.xxx sunrise on track for 50,000 domains

ICM Registry has seen over 42,000 sunrise applications since September 7, with “thousands more pouring in each day”, according to the company.
With a last-minute rush possible by porn-scared brand owners before the process closes this Friday, .xxx may well hit 50,000 sunrise applications.
The 42,000 number seems to cover all three sunrise phases – the ‘B’ process for non-porn companies and the AT and AD processes for pornographers.
Sunrise B applications cost $162 at the registry level and over $200 from registrars. ICM’s breakeven point was 10,000 applications, so it will be profitable to the tune of several million dollars.
Because Sunrise B applications incur a one-time fee, ICM has essentially made a windfall now at the expense of recurring revenues from renewals.

How much money will ICM make from .xxx blocks?

There’s a pretty ludicrous report in the Australian media today, claiming that Aussie businesses are being forced to pay AUD $400 million to ICM Registry to protect their brands in .xxx.
The laughable number ($411 million) appears to have been fabricated from whole cloth. The report in the Murdoch-owned Herald Sun does not even bother trying to source or justify it.
But it’s becoming increasingly clear that ICM is going to make some money out of its .xxx sunrise, including from Sunrise B – the one-time defensive “blocks” that do not result in a domain registration.
The company priced Sunrise B at $162 per domain based on an assumption that it would see 10,000 of them. Any fewer and it would lose money, any more and it would profit.
According to official registry reports, no TLD launched in the last five years – .asia, .co, .jobs, .mobi – saw more than about 10,000 domains defensively registered during its sunrise period.
But my hunch is that .xxx will blow those out of the water. I would not be at all surprised if the final number tops 20,000 names.
It’s just a hunch at this point, based on a comparison to the .co launch – which had a reported 11,000 sunrise applications last year – and four main assumptions:
First, that 10,000 was a conservative estimate. I don’t think ICM would have risked making a big loss.
Second, based on a very small number of conversations, I think that some companies are not taking any chances. They’re applying for blocks in more second-tier brands that maybe they strictly need to.
Third, ICM has a much larger registrar channel than .co enjoyed, and much more aggressively FUDdy registrar marketing tactics.
ICM has approved about 70 registrars, compared to the 10 that .CO Internet had at launch, and a lot of registrar promotion has focused on the “Protect Your Brand!” angle, which was discouraged by .co.
Fourth, the vast amount of mainstream media attention the .xxx sunrise has been receiving, most which has doggedly followed the same line as the registrar FUD.
While the value of defending against typosquatting during the .co sunrise last year was probably more important to trademark holders from a security and traffic loss perspective, the brand protection angle did not receive nearly the same amount of press as .xxx has.
ICM president Stuart Lawley has done dozens of media interviews since the sunrise kicked off last week. I even heard him on a UK radio news show aimed at teenagers.
And this press has been going on for over six years, remember. ICANN first approved .xxx in 2005, and the story has been in and out of the media ever since.
It’s worth noting that a Sunrise B block, with its one-time fee, basically denies ICM Registry a bunch of recurring revenue events forever.
Nike is going to be paying $20 to .CO Internet for its defensively registered nike.co domain name every year until the end of time, in addition to the up-front sunrise fee.
If it blocks nike.xxx, it will pay $162 to ICM now but it will also deny the registry its $60 fee for every year it could have been a renewing domain. In three years, ICM’s losing revenue.
But Sunrise B is very probably going to be profitable for ICM. At 20,000 applications, its top line would be $3.24 million, with profit probably pushing seven figures.
Nowhere near $411 million, obviously, but not a bad payday for selling domain names that will never resolve.

The first .xxx porn site has gone live

Casting.xxx tonight has become officially the first live porn site to use a .xxx domain name.
It’s very not safe for work, of course, but if you head over there right now you can watch a handful of streaming videos, according to sources.
Casting.xxx is the first site to use a domain granted under ICM Registry’s Founders Program, which let the registry sell off or basically give away premium names to publishers.
ICM says it’s allocating about 1,500 domains to about 35 Founders, which is quite a lot more domains than I was expecting.
The .xxx top-level domain has been active in the domain name system for a few months now, but to date the only resolving domains have been those belonging to registry manager ICM.
Casting.xxx is registered to a Really Useful Ltd, which appears to have been set up purely to build sites on .xxx domains, of which casting.xxx is the first of several.
The .xxx sunrise period begins next month, with landrush in November and general availability slated for December.

ICM reveals .xxx launch dates, extends sunrise

Citing demand, ICM Registry has lengthened the .xxx sunrise period, which begins September 8, by three weeks. It will now end October 28, running for 50 days.
The new deadlines apply to all three sunrises, which will run concurrently.
Sunrise A-T – for porn publishers with trademarks.
Sunrise A-D – for porn publishers with matching domains in other TLDs.
Sunrise B – for anyone outside the porn business who wants to “turn off” their trademark in .xxx to prevent cybersquatting.
Successful Sunrise B applicants will see their chosen domains resolve to a standard information page explaining that the domain is not available for registration.
Post-launch, anyone can register a non-resolving domain that returns an NXDOMAIN response, but they’ll have to pay for it annually. Sunrise B applicants pay a one-time fee.
If applicants from Sunrise A and Sunrise B both apply for the same domains, the porn applicant will be given precedence, although they will be warned about possible trademark infringement.
If more than one Sunrise A applicant applies for the same domain, the fight will be taken to an auction, managed by Pool.com. Auction rules will be published at a later date.
The sunsrise is outlined in a policy document (pdf) ICM published on its web site today that sets out the rules for its pre-launch period.
The company has not yet announced details of its Charter Eligibility Dispute Resolution Procedure, nor its Rapid Evaluation Service, though it has said it expects them to cost between $750 and $1,500, depending on what deals it can come to with dispute resolution providers.
The Rapid Evaluation Service, previously referred to as “rapid takedown” will be an interesting one.
It’s expected to be a little like the Uniform Rapid Suspension process ICANN’s new gTLDs will have to implement, except it will only take about 48 hours to take down an obviously cybersquatted domain.
ICM says it expects to publish these policies before the sunrise begins.
Landrush is now expected to run November 8 until November 25. General availability will begin December 6.

Short .uk domain landrush opens

Nominet opened the landrush phase of its one and two-character .uk domain names within the last hour.
The landrush will see the remaining 2,640 super-short domains that have not already been claimed by trademark holders start to become available.
It costs £10 ($16) to apply, plus the cost of the registration. All contested domains will head to auction, the proceeds of which will be donated to the Nominet Trust.
The available domains are all in the .co.uk, .me.uk, .net.uk and .org.uk spaces. Restrictions may apply – for example .me.uk domains are reserved for individuals.
The landrush will run until June 15. Uncontested domains will be allocated June 23, at which point all unclaimed domains will be released into the available pool. The auctions will kick off July 20.

How to protect your trademark in .xxx

ICM Registry today revealed the details of its policies for trademark holders that want to defensively register or block their .xxx domain names.
The company plans to kick off its sunrise period in early September. It will last 30 days, and will be followed a few weeks later by a 14-day landrush.
The date for general availability has not been set in stone, but is likely to be in early December.
Two sunrise periods will run concurrently. Sunrise A is for the adult entertainment industry, those who want to actually set up porn sites at .xxx domains. Sunrise B is for everyone else.
ICM is trying something new with .xxx, in response to non-porn brands that are worried about cybersquatting and also don’t want to actually own a .xxx domain name.
Under Sunrise B, non-porn trademark owners can pay a one-time fee to have their brand essentially turned off in .xxx.
These domains will all resolve to a standard placeholder page, informing visitors that the domain has been blocked.
Because the domains resolve, they will usually not be picked up by any ISP system whereby non-existent domains show advertisements instead of an error message.
The fees we’ve seen so far from registrars for this service range from $299 to $648, but ICM seems to think $200 to $300 is more realistic.
The blocks are expected to last forever, but because ICM’s registry agreement with ICANN only lasts for 10 years, it can only guarantee the blocks for that amount of time.
So while it looks like a $30 to $65 annual fee, over the lifetime of the TLD it may well steadily approach a negligible sum, if you’re thinking super-long-term.
To qualify for Sunrise B, you need a nationally registered trademark for the exact string you want to block. To use an example, Lego could block lego.xxx, but not legoporn.xxx.
ICM is currently planning a post-launch block service for brands that emerge in future, but it probably won’t have the flat one-time pricing structure, due to the registry’s own annual per-domain fees.
If you’re in the porn business, Sunrise A allows you to claim your brand if you have a trademark that is registered with a national effect.
It will also enable the “grandfathering” of porn sites in other TLDs that do not have a registered trademark. If you own example.com or example.co.uk, you’d qualify for example.xxx.
Lego could, for example, register legoporn.xxx using Sunrise A, because it already owns legoporn.com, but only if it actually intended to publish Lego-based pornography.
If it were to register legoporn.xxx in this way, and use it for non-porn purposes, it would be at risk of losing the domain under ICM’s planned Charter Eligibility Dispute Resolution Policy (CEDRP).
In the event that a Sunrise A applicant and a Sunrise B applicant both apply for the same string, the Sunrise A (porn) applicant will be given the option to withdraw their application.
If they don’t withdraw, they will be able to register the domain, trumping their non-porn rival.
Two Sunrise A applicants gunning for the same .xxx domain will have to fight it out at auction.
It’s probably worth mentioning, because many cybersquatters seem to think it’s a .com-only deal, that the UDRP does of course also apply to .xxx domain names.
If you own, for example, the string “virgin” in another TLD, and use it for a porn site, you will actually be able to use it in Sunrise A to secure virgin.xxx, but you risk losing it to Virgin in a UDRP.
If you’ve “pre-registered” a domain with ICM already, it doesn’t seem that you’ll have any notable advantages during sunrise or landrush.
The registry plans to email these pre-registrants soon with instructions. More info on the new ICM site: XXXempt.com.
The sunrise policies were devised by IPRota.

Domainer loses 3.org.uk

Domain investor Scott Jones, who managed to secure the domain name 3.org.uk in Nominet’s recent short domain names sunrise period, has lost it due to a trademark claim.
Nominet said in a statement this afternoon:

The domain name 3.org.uk was registered at the end of the Registered Rights Sunrise phase. Following registration, an objection was raised concerning the IP rights provided by the applicant for that domain. This objection has been upheld by CMS, our IP validation rights agency and the domain name has now been made available for registration during the Unregistered Rights Sunrise phase.

I think it’s a safe bet that the objection was filed by 3, the stupidly named British mobile phone company, which does business at three.co.uk.
As I blogged a few weeks ago, Nominet assigned 99 one and two-character .co.uk domain names to trademark holders under the first of two sunrise allocation phases.
Because 3.co.uk was not on that list (pdf), I’m going to assume it was applied for by one than one party. Contested domains from the sunrise are due to go to auction March 15.

99 super-short .uk domains registered

Nominet, the .uk registry, has allocated 99 one and two-letter .uk domain names to trademark holders including the Financial Times and Manchester United.
Most of the companies successfully applying for short .co.uk, .org.uk and .net.uk domains under Nominet’s recently closed sunrise period are household names.
Most also chose to acquire both .org.uk and .co.uk variants of their trademark. Only ten of the single-letter and two of the single-number options were claimed. Yahoo managed to get y.co.uk.
Overstock.com, which is currently branding itself as o.co, did not receive o.co.uk, despite having a trademark on the term, possibly for the reasons I outlined here.
One of the big winners appears to be a domainer. Scott Jones acquired 3.org.uk, s.co.uk, s.org.uk, pc.co.uk and pc.org.uk.
Nominet said: “A small number of contested domains will be involved in an auction phase to determine the successful registrant.”
The first sunrise was for owners of UK registered trademarks. The next round, set to kick off February 14, is for owners of “unregistered” rights.
The full list of domains registered can be downloaded here.

.SO extends sunrise, delays landrush

.SO Registry, the company behind the newly launched Somalian top-level domain, has added an extra month to its sunrise period and delayed its landrush accordingly.
The trademark-holders-only sunrise was due to run for the month of November. Instead, it will now end December 31.
The registry said on Thursday that the changes were made “due to the high demand” for sunrise registrations.
The landrush, which will be open to all, is now scheduled to launch January 11.

.SO Registry copies .co launch policies

Somalia’s .SO Registry, which hopes to mimic a little of the success of .co when it starts accepting registrations in November, has adopted virtually identical launch policies.
The registry’s policy document (pdf), which appeared on its web site last week, does in fact appear to copy large chunks of text wholesale from .CO Internet’s equivalent paper (pdf).
(UPDATE: I’ve reason to believe this is because both documents share an author/editor)
For this reason, you can pretty much expect the same policies regarding the sunrise, landrush and general availability phases of the launch, which kicks off November 1.
It also means that .so domain names will be subject to the UDRP. The registry has evidently partnered with WIPO to administer these proceedings.
There are some differences between .co and .so, however.
Notably, .SO Registry has added a policy of allowing sunrise registrations for trademark typos, provided that the typo under another TLD has been won at UDRP or in court.
This basically appears to open the doors for any company that has won a .com domain in a UDRP case to register the equivalent .so, no matter how lunatic the UDRP decision was.
This is how the document describes the exception to the trademarks-only rule:

the Domain Name must be identical to a domain name which has been recovered by the Applicant or its authorized licensee in the context of a court, UDRP or other alternative dispute resolution procedure relating to that domain name in another top-level domain.

It’s followed by a comment, one of several apparently made by one of the document’s editors, that probably shouldn’t have been published on a public web site:

Comment Bart: we need to look at the allocation model here (rather hypothetical, but you never know): will they also go into auction if there are two applicants for the same domain name: one having the identical mark, and the other having the variant?)

Other differences include the fact that, unlike their Columbian counterparts, Somalians do not appear to get any special privileges, such as grandfathering or a priority sunrise phase.
There also does not to be a provision for a Specially Protected Marks list like the one .CO Internet used.
The registry’s policies will be governed by the laws of Japan, rather than Somalia (which, let’s face it, doesn’t have much in the way of a functional legal infrastructure).
.SO’s back-end is being handled by GMO Registry, the Japanese company that plans to apply for .shop and is working with Canon on its proposed .canon application.
I’ve previously reported on the roll-out time-line and pricing for the .so domain, here.