Latest news of the domain name industry

Recent Posts

New gTLD sales miss ICANN estimates by a mile

Kevin Murphy, July 2, 2015, Domain Registries

New gTLD registration volumes failed to live up to ICANN’s expectations by a long, long way in its fiscal 2015.
When ICANN’s FY15 ended on Tuesday, new gTLDs had fewer than 6 million domains in their collective zone files.
That’s just 18% of ICANN’s original early 2014 estimate of 33 million domains and just 39% of its revised March 2015 estimate of 15 million names.
It’s going to be harder to compare future new gTLD performance to ICANN’s projections, as the program enters its second year of live activity.
The organization’s recently published draft fiscal 2016 budget does not have a “total registrations” number to compare to the 15/33 million projection in last year’s budget.
It does, however, predict 12.5 million billable registrar transactions in FY16, which began yesterday.
Billable registrar transactions include renewals and transfers, however, so ICANN is not saying that there will be 12.5 million extant new gTLD registrations this time next year.

You might be surprised how many new gTLDs have changed hands already

Kevin Murphy, July 1, 2015, Domain Registries

At least 86 new gTLD registry contracts have changed hands since the end of 2013, I have discovered.
ICANN calls the transfer of a Registry Agreement from one company to another an “assignment”. Global Domains Division staff said in Buenos Aires last week that it’s one of the more complex and time-consuming tasks they have to perform.
So I thought I’d do a count, and I discovered some interesting stuff.
Donuts/Rightside
The biggest beneficiary of incoming assignments so far is of course Rightside, aka United TLD Holdco, which has so far taken over 23 of the gTLDs applied for by Donuts.
The two companies have had an agreement since the start that allows Rightside to take on as many as 107 of Donuts’ original 307 applications.
Interestingly, Rightside sold .fan to AsiaMix Digital after Donuts had transferred the gTLD to it.
Amazon
We also discover that Amazon is repatriating its gTLD contracts en masse.
So far, 21 gTLDs applied for by Amazon EU Sarl — the Luxembourg-based company Amazon uses to dodge tax in other European countries — have been transferred to US-based Amazon Registry Services Inc.
Amazon EU has made money losing new gTLD auctions.
Given the company’s usual MO, I have to wonder whether Amazon Registry Services, under the US tax regime, plans to make any money at all from its new raft of gTLDs.
Subsidiary changes
Speaking of tax, four gTLDs associated with the Hong Kong-based Zodiac group of applicants have been transferred to new Cayman Islands companies with similar names.
A bunch of the other assignments appear to be registries shifting contracts between various subsidiaries.
IG Group, a large UK derivatives trader, has assigned seven gTLDs (such as .forex, .markets and .spreadbetting) to newly created UK subsidiaries, for example.
Also, Ireland-based Afilias transferred the .green RA to a new Irish subsidiary, while Germany-based .srl applicant mySRL has sent its contract to a Florida-based sister company from the InternetX stable.
There are several other example of this kind of activity.
Actual acquisitions
As best as I can tell, there have been only eight actual post-contracting acquisitions so far: .trust, .fan, .meet, .reise, .xn--ses554g, .rent, .theatre, and .protection.
The only one of those I didn’t know about — and haven’t seen reported anywhere — was .meet, which Afilias seems to have sold to Google back in February.
It should be noted that while I’ve counted 86 assignments, I may have missed some. At least one — XYZ.com’s acquisition of .security from Symantec, does not appear have been completed yet, judging by ICANN’s web site.

Afilias promises cash for LGBT cause with .lgbt sales

Kevin Murphy, June 30, 2015, Domain Registries

Afilias has promised to donate a slice of .lgbt registration fees to a LGBT organization for the next few months.
The company, which acts as registry for .lgbt, said it will give $20 to the It Gets Better Project for every name registered through October 11.
It Gets Better is a US-based non-profit devoted to supporting LGBT people through their often rough teenage years.
Afilias said the promotion is meant to celebrate the recent legalization of same-sex marriage in the US and Ireland.
The October 11 end date was picked because that is National Coming Out Day in the US.
.lgbt names currently retail for roughly $45 to $60 a year.

First example of .sucks cybersquatting?

Kevin Murphy, June 30, 2015, Domain Registries

The .sucks domain has been generally available for a little over a week now, and I’ve found what may be the first example of somebody attempting to sell one to a brand owner.
amherstcollege.sucks is one of only a handful on non-registry-owned .sucks domains to have a web site already indexed by Google.
The site solicits commentary about Amherst College — a liberal arts university in Massachusetts that owns a US trademark on “Amherst” — but does not yet publish any such criticism.
However, the phrases “AMHERSTCOLLEGE.SUCKS DOMAIN NAME + WEBSITE IS FOR SALE” and “IF YOU ARE INTERESTED IN PURCHASING THIS DOMAIN AND WEBSITE CONTACT US” appear prominently on the bare-bones WordPress blog currently running at the site.
The Whois record shows “THIS DOMAIN IS FOR SALE” as the registrant organization.
Under the UDRP, offering a domain for sale is usually considered enough to meet the “bad faith” part of the three-prong cybersquatting test.
I doubt it’s the only example of a .sucks domain matching a brand currently listed for sale by a third-party registrant, but it is the first one showing up in Google.
It’s still early days; the other .sucks domains with sites and a Google presence are a mix of redirects, mirroring and placeholders.
Microsoft-owned microsoft.sucks is one of them. It redirects to a Bing search results page.
The $250-a-year .sucks gTLD, managed by Vox Populi registry, currently has fewer than 5,700 domains in its zone file. Growth has ground almost to a halt over the last few days.

AlpNames claims to be second-largest new gTLD registrar

Kevin Murphy, June 24, 2015, Domain Registrars

A little-known registrar with close ties to Famous Four Media says it is now the second-largest seller of new gTLD domains, after Go Daddy.
AlpNames said it has 500,000 new gTLD domains under management, overtaking Network Solutions into the number-two position.
Its number for February, the last month for which registry reports are available, has the registrar with a DUM of under 50,000.
The vast majority of the names it sells or gives away are in gTLDs in the Famous Four portfolio — namely .science, .party and .webcam.
It’s currently selling those for $0.49 each, a $0.24 markup on the current promotional registry fee.
Factoring out the ICANN transaction fee, AlpNames has a margin of just a few cents per name.
Previously, it has given away .science names for free.
AlpNames is Famous Four’s neighbor in Gibraltar and owns domains such as register.science, indicating a very close relationship between the two companies.

XYZ buys .security and .protection from Symantec

Kevin Murphy, June 24, 2015, Domain Registries

XYZ.com has added .security and .protection to its portfolio of new gTLDs under a private deal with security software maker Symantec.
Symantec originally applied for both as closed generics, but changed its plans when ICANN changed its tune about exclusive access gTLDs.
The company won .security in an auction against Donuts and Defender Security late last year; .protection was uncontested. It lost auctions for .cloud and .antivirus.
Symantec’s .symantec and .norton, both dot-brands, are currently in pre-delegation testing.
XYZ already owns .college, .rent and of course .xyz.
In other news, Afilias has acquired .promo, which was in PDT with applicant Play.Promo Oy, in a private auction.
UPDATE: A couple of hours after this post was published, XYZ announced it has also acquired .theatre, which will compete with Donuts’ .theater, from KBE gTLD Holding Inc.

ICANN bans closed generic gTLDs, for now

Kevin Murphy, June 24, 2015, Domain Policy

ICANN has slapped a de facto ban on so-called “closed generic” gTLDs, at least for the remaining 2012 round applicants.
The ICANN board’s New gTLD Program Committee passed a resolution Sunday that un-freezes the remaining new gTLD applications that envisage a namespace wholly controlled by the applicant.
The affected strings are .hotels, .dvr and .grocery, which are uncontested, as well as .food, .data and .phone, which are contested by one or two other applicants.
The NGPC said five strings are affected, but the ICANN web site currently shows these six.
The resolution allows the contested strings to head to dispute resolution or auction, but makes it clear that “exclusive generic gTLDs” will not be able to sign a registry contract.
Instead, they will either have to withdraw their applications (receiving a partial refund), drop their exclusivity plans, or have their applications carried over to the second new gTLD round.
The GNSO has been asked to develop a policy on closed generics for the second round, which is still probably years away.
It’s not clear whether other applicants would be able to apply for strings that are carried over, potentially making the close generic applicant fight two contention sets.
The NGPC decision comes over two years after the Governmental Advisory Committee advised that closed generics must serve “a public interest goal” or be rejected.
This weekend’s resolution sidesteps the “public interest” question altogether.

URS fight brewing at ICANN 53

Kevin Murphy, June 22, 2015, Domain Registries

Should the Uniform Rapid Suspension process spread from new gTLDs to incumbent gTLDs, possibly including .com?
That’s been the subject of some strong disagreements during the opening weekend of ICANN 53, which formally kicks off in Buenos Aires today.
During sessions of the Generic Names Supporting Organization and the ICANN board and staff, ICANN was accused of trying to circumvent policy-making processes by forcing URS into the .travel, .pro and .cat registry agreements, which are up for renewal.
ICANN executives denied doing any such thing, saying the three registries volunteered to have URS included in their new contracts, which are modeled on the standard new gTLD Registry Agreement.
“It’s just something we’ve suggested and they’ve taken up,” said Cyrus Namazi, ICANN’s vice president of domain name services.
If a registry wants to increase the number of rights protection mechanisms in its gTLD, why not let them, ICANN execs asked, pointing out that loads of new gTLDs have implemented extra RPMs voluntarily.
ICANN admits that it stands to benefit from operational efficiencies when its registry agreements are more uniform.
Opponents pointed out that there’s a difference between Donuts, say, having its bespoke, voluntary Domain Protected Marks List, and bilaterally putting the URS into an enforceable ICANN contract.
URS is not a formal Consensus Policy, they say, unlike UDRP. Consensus Policies apply to all gTLDs, whereas URS was created by ICANN for new gTLDs alone.
Arguably leading the fight against URS osmosis is Phil Corwin, counsel for Internet Commerce Association, which doesn’t want its clients’ vast portfolios of .com domains subject to URS.
He maintained over the weekend that his beef was with the process through which URS was making its way into proposed legacy gTLD contracts.
It shouldn’t be forced upon legacy gTLDs without a Consensus Policy, he said.
While the GNSO, ICANN staff and board spent about an hour talking about “process” over the weekend, it was left to director Chris Disspain to point out that that was basically a smokescreen for an argument about whether the URS should be used in other gTLDs.
He’s right, but the GNSO is split on this issue in unusual ways.
Corwin enjoys the support of the Business Constituency, of which he is a member, in terms of his process criticisms if not his criticisms of RPMs more generally.
ICA does also have backing from some registrars (which bear the support costs of dealing with customers affected by URS), from the pro-registrant Non-Commercial Stakeholders Group, and from groups such as the Electronic Frontier Foundation.
The Intellectual Property Constituency thinks that the process is just fine — .travel et al can sign up to URS if they want to.
While the registries have not yet put forward a joint position, the IPC’s view has been more or less echoed by Donuts, which owns the largest portfolio of new gTLDs.
The public comment period for the .travel contract ended yesterday. Comments can be read here. Comment periods on .cat and .pro close July 7.

.sucks made millions from sunrise

Kevin Murphy, June 21, 2015, Domain Registries

Vox Populi could have made over $6 million from defensive registrations during its sunrise period.
The company’s first post-sunrise zone file was published today, and according to DI PRO it contains 3,394 domains, the vast majority of which were newly added today.
If all of these names were sunrise registrations, that would add up to an almost $6.8 million windfall for the registry.
However, I don’t think that’s a completely reliable figure. I believe that not all of the names are from sunrise.
The zone file seems to have been generated after .sucks general availability kicked off at a minute after midnight UTC this morning. ICANN publishes zone files around 5am UTC but the time it collects them from registries can vary between TLDs.
Poring over Whois records, I’ve found many examples of domains in the .sucks zone that have creation dates in the early minutes and hours of GA.
Many domains that are not obvious trademarks show creation times in the first 60 seconds of GA, suggesting they were pre-orders and sold for GA prices.
It’s also probable that some sunrise names are not showing up in the zone file yet due to a lack of name servers.
According to a source talking to DI last November, Vox Pop paid “over $3 million” for the right to run .sucks at auction.
It seems to have made its money back — and then some — purely from sunrise fees.
Sunrise names are charged at $1,999 a year by the registry. In GA, most names have a recommended retail price of $250. Strings considered valuable, many of them trademarks, carry a $2,500 “Market Premium” recommended price.

Famous Four following .sucks playbook with premium pricing for brands?

Kevin Murphy, June 21, 2015, Domain Registries

New gTLD registry Famous Four Media has slapped general availability prices of $500 and up on domain names matching famous brands.
The company plans to shortly introduce eight “premium” pricing tiers, ranging from $200 a year to $10,000 a year.
The first to launch, on July 8, will be its “brand protection tier”, which will carry a $498 registry fee.
Famous Four told its registrars that the tier “will provide an additional deterrent to cyber-squatters for well-known brands ensuring that domain names in this tier will not be eligible for price promotions”.
The gTLDs .date, .faith and .review will be first to use the tiered pricing structure.
It’s not entirely clear what brands will be a part of the $498 tier, or how the registry has compiled its list, but registrars have been given the ability to ask for their clients’ trademarks to be included.
I asked Famous Four for clarification a few days ago but have not yet had a response.
While other registries, such as Donuts, used tiered pricing for GA domains, I’m only aware of one other that puts premium prices on brands: .sucks.
Vox Populi has a trademark-heavy list of .sucks domains it calls Market Premium — formerly Sunrise Premium — that carry a $1,999-a-year registry fee.
Unlike Vox Pop, Famous Four does not appear to be planning a subsidy that would make brand-match domains available at much cheaper prices to third parties.
Famous Four’s gTLDs have seen huge growth in the last month or two, largely because it’s been selling domains at a loss.
.science, for example, has over 300,000 registrations — making it the third-largest new gTLD — because Famous Four’s registry fee has been discounted to just $0.25 from May to July.
The same discount applies to .party (over 195,000 names in its zone) and .webcam (over 60,000).
Those three gTLDs account for exactly half of the over 22,000 spam attacks that used new gTLD domains in March and April, according to Architelos’ latest abuse report.
With names available at such cheap prices, it would not be surprising if cybersquatters are abusing these gTLDs as much as the spammers.
Will intellectual property owners believe a $498+ reg fee is a useful deterrent to cybersquatting?
Or will they look upon this move as “predatory”, as they did with .sucks?