BITS may apply for six financial gTLDs

BITS, the technology policy wing of the Financial Services Roundtable, may apply to ICANN for as many as six financially-focused new top-level domains.
The organization is pondering bids for .bank, .banking, .insure, .insurance, .invest and .investment, according to Craig Schwartz, who’s heading the project as general manager for registry programs.
(UPDATE: To clarify, these are the six strings BITS is considering. It does not expect to apply for all six. Three is a more likely number.)
Schwartz, until recently ICANN’s chief gTLD registry liaison, told DI that the application(s) will be filed by a yet-to-be-formed LLC, which will have the FSR and the American Bankers Association as its founding members.
It will be a community-designated bid, which means the company may be able to avoid an ICANN auction in the event that its chosen gTLD strings are contested by other applicants.
“We’ve looked at the scoring, and while it may not come into play at all we do believe we can meet the requisite score [for a successful Community Priority Evaluation],” Schwartz said. “But we’re certainly mindful of what’s happening in the space, there’s always the possibility of contention.”
There’s no relationship between BITS and CORE, the Council of European Registrars, which is apparently looking into applying for its own set of financially-oriented gTLDs, Schwartz said.
It’s not a big-money commercial play, but the new venture would be structured as a for-profit entity, he said.
“It’s relatively analogous to what’s happened in the .coop space, where after 10 years they have only about 7,000 registrations,” Schwartz said.
It sounds like pricing might be in the $100+ range. Smaller financial institutions lacking the resources to apply for their own .brand gTLDs would be a likely target customer base.
Interestingly, .bank may begin life as a business-to-business play, used primarily for secure inter-bank transactions, before it becomes a consumer-facing proposition, Schwartz said.
He added that it would likely partner with a small number of ICANN-accredited registrars – those that are able to meet its security requirements – to get the domains into the hands of banks.
VeriSign has already signed up to provide the secure back-end registry services for the bid.

UDRP reform effort begins

ICANN has kicked off a review of its Uniform Dispute Resolution Policy, the occasionally controversial process used to adjudicate cybersquatting complaints.
The GNSO Council on Thursday voted to ask ICANN staff for a so-called “Issues Report” on UDRP, indicating that reform of the process is likely.
This is the relevant portion of the resolution, passed unanimously:

RESOLVED #2, the GNSO Council requests an Issues Report on the current state of the UDRP. This effort should consider:
* How the UDRP has addressed the problem of cybersquatting to date, and any insufficiencies/inequalities associated with the process.
* Whether the definition of cybersquatting inherent within the existing UDRP language needs to be reviewed or updated. The Issue Report should include suggestions for how a possible PDP on this issue might be managed.

Issues Reports commissioned by the Council are expected within 15 days, and 15 days after that the Council is expected to vote on whether to kick off a Policy Development Process.
A PDP could lead to changes to the UDRP that would be binding on all ICANN-accredited registrars and their customers.
While the UDRP has proven very effective at dealing with clear-cut cases of cybersquatting over the last 12 years, critics claim that it is often interpreted too broadly in favor of trademark interests.
If you read this blog regularly, you’ll know I frequently report on unfathomable UDRP decisions, but these are generally the exception rather than the rule.
Unrelated to UDRP, the GNSO Council has also voted against asking ICANN for an Issues Report on registry/registrar best practices for mitigating domain abuse.
Business interests wanted registrars to take more measures (voluntarily) to curb activities such as phishing, but registrars think this kind of rule-making is beyond the scope of the GNSO.
After a lot of heated debate and arcane procedural wrangling, the Council decided instead to ask for a “discussion paper”, a term that has no meaning under ICANN’s rules, meaning a PDP is less likely.

Russian domain crackdown halves phishing attacks

Phishing attacks from .ru domains dropped by almost half in the second quarter, after tighter registration rules were brought in, according to new research.
Attacks from the Russian ccTLD namespace fell to 528, compared to 1,020 during the first quarter, according to Internet Identity’s latest report.
IID attributed the decline to the newly instituted requirement for all registrants to provide identifying documents or have their domains cancelled, which came into effect on April 1.
The report goes on to say:

Following a similar move by the China Internet Network Information Center in December 2009, spam researchers suggested that this tactic only moves the criminals to a new neighborhood on the Internet, but has no real impact on solving the problem.

I wonder whose ccTLD is going to be next.
The IID report also highlights a DNS redirection attack that took place in June in Israel, which I completely missed at the time.
Apparently, major brands including Microsoft and Coca-Cola started displaying pro-Palestine material on their .co.il web sites, for about nine hours, after hackers broke into their registrar accounts at Communigal.