Latest news of the domain name industry

Recent Posts

ICANN chief gets bonus

Kevin Murphy, December 14, 2010, Domain Policy

ICANN chief executive Rod Beckstrom is to be paid a bonus potentially as high as $195,000 this year.
Did you know that there were two ICANN board meetings held in Cartagena last week?
I didn’t, but I just spotted that resolutions from a December 8 meeting have been posted on the ICANN web site.
There are only two resolutions. They grant bonuses to Beckstrom and to outgoing ombudsman Frank Fowlie.
The board approved “a proportion” of both men’s “at-risk component”, which basically means their performance-related bonuses.
The resolutions do not specify how big a proportion was approved for either, but it is known that the maximum Beckstrom could have been awarded is $195,000.
His base salary is $750,000.

Want a premium .xxx domain? Now’s your chance

Kevin Murphy, December 14, 2010, Domain Registries

ICM Registry, despite suffering another setback at the Cartagena ICANN meeting last week, has set the wheels in motion for the launch of .xxx with the announcement of a Founders Program.
If you want to get your hands on a “premium” .xxx domain without having to pay a tonne at auction, this is your chance.
ICM said it will license premium domains to organizations willing to develop and market their sites for at least two years, raising awareness of the TLD.
.CO Internet did a similar thing with .co, issuing one-character names to the likes of Go Daddy and Twitter. Other registries have had founder programs for super-short domains.
The program will be open to newcomers, as well as those who own “matching” domains in other TLDs.
The .xxx application is currently on hold, pending ICANN’s consultation with its Governmental Advisory Committee in February, but ICANN has said that it “intends” to approve it.
It will be interesting to see how many members of the adult community currently opposed to .xxx, if any, will attempt to participate as a Founder.
(Hat tip: Michele Neylon)

Drunk domain blogger gets mugged in Cartagena

Kevin Murphy, December 10, 2010, It's Friday

ICANN people love defining things, and a few people at the meeting here in Cartagena have disputed whether this anecdote meets the strict definition of “mugging”.
Okay, I didn’t wind up with a knife in my ribs, they weren’t carrying firearms, and they didn’t get my wallet.
But they were going to beat me up (at the very least) if I didn’t give them what they wanted and it’s really just blind luck that I managed to blag my way out of it.
I often find that these kinds of stories are better related in first-person present tense.
So it’s 4am, and I’m blatantly flouting ICANN’s security advice by walking, rather than getting a taxi, back from .CO Internet’s rather nice afterparty to my considerably less-nice hotel.
But it’s only two or three short blocks, and I’m inside the walled city, so I reckon I’m safe.
Wrong.
Two thuggish-looking blokes quickly appear beside me and one of them starts mouthing off in unusually good English about how I owe him money for a coke deal I’m apparently somehow implicated in.
I’m not kidding.
I forget the details, but the gist of it is that I need to give them both an unspecified large amount of money for some drugs that I stole or something and that Bad Things will happen to my face if I refuse.
Unfortunately for the Escobar brothers, it turns out that at 4am, with half a bottle of Colombian fire-water in my belly, I’m invincible.
Or believe myself to be, anyway.
So I decide to play dumb, and just carry on walking. I figure I’ll pretend for as long as possible that I’m simple, or don’t speak English. My hotel is in sight by this point.
“Okay,” I say, confused look on my face, after he finishes his story.
“So you give us money?” he says.
“Okay,” I say, not giving him money.
“You give us money now.” he’s not asking this time.
“Okay,” I say. Walking a bit faster.
This goes on for two blocks. As dumb luck would have it, by the time he starts to loses his patience we’ve already reached my hotel.
Of course, at 4am, my two-star dive has its doors locked, and I have to ring the buzzer to get in.
Normally, the young girl on the desk buzzes me through two seconds later. Of course, normally I don’t show up in the dead of night accompanied by two burly Colombian guys yelling about drug money.
So she understandably doesn’t want to let me in.
Trying to buy time, and unsure whether this is a violent scam or a genuine case of mistaken identity, I tell the guy he can have his money in the morning. Just drop by, pick it up, no worries.
I buzz again, but she still doesn’t want to let me in.
“You give me money now.”
I usually carry a bunch of small-denomination bills in my pocket when I’m on unfamiliar turf, for precisely this kind of scenario, so I grab a wad of notes and stuff them into his hand.
“Okay, here’s your money.”
Buzz again. Still no response.
I’m trying not to notice that the money I’ve just given him amounts to about two US dollars, but he clearly has noticed and is quite angry.
I’m told I now owe him 57,000 pesos, which strikes me as unusually specific.
Fortunately, I never get to find out why he settled on that amount. The girl buzzes me through and, after a brief struggle, Scarface eats door.
End of anecdote.
To me, it sounds like a mugging. Drug guys threatened to beat me up and I gave them $2 – that fits the definition, right? It may be the lamest mugging in Colombian history, but it’s still a mugging.
Anyway, that’s my story and I’m sticking to it.
Next time, I’ll try to get stabbed or something.

ICANN new TLD launch delayed (again)

Kevin Murphy, December 10, 2010, Domain Registries

ICANN’s new top-level domains program has been delayed, likely for a few months at least, after governments submitted a laundry list of issues they believe are still unresolved.
The Governmental Advisory Committee is mainly bothered that the Applicant Guidebook fails to adequately protect trademark rights and that the cost of the program could outweigh the benefits.
The ICANN board resolved at its meeting here in Cartagena earlier today to meet with the GAC for an unprecedented consultation next February.
(The meeting will also discuss the .xxx application, which I’ve reported on for The Register).
The actual board resolution is hopelessly lengthy and confusing at first reading. Take this doublethink:

ICANN considers that the solutions developed to address the overarching issues of trademark protection, mitigating malicious conduct, and root-zone scaling substantially reflect the negotiated position of the ICANN community, but ICANN will take into account public comment including the advice of the GAC.

Some delegates here tell me they think this means the book has been closed on the portions of the guidebook dealing with IP protection mechanisms, for example.
(J Scott Evans, head of the IP constituency, stormed out of the room in a huff when this part of the resolution was read aloud.)
But the text of the resolution pretty clearly states that IP protections and the other overarching issues are still open for negotiation with the GAC and could be amended based on comments filed this week.
The resolution is open to interpretation with regards these three “overarching issues”.
It does, however, refer to other issues that are explicitly unresolved in ICANN’s view, namely the treatment of geographic names and the handling of “morality and public order” objections.
Both are singled out as needing more work before they can be finalized.
What does all this mean for the launch timetable? I think it means there isn’t one. Again.

[The ICANN board] Directs staff to synthesize the results of these consultations and comments, and to prepare revisions to the guidebook to enable the Board to make a decision on the launch of the new gTLD program as soon as possible.

“As soon as possible” is either meaningless or, taken literally, means the board’s next meeting. That’s likely to be late January, if previous years are any guide.

Calls for “fast-track” for new TLDs

Kevin Murphy, December 9, 2010, Domain Registries

Some would-be top-level domain registries have started to call for ICANN to gradually phase in the launch of its new TLD program, so they can get their feet in the door early.
ECLID, a group of six “cultural and linguistic” TLD applicants, is among a number of organizations saying that ICANN could introduce a small number of non-controversial TLDs before opening the floodgates to hundreds of new extensions.
Judging that IP concerns may continue to hold up the first round of applications and that cybersquatting risks may not be as significant in domains such as .scot or .eus, ECLID’s Davie Hutchison wrote:

We ask that ICANN move forward at speed and with determination and prevent further delay causing damage to the clTLDs and other community TLDs that will enhance the richness and diversity of the Internet. Failing the courage or resolve to do that, we ask ICANN to create a fast-track process for the “safe” community TLDs which would be an excellent testing ground for the process before opening it up to the non-community based TLDs.

Calls for a “fast track” for non-controversial TLDs have also been made by members of ICANN’s Governmental Advisory Committee this week.
It’s been the GAC’s position for a few months now that “uncontroversial” community TLDs, including those with cultural and linguistic ties, should be dealt with first.
The idea doesn’t make a heck of a lot of sense to me. A phased launch would require the development of a new objective process to categorize applicants into “controversial” and “non-controversial” buckets.
For the amount of time and effort that would take, ICANN may as well just sort out the problems with the Applicant Guidebook as a whole.
Kurt Pritz, ICANN’s veep in charge of the new TLD program, addressed the feasibility of a phased launch during a press conference here in Cartagena today, noting that “it’s very difficult to have a round in which just a certain type of TLD allowed to apply”.
ICANN tried to restrict TLDs to limited communities with the 2003 round of “sponsored” TLDs, causing problems and controversies that continue to be felt seven years on.
I think it’s fairly safe to say that any rulebook that limited what TLDs could be applied for or who could apply for them would be soundly gamed by the domain name industry (cf .jobs, .xxx, .travel, etc).

ICANN sees “crescendo” of new TLD comment

Kevin Murphy, December 9, 2010, Domain Registries

With less than 24 hours to go before ICANN’s board of directors decides the fate of the new top-level domains program, the comments and criticisms are rapidly accumulating, split along predictable lines.
In short: pretty much everybody in the domain name industry wants the TLD process to kick off ASAP, and pretty much everybody else who has an interest thinks it should not.
Kurt Pritz, ICANN’s senior vice president of stakeholder relations, said at a press conference this morning that “rather than comment diminishing towards the end to a whimper and the Guidebook being launched, we’re seeing it raising to a crescendo”.
Publicly filed comments can be found here.
“Crescendo” may be an over-statement, but verbal comments here at the ICANN meeting have been flying thick and fast and the rhetoric dial will certainly get turned up to 11 during the public forum this afternoon.
Many opponents of the proposed final Applicant Guidebook are objecting to the fact that the deadline for filing comments is tomorrow, just a couple of hours before the board convenes.
Microsoft associate general counsel Russell Pangborn, for instance, wrote:

Approval of the PAG on December 10 conveys the message that the Board deems public comment irrelevant. The possibility that ICANN staff will have read all public comment and provided a public comment summary to the Board with sufficient time for full consideration and discussion by the Board is slim at best.

Microsoft is one of many companies worried that new TLD registries’ business models will essentially be subsidized by defensive registrations paid for by big trademark holders.
The US Chamber of Commerce put it fairly succinctly:

the current plan still requires businesses to pay for defensive registrations in hundreds of new gTLDs, at prices that are unconstrained by ICANN or other bodies… Moreover, the legal expenses and domain acquisition costs of defensive registrations will not be offset by potential economic or informational value to either registrants or Internet users.

But the most comprehensively detailed objection filed by IP stakeholders over the last day or so seems to have come from INTA, the International Trademark Association.
Weighing in at 15 pages, the INTA filing says the AGB “raises significant new issues”, such as the lifting of the vertical integration ban and the new registry code of conduct.
One of its biggest issues, which I’ve heard from several other people here in Cartagena this week, is that the AGB’s rights protection mechanisms, such as Uniform Rapid Suspension and the Trademark Clearinghouse, seem to specifically exclude non-US trademarks.
That’s a pretty big issue for Europeans – the German representative on the Governmental Advisory Committee indicated on Tuesday that he thinks it’s a deal-breaker.
As I blogged yesterday, the GAC has aligned itself with the trademark lobby in its objections to ICANN, which may well delay the launch of the new TLD program somewhat.
The key issue for the GAC is the balance between cost (to trademark owners) and benefit (to everyone else).
Elliot Noss of Tucows expressed in his comment how difficult it is to predict what economic value could be created by new TLDs.

When the new round proceeds we will see a marked change in the way people will use domain names. The ability to find resources of all kinds more easily on the Internet will provide a small, but clear incremental benefit to users. But that benefit will be felt trillions of times! Every time someone finds something on the Internet more easily there will be a benefit.

There has been a lot of discussion of competition for .com. What we need to think about is NOT will any single domain become a competitor for .com, but instead will a large number of domains in aggregate provide competition for .com. This issue cannot possibly be understood by studying the extremely limited TLD introductions of the past.

Some other likely TLD applicants kept their statements short and sweet, perhaps for fear of inadvertently causing delay through verbosity.
Statton Hammock of Network Solutions wrote:

A document of this complexity and importance can never be “perfect,” or “complete” in the eyes of everyone. Though further refinements to the language could be made, we believe that the DAG, in its current form, is robust enough to support the launch of the new gTLD application process.

Pritz said that the ICANN board is “actively monitoring” the comments and will continue to do so up until its meeting tomorrow.

Trademarks may delay new TLD approval

Kevin Murphy, December 8, 2010, Domain Registries

The intellectual property lobby won a notable victory this week, after governments told ICANN they want it to delay approval of the new top-level domains program until it has more cybersquatting protections.
Some members of the Governmental Advisory Committee appear to have been lobbied hard by the IP community, and have taken its concerns on board more or less wholesale.
The UK representative, Mark Carvell of the Department for Business, Innovation and Skills, was most vocal during a meeting of the GAC and ICANN board here in Cartagena, Colombia yesterday.
He said of the proposed final Applicant Guidebook for new TLDs (which the GAC still pointedly refers to as the “DAG”, for Draft Applicant Guidebook):

Most representations we received came from brand owners, rights holders, they’re the ones being most agitated by this. I think they also recognized the potential opportunities, but the big issue for them was the costs…
The rights protection mechanisms are still not effective enough, that’s what’s coming to us in the Ministry… If you’re really hoping to sign off the guidebook this week, I think that’s something you really ought to reconsider.

Carvell pointed in particular to the proposed Trademark Clearinghouse and Uniform Rapid Suspension policies as needing work – this is essentially the IP lobby’s position also.
His views were supported by Germany, Norway and the Canadian GAC chair, among others.
A repeated refrain was “we’re not there yet”, which prompted ICANN vice-chair Dennis Jennings to push for a definition of “there”. What, in other words, would make the GAC happy enough to go ahead?
The GAC isn’t great when it comes to providing straight answers to those kinds of questions, but Carvell gave it a shot.
He said that currently the GAC does not believe that the benefits of new TLDs outweigh the costs. When it does, that would be the “key turning point”:

When we get to that position, that the benefits for businesses, for the global economy, for opportunities for business, are going to be greater, scaled-up, greater than the costs to brand owners and those who are going to have shell out big-time in order to effectively subsidize, in their view, perhaps subsidize the process.

The US representative, Suzanne Sene, added that “the whole issue is of feeling confident that benefits will outweigh the costs”.
That’s still worryingly free of a measurable benchmark, if you’re an impatient new TLD applicant.
In a further open meeting today, it became clear that the GAC is still putting forth the idea that there could be a “fast-track” or “trial” style TLD application round for “non-controversial” TLDs – presumably meaning TLDs of little interest to defensive trademark holders.
GAC chair Heather Dryden said today that “introducing a conservative first round is the best way to manage risk in the unknown”, an idea that was promptly challenged by TLD applicants including Minds + Machines CEO Antony Van Couvering.
I don’t get the feeling that the GAC has thought the idea through a great deal. In order to be half-way objective, it would presumably require the created of a second, parallel AGB for pre-approving applications. I don’t think the idea has legs.
But do the GAC’s objections mean that new TLD program, currently pencilled in to open the first application round May 30, 2011, will be delayed?
The GAC has not yet submitted its formal Cartagena advice (it should be published tomorrow), but it will presumably reflect the concerns raised over the last few days.
Under ICANN’s bylaws, the organization has to justify any decision to reject GAC advice and then “try, in good faith and in a timely and efficient manner, to find a mutually acceptable solution.”
European Commission representative Bill Dee invoked that part of the bylaws during yesterday’s meeting, and ICANN chair Peter Dengate Thrush agreed that talks were needed.
Dengate Thrush said he was in favor of a GAC-board meeting over one or two days at some point between now and the San Francisco ICANN meeting next March, to thrash out their differences and Dryden seemed to agree.
If that meeting was held fairly soon, it would not necessarily mean ICANN misses the May 30 deadline.
The current proposed timeline contains a 30-day window between Friday and January 11 in which ICANN staff update the “approved” AGB according to the board’s directions.
There follows an obligatory four-month ICANN outreach and marketing campaign.
Conceivably, although scheduling may be a challenge, if the GAC and board meet and resolve their differences over the next 30 days or so, the May 30 deadline could be workable.
I think it might be quite unlikely that’s going to happen, however.
The ICANN board convenes to discuss and vote on the AGB this Friday. It will be very interesting to see how its resolution is worded, and whether it can both save face and serve the GAC.

New TLDs “not at risk”, but delay not ruled out

Kevin Murphy, December 6, 2010, Domain Registries

ICANN’s program to introduce new top-level domains has not been put at risk by the US government’s recent request for delay, according to both its chairman and chief executive.
Chairman Peter Dengate Thrush and CEO Rod Beckstrom sought to play down the significance of the Department of Commerce letter during a press conference here in Cartagena this afternoon.
Dengate Thrush said the sudden involvement of the US in the new TLD policy was not a surprise, but was “one more factor to take into account” that did not put the program as a whole at risk.
Beckstrom noted that the Commerce letter was submitted to the ongoing public comment period, and would be treated as such, saying “obviously along with other inputs received we will duly consider it”.
Dengate Thrush elaborated, saying ICANN was still considering how to formally respond to the letter.
Because it deals with both Affirmation of Commitments and AGB concerns, it appears that the two threads may be unpicked and dealt with separately.
Both men were obviously more coy about whether the US intervention could delay final approval of the Applicant Guidebook, which the ICANN board will vote on this Friday.
Currently, the plan is to open the first round of applications May 30. But it seems that’s a target, not a promise.
Observing that the AGB continues to stir up passions on both sides of the debate, Dengate Thrush said that it is unlikely that the board will be swayed either way by passion alone.
But if “getting it right” means adding a month or two of delay to the launch date of the program, then that’s what the board will have to do, he said.
A similar sentiment on the constructiveness of comments was put forward by outgoing director Harald Alvestrand during a session yesterday.
He indicated that comments that merely reiterate long-held and previously considered disagreements are unlikely to cause delays, but changed minds based on new information could carry weight.
With the comments of all three directors in mind, it’s probably a bit early to second-guess the board’s Friday decision.
Apparently they are being fed updates on new AGB comments as they are received, so they can be as informed as possible before convening.
My feeling is that a full picture of the decision the board faces is unlikely to emerge for a few days.

Beckstrom: ICANN accountable to world, not just US

Kevin Murphy, December 6, 2010, Domain Policy

ICANN chief Rod Beckstrom opened the organization’s 39th public meeting in Cartagena, Colombia, with a speech that touched on many of the organization’s recent controversies and appeared to take a strong stance against US government interference.
Everything from its political tangles with the International Telecommunications Union, to the recent calls for high-security top-level domains for financial services, to Beckstrom’s own controversial pet project, the proposed DNS-CERT, got a mention.
But probably Beckstrom’s strongest statement was the one which indirectly addressed recent moves by the US government to slam the brakes on ICANN’s new top-level domains program:

We are accountable to the world, not to any one country, and everything we do must reflect that.

Beckstrom acknowledged the controversies in the new TLDs policy, given last week’s strongly worded letter from the US Department of Commerce, which was highly critical of the program.
Commerce assistant secretary Lawrence Strickling has called on ICANN to delay the program until it has justified its decision under the Affirmation of Commitments.
But this morning, Beckstrom echoed sentiments expressed on the ICANN blog last week (my emphasis):

As is often the case with policy decisions in that multi-stakeholder model, not everyone is pleased, and this diversity of opinion contributes to the policy process. For example, last week we received a critical letter from the US Department of Commerce. As with all contributions, ICANN will give these comments careful consideration as part of the implementation of the GNSO policy. We welcome the transparent way that Commerce provided their comments through the public comment process.

How ICANN chooses to deal with the demands of its former master, the US government, is one of the Cartagena meeting’s Big Questions.
Another such question is how ICANN plans to deal with ongoing threats to its legitimacy from international bodies such as the International Telecommunications Union.
Addressing ITU secretary general Hamadoun Toure directly, Beckstrom said:

We have always sought to build our relationships based on mutual respect and integrity, taking into account the unique and distinct mandates entrusted to our organizations. The strengthening of communication between us is a personal priority for me.

Security
Security is one of ICANN’s watchwords, and Beckstrom is a security guy by trade. His speeches typically address the topic to a greater or lesser extent and Cartagena was no exception.
Security policies inherently create tensions. Take, for example, controversies about the strength and enforceability of of Whois policies, or Beckstrom’s own call for a DNS-CERT to oversee DNS risk.
This morning, he said:

The staff under my leadership is willing to go as far on security as the community is willing. And whatever security effort this community decides, we will do our utmost to implement and support, given sufficient resources. Because when it comes to security, how can we ever say we’ve done enough?

And now you need to tell us: where do you want us to go?
Of course, I am sure we can agree that when it comes to security, the question is not what do we want to do? Or what is popular or easy? It’s what do we owe the world? Because all of us care about the global public interest.

He took, in my view, a subtle swing at the Governmental Advisory Committee for putting security at the heart of its ongoing policy demands, while largely failing to cooperate with ICANN’s requests for information on security issues in their own jurisdictions. Beckstrom said:

We have asked GAC members to provide information about security activities in their countries. We appreciate the information some have shared but there have been few responses. As governments urge us to remain committed to security efforts, we in turn request that they help us by responding and working with the ICANN community on this vital mission.

I know there are some European ccTLD registries a bit miffed that ICANN has in recent months gone over their heads, direct to their governments, for this information, highlighting what a tricky political situation it is.
The speech also touched on internationalized domain names, with a shout-out to the recent launch of Russia’s Cyrillic ccTLD, and general global inclusion activities. I expect the text and audio to be published on the ICANN web site to be published shortly.

Bulgarians step up ICANN protest

Kevin Murphy, December 2, 2010, Domain Policy

A domain name registrar association from Bulgaria is laying the groundwork to appeal ICANN’s rejection of the country’s proposed Cyrillic top-level domain.
Uninet has filed a Documentary Information Disclosure Policy request, asking ICANN to publish its reasons for turning down the .бг (.bg) application and the criteria it used.
The domain, which had the backing of the Bulgarian government and people, was rejected in May on the grounds that it is “confusingly similar to an existing TLD”, believed to be Brazil’s .br.
In order to prepare for a future appeal, the Uninet organization wants ICANN to release:

1. The DNS Stability panel working criteria (or parts of it) that were applied to evaluate and subsequently reject the Bulgarian application.
2. The decision of the DNS Stability panel, used to reject the Bulgarian application.

While the ICANN panel’s decision isn’t exactly a state secret (even I have a copy), there seems to be a feeling in Bulgaria that ICANN may not have released all of its reasoning.
The document does not, for example, specify which TLD .бг is confusingly similar to.
It does, however, reveal just how strict ICANN is when it comes to evaluating IDN domains, including a default assumption that any two-letter string is confusing.

We note that two-character strings consisting of Unicode code points in the Latin, Greek, and Cyrillic script blocks are intrinsically confusable with currently defined or potential future country code TLD

We therefore apply a very conservative standard in our assessment of applied-for strings that consist of two Greek, Cyrillic, or Latin characters, including a default presumption of confusability to which exceptions may be made in specific cases.

Uninet said that the Bulgarian government plans to challenge the .бг decision if and when ICANN revises its existing IDN ccTLD Fast Track program to create an appeals process. It wrote:

Many people have criticized the lack of transparency and appeal options in this process, but after the ongoing public comment period we hope that it would be amended by the ICANN Board and the Bulgarian government (as a requester) will have the chance to apply for a re-evaluation of the proposed string.

In the meantime, the Bulgarian government’s IT ministry today started encouraging its citizens to write to ICANN to demand that its application is re-evaluated.
Several already have.