Registrars not happy with VeriSign abuse plans

VeriSign has been talking quietly to domain name registrars about its newly revealed anti-abuse policies for several months, but some are still not happy about its plans for .com malware scans.
The company yesterday revealed a two-pronged attack on domain name abuse, designed to counteract a perception that .com is not as secure a space as it should be.
One prong, dealing with law enforcement requests to seize domains, I covered yesterday. It’s already received criticism from the Electronic Frontier Foundation and American Civil Liberties Union.
The other is an attempt to introduce automatic malware scanning into the .com, .net and .name spaces, rather like ICM Registry has said it will do with all .xxx domains.
Unlike the daily ICM/McAfee service, VeriSign’s free scans will be quarterly, but the company intends to also offer a paid-for upgrade that would search domains for malware more frequently.
On the face of it, it doesn’t seem like a bad idea.
But some registrars are worried about the fading line between registrars, which today “own” the customer relationship, and the registries, which for the most part are hidden away in the cloud.
Go Daddy director of network abuse Ben Butler, asked about both of yesterday’s VeriSign proposals, said in a statement that they have “some merit”, but sounded several notes of caution:

This is going to make all registrars responsible for remediation efforts and negative customer-service clean up. The registrar at this point becomes the “middle man,” dealing with customers whose livelihood is being negatively impacted. As mentioned in their report, the majority of sites infected with malware were not created by the “bad guys.”
While there is an appeal process mentioned, it could take some time to get issues resolved, potentially leaving a customer’s website down for an extended period.
This could also create a dangerous situation, allowing registries to gain further control over registrars’ operations – as registrars have the relationship with the registrant, the registrar should be responsible for enforcing policies and facilitating remediation.

It has also emerged that VeriSign unilaterally introduced the malware scanning service as a mandatory feature of .cc and .tv domains – which are not regulated by ICANN – earlier this year.
The changes appear to have been introduced without fanfare, but are clearly reflected in today’s .tv registration policies, which are likely to form the basis of the .com policies.
Some registrars weren’t happy about that either.
Six European registrars wrote to VeriSign last month to complain that they were “extremely displeased” with the way the scanning service was introduced. They told VeriSign:

These changes mark the beginning of a substantive shift in the roles of registries regarding the monitoring and controlling of content and may lead to an increase of responsibility and liability of registries and registrars for content hosted elsewhere. As domain name registrars, we hold the position that the responsibilities for hosted content and the registration of a domain name are substantially different, and this view has been upheld in European court decisions numerous times. In this case, Verisign is assuming an up-front responsibility that surpasses even the responsibilities of a web hoster, and therefore opens the door to added responsibilities and legal liability for any form of abuse.
…
In the end, the registrar community will have to face the registrant backlash and criticism, waste countless hours of support time to explain this policy to the registrants and again every time they notice downtimes or loss of performance. These changes are entirely for the benefit of Verisign, but the costs are delegated to the registrants, the registrars and the hosting service providers.

The registrars were concerned that scanning could cause hosting performance hits, but VeriSign says the quarterly scan uses a virtual browser and is roughly equivalent to a single user visit.
They were also worried that the scans, which would presumably ignore robots.txt prohibitions on spidering, would be “intrusive” enough to potentially violate European Union data privacy laws.
VeriSign now plans to give all registrars an opt-out, which could enable them to avoid this problem.
It looks like VeriSign’s plans to amend the Registry-Registrar Agreement are heading for ICANN-overseen talks, so registrars may just be digging into a negotiating position, of course.
But it’s clear that there is some unease in the industry about the blurring of the lines between registries and registrars, which is only likely to increase as new gTLDs are introduced.
In the era of new gTLDs, and the liberalization of ICANN’s vertical integration prohibitions, we’re likely to see more registries having hands-on relationships with customers.

VeriSign’s .com takedown power grab causing controversy

VeriSign’s request for a wide-ranging set of powers that would enable it to shut down .com and .net domain names that are suspected of abuse is already attracting criticism.
The proposals came in a Registry Services Evaluation Process request to ICANN that I reported on for The Register this morning.
It’s asking (pdf) to be able to create a new anti-abuse policy that would refocus many of the controls currently in the hands of registrars to the registry level instead.
The policy would “allow the denial, cancellation or transfer” of any VeriSign-managed domain if any any of these conditions were triggered:

(a) to protect the integrity, security and stability of the DNS;
(b) to comply with any applicable court orders, laws, government rules or requirements, requests of law enforcement or other governmental or quasi-governmental agency, or any dispute resolution process;
(c) to avoid any liability, civil or criminal, on the part of Verisign, as well as its affiliates, subsidiaries, officers, directors, and employees;
(d) per the terms of the registration agreement,
(e) to respond to or protect against any form of malware (defined to include, without limitation, malicious code or software that might affect the operation of the Internet),
(f) to comply with specifications adopted by any industry group generally recognized as authoritative with respect to the Internet (e.g., RFCs),
(g) to correct mistakes made by Verisign or any Registrar in connection with a domain name registration, or
(h) for the non-payment of fees to Verisign. Verisign also reserves the right to place upon registry lock, hold or similar status a domain name during resolution of a dispute;

As you can see, that’s a pretty broad range of justifications.
Notably, it would enable a domain to be canceled or transferred at the “requests of law enforcement or other governmental or quasi-governmental agency”, which would seem to circumvent the current practice of a court order being obtained before a domain is seized.
The question of what constitutes a “quasi-governmental agency” is also interesting. Is ICANN itself such a thing?
The policy would also enable a take-down “to avoid any liability, civil or criminal”, which seems to be just begging for VeriSign to be named spuriously in commercial lawsuits between .com registrants.
The RSEP also suggests that VeriSign plans to extend its hand of friendship to law enforcement agencies from outside the US:

Pilots with European Law Enforcement, Government CERTS and Registrars are planned, and other global test pilots will follow, to ensure global collaboration in the continuing development of the procedures.

Today, US agencies can get court orders instructing VeriSign to hand over domains. While imposing US law on .com owners from other countries is controversial, at least overseas registrants know where they stand.
Now VeriSign is talking about cooperating with European law enforcement agencies too.
At the risk of getting dangerously close to invoking Godwin’s Law, this brings us back to an old jurisdictional problem – what if the French police demand the seizure of a .com site selling Nazi memorabilia, which is illegal in France but legal in the US, for example?
Taking it a step further, what if VeriSign starts entertaining takedown requests from some of the world’s least pleasant theocracies, banana republics and dictatorships?
Half of .com could disappear overnight.
Since VeriSign has a business to run, that’s obviously not going to happen. So the company is going to have to draw a line somewhere, separating criminality from legitimate behavior and free speech.
I’m speculating wildly here, of course, but the RSEP doesn’t contain nearly enough detailed information about VeriSign’s proposed procedures to make a more informed analysis.
VeriSign knows what it is proposing is controversial. The RSEP says:

Registrants may be concerned about an improper takedown of a legitimate website. Verisign will be offering a protest procedure to support restoring a domain name to the zone.

The proposals have been made following many months of discussions between registries, registrars, law enforcement agencies and other community stakeholders.
It’s not entirely clear from VeriSign’s RSEP, which sometimes confusingly conflates the abuse policy with a separate proposed malware scanning service, how a takedown notice would be processed.
One likely reading is that VeriSign would act almost like a centralized clearinghouse for takedown requests, forwarding them to individual registrars for enforcement.
The registrars could be obliged by the terms of an amended Registry-Registrar Agreement to follow whatever process had been laid down.
There seems to be some concern in the ICANN community about this.
ICANN senior VP of stakeholder relations Kurt Pritz recently sent a document to PIR’s David Maher and Oversee.net’s Mason Cole outlining the procedure for amending the RRA.
The flowchart (pdf) describes a trilateral negotiation between the registry proposing the change, the Registrars Stakeholder Group and ICANN, with the ICANN board having the ultimate decision-making authority.
However this proceeds through ICANN, it’s going to cause some heated community debate.

ANA finds SEO more effective than Facebook

Advertisers are “beginning to question the effectiveness” of social media marketing, but they’re still mostly sold on the benefits of search engine optimization.
That’s according to a new study from the Association of National Advertisers, the results of which have just been published.
The ANA’s survey of 92 marketers gave SEO an “effectiveness rating” of 52%, the highest rating given to any of the six categories respondents were asked to comment on.
However, that represented a decline of three percentage points from a similar survey in 2009.
Social networking sites (presumably including Facebook, although names were not named) received an effectiveness rating of 28%, up from 17% two years ago, ANA reported.
SEO and social sites were used in marketing by 88% and 89% of respondents respectively.
ANA president Bob Liodice said in a press release:

While marketers have substantially increased their use of newer media platforms over the past few years, they are beginning to question the effectiveness of some of these vehicles. The ANA survey indicates a strong willingness by marketers to integrate innovative new approaches into their marketing mix; however, this enthusiasm is tempered by concerns regarding the return-on-investment of these emerging options.

While it’s all speculation at this point, SEO improvements are often pointed to as a potential (and I stress: potential) benefit of new dot-brand or category-killer top-level domains.
The ANA is the current opponent-in-chief of ICANN’s new gTLD program.

Corsica seeks new gTLD registry operator

The local government of the French island of Corsica is looking for contractors to apply for and manage a .corsica top-level domain.
The Executive Council of the Collectivité Territoriale de Corse issued an RFP in late September. The deadline for responses is October 17, a week from now.
The desired string appears to be the Anglicized .corsica, rather than the French .corse.
Corsica, situated in the Mediterranean, is one of France’s 22 official regions. According to Wikipedia, it has slightly more political power than its mainland counterparts.
Under ICANN’s new gTLD application rules, geographical strings need the approval of the relevant local government before they can be accepted.
I expect any .corsica application would need a letter of support or non-objection from the French national government as well as the Corsican executive, before it is approved.
(via Jean Guillon)

ICANN hunts for anti-cybersquatting database provider

ICANN is in the process of looking for an operator for the Trademark Clearinghouse that will play a crucial brand protection role in new top-level domains.
An RFI published last week says that ICANN is looking for an exclusive contractor, but that it may consider splitting the deal between two companies — one to provide trademark validation services and the other to manage the database.
The TMCH is basically a big database of validated trademarks that registrars/registries will have to integrate with. It will be an integral part of any new gTLD launch.
Registries are obliged by ICANN rules to hold a sunrise period and a Trademark Claims service when they go live, both of which leverage the clearinghouse’s services.
Rather than having to submit proof of trademark rights to each gTLD operator, brand owners will only have to be validated by the TMCH in order to be pre-validated by all gTLDs.
I estimate that the contract is worth a few million dollars a year, minimum.
If the ongoing .xxx sunrise period is any guide, we might be looking at a database of some 30,000 to 40,000 trademark registrations in the first year of the TMCH.
One potential TMCH provider currently charges $100 for the initial first-year validation and a recurring $70 for re-validation in subsequent years.
ICANN has not ruled out the successful TMCH provider selling add-on services too.
But the organization also seems to be at pains to ensure that the clearinghouse is not seen as another gouge on the trademark industry.
The RFI contains questions such as: “How can it be assured that you will not maximize your registrations at the expense of security, quality, and technical and operational excellence?”
The two providers that immediately spring to mind as RFI respondents are IProta and the Clearinghouse for Intellectual Property (CHIP).
Belgium-based CHIP arguably has the most institutional experience. It’s handled sunrise periods for Somalia’s .so, the .asia IDN sunrise, a few pseudo-gTLD initiatives from the likes of CentralNIC (de.com, us.org, etc), and is signed up to do the same for .sx.
Its chief architect, Bart Lieben of the law firm Crowell & Moring, is also well-known in the industry for his work on several sunrise period policies.
IProta is a newer company, founded in London this year by Jonathan Robinson, an industry veteran best known for co-founding corporate domain registrar Group NBT.
The company is currently managing the .xxx sunrise period, which is believed to be the highest-volume launch since .eu in late 2005.
“IPRota is very well positioned on the basis of our recent and past experience so I think we almost certainly will go ahead and respond,” Robinson confirmed to DI.
Domain name registries and registrars could conceivably also apply, based on their experience handling high-volume transactional databases and their familiarity with the EPP protocol.
ICANN sees the potential for conflicts of interest — its RFI anticipates that any already-contracted party applying to run the TMCH will have to impose a Chinese wall to reduce that risk.
The RFI is open for responses until November 25. ICANN intends to name its selected provider February 14, a month after it starts accepting new gTLD applications.
This is another reason, in my view, why submitting an application in January may not be the smartest move in the world.

Domain Registry of America still slamming, still scamming

Domain name slamming is alive and well in the ICANN-accredited registrar community.
I’ve just received a letter in the mail offering me the chance to transfer and renew domainincite.com for the knock-down price of £25 ($38) a year.
It’s Domain Registry of America again, still slamming almost a decade after it was first sued for the completely unethical practice of conning people into transferring their domain names.
The letter looks like a renewal notice. Besides ostensibly coming from “Domain Renewal Group”, it also contains the prominent text “Domain Name Renewal Service”.
Domain Renewal Group and Domain Registry of America are one and the same – fronts for the ICANN-accredited registrar Brandon Gray Internet Services Inc, dba NameJuice.com.
The letter, as you can see from the scan, is a little less bogus than the ones DROA started sending out back in 2001. The text states now much more clearly that “this is not a bill”.
But domain slamming has always relied upon people not reading the letter properly and/or not understanding the intricacies of domain transfers, and this is no different.
DROA’s business depends upon its letters finding their way into the hands of gullible individual registrants or accounting departments that will blindly pay official-looking notices.
At the prices the company charges – pretty much the most expensive in the industry – very few people will have transferred their domains because they thought they were getting a good deal.
There have been numerous complaints and lawsuits against DROA over the last decade.
In November 2009, the UK Advertising Standards Agency found DROA in breach of truthfulness and honesty guidelines for a substantially similar mailshot and ruled:

The mailing must not appear again in its current form.

And last year, the .ca registry CIRA terminated Domain Registry of Canada, another Brandon Gray front, for slamming .ca registrants using the same methods.
So isn’t it about time ICANN shut these muppets down too?
Unfortunately, ICANN can only use contracts to enforce compliance, and I’m not sure there are any sticks in the 2001 Registrar Accreditation Agreement that it can use to beat them.
DROA has plainly breached Go Daddy’s Whois access policy by slamming me (the letter was sent to my Whois billing address, not my actual residence), but I don’t think there’s much Go Daddy can do about that short of suing.
As far as I can tell, Brandon Gray, which has about 130,000 domains under management, got its ICANN accreditation in about 2003. It was previously an eNom reseller.
So its accreditation is probably going to be up for renewal within the next couple of years.
Fortunately, ICANN has just this week introduced stricter new accreditation application rules that are specifically designed to weed out the scumbags.
Any company or individual with a track record of dishonesty is no longer welcome at ICANN.
So if there’s nothing that can be done before then, at the very least when Brandon Gray’s accreditation expires ICANN should not renew it.
What’s more, other registrars should lean on ICANN to make sure Brandon Gray is shown the door. It’s been bringing their industry into disrepute for the best part of a decade and it’s time for it to stop.

ICANN to hire conflict of interest experts

ICANN is to bring in ethics experts to advise it on its conflicts of interest policy, addressing the ongoing controversy over its former chairman’s move to the domain industry.
The organization plans to “engage an external firm with expertise in advising on ethical issues”, according to the minutes of a September 15 meeting of its Board Governance Committee.
The consultants will be tasked with helping to “develop an ICANN Ethics Regime or set of Guidelines for the Board, the staff and the community.”
ICANN has been faced recently with calls to impose post-employment restrictions on board members and staff, in order to prevent a “revolving door” between it and the industry it essentially regulates.
This follows former chairman Peter Dengate Thrush’s move to new gTLD applicant Minds + Machines just a few weeks after voting to approve the new gTLD program.
Senator Ron Wyden and the Association of National Advertisers are among those making the call, and the US Department of Commerce, which oversees ICANN, appears to have heard it.
But as I reported earlier in the week, it may actually be illegal for ICANN, as a California corporation, to contractually ban employees from joining domain name companies after they quit.
However, the BGC has other ideas about how to strengthen ethics without imposing these potentially problematic employment restrictions.
It’s now talking about a ethics policy with “disclosure and abstention requirements” for directors “surrounding future interests or potential future interests”.
While the policy has yet to be written, one can imagine a scenario in which an ICANN director would be prevented from voting on a policy that would be likely to enrich them in a future job.
Cherine Chalaby, Bill Graham and Ray Plzak are the BGC members who will be leading the board discussions, which are expected to continue in Dakar later this month.
The ethics issue was first raised publicly by ICANN president Rod Beckstrom during his opening address at the Singapore meeting in June — before the new gTLD vote and before Dengate Thrush’s departure.

Two new TLDs to be approved next week

ICANN is set to approve two new country-code top-level domains next week – .cw and .sx – for the year-old nations of Curacao and Sint Maarten.
The two countries were created when the Netherlands Antilles split last October.
The ICANN board of directors plans to rubber-stamp the delegations of both ccTLDs next Tuesday, according to the consent agenda for its meeting.
It also plans to vote on the “transition” arrangements for the Netherlands Antilles’ .an, which is now a ccTLD without a country.
The .an space won’t be the first TLD to be deprecated. Yugoslavia’s .yu disappeared in March last year, for example, a few years after Serbia and Montenegro acquired their own ccTLDs.
The recipient of .sx is expected to be SX Registry, a joint venture of Luxembourg registry startup OpenRegistry and Canadian registrar MediaFusion.
OpenRegistry CEO Jean-Christophe Vignes said that if ICANN votes for the delegation the company will start talks with potential registrar partners at the ICANN Dakar meeting later this month.
MediaFusion and Vignes’ alma mater EuroDNS have already been approved to act as .sx registrars.
The company plans to use CHIP, the ClearingHouse for Intellectual Property, for its sunrise period.
Anyone with a .an registration predating December 2010 will be able to request the equivalent .sx name under a grandfathering program the company plans to launch.
It will be the first TLD that OpenRegistry has provided the back-end infrastructure for.

BITS may apply for six financial gTLDs

BITS, the technology policy wing of the Financial Services Roundtable, may apply to ICANN for as many as six financially-focused new top-level domains.
The organization is pondering bids for .bank, .banking, .insure, .insurance, .invest and .investment, according to Craig Schwartz, who’s heading the project as general manager for registry programs.
(UPDATE: To clarify, these are the six strings BITS is considering. It does not expect to apply for all six. Three is a more likely number.)
Schwartz, until recently ICANN’s chief gTLD registry liaison, told DI that the application(s) will be filed by a yet-to-be-formed LLC, which will have the FSR and the American Bankers Association as its founding members.
It will be a community-designated bid, which means the company may be able to avoid an ICANN auction in the event that its chosen gTLD strings are contested by other applicants.
“We’ve looked at the scoring, and while it may not come into play at all we do believe we can meet the requisite score [for a successful Community Priority Evaluation],” Schwartz said. “But we’re certainly mindful of what’s happening in the space, there’s always the possibility of contention.”
There’s no relationship between BITS and CORE, the Council of European Registrars, which is apparently looking into applying for its own set of financially-oriented gTLDs, Schwartz said.
It’s not a big-money commercial play, but the new venture would be structured as a for-profit entity, he said.
“It’s relatively analogous to what’s happened in the .coop space, where after 10 years they have only about 7,000 registrations,” Schwartz said.
It sounds like pricing might be in the $100+ range. Smaller financial institutions lacking the resources to apply for their own .brand gTLDs would be a likely target customer base.
Interestingly, .bank may begin life as a business-to-business play, used primarily for secure inter-bank transactions, before it becomes a consumer-facing proposition, Schwartz said.
He added that it would likely partner with a small number of ICANN-accredited registrars – those that are able to meet its security requirements – to get the domains into the hands of banks.
VeriSign has already signed up to provide the secure back-end registry services for the bid.

AusRegistry drops the “Aus”, sets up in US

AusRegistry International has rebranded itself as ARI Registry Services and will now offer new gTLD clients the option to host their domains in either Australia or the US.
The company has built itself a registry back-end in an undisclosed location on US soil to support the move.
Dropping the “Aus” appears to be specifically designed to address the perception that locating a gTLD in Australia is somehow technologically or politically risky, which ARI says isn’t the case.
ARI CEO Adrian Kinderis explained the decision in a press release:

We are the first to admit that the ‘Aus’ reference in our previous name incorrectly positioned us as a smaller, geographically focused organisation, which did create some issues with our plans for global expansion. Despite the fact we have an office and staff in the United States and clients situated in four of the seven continents around the world, there remained some belief that our services were somewhat isolated in Australia.

Potential gTLD applicants are concerned about issues such as “overzealous governments, privacy and ownership laws, political environments and financial benefits including currency fluctuations” that can vary according to the jurisdiction a registry is hosted in, ARI said.
A choice between the US and Australia may seem like a choice between one “overzealous government” and another, but it may at least put some insular American companies’ minds at rest.
While the move makes perfect business sense for ARI, I can’t help but feel that ICANN’s goal of increasing geographic diversity in the registry industry seems a little diminished this morning.
The rebranding does not affect the company’s parent, AusRegistry Group, which provides the back-end for Australia’s .au ccTLD.
ARI’s new domain is ariservices.com.