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Another dot-brand bites the dust

Kevin Murphy, March 21, 2019, Domain Registries

Honeywell International, a $40-billion-a-year US conglomerate, has become the last major company to dump its dot-brand gTLD.
The company informed ICANN in February that it no longer wishes to run .honeywell, and ICANN yesterday published its preliminary decision not to transition the TLD to a new owner.
Honeywell never used .honeywell, which has been in the DNS root since June 2016, beyond the contractually mandated placeholder at nic.honeywell.
It becomes the 46th new gTLD registry to request a termination since 2015. Almost all have been dot-brands.
The company’s request is open for public comment until April 14. To date, there have been no public comments on any voluntary registry termination.
Honeywell is involved in the aerospace, building and consumer goods sectors. It has 130,000 employees and reported revenue of $40.5 billion for 2018.
It’s the first new gTLD termination request of 2019.

UDRP complaints hit new high at WIPO

Kevin Murphy, March 19, 2019, Domain Policy

The World Intellectual Property Organization handled 3,447 UDRP cases in 2018, a new high for the 20-year-old anti-cybersquatting policy.
The filings represent an increase of over 12% compared to the 3,074 UDRP cases filed with WIPO in 2017. There were 3,036 cases in 2016
But the number of unique domains complained about decreased over the same period, from 6,370 in 2017 to 5,655 domains in 2018, WIPO said today.
The numbers cover only cases handled by WIPO, which is one of several UDRP providers. They may represent increases or decreases in cybersquatting, or simply WIPO’s market share fluctuating.
The numbers seem to indicate that the new policy of redacting Whois information due to GDPR, which came into effect mid-year, has had little impact on trademark owners’ ability to file UDRP claims.
UPDATE: This post was updated a few hours after publication to remove references to the respective shares of the UDRP caseload of .com compared to new gTLDs. WIPO appears to have published some wonky math, as OnlineDomain noticed.

ICANN plays tough over Amazon dot-brands

Kevin Murphy, March 12, 2019, Domain Policy

ICANN has given Amazon and the governments of the Amazon Cooperation Treaty Organization less than a month to sort out their long-running dispute over the .amazon gTLD.
The organization’s board of directors voted on Sunday to give ACTO and the e-commerce leviathan until April 7 to get their shit together or risk not getting what they want.
But both parties are going to have to come to an agreement without ICANN’s help, with the board noting that it “does not think that any further facilitation efforts by ICANN org will be fruitful”.
Attempts by ICANN to meet with ACTO over the last several months have been agreed to and then cancelled by ACTO on at least two separate occasions.
The eight ACTO governments think the string “Amazon” more rightfully belongs to them, due to it being the English name for the rain forest region they share.
Amazon the company has promised to safeguard culturally sensitive terms in .amazon, to assist with future efforts to secure .amazonas or similar for the Amazonian peoples, and to donate services and devices to the nations concerned.
Now, the two parties are going to have to bilaterally decide whether this deal is enough, whether it should be sweetened or rejected outright.
If they can’t come to a deal by ICANN’s deadline (which could be extended if Amazon and ACTO both ask for more time), ICANN will base its decision on whether to approve .amazon based on how Amazon unilaterally proposes to address ACTO’s concerns.
While a rejection of the .amazon application is still on the table, my read is that this is a bigger win for Amazon than it is for ACTO.

Radix sees revenue up 30%

Kevin Murphy, March 12, 2019, Domain Registries

New gTLD registry Radix said today that its revenue increased by 30% in 2018, largely due to an end-of-year boost.
The company, which runs nine gTLDs including .online and .site, said that gross revenue was $16.95 million last year.
It added that net profit was up 45.6%, but the privately held company does not actually disclose the dollar value of its bottom line.
Radix said that the fourth quarter of the year, which presumably saw the benefits of Operation September Thrust, was its strongest quarter.
The company said that 27% of its revenue came from standard-price new registrations and 60% from renewals.
Its premiums brought in $1.9 million, 56% of which were premium renewals.

Donuts founder replaces Pitts as MMX’s premium guru

MMX has hired one of Donuts’ recently departed co-founders to market its premium domain name inventory, the company said today.
Dan Schindler, formerly Donuts’ executive VP, has been hired as a “special advisor”, tasked with “monetizing” premiums in the US and Europe.
He appears to be functionally replacing Victor Pitts, who was hired as director of premium sales two years ago. Pitts appears to have left the company in January.
MMX, which counts .vip, .law and .luxe among its stable of 32 gTLDs, expects to report premium sales for 2018 of around $2.3 million.
The company has also hired domain consultant Christa Taylor, founder and CEO of dottba, as its new chief marketing officer, a newly created position.
News of the appointments was released as MMX published another preliminary trading update ahead of its final 2018 financial results next month.
Here are some more nuggets from the announcement:

  • Total domain registrations so far in 2019 up 38% to 1.84 million compared to a year ago.
  • Billings up 129% year-on-year due to contributions from ICM Registry and a 40% increase in sales of .vip and .luxe domains in China.
  • ICM’s porn-themed domains are renewing at 91%.
  • Integration of .luxe into two more blockchain platforms — NameCoin and XAYA — is underway.

MMX expects to announce its full-year results April 3.

Phishing still on the decline, despite Whois privacy

Kevin Murphy, March 5, 2019, Domain Policy

The number of detected phishing attacks almost halved last year, despite the fact that new Whois privacy rules have made it cheaper for attackers to hide their identities.
There were 138,328 attacks in the fourth quarter of 2018, according to the Anti-Phishing Working Group, down from 151,014 in Q3, 233,040 in Q2, and 263,538 in Q1.
That’s a huge decline from the start of the year, which does not seem to have been slowed up by the introduction in May of the General Data Protection Regulation and ICANN’s Temp Spec, which together force the redaction of most personal data from public Whois records.
The findings could be used by privacy advocates to demonstrate that Whois redaction has not lead to an increase in cybercrime, as their opponents had predicted.
But the data may be slightly misleading.
APWG notes that it can only count the attacks it can find, and that phishers are becoming increasingly sophisticated in how they attempt to avoid detection. The group said in a press release:

There is growing concern that the decline may be due to under-detection. The detection and documentation of some phishing URLs has been complicated by phishers obfuscating phishing URLs with techniques such as Web-spider deflection schemes – and by employing multiple redirects in spam-based phishing campaigns, which take users (and automated detectors) from an email lure through multiple URLs on multiple domains before depositing the potential victim at the actual phishing site.

It also speculates that criminals once involved in phishing may have moved on to “more specialized and lucrative forms of e-crime”.
The Q4 report (pdf) also breaks down phishing attacks by TLD, though comparisons here are difficult because APWG doesn’t always release this data.
The group found .com to still have the most phishing domains — 2,098 of the 4,485 unique domains used in attacks, or about 47%. According to Verisign’s own data, .com only has 40% market share of total registered domains.
But new, 2012-round gTLDs had phishing levels below their market share — 4.95% of phishing on a 6.83% share. This is actually up compared to the 3% recorded by APWG in Q3 2017, the most recent available data I could find.
Only two of the top 20 most-abused TLDs were new gTLDs — .xyz and .online, which had just 70 attack domains between them. That’s good news for .xyz, which in its early days saw 10 times as much phishing abuse.
After .com, the most-abused TLD was .pw, the ccTLD for Palau run by Radix as an unrestricted pseudo-gTLD. It had 374 attack domains in Q4, APWG said.
Other ccTLDs with relatively high numbers included several African zones run as freebies by Freenom, as well as the United Kingdom’s .uk and Brazil’s .br.
Phishing is only one form of cybercrime, of course, and ICANN’s own data shows that when you take into account spam, new gTLDs are actually hugely over-represented.
According to ICANN’s inaugural Domain Abuse Activity Reporting report (pdf), which covers January, over half of cybercrime domains are in the new gTLDs.
That’s almost entirely due to spam. One in 10 of the threats ICANN analyzed were spam, as identified by the likes of SpamHaus and SURBL. DAAR does not include ccTLD data.
The takeaway here appears to be that spammers love new gTLDs, but phishers are far less keen.
ICANN did not break down which gTLDs were the biggest offenders, but it did say that 52% of threats found in new gTLDs were found in just 10 new gTLDs.
This reluctance to name and shame the worst offenders prompted one APWG director, former ICANN senior security technologist Dave Piscitello, to harshly criticize his former employer in a personal blog post last month.

Scottish registry dumps the pound over Brexit fears

The .scot gTLD registry has decided to dump the British pound as its currency of choice, due to fears over Brexit.
DotScot’s back-end, CORE, told registrars this week that it will start billing in euros from March 29.
The switch is being made due to “the expected volatility in currency exchange rates between GBP and other main currencies post-Brexit”.
March 29 is currently enshrined in UK law as the date we will formally leave the European Union, though the interminable political machinations at Westminster are making it appear decreasingly unlikely that this date could be extended.
CORE said that the prices for .scot registrations, renewals and transfers will be set at €1.14 for each £1 it currently charges. That’s the average exchange rate over the last 12 months, registrars were told.
.scot is a geographic gTLD, rather than a ccTLD, which was approved in ICANN’s 2012 application round. It has about 11,000 domains under management.
Its largest registrar, 1&1 Ionos (part of Germany’s United Internet), charges £40 a year.
Only 38% of Scots voted in favor of Brexit back in 2016, the lowest of any of the UK’s four nations, with no region of Scotland voting “Leave”.
Naturally, a great many Scots believe they’re being dragged out of the EU kicking and screaming by their ignorant, English-bastard neighbors. Which strikes me as a fair point.

.film gTLD sees spike after dropping restrictions

Kevin Murphy, February 27, 2019, Domain Registries

The .film gTLD saw a small spike in registrations this week after dropping eligibility requirements.
The Australia-based registry, Motion Picture Domain Registry, went fully unrestricted February 22 and immediately saw at least 100 new names in its zone file.
It’s a small increase, but it meant .film, which sells for roughly $70 (101domain) to $120 (GoDaddy, its biggest channel) a year, topped 4,000 names for the first time.
It has not seen seen any additional growth since the weekend, however.
.film, from its 2015 launch, was restricted to registrants that could show a nexus to the film industry and was touted as an anti-piracy measure.
It does not appear to have been particularly well-policed, however. Its most popular domains (per Alexa rank) appear today to be piracy sites.
Despite the old restrictions, and despite being more than twice the price, .film has so far actually proved more popular than Donuts’ .movie gTLD, which has been wobbling around the 2,000 to 3,000 domain mark for the last couple of years.
I expect this is probably due to the fact that the word “film” means the same thing in many languages, whereas “movie” is a distinctly American English term.

Yanks beat Aussies to accountancy gTLD

Kevin Murphy, February 20, 2019, Domain Registries

The contention set for .cpa has been resolved, clearing the way for a new accountancy-themed gTLD.
The winner is the American Institute of Certified Public Accountants, which submitted two bids for the string — one “community”, one vanilla, both overtly defensive in nature — back in 2012.
Its main rival, CPA Australia, which also applied on a community basis, withdrew its application two weeks ago.
Commercial registries Google, MMX and Donuts all have withdrawn their applications since late December, leaving only the two AICPA applications remaining.
This week, AICPA withdrew its community application, leaving its regular “single registrant” bid the winner.
AICPA is the US professional standards body for accountants, CPA Australia is the equivalent organization in Australia. ACIPA has 418,000 members, CPA Australia has 150,000.
Both groups failed their Community Priority Evaluations back in 2015 on the basis that their communities were tightly restricted to their own membership, and therefore too restrictive.
AICPA later amended its community application to permit CPAs belonging to non-US trade groups to register.
Both organizations were caught up in the CPE review that also entangled and delayed the likes of .music and .gay. They’ve also both appealed to ICANN with multiple Requests for Reconsideration and Cooperative Engagement Process engagements.
CPA Australia evidently threw in the towel after a December 14 resolution of ICANN’s Board Accountability Mechanisms Committee decision to throw out its latest RfR. It quit its CEP January 9.
It’s likely a private resolution of the set, perhaps an auction, occurred in December.
The winning application from AICPA states fairly unambiguously that the body has little appetite for actually running .cpa as a gTLD:

The main reasons for which AICPA submits this application for the .cpa gTLD is that it wants to prevent third parties from securing the TLD that is identical to AICPA’s highly distinctive and reputable trademark

So don’t get too excited if you’re an accountant champing at the bit for a .cpa domain. It’s going to be an unbelievably restrictive TLD, according to the application, with AICPA likely owning all the domains for years after delegation.

The internet is about to get a lot gayer

Kevin Murphy, February 20, 2019, Domain Registries

Seven years after four companies applied for the .gay top-level domain, we finally have a winner.
Three applicants, including the community-driven bid that has been fighting ICANN for exclusive recognition for years, this week withdrew their applications, leaving Top Level Design the prevailing bidder.
Top Level Design is the Portland, Oregon registry that already runs .ink, .design and .wiki.
The withdrawing applicants are fellow portfolio registries Donuts and MMX, and community applicant dotgay LLC, which had been the main holdout preventing the contention set being resolved.
I do not yet know how the settlement was reached, but it smells very much like a private auction.
As a contention set only goes to auction with consent of all the applicants, it seems rather like it came about after dotgay finally threw in the towel.
dotgay was the only applicant to apply as a formal “community”, a special class of applicant under ICANN rules that gives a no-auction path to delegation if a rigorous set of tests can be surmounted.
Under dotgay’s plan, registrants would have to have been verified gay or gay-friendly before they could register a .gay domain, which never sat right with me.
The other applicants, Top Level Design included, all proposed open, unrestricted TLDs.
dotgay, which had huge amounts of support from gay rights groups, failed its Community Priority Evaluation in late 2014. The panel of Economist Intelligence Unit experts awarded it 10 out the 16 available points, short of the 14-point prevailing threshold.
Basically, the EIU said dotgay’s applicant wasn’t gay enough, largely because its definition of “gay” was considered overly broad, comprising the entire LGBTQIA+ community, including non-gay people.
After dotgay appealed, ICANN a few months later overturned the CPE ruling on a technicality.
A rerun of the CPE in October 2015 led to dotgay’s bid being awarded exactly the same failing score as a year earlier, leading to more dotgay appeals.
The .gay set was also held up by an ICANN investigation into the fairness of the CPE process as carried out by the EIU, which unsurprisingly found that everything was just hunky-dory.
The company in 2016 tried crowdfunding to raise $360,000 to fund its appeal, but after a few weeks had raised little more than a hundred bucks.
Since October 2017, dotgay has been in ICANN’s Cooperative Engagement Process, a form of negotiation designed to avert a formal, expensive, Independent Review Process appeal, and the contention set had been on hold.
The company evidently decided it made more sense to cut its losses by submitting to an auction it had little chance of winning, rather than spend six or seven figures on a lengthy IRP in which it had no guarantee of prevailing.
Top Level Design, in its application, says it wants to create “the most safe, secure, and prideful .gay TLD possible” and that it is largely targeting “gay and queer people as well as those individuals that are involved in supporting gay cultures, such as advocacy, outreach, and civil rights.”
But, let’s face it, there’s going to be a hell of a lot of porn in there too.
There’s no mention in the winning bid of any specific policies to counter the abuse, such as cyberbullying or overt homophobia, that .gay is very likely to attract.
Top Level Design is likely to take .gay to launch in the back end of the year.
The settlement of the contention set is also good news for two publicly traded London companies.
MMX presumably stands to get a one-off revenue boost (I’m guessing in seven figures) from losing another auction, while CentralNic, Top Level Design’s chosen back-end registry provider, will see the benefits on an ongoing basis.