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ICANN names date for Applicant Guidebook

Kevin Murphy, February 22, 2011, Domain Registries

ICANN has put a tentative date on the release of its Applicant Guidebook for new top-level domains.
In publishing its summary and analysis of the proposed final version of the AGB today, ICANN also issued this timetable:

Expected Path Forward
* Board-GAC Consultations: 28 Feb – 1 Mar 2011
* ICANN meeting: 14 – 18 Mar 2011
* Release of Applicant Guidebook: 14 Apr 2011

Note that it says “release”, not “approval”.
The nearest scheduled ICANN board of directors meeting to the release date is April 21.

ICANN prepares for trademark fight with GAC

Kevin Murphy, February 22, 2011, Domain Registries

ICANN thinks the benefits of new top-level domains will outweigh the costs, and it preparing for a scrap when it meets its Governmental Advisory Committee in Brussels next week.
In a number of briefing documents published yesterday, ICANN makes it clear that it does not think the new TLD program will create a huge economic burden on trademark holders.
Brussels is possibly the final major hoop ICANN has to jump through before its board of directors will be able to sign off the Applicant Guidebook and start accepting new TLD applications.
There are a number of areas where the GAC and ICANN disagree. Next week’s meeting is intended to identify those differences, and to try to find ways to resolve them.
The GAC’s biggest problem with the new TLD program, as its members made clear in Cartagena and subsequently, is that it’s not convinced new TLDs won’t cost brand holders a bundle.
What will be the damage caused by cybersquatting? How much money will big business be forced to spend on defensive registrations?
Nobody knows for sure, and none of the independent third-party economic reports commissioned by ICANN ventures anywhere near a comprehensive empirical study.
So the GAC wants another economic study done, to quantify the costs and benefits of new TLDs, and to figure out how voluminous defensive registrations is likely to be.
ICANN disagrees, saying essentially that more studies are pointless, and that demand for defensive registrations in new TLDs are likely to be low.

The Board position is that defensive registrations will increase but not in numbers projected by some trademark holders

Estimates from the Coalition Against Domain Name Abuse, CADNA, last year put the cost to brands of the new TLD program at $746 million. But ICANN isn’t buying that:

The Board also believes that economic studies do not provide evidence that new TLDs will result in demand for defensive registrations. Existing independent studies, that the Board is seeking to validate, indicate that defensive registrations occur only in the very largest, well-established registries only.

the Board is seeking (and will publish) independent corroboration that:
• trademark holders generally do not register their trademarks in all the current generic TLDs.
• Therefore, it is not expected that trademark owners, in general, register their trademarks in new gTLDs, and
• due to the expected costs to run a registry and the expected low number of defensive domain name registrations, there is no economic incentive for an applicant to obtain a TLD for the sole purpose of making money from defensive trademark registrations.

ICANN does not identify these “independent studies”, but the data points cited in the document (pdf) point to a February 2009 article published on CircleID by Paul Stahura, and a comment made on that article by Richard Tindal that cites third-party data.
The Stahura report is arguably the most comprehensive carried out on defensive registrations in existing open gTLDs, concluding that the current cost to trademark holders is very low indeed, and that the bulk of typosquatting and trademark enforcement goes on in .com.
The research suggested that each new TLD would create costs in the tens of thousands of dollars per year, across the whole universe of trademark interests. It used baseline registrar fees in its calculations, unlike the CADNA report, which used sunrise fees about a hundred times greater.
But the Stahura study is “independent” only in the respect that it was not commissioned by ICANN or carried out with its blessing or participation.
At the time it was published, Stahura was president of eNom owner Demand Media, which is expected to be a new TLD applicant. Tindal, apparently also cited in ICANN’s latest report, was senior vice president, registry, for Demand Media.
Independently validating the report’s conclusions will be important, if only to avoid accusations that ICANN is making its decisions based on the views of those who would benefit from new TLDs.
Another of ICANN’s newly published briefing documents (pdf) also address the specific trademark protection mechanisms called for in the Applicant Guidebook.
The GAC has not yet published, or provided ICANN with, its specific recommendations relating to these mechanisms (I understand that will come in the next day or two) but they are expected to call for a tightening of the rules governing the Trademark Clearinghouse and Uniform Rapid Suspension policy.
Unlike several parts of yesterday’s briefing papers, ICANN’s language when discussing these two mechanisms does not suggest to me that it is preparing to substantially compromise.
With trademarks just one of many issues under discussion, Brussels is shaping up to becoming very interesting indeed.

Wanted: official ICANN tweeter

Kevin Murphy, February 19, 2011, Domain Policy

ICANN is looking to beef up its media relations department, and has put out its feelers for someone to take over its Twitter and Facebook accounts.
The organization has posted a job opening to its hiring page for a media and marketing coordinator, reporting to director of marketing and outreach Scott Pinzon and head flack Brad White.
Responsibilities include writing “blogs, tweets, and status updates on ICANN’s behalf for Twitter, Facebook, LinkedIn, and other platforms”.
I believe that currently @ICANN is usually authored by Pinzon.
The role also includes more traditional media relations activities, such as writing press releases and fielding calls from journalists and bloggers.
ICANN has also started looking to fill an opening for a publications manager for its marketing department. I believe both positions are new.
Also of note: ICANN is no longer advertising for a compliance director, raising hopes in some quarters that it has finally found a replacement for David Giza, who left unexpectedly last July. UPDATE: it’s back.

ICANN cancels Jordan meeting

Kevin Murphy, February 17, 2011, Domain Policy

ICANN will not hold its 41st public meeting in Amman, Jordan, apparently due to safety concerns in the region, which is experiencing a rash of sometimes violent protest.
In an email to the GNSO Council half an hour ago, ICANN vice president of policy development support David Olive wrote:

The ICANN June meeting will not take place in Jordan. A decision was made and the Jordanian host has already been contacted about this change.
In a day or so, there will be a formal ICANN announcement concerning this matter as well information on the location for the next meeting.

The rumor currently circulating on Twitter and mailing lists is that Singapore is a likely replacement candidate. Singapore, like Jordan, recently received an IDN ccTLD in its local script.
Following popular revolutions in Tunisia and Egypt over the last several weeks, many Middle Eastern nations, including Jordan, have experienced anti-government protests, some of which have turned violent.
ICANN has been very sensitive to the security of its delegates since many stakeholders stayed at home rather than attend its terrorist-threatened meeting in Nairobi, Kenya, a year ago.

ICANN confirms TLD delays after sponsorship closes

Kevin Murphy, February 17, 2011, Domain Registries

ICANN has officially confirmed that it does not intend to launch the new top-level domains program at its meeting in San Francisco next month.
The news came just one day after the organization stopped accepting sponsorship deals, at the new controversially higher rate, for the meeting.
In a blog post, ICANN’s Jamie Hedlund said that a vote on the new TLD program would not be possible due to the upcoming consultation with the Government Advisory Committee in Brussels.
He wrote:

In addition to the Brussels consultation, the bylaws-defined consultation will take place on 17 March, the day before the Silicon Valley–San Francisco Board Meeting. Because of the timing of the bylaws consultation, the Board will not approve or announce the new gTLD program at that Board Meeting.

Now, the timing of this announcement could just be a coincidence, it could be related to ICANN’s fast-approaching deadline for publishing meeting documents, but the fact that it came the day after the sponsorship deadline for SF passed raised an eyebrow chez DI.
ICANN has known about the timing of the GAC consultation since at least January 25, when its board of directors approved the March 17 schedule.
Chairman Peter Dengate Thrush was quoted as saying new TLDs were likely off the menu for SF as early as February 3, and senior vice president Kurt Pritz echoed that view a week ago.
With March 18 no longer a possibility for the Applicant Guidebook getting approved, what does that mean for the new TLDs timetable?
Some observers believe that we’ll have to wait for the ICANN meeting in Amman, Jordan, in June, which could see the first-round application window open in October.
I’m not convinced we’ll have to wait that long. It seems possible that ICANN will eschew the fanfare of a public meeting and approve the final draft of the Guidebook over the phone whenever it’s ready.
The first new TLDs are expected to go live on the internet approximately 15 months after the Guidebook gets the nod.

My highlights from .nxt

Kevin Murphy, February 16, 2011, Gossip

The jetlag has finally worn off, and I’ve had a few days to cogitate, so I thought I’d share some of my personal highlights of the .nxt conference last week.
In no particular order, these are the things that put a smile on my face:
Kieren McCarthy’s opening speech. The analogy he drew between the introduction of new top-level domains and the building of San Francisco’s bridges was either divinely inspired or Satanically tortured. Either way, it worked. Nice bit of writing.
Meeting a genuine outsider. It’s rare I get to meet anybody at this type of meeting who’s not already familiar with ICANN and the domain market, but I did at .nxt. Dude gave me a fake name and said he’d showed up primarily to see if his competitors were there, ahead of a possible TLD bid. When I asked him what information would make his life easier, he said “help with the acronyms”. Figures.
The “Reality Check” session. I took six pages of notes, so I must have found it informative.
Juan Diego Calle’s keynote. He may not be the world’s greatest public speaker, but Calle’s speech, which talked the crowd through .co’s pretty smart marketing strategy, was good content.
John Berryhill’s panels. Everybody bangs on about how funny this guy is, but the .nxt panels he moderated really gave him a platform to exercise his wit. He’s good value, but I feel certain that if I ever let him represent me in court we’d both find ourselves banged up on contempt charges.
San Francisco. I lived there for eight years, and last week was my first time back there since 2007. Great to visit the old haunts. Beautiful weather, too, for this time of year.
Free candy. Great big bowls of the stuff were laid out after the closing session. Nice touch.
Me. Virtually everybody I met for the first time was already a DI reader, which was hugely gratifying. The notable exception was a certain ICANN staffer, who’d never heard of the site. That’s fair enough, I suppose – it’s not like I cover ICANN much.
Overall, I had a great few days at .nxt, and I look forward to the next one.

VeriSign’s upcoming battle for the Chinese .com

Kevin Murphy, February 16, 2011, Domain Registries

Could VeriSign be about to face off against China for control of the Chinese version of .com? That’s an intriguing possibility that was raised during the .nxt conference last week.
Almost as an aside, auDA chief Chris Disspain mentioned during a session that he believes there are moves afoot in China to apply to ICANN for “company”, “network” and “organization” in Chinese characters. In other words, .com, .net and .org.
I’ve been unable to find an official announcement of any such Chinese application, but I’m reliably informed that Noises Have Been Made.
VeriSign has for several quarters been open about its plans to apply for IDN equivalents of its two flagship TLDs, and PIR’s new CEO Brian Cute recently told me he wants to do the same for .org.
While neither company has specified which scripts they’re looking at, Chinese is a no-brainer. As of this week, the nation is the world’s second-largest economy, and easily its most populous.
Since we’re already speculating, let’s speculate some more: who would win the Chinese .com under ICANN’s application rules, VeriSign or China?
If the two strings were close enough to wind up in a contention set, could VeriSign claim intellectual property rights, on the basis of its .com business? It seems like a stretch.
Could China leapfrog to the end of the process with a community application and a demand for a Community Priority Evaluation?
That also seems like a stretch. It’s not impossible – there’s arguably a “community” of companies registered with the Chinese government – but such a move would likely stink of gaming.
Is there a technical stability argument to be made? Is 公司. (which Google tells me means “company” in Chinese) confusingly similar to .com?
If these TLDs went to auction, one thing is certain: there are few potential applicants with deeper pockets than VeriSign, but China is one of them.
UPDATE: VeriSign’s Pat Kane was good enough to post a lengthy explanation of the company’s IDN strategy in the comments.

Rumor sites fair game under UDRP

Kevin Murphy, February 14, 2011, Domain Policy

Could Apple shut down MacRumors.com using the Uniform Dispute Resolution Policy?
That seems like a fair interpretation of a recent WIPO decision over the domain name LegoRumors.com, which was handed over to Lego Juris, maker of the popular toys.
LegoRumors.com leads to blog-style news site, not many months old, that reports on Lego products.
The site is a bit of a mess – poorly written, spammy, and ad-heavy. You’d have to be nuts to think it was an official Lego site.
It does appear to contain original content, and does not look to me like the kind of clear-cut cybersquatting that the UDRP was intended to address.
Lego succeeded in seizing the domain, regardless. The WIPO panelist (in a decision that could also have used a run through a spell-checker) found:

The disputed domain name consists of two different words, one consisting of the Complainants registered trademark and other of a generic term “rumors”. The Panel considers that the addition of the generic denomination, especially when added to a famous trademark is not sufficient to avoid confusion.

Pay attention, “rumors” sites.
The panelist also found that the domain name was registered in bad faith, on the basis that the registrant clearly was aware of Lego’s trademark (because he’s writing about Lego) and because the site contained sponsored links to potential competitors.
Apply this logic to MacRumors.com, which knowingly uses an Apple trademark in its domain name, writes about Apple products, and currently shows ads for BlackBerry and Adobe products that compete with Apple.
I’m not suggesting for a second that MacRumors is in any danger of losing its domain, but if the UDRP was implemented equitably, this case could be seen as scary precedent.

VeriSign scores big win in .com pricing lawsuit

Kevin Murphy, February 14, 2011, Domain Registries

VeriSign has successfully had an antitrust lawsuit, which claims the company has been raising .com domain name prices anti-competitively, dismissed by a California court.
While it’s encouraging news if you’re a VeriSign shareholder, the Coalition for ICANN Transparency, which filed the suit, will be allowed to amend and re-file its complaint.
The basis for the dismissal (pdf) goes to the central irony of CFIT – the fact that, despite its noble name, it’s not itself a particularly transparent organization.
CFIT was set up in 2005 in order to sue ICANN and VeriSign over their deal that gave VeriSign the right to raise the price of .com and .net domains, and to keep its registry contracts on favorable terms.
While it was cagey about who was backing the organization, those of us who attended the ICANN meeting in Vancouver that year knew from the off it was primarily a front for Momentous.ca, owner of Pool.com and other domainer services.
In dismissing the case last Friday, Judge Ronald Whyte decided that CFIT’s membership is vague enough to raise a question over its standing to sue on antitrust grounds. He wrote:

By failing to identify its purported members, CFIT has made it impossible to determine whether the members are participants in the alleged relevant markets, or whether they have suffered antitrust injury. Because the [Third Amended Complaint] identifies no members of CFIT, it must be dismissed.

While CFIT had disclosed some time ago Pool.com’s involvement, it recently tried to add uber-domainer Frank Schilling’s Name Administration Inc and iRegistry Corp to the list of its financial supporters.
But Whyte was not convinced that the two companies were CFIT “members” with standing to sue.
Whyte decided that CFIT’s complaint, “fatally fails to allege facts showing that iRegistry or Name Administration were financial supporters or members at the time the complaint was filed”.
He also denied CFIT’s demand for a jury trial.
CFIT wants VeriSign to return all the excess profits it has made on .com registrations since it started raising its prices above $6.
If CFIT were to win, it would severely curtail VeriSign’s ability to grow its registry business, and could lead to billions being wiped off its accounts.
The organization has been given leave to file a fourth amended complaint, so it’s not over yet.

ICANN terminates another registrar

Kevin Murphy, February 14, 2011, Domain Registrars

Another tiny domain name registrar has been given its marching orders by ICANN.
Best Bulk Register, which looks to have only a few hundred domains under management, will be shut down March 4, according to a letter (pdf) from ICANN’s compliance department.
The company had failed to pay over $10,000 in fees, and was not providing Whois services as required by the Registrar Accreditation Agreement, according to ICANN.
The registrar’s web site does not currently appear to resolve.
Best Bulk has until tomorrow to pick a registrar to take over its domains, or ICANN will pick one for it.