in future.
While ICANN has toned down its proposals, they may still be unacceptable to many registries and gTLD applicants.
Applicants have some impetus to reach agreement quickly — because they want to launch and start making money as soon as possible.
But ICANN wants the same powers added to the 2013 Registrar Accreditation Agreement, and registrars are generally less worried about the speedy approval of new gTLDs.
ICANN has tied the approval of the RA and the RAA together — only registrars on the new RAA will be able to sell domains in new gTLDs.
Chehade has also made it clear that agreement on the new RAA is a gating issue for new gTLD launches.
If registries, registrars and ICANN can’t settle these issues in Beijing, it’s hard to see how any contracts could be signed April 23. The first launch would be delayed accordingly.
GAC Advice might not be what we’re expecting
GAC Advice on New gTLDs is, in my view, the biggest gating issue applicants are facing right now.
GAC Advice is an integral part of the approval process outlined in the Applicant Guidebook and ICANN has said many times that it cannot and will not sign any contracts until the GAC has spoken.
But what does that mean from a process and timing point of view?
According to the Applicant Guidebook, if an application receives GAC Advice, it gets shunted from the main evaluation track to the ICANN board of directors for consideration.
It’s the only time the ICANN board has to get directly involved with the approval process, according to the Guidebook’s rather complex flow-charts.
GAC Advice is not an automatic death sentence, but any application the GAC is unanimously opposed to stands a very slim chance of getting approved by the board.
Given that ICANN is has said it will not sign contracts until it has received GAC Advice, and given that it has said it wants to sign the first contract April 23, it’s clearly expecting to know which applications are problematic and which are not during the next three weeks.
But I don’t think that’s necessarily going to happen. The GAC moves slowly and it has a track record of missing ICANN-imposed deadlines, which it often seems to regard as irksome.
Neither ICANN nor the GAC have ever said GAC Advice on New gTLDs will be issued during next week’s public meeting in Beijing. If a time is given it’s usually “after” or “following” Beijing.
And I don’t think the GAC, which decided against holding an inter-sessional meeting between Toronto and Beijing, is remotely close to providing a full list of specific applications of concern.
I do think a small number of slam-dunk bad applications – such as DotConnectAfrica’s .africa bid – will get Advised against during or after the Beijing meeting.
But I also think the GAC is likely to issue Advice that is much broader, and which may not provide the detail ICANN needs to carry the process forward for many applicants.
The GAC, in its most recent (delayed) update, is still talking about “categories” of concern – such as “consumer protection” and “geographical names” – some of which are very broad indeed.
Given the limited amount of time available to it in Beijing, I think it’s quite likely that the GAC is going to produce advice about categories as well as about individual applications.
And, crucially, I don’t think it’s necessarily going to give ICANN a comprehensive list of which specific applications fall into which categories.
If the GAC decides to issue Advice under the banner of “consumer protection”, for example, somebody is going to have to decide which applications are captured by that advice.
Is that just strings that relate to regulated industries such as pharmaceuticals or banking? Or is it any string that relates to selling stuff? What about .shop and .car? Shops and cars are “regulated” by consumer protection and safety laws in most countries.
Deciding which Advice covered which applications would not be an easy task, nor would it be a quick one. I don’t think the GAC has done this work yet, nor do I think it will in Beijing.
For the GAC to reach consensus advice against specific applications will in some cases require GAC representatives to return to their capitals for guidance, which would add delay.
There is, in my view, a very real possibility of more discussions being needed following Beijing, just in order to make sense of what the GAC comes up with.
The new gTLD approval process needs the GAC to provide a list of specific applications or strings with which it has concerns, and we may not see that before April 23.
ICANN may get a short list of applications that definitely do have Advice by then, but it won’t necessarily know which applications do not, which may complicate the contract-signing process.
The Trademark Clearinghouse still needs testing
The Trademark Clearinghouse is already, in one sense, open for business. Trademark owners have been able to submit their marks for validation for a couple of weeks now.
But the hard integration work has not been done yet, because the technical specifications the registries and registrars need to interface with IBM’s TMCH database have not all been finalized.
When the specs are done (it seems likely this will happen in the next few weeks), registries and registrars will need to finish writing their software and start production testing.
ICANN’s working timetable has the TMCH going live July 1, but companies that know much more than me about the technical issues at play here say it’s unlikely that they’ll be ready to go live with Sunrise and Trademark Claims services before August.
It’s in everyone’s interests to get all the bugs ironed out before launch.
For new gTLD registries, a failure of the centralized TMCH database could mean embarrassing bugs and downtime during their critical launch periods.
Trademark owners and domain registrants may also be concerned about the potential for loopholes.
For example, it’s still not clear to some how Trademark Claims – which notifies registrants when there’s a clash between a trademark and a domain they want – will interact with landrush periods.
Does the registrant only get a warning when they apply for the domain, which could be some weeks before a landrush auction? If so, what happens if a mark is submitted to the TMCH between the application and the auction and ultimate registration?
Is that a loophole to bypass Trademark Claims? Could a registrant get hit by a Claim after they’ve just spent thousands to register a domain?
These are the kinds of things that will need to be ironed out before the TMCH goes fully live.
There’s a sunrise notice period
The sunrise period is the first stage of launch in which customers get to register domain names.
Lest we forget, ICANN recently decided to implement a mandatory 30-day notice period for every new gTLD sunrise period. This adds a month to every registry’s go-live runway.
Because gTLD sunrise periods from now on all have to use the TMCH, registries may have to wait until the Clearinghouse is operational before announcing their sunrise dates.
If the TMCH goes live in July, this would push the first launch dates out until August.
Super-eager registries may of course announce their sunrise period as soon as they are able, and then delay it as necessary to accommodate the TMCH, but this might carry public relations risks.
Verisign’s security scare
It’s still not clear how Verisign’s warning about the security risks of launching new gTLDs on the current timetable will be received in Beijing.
If the GAC reckons Verisign’s “concerns” are valid, particularly on the issue of root zone stability, ICANN will have to do a lot of reassuring to avoid being advised to delay its schedule.
Could ICANN offer to finish off its work of root zone automation, for example, before delegating new gTLDs? To do so would add months to the roll-out timetable.

Right Of The Dot gets legal opinion: new gTLD auctions not illegal

Right Of The Dot, one of the companies hoping to offer contention set resolution services to new gTLD applicants, has published a legal opinion arguing that auctions are not inherently illegal.
The document was issued in response to Uniregistry’s claim that the US Department of Justice has refused to give auctions a green light under antitrust law.
ROTD hired the law firm Lewis Brisbois Bisgaard & Smith, including a partner with DoJ experience, to draft the statement.
It’s aimed at lawyers, primarily, but the gist of it is that simply participating in an auction is not illegal in and of itself — participants would have to collude in some other way too.
It states:

The finding of an antitrust violation necessarily would depend on a showing that the private auction unreasonably restrained interstate trade or commerce.
The question comes down to the conduct of the parties to an auction, be it a private auction or an ICANN Last Resort Auction.
If the parties to an auction, engage in collusion such as price fixing and/or bid rigging, it constitute per se violations of Section 1 of the Sherman Act.
It’s not the auction provider that creates a violation it’s the action of the parties to an auction and those actions can take place in an ICANN Last Resort auction.

In other words, there’s no difference between an ICANN-run auction, in which ICANN gets paid, and a private auction in which the participants and the auctioneer get paid, according to these lawyers.
Uniregistry’s argument as I understand it, on the other hand, is that simply participating in an action that could constitute illegal collusion, because ICANN ends up out of pocket.
Who’s right? Who’s wrong?
I think the only person who could answer that, in light of the DoJ’s refusal to intervene, would be a judge. We’re unlikely to get an answer unless somebody sues somebody.

ANA calls for new gTLDs delay, again

The Association of National Advertisers has seized upon Verisign’s recent report into the security risks of ICANN’s new gTLD timetable to call for delays to the program.
In a blog post yesterday, ANA vice president Dan Jaffe said ICANN’s dismissal of the surprising Verisign letter is “like the Captain of the Titanic before the crash saying that the dangers of icebergs had been discussed for years.”
The post highlights the lack of finalized Trademark Clearinghouse specs as “one of the greatest concerns”, saying “millions of customers are the ones who will face harm”.
That’s not strictly true, of course. New gTLD registries are contractually unable to launch until the TMCH is ready, so the risk of registrants being harmed by the lack of specs today is a non-starter.
The ANA also points to ongoing concerns about proposed TLDs such as .corp and .home, which run the risk of clashing with existing private TLDs used on internal corporate and ISP networks.
It’s on much firmer ground here. If a user tries to access a LAN resource on a .corp domain while roaming, what’s to stop them sending sensitive data to a third-party web site instead?
I’ve yet to see a compelling reason why this is not a problem, but it’s not yet known whether the many applications for .corp, .home and similar strings have passed their ICANN technical evaluations.
The ICANN application form asked applicants to disclose potential operational problems such as these, but some applicants that were very familiar with the problem decided not to do so.
But the ANA’s main concern is its belief that new gTLDs will increase cybersquatting and increase the cost of defensive registrations, of course.
“Adequate steps have not been taken to protect Internet users, and we are headed toward uncharted waters with major danger to consumers, brandholders, and the Internet itself,” Jaffe wrote.
“The only prudent action for ICANN now is to delay this arbitrary domain name roll-out until it has fixed these very serious problems.”

NameJet and Afternic sign another gTLD launch

NameJet and Afternic will provide launch auctions and premium name distribution for the .build gTLD, should it be approved, the two companies have announced.
The deal was inked with applicant Plan Bee LLC, which is affiliated with Minardos Group, a construction company.
The two companies will handle auctions under the sunrise and landrush phases, according to a press release.
It’s the second such deal to be announced by the Afternic/Namejet partnership to date, after WhatBox’s .menu. The companies are also working with Directi’s .pw registry.
Plan Bee has also applied for .expert and .construction, but these are both contested so there’s less certainty that they’ll end up approved.
The applicant reckons it will be able to bring .build to market in the fourth quarter of this year.
With a prioritization number of 1,049 in ICANN’s queue, this may prove optimistic, depending on how the remaining portions of the program — such as predelegation testing and contracting — pan out.

ICANN selects new gTLD backup providers

Neustar, Nominet and CNNIC have been picked to provide backup registry services for new gTLDs that fail.
ICANN has named the three companies as Emergency Back-End Registry Operators for the new gTLD program.
They’ll be responsible for taking over the management of any new gTLD that goes out of business, putting registrants at risk of losing DNS resolution and registry functions.
The idea is that the EBERO(s) would be paid out of funds placed in escrow by gTLD applicants, in order to gracefully wind down any failed TLD over the space of a few years.
In reality, I doubt there’s going to be much call for their services; M&A activity is a more likely outcome for gTLDs that fail to meet their sales expectations.
ICANN highlighted the geographic diversity of the three companies (Nominet is British, Neustar American and CNNIC Chinese) as a stability benefit of its selections.
The three were chosen from 14 respondents to an RFI published last year.
The absence of an EBERO was one of the shortfalls of the new gTLD program highlighted by Verisign in its recent letter warning ICANN about perceived security and stability risks.
While ICANN has acknowledged that the EBEROs are unlikely to be ready to roll before the first new gTLDs start to launch, it has noted that they don’t need to be.
If any new gTLD catastrophically fails during the first few months of launch, it will reflect extremely poorly on the financial and technical evaluations applicants have been undergoing for the last nine months.

ICANN tones down power grab in new gTLD contract

ICANN has published a new version of its Registry Agreement for new gTLD operators that waters down the controversial unilateral right to amend provisions.
The revised RA, available for review here, makes it harder for ICANN to force new rules on registries without their consent, at least when compared to the version published in February.
The Special Amendment process is designed to allow ICANN to change the contract when it’s in the public interest.
DI outlined the changes to the process last week.
While most of the changes we described have in fact made it to the published RA, we were wrong on one count: despite what we reported, ICANN directors with conflicts of interest will not be able to vote.
That means representatives of registries and registrars won’t get a say when the board discusses their contracts.
A couple of other significant changes are apparent:

• Concessions to dot-brand registries. It would now be harder for ICANN to redelegate a dot-brand to another operator if the registry abandons its gTLD. ICANN has never had any intention of doing so, of course, but the relative lack of safeguards have been making dot-brand applicants nervous for years. Now, existing intellectual property rights would be taken into consideration during redelegation decisions.
• More secrecy. There’s a new section on “confidential information”, along with references to it sprinkled throughout, designed to protect trade secrets registries may disclose to ICANN.

ICANN CEO Fadi Chehade is expected to play hard-ball on these changes, according to recent reports.
Because registries get a perpetual right of renewal, and because it’s uncertain how the power balance will hang in policy-making, ICANN believes it would be irresponsible to sign an RA that does not give it the right to step in an protect the public interest in future.

Governments expand gTLD objection shortlist

With the start of its meetings in Beijing just a couple of days away, ICANN’s Governmental Advisory Committee has handed out clues as to which new gTLDs it might object to.
The GAC says that 20 specific bids have already been put forward by one government as potential recipients of GAC Advice, but that there are nine broad categories of concern.
Some of the categories seem to obviously apply to certain narrow types of gTLD, while others are broad enough to catch almost any bid the GAC doesn’t like the look of.
Any application that receives adverse GAC Advice at the end of the Beijing meeting faces, at the very least, a prolonged approval process along the lines of what .xxx had to endure.
The worst-case scenario is rejection of the bid by the ICANN board of directors.
These are the GAC’s categories, along with some educated guesses about which strings they could apply to:

• “Consumer protection” — could apply to anything, depending on how well-lobbied the GAC has been by a particular interest group. Any gTLD that could implausibly be argued to increase the risk of counterfeiting may show up here. A liberal interpretation could well capture .music or sports-related strings.
• “Strings that are linked to regulated market sectors, such as the financial, health and charity sectors” — Dozens of applications, such as those for .lawyer, .doctor, .health .bank, and .charity — will fall into this category.
• “Competition issues” — This most likely applies to applications for category-killer dictionary words where the applicant is already a dominant player in the relevant market, such as Google’s bid for .search or Amazon’s for .book.
• “Strings that have broad or multiple uses or meanings, and where one entity is seeking exclusive use” — Again, this could apply to the many controversial “closed” gTLD applications.
• “Religious terms where the applicant has no, or limited, support from the relevant religious organisations or the religious community” — I suspect that the the Vatican’s application for .catholic is less at risk than a Turkish company’s bid for .islam. Any Islam-related domains are likely to fail the “support” test, given the lack of centralized control over the religion.
• “Minimising the need for defensive registrations” — A category that seems to have been specially created for .sucks.
• “Protection of geographic names” — Most probably will be used to kill off DotConnectAfrica’s application for .africa and Patagonia Inc’s application for .patagonia. But will Amazon’s dot-brand bid also fall foul?
• “Intellectual property rights particularly in relation to strings aimed at the distribution of music, video and other digital material” — If the GAC buys into the lobbying and believes that an unrestricted .music or .movie gTLD would increase piracy, expect objections to some of those bids. The GAC doesn’t have to provide a shred of evidence to support its Advice at first, remember, so this is not as ludicrous a possibility as it sounds.
• “Support for applications submitted by global authorities” — This is a newly added category. If the GAC is proposing to submit advice in support of one application in a contention set, there’s no mechanism ICANN can use to ensure that he supported applicant wins the set. The Advice may turn out to be useless. Certain sports-related applications are among those with “global authority” backing.
• “Corporate Identifier gTLDs” — Not, as this post originally speculated, dot-brands. Rather, this applies to the likes of .inc, .corp, .llc and so on.
• “Strings that represent inherent government functions and/or activities” — Expect military-themed gTLDs such as .army and .navy to feature prominently here. Could also cover education and healthcare, depending on the government.

The GAC also plans to consider at least 20 specific applications that have been put forward as problematic by one or more governments, as follows:

Community name where the applicant does not have support from the community or the government: 1
Consumer protection: 2
Name of an Intergovernmental Organisation (IGO): 1
Protection of geographic names: 9
Religious terms: 2
Strings applied for that represent inherent government functions and/or activities: 3
Support for applications submitted by global authorities: 2

ICANN plans to formally approve the first batch of new gTLDs, with much ceremony, at an event in New York on April 23, but has said it will not approve any until it has received the GAC’s Advice.
The GAC is on the clock, in other words.
While it’s been discussing the new gTLDs on private mailing lists since last year’s Toronto meeting, it’s already missed at least self-imposed deadline. The information released today was due to be published in February.
While the ICANN Beijing meeting does not officially begin until next Monday, and the rest of the community starts its pre-meeting sessions at the weekend, the GAC starts its closed-session meetings this Thursday.

Chehade promises to cure herpes

ICANN CEO Fadi Chehade has promised to find a cure for herpes by the end of the year.
Delivering an impromptu keynote speech at the National STD Prevention Conference in Atlanta today, Chehade also apologized for the continuing existence of the pernicious viral infection, which he blamed on predecessor Rod Beckstrom.
“I came here to listen,” he told an audience of confused gynecologists. “And I’ve heard what you have said. Herpes simplex is a problem, I know this now. I’m on your side.”
“I therefore commit ICANN to curing herpes by the end of the year.”
“But we can’t do this alone,” he continued. “I therefore call on all stakeholders to work together on this important initiative.”
He added that the ICANN board of directors reserves the right to create its own cure and implement a mandatory vaccination program, should the community fail to come to agreement.
Chehade’s speech came at the tail end of a tiring outreach tour that has seen him address community members from all corners of the globe.
But reaction from the assembled physicians, epidemiologists and obstetricians was enthusiastic.
“He said everything I wanted to hear,” one beaming attendee told DI after Chehade’s 20-minute standing ovation died down. “Who knew Eugene Levy knew so much about herpesviridae?”
“I’ve no idea who that guy is,” said another delegate. “He just kinda wandered on stage and started talking. But I like him a lot.”
Herpes is an aggressive sexually transmitted viral infection, symptomized primarily by unsightly, weeping sores on the lips and genitals.
Some ICANN community members have already questioned whether finding a cure is within ICANN’s narrow technical mandate.
“This is mission-creep, pure and simple,” academic or something Milton Mueller blogged. “The cure for herpes, along with All Other Things, should be subject to free market forces.”
Mueller pointed to Chehade’s surprise appearance last week at the National Congress of Theoretical Physicists, during which he committed ICANN to preventing the heat death of the universe, as further evidence that ICANN is acting outside its remit.
Members of the domain name industry also expressed outrage.
Donuts, which has applied for .herpes, claimed Chehade’s speech threatened to interfere with its business model.
“If ICANN cures herpes, who’s going to defen… who’s going to register a .herpes domain name?” CEO Paul Stahura said.
The trademark community cautiously welcomed Chehade’s plans, but said they did not go far enough to protect rights holders.
“For too long, herpes has caused irritation for many in the IP community,” said Intellectual Property Constituency chair Kristina Rosette. “Not to mention widespread squatting problems.”
But ICANN should take care to protect the rights of Herpes^TM, a popular brand of canned soup in Latin America, she added.
Meanwhile, DotConnectAfrica pointed to a throwaway line in Chehade’s speech as unambiguous proof of an illegal conspiracy against its .africa bid involving ICANN, DI, the Freemasons, the Illuminati, the Rosicrucians, the Bilderberg Group and the Ku Klux Klan.

Chehade says “no delay” as Verisign drops a security bomb on ICANN

Verisign today said that the new gTLD program presents risks to the security of the internet, but ICANN CEO Fadi Chehade told DI that he’s not expecting any new delays.
The .com behemoth tonight delivered a scathing review of the security and stability risks of launching new gTLDs on ICANN’s current timetable.
The new Verisign report catalogs the myriad ways in which ICANN is not ready to start approving new gTLDs, and the various security problems they could cause if launched without due care.
It strongly suggests that ICANN should delay the program until its concerns are addressed.
But Chehade, in an exclusive interview with DI tonight, rebutted the already-emerging conspiracy theories and said: “There’s nothing new here that would cause me to predict a new delay.”
What does the Verisign report say?
It’s a 21-page document, and it covers a lot of ground.
The gist of it is that ICANN is rushing to launch new gTLDs without paying enough attention to the potential security and stability risks that a vast influx of new gTLDs could cause.
It covers about a dozen main points, but here are the highlights:

• Certificate authorities and browser makers are not ready. CAs have long issued certificates for use on organizations’ internal networks. In many cases, these certs will use TLDs that only exist on that internal network. A company might have a private .mail TLD, for example, and use certs to secure those domains for its users. The CA/Browser Forum, which coordinates CAs and browser makers, has decided (pdf) to deprecate these certs, but not until October 2016. This, Verisign says, creates a “vulnerability window” of three years during which attackers could exploit clashes between certs on internal TLDs and new gTLDs.
• Root server operators are not ready. The organizations that run the 13 DNS root servers do not currently coordinate their performance metrics, Verisign said. This makes it difficult to see what impact new gTLDs will have on root server stability. “The current inability to view the root server system’s performance as a whole presents a risk when combined with the impending delegation of the multitude of new gTLDs,” Verisign said.
• Root zone automation isn’t done yet. ICANN, Verisign and the US Department of Commerce are responsible for adding new gTLDs to the root zone, and work on automating the “TLD add” process is not yet complete. Verisign reckons this could cause “data integrity” problems at the root.
• The Trademark Clearinghouse is not ready. Delays in finalizing the TMCH technical specs mean registries haven’t had sufficient time to build their interfaces and test them, and the TMCH itself is a potential single point of failure with an unknown attack profile.
• Universal acceptance of new TLDs. Verisign points out that new gTLDs won’t be immediately available to users when they go live due to lack of software support. It points specifically to the ill-maintained Public Suffix List, used by browsers to set cookie boundaries, as a potential risk factor.
• A bunch of other stuff. The report highlights issues such as zone file access, data escrow, Whois and pre-delegation testing where Verisign reckons ICANN has not given registries enough time to prepare.

Basically, Verisign has thrown pretty much every risk factor it can think of into the document.
Some of the issues of concern have been well-discussed in the ICANN community at large, others not so much.
Yeah, yeah, but what did Fadi say?
Chehade told DI this evening that he was surprised by the report. He said he’s been briefed on its contents today and that there’s “nothing new” in it. The program is “on track”, he said.
“What is most surprising here is that there is nothing new,” he said. “I’m trying to get my finger on what is new here and I can’t find it.”
“It was very surprising to see this cornucopia of things put together,” he said. “I’m struggling to see how the Trademark Clearinghouse has a security impact, for example.”
He added that some of Verisign’s other concerns, such as the fact that the Emergency Back-End Registry Operator is not yet up and running, are confusing given that existing TLDs don’t have EBEROs.
The report could be divided into two buckets, he said: those things related to ICANN’s operational readiness and those things related to the DNS root.
“Are these operational issues really security and stability risks, and given that we can only launch TLDs when these things are done… what’s the issue there?” he said.
On the DNS root issues, he pointed to a November 2012 report, signed by Verisign, that said the root is ready to take 1,000 new gTLDs a year or 100 a week.
So the Conspiracy Theory is wrong?
When ICANN held a webinar for new gTLD applicants earlier this week, Chehade spent an inordinate amount of time banging home the point that security and stability concerns underpin every stage of the new gTLD program’s timetable.
As this slide from his presentation (click to enlarge) illustrates, security, stability and resiliency or “SSR” is the foundation of every timing assumption.
He said during the webinar:

Nothing will trump the gTLD process, nothing, but the SSR layer. The SSR layer is paramount. It is our number one responsibility to the internet community. Nothing will be done that jeopardizes the security and stability of the internet, period.
At any time if we as a community do not believe that all relevant security and stability matters have been addressed, if we do not believe that’s the case, the program freezes, period.
There is too much riding on the DNS. Hundreds of billions of dollars of commerce. Some may say livelihoods. We will not jeopardize it, not on my watch, not during my administration.

During the webinar, I was lurking on an unofficial chat room of registries, registrars and others, where the mood at that point could be encapsulated by: “Shit, what does Chehade know that he’s not telling us?”
Most people listening to the webinar were immediately suspicious that Chehade was expecting to receive some last-minute security and stability advice and that he was preparing the ground for delay.
The Verisign report was immediately taken as confirmation that their suspicions were correct.
It seemed quite likely that ICANN knew in advance that the report was coming down the pike and was not-so-subtly readying applicants for a serious SSR discussion in Beijing a little over a week from now.
When I asked Chehade a few times whether he knew the Verisign report was coming in advance, he declined to give a straight answer.
My feeling is he probably did, though he may not have known precisely what it was going to say. The question is perhaps less relevant given what he said about its contents.
But what Chehade thinks right now is probably not the biggest concern for new gTLD applicants.
The GAC’s reaction is now critical
The Verisign document could be seen as pure GAC fodder. How the Governmental Advisory Committee reacts to the report, which was CC’d to the US Department of Commerce, is now key.
The GAC has been banging on about root system stability for years and will, in my view, lap up anything that seems to prove that it was right all along.
The GAC will raise the Verisign report with ICANN in Beijing and, if it doesn’t like what it hears, it might advise delay. GAC advice is a lot harder for ICANN’s board to ignore than a self-serving Verisign report.
What’s Verisign playing at?
So why did Verisign issue the report now? I’ve been unable to get the company on the phone at this late hour, but I’ve asked some other industry folk for their responses.
Verisign’s super-lucrative .com contract is the obvious place to start theorizing.
Even though the company has over 200 new gTLD back-end contracts — largely with dot-brand applicants — .com is its cash cow and new gTLDs are a potential threat to that business.
The company has sounded a little more aggressive — talking about enforcing its patents and refusing to comply with ICANN’s audits — since the US Department of Commerce ordered a six-year .com price freeze last November.
But Chehade would not speculate too much about Verisign’s motives.
“I can’t read why this report and why now,” Chehade said. “Especially when there’s nothing new in it. That’s not for me to figure out. It’s for me to look at this report with a critical eye and understand if there’s something we’re not addressing. If there is, and we find it, we’ll address it.”
He pointed to a flurry of phone calls and emails to his desk after the Initial Evaluation results started getting published last week for a possible reason for the report’s timing.
“I think the real change that’s happened in the last few months is that the new gTLD program is now on track and for the first time people are seeing it coming,” he said.
Competitors were more blunt.
“It’s a bloody long report,” said ARI Registry Services CEO Adrian Kinderis. “Had they put the same amount of effort into working with ICANN, we’d be a lot better off on the particular issues.”

Mystery web site proposes new gTLD “string change” system

Somebody out there is bummed that they can’t afford to win their new gTLD contention set.
A new web site, StringChange.org, is planning to petition ICANN to allow new gTLD applicants to change the string they’ve applied for, for an extra $100,000 fee.
It’s not clear who’s behind the proposal, which was sent to every new gTLD applicant via email today. The page is unsigned and the domain is registered behind Whois privacy.
The site states:

We are proposing that ICANN allow the option of a “String Change” to applicants in contention, allowing these applicants, if they so choose, to change their string to another string and rewrite the appropriate parts of their applications. In doing so, these applicants would relinquish the right to their original string that is in contention, and be assessed a reevaluation fee of $100,000.
Many applicants would choose this over going to auction, being outbid, and never having the opportunity to launch a TLD and implement their business models. This also creates fairness for smaller groups to have the opportunity to launch and operate a TLD, especially when they are currently up against corporate giants such as Amazon or Google.

It goes on to say that a special “String Change round” of applications would begin in 2014, restricted to applicants who don’t fancy their chances punching it out with Google at auction in 2013.
The system would enable applicants that do not want to change their strings to get to market earlier, the site reckons.
It’s soliciting email addresses for its ICANN petition.
Good idea? Bad idea? Mediocre satire? Cheap attempt to see which applicants have gotten cold feet?