L’Oreal’s dot-brand bites the dust

Beauty products maker L’Oreal has withdrawn its new gTLD application for .loreal.
I did not see this one coming.
L’Oreal is among the most prolific applicants for new gTLDs from the offline world, applying for 14 strings in total.
One of its marketing executives even spoke at the Digital Marketing & gTLD Strategy Congress in New York this March.
Its primary dot-brand is its first third application to be dropped.
The company has also applied for dot-brands including .maybelline, .garnier and .lancome, and generics such as .salon, .makeup, .skin and .hair, all of which still appear to be active bids.
Is this indicative of a changing gTLD strategy — perhaps the company has decided to focus on its product brands rather than its company name — or is .loreal merely the first latest of many withdrawals?

GNSO wins minor victory in Trademark+50 dispute

The ICANN board has rescheduled an important decision for trademark owners, apparently at the behest of members of the Generic Names Supporting Organization Council.
The board’s New gTLD Program Committee was due to vote June 11 on whether to approve the rejection of a Reconsideration Request filed by the Non-Commercial Stakeholders Group.
But the item has been removed from the agenda and will now instead be discussed at a new June 18 meeting that appears to have been specially scheduled for the purpose.
The rescheduling follows an appeal by GNSO Councillor Jeff Neuman directly to the committee and other senior ICANNers.
Neuman and others were concerned that a June 11 decision would preempt a discussion of the issue slated for the Council’s June 13 meeting, which would have been very bad for board-GNSO relations.
For the full background, read this post.
Essentially, Neuman and other councilors are worried that ICANN seems to be riding roughshod over the GNSO in an attempt to make a proposal known as “Trademark+50” a part of the new gTLD program.
Trademark+50 is a mechanism that will greatly expand the number of strings trademark owners can submit to the Trademark Clearinghouse and get limited protection for.
The NCSG’s Reconsideration Request had asked ICANN to reconsider its classification of the proposal as an “implementation” change that didn’t require GNSO “policy” review.
But the ICANN board’s Board Governance Committee, which adjudicates such matters, last month rejected the request in what I would describe as a sloppily argued and disconcertingly adversarial decision.
It’s now up to the New gTLD Program Committee, acting for the full board, to rubber-stamp the rejection, clearing the path for Trademark+50 to become law for new gTLD registries.
Rescheduling the decision won’t change the outcome, in my view. Trademark+50 is very probably a done deal.
But voting before the GNSO Council even had a chance to put its concerns to the board would have given fuel to the argument that ICANN ignores the GNSO when it is politically expedient to do so.
ICANN may have dodged a bullet for now, but the dispute continues.

Donuts withdraws its .vote bid, raising questions about new gTLD auctions

One down, only 306 to go! Donuts has withdrawn its application for the .vote new gTLD, leaving an Afilias joint venture as the sole remaining applicant, it emerged today.
It’s reasonable to assume that this is the first result of the private string auctions, designed by Cramton Associates, that are being run by Innovative Auctions this week.
Donuts had submitted .vote to this auction and has previously said that auctions were its preferred method of resolving contention sets.
Either way, the winner of the contention set is Monolith Registry, a joint venture of .info registry Afilias and two individual investors based in Utah.
Monolith is also the only applicant for the Spanish translation, .voto.
It’s the first example of a contention set between competing business models being resolved.
The result tells us a lot about how money talks in the new gTLD program and how it does not evaluate applications based on criteria such as inclusiveness or innovation.
Donuts had proposed a .vote with an open registration policy and no special purpose. People would have been able to register domains there for essentially any reason.
Afilias, on the other hand, intends to tightly restrict its .vote to “official and verified governments and office seekers” in only the United States.
Remarkably, it has the same US-only policy for the Spanish-language .voto, though both applications suggest that eligibility will be expanded to other countries in future.
Cybersquatting is not infrequent in electioneering, so .vote could give voters a way to trust that the web site they visit really does contain the opinions of the candidate.
Pricing is expected to be set at $60 “for the first year” ($100 for .voto), and Afilias reckons there are upwards of one million elected officials and candidates that would qualify for the names in the US alone.
It’s a potentially lucrative business, in other words.
But did the program produce an ideal result here?
Is it better that .vote carries a high price and will be restricted to American politicians? Is it right that other, non-governmental types of voting will be excluded from the TLD?
Or does the result show that the program can produce innovative uses of TLDs? With a couple of restricted namespaces, where voters and politicians can trust the authenticity of the contents (insert politicians-are-liars joke here) is Afilias adding value to the internet?
These types of questions are going to be asked over and over again as more contention set results emerge.

Today’s new gTLD withdrawals: .play and .design

Two new gTLD applications have been withdrawn today: Directi’s .play and Starting Dot’s .design.
They’re the second application to be withdrawn by Directi after .movie, which it pulled last month for undisclosed reasons, and the first of Starting Dot’s five bids to die.
Starting Dot said that it has bowed out of the .design fight because there were “simply too many” other applicants in the contention set: eight including itself.
“It is now setting its focus and energy supporting and helping to grow its four other domains, and especially the two which are single applicant, .ARCHI and .BIO,” the company said.
I don’t believe either string was the subject of the private auctions that are happening this week. At least, they weren’t on the lists published by Demand Media or Donuts.
Directi’s .play bid, the first of the four-way contention set to be withdrawn, faces competition from Amazon and Google — both with “closed generic” models — as well as Famous Four Media.
The gTLD deadpool now comprises 71 withdrawals.

Uncontested .catalonia drops out of gTLD race

The regional Government of Catalonia has withdrawn its application for .catalonia.
This is a bit of a weird one.
The application was designated officially “geographic”, but also presented as a single-registrant “dot-brand”, exclusively for the government’s use in promoting tourism.
It wasn’t contested, had no objections and was not covered by Governmental Advisory Committee advice.
Residents of Catalonia, a region of Spain, are of course already served by the .cat TLD, which served as the model for a multitude of regional and cultural gTLD applications.

TLDH bags $10m in share sale

Top Level Domain Holdings has raised roughly $10 million by selling shares to institutional investors and directors.
The company, listed on the Alternative Investment Market in London, said today it has placed 110,375,276 new ordinary shares at £0.06 apiece.
The money will be used to help the company win some new gTLD contention set auctions and to promote the uncontested geo .london, which TLDH has been hired to manage.
The company is involved in 88 new gTLDs, some as applicant and some as back-end registry provider via its Minds + Machines subsidiary.
TLDH said it expects to start launching TLDs in the fourth quarter.

Verisign says people might die if new gTLDs are delegated

If there was any doubt in your mind that Verisign is trying to delay the launch of new gTLDs, its latest letter to ICANN and the Governmental Advisory Committee advice should settle it.
The company has ramped up its anti-expansion rhetoric, calling on the GAC to support its view that launching new gTLDs now will put the security and stability of the internet at risk.
People might die if some strings are delegated, Verisign says.
Among other things, Verisign is now asking for:

• Each new gTLD to be individually vetted for its possible security impact, with particular reference to TLDs that clash with widely-used internal network domains (eg, .corp).
• A procedure put in place to throttle the addition of new gTLDs, should a security problem arise.
• A trial period for each string ICANN adds to the root, so that new gTLDs can be tested for security impact before launching properly.
• A new process for removing delegated gTLDs from the root if they cause problems.

In short, the company is asking for much more than it has to date — and much more that is likely to frenzy its rivals — in its ongoing security-based campaign against new gTLDs.
The demands came in Verisign’s response to the GAC’s Beijing communique, which detailed government concerns about hundreds of applied-for gTLDs and provided frustratingly vague remediation advice.
Verisign has provided one of the most detailed responses to the GAC advice of any ICANN has received to date, discussing how each item could be resolved and/or clarified.
In general, it seems to support the view that the advice should be implemented, but that work is needed to figure out the details.
In many cases, it’s proposing ICANN community working groups. In others, it says each affected registry should negotiate individual contract terms with ICANN.
But much of the 12-page letter talks about the security problems that Verisign suddenly found itself massively concerned about in March, a week after ICANN started publishing Initial Evaluation results.
The letter reiterates the potential problem that when a gTLD is delegated that is already widely used on internal networks, security problems such as spoofing could arise.
Verisign says there needs to be an “in-depth study” at the DNS root to figure out which strings are risky, even if the volume of traffic they receive today is quite low.
It also says each string should be phased in with an “ephemeral root delegation” — basically a test-bed period for each new gTLD — and that already-delegated strings should be removed if they cause problems:

A policy framework is needed in order to codify a method for braking or throttling new delegations (if and when these issues occur) either in the DNS or in dependent systems that provides some considerations as to when removing an impacting string from the root will occur.

While it’s well-known that strings such as .home and .corp may cause issues due to internal name clashes and their already high volume of root traffic, Verisign seems to want every string to be treated with the same degree of caution.
Lives may be on the line, Verisign said:

The problem is not just with obvious strings like .corp, but strings that have even small query volumes at the root may be problematic, such as those discussed in SAC045. These “outlier” strings with very low query rates may actually pose the most risks because they could support critical devices including emergency communication systems or other such life-supporting networked devices.
…
We believe the GAC, and its member governments, would undoubtedly share our fundamental concern.

The impact of pretty much every recommendation made in the letter would be to delay or prevent the delegation of new gTLDs.
A not unreasonable interpretation of this is that Verisign is merely trying to protect its $800 million .com business by keeping competitors out of the market for as long as possible.
Remember, Verisign adds roughly 2.5 million new .com domains every month, at $7.85 a pop.
New gTLDs may well put a big dent in that growth, and Verisign doesn’t have anything to replace it yet. It can’t raise prices any more, and the patent licensing program it has discussed has yet to bear fruit.
But because the company also operates the primary DNS root server, it has a plausible smokescreen for shutting down competition under the guise of security and stability.
If that is what is happening, one could easily make the argument that it is abusing its position.
If, on the other hand, Verisign’s concerns are legitimate, ICANN would be foolhardy to ignore its advice.
ICANN CEO Fadi Chehade has made it clear publicly, several times, that new gTLDs will not be delegated if there’s a good reason to believe they will destabilize the internet.
The chair of the SSAC has stated that the internal name problem is largely dealt with, at least as far as SSL certificates go.
The question now for ICANN — the organization and the community — is whether Verisign is talking nonsense or not.

ICANN reveals 81 passes and one failure in latest new gTLD results batch

The weekly batch of new gTLD Initial Evaluation results has just been published, revealing 81 passes and one failure — the first failure that isn’t a dot-brand.
DOTPAY SA, a Swiss company, only scored 7 out of the necessary 8 points on its financial evaluation and is therefore now categorized as “Eligible for Extended Evaluation”.
That might be bad news for the other .pay applicant, Amazon, which will now have to wait some months for extended evaluation to take place before the contention set can be resolved.
DOTPAY’s .pay bid is the fourth application to fail Initial Evaluation.
The 81 passing applications this week are (links are to DI PRO):

.salon .music .loft .creditunion .careers .polo .vip .homedepot .mrporter .sarl .observer .dance .forsale .blue .game .market .fashion .tour .iwc .george .pink .fox .spiegel .reise kinder .hoteis .nike .arab .dev .diamonds .nico .cloud .law .tickets .photography .pay .channel .java .academy .nexus zippo .plus .enterprises .goog .apartments .supplies .gmbh .krd .fan .company .wow .spot .travelers .love .joburg .exchange .basketball .directory .art .today .money .kitchen .read .jot .vodka .icu .doha .hospital .chat .theguardian .jetzt .capital .natura .camp .protection .wow .gcc .pizza .supply .amex .wed .ott

There are now 514 passing applications. We’re up to 600 in the priority number queue.

ICANN won’t say how Demand Media passed its new gTLD background check

After badgering ICANN for a few weeks, I’ve finally got a firm “no comment” on the question of how new gTLD applicant Demand Media managed to pass its background checks.
The question of whether it’s possible for serial cybersquatters to bypass ICANN screening and be awarded new gTLDs just by setting up shell companies is still open, it seems.
As DI and other blogs have been reporting for the past few years, there was a question mark over Demand Media’s eligibility for the new gTLD program due to its history of cybersquatting.
Under ICANN rules, any company that lost three or more UDRP decisions with at least one loss in the last three years would not pass its background screening. The Applicant Guidebook states:

In the absence of exceptional circumstances, applications from any entity with or including any individual with convictions or decisions of the types listed in (a) – (m) below will be automatically disqualified from the program.
…
m. has been involved in a pattern of adverse, final decisions indicating that the applicant or individual named in the application was engaged in cybersquatting as defined in the Uniform Domain Name Dispute Resolution Policy (UDRP), the Anti-Cybersquatting Consumer Protection Act (ACPA), or other equivalent legislation, or was engaged in reverse domain name hijacking under the UDRP or bad faith or reckless disregard under the ACPA or other equivalent legislation. Three or more such decisions with one occurring in the last four years will generally be considered to constitute a pattern.

Demand Media subsidiary Demand Domains has lost over 30 UDRP cases, most recently in 2011, but its United TLD Holdco subsidiary has sailed through its Initial Evaluations.
Technically, shouldn’t it have failed screening and therefore IE?
Domain Name Wire speculated in November 2010 that ICANN had deliberately introduced loopholes in order to let Demand — and, at the time, Go Daddy — into the new gTLD program.
At that time, ICANN had just removed references to “any person or entity owning (or beneficially owning) fifteen percent or more of the applicant” in the background screening section of the Guidebook.
That might have introduced a loophole allowing subsidiaries of cybersquatters to apply.
But Demand Media seemed to think it was still at risk, asking ICANN in December 2010 to change the background check rules.
ICANN did. In the next version of the Guidebook, published in April 2011, it added the “In the absence of exceptional circumstances” qualifying language.
It’s also possible that this was the loophole that allowed Demand to pass screening.
Judging by the UDRP complaints it was involved in in the past, the company usually argued against the “bad faith” element of the policy. It often said it didn’t know about the complainant’s trademark and/or said it had offered to transfer the domain at no charge.
But more than 30 UDRP panelists didn’t buy that argument and still found against Demand. The company lost far more complaints than it won.
The fact that the company apparently managed to clean its act up a few years ago — not being hit with any complaints since 2011 — suggests that its act wasn’t all that clean to begin with.
Either way, neither ICANN nor Demand wants to talk about how the company passed screening, so I guess we’re still left wondering whether this section of the Guidebook is worth the PDF it’s written on.

Chinese geo gTLD bidder drops out of two-way fight

The Chinese government-controlled news agency Xinhua has dropped out of the race for the new gTLD .广东 — the local name of Guangdong, China’s most populous province.
The withdrawal clears a path for the only other applicant for the string, Guangzhou Yu Wei Information Technology, to pass more quickly through the ICANN approval process.
Guangzhou Yu Wei is affiliated with Zodiac Holdings, the Cayman Islands-based portfolio applicant founded by James Seng, but it also has backing from the Guangdong provincial government.
As a formally designated Geographic string, government backing is necessary for approval.
Xinhua had not appeared especially enthusiastic about its bid. Its prioritization number of 1772 means it didn’t bother to participate in ICANN’s lottery last December.
Zodiac, on the other hand, took advantage of the IDN bias in the process and wound up with a priority of 79. It passed Initial Evaluation in early April.
The company filed a Community application, but a Community Priority Evaluation will obviously no longer be required. It intends to restrict .广东 to registrants that can prove a local presence.
Zodiac is using .cn registry CNNIC as its back-end registry provider.