Sedari hires Fay Howard as COO

New gTLDs start-up Sedari has recruited Fay Howard, formerly general manager of CENTR, the Council for European National Top Level Domain Registries, as its new chief operating officer.
Howard has also previously worked at Nominet and Eurid, where she wrote the winning application for the .eu registry contract, according to Sedari.
It’s one of a number of recent senior hires for the company, which came out of stealth mode this summer to provide new gTLD applicants with application and registry management services.
Last month, the company hired Philip Shepard as director of policy.

Bulgaria told to forget about .бг

ICANN CEO Rod Beckstrom has advised Bulgarians to admit defeat in their ongoing campaign to have .бг approved as a local-script top-level domain to match .bg.
The country’s application for the Cyrillic label was rejected by ICANN’s IDN ccTLD Fast Track program last year because it was found to look too similar to Brazil’s .br.
Nevertheless, the local government and domain name groups have continued to press for the right of appeal, and have indicated they may apply again.
But in an interview with Novinite published today, Beckstrom says:

I would advise the Bulgarians to go for something else. The initial application for .бг was unsuccessful.
The job of ICANN, the organization, is to implement the policies that are developed by the global communities. Those communities did not allow the initial application to go through because of potential visual confusion. So I think the Bulgarians can go back and they can choose what they want to apply for.
The Bulgarians can apply for a three-character name, they can apply for .българия in Cyrillic, it’s really up to the local community.

He goes on to say that Bulgarians could wait for a change in policies then apply again, they could change their desired string, or they could abandon their plans altogether.
However, surveys have found little appetite among the Bulgarian public for alternative strings such as .бгр, .българия, .бя or .бъл.
It’s a tricky problem for ICANN, which is first and foremost tasked with ensuring DNS stability and security.
Confusingly similar TLDs lend themselves to security risks such as phishing, and my understanding is that if .бг were to be approved it would face opposition from interests in Brazil.
The Novinite interview also touches on the possibilities of .софия and .Пловдив, to represent the Bulgarian cities of Sofia and Plovdiv.
The .бг issue was the subject of some apparently heated discussion during the recent Domain Forum new gTLDs conference in Sofia, but I understand Beckstrom had left before that part of the agenda.
You can now watch the entire Domain Forum, including Beckstrom’s introductory keynote, for free on YouTube.

Outrage! ICANN complains about crappy hotel

Sometimes ICANN’s love of procedure defies parody.
It’s no secret that the $124-a-night Hotel des Almadies used at its recent meeting in Dakar, Senegal, was not really up to the Club Med* standards that ICANN wonks are accustomed to.
The At-Large Advisory Committee even conducted a survey of its members after the meeting and found that a whopping 68% of them had complained to hotel management for one reason or another.
ICANN’s response?
It’s sent a letter to Senegal’s telecommunications minister, complete with a 20-page illustrated ALAC report going into excruciating detail not only about the shoddy facilities but also the policy background of the complaint.
Along with reports of rats, patchy Wi-Fi, “musty smells” and inadequate security, there are references to Resolution 2010.08.05.12, the ALAC/At-Large Improvements Implementation Project Plan, and Section 3.2.2.5 of the Travel Policy of the ALAC Review Final Report.
According to the letter, from marketing chief Barbara Clay, ICANN had received assurances that the hotel rooms would be renovated before the Dakar meeting kicked off.
Clay wrote that the hotel’s failure to follow up on its promises “damaged ICANN’s reputation as well as the reputation of the Hotel and Senegal” and she asks for compensation.
I’m guessing Rod Beckstrom’s not going to be on President Wade’s Christmas card list after all.
(*As anyone who has attended more than one ICANN meeting knows, they’re nothing but a week-long orgy of beach limbo parties, $20 cocktails and sordid sexual encounters with exotic prostitutes, all paid for by the humble internet-using public.)

Wanted: somebody to object to new gTLDs

ICANN is looking for somebody to object to new top-level domain applications.
It’s put out a call for an Independent Objector, whose job it will be to file formal objections to new gTLDs that he or she determines may not be in the public interest.
ICANN is looking for somebody with an in-depth knowledge of the new gTLD program and extensive experience in multinational organizations.
The IO has been a planned component of the new gTLD program for a couple of years.
The role is designed to provide a way to kill off “highly objectionable” applications in cases where the affected community may lack the resources or organization to pay for an objection.
Essentially, the IO looks at public comments filed with ICANN and decides whether opposition to a gTLD is substantial enough to warrant a formal objection.
The IO may only use two of the Applicant Guidebook’s objection mechanisms – the Community Objection and the Limited Public Interest (formerly “morality and public order”) Objection and not trademark or string confusion grounds.
My view is that we’re likely to see very few “highly objectionable” applications. And now that ICANN has agreed to fund some government objections, the IO is likely to wind up being a bit of an easy ride for whoever successfully applies for the job.
Interested parties have until December 22 to apply. The job description can be found here.

US quietly revises IANA contract

ICANN will not be allowed to do business with groups designated by the US government as terrorists, according to one of many changes that have been quietly made to the IANA contract.
The IANA contract, which gives ICANN its ability to delegate top-level domains, is up for renewal following the publication of an RFP by the Department of Commerce earlier this month.
But Commerce substantially modified the RFP a week after its initial publication. It’s now about 20 pages longer than the original document, containing many new terms and conditions.
A few changes struck me as notable.
Terrorism
Among the changes is a ban on dealing with groups classified as supporting terrorism under the US Executive Order 13224, signed by President Bush in the aftermath of the the 9/11 attacks.
That Order bans US companies from working with organizations including the IRA, Hamas and Al Qaeda.
While the addition of this clause to the IANA contract doesn’t really change anything – as a US corporation ICANN is bound to comply with US trade sanctions – it may ruffle some feathers.
The new top-level domains Applicant Guidebook banned applicants involved in “terrorism” in its fourth draft, which caused complaints from some quarters.
It was revised over a year ago to instead make reference to US legal compliance and the US Office of Foreign Assets Control and its List of Specially Designated Nationals and Blocked Persons.
Khaled Fattal of the Mulitlingual Internet Group, who first described the unqualified Guidebook ban on “terrorism” as “racist”, continued to voice opposition to this rule, most recently at the ICANN public forum in Dakar, suggesting it betrays ICANN’s American bias.
Data Rights
The revised IANA RFP also contains a new section detailing the US government’s “unlimited rights” to data and software produced by the IANA contractor.
The new RFP states: “The Government shall have… Unlimited rights in all data delivered under this contract, and in all data first produced in the performance of this contract”
“Data,” it says, “means recorded information, regardless of form or the medium on which it may be recorded. The term includes technical data and computer software. The term does not include information incidental to contract administration, such as financial, administrative, cost or pricing, or management information.”
It’s not entirely clear what this clause could potentially cover.
By it’s very nature, much of the data produced by IANA is public – it needs to be in order for the DNS to function – but could it also cover data such as redelegation communications with other governments or private DNSSEC keys?
New gTLDs
There are no big changes to the section on new gTLDs, just one minor amendment.
Whereas the old RFP said that IANA must show that ICANN “followed its policy framework” to approve a gTLD, the new version says it must have “followed its own policy framework”, which doesn’t seem to change the meaning.
Other amendments to the RFP appear to be formatting changes or clarifications.
The more substantial additions – including the terrorism and data rights sections – appear to be standard boilerplate text designed to tick some boxes required by US procurement procedure, rather than being written specifically for ICANN’s benefit.
You can download the original and revised RFP documents here.

GMO wins .tokyo deal

GMO Registry says it has won local government backing to apply to ICANN for the city top-level domain .tokyo.
The company revealed the news on its Twitter feed today, linking to this Tokyo metropolitan government announcement confirming the story.
While perhaps best-known for its planned .shop application, GMO is probably the registry services company with the most announced new gTLD back-end contract wins to date.
It is also on board to provide the registry for the Japanese regional gTLDs .okinawa and .ryukyu, as well as the brand gTLDs .hitachi and .canon. It already runs Somalia’s .so and Indonesia’s .id ccTLDs.
GMO Registry parent GMO Internet is a pretty big deal in its native Japan. Publicly listed on the Tokyo Stock Exchange, it has annual revenue of well over half a billion dollars.

CADNA asks for new gTLDs second round

The Coalition Against Domain Name Abuse, having spent quite a lot of time and effort opposing ICANN’s new top-level domains program, wants ICANN to name the date for a second round.
In a letter to president Rod Beckstrom today, which was inspired by discussions at the recent What’s At Stake conference, CADNA president Josh Bourne writes:

We ask that the ICANN Board request an Issues Report to formally initiate a policy development process to determine when the next round of new gTLD applications will occur, thereby affirming its commitment to opening a second round in a timely manner.

As I’ve noted previously, ICANN has not named the date for the second round so far because it’s promised the Governmental Advisory Committee that it will review the first round first.
But businesses from outside the domain name industry are feeling like they’re being pressured into making a decision whether to apply for a gTLD they don’t necessarily want, Bourne says.

By not disclosing when it will open future rounds of new gTLD applications, ICANN is creating a condition of scarcity that will inevitably result in a massive land rush, where entities will scramble to apply for new gTLDs for the sole purpose of hypothetically “future-proofing” their identities in the new domain name space, without any immediate intentions to use their new gTLDs for innovative means.
Disclosing when it will open a second application round will not only alleviate the anxiety that businesses are feeling, it will give ICANN the chance to quell the animosity that has developed toward it among the business community.

The whole letter is worth a read. No matter what you think of CADNA, it’s difficult to argue with Bourne’s points (though please do so in the comments if you disagree).
Scare sales tactics are already a key source of mainstream hatred for the domain name industry at the second level. Now would be a good time to prevent the same thing happening at the top level too.
It will look very bad for ICANN in a few years’ time if the root is cluttered with useless, unused gTLDs created just because companies felt pressured into defensive applications.

YouPorn challenges new gTLDs with review demand

YouPorn operator Manwin is demanding a review of .xxx, and ICANN’s top-level domains program by association, in a new Independent Review Panel request.
It becomes only the second company ever, after .xxx manager ICM Registry, to file an IRP request with ICANN. The filing came at the same time as Manwin sued ICANN and ICM in California.
The IRP demand ostensibly focuses on .xxx, but it also suggests that the forthcoming new gTLD program has many of the same flaws as the process that led to .xxx’s approval.
IRP is the final, and most expensive, appeals process available within ICANN for companies that believe they’ve been wronged by the organization’s decisions.
It was first used by ICM in 2008-2009 to have the rejection of its .xxx application overturned.
To win an IRP, complainants have to convince an International Centre for Dispute Resolution panel (probably three retired judges) that ICANN violated its own bylaws when it made a harmful decision.
The only reason .xxx is in the root today is that an IRP decided by majority that ICANN broke the bylaws when it approved and then rejected the .xxx bid filed in the 2004 new gTLD round.
Manwin’s IRP claims that ICANN failed to “adequately address issues including competition, consumer protection, malicious abuse and rights protection prior to approving the .xxx TLD”.
It also claims that ICANN failed to enforce ICM’s compliance with its registry contract, allowing it to engage in “anticompetitive conduct” and help violate IP rights.
The company is basically miffed that it felt it was being forced to spend money in ICM’s sunrise period, and that it was not allowed to block its trademarks and variations of its trademarks.
One of its oddest claims, which is in the IRP as well as the lawsuit, is that ICM was selected in a “closed process” that did not consider alternative .xxx operators.
The 2004 gTLD round was of course open to any applicant, so there was nothing stopping anybody else from applying for .xxx. One gTLD, .tel, did in fact have multiple bidders.
Essentially, the IRP demand cuts to the heart of the domain name industry and the new gTLD concept in general, challenging many practices that have become norms.
Sunrise
Sunrise is “extortion”, according to Manwin.
As well as being opposed to the idea of paying for defensive registrations in general, Manwin also thinks that typos and brand+keyword domains should be eligible for blocking, presumably for free.
It also believes that porn companies should have been able to defensively block some .xxx domains (which ICM called “Sunrise B”) and register others for active use (“Sunrise A”).
Speculation
Manwin’s IRP says that ICM did not act in the best interests of its sponsored community (ostensibly the porn industry) when it sold premium .xxx domains to “known domain name speculators”.
Well-known domainers Frank Schilling and Mike Berkens have invested millions in .xxx, but Manwin says their profit motives show ICM broke its commitment to serve the adult industry only.
Schilling, who signed up to buy domains 33 domains including amateur.xxx before ICM’s registry contract had even been approved, is reportedly already leasing out some of his .xxx names to porn companies for five figures a month.
New gTLDs
Manwin seems to support what you might call a ‘string first, registry later’ model for delegating gTLDs.
It states in its lawsuit and IRP that ICANN should have opened up .xxx for competitive bidding, apparently ignoring the fact that the .xxx string was proposed by ICM, not ICANN.
In the IRP demand, it suggests that allowing gTLD applicants to select their own strings is in violation of ICANN’s bylaws. The complaint states:

[ICANN] gave ICM a permanent monopoly over the .XXX TLD without considering other candidates for registry operator and without making provision for considering other potential registry operators at the end of the initial term of the .xxx Registry Agreement.

If Manwin wins, ICANN could be forced into a situation where it must ask for string proposals from new gTLD applicants and then open up each proposed string to competitive bidding.
That’s not necessarily a bad idea, but it’s pretty much exactly the opposite of how the ICANN-approved new gTLD program is going to work.
The IRP and the lawsuit are also notable in that they target the alleged lack of economic studies that support .xxx and new gTLDs in general.
It states that ICANN “failed to conduct proper economic studies of the impact of the introduction of new TLDs, including the .xxx TLD”.
This is a frequent criticism leveled at ICANN by opponents such as the Association of National Advertisers and the newly formed Coalition for Responsible Internet Domain Oversight.
Manwin is being represented in the suit and IRP by the law firm Mitchell Silberberg & Knupp, the employer of Steve Metalitz, a well-known figure in ICANN’s intellectual property constituency.

YouPorn sues ICANN and ICM over .xxx

One of the biggest porn companies in the world has filed an antitrust lawsuit against ICANN and ICM Registry over the introduction of the .xxx top-level domain.
Luxembourg-based Manwin Licensing and California-based Digital Playground allege “monopolistic conduct, price gouging, and anti-competitive and unfair practices”.
Manwin runs YouPorn, Brazzers and, under license, several Playboy-branded web sites, while Digital Playground is among the largest porn production companies in the world.
Together they are demanding an injunction on .xxx altogether, for ICANN to be forced to impose price constraints on ICM, and to open up the .xxx contract for competitive rebidding.
The complaint, apparently filed in California today, essentially alleges that everything ICM has done to date, from its application with ICANN to its sunrise period policies, is wrong and bad.
It claims ICM’s sunrise period amounted to extortion and that ICANN willfully created a monopoly by agreeing to a registry contract with presumptive renewal but no price caps.
ICM, the complaint says, reacted to the approval of .xxx earlier this year “with the anti-competitive behavior expected of a monopolist”.

It has, for example, improperly exploited the newly created market for .XXX defensive registrations by making such registrations unreasonably expensive and difficult, and by placing onerous burdens on parties seeking to protect their intellectual property rights.

Manwin claims that the recently ended sunrise period, which saw over 80,000 defensive registrations, was priced too high given that ICM handed out free domain blocks to thousands of celebrities.
It also claims that ICM should have enabled companies to defensively block typos of their trademarks, and that porn companies without trademarks should have been able to block their brands.
It takes ICANN to task for not operating a competitive bidding process for .xxx, and claims ICM used “misleading predatory conduct and aggressive litigation tactics” to push through its approval.
I’m not a lawyer, but often antitrust cases swing on the way the court decides to define the relevant “market”.
Manwin claims .xxx is the market, whereas it could be argued that because porn sites are free to use .com or almost any other TLD, that the domain industry as a whole is the market.
The complaint states:

The market for blocking services or defensive registrations in the .XXX TLD is a distinct and separate market in part because there is no reasonable substitute for such registrations. For example, blocking or preventing others’ use of names in a non-.XXX TLD is not such a substitute. Blocking use of a name in a non-.XXX TLD does not prevent use of the name in the .XXX TLD.
…
ICM has a complete monopoly in the market for the sale of .XXX TLD blocking or defensive registration services through registrars.

I’m not sure if my legal thinking holds water, but this sounds rather like arguing that BMW has a monopoly on making BMWs or Coca-Cola has a monopoly on Cherry Coke.
But Manwin says that .xxx is the only porn gTLD and ICANN has basically ruled out the creation of any future porn-centric TLDs with clauses in ICM’s registry contract.
It also notes that .sex and .porn would be unlikely to be approved in the next round of new gTLDs due to the restrictions on controversial strings imposed by the Governmental Advisory Committee.
ICM president Stuart Lawley said in a statement:

The claims are baseless and without merit and will be defended vigorously. They also show an apparent lack of understanding of the ICANN process and the rigorous battle we went through with ICANN over eight years in full public scrutiny to gain approval.

The .xxx story really is the gift that keeps on giving.

Screen Actors Guild opposes new gTLDs

While it does not appear to be a member of the new Coalition for Responsible Internet Domain Oversight, the Screen Actors Guild has come out in opposition to new top-level domains.
The membership organization, which represents over 200,000 Hollywood actors, has asked US Secretary of Commerce John Bryson to persuade ICANN to delay the gTLD program until it can “demonstrate convincingly” that it will be in the public interest.
SAG national executive director David White wrote:

The ICANN proposal would unduly burden a diverse range of public and private brand holders, companies with whom our members are associated. This also presents an undue burden on our organization, as a globally recognized brand. Under this rule, many brand-holders would be forced to spend ever-greater amounts of time and resources simply to protect their brands.

Like many other opponents of the program, White also raises the conflicts-of-interest question that emerged following Peter Dengate Thrush’s move from ICANN’s chair to new gTLD applicant Minds + Machines.
SAG was not listed as a member of CRIDO, the huge cross-industry lobby group that formed to oppose new gTLDs last week, although its arguments are identical.