Directi emerges as new gTLD applicant

The India-based domain name registrar Directi plans to apply for a bunch of new generic top-level domains, using ARI Registry Services as its back-end registry provider.
Directi has set up a new entity, Radix, to handle its applications and registry business.
The number and nature of the gTLDs in Radix’s plans have not been revealed, but the company uses words like “entrepreneurial” and “ambitious” to describe the move.
Reading between the lines, I’m going to lump Radix in with the like of Minds+Machines, Donuts, and Demand Media as one of the few companies to reveal big multiple-gTLD investment plans.
These “domainer” applicants (as opposed to focused, single-string applicants) are the guys to watch post-May 1, when the list of applications is published by ICANN.
In addition to Radix, Directi owns ResellerClub, LogicBoxes, BigRock and WebHosting.info.
According to Whois, radix.com belongs to a Brazilian investment company. It does not currently resolve.
Assuming there’s no affiliation with Directi, I think this officially means that Andrew Allemann is no longer allowed to mock companies that launch services before they own the matching .com domain.

China cracks down on new gTLD applicants

Chinese companies planning to apply to ICANN for a new generic top-level domain will have to get a permit from the government, it has been announced.
Applicants will have to reveal their services, their contingency plans, and their trademark protection and anti-abuse procedures, among other details, to China before applying.
The news, which could be troubling to some Chinese gTLD applicants, came in an official Ministry of Industry and Information Technology announcement yesterday.
A local source confirmed that the Ministry plans to issue permits to new gTLD applicants.
It seems to apply to any gTLD, but a second set of regulations to govern the obtaining of government non-objection letters in the case of geographic strings has also been introduced.
These rules seem to apply only to local companies. As far as I know China is not yet claiming exclusive ownership of the Chinese language and script as it has in the past.
I also hear on the grapevine that China thinks ICANN is subject to a business tax on its $185,000 application fees, and that applicants are being asked to pre-pay this tax on ICANN’s behalf.
The nation has form when it comes to heavy-handed domain name industry regulation.
Rules forcing registrants to submit ID when they register .cn domain names have caused the number of ccTLD registrations to plummet over the last couple of years.
The .cn space peaked at about 14 million domains under management in 2009 and stands at just 3.3 million today.

New gTLD magic number upped to 144

The number of registered new gTLD applicants has increased to 144, according to ICANN.
That’s up from 100 two weeks ago and up from 25 on January 19.
It refers to the number of registered users in the TLD Application System, the web-based tool used for filing new gTLD applications.
Each TAS slot can be used to file up to 50 applications; 144 registered TAS users could mean anything from 144 to 7,200 gTLD applications.
I err towards the lower number. Some consultants have told me they open a new account for each application they plan to file, due to some technical limitations in the system.
Most people are expecting a last-minute rush of applications — primarily hold-out dot-brand applicants — shortly before the system closes to new registrants March 29.

GMO to apply for .osaka gTLD

GMO Registry has won governmental support for a .osaka new top-level domain bid for the Japanese prefecture of Osaka.
The company announced today that the prefecture awarded it the necessary letter of support after a tender process that ran in January.
Osaka is also the name of Japan’s third-largest city. The prefecture has a population of about 8.8 million.
The .osaka application joins GMO’s steadily growing collection of proposed Japanese geo-gTLDs. It already has governmental support for .tokyo, .okinawa and .ryukyu.
It also plans to apply for .shop off its own back.

How many defensive registrations is too many?

How will ICANN measure the success of its new top-level domains program, and how many defensive registrations is too many?
These questions are now firmly on the ICANN agenda, following the publication of 37 draft recommendations for how to measure the success or otherwise of new gTLDs.
The advice of the Consumer Trust Working Group, published last night and now open for public comment, is a must-read for anyone interested in the emerging new gTLD market.
The recommendations describe myriad ways ICANN could benchmark the performance of new gTLDs three years from now, to fulfill its promise to the US Department of Commerce to study the effect of the program on consumer choice and competition.
While it’s a broad document covering a lot of bases, I’m going to be disappointingly predictable here and immediately zero in on the headline wedge issue that I think will get most tongues wagging over the coming weeks and months:
Defensive registrations.
The working group decided to recommend that, as a measure of success, domain name registrations in new gTLDs should be no more than 15% defensive* three years after launch.
Defensive in this case would mean they were registered during the mandatory Sunrise period.
The idea is that consumer choice can be demonstrated by lots of registrations in new gTLDs, but that defensive registrations should not count toward that goal.
The 15%-Sunrise baseline number was chosen fairly arbitrarily – other suggestions were 20% and 12% – and is designed to spur community discussion. It’s not final.
Still it’s interesting.
It implies that if a registry has 15,000 Sunrise registrations, it needs to sell another 85,000 domains in three years to be seen as having made a successful contribution to consumer choice.
By way of an example, if it were to be retroactively applied to .xxx, the most recent gTLD to launch, ICM Registry would have to get its total registrations up to 533,000 by the end of 2014.
Is 15% too low? Too high? Is it even a useful metric? ICANN wants to know.
Whatever the ultimate number turns out to be, it’s going to be handy for plugging into spreadsheets – something opponents of new gTLDs will find very useful when they try to make the case that ICANN endorses a certain dollar value of trademark extortion.
Because many registries will also accept defensive registrations after Sunrise, two more metrics are proposed.
The group recommends that domains in new gTLDs that redirect to identical domains in legacy TLDs – strongly implying a defensive registration – should be no more than 15% after three years.
It also recommends that ICANN should carry out a survey to see how many registrants own matching second-level domains in legacy TLDs, and that this should also be lower than 15%.
I’ve only outlined three of the working group’s recommendations here. Many of the other 34 are also interesting and will be much-debated as the new gTLD program continues.
This is vitally important stuff for the future of new gTLDs, and applicants would be well advised to have a good read — to see what might be expected of them in future — before finalizing their applications.
* It should be noted that the recommendation as published confusingly reads “Post-Sunrise registrations > 15% of total registrations”, which I think is a typo. The > operator implies that non-defensive registrations only need to be over 15% of total registrations, which I’m certain is not what the working group intended to say.
(UPDATE: this typo has now been corrected).

Europe to warn consumers about .bank “risks”

The European Banking Authority has told ICANN it believes that proposed financially-oriented gTLDs such as .bank are dangerous and should be banned.
The EBA, the European Union’s central banking regulator, said it plans to issue consumer alerts, warning people about “the risks of these new naming conventions”.
In a letter to ICANN published today, EBA chair Andrea Enria said that a global gTLD such as “.bank” would not give consumers a good guide as to whether the bank was regulated in their own country.
Financial gTLDs have a “not-yet-identified benefit” and could create a “moral hazard”, Enria wrote. The EBA is also worried about the cost of trademark enforcement, he said.

the EBA believes that it is not feasible to address most of the supervisory concerns of its members on the risks of misuse of the proposed gTLDs and calls the ICANN to reconsider its plans for allowing the such of the above mentioned gTLDs and ban the establishment of such gTLDs altogether.

The EBA was formed just over a year ago as the successor to the Committee of European Banking Supervisors. Its members are the heads of the financial regulators of the EU member states.
The letter could come as a blow to the American-led .bank application proposed by the American Bankers Association and the Financial Services Roundtable’s BITS division.
The BITS project envisages a tightly controlled namespace for banks, governed by a fairly strenuous set of security measures.
But the establishment of a .bank gTLD is one area where we are almost guaranteed to see ICANN’s Governmental Advisory Committee exercising its new-found objection powers.
If the Europeans and the Americans do not see eye to eye, .bank will not see the light of day.

Architelos makes $1 million in first year

The new gTLD consultancy Architelos took in revenue of over $1 million in its just-concluded first year of operations, according to the company.
That impressive sum came from a combination of consulting fees and software licenses for its Business Case Builder, which helps new gTLD applicants model their financial outlook.
Named clients include Verisign, Nominet, .music applicant Far Further and the Canadian Internet Registry Authority, according to Architelos.
Company founder and CEO Alexa Raad earned her chops leading the .mobi and .org registries before going independent.

Olympics warming to new gTLD bid?

ICANN’s new generic top-level domains Applicant Guidebook may be modified to make it clear that the International Olympic Committee can apply for .olympic if it wants to.
That’s judging by the current state of negotiations in an ICANN working group set up to give special protection to Olympic and Red Cross/Red Crescent trademarks.
Currently, the Guidebook contains a multilingual list of strings related to the Olympic and Red Cross brands that are completely banned from delegation as gTLDs.
But a GNSO working group seems to be rapidly veering towards a recommendation that the ban should be waived if the IOC and Red Cross decide to apply.
The IOC and Red Cross would therefore be able to get their hands on .olympic and .redcross.
Both organizations are closely involved in these talks, which suggests that they may not be entirely hostile to the idea of running their own dot-brand gTLDs after all.
The GNSO working group is also considering the idea that the Olympic and Red Cross trademarks should be protected by string similarity reviews, which is not the case currently.
This could mean, for example, that non-identical gTLDs such as .olympus might have to get IOC backing if they want their applications approved.
The GNSO Council is expected to vote to approve or reject the recommendations at its meeting in San Jose, Costa Rica next month.
It’s not clear whether this would give ICANN enough time to rubber-stamp the decision before the new gTLD application window closes to new applicants March 29.
The decision would not be non-controversial, however. Some ICANN community members are not in favor of granting special trademark protections to anyone.
The GNSO working group has also been tasked by the Governmental Advisory Committee with coming up with second-level protections for the Olympics and Red Cross, but this policy work is unlikely to bear fruit until after the new gTLD application window closes.

Strickling says ICANN needs a stronger bottom

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

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.