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.

“Halt perverted .sucks shakedown now!” demands IPC

Intellectual property interests have asked ICANN to put an immediate stop to the roll-out of the .sucks new gTLD.
A letter to Global Domains Division president Akram Atallah, sent by the Intellectual Property Constituency this evening and seen by DI, calls the registry’s plans, which include an “exorbitant” $2,500 sunrise fee, a “shakedown scheme”.
It’s also emerged that Vox Populi, the .sucks registry, has agreed to pay ICANN up to a million dollars in mysterious fees that apply to no other new gTLD registry.
The IPC letter states.

the Intellectual Property Constituency is 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.

Vox Populi intends to take .sucks to sunrise on Monday, so the IPC wants ICANN to take immediate action.
The high price of registration, the IPC believes, will discourage trademark owners from using the sunrise period to defensively register their marks.
Meanwhile, the registry’s plan to make the domains available for $10 under a “Consumer Advocate Subsidy”, will encourage cybersquatting, the IPC says.

by discouraging trademark owners from using a key RPM, we believe that the registry operator’s actions in establishing this predatory scheme are complicit in, and encourage bad faith registrations by third parties at the second level of the .SUCKS gTLD, and thus drastically increase the likelihood of trademark infringement, all for commercial gain

The letter goes on to say that Vox Populi may be in violation of its registry contract and the Post-Delegation Dispute Resolution Policy, which was created to prevent registries turning a blind eye to mass cybersquatting.
There’s also a vague threat of legal action for contributory trademark infringement.
The IPC has particular beef with the registry’s Sunrise Premium program. This is a list of strings — mostly trademarks — that have been defensively registered in earlier sunrise periods.
Sunrise Premium names will always cost $2,500, even after sunrise, when registered by the trademark owner.
The IPC says:

Vox Populi is targeting and punishing brand owners who have availed themselves of the RPMs or shown that they are susceptible to purchasing defensive registrations… This will have a chilling effect on TMCH registrations and consequently discredit all of the New gTLD Program RPMs in the eyes of brand owners, whose buy-in and adoption of new gTLDs is widely acknowledged to be critical to the success of the new gTLD program.

Finally, and perhaps more disturbingly, the IPC has discovered that the .sucks registry agreement calls for Vox Populi to pay ICANN up to a million dollars in extra fees.
As well as the usual $25,000-a-year fee and $0.25 per-transaction fee, .sucks has already paid ICANN a $100,000 “registry access fee” and has promised to pay a $1 “registry administration fee” per transaction on its first 900,000 domains.
Its contract states:

Registry Operator shall also pay ICANN (i) a one-time fixed registry access fee of US$100,000 as of the Effective Date of this Agreement, and (ii) a registry administration fee of US$1.00 for each of the first 900,000 Transactions. For the avoidance of doubt, the registry administration fee shall not be subject to the limitations of the Transaction Threshold.

This makes ICANN look absolutely terrible.
What the hell is a “registry access fee”? What’s a “registry administration fee”?
One guess would be that it’s ICANN stocking up its legal defense fund, suspecting the kerfuffle .sucks is going to cause.
But by taking the Vox Pop shilling, ICANN has opened itself up to accusations that it’s complicit in the “shakedown”.
If it does not block .sucks (which was probably the most likely outcome even without mysterious fees) the IPC and other .sucks critics will be able to point to the $1 million as a “bribe”.
The behavior is not without precedent, however.
There’s a reason ICM Registry pays ICANN a $2 fee for every .xxx registration, rather than the much lower fees charged to other gTLD registries.
Read the IPC letter here.

Governments go on a kill-crazy rampage with new two-letter domain veto

ICANN has confirmed to new gTLD registries that governments now get to unilaterally block two-letter domains that match their home ccTLDs.
The organization has essentially given nations a veto — already enthusiastically exercised — over domains including il.army, it.pizza and fr.domains.
I’m not making this up. The Italian government has banned anyone from registering it.pizza.
Governments have already started invoking their new-found right, with dozens of domains already heading to the block-list.
The veto was revealed in a letter from Akram Atallah, president of ICANN’s Global Domains Division, to the Registries Stakeholder Group yesterday.
It has not been published yet, but I’ve had its contents confirmed by a few registries and I understand the RySG mailing list is buzzing about it today.
In it, Atallah says that two-letter strings that do not receive objections from the government with the matching ccTLD will be released within seven to 10 days of comment periods closing.
However, strings that do receive objections will remain blocked.

For labels that receive objections from relevant governments, the labels will remain reserved. Should the registry operator and the objecting government reach an agreement regarding the release of the label, the registry operator shall notify ICANN that it has reached agreement, and ICANN will approve the release request and issue an authorization. The label will no longer be a reserved name.
…
until there is Consensus Policy or a Board Resolution on this matter, ICANN can only follow the process outlined above. ICANN encourages further community discussions to resolve this matter, and until then, negotiation between the objector and the registry operator as a means to release this class of labels from the reserved names list.

New gTLD registries believe, as they explained in a recent letter (pdf), that neither ccTLD operators nor their governments own these two-character strings. They believe ICANN is creating new rights.
So far, two-character domains have been banned by default in all new gTLDs. It was kind of a placeholder policy in order to get the new gTLD program launched a few years ago.
ICANN did enable the release of letter-number, number-letter and number-number strings in December, but made letter-letter combinations subject to government comments.
Following a GAC outcry last month, the comment periods were extended.
All comments were to be “fully considered”, but it wasn’t clear what that meant until the RySG asked and Atallah replied yesterday.
Some governments are already using the comment period to exercise their new veto.
The European Commission, for example, has objected to eu.credit, eu.creditcard, eu.auction, eu.casino, eu.bingo and eu.law.
The basis for the EU objections is in most of the cases: “The new TLD at hand corresponds to a regulated market in many EU countries. Its release might generate confusion and possible abuses at the end users level.”
It’s a wonder that the EU doesn’t seem to care about those strings in its own .eu ccTLD, where they’re all registered by people that I suspect may lack credentials.
Does credit.eu look to you like the registrant is a credentialed member of a regulated financial services industry? If he was, he may be able to afford a better web site.
The Commission also objects to eu.community, because:

the terms “EU Community” or “European Community” are widely used

That is true, which makes me wonder why the EU is allowing community.eu to languish parked at Sedo. You’d have to ask the Commission.
Israel, meanwhile, objects to il.casino, il.bingo, il.law, il.chat, il.bible, il.country, il.airforce, il.navy and il.army
The Vietnamese ccTLD registry has objected to several vn. domains, but it’s not clear to me whether it has veto authority.
Italy has objected to it.pizza, it.bingo and it.casino. Really, Italy? You’re objecting to “it.pizza”?
Côte d’Ivoire objects to all ci. domains.
Spain objects to es.casino, es.bingo and es.abogado.
Again, I invite you to check out bingo.es and casino.es and make a judgement as to whether the registrants are licensed gambling establishments.
Taiwan has vetoed the release of .tw in all city gTLDs (such as tw.london, tw.berlin etc) over a “concern that the release of above-mentioned domain names may cause the degradation of statehood”.
France has objected to “fr” in .archi, .army, .airforce, .bank, .bet, .bio, .casino, .cloud, .dentist, .doctor, .domains, .finance, .lawyer, .navy and .sarl.
Again again, several of these domains are just parked if you flip the words to the other side of the dot.
As a reminder, ICANN CEO Fadi Chehade said recently:

Come on guys, do not apply rules that you’re not using today to these new folks simply because it’s easy, because you can come and raise flags here at ICANN. Let’s be fair.