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Strickling says ICANN needs a stronger bottom

Kevin Murphy, February 22, 2012, Domain Policy

National Telecommunications & Information Administration chief Larry Strickling has called for ICANN to strengthen its decision-making processes.
In a speech at the University of Colorado earlier this month, Strickling called out ICANN’s board of directors in particular, for its habit of choosing between competing views when the ICANN community fails to reach consensus via the multi-stakeholder process.
The speech went over ground covered in other recent addresses – namely, how ICANN fits into the wider international political picture.
The US is worried about moves by some nations within the Internet Governance Forum and the International Telecommunications Union that threaten to make the internet an exclusively government-run enterprise.
Developing nations in particular are likely to support such moves, as the internet is causing them to lose the revenue they make by terminating international phone calls.
An ICANN that makes decisions without true bottom-up stakeholder consensus plays into the hands of those who would replace it with a new treaty organization, Strickling suggested.
According to his prepared remarks, he said:

Organizations that convene or manage multistakeholder processes have to be vigilant to make sure they do not inadvertently interfere with the effort to reach consensus.

the ICANN Board increasingly finds itself forced to pick winners and losers because its policy development process does not always yield true consensus-based policy making. This is not healthy for the organization.

If stakeholders understand that they can appeal directly to the Board to advocate for their particular policy position, they have less incentive to engage in the tough discussions to reach true consensus with all stakeholders during the policy-development process.

Ironically, ICANN’s current public comment period into defensive new gTLD applications – which could lead to changes to its trademark protection mechanisms – was opened precisely because Strickling himself, under pressure from Congress, appealed directly to the board.
But I suspect he was actually referring to the Association of National Advertisers, which scarcely participated in the development of the new gTLD program before it was finalized but has been loudly threatening ICANN about it ever since.
As well as calling for more participation from industry, Strickling also stressed the need for more governments to get involved in ICANN, “finding a way to bring them willingly, if not enthusiastically, into the tent of multistakeholder policy-making”.
But what would an ICANN that waits for true stakeholder consensus before the board makes a decision look like?
Strickling did not offer a solution in his address, but he did refer to the Governmental Advisory Committee’s new formal definition of consensus.
Without explicitly endorsing the model, he described it like this:

if the group reaches a position to which members do not object, it becomes the consensus view even though some members may not affirmatively support the position.

I’m finding it difficult to imagine ICANN continuing to function if its board of directors also had to observe this kind of “consensus” among stakeholders before making a decision.
Trademark owners and registrars not objecting to each other’s stuff?
What would I write about?

M+M registers for another 20 gTLD applications

Kevin Murphy, February 21, 2012, Domain Registries

Minds + Machines parent Top Level Domain Holdings has registered for another 20 new gTLD application slots with ICANN, bringing its total to date to 40.
The TLD Application System slots are for filing gTLD applications for itself and on behalf of M+M clients, the company said this morning.
A week ago, ICANN said that 100 registrations had been made with TAS.
TLDH is known to be involved in applications for .gay and .eco, among others. It registered its first 20 application slots during the first week of the application window, mid-January.

Watch ICANN approve some new gTLDs

Kevin Murphy, February 20, 2012, Domain Policy

In ICANN’s world, the current new top-level domains application period is actually the fourth, not the first.
As well as the 2000 “proof of concept” round, there was the sponsored gTLD round that kicked off at the end of 2003, and the ongoing IDN ccTLD Fast Track round from 2009.
I’ve finally got around to uploading to YouTube the video of the November 16, 2000 ICANN board meeting at which .info, .biz, .name, .pro, .museum, .coop and .aero were approved.
It was a pivotal moment in the history of the domain name system, particularly starting at the 5:46 mark, when the tide turned against Afilias’ application for .web, in favor of the less attractive four-character .info.
The main reason for the switch was Image Online Design’s competing application. IOD had been running .web in an alternate root for a few years before applying to ICANN.
If the internet had had a .web for the last decade, I believe conversations we’re having about new gTLDs would be very different today.
With .web expected to be a contested gTLD this time around — perhaps by some of the same companies that applied last time — expect this 11-year-old ICANN board meeting to be cited regularly in the near future.

The video was recorded by the Berkman Center for Internet & Society at Harvard and encoded in RealPlayer format, which in 2000 meant pretty poor-quality audio and video.

Tucows co-founder takes hard line on .club gTLD

Kevin Murphy, February 20, 2012, Domain Registries

.CLUB Domains LLC says it has secured funding for its .club generic top-level domain application, and says it is ready to go to an ICANN auction if necessary.
CEO Colin Campbell, a Tucows co-founder, blogged today that the funding deal comes along with “contingent financing… to ensure the company wins the top level domain in an auction.”
Apparently a few other companies have privately revealed that they are also applying for .club, but .CLUB Domains claims that it has no intention of negotiating with them. Campbell wrote:

Unfortunately ICANN’s process has encouraged some speculators to apply for the gTLD with no intention of actually running the top level domain but simply negotiating with legitimate operators. We have been approached by a number of companies who are applying for .Club. Our belief is that is best not to negotiate with these companies or individuals but win the name through an open and fair auction process.

This is a prime example of why revealing new gTLD plans before April 12 may not be the best business strategy — they invite competition from insiders who want a piece of your action.
Whether .CLUB Domains’s hard-line stance on competing applications will help reduce the field for .club — or whether rivals will try to call its bluff — remains to be seen.

CentralNic working with .mls new gTLD bidder

Kevin Murphy, February 20, 2012, Domain Registries

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.

Details of new gTLD batching process revealed

Kevin Murphy, February 17, 2012, Domain Policy

Some details about how ICANN will prioritize new generic top-level domain applications into batches have emerged.
The Applicant Guidebook states that gTLD applications will be processed in batches of 500, but all it says about the batching process is that it will not be random. Rather, some form of “secondary timestamp” is proposed.
The batching process is important mainly to commercial, open registries, which stand to make much more money by hitting the market early, before new gTLD fatigue sets in.
Some tantalizing hints about how batches will be created can be found in the minutes of the ICANN board of directors December 8 meeting, which were recently published.
From the minutes we learn the following:

  • Applicants are not going to find out how batching will work until after April 12, when all the applications have already been received.
  • The timestamp could be created by an email sent by the applicant to a specific address at a specific time, or some function within the TLD Application System.
  • The system will not be biased towards specific geographic regions – ICANN will cycle through the fastest responses from each region when it creates the batches.
  • There will be an opt-out for applicants for whom time is not a factor.
  • Contested gTLDs will be batched with the fastest applicant.

The minutes represent ICANN’s staff’s thinking two months ago – and the conversation confused several directors – so the batching method finally selected could obviously differ.
However, if time-to-market is important for your gTLD, it might be a good idea to think about renting a server as few hops from ICANN as possible.
This is what the minutes say:

The third, and remaining option, is a secondary timestamp. This would occur after the time of the application window closing in order to provide privacy. Applicants will not be advised of the exact method until after the applications are received, which will ensure further fairness. It could be an email response to a mailbox, or the re-registration of an application, or another method. The method used will be decentralized, so that the region rom which the secondary timestamp is submitted is irrelevant. The timestamp will cycle through the regions of the world, awarding a batching preference to the top-rated application from one region, then the succeeding four regions, and continue the cycle again. In the case of contending applications, the applications will be grouped in the earliest batch where any of the contending applications are placed. There will also be an opt-out mechanism, included at the community’s request. Applicants may request to be evaluated at the end, if they prefer to be evaluated and delegated later.

AFL to apply for dot-brand gTLD

Kevin Murphy, February 16, 2012, Domain Registries

The Australian Football League has just added its name to the short but growing list of companies announcing plans to apply to ICANN for a new “dot-brand” top-level domain.
The AFL is the governing body of Aussie rules football, a bastardization of the original sport even more violent and less internationally popular than the unwatchable American version.
Like recently revealed dot-brand applicant StarHub, the league has hired Melbourne IT to handle its application and registry back-end provider ARI Registry Services to run the infrastructure.
The Aussie AFL explained its decision to apply for .afl in a press release:

A dot AFL domain has the potential to:
— Make it easier for fans to find relevant online content
— Improve the protection of AFL, club and player environments online
— Support the growth of club and AFL media channels
— Better support the promotion and education for grass roots and community football
— Simplify marketing call to actions
— Provide opportunities for sponsors to promote their association with the AFL and clubs

The AFL may have a clear shot at goal here.
While several other organizations currently use the same acronym, none of them jump out as obvious dot-brand applicants, though some may of course choose to file objections.
The announcement is pretty good news for Melbourne IT and ARI — given Aussie rules’ popularity in their native Australia, I can see this deal getting a lot of local press today.

ICANN has 100 new gTLD applicants

Kevin Murphy, February 13, 2012, Domain Policy

One hundred companies have registered to apply for generic top-level domains, according to ICANN senior vice president Kurt Pritz.
ICANN has decided not to provide a running commentary about how many applications have been received, but it did say that 25 companies registered in the first week the program was open.
“That number is now up to 100,” Pritz said today at the The Top Level conference in London.
He was referring to companies paying their $5,000 to sign up for ICANN’s TLD Application System, which is likely to be much smaller than the actual number of gTLD applications. Each TAS account can store up to 50 applications, Pritz said.
There are only 45 days left on the clock to register for a TAS account. After March 29, you’re in for a wait of at least three years (my estimate) before the opportunity comes around again.
Pritz’s revelation was one of the more interesting things to emerge during today’s half-day gathering at the offices of the PR firm Burson-Marsteller, which attracted about 40 attendees.
The other big surprise was that Scandinavian Airlines System Group, the dot-brand applicant that was due to give a presentation on its plans for .sas, was a no-show.
I gather that somebody more senior at SAS found out about the conference and decided that revealing all was not such a great business strategy after all.
Most dot-brand applicants are playing their hands close to their chest, even if they’re not heading into a contested gTLD scenario (which SAS may well be if the software firm SAS Institute also applies for .sas).
I also found it notable that there’s still substantial confusion about the program among some potential dot-brand applicants, several of which did show up as general attendees.
I talked to one poor soul who had read the latest revision of the 349-page Applicant Guidebook back-to-back after it was published January 11, trying to figure out what had changed.
He was apparently unaware that ICANN had simultaneously published a summary of the changes, which were very minimal anyway, in a separate document.
These are the types of applicant – people unfamiliar not only with ICANN’s processes but also even with its web site – that are being asked to hack the Guidebook to make the rules compatible with a dot-brand business model, remember.
One potential applicant used a Q&A session during the conference to bemoan the fact that ICANN seems intent to continue to move the goal-posts, even as it solicits applications (and fees).
Pritz and Olof Nordling, manager of ICANN’s Brussels office, reiterated briefly during their presentation today that the current public comment period on “defensive” applications could lead to changes to the program’s trademark protection mechanisms.
But this comment period ends March 20, just nine days before the TAS registration deadline. That’s simply not enough time for ICANN to do anything concrete to deter defensive applications.
If any big changes are coming down the pipe, ICANN is going to need to extend the application window. Material changes made after the applications are already in are going to cause a world of hurt.

Did Kazakhstan just screw up somebody’s new gTLD plans?

Kevin Murphy, February 10, 2012, Domain Registries

ICANN has approved a new country-code top-level domain for the nation of Kazakhstan.
The new .қаз, which is “kaz” is Cyrillic, will be delegated to the “Association of IT companies of Kazakhstan”, according to a resolution passed by ICANN’s board of directors this week.
But did this move just cause problems for a new gTLD applicant?
One cultural/geographic gTLD that was proposed back in 2009 is .kab, for the Kabylia region of Algeria and the Kabyle language and people.
It’s easy to see how kab/KAB and .қаз could be considered confusing during a string similarity review, though ICANN’s laughable Sword tool only gives them a visual similarity score of 49%.
The .kab application currently has a dead web site, so it’s quite possibly one of the many new gTLD projects that fizzled out during ICANN’s repeated delays launching the program.

M+M adds $14m to new gTLDs war chest

Kevin Murphy, February 10, 2012, Domain Registries

Top Level Domain Holdings has raised £9 million ($14.2 million) with a share sale, boosting its ability to apply for new generic top-level domains.
TLDH, which is listed on the Alternative Investment Market in London, owns registry provider Minds + Machines and has interests in a number of new gTLD joint ventures.
The shares were sold to “institutional and other investors” for 8.25p each, the company said.
TLDH now has a cash pile of about $25 million, CEO Antony Van Couvering said in a press release. Chairman Peter Dengate Thrush added:

TLDH management believes that the increased capital will allow it to increase significantly the number of applications it is able to make, allowing it to develop a wider, more diversified portfolio of names in multiple languages and scripts

The current cash balance would allow it to apply for 135 gTLDs, if it blew the whole lot on application fees.
I expect its actual number of applications to be more like 30, which would leave TLDH with about $20 million in reserve for fighting contested applications and start-up costs.
It could also try to raise some more money from the markets when some of its gTLD applications start being approved, of course.
Being the only public company entirely devoted to new gTLDs may leave TLDH in an interesting tactical position a few months from now — competing applicants are going to have a relatively good insight into the strength of its hand if any of its applications go to auction.