Democrat congressman sides with France on .wine

US Representative Anna Eshoo has written to ICANN’s top brass to express “deep concerns” about the .wine and .vin new gTLDs and urge that they be permanently killed off.
In a letter (pdf) to CEO Fadi Chehade, Eshoo wrote:

it’s my understanding that the .wine and .vin gTLDs have been met with fierce opposition from the wine industry, both here in the US and around the world. Given these concerns, coupled with the complexities of reaching agreement on Geographic Indications (GIs), I urge you to advocate for the .wine and .vin gTLDs to be permanently withdrawn from consideration.

Eshoo, a Democrat, is breaking rank with the official position of the Obama administration on this, which is that no special treatment is warranted for the two wine-related gTLDs.
Europe, on the other hand, is vehemently opposed to the introduction of either without strong protection for GIs.
At ICANN 50 in London last week the European Commission and France led the charge against approval of the gTLDs, with the Commission even floating the idea of legal action at one point.
France, meanwhile, seems ready to throw ICANN’s ambitions for independence under a bus in order to get what it wants.
Eshoo is ranking member of the House Communications and Technology Subcommittee, which recently passed the DOT-COM Act over her protestations that it was “embarrassing”.
She also represents the Silicon Valley area of northern California, which is known for its wineries.
While a handful of US winemakers do have a decidedly European attitude to GI protections, the US Governmental Advisory Committee delegation last week said that only a few out of “thousands” agree with France.

GAC rejects multistakeholderism, tells ICANN to ignore the GNSO

The Governmental Advisory Committee has advised ICANN to do as it’s told and stop listening to the views of other stakeholders, on the issue of protection mechanisms for the Red Cross.
In a barely believable piece of formal advice to the ICANN board this morning, part of its London communique (pdf), the GAC said:

the protections due to the Red Cross and Red Crescent terms and names should not be subjected to, or conditioned upon, a policy development process

That’s the GAC telling the ICANN board to do what the GAC says without involving the rest of the ICANN community, specifically the multi-stakeholder Generic Names Supporting Organization.
Some in the GNSO have already informally expressed their anger about this. More, and more formal, responses are expected to follow.
It’s a baffling GAC move given that most governments have spent much of the ICANN 50 meeting this week professing how much they support the multi-stakeholder model of internet governance.
Now the GAC is explicitly telling ICANN to ignore anyone that isn’t the GAC, on this particular issue.
That’s unprecedented, though many would say that GAC statements often sound like the existence of other advisory committees and supporting organizations is little more than an annoyance to members.
During a meeting between the ICANN board and the GAC on Tuesday, UK GAC member Mark Carvell expressed some of that frustration, saying ICANN’s approach to the issue has been “completely unacceptable”.
Carvell said:

we’re talking about names that are protected under international law and implemented in national legislation
So, for example, if you go down Pride Street around the corner, you won’t find Red Cross Burgers. You won’t find Patisserie Croix Rouge in Paris anywhere, or in London, indeed, because it’s against the law to use those names.
So the response that we’ve had from the Board is equating these names to trademarks by referring to the GNSO response, saying that this is a matter for incorporation of policy development that would use the trademark clearinghouse.
So I just wanted to make the point here that this is completely unacceptable to us. We’re in a position as governments and administrations in implementing national law. So our advice continues to be that these names need to be protected and not subject to some policy development process that equates these names to trademarks
and brands.

That point of view seems to have translated directly into the GAC’s communique today.
The GAC statement is doubly baffling because the Red Cross and Red Crescent already enjoy protections in the new gTLD program, and the GNSO has voted to make these protections permanent.
The GAC has been pushing for protections for the Red Cross for years.
It’s a noble effort in principle, designed to help thwart fraudsters who would use the Red Cross brand to bilk money out of well-meaning internet users in the wake of human tragedies such as earthquakes and tsunamis.
The ICANN board of directors first agreed to adopt such protections in 2011, when it approved the new gTLD program.
Red Cross protections were added to the program rules then on a temporary basis, pending a formal GNSO policy on the matter.
The GNSO took a while to get there, but it formally passed a resolution in November last year that would protect a list of Red Cross organizations at both the top and second levels in the new gTLD program.
So what’s the GAC’s problem?
ICANN director Chris Disspain asked Carvell during the Tuesday GAC-board session. Carvell responded:

I’m talking about our advice with regard to protection of national entities at the second level. So, for example, British Red Cross dot whatever. That protection does not exist, and is not agreed as we understand it.

The original list of Red Cross/Red Crescent strings for which the GAC demanded protection includes strings like “redcross” and “croissant-rouge”, but it does not include strings such as “americanredcross”.
There are 189 national Red Cross organizations that are not currently protected, according to the GAC.
Why are these strings not on the list?
It appears to be because the GAC didn’t ask for such protections until March this year, six months after the GNSO concluded its PDP and close to three years after the temporary protections were originally implemented.
The GAC communique from the latest Singapore meeting (pdf) contains a request for national Red Cross organizations to be protected, but I can’t find any matching GAC advice that predates March 2014.
The GAC seems to have screwed up, in other words, by not asking for all the protections it wanted three years ago.
And now it’s apparently demanding that its new, very late demands for protection get implemented by ICANN without a PDP and with no input from any other area of the ICANN community.
The GAC spent a lot of time this week talking up the multistakeholder process, but now it seems prepared to throw the concept under a bus either in the name of expediency or to cover up the fact that it seriously dropped the ball.
Nobody can deny that its heart is in the right place, but is abandoning support for multistakeholderism really the best way to go about getting what it wants, at a time when everyone is claiming governments won’t control the newly liberated ICANN?

Euro govs livid as ICANN takes .wine off ice

The new gTLD applications for .wine and .vin are now live again, raising the ire of European governments.
ICANN chair Steve Crocker has written to the European Commission, along with the governments of France, Spain and the US that the three applications are once again being processed.
That’s after a 60-day temporary freeze, ostensibly in order to give the governments more time to push applicants for geographic indicator protections, expired earlier this month.
Geographic indicators are terms such as “Champagne” and “Bordeaux” which are protected under European law — they have to be produced in those regions — but not in the US and other non-EU countries.
France is expected to point to the .wine controversy as evidence of how ICANN is deficient as an organization.
“The problem is it is totally opaque, there is no transparency at all in the process,” Axelle Lemaire, minister for digital affairs, told the Financial Times today.
France also reckons ICANN’s decision will impact transatlantic trade negotiations unrelated to the domain name industry, the FT reported.
Lemaire’s comments about transparency are odd, given that pretty much the entire debate — whether in person at ICANN meetings or through correspondence — has been put on to the public record by ICANN.
The issue seems to be rather than the ICANN process does not give national governments a means to push their agendas onto the industry unless all participating governments agree.
The Governmental Advisory Committee was unable to come to a consensus on .wine and .vin — EU states wanted strong protection for GIs, but the US, Canada and Australia disagreed.
Lacking GAC consensus, ICANN had no mandate to act on requests for individual government requests.
But when its board decided to move ahead on the new gTLDs in March, the GAC noted that its process for making the decision may have broken its bylaws.
The EC, UK, France, Spain, Italy, Portugal, Luxembourg and Switzerland then filed formal Requests for Reconsideration with ICANN, asking for the decision to be overturned.
Those RfRs were rejected by ICANN’s Board Governance Committee a month ago.
Last week Crocker wrote to governments on both sides of the debate to confirm that, with the 60 days expired and no outstanding GAC advice, .wine and .vin will proceed to contention resolution and contracting as normal.
The letters are all pretty much the same, with Crocker explaining the process to date and suggesting again that ICANN be not be the best forum for governments to hash our their disagreements over GI protections.
Crocker told (pdf) EC vice president Neelie Kroes:

should the GAC be in a position to provide any additional advice on this issue, we would welcome it. Similarly, should governments succeed in resolving these issues in other global trade fora such as the WTO [World Trade Organization] that, too, will be taken into account.

Expect the debate to continue this week at ICANN 50, the public meeting that kicked off in London yesterday.
The EU and its most-affected member states are not going to let this die.

New gTLDs now outnumber the old TLDs

There are now more 2012-round new gTLDs alive on the internet than there are legacy TLDs.
With today’s addition of five new strings, including .brussels and .surf, there are now 312 delegated new gTLDs and 308 others in the DNS root zone file.
The legacy TLD count includes the original eight gTLDs such as .com and .gov, 285 ccTLDs (including 36 IDN ccTLDs), and 15 gTLDs added by ICANN in the 2000 and 2003 rounds.
With just shy of 1.2 million domains under management (including all the registry-reserved and freebies) the new gTLD program currently accounts for about 0.4% of all registered names.
About 140 new gTLDs are in general availability. The rest have been delegated but are either in sunrise periods or pre-sunrise periods.

ICANN smacks new gTLDs for pre-sunrise auctions

Running a premium domain name auction before you’ve finished your new gTLD sunrise period is Officially Not Cool, according to ICANN’s compliance department.
People who won premium new gTLD domains in auctions that took place before sunrise periods now face the possibility of losing their names to trademark owners.
.CLUB Domains, and probably XYZ.com, operators of .club and .xyz, two of the highest-volume new gTLDs to launch so far, appear to be affected by the ICANN decision.
ICANN told .CLUB that its “winter auction“, which took place in late February, may have violated the rules about allocating or “earmarking” domains to registrants before sunrise takes place.
Meanwhile, NameJet has cancelled the auction for deals.xyz, which “sold” for $8,100 late last year, suggesting that .xyz’s pre-sunrise auction is also considered ultra vires.
ICANN told .CLUB that its auction sales “constitute earmarking” in violation of the rule stating that registries “must not allow a domain name to be allocated or registered prior to the Sunrise period”.
.CLUB had told its auction winners that a sunrise period registration would prevent them from getting the domain they wanted and that they would be refunded if a sunrise registrant emerged.
But ICANN evidently told the registry:

Irrespective of whether “[a]llocation was expressly conditioned upon any Sunrise claim,” or whether any Sunrise claim was made, the pre-selection, pre-registration or pre-designation to third parties, in this case via .Club Domains’ “winter auction,” constitutes improper allocation.

I kinda thought this would happen.
Back in November, when XYZ.com ran its first .xyz auction — about six months before its sunrise even started — CEO Daniel Negari told us he believed it was “comfortably within the rules“.
We said the auction “seems to be operating at the edge of what is permissible under the new gTLD program’s rights protection mechanisms, which state that no domains may be allocated prior to Sunrise.”
I’ve not yet been able to definitively confirm that .xyz is affected by this ICANN decision, but .club definitely is.
.CLUB Domains told its auction winners today that the names they won are now subject to a 60-day period during which they could be obtained by trademark owners.
If no trademark owner claims the name, .CLUB said it will give the auction winner a 10% rebate on their purchase price.
The email states:

We are placing the domain on hold for 60 days, during which time a Trademark Clearinghouse (TMCH) holder will have the opportunity to purchase the domain at Sunrise rates. Although, the domain is not currently in the TMCH, if a trademark holder should file in the TMCH over the next 60 days, the domain will be offered to that registrant. However, if the name is not claimed by filing in the TMCH over the next 60 days, your transaction will move forward as planned.
Although we disagree with ICANN compliance’s position on this matter, the actions we are taking are necessary to ensure that we are not offside with ICANN compliance in any way. We understand that you have been caught in the middle of this issue due to no fault of your own. Given these circumstances, we are offering you two options:
1) Should you decide to complete this transaction, we will issue you a payment of 10% of the purchase price after the transaction closes in 60 days, assuming the name is not registered by a TMCH mark holder because of the delay.
2) At any time during the 60 day period you have the option to rescind the auction bid and not purchasing the domain.

dotBERLIN pulls plug on free domain giveaway

The .berlin registry has apparently halted the promotion that has given away tens of thousands of free domain names, citing unexpectedly high demand.
According to 101domain, a registrar that started giving away .berlin domains for free yesterday:

As of 1pm PST today, June 18th, the free .BERLIN promotion will unfortunately come to an end.
According to the dotBERLIN registry, demand was exceedingly above their anticipated volumes, so they have decided to pull the plug early.

The promotion, which led to domainers registered tens of thousands of names, was due to end on Friday.
Why has dotBERLIN pulled the plug? I have to wonder whether it is related to the company’s own registration policies, which are not particularly domainer-friendly.
The .berlin TLD started today at 121,193 names, according to its zone file, up 5,227 on the day.
Over 70,000 of those names were registered in the last two days, and most of those are believed to be freebies handed out by InternetX and, as of yesterday, 101domain.
As we reported yesterday, one domainer, DomainProfi, is responsible for over 23,000 of these registrations.
Another massive registrant, as DNW reported today, is Sedo-affiliated DomCollect, part of the same group (United Internet) as InternetX. It has over 30,000 .berlin names.
It’s difficult to see any of these names being developed or used in any meaningful way — they seem to be currently parked — yet the dotBERLIN registration policy may require it.
The English translation of the policy (pdf) states:

5.2. Conditions for the content and use of domain names
As the gTLD .BERLIN is a so-called “community based” gTLD, where the registration of domain names is subject to restrictions, a domain name must be put into use within 12 months of registration.
If the registrant sets up a web site which can be reached via the registered domain name, the content of this site must have be directly related to the authorisation to register

The first part of that seems simple: you have to “use” the domain within a year or risk losing it.
The “authorisation to register” appears to be the registrant’s self-declared “economic, cultural, historical, social or other connection to the German capital, Berlin”.
I interpret the two paragraphs together to read: “You must use the name in a manner that reflects your connection to Berlin”.
Does this mean parking is prohibited? There’s nothing explicit banning it, but I’d say it’s definitely a grey area. It seems to be down to the decision of the registry.
I asked dotBERLIN for clarification this morning but have not yet received one.
For the registrants, there seems to be little risk, however. They haven’t paid for their names and probably don’t intend to renew any that they can’t sell before renewal time.

Are you ready to sell your new gTLD yet?

Applicant Auction wants to know.
The company, which was set up to help resolve new gTLD contention sets, has started pitching its services to the owners of gTLDs that are already delegated.
An email sent out to applicants this week says:

Many people approach us with interest in purchasing strings, so we are offering a new auction where gTLD owners can sell their string in a open auction.

I gather that the company is targeting both live registries and applicants for uncontested strings.
It’s sad to say, but I think there might even be a market for it.
The laid-back “if we build it, they will come” mentality among applicants seems to have been a lot more prevalent than I had anticipated, which has resulted in depressing sales for some new gTLDs.
Will any of them decide to cash out early rather than putting in the time and money to make their businesses work over the long haul? It remains to be seen.

.berlin rockets to 116k on free domain offer

A promotion from dotBERLIN saw .berlin more than double its registration count yesterday, as speculators (apparently) swooped to claim over 61,000 free domain names.
The new gTLD ended the day with 115,966 domains in its zone, up 67,347 or 138% on the day.
That makes it the number two new gTLD again, snipping at the heels of .xyz, which has 144,474 names.
But, like .xyz, the numbers are not an accurate reflection of demand.
Giving away free domains seems to be the way to go if you want to quickly rack up your registration count with scant regard for actual end user purchases or renewal rates.
dotBERLIN said yesterday that it was celebrating 50,000 registrations with a five-day offer seeing registrars sell the names for no more than €5.55 ($7.53).
But some registrars are actually offering them for free.
InternetX is one such registrar, and it appears to have taken the vast, vast majority of all the new .berlin registrations yesterday.
Digging into name server records, it appears that at least 61,000 names were registered via InternetX-owned registrars. Of those, over 23,000 appear to have been registered to a single domainer.
InternetX, to the best of my knowledge, wasn’t forcing the domains on its customers, which is what Network Solutions did with .xyz.
According to its web site, the offer was limited to 50 domains per customer, though there appears to be an option to purchase obtain more.
The domainer with the cache of 23,000 names appears to be an InternetX reseller.
The numbers are big, and they may well convert into revenue-generating renewals for dotBERLIN, but right now I don’t think they’re especially reflective of demand among end user registrants.

Donuts wins .immo gTLD

Donuts has acquired the .immo new gTLD after its three rival bidders withdrew their applications.
Minds + Machines, dotimmobilie and Starting Dot have all withdrawn from the contest in the last few days, presumably due to an auction.
Starting Dot had applied for a Community Priority Evaluation, which would have allowed it to avoid an auction altogether, but it failed to score enough points to pass.
“Immo” is short for “immobilien”, which means “real estate” in German. The contraction is also widely used in other European countries, potentially making it more attractive a string.
The gTLD will compete with .immobilien, which is delegated to RightSide. That TLD has been in general availability since May 28 and has 5,136 domains under management as of today.
It would be fascinating to know whether .immobilien’s performance to date had any bearing on how much the applicants were prepared to bid at auction. But, as usual, I doubt we’ll ever know for sure.

Donuts spends $50 million on new gTLD auctions

Donuts has revealed that its bill for new gTLD auctions has so far come to $50 million.
That, coupled with some other data released in a blog post last week, suggests that it’s spent over $2 million, on average, per gTLD.
CEO Paul Stahura wrote that the company has participated in “roughly” 50 auctions and that it’s won more than 50% of those it’s participated in.
“We’ve spent $50M to win those auctions to secure the resulting TLDs,” Stahura wrote.
According to my numbers, Donuts has been in 45 auctions and won 23. I may be missing a couple, but the numbers fit with Stahura’s. That would make an average spend of $2.17 million per gTLD.
That doesn’t mean the company has burnt through $50 million of its funding, of course.
In private gTLD auctions, the winner pays the losers. By losing at least 22 auctions, Donuts could just as easily be breaking even.
Not all of Donuts’ auctions have been organized by Applicant Auction. A few were settled via other means. Applicant Auction takes a 4% cut, which means its take so far is approaching $2 million.