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FDA to get domain name takedown role?

Kevin Murphy, October 4, 2010, Domain Policy

The US Food and Drug Administration may in future take a stronger role in having domain names associated with rogue internet pharmacies shut down.
Following the meeting between domain name registrars and registries and the Obama administration at the White House last week, I reached out to a few attendees to find out what was discussed.
I didn’t have much luck, to be honest. Some said the meeting was quite dull. But Christine Jones, Go Daddy’s general counsel, was good enough to answer a few questions via email.
The meeting was scheduled to discuss voluntary measures domain firms can take to shut down web sites selling counterfeit pharmaceuticals. I asked whether any specific solutions were discussed.
Jones replied: “Not specifically. There could be an FDA-led solution at some point, which Go Daddy supports.”
The FDA has taken action against illegal online pharmacies in the past, but it does not currently appear to do so on a day-to-day basis.
In November 2009, the agency sent warning letters to the operators of 136 web sites that appeared to be selling medicines illegally. The letters were also sent to the registrars of record for the sites’ domains, most of which were taken down.
The FDA said at the time that the intention was to alert the registrars that the registrants in question may have been in violation of their terms of service and eligible for termination.
In general, the FDA says that overseas pharmacies selling prescription drugs into the US, whether counterfeit or not, is illegal. What this would mean for any “FDA-led solution” is a matter for speculation.
It’s well-known that sick people in the US tend to pay more for their prescription drugs than in other nations, due in part to years of protectionist policies designed to keep the pharma business healthy.
While there are plenty of crooks selling potentially dangerous bogus pills online, some say there are also many legitimate Canadian pharmacies online that supply authentic products more cheaply to US-based prescription holders.
Currently, many US registrars use services such as LegitScript to identify potentially infringing sites. Demand Media’s registrar, eNom, is the most recent convert.
LegitScript, which also only approves US pharmacies, is subject to a certain degree of controversy.
Last week it threatened to sue a web site that made a number of allegations about its financing and the motivations of founder John Horton.
Horton founded LegitScript in 2007, shortly after leaving his Bush administration role as associate deputy director of the Office of National Drug Control Policy.
LegitScript’s main competitor, PharmacyChecker.com, recently asked the US Congress to investigate Horton for alleged ethics violations, claiming he set up LegitScript while still in government.
In April 2007, the ONDCP issued a report which harshly criticized PharmacyChecker for approving Canadian pharmacies that sell drugs to US citizens over the internet, which it said was illegal.
The domain name legitscript.com was initially registered on March 20, 2007. The earliest Whois record I can find, from July that year, shows Horton was the registrant.
Horton’s LinkedIn profile says he left the administration in May 2007.
It seems likely that even if LegitScript did not exist until Horton was out of government, he was preparing its foundations months earlier, at the same time as his office was trashing his future competitor.
Finally, to return to last week’s White House meeting, I asked Go Daddy’s Jones whether the focus was on healthcare or IP protection, and she had this to say:

The focus of this particular meeting was definitely not IP protection. Although IPEC [Intellectual Property Enforcement Coordinator] organized the meeting, there were administration officials and law enforcement attending from many areas of the government. The focus was on finding ways to deal with the rogue pharmacy issue, to get non-compliant registrars to join the fight, and to beef up AUPs to cover registrars in these cases.

She also said that the topic of COICA, the Combating Online Infringement and Counterfeits Act, was not raised.
As I’ve previously reported, ICANN did not attend the White House meeting.

ICANN cans broke registrar

Kevin Murphy, October 1, 2010, Domain Registrars

4Domains.com has lost its registrar accreditation after ICANN decided it had gone insolvent.
ICANN has alleged numerous other violations of the Registrar Accreditation Agreement, but told the registrar that its insolvency allows it terminate the accreditation with immediate effect.
ICANN’s letter to 4Domains (pdf) describes a company unable not only to pay its roughly $6,110 in due ICANN fees, but also to fund its registry accounts, service its customers and pay its staff.
From this, ICANN has concluded that the registrar is insolvent, and has terminated its accreditation.

4Domains is acting in manner that endangers the stability and operational integrity of the Internet, which is a separate grounds to support ICANN’s termination of the 4Domains RAA.

ICANN said 4Domains was also failing to escrow its registrant data, “due to an inability of the 4Domains programmer to resolve the escrow deposit issues”.
But it has this week supplied ICANN with an electronic copy of its customer database, so it appears that most registrants will be protected should their domains be transferred to another registrar.
The company has been told it may now nominate another registrar to take over its accounts in bulk.
4Domains was accredited in 2000, making it one of the first registrars to go live. According to DotAndCo.net, it has about 25,000 active registrations in five gTLDs.

Now .mobi wants to auction ultra-short domains

Kevin Murphy, October 1, 2010, Domain Registries

Afilias-owned dotMobi has applied to ICANN to auction off one and two-letter .mobi domain names, following in the footsteps on other top-level domain registries.
The company had a plan to selectively allocate some such domains based on a Request For Proposals approved by ICANN almost two years ago, now it wants to be able to auction off whatever domains remain.
dotMobi said (pdf):

Once the previously approved RFP round has concluded, dotMobi will conduct an auction of any remaining domains according to a schedule determined by dotMobi. For any domains not allocated during either the RFP or auction rounds, dotMobi will announce a release date and will invite open, first-come-first-served registrations.

Requests to allocate one and two-character domains have previously been submitted and approved by Neustar (.biz), Afilias (.info), puntCAT (.cat), Tralliance (.travel) and RegistryPro (.pro).
Telnic (.tel) has a similar proposal still under board review.
Such auctions offer a one-time windfall for the registry operator. NeuStar’s .biz auction raised a reported $360,000 last year.
As DomainNameWire reported yesterday VeriSign has withdrawn its application for one-letter auctions in .net. Its proposal would have seen expired one-character domains returned to registry control, allowing them to be re-auctioned.

Arab League asks ICANN for recognition

Kevin Murphy, October 1, 2010, Domain Policy

The League of Arab States has called on ICANN to formally recognize the Arab region.
UPDATED: Read this correction.

Price increase on the cards for .biz

Kevin Murphy, September 30, 2010, Domain Registries

NeuStar is to raise its registry fee on .biz domain names by $0.45, to $7.30 year, according to a letter sent to ICANN by the company’s vice president of registry services.
The changes will come into effect April 1, 2011, following the mandatory notice period registries have to give their registrar partners.
NeuStar has just seen a monthly decrease in total .biz registrations, from 2,070,343 to 2,065,389 at the start of the month, according to HosterStats.com.

New TLD competition group throws in the towel

Kevin Murphy, September 29, 2010, Domain Registries

The ICANN working group tasked with deciding whether registrars should be allowed to apply for new top-level domains has failed to reach agreement after over six months of talks.
This means it will be down to the ICANN board of directors to decide, possibly at its next meeting, what the rules should be on vertical integration and cross ownership in new TLDs.
It’s been pretty clear from the Vertical Integration Working Group’s recent discussions that there would be no chance of the group reaching a consensus on the headline topics in the remaining time allotted to it.
Within the last two hours, the GNSO Council has been notified that the group has failed to reach consensus.
Should ICANN-accredited registrars be allowed to apply for new TLDs? Should registries be allow to sell direct to consumers? Should registrars be able to own stakes in registries? Vice versa? How much? Whither the .brand?
All these questions will now have to be resolved by the ICANN staff and board.
Currently, the Draft Applicant Guidebook limits registry/registrar cross-ownership to 2%, effectively barring existing registrars from applying to run new TLD registries.
While the VI working group has been working on the problem since February, positions quickly became entrenched based on the commercial interests of many participants. There has been no substantial progress towards compromise or consensus in months.
But the group did manage to reach rough agreement on a number of peripheral problems that will have a lesser economic impact on the incumbent registries and registrars.
For example, the board will likely be told that “single registrant, single user” TLDs, a variant of the .brand where the registry is the only registrant, should be looked into further.
On the core issue of cross ownership, three proposals are on the table.
One, the Free Trade Proposal, would eliminate such restrictions entirely. Two others, RACK+ and JN2+, would increase the limits to 15%.
The RACK+ proposal is the closest to the status quo in terms of barring vertical integration, while JN2+ contains explicit exceptions for .brand TLDs and smaller community registries.
Given the lack of consensus, it’s quite feasible that the ICANN board may decide to cherry pick from two or more proposals, or come up with something entirely novel. We’ll have to wait and see.

ICANN will not attend White House drugs meeting

Kevin Murphy, September 28, 2010, Domain Policy

ICANN has declined an invitation from the Obama administration to attend a meeting tomorrow to discuss ways to crack down on counterfeit drugs web sites.
The meeting, first reported by Brian Krebs, was called with an August 13 invitation to “registries, registrars and ICANN” to meet at the White House to talk about “voluntary protocols to address the illegal sale of counterfeit non-controlled prescription medications on-line.”
The meeting is reportedly part of the administration’s Joint Strategic Plan to Combat Intellectual Property Theft, which was announced in June.
It also follows a series of reports from security firms that called into question domain name registrars’ willingness to block domains that are used to sell fake pharma.
ICANN tells me that, following talks with White House Intellectual Property Enforcement Coordinator Victoria Espinel, it was agreed that it would “not be appropriate” for ICANN to attend.
The decision was based on the fact that ICANN’s job is to make policy covering internet names and addresses, and not to regulate the content of web sites.
ICANN’s vice president of government affairs for the Americas, Jamie Hedlund, said the meeting was “outside the scope of our role as the technical coordinator of the Internet’s unique identifiers.”
I suspect it also would not have looked great on the global stage if ICANN appeared to be taking its policy cues directly from the US government rather than through its Governmental Advisory Committee.
Demand Media-owned registrar eNom, which has took the brunt of the recent criticism of registrars, recently signed up to a service that will help it more easily identify and terminate domains used to sell counterfeit medicines.

New TLD guidebook could be finalized in Cartagena

Kevin Murphy, September 27, 2010, Domain Policy

I’ve got the official line from ICANN — it’s possible that the final Applicant Guidebook for new top-level domain applications could be approved as early as December.
I reported late last night that, following its weekend board retreat, the final version of ICANN’s new TLD rulebook would be published before its public meeting in Cartagena, Colombia.
This morning, based on some reader comments and a closer reading of the board’s latest resolutions, I concluded that there was a pretty good chance I was wrong, so I asked ICANN for clarification.
I essentially asked whether we were looking at another six months of pondering Draft Applicant Guidebook version 5, or whether the next iteration would be the final one.
This is the official ICANN spokesperson line:

The next guidebook to be posted for public comment will be called the “next version” of the applicant guidebook – depending on public comment, the Board will decide whether to approve it as final (with changes) or request another iteration.

As stated above, the Board could consider approving the next version of the Guidebook as early as the Cartagena meeting or set a timeline for approval sometime thereafter.

So, there’s the answer: it depends.
Frankly, given the number and gravity of the unresolved issues on the table, I think Cartagena may be optimistic. But it’s not impossible.
(Cheers to @mneylon and @dot_scot for the constructive criticism.)

Do uncontroversial new TLDs exist?

Kevin Murphy, September 27, 2010, Domain Policy

ICANN’s Governmental Advisory Committee wants ICANN to drastically scale back the first round of new top-level domain applications, limiting it to “uncontroversial” strings.
In a letter last Thursday, interim GAC chair Heather Dryden wrote that ICANN should consider a “road test” or “fast track first round” made up of “relatively straightforward, non-sensitive and uncontroversial gTLD proposals”.
This doesn’t make much sense to me, for a few reasons.
First, Dryden’s letter does not attempt to define what such a TLD would look like, other than noting that they should include “community, cultural and geographical applications”.
Neither does it give ICANN any ideas about how it might separate out uncontroversial applications for special treatment before any applications have actually been received.
The idea might have worked had the Expressions Of Interest plan not been canned in Nairobi, but right now I can’t see an obvious way to do it without actually asking all applicants to file their apps before they have any idea of the rules their applications will be subject to or on what timeline.
It’s a recipe for, if not disaster, then for at least months and months of more delays as ICANN tries to design a parallel pre-approval process for uncontroversial strings.
Second, there’s no category of new TLD that is exclusively “uncontroversial” in nature.
The GAC wants “an initial fast track round for a limited number of non-controversial applications which should include a representative but diverse sample of community, cultural and geographical applications”.
This would seem to suggest that community, cultural and geographical TLDs are somehow less prone to controversy than other categories of application, which is not the case.
On the geoTLD front, you only need look at the large number of contested regional/city domains that we already know about – Berlin, Barcelona and Bayern, without leaving the B’s – to see that controversy is likely.
Even uncontested cityTLDs have potential for conflicts. Take .london, for example. Last time I checked, the one .london applicant we know of made it clear that .london would exclusively represent London in the UK.
If you’re a business in London, Ontario, or any other London, and nobody contests the .london bid, you’re forever excluded from the namespace. That, I would argue, could be controversial.
As for the cultural/ethnic TLDs, are the proposed .kurd, .eus (Basque) and .sic (Székely) TLDs really totally uncontroversial?
I genuinely don’t know the answer to that question, but I do know they are designed to represent peoples largely originating from (relatively recently at least, if not currently) contested territories.
And what of “community” TLDs? It’s almost impossible to argue that this category is by definition less controversial, given that essentially any applicant is eligible to designate itself a “community” TLD.
There’s a pretty decent chance that one or more .gay bids will be a community-backed application. And I strongly suspect that the GAC doesn’t like the prospect of that TLD one little bit.
Third, ICANN has already executed two limited new TLD rounds.
The whole point of the 2000 round of new TLDs was to create a “test-bed”. Similarly, a key reason the 2003 round was limited to “sponsored” TLDs was to increase the TLD pool in an orderly fashion.
The reason the GAC says wants a limited launch this time is to help ICANN in “collecting relevant information” relating to the “economic impacts of a large number of new gTLD strings”.
There’s an assumption here that the behavior of registrants, such as trademark holders, will be the same when a small number of TLDs are released as when a large number are released, or that one can extrapolate the latter from the former, which may not be the case.
If ICANN wants a limited launch in order to measure the economic impact, it has two previous such rounds to study already. But if it wants empirical data on a large number of TLDs being launched, there’s unfortunately only one way to get it.
Personally, I think the GAC’s talk of “economic analysis” and “uncontroversial strings” is more likely a smokescreen for its real concerns about nations unilaterally blocking strings they don’t like at their borders, potentially leading to root fragmentation.

Anti-terror rule dropped from new TLD guidebook

Kevin Murphy, September 27, 2010, Domain Policy

ICANN will cut references to terrorism from its Draft Applicant Guidebook for new top-level domains, after criticism from some Arab stakeholders.
The ICANN board of directors decided on Saturday at its retreat in Trondheim that it will revise its policy of doing background checks on new TLD applicants:

The background check should be clarified to provide detail and specificity in response to comment. The specific reference to terrorism will be removed (and the background check criteria will be revised).

The reference to “terrorism” first showed up in DAGv4, the latest draft. It caused a bit of a stir, with at least two Arab community members harshly criticizing ICANN for its inclusion.
Khaled Fattal of the Multilingual Internet Group told ICANN it would “be seen by millions of Muslims and Arabs as racist, prejudicial and profiling” while Abdulaziz Al-Zoman of SaudiNIC observed that’s it’s not globally accepted “who is a terrorist and who is a freedom fighter”.
It appears that their complaints have been heard.