Another new gTLD consultancy launches

ITEMS International, a Paris-based consulting firm, has launched a practice to specialize in helping new top-level domain applicants with their ICANN proposals.
The firm says it has more than 20 consultants on gTLD Team, based around Europe and North Africa, including one former ICANN board member and a few other ICANN regulars.
ITEMS says it has previously worked with the .fr registry, AFNIC, and has been contracted to support applications by the Burgundy Region Council and other undisclosed company.
It appears that the company plans to largely focus on geographic and dot-brand applications.

Wiki to shake up the new gTLD market

Tens of thousands of dollars worth of registry secret sauce is set to be released under a Creative Commons license on a new wiki, courtesy of the International Telecommunications Union.
Applying for a new generic top-level domain could be about to get a whole lot cheaper.
Before October, the ITU plans to publish template answers to all 22 of the questions about registry technical operations demanded by ICANN’s Applicant Guidebook.
Because they will be published under a Creative Commons license, new gTLD applicants will be able to copy and paste the whole lot into their applications for free.
And because they will be on a wiki, approved contributors will be able to fine-tune the templates to increase their chances of passing ICANN’s technical evaluation.
Currently, gTLD applicants are generally paying registry back-end providers to take care of this part of their applications, paying $10,000 and up for the privilege.
I think the word that applies here is “disruptive”.
Consultant and former ICANN board member Michael Palage, who has worked on a number of previous TLD launches, is coordinating the creation of the templates with input from registries and engineers.
The resulting “best in class” material will also be used by the ITU and the League of Arab States in their bid for .arab and its Arabic equivalent, .عرب.
According to the Guidebook, applicants do not need hands-on experience running a registry in order to have their application approved. ICANN is trying to enable competition, after all.
But there is a period of pre-delegation testing that each successful applicant must endure before their new gTLD is added to the root, so a simple copy-paste of the ITU’s templates will not suffice.
I doubt this project will take a great deal of money out of the pockets of the incumbent registries – well-funded applicants will presumably be happy to pay the extra money for certainty – but it will provide a bit of flexibility for applicants not already in bed with a back-end.
It could also help open up the new gTLD market to companies that may not have otherwise considered it, such as those in the developing world.
Indeed, part of the rationale for the Creative Commons publication is to aid with “capacity building” in these nations, according to an ITU presentation delivered in Cairo this week.
We’ve already seen pricing competition hit the registry services market in the wake of the approval of the new gTLD program, now it appears we’re seeing the dawn of “free”.

Victoria’s Secret seizes swimsuit domain, again

The lingerie retailer Victoria’s Secret has won a cybersquatting complaint over the domain name victoriasecretswimsuit.com for the second time in as many years.
Judging by the Whois history, it appears that the company lost the domain following the demise of rogue registrar Lead Networks, which lost its accreditation last year.
Victoria’s Secret first secured the domain with an easily won UDRP complaint in May 2009.
An attorney from its outside law firm was subsequently listed as the admin contact, but the registrar of record remained the same – the Indian outfit Lead Networks.
At some time between August and October last year, the Whois contact changed to the current registrant, who’s hiding behind a privacy service.
Probably not coincidentally, that was about the same time as ICANN, having terminated Lead Networks’ accreditation, bulk-transferred all of its domains to Answerable.com.
Lead Networks was placed into receivership in March 2010 following a cybersquatting lawsuit filed by Verizon.
Answerable.com, a Directi business also based in India, was the registrar’s designated successor under ICANN’s policies. It has subsequently changed its name to BigRock.com.
The latest UDRP decision does not explain how Victoria’s Secret managed to lose its registration, but I’d speculate the inter-registrar transfer may have had something to do with it.
When a registrar loses its accreditation the names are transferred to a new registrar but the term of the registration is not extended. If a registrant ignores or does not receive the notifications sent by the gaining registar, they may find they lose their domains.

ICANN has $750k to advertise new gTLDs

Don’t all rush at once.
ICANN is looking for an advertising agency to help it get the word out about the new generic top-level domains program, but it only has $750,000 to spend.
The organization published a request for proposals last night.
The budget is not much in the advertising world, especially considering that ICANN’s awareness program will have to be global and multilingual to be truly effective.
With such a limited budget, the RFP and accompanying FAQ acknowledges that it will need “creative solutions” from its ad agency.
This is likely to mean a big PR push for advertising equivalent editorial – lots and lots of news stories about new gTLDs.
To an extent, the word is already out by this measure. My standing Google News and Twitter searches for “ICANN” have been going crazy since the gTLD program was approved two weeks ago.
I think it’s fair to say that the vast majority deal of the coverage so far has been either neutral or negative, with much of the focus on potential legal, branding and security problems.
That’s pretty much par for the course in the domain name business, of course.
And ICANN does not necessarily need positive spin – it’s trying to raise awareness of the program’s existence, and negative coverage does that job just as well.
There is, as they say, no such thing as bad publicity.
ICANN’s job of promoting the program is already being done to a large extent by the registries, many of which were investing heavily in media outreach before new gTLDs were approved.

Russian firm fined millions over domain land-grab

RU-Center, Russia’s largest domain name registrar, will have to repay 240 million rubles ($8.6 million) for grabbing thousands of domain names and auctioning them during the .РФ landrush.
The company could also be fined up to 75% of its 2009 revenues for breaking competition law, according to a statement from the country’s Federal Antimonopoly Service.
When .РФ was launched by the .ru registry launched last November, it offered domain names on a first-come first-served basis, without the premium landrush period offered by other TLDs.
RU-Center took this opportunity to register 60,000 domains in its own name and sell them off to the highest bidder, essentially bringing the landrush to the registrar level.
Some ccTLD Coordination Center council members, responsible for setting the launch policies, had ownership interests in RU-Center either directly or through family members, according to FAS.
The registrar is currently being acquired by a company called RBC.

Beckstrom gets his bonus again

ICANN president and CEO Rod Beckstrom has been awarded a performance-related bonus for the 12-month period ending today, it has emerged.
The undisclosed amount was approved by the ICANN board of directors during an unannounced meeting last Saturday.
As it is classed as a personal personnel matter, the portion of his “at risk component” approved was not revealed, but it is known that Beckstrom’s annual bonus is capped at $195,000.
His base salary is $750,000.
It’s the second consecutive year that he has received some part of his bonus. For the year ended June 30, 2010, the board voted it through in December.
As Beckstrom enters the third year of his three-year contract, it’s understood that he has already been making overtures to the board to extend his tenure for a second term.

Blacknight warns about new gTLD “false promises”

Domain name registrar Blacknight Solutions has warned domain buyers not to be “duped” by registrars offering preregistration in new top-level domains that have not yet been approved.
“Every time an end user gets duped it hurts our industry and companies like us have to clean up the mess,” managing director Michele Neylon said.
In a press release, Blacknight said:

After receiving several queries from customers, Blacknight discovered that registrants interested in acquiring domains in rumoured new gTLDs had become confused by these offers, as they are not familiar with how the new TLD implementation might work. This sort of speculative offer is the equivalent of taking a down payment on a concept car that has not been approved for production. It is a false promise.

While the company was diplomatic enough to avoid naming names, I strongly suspect the release refers primarily to United Domains, which has been offering preregistration for the last few months.
UD currently offers such services for dozens of non-existent TLDs, such as (without leaving the B’s) .bank .bayern .bcn .berlin .bike and .board.
Given that none of the 50-odd potential gTLD applicants listed have revealed what their registration policies will be, it seems possible that many wannabe registrants will be left disappointed.
Don’t expect to be able to get a .bank domain via preregistration.
UD’s preregistering process looks a lot like a regular shopping cart, albeit with $0 pricing and no requirement to submit credit card details.
There is a FAQ that, if you read it, explains that there can be no guarantee you’ll get the names you ask for.
These services, and others like it, are basically ways to build up mailing lists of interested buyers, in order to contact them when domains actually start becoming available.
The registrar has already been burned by a couple of gTLD applicants.
LACNIC sent UD a nastygram in April, for example, when it discovered the registrar was offering preregistration in .lac.
Bizarrely, UD was at one stage accepting preregistration in .brand gTLDs in which literally no third party will qualify to buy a domain, such as .unicef.
ICANN has not to my recollection publicly stated a position on preregistration since 2000, when it said that “the practice of pre-registration should not be encouraged”.

Neustar prices .brands at $10k

Neustar has unveiled extremely aggressive entry-level pricing for “.brand” applicants looking for a registry services provider – just $10,000 a year.
For the size of company expected to apply for .brands, that’s a rounding error. It may as well be free.
It’s called the Brand Assurance Package.
Applicants should not expect much for the money though – the package seems to be targeted at those that want to grab a .brand TLD in the first round, but may not do much at the second level initially.
It basically looks like a defensive registration package.
It covers application support and the registry infrastructure, but Neustar plans to ask clients to upgrade to more expensive services should they expand their .brand strategy in future.
Prices for those services have not been announced, but it would be a good idea to find out what they are before signing up – migrating a TLD between registries may not be trivial.
The fee does not cover ICANN’s application fees, which start at $185,000, of course.
There’s a market for this kind of thing. You need only read some of the marketing trade press to discover that there are a heck of a lot of brand managers scratching their heads about new gTLDs right now.
Many are taking a “wait and see” approach.
The problem with that strategy is that after April 12 next year we have no idea when – or, frankly, if – companies will next get their chance to apply for a new gTLD.
If Coca-Cola gets .coke in round one and .brands turn out to be a success, that could put Pepsi at a competitive disadvantage if it is left stranded in .com space, for example.
In addition, if you share your brand with a company in another vertical, applying in the first round is a must-have, unless you fancy your chances with ICANN’s untested objections procedures.

US extends ICANN’s IANA contract

ICANN has received a six-month extension to its crucial IANA contract, apparently in order to give the US government more time to take public comments and make amendments.
The contract may have been extended some weeks ago, but I believe the first public acknowledgment from ICANN came in a presentation before the ccNSO at its meeting in Singapore last week.
The IANA contract is what gives ICANN the power to make changes to the DNS root – including adding new top-level domains to the internet.
It is granted by the US National Telecommunications and Information Administration.
The contract is now set to expire March 31, 2012, towards the end of the newly approved first-round new gTLDs application window, which is expected to be open from January 12 until April 12.
It would be helpful, from an applicant confidence perspective, if the contract is renewed on a longer-term basis before January 12, when money will start changing hands.
The NTIA currently has a Further Notice Of Inquiry (pdf) open, soliciting public comments on what terms should and should not be included in the contract.
Quite a few civil liberty types are annoyed about the fact that the NTIA has added a clause that may enable it to block new gTLDs from the root if governments find them disagreeable.

Beware the new gTLD cuckoos

Let’s say that for some reason you’re a big fan of horses.
Ever since ICANN announced it was going to do new top-level domains, in 2008, you’ve been desperate to apply for .horse.
This TLD could not fail, you think to yourself. Everyone likes horses, right? You could have 500,000 registrations in year one, make yourself rich. Maybe buy yourself a new horse.
For the last three years you’ve attended every ICANN meeting, you’ve lobbied for the changes you want to see in the Applicant Guidebook, you’ve spent tens of thousands on hotels and airfare.
You’ve painstakingly built your “.horse” brand, raising money and throwing it into marketing and community building, creating demand among your fellow horse lovers.
The horse community knows about .horse, and they can’t wait for it.
Fast-forward to April 12, 2012.
ICANN has just published the list of first-round gTLD applicants. Your lovingly created .horse bid is in the system, ready for processing.
But wait, what’s that?
Somebody else – some douchebag businessman who doesn’t even like horses – has also applied for .horse, and his bank account is bigger than yours by a long way.
How’s that .horse idea looking now? Did you just spend three years building up somebody else’s brand? Do you think your community will care? Or notice? The other guy is called .horse too, remember.
Oops.
This scenario is very likely to become a reality.
Probably not for .horse, but for many of the new gTLD applicants that we’ve become aware of over the last few years.
If you look at any high-profile application, .gay or .music for examples, we already see multiple applicants, one of which has usually done more to promote the TLD than the others.
Look at Sophia Bekele’s .africa application, which appears to be running into this problem already, despite all of her painstaking outreach.
There will probably be other applicants for these strings that we will know nothing about until April.
You don’t score any points in the Applicant Guidebook for having a loyal fan base, spending oodles of cash on marketing or simply being first to put out a press release.
If you find yourself in a contested string situation, the only way out under ICANN rules is an auction. The applicant with the deepest pockets wins.
Because I’m desperate to one day coin a term and have it stick, I’m going to call these usurpers “cuckoos”. Because, you know… that thing that cuckoos do with their young.
There’s a cuckoo business model, too.
While ICANN has only endorsed auctions as the method of settling contests over non-community strings, that’s there more as a deterrent than as a solution.
ICANN wants competing applicants to come to some kind of agreement between themselves before it reaches that stage and auctions are expected to be rather rare.
What we’re likely to see is a bunch of applicants withdrawing their applications after being paid off, in cash, equity, or some other consideration, by more serious rivals for the same string.
Nobody wants to risk spending millions in an auction if they can make the problem go away earlier with thousands.
Fortunately for the cuckoos, ICANN offers a substantial refund, $130,000, for applicants that drop out before their Initial Evaluation is completed.
This puts the ICANN fee for getting into pay-off talks with a “proper” applicant at a quite reasonable $55,000. If you can score a couple of points of equity in a new registry, it could be a bargain.
Of course, you’d have to hope that your rival does not call your bluff and try to force you to auction. If that happens, it would probably be wisest to admit defeat and cut your losses.
It’s high-risk, sure, but it’s potentially high reward too, and I’m certain it will happen, even if it doesn’t look like it’s happening.
It’s going to be a poker game, and no mistake.