.amazon domain isn’t a slam dunk after all

Amazon’s application for the .amazon dot-brand may not be as secure as it was thought, following an ICANN decision over the Christmas period.
Directors threw out a South American government demand for it to un-approve the .amazon bid, but clarified that ICANN has not yet made a “final decision” to allow the gTLD to go live.
The Board Accountability Mechanisms Committee formally rejected (pdf) a Request for Reconsideration filed by the Amazon Cooperation Treaty Organization, which is made up of the governments of the eight countries near that big foresty, rivery, basiny thing, on December 21.
ACTO had asked the board to overturn its October resolution that took .amazon off its longstanding “Will Not Proceed” (ie, rejected) status and put it back on the path to delegation.
Secretary general Jacqueline Mendoza last month blasted ICANN for multiple “untrue, misleading, unfortunate and biased statements”, in connection with ACTO’s purported acquiescence to the .amazon bid.
Refusing ACTO’s request, the BAMC stated that ACTO had misinterpreted the resolution, and that ICANN did not intend to delegate .amazon until Amazon the company and ACTO had sat down to talk about how they can amicably share the name.
The October resolution “could have been clearer”, the BAMC said, adding:

the Resolution was passed with the intention that further discussions among the parties take place before the Board takes a final decision on the potential delegation of .AMAZON and related top-level domains. The language of the Resolution itself does not approve delegation of .AMAZON or support any particular solution. Rather, the Resolution simply “directs the President and CEO, or his designee(s), to remove the ‘Will Not Proceed’ status and resume processing of the .AMAZON applications.”

There are pages and pages of this kind of clarification. The committee clearly wants to help to smooth over relations between ICANN and the governments.
On the face of it, there’s a slight whiff of ret-conny spin about the BAMC recommendations.
There’s some ambiguity in the public record about what the ICANN board actually voted for in October.
Shortly before the ICANN board voted to resume processing .amazon, CEO Goran Marby stated, in front of an audience at ICANN 63 in Barcelona, both that a decision to delegate was being made and that ACTO was still at the table:

what we in practice has done is, through facilitation process, constructed a shared delegation of .AMAZON where the company has or will provide commitments to the ACTO countries how the .AMAZON will be used in the future. And the decision today is to delegate it, forward it to me to finalize those discussions between the company and those countries.
And I’m also formally saying yes to the invitation to go to Brazil from the ACTO countries to their — finish off the last round of discussions.

While the new clarifications seem to suggest that ACTO still has some power to keep .amazon out of the root, the BAMC decision also suggests that the full board could go ahead and approve .amazon at the ICANN 64 meeting in Japan this March, with or without governmental cooperation, saying:

the BAMC recommends that the Board reiterates that the Resolution was taken with the clear intention to grant the President and CEO the authority to progress the facilitation process between the ACTO member states and the Amazon corporation with the goal of helping the involved parties reach a mutually agreed solution, but in the event they are unable to do so the Board will make a decision on the next steps at ICANN 64 regarding the potential delegation of .AMAZON and related top-level domains. The BAMC encourages a high level of communication between the President and CEO and the relevant stakeholders, including the representatives of the Amazonian countries and the Amazon corporation, between now and ICANN 64.

If you’ve not been following the story, ACTO has concerns about .amazon due to its similarity to the name of the rain-forest region.
Amazon the company has promised to encode cultural safeguards in its ICANN contract and offered to donate a bunch of free stuff to the countries to sweeten the deal
The current Amazon offer has not been published.
The BAMC recommendation will now be considered by the full ICANN board, which is usually just a formality.

ICANN budget predicts small new gTLD recovery and slowing legacy growth

The new gTLD market will improve very slightly over the next year or so, according to ICANN’s latest budget predictions.

The organization is now forecasting that it will see $5.2 million of funding from new gTLD registry transaction fees in the fiscal year ending June 30, 2019, up from the $5.1 million it predicted when it past the FY19 budget in May.

That’s based on expected transactions being 24 million, compared to the previous estimate of 23.9 million.

It’s the first time ICANN has revised its new gTLD transaction revenue estimates upwards in a couple years.

ICANN is also now estimating that FY20 transaction fees from new gTLDs will come in at $5.5 million.

That’s still a few hundred grand less than it was predicting for FY17, back in 2016.

Transaction fees, typically $0.25, are paid by registries with over 50,000 names whenever a domain is created, renewed, or transferred.

The FY19 forecast for new gTLD registrar transaction fees has not been changed from the $4.3 million predicted back in May, but ICANN expects it to increase to $4.6 million in FY20.

ICANN’s budget forecasts are based on activity it’s seeing and conversations with the industry.

It’s previously had to revise new gTLD revenue predictions down in May 2018 and January 2018. 

ICANN is also predicting a bounceback in the number of accredited registrars, an increase of 15 per quarter in FY20 to end the year at 2,564. That would see accreditation fees increase from an estimated $9.9 million to $10.7 million.

The budget is also less than optimistic when it comes to legacy, pre-2012 gTLDs, which includes the likes of .com and .net.

ICANN is now predicting FY19 legacy transaction fees of $49.8 million. That’s compared to its May estimate of $48.6 million.

For FY20, it expects that to go up to $50.5 million, reflecting growth of 2.1%, lower than the 2.6% it predicted last year.

Overall, ICANN expects its funding for FY19 to be $137.1 million, $600,000 less than it was predicting in May.

For FY20, it expects funding to increase to $140.1 million. That’s still lower than the $143 million ICANN had in mind for FY18, before its belt-tightening initiatives kicked off a year ago.

The budget documents are published here for public comment until February 8.

ICANN will also hold a public webinar today at 1700 UTC to discuss the plans. Details of the Adobe Connect room can be found here.

DNS inventor says .luxe first innovation in a decade

DNS inventor Paul Mockapetris has endorsed MMX’s foray into the blockchain as “the first genuine piece of DNS related innovation that I have seen in the last decade”.
The quote came in an MMX press release this morning, which provided an update on the launch of .luxe as the first gTLD that publishes information to the Ethereum blockchain as well as the DNS.
As I attempted to describe a few months ago, .luxe is being sold as an alternative way to address blockchain assets such as cryptocurrency wallets, which currently use nonsense, immemorable 40-character hashes.
MMX has built an API that allows registrars to automatically associate .luxe domains with Ethereum addresses.
The registry said today it now has 11 registrars signed up to use this API, along with 60 more selling vanilla .luxe domains.
In addition to its launch distribution partner, the wallet provider imToken, MMX said it has also signed up Bitxbank, BeeNews, BEPAL, Hillstone Partners, Math Wallet, MTC Mesh Network, Qufen, Fbee, and ChainDD, which all appear to be Asian blockchain software companies.
It expects to announce support for two non-Ethereum blockchains in the first half of next year.
Judging by zone files, .luxe names have not exactly been flying off the shelves since launch.
It had around 2,600 names in its zone file yesterday, having entered general availability about a month ago.
Despite this, CEO Toby Hall said in this morning’s press release that MMX’s initial investment in .luxe (I assume he’s referring to the R&D investment rather than the cost of applying for the gTLD) has already been recouped.

New gTLDs continue growth trend, but can it last?

New gTLDs continued to bounce back following a year-long slump in registration volumes, according to Verisign data.
The company’s latest Domain Name Industry Brief, covering the third quarter, shows new gTLDs growing from 21.8 million names to 23.4 million names, a 1.6 million name increase.
New gTLDs also saw a 1.6 million-name sequential increase in the second quarter, which reversed five quarters of declines.
The sector has yet to surpass its peak of 25.6 million, which it reached in the fourth quarter of 2016.
It think it will take some time to get there, and that we’ll may well see a decline in next couple quarters.
The mid-point of the third quarter marked the end of deep discounting across the former Famous Four Media (now GRS Domains) portfolio (.men, .science, .loan, etc), but the expected downward pressure on volumes wasn’t greatly felt by the end of the period.
With GRS’s portfolio generally on the decline so far in Q4, we might expect it to have a tempering effect on gains elsewhere when the next DNIB is published.
Verisign’s data showed also that ccTLDs shrunk for the first time in a couple years, down by half a million names to 149.3 million. Both .uk and .de suffered six-figure losses.
Its own .net was flat at 14.1 million, showing no signs of recovery after several quarters of shrinkage, while .com increased by two million names to finish September with 137.6 under management.

No .web until 2021 after Afilias files ICANN appeal

Afilias has taken ICANN to arbitration to prevent .web being delegated to Verisign.
The company, which came second in the $135 million auction that Verisign won in 2016, filed Independent Review Process documents in late November.
The upshot of the filing is that .web, considered by many the best potential competitor for .com — Afilias describes it as “crown jewels of the New gTLD Program” — is very probably not going to hit the market for at least a couple more years.
Afilias says in in its filing that:

ICANN is enabling VeriSign to acquire the .WEB gTLD, the next closest competitor to VeriSign’s monopoly, and in so doing has eviscerated one of the central pillars of the New gTLD Program: to introduce and promote competition in the Internet namespace in order to break VeriSign’s monopoly

Its beef is that Verisign acquired the rights to .web by hiding behind a third-party proxy, Nu Dot Co, the shell corporation linked to the co-founders of .CO Internet that appears to have been set up in 2012 purely to make money by losing new gTLD auctions.
Afilias says NDC broke the rules of the new gTLD program by failing to notify ICANN that it had made an agreement with Verisign to sign over its rights to .web in advance of the auction.
The company says that NDC’s “obligation to immediately assign .WEB to VeriSign fundamentally changed the nature of NDC’s application” and that ICANN and the other .web applicants should have been told.
NDC’s application had stated that .web was going to compete with .com, and Verisign’s acquisition of the contract would make that claim false, Afilias says.
This means ICANN broke its bylaws commitment to apply its policies, “neutrally, objectively, and fairly”, Afilias claims.
Allowing Verisign to acquire its most significant potential competitor also breaks ICANN’s commitment to introduce competition to the gTLD market, the company reckons.
It will be up to a three-person panel of retired judges to decide whether these claims holds water.
The IRP filing was not unexpected. I noted that it seemed likely after a court threw out a Donuts lawsuit against ICANN which attempted to overturn the auction result for pretty much the same reasons.
The judge in that case ruled that new gTLD applicants’ covenant not to sue ICANN was valid, largely because alternatives such as IRP are available.
ICANN has a recent track record of performing poorly under IRP scrutiny, but this case is by no means a slam-dunk for Afilias.
ICANN could argue that the .web case was not unique, for starters.
The .blog contention set was won by an affiliate of WordPress maker Automattic under almost identical circumstances earlier in 2016, with Colombian-linked applicant Primer Nivel paying $19 million at private auction, secretly bankrolled by WordPress.
Nobody complained about that outcome, probably because it was a private auction so all the other .blog applicants got an even split of the winning bid.
Afilias wants the .web IRP panel to declare NDC’s bid invalid and award .web to Afilias at its final bid price.
For those champing at the bit to register .web domains, and there are some, the filing means they’ve likely got another couple years to wait.
I’ve never known an IRP to take under a year to complete, from filing to final declaration. We’re likely looking at something closer to 18 months.
Even after the declaration, we’d be looking at more months for ICANN’s board to figure out how to implement the decision, and more months still for the implementation itself.
Barring further appeals, I’d say it’s very unlikely .web will start being sold until 2021 at the very earliest, assuming the winning registry is actually motivated to bring it to market as quickly as possible.
The IRP is no skin off Verisign’s nose, of course. Its acquisition of .web was, in my opinion, more about restricting competition than expanding its revenue streams, so a delay simply plays into its hands.

Amazon countries fighting back against .amazon gTLD

When ICANN’s board of directors voted in late October to let Amazon have its controversial .amazon gTLD, it was not entirely clear what governments in the Amazon region of South America thought about it.
Now, it is: they’re pissed.
The governments of the Amazon Cooperation Treaty Organization have cancelled planned peace talks with the retailer and ICANN boss Goran Marby and have filed an appeal against the board’s decision.
It even seems that the negotiations — aimed at obtaining ACTO’s blessing by stuffing the .amazon registry agreement with cultural safeguards and augmenting it with financial sweeteners — may be dead before they even started.
The rapid deterioration of the relationship between ACTO and ICANN plays out in a series of letters between Marby and ACTO secretary general Jacqueline Mendoza, published last week by ICANN.
After the board’s October 25 resolution, which gave .amazon a pardon from its longstanding “Will Not Proceed” death sentence, it took just 10 days for ACTO to file a Request for Reconsideration with ICANN, asking the board to rethink its resolution.
In a cover letter to the November 5 request, Mendoza said that ACTO was still happy to have Marby facilitate talks between the governments and Amazon, “to develop a mutually acceptable solution for the delegation” of .amazon.
Amazon is said to have offered concessions such as the protection of culturally sensitive names, along with $5 million worth of free Kindles, in order to get ACTO to back down.
But the governments had yet to see any proposal from Amazon for them to consider, Mendoza wrote a month ago.
At some point Marby then agreed to meet with the ACTO governments — Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname and Venezuela — in Bolivia on November 29.
He froze their reconsideration request pending this meeting, according to his November 20 letter (pdf), which also bulletted out the sequence of events that led to the ICANN resolution.
It seems ICANN has been working rather closely with, and had been hearing encouraging noises from, Brazil’s Governmental Advisory Committee representative, over the last 12 months. Indeed, it seems it was Brazil that said the reconsideration should be put on hold, pending the November 29 meeting.
But on November 22, Mendoza cancelled the summit (pdf), taking a hard line against the unfreezing of the applications.
Four days later, she told Marby and ICANN chair Cherine Chalaby that ICANN should be dealing with ACTO, not its individual members.
She said that a “positive reaction” to the reconsideration request and the request for the board resolution to be “cancelled” are “indispensable pre-requisites for such a meeting to take place”.
The short version: ICANN jumped the gun when it unfroze the .amazon gTLD applications, at least in ACTO’s view.
ACTO didn’t even receive Amazon’s latest proposal until November 23, the day after the talks were cancelled, according to ICANN.
And, judging by the latest missive in this infuriating thread, ICANN may have thrown in the towel already.
Marby informed GAC chair Manal Ismail (pdf) last Wednesday that the “facilitation process” ICANN had resolved to lead “has been unsuccessful” and “has not been able to reach its desired conclusion.”
While he added ICANN remains “open to assist and facilitate this matter, should it be considered useful”, there’s otherwise an air of finality about the choice of language in his letter.
As for the reconsideration request (pdf), it seems to be still active, so there’s a chance for the board to change its mind about .amazon’s status.
It will be interesting to see whether the request will be approved by the board for the sake of political expediency.
Reconsideration requests are almost unfailingly tossed out for failing to reach the threshold of providing the board with information it was not aware of at the time of its contested resolution.
In this case, ACTO claims that the board was wrongly informed that the ACTO members had seen and liked Amazon’s latest proposal, presumably because ICANN had been feeling positive vibes from Brazil.
It’s not impossible that the board might agree this is true, put .amazon back on ice, and try again at the “facilitation” route.
But should it? Part of me wonders why the hell ICANN resources — that is, registrants’ money — should be diverted to pay for ICANN to act as an unpaid lobbyist for one of the world’s wealthiest companies, which can’t seem to actually put a proposal on the table in a timely fashion, or for eight national governments who don’t seem to be even talking to each other on an issue they claim is of the utmost importance.

.cloud gets the China blessing

.cloud, run by Italian registry Aruba, has become the latest TLD to get the official nod to sell in China.
The blessing from the Ministry of Industry and Information Technology came at the end of October and the company announced it today.
The accreditation means .cloud domains sold to residents of the Chinese mainland will now be resolvable, and subject to China’s onerous censorship rules.
It’s the first Latin-script TLD to be approved by MIIT since July.
.cloud says it currently has 155,000 domains registered to customers in 180 countries.

Donuts backs away from .spa fight

Donuts has finally admitted defeat in its long-running fight to run the .spa gTLD, withdrawing its application and leaving rival Asia Spa and Wellness Promotion Council the victor.
ASWPC, run from Hong Kong by .asia’s Edmon Chung, has now entered into contracting with ICANN.
The company had won a Community Priority Evaluation back in 2015, with a passing score of 14 out of 16, which Donuts has been challenging ever since.
Donuts and ICANN were in a so-called Cooperative Engagement Process, a form of informal arbitration designed to stave off a more expensive Independent Review Process fight, from January 2016 until this month.
This meant ASWPC has been sitting twiddling its thumbs, unable to sign its contract or launch its TLD, for the better part of three years.
It’s not clear why Donuts decided not to go to a full-blown IRP. The company declined to comment for this article.
As a community applicant, the company had the backing of hundreds of spas worldwide.
It also had the backing of the Belgian government, which was important because spas are (little-known fact alert!) named after the tiny Belgian town of Spa.
It is believed that ASWPC promised up to 25% of its profits to Spa in order to gain this backing, but only from domains registered by Belgian, Dutch, Luxembourgish, French or German registrants.

Hebrew .com off to a slow start

The Hebrew transliteration of .com has only sold a couple hundred domains since it went into general availability.
Verisign took the new gTLD קום. (Hebrew is a right-to-left script, so the dot comes after the string) to market November 5, when it had about 3,200 domains in its zone file. It now stands around the 3,400 mark.
The pre-GA domains are a combination of a few hundred sunrise regs and a few thousand exact-match .coms that were grandfathered in during a special registration period.
It’s not a stellar performance out of the gates, but Hebrew is not a widely-spoken language and most of its speakers are also very familiar with the Latin script.
There are between seven and nine million Hebrew speakers in the world, according to Wikipedia. It doesn’t make the top 100 languages in the world.
The ccTLD for Israel, where most of these speakers live, reports that it currently has 246,795 .il domains under management. That’s a middling amount when compared to similarly sized countries such as Serbia (about 100,000 names) and Switzerland (over 2 million).
Verisign’s original application for this transliteration had to be corrected, from קום. to קוֹם. If you can tell the difference, you have better eyesight than me.
In the root, the gTLD is Punycoded as .xn--9dbq2a.

Bad.monster? Two more gTLDs have been acquired

Two more new gTLDs have changed hands, DI has learned.
XYZ.com has picked up former dot-brand .monster from recruitment web site Monster.com, while newbie registry Intercap Holdings has acquired .dealer from Dealer.com.
Both ICANN contracts were reassigned last month.
Neither acquiring company has announced their purchases or published their launch plans yet.
That said, XYZ has already registered a few intriguing domains: bad.monster, good.monster, my.monster and go.monster.
It appears that go.monster — slogan: “It’s Alive!” — will be the registry’s launch site. It’s the only one I could get to resolve.
It’s the second example I can think of of a dot-brand gTLD being acquired by a registry that intends to run it as a generic.
In 2016, Top Level Spectrum acquired .observer from the newspaper of the same name.
Most dot-brands that don’t want their TLDs any more choose to retire them. That number is up to 45 now.
.dealer wasn’t technically a dot-brand — it had no Spec 13 in its contract — but its 2012 application certainly made it look like a dot-brand, with most of the domains reserved for Dealer.com and its affiliates. It looked defensive.
Shayam Rostam, chief registry officer of ICH, told me the plan for .dealer is to primarily target car dealers (also its former owner’s market) but that it will be unrestricted and open to all comers.
Intercap wants to get its January launch of .inc out of the way before turning its attention to .dealer, so we’re probably looking at mid-late 2019 for a launch, Rostam said.
It also needs to do some housekeeping such as moving the TLD to Uniregistry’s back-end.
What do y’all think about these TLDs? Could .monster be the next .guru? Could .dealer find a home in the burgeoning legal cannabis market? Comment below!