Second private auction nets $1.2m per gTLD

Only eight new gTLD contention sets were resolved during Innovative Auctions second round of private auctions this week, and the average winning bid has gone down.
The eight strings sold for a combine $9,651,000, or an average of $1.2 million per string. That’s down from the $1.5 million average reported from the first round of auctions in June.
The overall average winning bid from Innovative’s auctions is now $1.33 million.
Over 100 gTLDs had been committed to the second round by various applicants — which put up 68 strings and wound up winning three — but the auctions can obviously only go ahead if the whole contention set agrees to participate.
According to Innovative, these are the winners this week:

• .guide: Donuts
• .construction: Donuts
• .storage: Extra Space Storage (applying as Self Storage LLC)
• .desi: Desi Networks
• .expert: Donuts
• .fishing: Top Level Domain Holdings
• .casa: Top Level Domain Holdings
• .网址 (.wangzhi): Hu Yi Global

These were all two-applicant contention sets (Go Daddy had originally applied for .casa, but withdrew its application months ago).
Losing applicants — which get to take home the winning’s bidder’s cash, net Innovative’s fees — were Demand Media, Afilias, Dot Construction, and Red Circle.
The DI PRO Application Tracker will be updated daily as and when the losing applications are withdrawn. So far, only Donuts’ bid for .casa has had its withdrawal processed by ICANN.
Innovative seemed to blame the low turnout on the August holiday period, and said it has scheduled its third round of auctions for September 10.

TLDH commits to four private gTLD auctions

Top Level Domain Holdings has committed four of its applied-for gTLDs to private auctions due to kick off tomorrow.
The four strings are .guide, .casa, .网址 (“web address” in Chinese) and .fishing, each of which has only one competing applicant.
The company will bid against Donuts on .casa and .guide, Demand Media on .fishing and Hu Yi Global Information Resources on .网址.
Results of the auctions, managed by Innovative Auctions, are expected to be announced next week.
TLDH was initially cautious about the idea of private auctions, but later decided to participate, for reasons CEO Antony Van Couvering explained in this June article.
Over 100 strings, including 68 from Donuts, are expected to be hitting the block with Innovative this week. The first six strings to be auctioned this way raised an average of $1.5 million per string.
TLDH has 49 strings in active contention.

Realtors withdraw five gTLD community objections

The US-based National Association of Realtors has withdrawn its Community Objections against five applicants for .realestate and .realty, according to well-placed sources.
The five separate objections, which had been combined into one action under the auspices of the International Chamber of Commerce’s International Centre for Expertise, were withdrawn today.
NAR is a million-member trade association — apparently the largest in the US — comprising real estate agents that agree to pay dues and abide by its code of conduct.
It owns a trademark on REALTORS® and, judging by its objection and web site, is not shy about letting you know it. In the States, only NAR members get to call themselves “realtors”.
It has applied for .realestate via a subsidiary, dotRealEstate LLC, and had objected to applications for .realestate from Donuts, Top Level Domain Holdings and Uniregistry, and applications for .realty from Donuts and smaller portfolio applicant Fegistry.
The objections were combined in May, with the consent of the responding applicants.
NAR argued (pdf) that the applied-for strings are synonymous with its community of members, and that the other applicants’ proposed open-house registration policies would tarnish their reputation.
To win a Community Objection, you have to show among other things that there’s a strong nexus between the string at issue and the “clearly delineated” community you purport to represent.
While the case seems to have been withdrawn before it was decided by the ICC panel, NAR’s rivals were zeroing in on this as a weak spot in its objections.
The Uniregistry response (pdf) is as amusingly brutal as you’d expect from company counsel John Berryhill, using the NAR’s own marketing materials and positions in previous lawsuits against it.
Uniregistry pointed for example to a video on NAR’s web site that says:

We need your help to ensure that the term ‘REALTOR’ continues to mean member of the National Association of Realtors, and not just any real estate agent.

Uniregistry took this as an admission from NAR that the nexus between the universe of “real estate” professionals and the NAR is not as strong as the organization had tried to make out.
In Donuts’ two responses (pdf and pdf) also attacked this angle, arguing

Objector and its members make up only a fraction of that “community”… myriad divergent interests and countless individuals and organizations populate the sphere of “realty” around the world. Objector does not claim to speak on behalf of any of them, but rather only its own membership in the United States.

Now that the objections have been withdrawn, and all the applications are still active, the .realestate and .realty contentions sets are both heading to auction or private settlement.

Tucows and TLDH buddy up on three gTLD auctions

Top Level Domain Holdings and Tucows have made a complex deal on new gTLD applications for .store, .tech and .group.
The partnership will see TLDH take a majority stake in .group, which it hasn’t also applied for, while Tucows will take minority interests in .tech and .store, which it in turn has not also applied for.
All three strings are heading to auction, with four applicants for .group, five for .tech, and six for .store.
How much each company owns of each registry will depend on how much they contribute to a winning auction bid.
TLDH CEO Antony Van Couvering said in a press release:

By combining our financial resources on these three domains not only are our chances of success improved in the auction round, but TLDH has the opportunity to acquire an interest in an additional top-level domain, .GROUP.

Tucows already plans to use TLDH subsidiary Minds + Machines as the registry back-end for the five new gTLDs it has applied for.

90 new gTLDs pass IE. Two more withdrawals

ICANN has published its weekly run-down of new gTLD Initial Evaluation results and this week 90 applications have passed.
There have also been two withdrawals, both made by Uniregistry. It’s withdrawn its bids for .media and .country, leaving Tucows and Donuts duking it out for .media and Top Level Domain Holdings as the sole remaining applicant for .country.
TLDH and Uniregistry previously inked a deal that would see them go 50:50 on .country, the only question remaining was which applicant would drop out.
These are this week’s passing applications:

.ecom .doctor .cpa .forum .aco .mba .mom .sbs .frogans .rip .changiairport .tirol .homesense .swatch .hotel .ice .realty .web .fun .clubmed .ril .creditcard .datsun .netbank .jmp .ferrero .hockey .contact .avianca .gold .beauty .audi .cheap .bet .uconnect .map .cooking .pics .network .madrid .garden .zone .expert .cfa .trv .review .forum .pizza .dabur .pay .app .bingo .home .ryukyu .agency .tdk .xfinity .nokia .raid .hoteles .tube .school .win .gmbh .faith .show .radio .pizza .wtf .juniper .xerox .rehab .global .cloud .docs .life .fun .brother .intel .place .photo .christmas .wine .dupont .run .home .ping .boutique .mortgage .store

TLDH and Famous Four ink new gTLD revenue sharing deal

New gTLD portfolio applicants Top Level Domain Holdings and Famous Four Media did in fact make a deal to resolve three contention sets, as suspected.
TLDH has just confirmed that it withdrew its applications for .science and .review in exchange for Famous Four withdrawing its application for .fit.
But the deal also includes a revenue-sharing component — TLDH will get a cut of whatever revenue Famous Four makes selling .review domain names after it goes live.
All three of the gTLDs in question were in two-way contention sets between the two companies, as we reported yesterday.
TLDH gave the following update:

TLDH now has interests in 23 uncontested applications, including 15 wholly/majority owned applications, 6 where it is acting as the registry service provider for client applications, 1 equal joint venture, and 1 where it will receive a minority revenue share. Of the remaining 63 applications which TLDH either wholly-owns, is a joint-venture partner, or is acting as the registry service provider, 7 are in contention with a single other applicant, 17 with two other applicants and 39 are in contention with three or more applicants.

While the dollar amounts concerned were not disclosed, I can’t help but feel TLDH got a good deal with .review.
For the cost of an ICANN application fee*, much of which was recouped in refunds, it seems to be getting an ongoing revenue stream with no ongoing costs and little future risk.
* Of course, in TLDH’s case it has also been burning cash for the best part of five years waiting for new gTLDs to come to life, but you get the point.

Famous Four wins two new gTLD contention sets

Four new gTLD applications were withdrawn overnight, resolving three contention sets.
Top Level Domain holdings has pulled its bids for .review and .science, in both cases leaving subsidiaries of portfolio applicant Famous Four Media as the only remaining applicant.
Meanwhile, Famous Four withdrew its .fit application, leaving TLDH as the only remaining applicant.
Buyouts? It seems possible. The .review application passed its Initial Evaluation a month ago, so the ICANN refund due to TLDH will have been dramatically reduced.
As a publicly traded company, TLDH is likely to issue a statement at some point explaining the current state of its applications.
But one of the side effects of ICANN’s preference for private deals is that we won’t always know when two or more companies privately resolve their contention sets.
There are at least two other contention sets where I have very good reasons to believe that deals have already been done, partially resolving the set, but nothing has yet been disclosed.
Also overnight, L’Oreal’s application for .garnier, a dot-brand, was withdrawn. It’s the fifth, and probably not the last, of L’Oreal’s 14 original new gTLD application to be dropped.
Governmental Advisory Committee advice has been leveled against .fit and .review, but not .science.
UPDATE: The original version of this story erroneously reported that TLDH, rather than Famous Four, had withdrawn its .fit application. This has now been corrected. Apologies for the error.

TLDH bags $10m in share sale

Top Level Domain Holdings has raised roughly $10 million by selling shares to institutional investors and directors.
The company, listed on the Alternative Investment Market in London, said today it has placed 110,375,276 new ordinary shares at £0.06 apiece.
The money will be used to help the company win some new gTLD contention set auctions and to promote the uncontested geo .london, which TLDH has been hired to manage.
The company is involved in 88 new gTLDs, some as applicant and some as back-end registry provider via its Minds + Machines subsidiary.
TLDH said it expects to start launching TLDs in the fourth quarter.

TLDH weighs in on “terrifying” GAC advice

Top Level Domain Holdings is the latest portfolio applicant to slate the Governmental Advisory Committee’s advice on new gTLDs, calling it “troubling in principle” and “terrifying in practice”.
The company, which applied directly for 70 gTLDs and is involved in several others, filed its comments on the “safeguard advice” in the GAC’s Beijing communique with ICANN today.
The comments focus mainly on the overarching issues of governmental power and process, rather than delve into the nitty-gritty implementation problems presented by the advice.
TLDH CEO Antony Van Couvering wrote:

The Communiqué’s prescriptions define the opposite of a well-regulated sector. Instead of a clear process in which all concerns are weighed, the Communiqué sets up an ad-hoc GAC process from which the views of applicants are excluded.
Instead of clear rules to which industry players must adhere, ill-defined categories have been set up that applicants have a hard time even to understand.
Instead of a clear authority on who will determine policy, the ICANN community must now wonder who is in charge.

The comment points to the fact that the GAC’s 2007 principles on new gTLDs state that applicants should have a clear, objective process to follow, and that Beijing undermines that principle.
It also puts forth the view that the GAC appears to be trying to create policy unilaterally, and in a top-down manner that doesn’t give the Generic Names Supporting Organization a role.

The GAC Beijing Communiqué as enunciated in Section IV.1.b [the safeguard advice] unilaterally expands the role of the GAC from an advisory committee, with a remit of providing advice on policy originating in the GNSO, into a policy-making body from which other members of the ICANN community are excluded.

TLDH also notes that some parts of the advice are “not in themselves bad ideas” and that the company has offered to adopt some of them already in the Public Interest Commitments appended to its applications.
It comments follow those from rival Demand Media, which questioned the feasibility of implementing the GAC’s advice, last week.
Separately, over the weekend, Medicus Mundi International Network — an organization of healthcare non-governmental organizations — filed comments saying that the GAC advice does not go far enough.
Rather, it said, ICANN should delay the introduction of .health until a “broad-based consultation of the health community” can be carried out and a “multi-stakeholder” governance model for it created.

Donuts not pursuing new gTLD joint ventures

Following the news that Uniregistry and Top Level Domain Holdings are to work together on the .country new gTLD, larger portfolio applicant Donuts has said it’s not interested in similar arrangements.
While not entirely ruling out joint ventures along the lines of the .country tie-up, company VP of communications Mason Cole told DI that Donuts’ strategy is to completely own each of the new gTLDs it has applied for.
“We aren’t categorically ruling anything out, but any kind of proposal would have to be very compelling,” he said. “Our strategy from the beginning has been, and still is, to secure the strings we applied for and manage them ourselves.”
While TLDH and Uniregistry seem open to such partnerships, Donuts’ stance appears to reduce the likelihood of three-way joint ventures on the four applications for which the three companies are the only applicants.
Donuts is also in two-horse races on an additional 58 strings.
The company, which is believed to have raised $100 million to $150 million in venture capital funding, is a strong supporter of private auctions to settle contention sets.
It originally brought the auctioneer Cramton Associates, which runs ApplicantAuction.com. into the ICANN process.
Cramton, according to a blog post this week, expects to run a mock auction May 23 and start auctions proper five days later.
ICANN does not expect to finish delivering the results of Initial Evaluation until August, so it seems possible some applicants may participate before they know if they’ve passed.