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ICANN to publish new gTLD contract changes

Kevin Murphy, September 25, 2013, Domain Registries

ICANN has decided to start publishing red-lined versions of its new gTLD Registry Agreements, so applicants can see what special terms ICANN is willing to accept.
It’s a reversal of its previous position, and follows complaints from applicants and back-end providers.
So far ICANN has signed almost 50 new gTLD contracts, all of which have been published, but it’s not easy to compare them all to the baseline Registry Agreement found in the Applicant Guidebook.
By publishing versions with the changes highlighted, applicants will be able to go into contract negotiations with a better idea of how far ICANN is willing to bend.
ICANN said today:

Upon further consideration, ICANN has concluded that publishing redlined versions of Registry Agreements would be helpful to the entire ICANN community, and would also support ICANN’s efforts to provide operational transparency.

It added that so far there have been no substantial changes in the contracts it’s signed, apart from gTLD-specific Public Interest Commitments and approved Registry Services.
It will start publishing the redlines next month.

Donuts’ trademark block list goes live, pricing revealed

Kevin Murphy, September 25, 2013, Domain Registries

Donuts’ Domain Protected Marks List, which gives trademark owners the ability to defensively block their marks across the company’s whole portfolio of gTLDs, has gone live.
The service goes above and beyond what new gTLD registries are obliged to offer by ICANN.
As a “block” service, in which names will not resolve, it’s reminiscent of the Sunrise B service offered by ICM Registry at .xxx’s launch, which was praised and cursed in equal measure.
But with DPML, trademark owners also have the ability to block “trademark+keyword” names, for example, so Pepsi could block “drinkpepsi” or “pepsisucks”.
It’s not a wildcard, however. Companies would have to pay for each trademark+keyword string they wanted blocking.
DPML covers all of the gTLDs that Donuts plans to launch, which could be as many as 300. It currently has 28 registry agreements with ICANN and 272 applications remaining in various stages of evaluation.
Trademark owners will only be able to sign up to DPML if their marks are registered with the Trademark Clearinghouse under the “use” standard required to participate in Sunrise periods.
Donuts is also excluding an unspecified number of strings it regards as “premium”, so the owners of marks matching those strings will be out of luck, it seems.
Blocks will be available for a minimum of five years an maximum of 10 years. After expiration, they can be renewed with minimum terms of one year.
The company has not disclose its wholesale pricing, but registrars we’ve found listing the service on their web sites so far (101domain and EnCirca) price it between $2,895 and $2,995 for a five-year registration.
It looks pricey, but it’s likely to be extraordinarily good value compared to the alternative of Sunrise periods.
If Donuts winds up with 200 gTLDs in its portfolio, a $3,000 price tag ($600 per year) works out to a defensive registration cost of $3 per domain per gTLD per year.
If it winds up with all 300, the price would be $2.
That’s in line (if we’re assuming non-budget pricing comparisons and registrars’ DPML markup), with Donuts co-founder Richard Tindal’s statement earlier this year: that DPML would be 5% to 10% the cost of a regular registration.
Tindal also spoke then about a way for rival trademark owners to “unblock” matching names, so Apple the record company could unblock a DPML on apple.music obtained by Apple the computer company, for example.
Donuts is encouraging trademark owners to participate before its first gTLDs goes live, which it expects to happen later this year.

CentralNic reports profitable first half

Kevin Murphy, September 25, 2013, Domain Registries

CentralNic today issued its first financial statements since floating on London’s Alternative Investment Market earlier this month.
The company is profitable, reporting profit before tax for the first half of 2013 that almost doubled to $636,000 on revenue that was up 16% at £1,735 million ($2.7 million).
Revenue was down substantially and profit more or less flat sequentially, however. In the second half of 2012, the company took profits of £593,000 on revenue of £2.9 million ($4.6 million).
Seasonality? One-time fees from its new gTLD applicant clients? CentralNic didn’t say.
The H12013 results do not include any revenue from its deal with Go Daddy, which started selling .la domains in July, but it did include revenue from partnerships with two Chinese registrars.
Chairman John Swingewood said in a statement to the market:

The Company is undergoing sustained growth resulting from increased demand for our domain names, establishing new retail channels and securing new inventory. What is more impressive is that these results are yet to include revenues from sales of our pipeline of new Top-Level Domains, which include .college, .bar, .wiki and .xyz, for which the first launch activities are due to start at the end of the year.

The company, which is signed up to provide back-end registry services for 14 uncontested and 39 contested new gTLDs, raised £5 million in its IPO on September 3.

Nine more new gTLD contracts signed

Kevin Murphy, September 24, 2013, Domain Registries

ICANN signed nine more new gTLD Registry Agreements yesterday.
The contracts cover .kiwi, .futbol, .kitchen, .directory, .diamonds, .tips, .today, .enterprises, and .photography.
All but .kiwi, which will be run by Dot Kiwi Ltd, were Donuts’ applications.
ICANN now has Registry Agreements with registries to manage 45 new gTLDs.

One IE pass, one fail this week

Kevin Murphy, September 20, 2013, Domain Registries

ICANN is down to 18 new gTLD applications in Initial Evaluation now, after one pass and one failure this week.
The pass is the dot-brand .lplfinancial, applied for by LPL Financial, a US-based broker. The company already owns the arguably better domain lpl.com.
The failure, which is eligible for Extended Evaluation, is Top Level Domain Holdings’ geographic bid for .roma, a city TLD for Rome, Italy.
The application failed on geographic grounds, meaning TLDH seems to have failed to provide sufficient evidence of government support or non-objection.
It’s TLDH’s final IE result and the only one of its 70 applications to fail to achieve a passing score.

New gTLD plans November 30 sunrise

Kevin Murphy, September 20, 2013, Domain Registries

I-Registry, which signed an ICANN Registry Agreement for the new gTLD .onl this week, plans to launch its Sunrise period on November 30, according to the company.
It’s the first date for a new gTLD Sunrise period I’ve come across to date, though it is of course an informal target rather than a firm commitment.
ICANN has signed contracts covering a few dozen gTLDs but as yet none have been delegated. As anyone who has been following dotShabaka’s diary on DI will know, there’s still a lot of uncertainty
.onl, which is short for “online”, is expected to be an open gTLD with no registration restrictions.
I-Registry plans to donate a portion of its profits to charity.

Google signs first new gTLD contract

Kevin Murphy, September 18, 2013, Domain Registries

Google has signed its first Registry Agreement with ICANN, covering the new gTLD .みんな.
The string means “everyone” in Japanese. It had priority number 34.
Google proposes to use it as an open TLD, available for anyone to register names in.
Signed by Google subsidiary Charleston Road Registry, it’s the 34th new gTLD contract ICANN has executed.
Google has 96 new gTLD applications remaining. One of them, for .search, is still Initial Evaluation.

ICANN looking into string confusion confusion

Kevin Murphy, September 18, 2013, Domain Policy

ICANN is looking at “consistency issues” in new gTLD String Confusion Objections, program manager Christine Willett said in an ICANN interview published last night.
The nature of the probe is not clear, but ICANN does appear to be working with the dispute resolution provider, the International Centre For Dispute Resolution, on the issue.
In the interview, Willett said:

Staff is working diligently with dispute resolution service providers to ensure that all procedures have been followed and to look at the expert determinations — we’re looking at these consistency issues.

The SCO has come in for tonnes of criticism due to the conflicting and downright ludicrous decisions made by panelists.
I would hope that ICANN is looking beyond just whether “all procedures have been followed”, given that the root cause of the consistency problems appears to be the lack of guidance for panelists in the policy itself.
Also in the interview, Willett said that she expects the first new gTLDs to be “in production” before the end of the year, and guessed that the second round of applications “is a couple of years down the road”.
Watch it here:

.CLUB offers solution to name collision risks

Kevin Murphy, September 16, 2013, Domain Tech

.CLUB Domains has come up with a simple workaround for its applied-for .club gTLD being categorized as risky by ICANN.
The company wants to reserve the top 50 .club domains that currently see DNS root traffic, so that if and when .club goes live the impact on organizations that use .club internally will be greatly reduced.
It’s not a wholly original idea, but .CLUB seems to be unique at the moment in that it actually knows what those 50 strings are, having commissioned an Interisle Consulting report of its proposed gTLD.
You’ll recall that Interisle is the company that ICANN commissioned to quantify the name collisions problem in the first place.
Its report is what ICANN used to categorize all applied-for gTLD strings into low, high and “uncalculated” risks, putting .club into the uncalculated category, delaying it by months.
(Interisle was at pains to point out in its report for .CLUB that it is not making any recommendations, interpreting the data, or advocating any solutions. Still, nice work if you can get it.)
By reserving the top 50 clashes — presumably in such a way that they will continue to return error responses after .club is delegated — .CLUB says .club would slip into ICANN’s definition of a low-risk string.
In a letter to ICANN (pdf) sent today, .CLUB chief technology officer Dirk Bhagat wrote:

blocking the 50 SLD strings from registration would prevent 52,647 out of the 89,533 queries from a potential collision (58.88%). After blocking the top 50 strings as SLD strings, only 36,886 (41.12%) queries remain, which is 12,114 fewer invalid queries at the root than .engineering, which ICANN classified as a low risk gTLD.

He adds that a further chunk of remaining SLDs are random strings that appear to have been created by Google’s Chrome browser and, many say, pose no risk of name collisions, reducing the risk further.
It’s hard to argue with the logic there, other than to say that ICANN’s categorization system itself has already come in for heavy criticism for drawing unjustified, arbitrary lines.
The list of domains .CLUB proposes to block is pretty interesting, including some strings that appear to be trademarks, the names of likely .club registrants, or potentially premium names.

Europe continues to object to .wine gTLD

Kevin Murphy, September 16, 2013, Domain Policy

The European Union is continuing to fight the proposed .wine and .vin gTLDs, even after ICANN’s Governmental Advisory Committee formally withdrew its advice on the applications.
Neelie Kroes, vice president of the European Commission, wrote to ICANN on Thursday to say that its “firm position” is:

under no circumstance can we agree having .wine and .vin and on the internet, without sufficient safeguards which efficiently protect the rights and interest of both GI [Geographic Indicator] right holders and consumers and wine and wine products

The EC believes that .wine and .vin should have special second-level protections for wine GIs — geographic indicators such as Champagne, named after the region in which it is produced.
It’s a view that has been put forward by many associations of wine producers in the EU and US for over a year. ICANN is also in receipt of letters disagreeing with the GAC from other wine producers.
The law internationally, and even in the EU, appears to be patchy on whether and how GIs are protected. They don’t generally enjoy the same uniformity of protection as trademarks.
The GAC considered the two strings in April at the Beijing meeting but failed to come to a consensus.
It wound up asking ICANN for more time and, after failing to reach agreement again in Durban this July, finally concluded last week that it was unable to find a consensus on advice.
That potentially laid the path clear for the four applications for the two strings to continue to contention resolution, contracting and eventual delegation.
However, the GAC’s all-clear arrived too late for the ICANN New gTLD Program Committee to formally consider it at its meeting last week.
According to the Kroes letter, the European Commission’s view is:

there has not been any consensus decision overruling the advice given in Beijing. We are therefore of the firm opinion that the advice provided at the GAC April meeting stands as long as there is no new consensus on the matter.

The Beijing advice, which was explicitly intended to give the GAC more time to deliberate, said that ICANN should not proceed beyond Initial Evaluation with .wine or .vin.
Kroes’ logic may or may not be consistent with the letter of the Beijing communique, but certainly not its spirit. That’s becoming an increasingly common problem with GAC advice.
It seems unlikely, however, that ICANN would put the views of one single government ahead of what the GAC as a whole has submitted as formal advice.
Her letter does not seem to have been published by ICANN yet, but you can read it in PDF format here.