Sedari hires Fay Howard as COO

New gTLDs start-up Sedari has recruited Fay Howard, formerly general manager of CENTR, the Council for European National Top Level Domain Registries, as its new chief operating officer.
Howard has also previously worked at Nominet and Eurid, where she wrote the winning application for the .eu registry contract, according to Sedari.
It’s one of a number of recent senior hires for the company, which came out of stealth mode this summer to provide new gTLD applicants with application and registry management services.
Last month, the company hired Philip Shepard as director of policy.

Bulgaria told to forget about .бг

ICANN CEO Rod Beckstrom has advised Bulgarians to admit defeat in their ongoing campaign to have .бг approved as a local-script top-level domain to match .bg.
The country’s application for the Cyrillic label was rejected by ICANN’s IDN ccTLD Fast Track program last year because it was found to look too similar to Brazil’s .br.
Nevertheless, the local government and domain name groups have continued to press for the right of appeal, and have indicated they may apply again.
But in an interview with Novinite published today, Beckstrom says:

I would advise the Bulgarians to go for something else. The initial application for .бг was unsuccessful.
The job of ICANN, the organization, is to implement the policies that are developed by the global communities. Those communities did not allow the initial application to go through because of potential visual confusion. So I think the Bulgarians can go back and they can choose what they want to apply for.
The Bulgarians can apply for a three-character name, they can apply for .българия in Cyrillic, it’s really up to the local community.

He goes on to say that Bulgarians could wait for a change in policies then apply again, they could change their desired string, or they could abandon their plans altogether.
However, surveys have found little appetite among the Bulgarian public for alternative strings such as .бгр, .българия, .бя or .бъл.
It’s a tricky problem for ICANN, which is first and foremost tasked with ensuring DNS stability and security.
Confusingly similar TLDs lend themselves to security risks such as phishing, and my understanding is that if .бг were to be approved it would face opposition from interests in Brazil.
The Novinite interview also touches on the possibilities of .софия and .Пловдив, to represent the Bulgarian cities of Sofia and Plovdiv.
The .бг issue was the subject of some apparently heated discussion during the recent Domain Forum new gTLDs conference in Sofia, but I understand Beckstrom had left before that part of the agenda.
You can now watch the entire Domain Forum, including Beckstrom’s introductory keynote, for free on YouTube.

Wanted: somebody to object to new gTLDs

ICANN is looking for somebody to object to new top-level domain applications.
It’s put out a call for an Independent Objector, whose job it will be to file formal objections to new gTLDs that he or she determines may not be in the public interest.
ICANN is looking for somebody with an in-depth knowledge of the new gTLD program and extensive experience in multinational organizations.
The IO has been a planned component of the new gTLD program for a couple of years.
The role is designed to provide a way to kill off “highly objectionable” applications in cases where the affected community may lack the resources or organization to pay for an objection.
Essentially, the IO looks at public comments filed with ICANN and decides whether opposition to a gTLD is substantial enough to warrant a formal objection.
The IO may only use two of the Applicant Guidebook’s objection mechanisms – the Community Objection and the Limited Public Interest (formerly “morality and public order”) Objection and not trademark or string confusion grounds.
My view is that we’re likely to see very few “highly objectionable” applications. And now that ICANN has agreed to fund some government objections, the IO is likely to wind up being a bit of an easy ride for whoever successfully applies for the job.
Interested parties have until December 22 to apply. The job description can be found here.

GMO wins .tokyo deal

GMO Registry says it has won local government backing to apply to ICANN for the city top-level domain .tokyo.
The company revealed the news on its Twitter feed today, linking to this Tokyo metropolitan government announcement confirming the story.
While perhaps best-known for its planned .shop application, GMO is probably the registry services company with the most announced new gTLD back-end contract wins to date.
It is also on board to provide the registry for the Japanese regional gTLDs .okinawa and .ryukyu, as well as the brand gTLDs .hitachi and .canon. It already runs Somalia’s .so and Indonesia’s .id ccTLDs.
GMO Registry parent GMO Internet is a pretty big deal in its native Japan. Publicly listed on the Tokyo Stock Exchange, it has annual revenue of well over half a billion dollars.

CADNA asks for new gTLDs second round

The Coalition Against Domain Name Abuse, having spent quite a lot of time and effort opposing ICANN’s new top-level domains program, wants ICANN to name the date for a second round.
In a letter to president Rod Beckstrom today, which was inspired by discussions at the recent What’s At Stake conference, CADNA president Josh Bourne writes:

We ask that the ICANN Board request an Issues Report to formally initiate a policy development process to determine when the next round of new gTLD applications will occur, thereby affirming its commitment to opening a second round in a timely manner.

As I’ve noted previously, ICANN has not named the date for the second round so far because it’s promised the Governmental Advisory Committee that it will review the first round first.
But businesses from outside the domain name industry are feeling like they’re being pressured into making a decision whether to apply for a gTLD they don’t necessarily want, Bourne says.

By not disclosing when it will open future rounds of new gTLD applications, ICANN is creating a condition of scarcity that will inevitably result in a massive land rush, where entities will scramble to apply for new gTLDs for the sole purpose of hypothetically “future-proofing” their identities in the new domain name space, without any immediate intentions to use their new gTLDs for innovative means.
Disclosing when it will open a second application round will not only alleviate the anxiety that businesses are feeling, it will give ICANN the chance to quell the animosity that has developed toward it among the business community.

The whole letter is worth a read. No matter what you think of CADNA, it’s difficult to argue with Bourne’s points (though please do so in the comments if you disagree).
Scare sales tactics are already a key source of mainstream hatred for the domain name industry at the second level. Now would be a good time to prevent the same thing happening at the top level too.
It will look very bad for ICANN in a few years’ time if the root is cluttered with useless, unused gTLDs created just because companies felt pressured into defensive applications.

YouPorn challenges new gTLDs with review demand

YouPorn operator Manwin is demanding a review of .xxx, and ICANN’s top-level domains program by association, in a new Independent Review Panel request.
It becomes only the second company ever, after .xxx manager ICM Registry, to file an IRP request with ICANN. The filing came at the same time as Manwin sued ICANN and ICM in California.
The IRP demand ostensibly focuses on .xxx, but it also suggests that the forthcoming new gTLD program has many of the same flaws as the process that led to .xxx’s approval.
IRP is the final, and most expensive, appeals process available within ICANN for companies that believe they’ve been wronged by the organization’s decisions.
It was first used by ICM in 2008-2009 to have the rejection of its .xxx application overturned.
To win an IRP, complainants have to convince an International Centre for Dispute Resolution panel (probably three retired judges) that ICANN violated its own bylaws when it made a harmful decision.
The only reason .xxx is in the root today is that an IRP decided by majority that ICANN broke the bylaws when it approved and then rejected the .xxx bid filed in the 2004 new gTLD round.
Manwin’s IRP claims that ICANN failed to “adequately address issues including competition, consumer protection, malicious abuse and rights protection prior to approving the .xxx TLD”.
It also claims that ICANN failed to enforce ICM’s compliance with its registry contract, allowing it to engage in “anticompetitive conduct” and help violate IP rights.
The company is basically miffed that it felt it was being forced to spend money in ICM’s sunrise period, and that it was not allowed to block its trademarks and variations of its trademarks.
One of its oddest claims, which is in the IRP as well as the lawsuit, is that ICM was selected in a “closed process” that did not consider alternative .xxx operators.
The 2004 gTLD round was of course open to any applicant, so there was nothing stopping anybody else from applying for .xxx. One gTLD, .tel, did in fact have multiple bidders.
Essentially, the IRP demand cuts to the heart of the domain name industry and the new gTLD concept in general, challenging many practices that have become norms.
Sunrise
Sunrise is “extortion”, according to Manwin.
As well as being opposed to the idea of paying for defensive registrations in general, Manwin also thinks that typos and brand+keyword domains should be eligible for blocking, presumably for free.
It also believes that porn companies should have been able to defensively block some .xxx domains (which ICM called “Sunrise B”) and register others for active use (“Sunrise A”).
Speculation
Manwin’s IRP says that ICM did not act in the best interests of its sponsored community (ostensibly the porn industry) when it sold premium .xxx domains to “known domain name speculators”.
Well-known domainers Frank Schilling and Mike Berkens have invested millions in .xxx, but Manwin says their profit motives show ICM broke its commitment to serve the adult industry only.
Schilling, who signed up to buy domains 33 domains including amateur.xxx before ICM’s registry contract had even been approved, is reportedly already leasing out some of his .xxx names to porn companies for five figures a month.
New gTLDs
Manwin seems to support what you might call a ‘string first, registry later’ model for delegating gTLDs.
It states in its lawsuit and IRP that ICANN should have opened up .xxx for competitive bidding, apparently ignoring the fact that the .xxx string was proposed by ICM, not ICANN.
In the IRP demand, it suggests that allowing gTLD applicants to select their own strings is in violation of ICANN’s bylaws. The complaint states:

[ICANN] gave ICM a permanent monopoly over the .XXX TLD without considering other candidates for registry operator and without making provision for considering other potential registry operators at the end of the initial term of the .xxx Registry Agreement.

If Manwin wins, ICANN could be forced into a situation where it must ask for string proposals from new gTLD applicants and then open up each proposed string to competitive bidding.
That’s not necessarily a bad idea, but it’s pretty much exactly the opposite of how the ICANN-approved new gTLD program is going to work.
The IRP and the lawsuit are also notable in that they target the alleged lack of economic studies that support .xxx and new gTLDs in general.
It states that ICANN “failed to conduct proper economic studies of the impact of the introduction of new TLDs, including the .xxx TLD”.
This is a frequent criticism leveled at ICANN by opponents such as the Association of National Advertisers and the newly formed Coalition for Responsible Internet Domain Oversight.
Manwin is being represented in the suit and IRP by the law firm Mitchell Silberberg & Knupp, the employer of Steve Metalitz, a well-known figure in ICANN’s intellectual property constituency.

Screen Actors Guild opposes new gTLDs

While it does not appear to be a member of the new Coalition for Responsible Internet Domain Oversight, the Screen Actors Guild has come out in opposition to new top-level domains.
The membership organization, which represents over 200,000 Hollywood actors, has asked US Secretary of Commerce John Bryson to persuade ICANN to delay the gTLD program until it can “demonstrate convincingly” that it will be in the public interest.
SAG national executive director David White wrote:

The ICANN proposal would unduly burden a diverse range of public and private brand holders, companies with whom our members are associated. This also presents an undue burden on our organization, as a globally recognized brand. Under this rule, many brand-holders would be forced to spend ever-greater amounts of time and resources simply to protect their brands.

Like many other opponents of the program, White also raises the conflicts-of-interest question that emerged following Peter Dengate Thrush’s move from ICANN’s chair to new gTLD applicant Minds + Machines.
SAG was not listed as a member of CRIDO, the huge cross-industry lobby group that formed to oppose new gTLDs last week, although its arguments are identical.

Staff changes at new gTLD consultancies

There’s movement in the new top-level domains consultancy market this week, with new hires and departures at a couple of startups.
It’s been a case of one in, one out at Sedari, the registry management services company founded by Liz Williams this summer.
The company has hired Philip Sheppard, most recently director of public affairs for AIM, the European Brands Agency, as its new policy director.
Sheppard is an ICANN veteran from the IP/business side of the house, who has chaired multiple policy committees since becoming involved in 1999.
But Sedari has also lost another industry vet, Jothan Frakes, who’s decided to go freelance.
Elsewhere, FairWinds Partners, which shares management with the Coalition Against Domain Name Abuse, has also emerged publicly as a new gTLD consultancy.
The Washington DC-based company hope to use its track record of criticizing the new gTLD program to win the support of big brands skeptical about the ICANN process.
FairWinds said this week it’s taken on former ICANN director Michael Palage of Pharos Global, who has worked for both proponents and opponents of the program, apparently on a freelance basis.

Europe dislikes US-only IANA rule

The European Commission is disappointed that only US-based companies are eligible to apply to take over ICANN’s IANA contract, but has otherwise welcomed the new deal.
As I reported Friday, the US National Telecommunications and Information Administration has put the IANA contract, which gives ICANN its powers to create new top-level domains, up for rebid.
While ICANN is generally expected to be a shoo-in for the contract, the NTIA tilted the odds in its favor by refusing to consider bids from replacement candidates from outside the US.
The EC said in a statement today:

The Commission believes greater respect should be given by the IANA contractor to respecting applicable law (such as EU personal data protection laws)… In that context, it noted with regret that non-US companies are not allowed to compete for the forthcoming IANA contract.

Otherwise, the EC said it was happy with the new provisions in the IANA contract, which promise to enforce mandatory conflict of interests protections on the winning bidder.
Neelie Kroes, European Commission Vice-President for the Digital Agenda said in a press release:

The new IANA tender is a clear step forward for global internet governance. A more transparent, independent and accountable management of the Internet domain names and other resources will reinforce the Internet’s role as a global resource.

The EC is also pleased that ICANN/IANA “will have to provide specific documentation demonstrating how the underlying decision-making process was supportive of the public interest” when new gTLDs are approved.
How this provision will be implemented, and how much power it gives ICANN’s Governmental Advisory Committee to kill new gTLD applications, is perhaps the biggest question hanging over the contract today.
The current IANA contract expires at the end of March next year, shortly before the end of ICANN’s first new gTLDs application window.

Overstock.com slows down O.co rebranding

Overstock.com is throttling its transition to the O.co brand after discovering consumers typed o.com even after watching the company’s commercials, according to a report.
The company’s $350,000 purchase of and subsequent rebranding around the o.co domain was possibly the single biggest single marketing coup for .CO Internet, the .co registry, to date.
But now it intends to keep the Overstock.com brand in the US for the time being, while using O.co overseas and on a new iPad app, according to a report in AdAge.
The O.co Coliseum, the stadium in Oakland for which Overstock bought the naming rights, will continue to bear the O.co name.
AdAge quoted Overstock president Jonathon Johnson saying that “a good portion” of people viewing its commercials tried to visit o.com, which is a non-resolving registry-reserved name, instead.
“We were going too fast and people were confused, which told us we didn’t do a good job,” he told AdAge. “We’re still focused on getting to O.co, just at a slower pace… We’re not flipping back, we’re just refocusing.”
This is obviously bad news for commercial new top-level domain applicants, many of which will be looking for all-important anchor tenants to validate their brands at launch.
Marketing people like to refer to the measurable results of others before pulling the trigger on new initiatives. The O.co case is unlikely to create enthusiasm for new TLDs.
On the other hand, it’s commonly believed that when it comes to breaking the .com mindset in the US, it will take more than a trickle of new TLDs such as .co. It will take a flood.
.CO Internet has always taken the position that .co adoption will take time, and that the ICANN new gTLD program will help its cause by raising awareness of non-.com domains.