NetSol’s free .xyz bundle renews at $57

Network Solutions is charging a total of $57.17 for renewing the .xyz domain names and associated services it gave away for free as part of .xyz’s controversial launch last year.
A little over a year ago, NetSol found controversy when it pushed hundreds of thousands of .xyz domain names into its customers’ accounts without their explicit consent.
The offer, which required customers to opt out if they didn’t want it, included a year of private registration and a year of email.
The move allowed XYZ.com, the .xyz registry, to report itself as the largest new gTLD registry.
It’s been the subject of some speculation how renewals would be treated by NetSol, but now we know.
Customers, at least in cases reported by DI readers, are being sent renewal notices for their .xyz bundles in the same mailshots as for their .com domains.
Clicking the “Renew” button in these emails takes registrants to a NetSol page on which they can select which of their products they would like to renew.
All, including the .xyz products, are pre-selected for renewal but may be deselected.
Pricing is set at $15.99 for the .xyz domain, $15.99 for the private registration and $25.19 for the email service. That’s a total of $57.17.
Here’s a screenshot of the shopping cart with the pricing (I’ve redacted the domain). Click to enlarge.

The original email sent by NetSol to customers last June, said:

We want to show you how much we appreciate your loyalty by rewarding you with complimentary access to a 1-year registration of a .XYZ domain, one of the hottest new domain extensions. .XYZ domains are proving to have broad appeal and also be extremely memorable. In addition to your complimentary domain, you’ll also receive Professional Email and Private Registration for your .XYZ domain – free of charge.
…
If you choose not to keep this domain no action is needed and you will not be charged any fees in the future. Should you decide to keep the domain after your complementary first year, simply renew it like any other domain in your account.

The fine print read:

Offer applies to first year of new registrations only. The offer is not transferable and is only available to the recipient. After the complimentary first year the .XYZ domain name and its related services shall expire unless you actively renew the .XYZ domain name and its related services at the then-current rates.
Please note that your use of this .XYZ domain name and/or your refusal to decline the domain shall indicate acceptance of the domain into your account, your continued acceptance of our Service Agreement located online at http://www.networksolutions.com/legal/static-service-agreement.jsp, and its application to the domain.

There’s concern from some registrants that customers may renew their .xyz services without really understanding how they ended up in their account in the first place.
.xyz currently has over 857,000 domains in its zone file.
XYZ.com CEO Daniel Negari was recently quoted as saying that roughly 500,000 of those were not freebies.
The company is being sued by .com registry Verisign for using its reg numbers in “false advertising” that seeks to compare .xyz to .com.

ICANN in “fact-finding” mode over potential .sucks breach

ICANN is playing its cards close to its chest when pressed on what it thinks Vox Populi may have done wrong with its .sucks launch pricing and policies.
The organization told DI in a statement that it is currently “fact-finding”, and will not speculate on what parts of the Registry Agreement may have been breached.
ICANN on Thursday reported Vox Pop to the US and Canadian trade regulators, asking them to judge whether the registry’s $2,000 sunrise fee broke any laws.
Its Intellectual Property Constituency reckons the launch, which also places thousands of trademarks on permanent, high-priced “Sunrise Premium” list amounts to nothing more than a “shakedown” of brand owners.
Vox Pop CEO John Berard told DI last week that the referral to the US Federal Trade Commission, despite that fact that the company and its owners are Canadian, amounted to “appeasement” of the IPC.
In response, ICANN told DI in a statement:

The registry is offering domain name registrations to registrants located in jurisdictions around the world. It¹s possible that a registry’s activities could violate the law in the registry’s own jurisdiction; it is also possible that a registry’s activities could violate the law in the jurisdiction of a registrar or registrant where the registry offers domain name registrations. In this case, the IPC letter was signed by an attorney based in New York City, and ICANN thought it appropriate to ask both U.S. and Canadian authorities to consider the IPC allegations.

ICANN seems to be saying on the one hand that registries are beholden to the laws of wherever their registrants are based and on the other hand that the jurisdiction of the IPC’s current president, Greg Shatan, somehow has a bearing on what laws gTLD registries are obliged to obey.
I await correction from more knowledgeable readers, but I don’t think either of those statements is accurate.
If the latter is true, then perhaps the IPC should in future elect its leaders from only the countries with the most trademark-friendly regimes.
In ICANN’s letters to the FTC and IPC, the organization said it was “evaluating other remedies”. From the context, it seems that ICANN is thinking it could initiate some kind of compliance action against .sucks regardless of the what governmental regulators say.
Asked to explain this, ICANN told DI:

We¹re currently doing some fact-finding and analysis to assess whether there has been any breach by the registry of its obligations, and, based on the results of that analysis, we will try to determine what remedies, if any, may be available. Obviously, it will depend on all the facts and circumstances. Beyond that, since we haven¹t finished that evaluation process it would be inappropriate to speculate about possible remedies.

That’s not saying much, but it leaves the door open for ICANN Compliance to do something even if the FTC and Office of Consumer Affairs deem that no laws have been broken.
One possible “breach” that has been floated relates to the differential pricing created by the Sunrise Premium list. However, my take on this is that, under the new gTLD contracts, it’s not massively different to other kinds of premium pricing program.
Differential pricing protections only apply to renewal fees. If the registrant is told at the point of sale that their renewal fees will be high, that enables registries to put different fees on different domains.
There have also been theories put forward about ICANN’s motivation for referring .sucks to regulators.
The idea that ICANN can defer to the FTC and others on legal matter is not entirely new. In cases where registries intend to merge, ICANN is allowed under its contracts to refer the deals to regulators before approving them.
But this is the first time ICANN has referred new gTLD pricing to competition authorities.
Is it a case of ICANN ass-covering?
ICANN is taking unique fees worth up to $1 million extra from Vox Populi and, as I wrote two weeks ago, the optics of this are bad for ICANN, which could look like it is profiteering from .sucks.
ICANN has explained that the extra fees related to entities that were owned by Vox Pop parent Momentous, the Canadian registrar that had many subsidiaries go out of business owing ICANN a tonne of cash.
By punting the IPC’s complaint to regulators, ICANN could deflect criticism that it is not doing enough to protect rights holders and registrants while avoiding having to make a tricky decision itself.
Regardless, the FTC referral and the fact that ICANN is charging Vox Pop special fees sends a strong message that ICANN does not trust the registry one bit.

ICANN reports .sucks to the FTC over “predatory” pricing

ICANN has referred .sucks registry Vox Populi to the US Federal Trade Commission over concerns from intellectual property owners that its pricing is “predatory”.
The organization has asked the FTC and the Canadian Office of Consumer Affairs to determine whether Vox Pop is breaking any laws.
It asks both agencies to “consider assessing and determining whether Vox Populi is violating any laws or regulations enforced by your respective offices”.
If it is determined that laws are being broken, ICANN said it would be able to “enforce remedies” in the .sucks registry agreement.
ICANN goes on to say that it is “evaluating other remedies” in the registry’s contract.
The shock news comes two weeks after the Intellectual Property Constituency of ICANN complained that Vox Pop’s $2,000 sunrise fee is just a “shakedown scheme”.
The IPC said March 27 it was:

formally asking ICANN to halt the rollout of the .SUCKS new gTLD operated by Vox Populi Registry Inc. (“Vox Populi”), so that the community can examine the validity of Vox Populi’s recently announced plans to: (1) to categorize TMCH-registered marks as “premium names,” (2) charge exorbitant sums to brand owners who seek to secure a registration in .SUCKS, and (3) conspire with an (alleged) third party to “subsidize” a complaint site should brand owners fail to cooperate in Vox Populi’s shakedown scheme.

The IPC is also pissed off that there’s a Sunrise Premium fee that applies to the most famous brands, regardless of when they register.
Vox Pop CEO John Berard told DI tonight that the company’s pricing and policies are “well within the rules”, meaning both ICANN’s rules and North American laws.
He asked why ICANN has referred the matter to the FTC, given that Vox Populi is a Canadian company.
He said that a senior ICANN executive had told him it was because many IPC members are US-based. He described this as “appeasement” of the IPC interests.
Greg Shatan, president of the IPC, whose letter sparked ICANN’s outreach to the FTC and OCA, said that the word “justice” is more appropriate than “appeasement”. He told DI tonight:

We’re looking forward to the FTC and OCA taking a look at Vox Populi’s behavior. And there’s lots to look at. The punitive TMCH Sunrise, where a “rights protection mechanism” intended to protect trademark owners has been turned into a scheme to extort $2,500 and up… The eternal Sunrise Premium of the far-from-spotless .SUCKS registry. The mysterious “everybody.sucks” — purportedly a third party, purportedly providing a “subsidy” to registrant — would anyone be surprised if that was a sham?

With reference to the FTC referral, Shatan also told DI tonight:

I don’t think ICANN wants to waste the FTC’s time. It’s far more rational to think that ICANN informed the FTC because Vox Populi’s activities are within the jurisdiction of the FTC. Mr. Berard’s remarks seem to indicate that he believes that Vox Populi operates beyond the reach of US laws.
With a tech contact in Bermuda and an admin contact in the Caymans, that may have been Vox Pop’s intention. Vox Pop may be operating outside US laws, but I doubt they are operating beyond their reach.

Vox Populi is incorporated in Canada, hence ICANN’s outreach to the Canadian regulator. According to its gTLD application, its only 15%+ owner is Momentous, another Canadian company.
But its IANA record lists an address in Bermuda for its technical contact and Uniregistry’s office in Grand Cayman as its administrative address.
There’s been rumors for months that Uniregistry or CEO Frank Schilling helped bankroll Vox Populi’s participation in the .sucks auction, which saw it splash out over $3 million.
ICANN is asking the US and Canadian agencies to respond to its letter with “urgency”, as .sucks is currently in sunrise and is due to go to general availability May 29.
Trademark owners and celebrities are already registering their names in the .sucks sunrise period.
ICANN confirmed in a separate letter today to IPC chair Greg Shatan that Vox Pop has paid ICANN a unique $100,000 start-up fee, and has promised to pay an extra $1 per transaction, due to now-defunct Momentous subsidiaries defaulting on “substantial payments”.
As DI reported last week, ICANN says that the fee is “not related to the nature” of .sucks, but it could give the appearance that ICANN is a beneficiary of the .sucks business model.
This article was published quite quickly after the news broke. It was updated several times on April 9, 2015. It was updated with background material. It was then updated with comments from Vox Pop. It was then updated with comments from the IPC. Later commenters had the benefit of reading earlier versions of this post before they submitted their comments.

Lady Gaga dumps .org for freebie new gTLD

With all the recent headlines about celebrities who feel compelled to protect their personal brands in .porn and .sucks, it’s worth noting that celebs also find new gTLDs useful.
Lady Gaga has re-domained her Born This Way Foundation non-profit, dumping a .org for a domain in the new gTLD .foundation.
The old bornthiswayfoundation.org, which still tops Google searches for the organization, now redirects to bornthisway.foundation.
The domain was registered April 1.
Donuts tell me the foundation is not paying for the domain, but declined to comment on whether the registration was as a result of some kind of registry marketing.
Born This Way Foundation was set up by pop singer Lady Gaga at the .org address in 2012.
I’d like to tell you what the foundation does, but unfortunately its web site contains nothing but impenetrable PR waffle.
Something to do with “supporting the wellness of young people and empowering them to create a kinder and braver world” and “shining a light on real people, quality research, and authentic partnerships”.
Nevertheless, it’s associated with Lady Gaga, who is just about as high-profile a celebrity as they get.
It’s a potential awareness-raiser for a gTLD with about 5,200 registered names.

AIDS.sucks at $1.5 million and other .sucks premium weirdness

The new .sucks gTLD has some interesting pricing for its reserved premium names. Notably aids.sucks, which currently carries a $1.5 million first-year fee at one registrar.
As far as I can tell, 101domain is the only registrar that is currently publishing its prices for .sucks premium names.
I had a bit of a play around with its web site, to see if I could discover which strings the registry has flagged as premium and which appear to be blocked by the registry.
aids.sucks was the most expensive domain I found, by some margin, at $1.5 million.
The presumably puts it within the pocketbook of, say, a pharmaceuticals company, but probably not a support group.
101domain confirmed that the published price was not an error and is based on the registry’s pricing, but said it was considering lowering it.
That price, and all the other prices cited in this article, are retail prices that would include the registrar’s mark-up.
The next-highest price I could find was $450,000 for sex.sucks.
The string “sex” is usually highly priced on registries’ reserved lists. It’s a slightly different story for .sucks, however, because registry policy states that all pornography is banned. The registrant would have to find a different use.
porn.sucks does not appear to carry a premium fee.
I could not find any other physical diseases carrying premium fees, and it seems that cancer.sucks is not available to register.
However, anxiety.sucks is $4,500, depression.sucks is $12,000, and suicide.sucks is available for $16,500.
It’s worth noting at this point that .sucks is not alone in putting premium prices on domains such as these — suicide.club and aids.club both carry $5,500 fees, for example.
Sports domains baseball.sucks, football.sucks, soccer.sucks, basketball.sucks and hockey.sucks all carry $75,000 fees.
On the vices: poker.sucks is also $75,000, gambling.sucks is $42,000, beer.sucks is $27,000 and alcohol.sucks is $4,500. Other strings, such as casino.sucks, do not appear to be premiums.
This patchy premium coverage goes for entertainment too. While television.sucks ($88,500) and music.sucks ($15,000) are premiums, internet.sucks and radio.sucks are not.
In relationships, gay.sucks is listed at $27,000 (lesbian.sucks does not appear to be premium) and dating.sucks is $15,000.
I tried a few common racial slurs and found them to be unavailable. Vox Pop has a policy against cyber-bullying, which may account for that.
racism.sucks costs $52,500, however.
Religious terms blocked?
Some religious terms are considered premium, while others are not available to register.
.sucks is currently in its sunrise period, so unavailable names have presumably been blocked by the registry for some reason.
I found that christianity.sucks carries a premium price tag of $75,000, while church.sucks is $30,000 and christian.sucks is $34,500.
catholic.sucks is not available, nor are jesus.sucks, christ.sucks and moses.sucks.
But catholicism.sucks, protestant.sucks, methodist.sucks baptist.sucks, can be bought for the regular reg fee.
hindu.sucks, hinduism.sucks, buddhist.sucks and buddhism.sucks are all for sale at the usual price.
judaism.sucks and jews.sucks are available at the regular reg fee, but jew.sucks is not available.
islam.sucks, muslim.sucks and muslims.sucks are not currently available. Nor is muhammed.sucks. But mohammed.sucks and muhammad.sucks are available.
I wonder what we can fairly infer from these apparent discrepancies.
Registry defensives?
As you might expect, the name of the registry is reserved — that happens in pretty much ever gTLD.
It remains to be seen whether Vox Pop will eat its own dog food and allow third-party criticism on its site.
It turns out johnberard.sucks (Vox Populi CEO) is not available. Neither are the names of Rob Hall, CEO of Vox Pop parent Momentous, and Uniregistry CEO Frank Schilling, who is involved in the TLD is some currently undisclosed capacity.
rob.sucks, john.sucks and frank.sucks are all not available to register.
As controls, I checked out other common male first names and the full names of other major registry/registrar CEOs and found them all available.
It will be interesting to see if any of these names are ever developed into criticism web sites by their owners.

.guru renewals at 63%

Ten days into its series of renewal rate disclosures, Donuts has revealed that .guru’s rate currently stands at 63.4%.
In a blog post yesterday, COO Richard Tindal said that the registry’s overall renewal figure for the first 81,569 domains it sold was 68.4%.
The other two large TLDs in the batch — .photography and .clothing — came in at 75.7% and 74.0%, respectively.
.guru was the first new gTLD to launch in English that did not refer to a specific niche vertical. As such, it took the lion’s share of the early new gTLD speculation money.
We’re looking at a typical junk drop, in other words.
Over 10,000 names have been deleted from the .guru zone file since it peaked at over 80,000 names on February 28, as this DI PRO chart shows.

Tindal wrote that he expects the numbers to improve over time:

In March and April we expect the cumulative rate on all Donuts names to stabilize around 70%, and then trend upwards toward 80% as the average age of registrations increases and the proportion of names with website content continues to grow.

Google launches com.google

Google has launched com.google, one of its batch of 2015 April Fool’s Day jokes.
Visiting the domain today will reveal a reversed perspective on the usual Google home page.

Even the results pages are reversed.

It’s probably the most inventive use of a dot-brand new gTLD to date.

That mystery $1 million .sucks fee explained, and it’s probably not what you thought

Vox Populi has agreed to pay ICANN up to $1 million in extra fees in order to pay off the debts of affiliated deadbeat registrars, I can reveal.
The formerly mysterious fees, which comprise a $100,000 start-up payment and $1 for each of its first 900,000 .sucks transactions, were discovered by ICANN’s Intellectual Property Constituency, as I reported Friday.
I speculated that the payments may have related to ICANN padding out its legal defense fund, rather like it did with .xxx a few years ago, but it turns out that guess was dead wrong.
ICANN has told DI:

Some affiliates of Momentous, the majority owners of Vox Populi Registry, had previously defaulted on substantial payments to ICANN. Given this previous experience, ICANN negotiated special contract provisions in the Vox Populi Registry Agreement to provide additional financial assurances. Those provisions were added solely for that reason and were not related to the nature of this specific TLD.

I gather that the affiliated companies in question were shell registrars that went out of business a while ago.
Momentous company Pool.com used large numbers of empty registrar accreditations in order to drop-catch expiring domain names. Fairly standard practice in the drop-catching game.
But many of these entities were shut down, owing ICANN a whole bunch of cash in unpaid registrar fees.
ICANN has now chosen to recoup the money by extracting it from the .sucks registry, which according to its new gTLD application is majority-owned by Momentous.
The .sucks contract calls the $100,000 a “registry access fee” and the $1-a-name charge as “registry administration fee”.
For avoidance of doubt, this post is not an April Fool joke.

Will Vox Populi eat its own .sucks dog food?

Vox Populi has yet to decide whether it will put its mouth where its money is and open up its own brand for the .sucks treatment.
In a radio interview with the Canadian Broadcasting Corporation’s Day 6 show broadcast on Friday, registry CEO John Berard was asked whether the company would register voxpopuli.sucks and allow it to be used as a third-party criticism site.
Vox Populi is positioning .sucks as a space where big brands and others register names in order to solicit useful commentary, criticism and conversation from their customers.
So the correct answer to the question would have been: “Yes, of course we will do that.”
But Berard was more ambiguous in his response:

HOST: What will you do with the voxpopuli.sucks web site? Will you put it up or will you hold it?
BERARD: My instinct would be to put it up.
HOST: But there’s a possibility that you won’t?
BERARD: It’s a business decision we’ll have to make and I think it’s probably the smarter business decision to put it up.

In my view, the company would be mad to sit on voxpopuli.sucks and related names.
By eating its own dog food, it would send the message that it actually believes its own marketing line.
I’m frankly surprised that Vox Pop has not already enthusiastically confirmed it will open itself up to the same kind of treatment as its sunrise period customers.
The full 15-minute CBC piece, which includes four minutes of yours truly busting his radio cherry and five of domain investor Rick Schwartz bitching about how “corrupt” ICANN is, can be streamed here.
The .sucks sunrise period begins today, with a controversial recommended retail price of $2,500 per year.

Chehade tries to explain domain “hogging” comments

ICANN CEO Fadi Chehade has distanced himself from comments in which he seemed to equate domain investing with “cybersquatting”.
In January, Chehade said in a Huffington Post interview that new gTLDs would help prevent domain “hogging”, which was widely interpreted as his taking a dim view of domaining.

When asked about his remarks last month, he did not backtrack.
Now he has backtracked, responding to an angry letter from the Internet Commerce Association, which represents many of the largest domainers.
In March 24 letter (pdf) published over the weekend, Chehade said that he interpreted the HuffPo interviewer’s question to refer to the practice of registries holding back premium domains, rather than secondary market activity:

I regret that the ICA interpreted some of my comments in the interview as expressing a “disdainful view” of domain investing. As you might have gathered from the reporter’s questions, some people have asked whether the new gTLD program might have created an opportunity for “land grabb[ing]” by industry insiders. It was not my impression that the question being asked referred to established practices in the secondary market; rather, I believe the reporter was inquiring about some of the very practices by registries you cited in your letter. My response — that alternatives are available in different gTLDs — was intended to try to allay the concern that the program was creating artificial scarcity of domains, not to criticize participants in the marketplace.

Was this a fair interpretation of the interviewer’s question? Is this just a misunderstanding?
Watch the two-minute video above to make up your own mind.
Addressing the ICA’s concerns that he had equated domain investing with cyberquatting, Chehade wrote:

We are in complete agreement that there is a very important legal distinction between registering generically-termed domain names and cybersquatting.