.baby and .mls fetch over $3 million each

ICANN and Power Auctions have completed December’s mini-batch of “last resort” new gTLD auctions, adding a total of $6.4 million to its mysterious auction cash pile.
Johnson & Johnson won .baby, fighting off five portfolio applicants and paying a winning bid of $3,088,888.
Meanwhile, the Canadian Real Estate Association beat Afilias to .mls, paying $3,359,000.
I called it for CREA earlier this week, noting that the organization wanted .mls enough that it filed two applications, a failed Community Priority Evaluation, and an unsuccessful Legal Rights Objection against Afilias.
ICANN has now raised over $34 million selling off 10 strings at last resort auctions, with prices ranging from $600,000 (.信息) to $6.7 million (.tech).
The money has been set aside for purposes currently undecided. At least one applicant wants ICANN to redistribute the cash to losing bidders, which I don’t think is particularly likely.

Hotly contested gTLDs up for auction tomorrow

ICANN’s fifth set of last-resort new gTLD auctions is set for tomorrow and it’s another small batch.
Just two contention sets — .baby and .mls — are set to be resolved, with ICANN stashing the winning bids into its special fund.
.baby is hotly contested with no fewer than six applicants — five portfolio applicants and one big brand.
Will Johnson & Johnson get what was once a single-registrant “closed generic”, or will Donuts, Google, Radix, Famous Four or Minds & Machines prevail?
Meanwhile, .mls (for “multiple listing service”, a type of real estate listings aggregation service popular in North America) is a two-horse race between Afilias and the Canadian Real Estate Association.
I’m tempted to call this one for CREA. The organization is so desperate for the .mls gTLD that it filed two applications, one “community” and one vanilla.
The community application was withdrawn earlier this year when CREA scored 11 out of 16 points on its Community Priority Evaluation, failing to pass the 14-point threshold.
The organization even filed a Legal Rights Objection against Afilias in attempt to kill off the competition, which also failed.
Having fought off these challenges, Afilias is either going to get the gTLD or walk away empty-handed. The last resort auction does not compensate unsuccessful bidders for their investments.

Community gTLD applicants flunk on “nexus”

The first four Community Priority Evaluation results are in, and all four applicants flunked by failing to prove a “nexus” between the new gTLD string and the community they purport to represent.
No applicant score more than 11 points of the 14 necessary to pass. A total of 16 points are available.
Winning a CPE automatically wins a contention set — all the other applicants for the same new gTLD must withdraw — so it’s a deliberately difficult test.
The scoring mechanism has been debated for years. Scoring 14 points unless the gTLD string exactly matches the name of your organization has always struck me as an almost impossible task.
The first four results appear to substantiate this view. Nobody scored more than 0 on the “nexus” requirement, for which 4 points are available.
The four CPE applicants were: Starting Dot (.immo), Taxi Pay (.taxi), Tennis Australia (.tennis) and the Canadian Real Estate Association (.mls). All four were told:

The string does not identify or match the name of the community, nor is it a well-known short-form or abbreviation of the community.

In some cases, the evaluation panel used evidence from the applicant’s own applicant to show that the string “over-reaches” the community the applicant purported to represent.

The application for .Taxi defines a core community of taxi companies and drivers, as well as peripheral industries and entities.
…
While the string identifies the name of the core community members (i.e. taxis), it does not match or identify the peripheral industries and entities that are included in the definition of the community

In other cases, the panel just used basic common sense. For example, Tennis Australia was told:

Tennis refers to the sport and the global community of people/groups associated with it, and therefore does not refer specifically to the Tennis Australia community.

Starting Dot (.immo) and Taxi Pay (.taxi) both also scored 0 on the “Community Establishment” criteria where, again, 4 points were available.
In that part of the CPE, the applicants have to show that their community is clearly delineated, organized, and long-standing.
In both cases, the panel found that the communities were too eclectic, too disorganized and too young — neither existed before the new gTLD program kicked off in September 2007.
It’s not looking promising for any of the 14 CPE applicants listed by ICANN here. I’ll give $50 to a charity of the applicant’s choosing if any of them scores more than 14 points.

LRO roundup: six more new gTLD objections rejected

While we were busy focusing on ICANN 47 last week, six new gTLD Legal Rights Objections were decided by the World Intellectual Property Organization.
These are the objections where the objector has trademark rights that it believes would be infringed by the delegation of a matching or confusingly similar gTLD.
All six cases, like the first six, were rejected for varying reasons. There has yet to be a decision in favor of an objector.
Here’s a rundown of the highlights of the decisions:
.home (Defender Security v Lifestyle Domain Holdings)
.home (Defender Security v Merchant Law Group)
.home (Defender Security v Uniregistry)
These cases are three of the nine filed by .home applicant Defender Security against its rival applicants. Defender had already lost one such objection, and these three were no different.
Defender acquired its trademarks and associated domains and companies from Constantine Roussos’ CGR E-Commerce shortly before the new gTLD application window opened.
The trademarks themselves, attached to hastily created Go Daddy reseller web sites, were obtained not much earlier.
Uniregistry, paraphrased by the WIPO panelist in its case, put the situation pretty close to the truth:

Objector is one of several parties who were solicited some months ago to purchase any of a number of cookie-cutter European trademark documents lacking any substantial basis in actual goodwill or commerce, which were filed solely to game this process, and do not reflect a bona fide acquisition of substantial rights.

The WIPO panelists did not disagree, with two of them finding that not only were the acquisition of trademark rights not bona fide, but also that there was a question as to whether Defender even owned the trademark.
One panelist wrote of “the misleading and sometimes deceptive presentation of the evidence in the Objection, and more generally the abusive nature of the Objection” and another said:

The [LRO] Procedure is not intended to provide a facility whereby existing or prospective applicants for a new gTLD may attempt to gain an advantage over other applicants for the same gTLD by way of the deliberate acquisition of trademark rights for no purpose other than to bring a Legal Rights Objection. It has not escaped the Panel’s notice that the evidence before it indicates that the present Objection might have been motivated by just such an attempt

All three cases were rejected largely on this basis.
The panelist in the Lifestyle Domain Holdings case decided that acquisition of the trademarks had in fact been bona fide, but rejected the objection anyway on the overall LRO test of whether the proposed gTLD would take “unfair advantage” of Defender’s trademark rights, stating:

If anyone has taken “unfair advantage,” it has been the Objector through its meritless Objection. The LRO process is not meant to be a game or crap shoot; rather, it should be invoked only when the applicant’s proposed string would “infringe” trademark rights. It is an abuse of the process to invoke an LRO against an applicant whose proposed use is clearly a fair use of a string for its descriptive meaning and not a use designed to “infringe” (that is, cause confusion as to source, authorization or affiliation). What is “unfair” here is that the Objector filed an Objection that is not only completely devoid of merit, causing the Respondent to waste time and effort defending its entirely appropriate application, but also full of misleading, deceptive, and demonstrably untrue statements and omissions

With the Roussos/Defender gaming strategy thus comprehensively trashed, I can only hope for Defender’s sake that there’s opportunity left for it to withdraw its remaining objections and ask for a refund.
.mail (United States Postal Service v Amazon)
Amazon is one of the many applicants for .mail, while USPS is the United States’ longstanding government-backed postal service and not an applicant.
USPS showed that it owned a wide array of trademarks that include the word “mail”, but not any for the word alone, and argued that internet users expect “mail” to mean the US mail.
Amazon said that the word is generic and that USPS is not the only organization to incorporate it in its trademarks.
Amazon said (ironically, given its intention to operate .mail as a closed generic) that USPS “improperly seeks to take the dictionary word ‘mail’ out of the English language for its exclusive use”.
The decision to reject the complaint hinged on whether USPS even has rights in .mail.
The WIPO panelist decided: “The fact that a nation’s postal system is vested by statute or otherwise associated with a single entity does not convert the generic term into a trademark.”
USPS has filed six more LROs against the other six .mail applicants, two of which have been terminated due to application withdrawals. We can only assume that the remaining four are also likely to fail.
.pin (Pinterest v Amazon)
Amazon is the only applicant for .pin. Again, it’s a closed generic for which the company has not explained its plans.
The objector, Pinterest, is a wildly popular photo-sharing service provider start-up, funded to the sum of $100 million by Amazon’s Japanese retail rival Rakuten.
It owns a US trademark for “Pinterest” and has applied for many more for “Pin” and “Pin It”.
The panelist, in ruling against Pinterest, decided that Pinterest, despite its popularity, failed to show that the dictionary word “pin” had acquired a secondary meaning beyond its usual descriptive sense.
.mls (Canadian Real Estate Association v. Afilias)
MLS, for readers based outside North America, means “multiple listing services”. It’s used by estate agents when aggregating lists of properties for sale.
The Canadian Real Estate Association — which has applied for .mls TWICE, one as a community once as a regular applicant — has owned a Canadian “certification mark” on the term “MLS” since 1960.
A substantial portion of the decision is devoted to examining whether this counts as a trademark for the purposes of an LRO, with the panelist deciding that “ownership of a certification trademark must confer the status of ‘rightsholder’.”
The case was therefore decided on the eight criteria specified for the LRO in the ICANN Applicant Guidebook. The panelist concluded:

The Panel cannot see the justification for refusing to allow the Applicant to operate in every country because the Objector has a certification mark for a generic term in Canada. Had the Objector’s certification been other than a generic term, its case might have been stronger but MLS it is a generic term used in English-speaking jurisdictions.

The decision cited the .rightathome case, in which the decision hinged on whether the new gTLD applicant had any nefarious intent in applying for the string in question.
A body of precedent seems to be emerging holding that a new gTLD application must be somewhat akin to a cybersquatting attempt in order for an objector to win.
While this may be fair, I think a likely impact is an increase in the number of dot-brand applications in future rounds, particularly in cases where the brand matches a dictionary word or collides with another trademark.
We’ve yet to see what a successful LRO looks like, but the standard appears to be high indeed.

CentralNic working with .mls new gTLD bidder

MLS Domains has contracted with CentralNic to provide the back-end registry for its .mls new top-level domain application, which it expects to be contested.
MLS in this context stands for Multiple Listing Service, a form of real estate listing aggregation service common in the US.
MLS Domains is already selling .mls preregistrations, at $800 a pop, to qualifying MLS companies, which will partially fund its application.
Company president Bob Bemis said in a press release that CentralNic was selected due to its experience with “novel TLDs”:

we expect no more than two or three thousand second-level domains ever to be registered on .MLS, so we need a registry partner who can provide a high level of service for a relatively small market of customers.

CentralNic sells sub-domains in alternative suffixes such as uk.com, gb.com and us.org. It manages these domains as if they were regular gTLDs, offering a Whois service, UDRP, etc.
The registry will also provide an integrated, affiliated registrar for the .mls project, MLS Domains said.
That’s if the company’s application is successful, of course.
.mls is expected to be contested by the Chinese owner of mls.com – Nanning Billin Network Ltd has applied for a US trademark on the gTLD.

DotFree starts taking .free domain preregistrations

The DotFree Group, which plans to apply to ICANN to run .free as a top-level domain, has become one of the first would-be registries to open its doors for preregistrations.
From noon UTC today, the Czech company has made a tool available on its web site enabling users to reserve their desired strings by handing over their contact information.
Of course, there’s no guarantee any preregistration will actually turn into a .free domain – ICANN may turn down DotFree’s application or award the string to another bidder.
While the plan is to offer some .free domains free of charge, DotFree intends to hold tens (or hundreds) of thousands of “premium” strings for auction or paid-for registrations.
In other words, if you try to register any really juicy strings today, you’re out of luck.
DotFree is one of only a few unapproved TLD registries to accept preregistrations.
ICM Registry started taking .xxx preregs a few years ago, but only after it had already received ICANN’s approval (which was, of course, later revoked).
Another wannabe TLD operator, the MLS Domains Association, is charging “multiple listing service” real estate brokers many hundreds of dollars for the opportunity to own their own .mls domain name.
UPDATE: Messing around with the preregistration tool, I’ve noticed that it appears to ban any string that ends with the number 4. Presumably these will be “premium”, due to the “for” pun.