Wine gTLDs get a pass as GAC fails to agree

Applicants for wine-related gTLDs will no longer be opposed by the Governmental Advisory Committee, it has emerged.
Writing to ICANN chair Steve Crocker this week, GAC chair Heather Dryden said that the GAC had failed to reach an agreement on whether to issue formal Advice against the applications.
Three .wine applicants and one .vin applicant are affected.
Some governments are concerned about strings at the second level because quite often a word many people associate primarily with a type of wine is also the protected name of the wine-producing region.
Champagne is probably the best-known example of this.
Nevertheless, the GAC couldn’t reach agreement on whether to provide formal advice to ICANN on this topic, so the applications will be free to proceed along the new gTLD program’s track.

Donuts signs three more new gTLD contracts

Donuts today signed Registry Agreements covering the new gTLDs .land, .plumbing and .contractors, according to ICANN.
The deals mean ICANN now has contracts covering 40 gTLDs, 22 of them as a result of the new gTLD program and 16 of which are to be managed by Donuts.
Like all the gTLDs Donuts applied for, they’re to be operated with an “open” registration policy.
It’s therefore ironic that the company should become the contracted registry for .plumbing and .contractors — both regulated industries where I come from — on the same day we find out that it can’t have .architect because architecture is a licensed profession.

Domain.com owner files for $400m IPO, to spend $110m buying Directi

Endurance International, owner of Domain.com and HostGator, plans to raise up to $400 million in a Nasdaq IPO, and said it will spend up to $110 million of that buying Directi, India’s largest domain registrar.
As part of the proposed acquisition, Endurance has also agreed to bankroll Directi’s new gTLD auctions to the tune of $62 million.
The acquisition is not final, and appears to depend on a number of targets related to the IPO and Directi’s revenue performance. Endurance’s S-1 filing with the US Securities and Exchange Commission reads:

In August 2013, we entered into a master share purchase agreement to acquire all of the outstanding capital stock of Directi from Directi Holdings, the seller, for an amount we estimate will be between $100 million and $110 million in cash or, at the election of the seller, a combination of cash and shares of our common stock, subject to the satisfaction or waiver of specified customary closing conditions and the achievement of specified financial targets.

The acquisition would close in the fourth quarter this year.
As well as running a top-ten registrar (and a few dozen others), Directi subsdiary Radix Registry has 29 active new gTLD applications, 26 of which are contested.
Endurance proposes to help Radix win these contention sets. On new gTLD auctions, the S-1 says:

in connection with our proposed acquisition of Directi, we entered into agreements with entities affiliated with Directi Holdings related to participation in the auction of new top level domain extensions and domain monetization activities, pursuant to which, among other things, we may be obligated to make aggregate cash payments of up to a maximum of approximately $62 million, subject to specified terms, conditions and operational contingencies.

Endurance is a complicated company. Its most familiar brands include Domain.com, iPage, FatCow, Homestead, Bluehost, HostGator, A Small Orange, iPower and Dotster.
But since December 2011 it has been controlled and majority owned by Warburg Pincus and Goldman Sachs, which paid a reported $975 million.
Its annual revenue for the last three calendar years has been $87.8 million, $190.3 million and $292.2 million. It’s currently not profitable, recording a net loss of $139.2 million in 2012.
It has seven million domains under management and had 3.4 million customers at the end of June 2013.
Judging by the S-1, the company has over a billion dollars of debt. Directi acquisition excluded, most of its IPO proceeds would go towards paying off some of that debt.

Trademark+50 coming in October

The controversial “Trademark+50” anti-cybersquatting service for new gTLDs is set to go live October 11 or thereabouts, ICANN announced last night.
Trademark+50 is the name given to a function of the Trademark Clearinghouse that enables trademark owners to obtain protection for strings that they’ve previously won at UDRP proceedings.
The service will be limited to 50 strings per trademark, with the total number of strings only limited by the total number of trademarks submitted.
ICANN said:

Rights holders may submit these domain name labels for association with existing Clearinghouse records as early as 11 October 2013. Once previously-abused labels have been verified, they will be integrated into the Trademark Claims service. ICANN expects this to occur by 18 October 2013, ahead of the earliest anticipated new gTLD Claims period.

In July at ICANN’s meeting in Durban, an IBM rep said that a Trademark+50 launch would be “difficult to reach before the middle of September”, which seems to have proven correct.
Pricing for Trademark+50, which we assume will entail a great degree of manual validation, does not appear to have been published yet.
Strings added to the IBM-run TMCH database under Trademark+50 will be eligible for Trademark Claims notifications, but not Sunrise periods, when new gTLDs launch.
Critics have repeatedly raised Trademark+50 as an example of ICANN going outside of its usual community-based policy-development processes in order to push through an unpopular mechanism.
Non-commercial users have criticized the system because it assumes that all strings won at UDRP are inherently cybersquatty, whereas the UDRP itself also requires the domain to have been used in bad faith.
Trademark owners have been able to submit their marks to the TMCH for several months, but Trademark+50 was a later addition to the new gTLD program’s rights protection mechanisms.

Angry Birds backing two Chinese-language gTLDs

The Finnish/Irish new gTLD applicant TLD Registry Ltd has signed two ICANN Registry Agreements, covering the Chinese strings .在线 (.online) and .中文网 (a phrase meaning “Chinese language website”).
The deals were signed yesterday, but the news is set to be formally announced in Beijing on Tuesday by the Finnish prime minister, Jyrki Katainen, who’s on a state visit to the country.
He’ll be joined by Peter Vesterbacka, chief marketing officer of Angry Birds maker Rovio Entertainment, which is supporting TLD Registry as the first announced member of its “founders program”.
The two new agreements mean ICANN has now contractual powers over more new gTLDs (19) than legacy ones (18).
TLD Registry CEO Arto Isokoski told DI this morning that 在线 and 中文网 are already extremely well-known and widely-used phrases on the Chinese internet.
“在线” is the direct translation of “online” and “中文网” is what Chinese web users instinctively type when they’re searching for the Chinese-language version of a foreign brand’s web site, he said.
“It surprises me as well that these were not contested,” Isokoski said. “These are the strings that Chinese users type in when they’re looking for web sites online.”
Both TLDs will be open to registrants anywhere in the world, though .中文网 seems to be particularly suited for brands from the ASCII parts of the world, looking to improve SEO in the country.
Isokoski said that the company hopes to take .在线 and .中文网 to market early next year. If the strings are delegated in early November, then general availability could start in mid-January, he said.
Depending on ICANN delays, the launch schedule may have to be moved back to February or March in order to avoid the “dead period” around Chinese New Year, which starts in late January, he said.
The most directly competitive gTLD would be .网址, an arguably superior string meaning roughly “website”, which is now out of contention and likely to sign its own contract soon.
Two other Chinese gTLDs, both owned by Donuts, have ICANN contracts already — .游戏 (games) and .企业 (business).
Isokoski said that TLD Registry hopes to have about 20 members of its founders program (included Rovio, which is Finnish but makes games wildly popular in China) and about 20 launch registrars.
Like other IDN gTLD registries, the company is hoping that its first-to-market advantage will give its marketing a lift due to the extra media interest.
TLD Registry is based in Ireland, near its back-end provider Afilias, but was founded by Finns. Afilias alum Pinky Brand is managing registrar relationships for the company.

Famous Four says that Demand Media’s .cam should be rejected

Demand Media’s application for .cam should be rejected because it lost a String Confusion Objection filed by .com registry Verisign, according to rival applicant Famous Four Media.
“The process in the applicant guidebook is now clear: AC Webconnecting and dot Agency Limited proceed to resolve the contention set, and United TLD’s application cannot proceed,” chief legal officer Peter Young told DI.
dot Agency is Famous Four’s applicant for .cam, which along with AC Webconnecting survived identical challenges filed by Verisign. United TLD is the applicant subsidiary of Demand Media.
Serious questions were raised about the SCO process after two International Centre for Dispute Resolution panelists reached opposition conclusions in the three .cam/.com cases last month.
Demand Media subsequently called for an ICANN investigation into the process, with vice president Statton Hammock writing:

String confusion objections are meant to be applicant agnostic and have nothing to do with the registration or use of the new gTLD.

However, Famous Four thinks it has found a gotcha in a letter (pdf) written by a lawyer representing Demand which opposed consolidation of the three .cam cases, which stated:

Consolidation has the potential to prejudice the Applicants if all Applicants’ arguments are evaluated collectively, without regard to each Applicant’s unique plan for the .cam gTLD and their arguments articulating why such plans would not cause confusion.

In other words, Demand argued that the proposed usage of the TLD should be taken into account before the ICDR panel ruled against it, and now it saying usage should not have been taken into account.
Famous Four’s Young said:

Whether or not one ascribes to the view that usage should not be taken into account, and we believe that it should (otherwise we would not have argued it), the fact is that United TLD were very explicit prior to the publication that usage should indeed be taken into account.

The SCO debate expanded yesterday when the GNSO Council spent some time discussing .cam and other SCO discrepancies during its regular monthly meeting.
Concerns are such that the Council intends to inform the ICANN board of directors and its New gTLD Program Committee that it is looking into the issue.
The NGPC, has “Update on String Similarity” on its agenda for a meeting on Tuesday, which will no doubt try to figure out what, if anything, needs to be done.

Teething troubles for TMCH testing

With the first new gTLD delegation likely just a matter of weeks away, registries and registrars are reporting problems getting access to the Trademark Clearinghouse for testing purposes.
ICANN launched an OT&E (operational test and evaluation environment) for companies to test their systems against the IBM-run TMCH back-end last week, but few have so far managed to get in.
Some registrars have been denied access because they have not yet signed the 2013 Registrar Accreditation Agreement.
While that’s a prerequisite for selling new gTLD domains, some say it should not also be a barrier to testing their TMCH implementation before they decide to sign on the dotted line.
At least one registrar that has actually signed the 2013 RAA also says it has been denied access.
Meanwhile, several back-end applicants and back-end registry providers have reported that they too have been told they can’t access the OT&E until they’ve signed the 2013 RAA.
Registries are of course not obliged to sign any RAA in order to act as registries.
Others say they’ve received the credentials needed to access the OT&E but that they don’t work.
ICANN has blamed a mix-up in its workflow for the registries getting blocked, something it expects to get fixed quickly. It’s also looking into the complaints from registrars.
The TMCH is the database that registries and registrars will use to validate trademarks during sunrise periods, and to check for possible cybersquatting during the first few months of launch.

Public Suffix List to get monthly new gTLD updates

New gTLDs are set to be added to the widely used Public Suffix List within a month of signing an ICANN registry agreement, according to PSL volunteer Jothan Frakes.
This is pretty good news for new gTLD registries.
The PSL, maintained by volunteers under the Mozilla banner, is used in browsers including Firefox and Chrome, and will be a vital part of making sure new gTLDs “work” out of the box.
If a TLD doesn’t have an entry on the PSL, browsers tend to handle them badly.
For example, after .sx launched last year, Google’s Chrome browser returned search results instead of the intended web site when .sx domain names were typed into the address/search bar.
It also provides a critical security function, telling browsers at which level they should allow domains to set cookies.
According to Frakes, who has been working behind the scenes with other PSL volunteers and ICANN staff to get this process working, new gTLDs will usually hit the PSL within 30 days of an ICANN contract.
Due to the mandatory pre-delegation testing period, new gTLDs should be on the PSL before or at roughly the same time as they are delegated, with plenty of time to spare before they launch.
The process of being added to the PSL should be fairly quick for TLDs that intend to run flat second-level spaces, according to Frakes, but may be more complex if they plan to do something less standard, such as selling third-level domains, for example.
Browser makers may take some time to update their own lists with the PSL updates. Google, with its own huge portfolio of applications, will presumably be incentivized to stay on the ball.

Only 29 gTLD applications still in IE as 101 pass and nine fail

ICANN has published what was scheduled to be its final week of Initial Evaluation results for new gTLD applications.
It was a bumper week for results as evaluators mopped up stragglers that had previously been asked to provide more information via Clarifying Questions. There were 101 passes and 9 failures.
There are still 29 applications without published results. An ICANN spokesperson said that the results for these will continue to be delivered on a weekly basis as usual until all are done.
One hundred and one applications passed. These ones:

.origins .free .banamex .sex .dog .prof .rockwool .weather .farmers .itv .ford .hkt .inc .phd .blog .kid .esq .memorial .ira .art .gmbh .pccw .music .citi .bms .live .game .news .kone .shop .able .llc .frontier .flir .watches .tires .love .dds .ericsson .dunlop .volvo .fujitsu .telecity .movie .fidelity .mutuelle .stockholm .xperia .search .lupin .med .jewelry .kddi .tires .monster .news .lincoln .book .tube .mint .clinique .buy .goodyear .lego .seven .fresenius .richardli .llp .csc .ses .ftr .ikano .gallup .saxo .mutualfunds .baby .progressive .firestone .corp .music .movie .srl .retirement .seat .mba .pars .islam .nowruz .boston .persiangulf .tci .design .rip .sucks .shia .ally .style .halal .hotel .lifeinsurance .shriram

The failures, which are all “Eligible for Extended Evaluation” are:

• .livestrong (Lance Armstrong Foundation) — failed on both financial and technical questions. The first I recall seeing to be pushed into EE based on its proposed Registry Services. Also failed a drug test.
• .unicorn — Scored only 5 out of the required 22 points on its technical evaluation, easily the worst score I can recall seeing. Its back end provider is Gransy sro, a Czech-based registrar.
• .home (Dothome Ltd) — this is the .home bid Defender Security bought from CGR E-Commerce. The same one that filed all the Legal Rights Objections against other .home applicants. It failed its financial evaluation, but not because it failed to file its financial statements, which is usually the case.
• .smart (Smart Communications, Inc) — a dot-brand that failed technical.
• .art (EFLUX.ART, LLC) — failed technical and financial.
• These applications didn’t provide financial statements, so failed the financial questions: .transunion (Trans Union LLC), .pnc (PNC Domains LLC), .cipriani (Cipirani Hotel), .jcp (JCP Media Inc)

Donuts signs 12 more new gTLD registry contracts

Donuts today announced that it has signed 12 more new gTLD Registry Agreements with ICANN.
The contracts, which have not yet been published, cover .bike, .camera, .clothing, .equipment, .estate, .guru, .holdings, .lighting, .singles, .ventures, .voyage and .企业, which is “.enterprise” in Chinese.
As of a week ago, the firm has also passed all of its Initial Evaluations, with no failures.
According to the DI PRO database, Donuts still has a total of 300 applications in play, of which 148 are contested.
Another 30 have objections, at least 103 have GAC Advice, and 96 are classified as “uncalculated risk”, all factors that could lead to delay and possibly rejection.
Today’s news mean ICANN has signed registry contracts with at least 16 new gTLDs.
It’s not much by the standards it had set itself — expecting to sign 20 a week by now — but it’s almost as many as it’s signed in the preceding 15 years.