ICANN’s new gTLD Public Interest Commitments idea: genius or pure crazy?

ICANN has given new gTLD applicants a month to draft their own death warrants.
Okay, that might be a little hyperbolic. Let’s try again:
ICANN has given each new gTLD applicant 28 days to come up with a list of voluntary “Public Interest Commitments” that, if breached, could lead to the termination of their registry contracts.
The proposed, far-reaching, last-minute changes to the basic new gTLD Registry Agreement were introduced, published and opened for public comment on Tuesday.
PICs — as all the cool kids are calling them — are designed to appease ICANN’s Governmental Advisory Committee, which wants applicants to be held accountable to statements made in their gTLD applications.
If an applicant said in its application for .lawyer, for example, that only actual lawyers will be able to register a .lawyer domain name, the GAC wants ICANN to be able to step in and enforce that promise if the registry changes its registration policies at a later date.
Public Interest Commitments are the way ICANN proposes to let applicants state clearly what they commit to do and not to do, either by flagging parts of their existing application as binding commitments or by writing and submitting entirely new commitments.
Submitting a set of PICs would be voluntary for applicants, but once submitted they would become a binding part of their Registry Agreement, assuming their gTLD is approved and delegated.
“These are commitments you’re making to the community, to the governments, to everybody that can object to your applications, these are not commitments you’re making with ICANN,” ICANN COO Akram Atallah said on Tuesday’s webinar.
Registries would be subject to a new dispute policy (the Public Interest Commitment Dispute Resolution Process or PICDRP) that would enable third parties to file official complaints about breaches.
“We’re allowing third parties that are affected to be able to bring these claims, and then based upon the outcome of the dispute resolution process ICANN will enforce that third party dispute resolution result,” ICANN general counsel John Jeffrey said.
Registries that lost a PICDRP would have to “implement and adhere to any remedies ICANN imposes” up to and including the termination of the registry contract itself.
ICANN is asking applicants to submit their PICs before March 5, just 28 days after revealing the concept.
How PIC (probably) would work
Let’s take an example new gTLD application, selected entirely at random.
Donuts has applied for .dentist.
While the applied-for string suggests that only dentists will be able to register domain names, like all Donuts applications the gTLD would actually be completely open.
The government of Australia has filed a GAC Early Warning against this bid, stating that “does not appear to have proposed sufficient protections to address the potential for misuse”.
The Aussies want Donuts to detail “appropriate mechanisms to mitigate potential misuse and minimise potential consumer harm” or risk getting a potentially lethal GAC Advice objection to its bid.
If Donuts were so inclined, it could now attach a PIC to its .dentist bid, outlining its commitment to ensuring that .dentist is not abused by amateur dental surgery enthusiasts.
The PIC would be subject to public review and comment. If, subsequently, Donuts won the .dentist contention set, the PIC would be attached to its .dentist Registry Agreement and become binding.
Donuts may even stick to its commitments. But the moment some Marathon Man-inspired nutter managed to slip through the cracks, Donuts would be open to PICDRP complaints, risking termination.
What’s good about this idea?
From one perspective, PIC is a brilliantly clever concept.
The proposed solution doesn’t require applicants to amend their applications, nor would it require lengthy contractual negotiations during the gTLD approval and delegation process.
Applicants could merely attach their commitments to the base registry agreement, sign it, and be on their merry way.
This means fewer delays for applicants and relatively little additional up-front work by ICANN.
On an ongoing basis, the fact that PICs would be enforceable only by third parties via the PICDRP means fewer headaches for ICANN compliance and fewer debacles like the aborted attempt to bring .jobs into line.
Finally, it’s also completely voluntary. If applicants don’t want to file a PIC, they don’t have to. Indeed, most applicants aren’t even in a position where they need to think about it.
Do I sense a “but”?
But I can’t see these proposals going down too well in applicant land.
ICANN is, essentially, giving applicants one short month to bind themselves to a completely new, almost completely unknown dispute resolution process.
Repeat: the PICDRP does not yet exist.
Indications were given that it will be modeled on existing dispute resolution procedures in the Applicant Guidebook, but there’s no actual text available to review yet.
We do know that the process would be designed to enable third parties to file complaints, however. Agreeing to PICDRP could therefore potentially open up applicants to competitive or nuisance complaints.
The “remedies” that ICANN could impose when a PICDRP case is lost are also currently rather vague.
While the nuclear option (termination) would be available, there’s no information yet about possible lesser remedies (financial penalties, for example) for non-compliance.
I’ve talked to enough domain name industry lawyers over the years to guess that most of them will take a very dim view of PIC, due to these uncertainties.
One of the guiding principles of the new gTLD program from the outset was that it was supposed to be predictable. ICANN has veered away from this principle on multiple occasions, but these eleventh-hour proposed changes present applicants with some of the biggest unknowns to date.
The timeline doesn’t work
The raison d’être for the PIC concept is, ostensibly, to enable applicants to avoid not only potential GAC Advice but also official objections by other third parties.
But according to ICANN documentation, applicants are being asked to submit their PICs by March 5. ICANN will publish them March 6. They’d then be open for public review until April 5 before becoming final.
But the deadline for filing objections is March 13. That deadline also applies to objections filed by governments (though not GAC Advice, which is expected to come in mid-late April).
Judging by this timeline, potential objectors would have to decide whether to file their objections based on PICs that have been published for just one week and that could be amended post-deadline.
Unless ICANN extends the objection filing window, it’s difficult to see how PIC could be fit for its stated purpose.
On the bright side
I believe that only a small percentage of applicants will be affected by PIC.
Out of 1,917 applications and 1,409 strings, GAC governments filed just 242 Early Warnings against 145 strings. Some of those warnings merely tell the applicant to withdraw its bid, which no amount of PIC will cure.
I expect that very few, if any, applicants without Early Warnings will bother to file PICs, unless of course the objections deadline is moved and PIC becomes an effective way to avoid objections.
For those with Early Warnings, an alternative strategy would be to lobby friendly GAC members — demonstrably flexible to lobbying, judging by the Early Warnings — to ensure that they do not receive full, consensus GAC Advice against their applications.
That would be risky, however, as there’s currently no way of knowing how much weight ICANN’s board of directors will give to non-consensus GAC Advice against applications.

Frank Schilling’s Uniregistry gets accredited as a registrar

Portfolio new gTLD applicant Uniregistry has taken the first step towards bringing its proposed new gTLDs to market by getting accredited as a registrar by ICANN.
Uniregistrar Corp shares its Cayman Islands address with Uniregistry.
The company’s web site states:

Uniregistrar is a new ICANN accredited registrar designed to let you create domain names in the new top level domain extensions offered by Uniregistry.
Beginning in 2014 anyone will be able to create and manage their domain names using the simple site we plan to create here. The names offered by Uniregistrar will be shorter, clearer, easier to use and manage than the .com .net or .org names you know from the past.

Given that its IANA number does not yet appear on the official list, the accreditation must have been granted pretty recently.
Uniregistrar is already accredited to sell .asia, .biz, .com, .info, .jobs, .mobi, .name, .net, .org, .pro, .travel and .xxx names, suggesting that the company plans to sell more than just its own TLDs.
Schilling’s existing accredited registrar, iRegistry, which is used primarily (or exclusively) to manage Name Administration’s massive portfolio of domains, is only accredited in .com, .net, .org and .xxx.
Uniregistry is an applicant for 54 new gTLDs, including .auction, .sexy, .christmas and .blackfriday.
Unlike the current regime, under ICANN’s rules for new gTLDs, “vertical integration” — where a registry can own a registrar that sells domains in its TLDs — is permitted.

IFFOR targets new gTLDs with policy service

The International Foundation For Online Responsibility, which sets policy for .xxx, wants to broaden its scope and is to launch a “Policy Engine” service for new gTLD registries.
Kieren McCarthy, who has been working for IFFOR as its public participation manager for the last year, has been tapped to lead the organization too, taking over from Joan Irvine as executive director in April.
IFFOR is the sponsoring organization for .xxx, independent but created by registry manager ICM Registry as a way to demonstrate to ICANN that it planned to operate the porn gTLD responsibly.
It’s kept a bit of a low profile since .xxx launched, only emerging to distribute some small grants to worthy causes, but McCarthy says that it’s built up substantial policy-making and compliance expertise.
Now, it wants to let new gTLD registries outsource these functions to it.
“Broadly, the Policy Engine service lets gTLD applicants outsource their policy issues to an independent body,” McCarthy said.
IFFOR reckons plenty of new gTLDs will want such services, especially given the increased interest from governments in how new gTLDs are operated.
As the organization is currently set up to deal only with .xxx — it’s funded $10 a year from every .xxx sold — only three of its nine-member Policy Council are not members of the adult entertainment industry or connected to ICM.
Additionally, ICM’s general counsel is on its three-member board of directors.
But McCarthy said that the Policy Council, which also has substantial expertise in privacy, child protection and free speech issues, usually uses sub-groups to come up with its policies.
“The majority of what we do is applicable across any top-level domain,” he said.
McCarthy is the former journalist and ICANN staffer, current CEO of .nxt. When he takes over from Irvine in April, she is expected to stay around as a consultant.

ICANN has found a sub-$500 URS provider

ICANN has picked a provider for its Uniform Rapid Suspension anti-cybersquatting service, one that’s willing to manage cases at under $500 per filing.
The news came from new gTLD program manager Christine Willett during webcast meetings this week.
“We have identified a provider for the URS who’s going to be able to provide that service within the target $300 to $500 filing fee price range. We’re in the process of formalizing that relationship,” she said last night.
The name of the lucky provider has not yet been revealed — Willett expects that news to come in February — but it’s known that several vendors were interested in the gig.
URS is a complement to the existing UDRP system, designed to enable trademark owners to execute quick(ish) takedowns, rather than transfers, of infringing domain names.
ICANN found itself in a bit of a quandary last year when UDRP providers WIPO and the National Arbitration Forum said they doubted it could be done for the target fee without compromising registrant rights.
But a subsequent RFP — demanded by members of the community — revealed several providers willing to hit the sub-$500 target.
ICANN expects to approve multiple URS vendors over time.

BlackBerry maker kisses goodbye to rim.jobs with corporate name change

Research in Motion is to change its corporate name to BlackBerry, after the popular mobile devices it makes.
The company reportedly announced the news at the launch of the Blackberry 10 in London today,
Why mention this on a domain name industry news blog?
Three reasons.

• It means RIM will be able to more easily get its company name as a dot-brand new gTLD. Under the current rules, .rim would be problematic because it’s the Slovenian translation of Rome, a protected capital city name.
• Great excuse for a rim.jobs headline.
• It’s a very slow news day.

It should be pointed out that RIM could have applied for .blackberry in the current new gTLD round, but it didn’t.

Chehade: “Honestly, if it was up to me, I would delay the whole release of new gTLDs by at least a year…”

“…but I’m not going to.”
CEO Fadi Chehade this afternoon delivered a blisteringly frank assessment of ICANN’s new gTLD program, admitting that if it were up to him he would delay the whole thing by a year.
Speaking bluntly, mainly to registries and registrars, at a regional ICANN meeting in Amsterdam this afternoon, Chehade painted a stark picture of the challenge ICANN faces in meeting its deadlines.
It’s worth quoting at length:

Honestly, if it was up to me, I would delay the whole release of new gTLDs by at least a year.
I’m being very candid with you. I know none of you want to hear this, and I’m not going to do this — let me repeat, I’m not going to do this — but you should know that a lot of the foundations that I would be comfortable with, as someone who has built businesses before, are just not yet there.
I’m being super-candid with you because many of you wrote me in the last three weeks to say: ‘Be up-front with us, we’re business-people, tell us the truth.’ Well, the truth is that the people, processes and tools to enable a sector such as this are being built as the car is already running very fast.
We’re putting enormous pressure on our team to not to slip by a day. I’m now managing them with Akram [Atallah, COO] down to days. Before I came it was by quarters, by months, and I say no — every day we slip we’re delaying this industry from serving the market it’s supposed to serve.
It’s just a different mindset. And it’s a difference set of, frankly, talents that we’re bringing to the table. We have people who took six years to write the [new gTLD Applicant] Guidebook and we’re asking engineers and software people and third-party vendors and hundreds of people to get that whole program running in six months.
When the number two at IBM called me, Erich Clementi, after we signed the deal with them to do the [Trademark Clearinghouse] he said “Are you nuts?”. Literally, quote. He said: “Fadi you’ve built these systems for us before. You know it takes three times the amount of time it takes to write the specs to build reliable systems.”
But that’s the position we’re in, guys. I’m being candid with you. I know all of I know all of you want me to have this thing up and running yesterday. I want it running the day before yesterday. But this is what we’re facing. We’re facing a difficult situation, we’re working hard as we can, our people are at the edge. We have people who are working seven days a week now — it’s never happened before — on the new gTLD program.
We’re hiring as fast as we can. We’re now taking away from Christine [Willett, new gTLD program manager] some of the work she had to do so she can communicate better with you.
We’re doing a whole bunch of things so we can deliver this for you.
I don’t mean to scare you, because I know many of your businesses rely on this, but the right people are now in place, we’re building it as fast as we can but I want you to understand that this is tough, and I wish it were different. I wish you would all raise your hands and say: “You know what? Let’s take a break and meet in a year”.
I know you can’t do that, I know I can’t do that, and I know that the market can’t wait for that.
We’re going to do our best, and if in the process if we miss telling you something, if we move too fast on something before we share it with everybody as we normally should… give us a little bit of a break.
I don’t want to delay this program, but under all circumstances my mind would tell me: stop.

Chehade’s remarks come two weeks after new gTLD applicants gave new program manager Willett a good kicking during a webinar updating them on the program’s progress, during which it was revealed that a key deadline had been missed for at least the fourth or fifth time.
What else can we learn from his comments?
Well… here’s my interpretation:

• Put down the mic and back off, Kinderis. Yeah, that means you too, Fausett, and you, Neuman.
• It will be an absolute miracle if the Trademark Clearinghouse doesn’t suffer from teething troubles.
• Applicants are almost certainly going to see more delays of some form or another (always a safe prediction), and probably from the place they least expect it.
• The program wasn’t ready when it was approved in May 2011 (as many people, including yours truly, said at the time and have continued to say since).
• It’s probably not much fun working at ICANN right now, but at least the new boss knows what the hell he’s doing.

Industry man Chehade admits strawman “mistake”

ICANN CEO Fadi Chehade today admitted that he badly handled recent discussions about improving trademark protections in the new gTLD program, saying he made a “mistake”.
The remarks came during his speech at a meeting of registries and registrars in Amsterdam this afternoon.
The address, which along with a Q&A lasted an hour, was remarkable for Chehade’s passion and candor, and his apparently conscious decision to portray himself as an industry man.
But he arguably risked alienating the parts of the ICANN community that would certainly not define themselves as part of the “industry”, such as the intellectual property community.
This was no more evident as when he discussed the controversial trademark protection “strawman” proposals.
“We’re moving very fast at ICANN now,” he said. “You almost have no idea how fast we’re moving. We are opening so many new things and fixing so many things, that frankly should have been done for a long time at ICANN, that the speed at which we’re moving is making me, and sometimes my team, make mistakes.”
“I made one big mistake in the last few months,” he said. “I didn’t quite fully understand… this concept of ‘trying to take a second bite at the apple’, when I engaged with the Trademark Clearinghouse discussions.”
That’s a reference to meetings in Brussels and Los Angeles late last year, convened by Chehade at the request of the Intellectual Property Constituency and Business Constituency.
These meetings came up with the strawman proposals, which would create (arguably) new rights protection mechanisms and bolster others in favor of trademark owners.
Registries, registrars and new gTLD applicants complained that the IPC/BC proposals had already been considered multiple times by ICANN and the community and discarded.
Apparently Chehade has now come around to their way of thinking, helped in part by Non-Commercial User Constituency member Maria Farrell’s complaint about the strawman process.
“I frankly didn’t fully understand until I went through the process, and appreciated what people were actually trying to do,” Chehade said. “So, okay, big learning experience for me… I take it, I move on and hopefully I won’t make that mistake again.”
What does this mean for the strawman? Well, it’s not looking great.
While the proposals are still open for public comment, at some point ICANN is going to have to decide which bits it wants to adopt as “implementation” and which are more suited to policy development.
After today’s comments, I’d expect Chehade to be less inclined to push for the former.

It’s official: people hate the domain name industry

I’ve said it many times before: the domain name industry has problems with its reputation. But now the official figures are in that — apparently — prove it.
According to ICANN CEO Fadi Chehade, the industry is perceived four times worse the IT industry average.
That figure — whatever it means — came out of a “reputational analysis” study conducted by expensive consultants hired by ICANN, Chehade told registrars and registries in Amsterdam today.
“The results were not flattering,” he said. “The negative perception of our industry runs four times the IT industry average.”
“Our industry is not a well-established or well-received industry,” Chehade said.
A second study conducted by a pricey PR firm — which looked at media coverage and polled the big three tech industry analysis firms — apparently confirmed the results.
“None of the three top analysts cover our sector,” he said. “They don’t even look at it.”
“Let’s stop the constant attacking of our registrars and registries,” he later added.
“Are there bad actors? Every industry has bad actors, but ours are somehow featured all the time in the media,” he said. “How about if we talk about the good guys that do real works and serve their communities and help businesses thrive? That’s the story I want to tell.”
Chehade said he’d shared the results of the two studies with the CEOs of major registrars at a roundtable discussion at ICANN HQ last week.
He said he’s trying to reach out to analysts to engage more with ICANN in a bid to improve the industry’s reputation.
“As the new gTLD program rolls in the second half of this year, it’s very important that we’re prepared with the right people in these places so our perception, and how the industry talks about us, is the right thing,” he said.
Chehade, who’s been at the World Economic Forum in Davos, Switzerland this week, also pointed to a pronounced lack of awareness of the domain name sector among other industry leaders.
“Out of the CEOs I met — and I met many — I’d say half of them don’t know who we are,” Chehade said.
He said that one profile-raising idea that came out of his registrar CEO round-table was to create “the first DNS world conference… a true business and industry conference”.
There’s also talk about a “good housekeeping” seal for well-behaved domain name industry companies.
“If it’s perception issue or an actual issue, we need to do things that start showing the world we are a responsible industry,” he said.
Chehade plans to meet next month with registry CEOs and invited new gTLD applicant back-ends, and later with the leaders of ccTLD registries.

Google backing new gTLD trade association

New gTLD applicants and others have been meeting in Amsterdam this morning to discuss setting up a new trade association to promote new gTLDs and domain names in general.
The meeting, which was organized by Google, coincided with but was separate from an ICANN registry-registrar gathering in the city.
According to sources on the ground, the proposed trade association would be focused on raising consumer awareness about domain names and their benefits, outside of the ICANN community.
It’s a very early-stage idea, and today’s meeting — we hear — discussed things like possible funding sources and membership requirements.
More details are expected to emerge later today.
We also hear that the important topic of “universal acceptance” of TLDs has been discussed.
As we reported earlier in the week, there’s still not enough support from major software developers (including browser makers, whose job it is to connect users to web sites) for some of the newest TLDs.
Lack of awareness could cause technical problems as well as marketing ones, so a trade association — especially one back by Google’s headline-raising powers — may well be good for the industry.
Google is an applicant for almost 100 new gTLDs.

Trademark Clearinghouse prices revealed

The cost of submitting trademarks to the forthcoming Trademark Clearinghouse will start at $150 per year, the Clearinghouse operator has revealed.
In a complex fee structure documents released this morning, the Clearinghouse outlines a range of discounting schemes that could reduce the cost to as little as $95 a year for big volume users.
But it looks like it’s going to be quite difficult to qualify for really substantial discounts.
Marks submitted to the Clearinghouse will eligible for the Trademark Claims service, which alerts the owners if someone registers a matching domain name, and may be eligible for new gTLD Sunrise periods.
The fees outlined today cover both services, though new gTLD registries will of course charge their own Sunrise fees on top of what the Clearinghouse asks.
The documents break down two types of pricing: basic credit card payments (for people with 10 trademarks or fewer) and advanced prepayment pricing, which is reserved for “agents”.
Agents will in most cases be digital brand management companies (think Melbourne IT or Markmonitor) but the Clearinghouse tells us that trademark owners can also become agents if they pre-pay.
The basic, credit-card tier costs $150 per year for a single trademark. The cost is reduced to $145 per year if the trademark owner registers the mark for three or five years.
The prepaid advanced tier is rather more complicated, based on the number of “status points” customers rack up.
A status point is earned for each trademark-year registered, with bonus points awarded for multi-year registrations and registrations made in a special “early bird” period (before the first-to-launch new gTLD’s Sunrise period begins).
Excluding these bonuses, agents would have to register over 100,000 trademark-years in order to qualify for $95-a-year pricing, which is the lowest available.
Multi-year registrations would make make the discounts kick in earlier, but only after certain milestones are passed.
The Clearinghouse document gives this example:

If you register the first 3,000 trademarks for a single year, they will be charged at 145 USD per registration. The next 22,000 will be charged at 135 USD. The next 35,000 registrations will be charged at 120 USD. For 60,000 registrations you will have paid 435,000 + 2,970,000 + 4,200,000 USD, or an average price of 126.75 USD

Smart agents will likely want to register their multi-year marks first, in order to earn bonus points and more quickly qualify for the cheaper rate on their single-year registrations.
Whether agents pass on their discounts to their customers is another matter entirely.
The Clearinghouse fees will be calculated based on the number of trademarks submitted, rather than the number of domain names matching those trademarks.
Each mark will automatically get up to 10 matching domain names entered into the database. If your trademark is “Joe’s Autos” your matching domain strings could be “joesautos”, “joes-autos” and even “joe-s-autos”.
Trademark owners will have to pay an extra dollar per year for each matching domain beyond 10.
The Clearinghouse — operated by Deloitte with a back-end provided by IBM — still plans to launch later in the first quarter this year.
You can download its pricing scheme from its web site.