Music industry gets its ass handed to it by gTLD panel

The music industry-backed application for the new gTLD .music today suffered a humiliating defeat at the hands of a Community Priority Evaluation panel.
The Far Further (.music LLC) application scored a pitiful 3 out of 16 possible points in the evaluation, missing the required 14-point passing threshold by a country and western mile.
CPE is a way for applicants representing genuine communities to avoid an auction. If one applicant in a contention set wins a CPE, all the others must withdraw their applications.
But in this case the CPE panel went so far as to accuse the applicant of attempting to get its hands on a nice generic string by creating a new community, rather than by representing an existing one:

The Panel determined that this application refers to a proposed community construed to obtain a sought-after generic word as a gTLD. Moreover the applicant appears to be attempting to use the gTLD to organize the various groups noted in the application documentation, as opposed to applying on behalf of an already organized and cohesive community.

The application was backed by dozens of music industry trade groups and (by inference) thousands of their member associations and millions of individual members, spread over 150 countries.
But that wasn’t enough to persuade the CPE panel that “music” is even a “community” within the meaning of the ICANN new gTLD program’s Applicant Guidebook:

While the Panel acknowledges that many of the members in the proposed community share an interest in music, the AGB specifies that a “commonality of interest” is not sufficient to demonstrate the requisite awareness and recognition of a community among its members.

The panel pointed to the existence of legions of amateur musicians — estimated at 200 million — that do not identify with the community as defined in Far Further’s new gTLD application, which is restricted to the four million or so members of the application’s backers.
The panel found therefore that “there is no entity mainly dedicated to the entire community as defined by the applicant, nor does the application include reference to such an organization”.
The very fact that the Far Further application included reference to 42 trade groups, covering different facets of the music industry, seems to have counted against it. One overarching body dedicated to “music” in its entirety may have been enough to win the applicant some points.
The fact that the panel decided the community did not exist had a knock-on effect in other parts of the evaluation.
Has the community been around for a long time? No, because the community doesn’t exist. Is it a big community? No again, because the community doesn’t exist. And so on.
The only places Far Further managed to pick up points were on its registration policies, where it had promised to restrict registration to certain community members, and on community endorsement.
There are eight applicants for .music in total. One other, regular DI commenter Constantine Roussos’ DotMusic Limited, is also a Community application that is eligible for CPE.
It’s always seemed highly improbable that any .music applicant could pass CPE, but it’s looking even less likely for DotMusic after today’s result for Far Further.
.music, it seems, is heading to auction, where it is likely to fetch big bucks.

.now and .realestate will be restricted, but Donuts keeps .tires open

It was a battle between open and restricted registration rules this week, as three more new gTLD contention sets were resolved between applicants with opposing policies.
Donuts won .tires (open), Amazon won .now (closed) and the National Association of Realtors won .realestate (restricted).
Donuts beat Goodyear and Bridgestone — two of the biggest tire companies in the world — to .tires. Both withdrew their respective applications over the last week.
If it was an auction it was not conducted via the usual new gTLD auction houses. It seems like Donuts settled the contention privately (or maybe just got lucky).
Both tire companies had proposed single-registrant closed generic spaces. Donuts, of course, has not.
Goodyear has active dot-brand applications for .goodyear and .dunlop remaining. Bridgestone has active applications for .bridgestone and .firestone, also dot-brands.
Amazon, meanwhile, won the .now contention set over five other applicants — Starbucks HK, XYZ.com, One.com, Global Top Level and Donuts, which have all withdrawn their bids.
Amazon’s application for .now envisages a closed registry in which all the second-level domains belong to the company’s intellectual property department.
Also this week, the NAR, which already has the dot-brand .realtor under its belt, beat Donuts, Minds + Machines and Uniregistry to the complementary generic .realestate.
Unfortunately for estate agents worldwide, the NAR plans a tightly restricted .realestate zone, in which only its own members will at first be able to register, according to its application.
The application does seem to envisage a time when others will be permitted to register, however.
The organization said in a press release this week that .realestate will be more open than .realtor, but that full policies will not be released until next year.

“Frustrated” Morocco denies it supported .tata gTLD

The Moroccan government claims that it did not give its support to the .tata dot-brand gTLD, which was granted to Tata Group, the massive Indian conglomerate, in July.
According to Boubker Seddik Badr, director of digital economy at Morocco’s ministry of trade, .tata “did not receive any endorsement from any Moroccan authority”.
In a September 17 letter (pdf), he expressed his “surprise and very deep frustration” that .tata had been approved by ICANN regardless.
Under ICANN rules, .tata was classified as a “geographic” string because it matches the name of a Moroccan province found on an International Standards Organization list of protected names.
But Tata’s application was finally approved — it was the last bid to pass through evaluation — after a period Extended Evaluation. Its evaluation report (pdf) reads:

The Geographic Names Panel has determined that your application falls within the criteria for a geographic name contained in the Applicant Guidebook Section 2.2.1.4, and the documentation of support or non-objection provided has met all relevant criteria in Section 2.2.1.4.3 of the Applicant Guidebook.

The Guidebook states that letters of support or non-objection:

could be signed by the minister with the portfolio responsible for domain name administration, ICT, foreign affairs, or the Office of the Prime Minister or President of the relevant jurisdiction; or a senior representative of the agency or department responsible for domain name administration, ICT, foreign affairs, or the Office of the Prime Minister.

It’s not clear what documentation Tata provided in order to pass the geographic names review.
Tata Group is a family-owned, $103.27 billion-a-year conglomerate involved in everything from oil to tea to cars to IT consulting to airlines.
The company does not yet appear to have signed a Registry Agreement with ICANN for .tata.
ICANN is to hold its 52nd week-long public meeting in Marrakech, Morocco in February 2015.

OVH to give away 50,000 new gTLD names for free

France-based registrar OVH is to make up to 50,000 domain names in its new gTLD .ovh available for free.
According to its web site and a bulletin send to customers today, the regular price of £2.69 ($4.35) will be waived for the first year and renewal pricing will be discounted.
The first 20,000 names registered will renew at £1.01 ($1.63), the remaining 30,000 names will renew at £2.03 ($3.29). There will be a limit of five domains per customer.
While “free” is not an unusual business model in the new gTLD round, .ovh is noteworthy for several other reasons.
It’s the first “dot-brand” new gTLD to accept registrations from third parties, for starters.
It’s also the only live dot-brand belonging to an accredited domain name registrar.
The restrictions on the gTLD also raise eyebrows — in order to register a name in .ovh, you need an OVH customer number.
So while the .ovh names should in theory be available via third-party registrars, such registrars would have to capture the OVH customer number of their own customers — or encourage their own customers to become OVH customers — in order to process the registration.
Unsurprisingly, there’s no mention of any approved third-party registrars on the official .ovh web site.
General availability begins at 1000 UTC Wednesday October 2.
Thanks to Andrew Bennett for the tip.

.bayern starts GA with almost 20,000 names

Bayern Connect took its .bayern new gTLD into general availability yesterday and secured close to 20,000 registrations.
This morning’s zone file count shows that at least 19,121 domains were registered during .bayern’s combined sunrise/landrush period, which ended a few weeks ago.
GA kicked off at 1300 local time yesterday.
There are no local presence requirements to register names, according to the registry’s web site.
Bayern in the German word for Bavaria, Germany’s second most-populous state. It has 12.5 million inhabitants, 1.5 million of whom live in its capital, Munich.
It’s the third most-successful geographic gTLD launch of the current round, after .london’s 35,000 names and .berlin’s 33,000.
On a per-head basis, however, the numbers don’t look so good.
While .koeln, the gTLD for the city of Cologne, had one registered domain for every 79 inhabitants at the end of its first GA day, .bayern has one domain per 663 people. The numbers for .berlin and .london were 106 and 240 respectively.

Safeway pulls all four new gTLD apps

Retail giant Safeway has removed itself from the new gTLD program entirely, last week withdrawing all four of its applications.
The $139-billion-a-year company had applied for the dot-brands .safeway, .vons, .justforu and the generic .grocery, but all four bids are now showing as withdrawn.
Now that Safeway has withdrawn, the only remaining applicant for .grocery is rival retailer Wal-Mart.
.grocery had been applied for as a “closed generic”, in which Safeway would be the only eligible registrant.
The ICANN Governmental Advisory Committee had advised against closed generics on consumer protection grounds.
When ICANN pressed applicants for such strings to clarify whether they were in fact “closed generics”, Safeway denied (pdf) that .grocery was.
Wal-Mart, on the other hand, said that its .grocery would be restricted to Wal-Mart and its affiliates.

Second new gTLD round “possible” but not “probable” in 2016

If there are any companies clamoring to get on the new gTLD bandwagon, they’ve got some waiting to do.
Based on a sketchy timetable published by ICANN this week, it seems unlikely that a second application round will open before 2017, and even that might be optimistic.
While ICANN said that “based on current estimates, a subsequent application round is not expected to launch until 2016 at the earliest”, that date seems unlikely even to senior ICANN staffers.
“The possibility exists,” ICANN vice president Cyrus Namazi told DI, “but the probability, from my perspective, is not that high when you think about all the pieces that have to come together.”
Here’s an ICANN graphic illustrating these pieces:

As you can see, the two biggest time-eaters on the road-map, pushing it into 2017, are a GNSO Policy Development Process (green) and the Affirmation of Commitments Review (yellow).
The timetable envisages the PDP, which will focus on what changes need to be made to the program, lasting two and a half years, starting in the first quarter 2015 and running until mid-2017.
That could be a realistic time-frame, but the GNSO has been known to work quicker.
An ICANN study in 2012 found that 263 days is the absolute minimum amount of time a PDP has to last from start to finish, but 620 days — one year and nine months — is the average.
So the GNSO could, conceivably, wrap up in late 2016 rather than mid-2017. It will depend on how cooperative everybody is feeling and how tricky it is to find consensus on the issues.
The AoC review, which will focus on “competition, consumer trust and consumer choice” is a bit harder to gauge.
The 2009 Affirmation of Commitments is ICANN’s deal with the US government that gives it some of its authority over the DNS. On the review, it states:

If and when new gTLDs (whether in ASCII or other language character sets) have been in operation for one year, ICANN will organize a review that will examine the extent to which the introduction or expansion of gTLDs has promoted competition, consumer trust and consumer choice, as well as effectiveness of (a) the application and evaluation process, and (b) safeguards put in place to mitigate issues involved in the introduction or expansion.

The AoC does not specify how long the review must last, just when it must begin, though it does say the ICANN board must react to it within six months.
That six-month window is a maximum, however, not a minimum. The board could easily take action on the review’s findings in a month or less.
ICANN’s timeline anticipates the review itself taking a year, starting in Q3 2015 and broken down like this:

Based on the timelines of previous Review Team processes, a rough estimate for this process is that the convening of the team occurs across 3-5 months, a draft report is issued within 6-9 months, and a final report is issued within 3-6 months from the draft.

Working from these estimates, it seems that the review could in fact take anywhere from 12 to 20 months. That would mean a final report would be delivered between September 2016 and July 2017.
If the review and board consideration of its report take the longest amount of time permitted or envisaged, the AoC process might not complete until early 2018, a little over three years from now.
Clearly there are a lot of variables to consider here.
Namazi is probably on safe ground by urging caution over the hypothetical launch of a second round in 2016.
Given than new gTLD evaluations were always seen as a “rolling” process, one of the things that the GNSO surely needs to look into is a mechanism to reduce the delay between rounds.

Afilias loses Chinese .info as seven more new gTLD auctions conclude

Today news has reached us via various channels that seven new gTLD contention sets have been settled, all is seems via private auction.
Notably, Afilias has lost the opportunity to run the Chinese-script version of its 14-year-old .info TLD to Beijing Tele-info Network Technology Co, the only other applicant.
The Beijing company’s application says the string .信息 means: “knowledge or message in the form suitable for communications, storage, or processing, which is closely related to notions of form, meaning, pattern, perception, representation, and entropy.”
Afilias said it means “info”.
Separately, in a press release today, Minds + Machines said that it has won the auctions for two gTLDs — .law and .vip — and lost the auctions for several more.
In .law it beat NU DOT CO, Donuts, Radix, Merchant Law Group and Famous Four Media. In .vip it beat Google, VIP Registry, Donuts, I-Registry and Vipspace Enterprises.
From the auctions M+M said it lost we can infer that .design and .realestate contention sets are also now settled, but we haven’t seen any withdrawals yet so we don’t know the winners.
M+M said it netted $6.2 million cash by winning .law and .vip and losing .design, .flowers, .group, .realestate and .video.
From today’s new withdrawals we can see that Uniregistry won .auto against Fegistry, Donuts and Dot Auto, while Donuts won .memorial against Afilias and dotCOOL.
UPDATE: Thanks to Jim in the comments for the reminder that the “Chinese .info” auction happened back in June. The TLD fetched $600,000 at an ICANN last-resort auction.

M+M turns profit on the back of gTLD auctions

Minds + Machines posted an operating profit of almost £3 million ($4.9 million) for the first half of the year, almost entirely driven by the proceeds of losing new gTLD auctions.
The registry record a profit to June 30 of £2.9 million on revenue of $68,000.
The “profit on gTLD auctions” line item that permitted that seemingly impossible profit number was £7.1 million ($11.6 million), based on M+M losing eight out of 12 private auctions.
The company had £22 million ($36 million) in cash and other current assets on its balance sheet at the end of the period.
None of M+M’s big TLDs had launched in the first half, hence the low revenue. Since the half ended, .london has proven successful and several more new gTLDs wholly or partially owned by M+M have also launched.
In his statement to the market, chair Fred Krueger said:

A key variable in our financial position is the dynamic of private auctions, which we have embraced, and which has worked tremendously to our advantage. We believe that our current still contested strings represent significant assets which we have the potential to monetize either to further our existing new TLDs or to purchase additional new TLDs at auction.

He also reiterated CEO Antony Van Couvering’s call for a new metric to track gTLD registry health that is based on revenue-per-domain rather than simple volumes.
His outlook for new gTLDs was arguably less cautious than his counterpart at CentralNic, which reported its half-year numbers yesterday and talked of demand “falling short of industry expectations”.
Krueger said:

Name registration data available to-date indicates a strong opening for a variety of new products/domains, and also shows that we are still very early in the adoption curve for new TLDs. We expect that the growth of almost all new TLDs will likely follow an “S curve”, as it historically has for newly launched TLDs, rather than a straight line.

He also reconfirmed that M+M plans to aggressively pursue its new integrated registrar business as a means to drive growth in its gTLDs, rather than simply relying on the channel.

.ooo sales targets are batshit crazy

New gTLD registry and e-commerce network Infibeam, which is taking its .ooo TLD to sunrise today, has been bandying around some truly wacky registration predictions in the Indian press today.
The company’s founder told one local paper, the The Hindu’s BusinessLine, that .ooo will have volumes that dwarf .xyz and a literally impossible number of sunrise registrations.
I’m not going to link to the article itself because the BusinessLine website, probably via an embedded ad, tried to download malware onto my machine. The headline is “Infibeam to offer ‘.ooo’ for ‘.com-savvy’ netizens” if you want to Google it.
Here’s an extract, however, which quotes Infibeam founder Vishal Mehta:

The company is targeting 35,000-40,000 trademark registered companies along with several SMEs.
“The new GTLD is the first of a kind initiative by any e-commerce company. Over the next 6-12 months we expect to get about 1-2 million domain registrations under .ooo,” Mehta told BusinessLine.

This is nuts for at least two reasons.
First, Infibeam seems to be expecting 35,000 to 40,000 sunrise registrations.
That’s impossible.
The .ooo sunrise period starts today, when there’s just shy of 33,000 trademarks listed in the Trademark Clearinghouse.
A TMCH listing is of course required to buy a name at sunrise, so even if every mark in the TMCH converted to a .ooo name — which they won’t — the TLD still couldn’t hit the bottom end of its projection.
In reality, .ooo will be lucky to hit 500 sunrise registrations, just like every other gTLD this year.
Second, the only way Infibeam is going to get one to two million registered domains in six to 12 months is if the company not only gives them away for free, but actually forces them upon registrants without their consent.
The registry with the most number of registrations to date is .xyz, which has about 517,000 domains in its zone file today. It’s managed that feat in three and a half months largely by giving the names away for free to its registrars’ customers whether they want them or not.
Conceivably, Infibeam could do the same with .ooo, but that wouldn’t be especially helpful to its application commitment to make the gTLD “synonymous with trust and consumer choice”.
Indeed, its application talks exclusively about offering .ooo names to existing Infibeam customers.
Could the company leverage its BuildaBazaar e-commerce network to create quickly a substantial base of registrations?
It web site talks of a “billion dreams” and a “billion stores” and its .ooo gTLD application states: “Our goal is nothing less than providing a billion stores for a billion people.”
According to the application, Infibeam will try to persuade its BuildaBazaar customers to upgrade to a premium package that includes a .ooo domain name for their stores.
All Infibeam would need to do would be to convert 0.1% of its billion-strong BuildaBazaar customer base to .ooo domain names and it could hit one million registrations almost overnight.
That would assume that BuildaBazaar has a billion stores, of course. It doesn’t. It has 20,000 stores.
So where are the “1-2 million domain registrations” over the “next 6-12 months” going to come from?
Beats me.
I hope for Mehta’s sake that he was misquoted because otherwise I suspect he’s going to be very disappointed very quickly.