It’s hustings season at Nominet

Hustings are very much in vogue in the UK right now. Two Conservative politicians have been clouding our airwaves, bickering over who should lead the country, for weeks, and now two candidates to join the board of .uk registry Nominet are following suit.

The London Domain Name Summit, a two-day, free-to-attend domainer conference in London next week, will host a debate between local lads Jim Davies and Kieren McCarthy, two of the three candidates for an opening non-executive director spot on Nominet’s board.

CentralNic lawyer Volker Greimann, the third candidate, who is based in Germany, will not be in attendance.

The debate between reporter McCarthy and IP lawyer Davies will take place next Tuesday at 1600 local time (1500 UTC) and will apparently be live-streamed for people not able to attend in person.

McCarthy, who according to Twitter chatter is a paid-up exhibitor, also gets a solo speaking spot on Monday at 1830 local time. Nominet, not an exhibitor, is hosting an event the same day.

All three candidates are standing for election at a time when Nominet has recently come under new leadership after several years of scandal that cumulated last year in a member coup.

The latest controversy emerged last month when it came out that Nominet blew about $23.5 million on an abortive attempt to get into the security market in the US, something the candidates all hope to address.

According to Nominet, all three candidates have their candidacy statements published in the members area of the web site. Davies and McCarthy have also published commentary on their respective blogs.

Voting opens September 12.

Nominet sold security unit for a dollar after blowing $23.5 million

Nominet has found itself out of pocket to the tune of $23.5 million after selling its CyGlass network security business for a dollar.

Chair Andrew Green told members last week that the .uk registry sold CyGlass to a group of its employees for the nominal sum after deciding to divest itself of non-core businesses. He said in an email:

As our involvement in CyGlass is now at an end, I am in a position to share the approximate cost of the unsuccessful investment in CyGlass with members. In addition to the $6.3m cost of purchase, Nominet invested around $16.0m in supporting the ongoing running cost of the business. Costs associated with closure will be c$1.2m – approximately equivalent to continuing to support the business for a further two months. That totals c$23.5m. Converting back to GBP over a relatively long period is complex, but the total cost over 2+ years is approximately £18m.

At the time it was sold, it was costing Nominet $600,000 a month to keep CyGlass running, he said.

The strategy of diversification from the core registry business was made under previous management and ultimately was partly the cause of last year’s boardroom bloodbath that eventually led to Green’s appointment on a back-to-basics platform.

Green told members that CyGlass “struggled as a result of changing work patterns following the Covid pandemic”, adding:

While there has been continuing interest in the offering from customers, the pipeline of opportunities has been slow in converting to new long-term customers. As a result Annual Recurring Revenue – a key driver of investor interest – has been growing imperceptibly

Now independent, CyGlass recently told the security trade press it is seeking partnerships to drive growth.

Nominet opens directorship nominations

.uk registry Nominet has opened the nomination period for one of its elected non-executive directors.

The are four elected NEDs on the company’s board, and Anne Taylor’s three-year term is up this year.

Only members may nominate, but you don’t need to be a member to be nominated.

Nominations are open until June 17, elections take place in September, and the winner takes his or her seat in October.

The pay is £37,000 per year, for up to 30 days’ work.

More details can be found here.

Meds regulator won’t say why it gets domains suspended

The UK Medicines and Healthcare products Regulatory Agency has declined to reveal which .uk domain names it has had suspended and the reasons for having them suspended.

In response to a freedom of information request published last week, the agency said it had 32 domains suspended in the last 12 months — it appears that refers to the 12 months to November 2021 — but declined to list them.

It said most of the domains were being used to breach the Human Medicines Regulations 2012, which regulates the sale of medicines, but declined to give specifics, citing a FOI carve-out related to ongoing investigations.

The MHRA said that it does not have a formal suspensions policy.

The agency is one of several that regularly asks .uk registry Nominet to take down domains believed to be involved in criminal behavior. The Police Intellectual Property Crimes Unit submits by far the largest number of such requests.

.au names available today

Australians are able to register domain names directly under .au for the first time today, after ccTLD registry auDA liberalized its hierarchy.

Second-level names under .au will at first only be available to existing registrants of matching third-level names in zones such as .com.au and .net.au, under a priority allocation process.

This process lasts for six months and allows domain owners to claim their matching 2LD more or less immediately, assuming there are no other registrants with matching rights.

In cases where more than one registrant applies for the name domain — such as when example.com.au and example.net.au are owned by different people — a contention process kicks in.

Registrants with reg dates before the cut-off of February 4, 2018 get priority over those with later dates.

If there are only registrants with names newer than the cut-off date, the oldest one gets priority.

If there are only registrants with names older than the cut-off date, they’ll have to come to a bilateral agreement about who gets the name. If they can’t come to a deal, the name stays reserved, and the applicants will have to renew their applications annually, until only one applicant remains.

There are no auDA-backed auctions envisaged by the process.

Any domains that are unclaimed at the end of the priority process will be released into the available pool on September 20.

It’s a much shorter grandfathering period than other liberalized ccTLDs, such as Nominet, which gave .co.uk registrants five years to claim their matching 2LD, and it will be interesting to see what impact this has on uptake.

Direct .uk domains became available in June 2014, and six months later barely a quarter million had been registered, against over 10 million third-level names.

As the five-year priority window drew to a close in 2019, there were about 2.5 million .uk 2LDs, but this spiked to 3.6 million in the final month, as registrants waited until the last minute to claim their names.

That turned out to be the peak — .uk 2LDs stand at fewer than 1.4 million today, compared to the 9.7 million third-level names. It’s still quite rare to spot a direct .uk name in the wild here.

One interesting kink in the priority process is that auDA, which has stricter rules than many other ccTLDs, will check that anyone who applies for a 2LD is in fact eligible for the 3LD they currently hold, which could dissuade applications.

.au currently has 3.4 million third-level domains under management.

Nominet cuts off Russian registrars

Russian registrars will no longer be able to sell .uk domains, due to the war in Ukraine, Nominet announced today.

“We are not accepting registrations from registrars in Russia — we are suspending the relevant tags,” the registry said.

A “tag” is the unique identifier Nominet issues to its registrars to enable them to access the .uk registry.

I believe it’s the first example of a national domain registry taking action against Russian companies in response to the invasion of Ukraine.

While Nominet is independent, it’s pretty tight with the UK government, which with international partners has implemented some quite tough economic sanctions against Russia.

Nominet said that the “very small” number of existing domains with Russian addresses “will continue to operate as normal”.

Other measures the company announced include a £200,000 donation to the war relief effort, a reduction of its roughly £100,000 of investments in Russian companies to about £1,000, and the monitoring of new .uk registrations for possible Ukraine-related scams.

Other domain companies to announce what effectively amount to sanctions against Russia include Namecheap, Sedo, IONOS, GoDaddy and CENTR.

ICANN has also offered money to Ukraine and concessions to Ukrainian registrants, though the latter may also apply to Russians.

Cybersquatting cases down in .uk

The number of cybersquatting complaints, and the number of successful cybersquatting complaints, were down in .uk last year, according to new data from local registry Nominet.

Nominet said that its Dispute Resolution Service, which has a monopoly on .uk disputes, handled just 548 cases in 2021, the lowest number in the 20-year history of the DRS.

Only 43% of the complaints resulted in the domain being transferred, Nominet said. That’s down from 46% in 2020, 47% in 2019 and 49% in 2018, it said.

The trends fly in contrast to the UDRP, as least in WIPO’s experience in 2021, where cases were soaring.

General counsel Nick Wenban-Smith said in a press release:

Despite the worldwide shift towards online activity during the pandemic, and WIPO disputes on the increase, we haven’t seen a parallel pick up in the number of .UK domain name disputes for the past two years, but instead are reporting a record low in Complaints filed since the DRS launched back in 2001. We hope this is a result of our continued efforts to make .UK a safe place to be online.

Nominet has some pretty strict takedown practices in place — it will suspend a domain if the police’s intellectual property crime unit tells it to, which could clearly have an impact on the need to employ the DRS.

Nominet names Paul Fletcher new CEO

Nominet has named Paul Fletcher as its new CEO.

He’ll join the company in February, filling the spot vacated by Russell Haworth, who quit earlier this year a few days before he could be fired by members.

Fletcher is currently CEO at BCS, the Chartered Institute for IT, Nominet said. BCS, formerly the British Computer Society, is also a membership organization, with 60,000 members.

Nominet is currently headed by interim CEO Eleanor Bradley, one of the directors removed from the board at the company’s fractious Emergency General Meeting in March.

Fletcher will join the board at the same time as he joins Nominet, the company said.

Architect of Nominet boardroom bloodbath and Tucows backer win director seats

UK registry Nominet has announced the winners of its non-executive director election, with Simon Blackler securing a runaway victory. Ashley La Bolle of Tucows was also elected, with a strong share of the votes.

Blackler is the architect of the PublicBenefit.uk campaign, which was behind a boardroom bloodbath earlier this year, and La Bolle is director of domains at Tucows, the biggest registrar name to support that campaign.

According to Nominet, Blackler secured 1,285,370 of the 2,558,650 votes in the first-preference round of voting, a smidge over 50%. La Bolle got 750,447 votes, 29.3%, at the same stage, picking up the extra she needed after votes were transferred.

The other four candidates all received 7% or less of the votes in the first-preference ballot.

Voting was based on how many domain names members control, capped at 3% to avoid too much capture by the larger registrars.

Nominet said that turnout was 24.3% — 553 of the 2,276 eligible voters actually cast a ballot.

Blackler and La Bolle will join Nominet’s board at its next Annual General Meeting, which happens this Thursday.

They replace domain investor David Thornton, who had stood for reelection but received less than 6% of the first-round votes, and GoDaddy policy veep James Bladel, who did not stand.

Blackler, who runs the registrar Krystal Hosting, started the PublicBenefit.uk campaign earlier this year in protest at what was seen as Nominet’s unresponsiveness and lack of transparency towards its members.

He rallied a crowd of members upset with what they saw as the company’s diversification into non-core businesses, excessive director and executive compensation, and diminishing devotion to supporting public-benefit causes.

The campaign resulted in the forced resignation of the CEO, the ouster of the chair and almost half the directors, and a renewed focus on the .uk registry and charitable causes under a new chair.

Tucows was the biggest-name registrar to back the campaign, with La Bolle repeatedly blogging about how Nominet needed to be more transparent and engage better with its members.

“Humbled by the amount of support and looking forward to improving Nominet for ALL,” Blackler tweeted following the results announcement.

“I’m truly honoured to be appointed to Nominet’s Board as an NED and am grateful for the support and trust from my peers,” La Bolle said via email. “As well-stated throughout my campaign, I am committed to helping Nominet refocus on its core mandate and re-engage its members to better serve our entire community.”

Nominet rebels dominate directorship slate

Nominet has named the six people nominated for its two open non-executive director positions, and the slate is very much slanted towards the new postbellum reality of UK domain politics.

The PublicBenefit.uk campaign, which saw the CEO forced out and half the board fired at an EGM earlier this year, leading to a broad suite of proposed reforms, has a strong presence on the candidate list.

Simon Blackler of Krystal Hosting, who created and spearheaded the campaign, is standing for one of the so-called “NED” seats. He is also named as a proposer/seconder of two of his rival candidates.

This PublicBenefit slate includes Ashley La Bolle, recently promoted head of domains at Tucows, and consultant and former lawyer Jim Davies, both of whom have Blackler’s endorsement.

La Bolle’s candidacy statement focuses on the need for increased transparency and member engagement, while Davies stands on a platform of constitutional and financial reform.

In his endorsements, Blackler cites Tucows’ endorsement of the PublicBenefit campaign as a crucial turning point in its ultimate success, and Davies’ resignation from the Nominet board in 2009, in which he cited high executive pay and low transparency as reasons for his departure.

One incumbent NED is standing for re-election, David Thornton. Nominated by Michele Neylon and Jothan Frakes, Thornton has a platform based on governance and structural rebalancing.

Internet policy all-rounder Liz Williams is also standing, talking up her extensive experience in areas such as ICANN, privacy and security.

Then there’s Bulgaria-based Brit Stephen Yarrow, whose main policy concerns appear to be raising Nominet’s profile and distancing .uk from the EU’s General Data Protection Regulation.

Nominet members should already have been sent the election materials. Everyone else can read them here (pdf).

Votes will be cast November 18 at Nominet’s Annual General Meeting. There are two seats available.