Next round of gTLDs could come much sooner than expected

ICANN’s next new gTLDs application round may be closer than we thought, after a policy working group dramatically reduced the timetable for completing its work.

The Internationalized Domain Names Expedited Policy Development Process team has managed to shave a whopping 13 months off its schedule, potentially leading to a similar period being shaved off the runway to the next application window.

The IDNs EPDP had expected to deliver its final deliverables — policy recommendations on how IDNs are handled in gTLD applications — in November 2025, meaning the earliest they could be adopted by the ICANN board would be March 2026.

Because the IDNs policy is seen as a critical gating factor to the next round commencing, the date ICANN penciled in for the next application window was May 2026.

But now the IDNs EPDP group has revised its deadline down to October 2024, member Donna Austin told the GNSO Council last Thursday. This could mean the board could approve its work in early 2025.

The new target means that IDNs are no longer the biggest delaying factor on the critical path to the next window — that honor now falls on the “closed generics” problem, which a “small team” of the GNSO and Governmental Advisory Committee have been working on in private all year.

The latest thinking on closed generics is that another EPDP would be formed with an estimated run-time of 96 weeks (22 months) — a mid-2025 end date, in other words.

But there are even question marks over that optimal timeline now, following a less than supportive informal public comment period that closed last week. The closed generics small team has apparently taken a week off to ask itself some fundamental questions.

One possibility that has been suggested to speed things up is to take closed generics out of the critical path by retaining the current de facto ban for the next round.

If that were to happen, we could be looking at an application window in 2025.

But nobody ever won money betting on ICANN hitting deadlines, so take this speculation with a pinch of salt big enough to give an elephant hypertension.

Domainer objects to Epik’s acquisition over Masterbucks collapse

A Los Angeles film production company and its domainer CEO have objected to Epik’s request to transfer its ICANN accreditation from the discredited former registrar Epik Inc to mystery new registrar Epik LLC.

Todd Ryan, CEO of American Business Capital Corporation and a domain investor, has written to ICANN to say that the transfer should be blocked until “all outstanding debts” are paid.

He’s particularly concerned with customers that may have been left out of pocket by Masterbucks, the payments service that has been described as a PayPal clone or simply a jumped-up Epik store credit system.

“The financial losses incurred by customers who utilized Masterbucks, a payment method provided by Epik registrar, are a matter of significant importance,” Ryan wrote.

“It is crucial that ICANN, as the governing body responsible for overseeing the domain registration industry, takes decisive action to ensure that all debts owed to these affected customers are satisfactorily resolved prior to any transfer of registrar accreditation,” he wrote.

Masterbucks was at the center of the old Epik’s financial mismanagement woes, with domainers beginning to complain that they couldn’t withdraw their funds almost a year ago.

Ryan says he’s a member of ICANN’s Business Constituency but does not say in his letter whether he’s owed money.

It’s not clear who currently owns the Masterbucks liabilities. The service was not believed to be part of the deal that saw the Epik registrar acquired from the Inc to the LLC last month.

ICANN’s head of compliance has written that it could take months for the Epik accreditation transfer to be approved (or otherwise).

Ryan also demands that ICANN disclose the identity of Epik LLC’s owners, which is still a bit of a mystery.

DENIC kicks out NCC as ICANN’s sole escrow agent

DENIC has won the contract to be the sole supplier of registrar data escrow services for ICANN, the Org has announced.

The German registry is replacing NCC Group, which acquired Iron Mountain’s escrow business two years ago. Iron Mountain has been ICANN’s chosen escrow agent since it started requiring registrars to escrow registrant data in 2007 in the wake of the RegisterFly scandal.

Under ICANN’s Registrar Accreditation Agreement, registrars have to deposit this data either daily or weekly, depending on how many domains under management they have, to mitigate the risk of domains being lost.

Registrars can choose to use ICANN’s chosen escrow agent, in which case ICANN pays, or they can choose another from an approved list, in which case the registrar pays.

Naturally enough, the vast majority of registrars choose to go with the free option. DENIC has been on the approved list since 2017. There are also one Russian and three Chinese companies approved to provide these services.

The change of contractor means escrow will now be provided by a EU-based company for the first time. UK-based NCC’s contract was via its US subsidiary, NCC Group Software Resilience (NA) LLC. ICANN said DENIC has opened up facilities in North America.

ICANN said NCC “will no longer be accepting new registrars with immediate effect and will no longer provide [Registrar Data Escrow] services starting 1 November 2024”, so registrars have some breathing space to migrate.

The deal was worth $800,000 a year to NCC, according to ICANN’s latest tax forms. One assumes DENIC is doing it cheaper.

ICANN takes over country’s ccTLD after Hall of Famer’s death

ICANN has assumed temporary ownership of .lb, the ccTLD for Lebanon, after the death of the man who founded the registry and managed it for 30 years.

IANA, in an unprecedented move, has made itself the “caretaker” sponsor and admin contact for .lb, according to the official record, which changed on Thursday.

The Org replaces the American University in Beirut, which as the name suggests is an American-owned university in Beirut, as sponsor and Lebanese Domain Registry as the admin.

It appears that AUB has not been involved with running .lb for a few years, having terminated its relationship with LBDR in 2020, and has told IANA that it is no longer the ccTLD’s sponsor.

AUB’s disassociation with LBDR, which appears to have been quite acrimonious, forced the registry to move onto CoCCA’s managed registry platform, where it still sits today.

Nabil Bukhalid, LBDR’s founder and a member of ISOC’s Internet Hall of Fame, had been trying to secure a permanent home for .lb for years, according to a history of the domain on the registry’s web site.

But he died unexpectedly of a heart attack while on vacation in January this year, leaving Lebanon’s domain in a bit of a limbo.

Kim Davies, head of IANA, revealed in a letter posted today (pdf) that .lb has been managed by Bukhalid’s “associates” for the last six months.

He said ICANN has approved a new “caretaker” role for IANA, and that the designation “will signal that there is an extraordinary and temporary operational situation”.

“IANA will continue to work with Bukhalid’s known associates to ensure the ongoing operation of the domain, until such time as a qualified successor is identified through a normal ccTLD transfer request process, at which time the caretaker designation will be removed,” he wrote.

.lb is believed to have fewer than 5,000 domains under management.

Bukhalid’s struggle to secure a successor played out against the backdrop of a Lebanese government that has far more important things to worry about. The country has been in a deep financial crisis since 2019, a situation exacerbated by the Covid-19 pandemic, a revolution, and one of the largest accidental non-nuclear explosions in human history.

The economic crisis was such that Bukhalid was forced to incorporate LBDR in Delaware a couple years back.

“We are establishing this designation out of an operational necessity. There appear to be no specific policies that govern a situation where the existing designated ccTLD manager no longer performs its role but there is no obvious successor,” Davies wrote.

He suggested that the ccNSO may want to consider creating a policy for this kind of scenario.

Similar situations could occur in future, I reckon, if increasingly grey and wrinkly Postel-era “Just Some Guy” ccTLD sponsors don’t make arrangements for their heirs.

Davies said in his letter that the “caretaker” designation has been used once before, for Libya’s .ly in 2004. But it’s the first time IANA has been a caretaker, and the Libya experiment went spectacularly badly.

ICANN Ombudsman quits

Herb Waye has quit as ICANN’s independent Ombudsman, according to ICANN.

His last day will be September 30 and ICANN is already looking for his replacement, the Org said in a statement.

While the announcement includes a glowing quote from board chair Tripti Sinha it does not contain a quote from Waye and no reason was given for his departure.

Waye has been in the Ombudsman’s office for 16 years, the last seven as the Ombudsman itself.

The Ombudsman is a structurally independent office that deals with issues of fairness within the ICANN community. It’s one way community members can complain about each other and ICANN itself.

Most the work is handled confidentially, so it’s difficult to say exactly what it is the Ombudsman does for their money, but the last few years’ Ombudsman annual reports show the office typically receives a couple hundred complaints a year, maybe a couple dozen of which are actually within its jurisdiction.

Complaints cover issues such as abusive discourse, harassment, and contractual compliance.

Some of the most visible Ombudsman work has related to sexual harassment complaints at ICANN public meetings. Some female community members have stated that they would feel uncomfortable reporting sexual harassment to a male Ombudsman.

I’d be very surprised if the next Ombudsman is not a woman.

No $8 million discount for dot-brands, says ICANN

ICANN has rejected a request for a 80% discount on registry fees paid by dot-brand gTLD operators.

The Brand Registry Group had asked ICANN in May for a reduction in the annual fixed fee from $25,000 to $5,000, largely on the basis that they have essentially no abuse and require very little Compliance oversight.

But interim CEO Sally Costerton has now responded to “respectfully decline” the request, which would have wiped out about $8 million of ICANN’s annual budget, about 5% of its total revenue.

“The cost to support New gTLDs is not merely based on the number of domains under management or the level of abuse. Regardless of the size of the TLD, registry operators must still comply with the Registry Agreement and associated policies, and ICANN must monitor that compliance,” Costerton wrote.

Dot-brands already have lower fees because they uniformly don’t pass the 50,000 domains limit at which transactional fees kick in, she said.

There are mechanisms in the Base Registry Agreement that all amendments to be made, she said.

Epik is off the ICANN naughty step

Epik is no longer in breach of its ICANN registrar accreditation agreement, but it remains to be seen whether its anonymous new owners can take over the contract, ICANN has said.

The registrar has paid its past-due fees, explained why it delayed its customers’ renewal requests and promised to put in place measures to ensure this kind of thing doesn’t happen again, ICANN Compliance chief Jamie Hedlund blogged.

This means Epik has dodged a contract suspension and gets to continue with business as usual, for now, albeit with many distrustful customers.

Hedlund wrote that ICANN is now reviewing Epik’s request to transfer its accreditation from Epik Inc to new entity Epik LLC, whose owners have yet to reveal their identities.

ICANN has to do due diligence on the buyer before approving the transfer, but Hedlund said this case is “complex” and is expected to take “several months”.

The LLC bought the old registrar for almost $5 million last month after a tortuous few months for customers claiming to be owed hundreds of thousands of dollars.

Some have speculated that the LLC is a front for Epik founder and former CEO Rob Monster, the person arguably most responsible for Epik’s woes over the last 12 months, but court documents published as part of a customer lawsuit include emails from Monster that suggest he was not involved.

o.com auction likely a damp squib after Overstock rebrand

Verisign’s long-planned auction of the single-character domain o.com is looking even less likely, with its most motivated bidder completely rebranding its company.

Overstock.com, which had been lobbying for Verisign to release the domain since at least 2004, said this week it’s bought the intellectual property assets of bankrupt rival furniture retailer Bed Bath & Beyond for $21.5 million, and will rebrand accordingly.

That means it will drop Overstock.com the brand and overstock.com the domain, in favor of bedbathandbeyond.com in the US. The rebrand of its equivalent Canadian sites under .ca will come first.

The domain switch will presumably be less chaotic than the company’s attempt to rebrand as O.co in 2011, which caused huge confusion in .com-loving North America and was quickly reversed.

The change of course means that Overstock now has no motivation to bid on o.com, should Verisign ever actually get around to exercising its hard-won right to sell off the domain for charity.

All but a handful of single-character .com domains have been reserved for decades, but Verisign was given permission to sell o.com by ICANN in 2018 after years of pleading by Overstock founder Patrick Byrne.

Byrne quit Overstock not long after ICANN gave the nod due to his involvement with Russian spy-turned-politician Maria Butina and evidently took his obsession with o.com with him.

Disclosure: over a decade ago, I provided consulting services to a third party in support of the release of o.com.

ICANN actually CHANGES Verisign’s .net contract after public comments

ICANN has decided to make a change to the upcoming new version of Verisign’s .net registry agreement in response to public comments, but it’s not the change most commenters wanted.

In the near-unprecedented nod to the public comment process, the Org says it’s agreed with Verisign to change two instances of upper-case “S” in the term “Security and Stability” to lower case.

That’s it.

Some commenters had wrung their hands over the fact that the .net contract includes upper-case “Security and Stability” as defined terms, in contrast to the lower-case “security and stability” found in other gTLD contracts.

Based on a strict reading, this could in some circumstances give Verisign an excuse to avoid implementing ICANN Consensus Policies, commenters including the Business Constituency and Intellectual Property Constituency noted,

It appears that this was an oversight by ICANN and Verisign rather that some kind of nefarious plot. In its public comments analysis and summary (pdf), ICANN writes:

We acknowledge however that the capitalization of the “s” could in theory potentially lead to different interpretations of the applicability of certain future Consensus Policies under Section 3.1(b)(iv)(1) for the .NET RA.

Because in this instance it was not the intent of ICANN org nor Verisign to limit in this manner the applicability of Consensus Policy topics for which uniform or coordinated resolution is reasonably necessary to facilitate the interoperability, security and/or stability of the Internet or DNS, ICANN org and Verisign have mutually agreed to update Section 3.1(b)(iv)(1) of the .NET RA to the lower case “s.”

So there we have it: a rare instance of a public comment period accomplishing something and a confirmed victory for accountability and transparency!

Most of the comments had focused on Verisign’s ability to raise prices and a clause that some domainers thought would allow censorial government regimes to seize domains, but ICANN said that’s all fine.

GoDaddy takes over .health

GoDaddy Registry has added .health to its growing stable of TLDs.

According to ICANN records, the company has taken over the contract from original registry DotHealth.

GoDaddy was already the back-end registry services provider for the gTLD, and as registrar is responsible for roughly half of the roughly 35,000 domains registered there.

Judging by ICANN documentation, GoDaddy has also acquired DotHealth.