.sucks made millions from sunrise

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?

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?

Donuts makes private deal with wine-makers

Donuts inked a private side-deal with wine-making regions in order to launch the .wine and .vin new gTLDs
The company signed both Registry Agreements with ICANN late last week, after the wine regions and the European Union stopped complaining.
The EU and regions had filed Cooperative Engagement Process objections with ICANN, saying that Donuts should be forced to protect “geographic indicators” such as Napa Valley and Champagne.
CEPs are often precursors to Independent Review Process complaints, but both were dropped after Donuts came to a private deal.
“The CEP filed by the Wine Regions was withdrawn because we came to a satisfactory private arrangement with the Registry concerned, Donuts,” David Taylor of Hogan Lovells, who represented the wine-making regions, told DI.
Details of the deal have not been disclosed, but Donuts does not appear to have committed to anything that could create compliance problems with ICANN in future.
“It has been a successful negotiation between private parties that avoids policy precedents,” Taylor said. “There are no special changes to these registry agreements (e.g., no new PICs)”
PICs are Public Interest Commitments, enforceable addenda to Registry Agreements that oblige the registry to adhere to extra rules.
So are GIs protected in .wine or not? For now, Taylor won’t say.
“My view is that this is not a victory for either side of the GI debate,” he said. “This is a victory for the wine community (consumers and producers) and ultimately the new gTLD program.”

New DNA social media site highlights “in the wild” domains

The Domain Name Association has launched a new web site to show off domains, primarily new gTLD names, that have been spotted “in the wild”.
InTheWild.domains points to a Tumblr blog where members and others can share, for example, photos of billboards or promotional videos that prominently feature new domains.
“Tumblr offers the DNA a very efficient and flexible platform that will help the DNA social media team and you find and post more domains, rather on non-productive management tasks,” the DNA told members.
The site currently has a few dozen posts, such as a WePark.nyc billboard and a VSquared.rocks red carpet video.
Most listed domains are in 2012-round new gTLDs, but there’s a .info, a .us and a .co in there too. I don’t see any .com names.
The submission process appears to be open to everyone, but submissions are moderated by the DNA’s social media people.

ICANN ponders rejecting all closed generics

ICANN is thinking about rejecting all the remaining “closed generic” new gTLD applications from the current round.
According to minutes of a June 5 New gTLD Program Committee meeting published last night, ICANN is considering two options.
First, it could “prohibit exclusive generic TLDs in this round of the New gTLD Program and consult with the GNSO about developing consensus policy for future rounds”.
Or, it could initiate a “community process… to develop criteria to be used to evaluate whether an exclusive generic applicant’s proposed exclusive registry access serves a public interest goal.”
The NGPC has not yet reached a decision.
The rejection option would be fastest and easiest, but risks the wrath of companies that applied for closed generics — which were always envisaged when the new gTLD rules were being developed — in good faith.
Alternatively, developing a process to measure the applications against the “public interest” would be very time-consuming, possibly not even feasible, and would add even more delay to competing applicants.
This is one of the longest-delayed responses to the Governmental Advisory Committee’s April 2013 Beijing communique, which said “exclusive registry access should serve a public interest goal.”.
Closed generics, which ICANN now calls “exclusive access” gTLDs, are dictionary words that the applicant proposes to keep for itself, allowing no third parties to register names.
There are currently only six new gTLD applications that are stubbornly sticking to their original closed generic position.
Applicants for another 175 gTLDs have either changed their applications to allow third-party registrants or denied that they ever even planned to give themselves exclusive access.
Of the six hold-outs, three are delaying their respective contention sets while ICANN endlessly mulls the problem.
Here’s a table showing the affected strings.
[table id=33 /]
The applicants for the closed generics have each submitted responses explaining why they believe their proposals serve the public interest. They’re largely corporate legalese bibble.

.berlin zone drops off a cliff

The number of domains in the .berlin zone file appears to have stabilized after falling off a cliff late last week.
The new gTLD, which was an early leader in the space, peaked at 151,295 names on June 10.
It was down by 68,841 to 82,481 domains on June 12 and has been relatively flat, down by just a dozen or so domains per day, ever since.
A possible explanation for the decrease is the expiration of domains that were given away for free a year ago, but the dates don’t quite tally.
On June 16 2014, the zone file rocketed by over 67,000 names, most of which were registered via InternetX.
The promotion was yanked just a few days later, with the dotBerlin registry citing unexpectedly high demand.
One of dotBerlin’s registration policies requires .berlin names to be “put to use” within 12 months of registration, in such a way that demonstrates the nexus with the Berlin community.
Given that most of the free domains were registered by a handful of speculators, it seems unlikely that there’s been a whole lot of development of those names.

ICM claws back 68 .porn names it accidentally released

ICM Registry has recovered nine .porn and .adult domain names from their registrants after they were accidentally released into the market.
Domains such as ads.porn, hosting.adult and buy.porn were among those snapped up by registrants, despite the fact that they were supposed to be registry-reserved.
ICM CEO Stuart Lawley told DI that a list of 68 .porn/.adult names (34 strings in each of the two gTLDs) have been brought back into the registry’s portfolio.
Only nine had been registered in the less than 24 hours the names were in the available pool, he said.
Lawley said it was his own personal fault for not sending the reserved list to back-end provider Afilias.
The affected registrants have been offered a domain from ICM’s premium list up to the value of $2,500 for each of the names ICM took back, he said.
Only one registrant has so far declined the offer, Lawley said.
Konstantinos Zournas of OnlineDomain, who broke the news about ads.porn yesterday, identifies this former registrant as “James” and reported that he is taking legal advice.
This is not the first time that a registry has accidentally released reserved names into the pool, where they were subsequently snapped up by domainers.
In January, .CLUB Domains accidentally sold credit.club, a name it had planned to keep on its premium reserved list for $200,000, for $10.99.
In that case, .CLUB honored the purchase after the buyer agreed to develop the site, scoring many brownie points in the domain investor community.
Both .CLUB and ICM have terms in their agreements allowing domains accidentally released to be recovered.
In ICM’s case, the names it accidentally released were not premiums, but rather domains that the registry plans to use as part of its own business — not to be sold at any price.
It used buy.xxx as a cornerstone of its .xxx marketing, for example, and it plans to use buy.porn and buy.adult for the exact same purpose.

US Congresspeople tell ICANN to ignore GAC “interference”

A bispartisan group of US Congresspeople have called on ICANN to stop bowing to Governmental Advisory Committee meddling.
Showing characteristic chutzpah, the governmental body advises ICANN that advice from governments should be viewed less deferentially in future, lest the GAC gain too much power.
The members wrote (pdf):

Recent reports indicate that the GAC has sought to increase its power at the expense of the multistakeholder system. Although government engagement in Internet governance is prudent, we are concerned that allowing government interference threatens to undermine the multistakeholder system, increasing the risk of government capture of the ICANN Board.

The letter was signed by 11 members of the House Judiciary Subcommittee on Courts, Intellectual Property and the Internet, which is one of the House committees that most frequently hauls ICANN to Capitol Hill to explain itself.
Most of the signatories are from the Republican majority, but some are Democrats.
It’s not entirely clear where they draw the line between “engagement” and “interference”.
The letter highlights two specific pieces of GAC input that the signatories seem to believe constitute interference.
First, the GAC’s objection to Amazon’s application for .amazon. The letter says this objection came “without legal basis” and that ICANN “succumbed to political pressure” when it rejected the application.
In reality, the GAC’s advice was consensus advice as envisaged by the Application Guidebook rules. It was the US government that succumbed to political pressure, when it decided to keep its mouth shut and allow the rest of the GAC to reach consensus.
The one thing the GAC did wrong was filing its .amazon objection outside of the window envisaged by the Guidebook, but that’s true of almost every piece of advice it’s given about new gTLD applications.
Second, the Congresspeople are worried that the GAC has seized for its members the right to ban the two-letter code representing their country from any new gTLD of their choosing.
I’ve gone into some depth into how stupid and hypocritical this is before.
The letter says that it has “negative implications for speech and the world economy”, which probably has a grain of truth in it.
But does it cross the line from “engagement” to “interference”?
The Applicant Guidebook explicitly “initially reserved” all two-letter strings at the second level in all new gTLDs.
It goes on to say that they “may be released to the extent that Registry Operator reaches agreement with the government and country-code manager.”
While the rule is pointless and the current implementation convoluted, it comes as a result of the GAC engaging before the new gTLD program kicked off. It was something that all registries were aware of when they applied for their gTLDs.
However, the GAC’s more recent behavior on the two-letter domain subject has been incoherent and looks much more like meddling.
At the ICANN meeting in Los Angeles last October, faced with requests for two-character domains to be released, the GAC issued formal advice saying it was “not in a position to offer consensus advice on the use of two-character second level domain names”.
ICANN’s board of directors accordingly passed a resolution calling for a release mechanism to be developed by ICANN staff.
But by the time February ICANN meeting rolled around, it had emerged that registries’ release requests had been put on hold by ICANN due to letters from the GAC.
The GAC then used its Singapore communique to advise ICANN to “amend the current process… so that relevant governments can be alerted as requests are initiated.” It added that “Comments from relevant governments should be fully considered.”
ICANN interpreted “fully considered” to mean an effective veto, which has led to domains such as it.pizza and fr.domains being banned.
So it does look like thirteenth-hour interference but that’s largely because the GAC is often incapable of making its mind up, rarely talks in specifics, and doesn’t meet frequently enough to work within timelines set by the rest of the community.
However, while there’s undoubtedly harm from registries being messed around by the GAC recently, governments don’t seem to have given themselves any powers that they did not already have in the Applicant Guidebook.

Canada shrugs over .sucks

The Canadian trade regulator has sent ICANN a big old “Whatever” in response to queries about the legalities of .sucks.
The response, sent by Industry Canada’s deputy minister John Knubley yesterday, basically says if the intellectual property lobby doesn’t like .sucks it can always take its complaints to the courts.
Other than opening and closing paragraphs of pleasantries, this is all Knubley’s letter (pdf) says:

Canada’s laws provide comprehensive protections for all Canadians. Canada has intellectual property, competition, criminal law and other relevant legal frameworks in place to protect trademark owners, competitors, consumers and individuals. These frameworks are equally applicable to online activities and can provide recourse, for example, to trademark owners concerned about the use of the dotSucks domains, provided that trademark owners can demonstrate that the use of dotSucks domains infringes on a trademark. Intellectual property rights are privately held and are settled privately by the courts.

There’s not much to go on in there; it could quite easily be a template letter.
But it seems that Vox Populi Registry has been cleared to go ahead with the launch of .sucks, despite IP owner complaints, at least as far as the US and Canadian regulators are concerned.
The Federal Trade Commission was equally noncommittal in its response to ICANN two weeks ago.
Vox Populi is based in Canada. It’s still not entirely clear why the FTC was asked its opinion.
ICANN had asked both agencies for comment on .sucks’ legality after its Intellectual Property Constituency raised concerns about Vox Pop’s “predatory” pricing.
Pricing for .sucks names in sunrise starts at around $2,000.
ICANN told DI in April that it was in “fact finding” mode, trying to see if Vox Pop was in breach of any laws or its Registry Agreement.
The .sucks domain is due to hit general availability one week from now, June 19, with a suggested retail price of $250 a year.
If anything, the $250 says much more about Vox Pop’s business model than the sunrise fees, in my opinion.

ICANN Compliance probing Hunger Games domain

ICANN’s Compliance department is looking into whether Donuts broke the rules by activating a domain name for the forthcoming The Hunger Games movie.
Following up from the story we posted earlier today, ICANN sent DI the following statement:

We are well aware of this issue and are addressing it through our normal compliance resolution process. We attempt to resolve compliance matters through a collaborative informal resolution process, and we do not comment on what happens during the informal resolution phase.

At issue is whether Donuts allowed the movie’s marketers to launch thehungergames.movie before the new gTLD’s mandatory 90-day “controlled interruption” phase was over.
Under a strict reading of the CI rules, there’s something like 10 to 12 days left before Donuts is supposed to be allowed to activate any .movie domain except nic.movie.
Donuts provided the following statement:

This is a significant step forward in the mainstream usage of new domains. One of the core values of the new gTLD program is the promotion of consumer choice and competition, and Donuts welcomes this contribution to the program’s success, and to the promotion of the film. We don’t publicly discuss specific matters related to ICANN compliance.

I imagine what happened here is that Donuts got an opportunity to score an anchor tenant with huge visibility and decided to grasp it with both hands, even though distributor Lion’s Gate Entertainment’s (likely immovable) launch campaign schedule did not exactly chime with its own.
It may be a technical breach of the ICANN rules on name collisions — which many regard as over-cautious and largely unnecessary — but it’s not a security or stability risk.
Of course, some would say it also sets a precedent for other registries to bend the rules if they score big-brand backing in future.