States will object to .inc, .llc gTLDs

American secretaries of state will object to new gTLD applications for .inc, .corp, .llc and .llp unless they are restricted, the National Association of Secretaries of State has told ICANN.
In a March 30 letter, NASS president Beth Chapman wrote:

While we have concerns about the use of these extensions, if ICANN considers approving these extensions, our members respectfully request that they be approved with restrictions that would attempt to protect legitimate businesses and consumers from confusion or fraud.
…
The members of NASS believe these extension identifiers (.INC, .LLC, .CORP, .LLP) should only be extended to entities that are also legally and appropriately registered with the Secretaries of State, or the equivalent state agency. The entity purchasing a new domain name should be the same entity registered with a Secretary of State or equivalent state agency.

The sentiment was a repeat of views expressed in a March 20 letter from Jeffrey Bullock, secretary of state of corporation-friendly Delaware.
Bullock said that Delaware “would object to the granting of such strings without restrictions”.
Neither letter acknowledges that the corporate suffixes Inc, Corp and LLP are also used elsewhere in the world.
Both letters refer to DOT Registry, a start-up with plans to apply to ICANN for .inc, .corp and .llc.
DOT Registry plans to put restrictions in place to ensure only registered companies can register domains, Bullock wrote.
I’m not familiar with DOT Registry’s plans, but in general I’m not keen on this type of gTLD string. They strike me as pointless, more likely to create defensive registration revenue than any benefit.

First .blog new gTLD applicant revealed

Colombian domain name registrar My.co has become the first company to reveal that it will apply to ICANN for the .blog generic top-level domain.
Manager Gerardo Aristizabal told DI today that the application will be made through a company called Primer Nivel (“First Level” in Spanish).
My.co (officially Central Comercializadora de Internet) is the main partner in the bid. Other unspecified investors are also on board.
Qinetics, the Malaysian registry services provider that does business as RegistryASP, has been contracted to run the registry back-end.
My.co already uses Qinetics for its .co registrar gateway, which provides .co registration services to 20 other registrars, according to Aristizabal.
UK-based CommunityDNS has signed up to provide the DNS, while NCC Group has been named data escrow provider, he added.
“We believe .blog will provide a great address for establishing blogs online, and will become the Internet space for freedom of speech and information,” Aristizabal said.
It goes without saying that .blog will be a heavily contested – I would say probably the most heavily contested – gTLD.
Whenever anyone asks me what gTLD string I think stands the best chance of success, I always point to .blog.
It’s a no-brainer.
Media analysts NM Incite (great name) tracked 181 million blogs in 2011, up by about 25 million from 2010. A gTLD that could grab just 1% of that business would still be a nice little earner.
Not only is there an enormous potential market, but .blog doesn’t (as far as I know) have any of the legal baggage that will scare away potential applicants for strings such as .web or .music.
If .blog goes to auction, expect it to fetch eight figures.

NAF loses UDRP market share again

If UDRP forum shopping is a real phenomenon, the market share statistics don’t bear it out.
The National Arbitration Forum today announced a sequential decrease in the number of cybersquatting cases it handled in 2011, widening the gap between itself and the World Intellectual Property Organization for at least the second year in a row.
NAF said it handled 2,082 complaints last year, down 4% from 2010. That’s over the same period WIPO saw a 2.5% increase to 2,764 cases.
NAF is occasionally accused of being the more complainant-friendly of the two major UDRP dispute resolution providers, which some say encourages “forum shopping”.
While that may or may not be true in certain fringe cases, it’s certainly not helping NAF win a flood of business. WIPO is still handling more cases, and growing its share while NAF’s shrinks.
As Mike Berkens observed over on The Domains, NAF’s press release attempted a bit of lame spinning, comparing 2011 to 2009 in order to lead with an 18% increase stat.
The release also includes the following quote from director of internet and IP services Kristine Dorrain, which seems to be designed to subtly address the “complainant-friendly” allegations.

Our experience tells us parties, particularly domain name registrants, prefer the National Arbitration Forum because documents are easily accessible in our online portal. Complaint or Response filing is accomplished in just a couple of minutes.

It’s a somewhat irrelevant statement, given that it’s the complainant who gets to choose the venue.
One of NAF’s 2011 highlights was being picked as exclusive provider of Rapid Evaluation Service cases by .xxx manager ICM Registry. It processed 10 RES complaints in 2011.
RES cases, as well as 73 .us cases, were counted in its headline statistics.

It’s official: April 30 is the Big Reveal for new gTLDs

ICANN has just announced that it is targeting April 30 as the date it reveals which companies have applied for which new generic top-level domains.
“Our plan always has been to publish the list of applied-for strings approximately two weeks after the close of the April 12th application window,” CEO Rod Beckstrom said in a press release.
“Setting a target date gives people the opportunity to plan for this highly anticipated event,” he added.
It’s only a target date, the press release notes.
ICANN does have a fairly reliable track record of missing deadlines when it comes to the new gTLD program.
Many new gTLD applicants are planning to meet unofficially in Las Vegas for the Big Reveal. The French consulting company Starting Dot had also scheduled an gathering in Paris for May 2.
There are also rumors of an official ICANN event, but the organization has yet to confirm anything.

ICANN’s secret “penthouse-level” domain program

Filthy with cash from incoming new gTLD applications, ICANN is secretly working on a new “penthouse-level domains” project, DomainIncite has learned.
The program, detailed in leaked emails (pdf) between senior ICANN executives, will open up the space to the right of the final, overlooked dot in a fully-qualified domain name.
The new “pLD” project will allow brand owners, for example, to apply to run a domain name to the right of their newly acquired dot-brand gTLD, creating new marketing opportunities.
Penthouse-level domains are believed to be the brainchild of outgoing CEO Rod Beckstrom.
“I figured I may as well torpedo the whole fucking joint on my way out,” he said, stuffing ICANN’s air-conditioning system with three-day-old sushi.
Officially, ICANN expects the program to be warmly welcomed by the trademark community
“The most common complaint we hear from dot-brand gTLD applicants is that they have no idea what to put at the second level,” said ICANN spin doctor Brad White.
“Do you use www.canon or www.canon.canon?” he said. “It’s confusing. But with a penthouse-level domain such as, I dunno, .com, Canon would be able to have www.canon.canon.com”.
“Companies that missed the dot-brand gTLD deadline would be able to apply for dot-brand pLDs instead, enabling addresses such as www.canon.com.canon,” he said. “And that’s much simpler.”
Sixteen new rights protection mechanisms have been created, all of which are expected to be so carefully balanced as to be essentially useless.
The new pLD application fee is likely to be set at $185,000 per character, according to sources, $175,000 of which has been earmarked for Jones Day’s cocaine bill.
Registry service providers have welcomed the penthouse-level domains move and today dismissed criticisms that the program places too high a financial burden on rights holders.
“The important thing you have to remember is that applying for a new penthouse-level domain isn’t the same as simply registering a gTLD,” said an Afilias spokesperson.
“The further to the right a word is on your screen, the more expensive it is to manage,” he said. “It stands to reason, right? Right? Yeah, well it does, trust me. We’re the experts.”
“And so are we,” said AusRegistry CEO Adrian Kinderis.
A burgeoning ecosystem of consultants is already emerging to support the pLD concept.
Mike Berkens and Monte Cahn today announced the launch of Right Of The Right Of The Dot Inc and, just in case, they have also defensively registered rightoftherightoftherightofthedot.com.
Minds + Machines also revealed it has ambitious plans to apply for dozens of new penthouse-level domains.
“We’re going to wait and see what pLDs others plan to apply for, then apply for those too,” said CEO Antony Van Couvering.
But other parts of the ICANN community have received the news with less enthusiasm.
“My name is Marilyn Cade,” said Business Constituency chair Marilyn Cade, before saying some other things that I forgot to write down.
“We’re completely opposed to new pLDs,” said CADNA’s Josh Bourne. “That’s why I’m proud to announce the launch of our reasonably priced new pLD consulting service.”
“And we’re doubly proud to announce that we’ve hired Steve Crocker to run it,” he added.
In related news, Paul Foody and George Kirikos were both found dead at the bottom of a cliff this morning in what police are describing as an apparent suicide pact.
“Goodbye cruel world,” said ICANN’s Filiz Yilmaz, reading from a laptop on Kirikos’ behalf.
***
Based on an idea by Barry Shein.

How to get a $180,000 new gTLD refund

ICANN will give new gTLD applicants a $180,000 refund on their application fee if they withdraw before May 2, it has emerged.
This refund is not mentioned in the Applicant Guidebook, in which the maximum refund available is $148,000. Nor could I find any reference to it on the ICANN new gTLDs microsite.
However, in response to an inquiry from DI last night, an ICANN customer service rep said:

Applications withdrawn prior to the posting of the applied-for strings are qualified for a $180000 refund (if such payment has been made and reconciled by ICANN). The USD5000 registration fee is non-refundable.
The posting of the applied-for strings occurs approximately 2 weeks after the end of the application window, which closes on 12 April 2012. Applications withdrawn after the posting of the applied-for strings will receive refunds according to the refund schedule in section 1.5 of the Applicant Guidebook.

At least one other person, new gTLD consultant Michael Palage of Pharos Global, was told substantially the same thing by the new gTLD service center earlier this week.
I believe ICANN is currently targeting May 2 for its Big Reveal, when we all find out who’s applying for what. May 1, I believe, has been ruled out because it’s a public holiday in some parts of the world.
I don’t think this apparently obscure refund opportunity significantly increases the risk of gaming, but I can see how it might alter some applicants’ strategies.
It’s possible, for example, that in some cases it might now make more sense for an applicant to announce its bid between April 12 and May 2.
After April 12, nobody will be able to file a competing, gaming application, but revealing a strong bid might be enough to scare already-competing applicants into dropping out for a 97% refund.
I don’t think it really helps reluctant dot-brand applicants, which have asked for the $180,000 refund to be available after they know what the competitive landscape for similar strings looks like.

.nxt new gTLD conference open for registration

The third .nxt conference on new generic top-level domains opened for early bird registrations today.
Having appeared twice in San Francisco, this time it’s my home town of London’s turn to host the event.
Organizer Kieren McCarthy is hoping to attract an international audience passing through London on their way to the ICANN 44 public meeting in Prague, Czech Republic.
The conference will be held at the Park Plaza Victoria in central London on June 20 to 22, ending just before the first day of meetings in Prague.
The three-track agenda can be found here.
I attended the first two .nxts in person and remotely and I’ve found that McCarthy is pretty good at lining up an excellent range of compelling speakers and panelists.
The main drawback some have found is that many of the attendees are likely to be the same faces you’ll see at ICANN meetings.
However, with this being the first .nxt to happen after April 12 – when hundreds of new companies have filed their applications and committed to enter the domain name industry – there very well might be a broader range of delegates at the London show.
Early bird pricing, available before April 12, starts at £399 ($632) plus 20% tax for the full three days. It then goes up to £599 ($949) plus tax. Day passes are also available.
You can take advantage of the discounted pricing by registering here.

Timing of .com contract renewal is telling

The timing of the publication of the renegotiated .com registry contract may give Verisign and ICANN the chance to duck some criticism about its price-raising powers.
According to ICANN’s announcement last night, the draft contract is up for public comment until April 26, a week before we find out how much new gTLD business Verisign has won.
Verisign is expected to have secured a large share of the burgeoning market for new gTLD back-end registry services.
It is whispered that a great many North American brands planning to apply for their own dot-brand gTLDs prefer Verisign as their registry provider, due to its reputation for stability.
That up-time is of course provided by a robust, distributed infrastructure paid for over the years by the same .com registrants now facing four more years of price increases.
It’s debatable whether Verisign can continue to make a convincing public interest case for .com price hikes if it’s also profiting by hosting dot-brands on the same boxes and pipes.
But because the public comment period closes April 26 and ICANN does not plan to publish the new gTLD applications until May 2, the argument that Verisign is using .com buyers to subsidize its dot-brand business will have to be made without hard data to back it up.
I doubt such arguments would be heard anyway, frankly. ICANN pretty much has its hands bound by the 2006 contract when it comes to messing around with pricing controls.
For those opposed to price increases, a more effective lobbying strategy might head straight to Washington DC, where the Departments of Commerce and Justice will both study the deal from September.

ICANN asked to protect the names of body parts

There’s been no shortage of special pleading in relation to ICANN’s new generic top-level domains program, but this has to be the wackiest yet.
The National Health Council, an American advocacy group, has written to ICANN to ask for extra brand protection for the names of body parts, disabiliies and diseases.
Seriously.
NHC president Myrl Weinberg wrote:

Because it is not possible to trademark a body part (e.g., lung, liver) or a disease category (e.g., arthritis, diabetes), it is difficult for the patient advocacy community to protect the use of such words.
…
We strongly urge ICANN to set forth a process that investigates the potential for misunderstanding, confusion, and harm when awarding gTLDs utilizing the name of a body part or disease/disability.

The letter was inexplicably sent to ICANN’s public comment period on the Universal Acceptance of TLDs. Needless to say it’s completely off-topic, not to mention extremely late.
What seems to have happened is that the NHC’s members received a briefing recently from an ICANN staffer as part of its outreach program and what they learned gave them the willies^TM.

New .com contract revealed: Verisign gets to raise prices, ICANN makes millions more

ICANN and Verisign both stand to make oodles of cash from their renewed .com registry contract.
A proposed draft of the next .com Registry Agreement was published by ICANN late this evening.
It would enable Verisign to carry on raising its .com registry fee by 7%, in four of the next six years. This provision, which was in the 2006 agreement also, was not unexpected.
But the deal will also see Verisign pay ICANN millions of dollars more in transaction fees.
Instead of a quarterly lump sum, which is capped at $4.5 million in the current contract, ICANN will instead get a $0.25 fee for every year of a .com registered, renewed or transferred.
According to my quick-and-dirty calculations, that would have brought ICANN approximately $6 million in extra revenue — roughly $24 million in total — from .com domains last year.
(The most recent .com registry reports show billable transactions per month worth about $2 million to ICANN, using the new agreement’s calculation. However, under the current agreement ICANN can only collect $18 million per year, according to its last approved budget.)
The revised contract contains several other changes also. I’ll have more coverage of those tomorrow.
The deal, which is not expected to come into effect until the end of November, is now open for public comment until April 26.
It needs to be approved by the ICANN board of directors, the Verisign board and the US Department of Commerce before it is finally signed.