Ready to apply for a gTLD? No, you’re not. Not even remotely

Editor’s Note: This is a guest post by Kieren McCarthy.
So, yes, it’s been a long, drawn-out and dispiriting exercise to get to the point where the structure of the internet will be radically changed forever.
But even if the US government invades ICANN’s offices in Los Angeles, trademark lawyers kidnap Rod Beckstrom, and Marilyn Cade clones herself 100 times, nothing can stop the raw reality that 2011 is the year of the gTLD. It’s happening. So stop sulking and start getting excited about it.
It’s been a long 30 months since Paris in June 2008. Plenty of time to talk and plan and consider the future. The biggest negative impact of this delay however has not been on the process but on the gTLD applicants themselves who have started to persuade themselves they know what they’re doing.
We don’t need a four-month communication period, they cry, we are ready to go. We have been ready to go for two years!
The sad truth however is that you’re not. You’re not even remotely ready to face a brave new world of internet extensions that fit around its users, rather than the other way around.
Sure, you know the rules in the Applicant Guidebook. Well, most of them. And you know how the application process will work (but you don’t though, do you?). But that’s all just paperwork, as soon as you get through the doors of bureaucracy there standing in the brilliant light will be hundreds of thousands of internet users clamoring to hear what you have to tell them, basking in the glory of a new dawn.
Except they won’t.
Instead you are more likely to find yourself coming out of a cinema in a bad part of town just as the sun sets, looking for a taxi and realizing you haven’t got enough cash left to get home.
Make no mistake: new internet extensions are the future of this extraordinary global network. VeriSign doesn’t drop half a million dollars for a one-hour session at an ICANN meeting if it’s doesn’t think it’s critical to its future. But there was a long gap between the invention of the steam engine and the Japanese bullet train. The Wright Brothers took off in 1903 but it took 32 years for the DC-3 to bring air travel to commercial travelers.
The big boys will be fine of course; they have the money and resources to flex and change. But if you are not VeriSign or GoDaddy, how are you going to ensure that your internet dream isn’t just a pipe-dream or, worse still, a nightmare?
The answer is terrifying simple: talk to people.
The fact is that no one knows how the domain name market will pan out in the next few years. There are plenty of ideas, some new, some radical. Some of these will take root; others will fade or fail. The only way to get a sense of what will be a rapidly changing market is to find out what everyone else thinks. You need to talk to everyone, and they need to talk to you.
The other side of this coin is learning from the past. We have had two previous extensions of the internet namespace, albeit much smaller. But those that started up the dot-infos and dot-names were once in the same place as new applicants will be in six months’ time: full of ideas and staring at an uncertain path forward.
The domain name industry, though still maturing, is also not an empty space anymore. There are enough established companies and there have been enough conferences and meetings about that market for relationships to be formed. A status quo of sorts is in place, and a collective sense of how things work has emerged.
Even so, was it only me that listened to person after person in 2010 call ICANN’s economic studies inaccurate and incomplete and thought: “Not one of you has the same idea about the industry you live within.”
How much do new gTLD applicants know or even understanding the different sides of this industry?
If you go to ICANN meetings, you may know some of the politics of it. You may even have grasped some of the multitude of processes that accompany internet infrastructure. But you won’t have got a feel for the sheer business of the internet.
If you come from the domainer industry, chances are you have a sense of the intrinsic value of domains and what makes them move or not move. But even the CEO of Oversee.net, Jeff Kupietsky, said this time last year there needs to be some kind of organized effort to turn what is an ad hoc market into something more stable. Domainers know how auctions work – but not how to build the factory to make the products that are sold.
If you have run a registry in the past, you may have a leg up. But how do you differentiate between useful lessons from the past, and old ways of thinking that will put you at a competitive disadvantage?
How many of those wonderful, market-tested systems have in fact been dangerously patched and cobbled together over the past decade? How will you recognize the market-changing products when they appear?
And, of course, the biggest, the most unknown and yet the most crucially important aspect of new gTLDs: marketing.
In an industry where the epitome of marketing prowess is a woman making double entendres in a tight T-shirt, we all have much to learn from the marketing crowd. When you enter the market alongside 499 other new extensions, you better be damn sure you have a plan to persuade people why they should choose yours.
So what is the solution? Well a big part of one solution is to attend the first ever conference that is dedicated to figuring out this new market.
The .nxt conference on 9-10 February in San Francisco will feature everyone from ICANN’s CEO and the ICANN staff in charge of running the process, to the established players, the visionaries as well as the heretics, the observers and the advisers.
Over two days, you will get a masterclass in what we all collectively know, and are still figuring out, about new internet extensions. It’s the one place where you can check your assumptions and learn about others’. Miss that opportunity and in 12 months’ time you’ll be wondering how you managed to get it all so wrong.
Kieren McCarthy is an author and consultant, formerly ICANN’s general manager of public participation. He is a founder of the Global Internet Business Coalition and general manager of the .nxt conference.

Will Bill Clinton keynote at ICANN San Francisco?

There’s been a rumor going around for at least a month that Bill Clinton is being lined up to provide the keynote address for the next ICANN meeting, to be held in San Francisco in March.
I’m not going to pretend to have any inside information, but I’ve heard it from so many people recently that I thought it was worthy of a post.
One reason the rumor may have been reinvigorated this week is the revelation of the hefty sums ICANN is charging its top sponsors for the San Francisco meeting.
As I reported earlier in the week, VeriSign appears to have paid up $500,000 to get one of two top-tier Diamond-level sponsorship deals for the meeting.
Clinton, like many former world leaders, can command powerful sums for public speaking engagements, reportedly up to $350,000 a gig a few years ago.
ICANN, of course, was the brainchild of the Clinton administration in 1998.
While the US government’s attitude to ICANN’s activities has changed over the years, the organization was formed largely to introduce competition in the registrar and registry markets.
Since these are two likely results of the approval of the new TLDs program, Clinton’s appearance at the meeting where it will possibly happen would be appropriate.

Universe.jobs launches with hundreds of premium domains

The controversial Universe.jobs project has soft-launched, offering jobs listings at hundreds of premium geographic and vocational .jobs domains.
Country and state domains such as usa.jobs, gbr.jobs and texas.jobs, as well as industry domains such as firefighter.jobs and journalist.jobs are live and resolving.
If you visit, say, usa.jobs or rus.jobs, you’ll be presented with a bunch of job listings from the USA or Russia. If you visit retail.jobs, you’ll be bounced to usa.jobs/retail (at least, I was).
Even combinations, such as texas.nursing.jobs, seem to work.
I’ve no idea how many domains have been activated this way, but since all the geographics seem to be active I’m guessing it’s at least several hundred at the second-level.
The site, which is presented as a service of the DirectEmployers Association’s National Labor Exchange, currently says it’s in beta.
But the big questions now are: is this legit, and who owns the domains?
Employ Media, the .jobs registry, had to fight ICANN and mainstream commercial jobs boards in order to drop the contractual restrictions that previously limited .jobs to company names.
But some argued that, despite the relaxation of the string restrictions, employer-independent jobs sites such as Universe.jobs would still be verboten under Employ Media’s charter.
The .JOBS Charter Compliance Coalition, made up of newspaper associations and boards such as Monster.com, tried to get ICANN to reconsider its decision, but failed (kinda).
While the Coalition’s Reconsideration Request was unsuccessful, ICANN did say it will start to monitor Employ Media for compliance with its charter more closely.
More interestingly, perhaps, during the ICANN investigation Employ Media abruptly dropped plans to create a “self-managed” class of domains – names registered to itself, but “used” by third parties such as DirectEmployers.
Did it make good on its promise? It’s difficult to be certain, because the Whois for the many of the domains in question seems to be broken.
I’ve been able to establish that some older domains, such as usa.jobs and nursing.jobs, currently belong to DirectEmployers, but trying to figure out who owns some of the more recently registered geographical .jobs names is an excruciating process.
The Whois link buried at the bottom of the official Employ Media web site directs you to the Whois service provided by VeriSign (which runs the back-end registry infrastructure for .jobs).
VeriSign’s tool does not return the name of the registrant, only details such as the registration date, associated name servers, and the URL of the appropriate registrar’s Whois server.
In the case of all these geo domains, the registrar appears to be NameShare. The Whois server URL given by VeriSign points to a second tool, at whois.nameshare.com, that doesn’t work.
If you try to query, for example, usa.jobs (after filling out the Captcha) you get this message:

[r3] Error Message: Unsupported TLD .jobs

If you visit the NameShare homepage, you will be able to find a third .jobs Whois tool, at whois-jobs.nameshare.com/whois/. This doesn’t seem to work properly either.
This tool will tell you that the domain usa.jobs belongs to DirectEmployers.
However, almost every other Universe.jobs-related domain that I queried returned a “not found” message, even when the domain resolves and the VeriSign tools says it’s been registered for over a month.
I’m not sure what’s going on. Some kind of technical problem, no doubt.

ICANN wants to make millions from SF meeting

ICANN hopes to sign millions of dollars in sponsorship deals for its San Francisco meeting in March.
The organization has revamped its sponsorship options, adding new “Diamond” and “Platinum Elite” tiers (together worth up to $1.5 million) and doubling the price of its existing opportunities.
ICANN is looking for two companies to act as Diamond sponsors, paying $500,000 each, and two more to sign up for the Platinum Elite deal, each paying $250,000.
For the money, these companies will get the best booths, exclusive branding on bags and T-shirts, along with a bunch of other benefits not available to lesser sponsors.
Diamond sponsors will be given a “90-minute industry/technology related presentation delivered by your company at a scheduled session”, which I believe might be a first for ICANN.
They’ll also get “exclusive press access”, according to the ICANN site.
(In Cartagena, “the press” was pretty much just me and the guy from Managing Internet IP. I can’t speak for him, but access to me can be had in SF for the price of a couple of pints of Anchor Steam).
Prices for the Platinum, Gold, Silver and Bronze deals it has offered at previous meetings have also been doubled, to $100,000, $50,000, $20,000 and $10,000 respectively.
ICANN is also looking for another $160,000 to sponsor its three evening events, $125,000 to sponsor the twice-daily coffee breaks and $210,000 to sponsor the lunches.
According to my back-of-the-envelope calculations, ICANN took in less than half a million dollars in sponsorship money for its meeting in Brussels last summer, which was its last big “first-world” gig.
For the March meeting, the organization is clearly hoping to benefit from the concentration of technology companies in the San Francisco bay area, which of course includes Silicon Valley.
I suspect that tapping this pool of sponsor cash may be the main reason the conference is amusingly being referred to officially as the “Silicon Valley in San Francisco” meeting.
How many sponsorship slots get filled by the domain name industry will depend to a degree on how likely it appears that ICANN will approve the new top-level domains program at the SF meeting.
I expect there would be a reluctance from registry service providers to drop half a million bucks on a conference from which the main headline at the end of the week is “ICANN delays gTLDs again”.
The current ICANN budget, incidentally, forecasts just $500,000 in sponsorship revenue for fiscal 2011, which ends in June. Its meetings typically cost $1 million each to run.
UPDATED: In the two hours since this post was first published, .com registry VeriSign has appeared on the ICANN web site as the first $500,000 “Diamond” sponsor of the meeting.

ICANN rejects Bulgarian IDN info request

A Bulgarian domain name association has had its request for information about ICANN’s rejection of the domain .бг itself rejected.
As I blogged last month, Uninet had filed a Documentary Information Disclosure Policy request with ICANN, asking it to publish its reasons for rejecting the Cyrillic ccTLD.
The organization wants to run .бг, which is broadly supported in Bulgaria, despite the fact that ICANN has found it would be confusingly similar to Brazil’s .br.
Uninet believes it needs more information about why the string was rejected, in advance of a planned appeal of its rejection under the IDN ccTLD Fast Track process.
But the group has now heard that its request “falls under multiple Defined Conditions of Nondisclosure set forth in the DIDP” because it covers internal communications and “trade secrets”, among other things.
ICANN’s response suggests instead that Uninet contact the Bulgarian government for the information.
I’m told that Uninet may now file a Reconsideration Request in order to get the data it needs, although I suspect that’s probably optimistic.
Ironically, neither Uninet’s request nor the ICANN response (pdf) have been published on its DIDP page.

ICANN given 27 New Year’s resolutions

There’s a pretty big shake-up coming to ICANN in 2011, following the publication late last week of a report outlining 27 ways it should reform its power structures.
The final recommendations of its Accountability and Transparency Review Team (pdf) notably direct the organization to figure out its “dysfunctional” relationship with governments once and for all.
ICANN will also have to revamp how it decides who sits on its board of directors, when its staff can make unilateral decisions, how the voices of stakeholders are heard, and how its decisions can be appealed.
The ATRT report was developed, independently, as one of ICANN’s obligations under its Affirmation of Commitments with the US government’s Department of Commerce.
As such, ICANN is pretty much bound to adopt its findings. But many are written in such a way to enable some flexibility in their implementation.
The report covers four broad areas of reform, arguably the most important of which is ICANN’s relationship with its Governmental Advisory Committee.
As I’ve previously noted, ICANN and the GAC have a major stumbling block when it comes to effective communication due mainly to the fact that they can’t agree on what GAC “advice” is.
This has led, most recently, to delays with the TLD program, and with ICM Registry’s application for .xxx.
The ATRT report tells ICANN and the GAC to define “advice” before March this year.
It also recommends the opening of more formalized communications channels, so ICANN can tell the GAC when it needs advice, and on what topics, and the GAC can respond accordingly.
The report stops short of telling ICANN to follow GAC advice on a “mandatory” basis, as had been suggested by at least one GAC member (France).
The ICANN will still be able to overrule the GAC, but it will do so in a more formalized way.
ICANN’s public comment forums also look set for a rethink.
The ATRT report recommends, among other things, separating comment periods into at least two flavors and two phases, giving different priorities to different stages of policy development.
It could also could break out comment periods into two segments, to give commentators the chance to, in a second phase, rebut the earlier comments of others.
The three ICANN appeals processes (its Ombudsman, the Reconsideration Request process and the Independent Review Process) are also set for review.
The ATRT group wants ICANN to, before June, hire “a committee of independent experts” to figure out whether these procedures can be make cheaper, quicker and more useful.
The IRP, for example, is pretty much a rich man’s appeals process. The Ombudsman is seen as too cozy with ICANN to be an effective avenue for complaints. And the Reconsideration Request process has too many strict prerequisites to make it a useful tool.
The report includes a recommendation that ICANN should, in the next six months, clarify under what circumstances its is able to make decisions without listening to bottom-up consensus first:

The Board should clarify, as soon as possible but no later than June 2011 the distinction between issues that are properly subject to ICANN’s policy development processes and those matters that are properly within the executive functions performed by the ICANN staff and Board

ICANN has also been told to address how it selects its directors, with emphasis on:

identifying the collective skill-set required by the ICANN Board including such skills as public policy, finance, strategic planning, corporate governance, negotiation, and dispute resolution.

Other the recommendations themselves, the ATRT spends part of its 200-page report moaning about how little time (about nine months) it had to carry out its work, and how little importance some ICANN senior staff seemed to give to the process.
All of the 27 recommendations are expected to be implemented over the next six months. The report is currently open for public comment here.

The Top Ten Hottest Posts of 2010

Tumbleweeds are blowing through the domain name industry this week, which makes it an excellent time to take a look back at 2010, in the form of a list of this blog’s most widely read posts.
In descending order, here are the top ten DomainIncite stories of 2010:
ICANN had no role in seizing torrent domains
When ICANN stood accused by the blogosphere of helping the US government shut down dozens of .com domains in November, it took the organization a full week to officially deny it. In the meantime, it kicked off a Twitter campaign encouraging people to visit this post, making it the year’s most-read by some margin.
dotFree’s “free” domain names explained
Everyone wants something for nothing, so when I provided the first interview with the chief executive of the recently launched dotFree Group in August, it gathered a lot of attention. It turned out .free domains may not be as “free” as some had hoped.
WordPress.com becomes a domain name registrar
When I spotted that WordPress.com owner Automattic had received an ICANN registrar accreditation, company CEO Matt Mullenweg was good enough to link back to this post when he subsequently announced the move to his readers in October.
First reactions to ICANN’s VI bombshell
It was the biggest shake-up in the domain name industry in a decade – ICANN announced in November that it would start letting registrars and registries own each other. The full repercussions have yet to be felt, but this post summarized some of the early reactions.

ICANN will not attend White House drugs meeting
When and how governments and law enforcement should be able to block domain names is an ongoing hot topic for the industry. This September post broke the news that ICANN would not participate in US talks about blocking “fake pharmaceuticals” web sites.
Porn group starts anti-XXX campaign
The ongoing .xxx drama continues to be one of the key domain name industry stories that plays just as well with a mainstream readership. In addition, including the keywords “xxx”, “group” and “porn” in the same headline has proven disturbingly useful for acquiring search engine traffic.
Gaming scandal hits Russian domain launch
Internationalized domain names finally arrived on the internet in 2010, and the launch of Russia’s .РФ (.rf) IDN ccTLD was easily the biggest success story. It has racked up almost 700,000 registrations in the last two months, but was hit by allegations of registrar gaming, which I reported on here.
ICANN told to ban .bank or get sued
The road to the approval of ICANN’s new gTLD program was widely anticipated to have wrapped up by the end of the year. It didn’t, but that didn’t stop some eleventh-hour special pleading by organizations such as the Financial Services Roundtable.
Whistleblower alleged shenanigans at DirectNIC
DirectNIC has had its fair share of legal troubles in 2010. First it was sued for cybersquatting by Verizon (which it denied) and then, as I reported in this December post, a former employee alleged a complex scheme to make money through fraudulent domain arbitrage (which it denied, then settled).
Survey reveals demand for .brand TLDs
A World Trademark Review survey revealed mixed reactions from trademark lawyers and corporate marketing departments to new TLDs, but it did reveal that most companies would use their “.brand” TLD, if they had one, as their primary online address.
Let’s hope 2011 brings such a diverse range of interesting topics to write about. I’m certain it will.

Go Daddy passes 45 million domains milestone

Go Daddy now has 45 million domain names under management.
That’s the word from Scottsdale tonight. The news comes less than a year after the registrar announced its 40 millionth domain name registration.
According to the company, it “is registering, renewing or transferring a domain name every eight-tenths of a second” and is now “larger than eight of its closest competitors combined”.
Obviously, this is great news for Go Daddy.
It also means that the company is in a very dominant position in the market, which may attract more attention in future.

Incumbents get the nod for new TLD apps

Domain name registries such as Neustar, VeriSign and Afilias will be able to become registrars under ICANN’s new top-level domains program, ICANN has confirmed.
In November, ICANN’s board voted to allow new TLD registries to also own registrars, so they will be able to sell domains in their TLD direct to registrants, changing a decade-long stance.
Late last week, in reply (pdf) to a request for clarification from Neustar policy veep Jeff Neuman, new gTLD program architect Kurt Pritz wrote:

if and when ICANN launches the new gTLD program, Neustar will be entitled to serve as both a registry and registrar for new gTLDs subject to any conditions that may be necessary and appropriate to address the particular circumstances of the existing .BIZ registry agreement, and subject to any limitations and restrictions set forth in the final Applicant Guidebook.

That doesn’t appear to say anything unexpected. ICANN had already made it pretty clear that the new vertical integration rules would be extended to incumbent gTLD registries in due course.
(However, you may like to note Pritz’s use of the words “if and when”, if you think that’s important.)
Neustar’s registry agreement currently forbids it not only from acting as a .biz registrar, but also from acquiring control of greater than 15% of any ICANN-accredited registrar (whether or not its sells .biz domains).
That part of the contract will presumably need to be changed before Neustar applies for official registrar accreditation or attempts to acquire a large stake in an existing registrar.
VeriSign and Afilias, the other two big incumbent gTLD registries, have similar clauses in their contracts.

ICANN sets date for GAC showdown

ICANN and its Governmental Advisory Committee will meet for two days of talks on the new top-level domains program in Geneva from February 28, according to GNSO chair Stephane Van Gelder.
As well as the Applicant Guidebook (AGB) for new TLDs, the meeting is also expected to address the GAC’s outstanding concerns with the .xxx TLD application.
While I’d heard Geneva touted as a possible location, this is the first time I’ve heard a firm date put to it. As well as Van Gelder, other sources have heard the same date.
Talks ending March 1 would give ICANN less than two weeks before its public meeting in San Francisco kicks off to get the AGB into GAC-compatible shape before the board votes to approve it.
Is that a realistic timeframe? I guess that will depend on how the GAC meeting goes, the depths of the concessions ICANN decides to make, how receptive the GAC is to compromise, and whether it is felt that more public comment is needed.
Also, as I speculated last week, ICANN may have to officially invoke the part of its bylaws that deals with GAC conflicts, which it does not yet appear to have done, if it wants to approve the Guidebook at the end of the San Francisco meeting in March.
If the program is approved in March, that would likely lead to applications opening in August.
There’s likely to be one ICANN board meeting between now and Geneva – its first meeting of the year is usually held in late January or early February – so there’s still time for ICANN to make changes to AGB based on public comment, and to get its process ducks in a row.
There’s also plenty of time for the GAC to provide its official wish-list or “scorecard” of AGB concerns, which I believe it has not yet done.
Van Gelder also wonders on his blog whether the Geneva meeting will take place in the open or behind closed doors.
ICANN’s director of media affairs, Brad White, put this question to ICANN chair Peter Dengate Thrush during a post-Cartagena interview. This was his answer:

We haven’t actually resolved the rules of engagement with the GAC on this particular meeting but the standard position for all organizations within ICANN is that they are open… On the other hand if at any point think we the negotiation could be assisted by a period of discussing things in private I guess we could consider that.

That looks like a “maybe” to me.