Millions spent on new gTLDs as 11 auctions settled

New gTLD portfolio applicants settled at least 11 new gTLD contention sets last week, sharing the spoils of a private auction that looks to have totaled seven figures in sales.
Applicant Auction carried out auctions for 13 contested strings last week, which I believe lasted at least three days.
I’ve been able to determine that Donuts won six sets, Uniregistry won three and Minds + Machines won two. Radix seems to have lost at least five auctions, walking away with a great big pile of cash instead.

.hosting — Uniregistry won after Radix (which owns .host) withdrew.
.click — Uniregistry beat Radix.
.property — Uniregistry won after withdrawals from M+M and Donuts.
.yoga — M+M won, beating Donuts and Uniregistry.
.garden — M+M beat Donuts and Uniregistry again.
.娱乐 — Donuts won this string (Chinese for “.entertainment”) after Morden Media withdrew.
.deals — Donuts beat M+M and Radix.
.city — Donuts beat TLD Registry and Radix.
.forsale — Donuts beat DERForsale.
.world — Donuts beat Radix.
.band — Donuts beat What Box?

Minds + Machines disclosed this morning that the four auctions in which it was involved cost it $5.97 million.
It’s not possible to work out how much .garden and .yoga cost the company; the $5.97 million figure is net of the money it won by losing .property and .deals, ICANN refunds and auctioneer commissions.
However, it seems reasonable to assume that the average price of a gTLD, even not particularly attractive ones (.garden? Really?), has sharply risen from the $1.33 million I calculated from the first 14 auctions.
In January, M+M raised roughly $33.6 million for auctions with a private share placement. The company is listed on London’s Alternative Investment Market.
The company said it now has an interest in 28 uncontested applications.
Also today, the Canadian Real Estate Association withdrew its Community application for .mls, but this is not believed to be related to the auctions. It has a non-Community application for the same string remaining.

Registrant complains to ICANN over Uniregistry’s premium names

A would-be new gTLD registrant has appealed to ICANN over the domain name moviestar.photo, which she was unable to register because Uniregistry had reserved it as a premium name.
Danielle Watson filed a formal Request for Reconsideration (pdf) with ICANN last week, in the mistaken belief that ICANN had placed the domain she wanted on one of its block-lists.
She described her predicament thus:

a. Website Name Registration: I purchased one of the new gTLD domain names ending in .photo from 101domain.com on April 2, 2014. Moviestar.photo
b. I received an email on April 14, 2014 stating that ICANN kept this name from being registered in my name, and I would receive a refund in which I did.
c. I cannot understand why this name is being withheld, and being put into your reserve list.
d. I take very old Movie Stars photos and colorize them and put old fashioned frames around them and sell them at craft fairs locally. This name would have been a perfect fit for my use and sales. Please reconsider my request to be reconsidered and the name moviestar.photo reinstated/registered in my name with 101domain.com

Correspondence from 101domain provided by Watson (pdf) does not mention ICANN, so I’m not sure how she came to the conclusion that ICANN was to blame.
I fear she has targeted ICANN incorrectly.
The DI PRO name collisions database shows that the string “moviestar” has been blocked by ICANN’s policy on collisions in 15 new gTLDs, but Uniregistry’s .photo is not one of them.
Whois records show that moviestar.photo is in fact registered to North Sound Names. That’s the name of the Uniregistry affiliate currently in control of tens of thousands of Uniregistry premium names.
The RfR is not the venue for this kind of complaint and it’s likely to be dismissed for that reason. There’s not much ICANN can do about it.
Perhaps Watson would have better luck writing a begging letter to Uniregistry CEO Frank Schilling, who has indicated his willingness to allocate premium names to deserving users.

New gTLD domains top 500,000 as Schilling goes on parking spree

The total number of new gTLD domains broke through half a million for the first time yesterday, but it seems to be due to Frank Schilling obtaining tens of thousands of names in his own TLDs.
Uniregistry’s .link became the fifth-largest new gTLD, moving almost 20,000 names, but it appears that the vast majority are registered to a company affiliated with CEO Schilling.
Uniregistry’s other gTLDs — .tattoo, .sexy, .pics, .photo and .gift — all saw huge jumps too, apparently for the same reason.
This morning’s .link zone files show a pop of 19,945 names, to a total of 20,050.
That would be the third-best GA-day performance, after .guru and .berlin, of any new gTLD to date, but it seems the vast majority are actually premium names acquired by a Uniregistry affiliate.
Of those new .link names, 18,272 (91%) are being parked on internettraffic.com, another Schilling company.
I took a random sampling and found them all registered to North Sound Names, a company based on Seven Mile Beach in Grand Cayman, which is where Schilling lives.
Schilling said this on Twitter yesterday:

@TimJamesDomains @DomainNameWire .. they are the company that has done a deal for our premium names

— Frank Schilling (@Frank_Schilling) April 15, 2014

Premium names are of course those that were reserved by the registry. So either a third-party has bought them wholesale, or Uniregistry has simply shifted them over to an affiliated company.
I’ve asked Schilling to confirm that North Sound Names is also his company and will update this post with his answer.
Testing some domains in Uniregistry’s other gTLDs, I found a similar pattern — big spike, mostly parked at internettraffic.com, North Sound Names in a sampling of the Whois.
Here’s a screenshot of today’s best-performing new gTLDs from DI PRO (click to enlarge):

Overall, six of Uniregistry’s new gTLDs grew by a total of 50,735 domains today — 95% of the 53,147 industry total — and internettraffic.com’s name servers are responsible for 37,668 new names.
This brings the total number of “registered” domains to 538,093, though I would suggest that this metric may no longer be a decent measurement of actual end user interest in new gTLD domains.

Disappointing .sexy launch shows the importance of the channel

.sexy not so sexy after all?
Uniregistry’s first new gTLDs to launch, .sexy and .tattoo, have showed a poor first-day performance after the company failed to secure Go Daddy as a registrar partner.
During the 60-day sunrise period and the first 30 hours of general availability, .sexy sold just shy of 2,700 domains, judging by zone files, while .tattoo racked up a pitiful 700 registrations.
This makes .sexy the 19th most popular new gTLD. On the DI PRO league table it’s sandwiched between .holdings and .camera, and .tattoo the 28th, between .voyage and .careers.
It’s not a completely terrible performance for .sexy — .camera and .holdings have been on the market for three and four weeks respectively — but one might have expected better sales for a string that isn’t tied to a particular vertical niche and is, arguably, just intrinsically attractive.
.sexy’s first-day performance is in the same ball park as Donuts’ .gallery and .estate, hardly strings to get excited about.
For .tattoo, the story is less gray — under 1,000 domains sold is not a success in anyone’s book.
I think there are a couple reasons for the poor showing.
First, the strings themselves. While I can see .sexy proving popular with regular buyers, it doesn’t easily lend itself to domain names that are instinctively attractive to domainers.
You can put pretty much any profession or product name in front of a .guru and it is meaningful as a brand or a rather grandiose self-appointed title. Not so with .sexy.
Ironically, this appears to be Uniregistry CEO Frank Schilling’s “Toilet Paper Test” in action.
Schilling argues that the test of how generic, and by extension popular, a gTLD is should be whether toiletpaper.[tld] works. I think toiletpaper.guru works, but toiletpaper.sexy does not.
Second, Uniregistry lacked distribution.
While it had big registrars such as eNom and NameCheap (almost 50 in total) on its books, it lacked Go Daddy and 1&1 — the two companies that have been pushing pre-registrations more heavily than any other.
The reason Donuts’ gTLDs performed better in their first hours is that these companies, mainly Go Daddy, had been collecting pre-regs for weeks and spammed the registry with registration requests at the first second they were able. Day one registrations actually represent weeks of marketing and leads.
Uniregistry took an awfully big risk by demanding registrars hand over part of the customer relationship to the registry, and it seems to have impacted its sales.
The company plans to shortly launch its own registrar, and is betting hard of this being a successful sales channel.
I’m somewhat skeptical about this strategy, at least in the short term.
Go Daddy has spent tens (hundreds?) of millions of dollars on marketing over the last decade or so. It has a lot of eyeballs already and it’s going to be nigh-on impossible to replicate that degree of success.
Uniregistry is not the only new gTLD portfolio registry enthusiastically embracing vertical integration.
The trail was blazed by Minds + Machines, which launched its own registrar last November. Today, it’s difficult to tell on the company’s web site where the registrar ends and the registry begins.
What’s M+M’s launch channel going to look like? We’re not going to know for sure until its first TLDs hit the market.
Are the big registrars going to make the vertically integrated business model difficult to carry off successfully? While registries are obliged to give access to any registrar that wants to sell their names, registrars have no obligations to carry any TLD they don’t want to.

Here’s why registrars are boycotting .sexy

Will .sexy and .tattoo trip on the starting blocks today due to registrars’ fears about competition and Whois privacy?
Uniregistry went into general availability at 1600 UTC today with the two new gTLDs — its first to market — but it did so without the support of some of the biggest registrars.
Go Daddy — alone responsible for almost half of all new domain registrations — Network Solutions, Register.com and 1&1 are among those that are refusing to carry the new TLDs.
The reason, according to multiple sources, is that Uniregistry’s Registry-Registrar Agreement contains two major provisions that would dilute registrars’ “ownership” of their customer base.
First, Uniregistry wants to know the real identities of all of the registrants in its TLDs, even those who register names using Whois privacy services.
That’s not completely unprecedented; ICM Registry asks the same of .xxx registrars in order to authenticate registrants’ identities.
Second, Uniregistry wants to be able to email or otherwise contact those registrants to tell them about registry services it plans to launch in future. The Uniregistry RRA says:

Uniregistry may from time to time contact the Registered Name Holder directly with information about the Registered Name and related or future registry services.

We gather that registrars are worried that Uniregistry — which will shortly launch its own in-house registrar under ICANN’s new liberal rules on vertical integration — may try to poach their customers.
The difference between ICM and Uniregistry is that ICM does not own its own registrar.
The Uniregistry RRA seems to take account of this worry, however, saying:

Except for circumstances related to a termination under Section 6.7 below, Uniregistry shall never use Personal Data of a Registered Name Holder, acquired under this Agreement, (a) to contact the Registered Name Holder with a communication intended or designed to induce the Registered Name Holder to change Registrars or (b) for the purpose of offering or selling non-registry services to the Registered Name Holder.

Some registrars evidently do not trust this promise, or are concerned that Uniregistry may figure out a way around it, and have voted with their storefronts by refusing to carry these first two gTLDs.
Ownership of the customer relationship is a pretty big deal for registrars, especially when domain names are often a low-margin entry product used to up-sell more lucrative services.
What if a future Uniregistry “registry service” competes with something these registrars already offer? You can see why they’re worried.
A lot of registrars have asserted that with the new influx of TLDs, registrars have more negotiating power over registries than they ever did in a world of 18 gTLDs.
Uniregistry CEO Frank Schilling is basically testing out this proposition on his own multi-million-dollar investment.
But will the absence of these registrars — Go Daddy in particular — hurt the launch numbers for .sexy and .tattoo?
I think there could be some impact, but it might be tempered by the fact that a large number of early registrations are likely to come from domainers, and domainers know that Go Daddy is not the only place to buy domains.
Schilling tweeted at about 1605 UTC today that .sexy was over 1,800 registrations.
Longer term, who knows? This is uncharted territory. Right now Uniregistry seems to be banking on the 40-odd registrars — some of them quite large — that have signed up, along with its own marketing efforts, to make up any shortfall an absence of Go Daddy may cause.
Tomorrow, I’d be surprised if NameCheap, which is the distant number two registrar in new gTLDs right now (judging by name server counts) is not the leader in .sexy and .tattoo names.

Uniregistry doing private new gTLD auctions? Company deals with Donuts on five strings

Uniregistry and Donuts have settled at least five new gTLD contention sets this week, raising the question of whether Uniregistry has reversed its objection to private auctions.
I think it has.
In five of the six head-to-head contention sets between the two companies, Donuts has won the rights to .furniture, .auction and .gratis, and Uniregistry has won .audio and .juegos.
The losing company has already withdrawn their applications in all five cases.
I gather that a deal was made, but Uniregistry won’t say whether it was via a private auction or not and I’ve not yet had a reply to a request for comment from Donuts.
The withdrawals come the same week as Applicant Auction was scheduled to conduct its latest private auction for new gTLD contention sets. The auction was slated for February 18.
But Uniregistry, which has previously spoken out against the private auction concept — saying it raises antitrust concerns — declined to confirm or deny whether these five contests were resolved by auction.
“We’re grateful to have found a way through the impasse and resolved the contention,” was all Uniregistry CEO Frank Schilling would say.
Applicant Auction’s project director Sheel Mohnot confirmed that a new gTLD auction took place this week but said he could not disclose the participants or the strings.
To the best of my knowledge, that’s a new line — the auctioneer has always kept quiet about sales prices in the past, but has always revealed which companies were involved.
So has Uniregistry changed its mind about the legality of private new gTLD auctions? My guess is: “Yes.”
The only remaining string where the two companies are competing in a two-horse race is .shopping, according to the DI PRO database, but that’s subject to some weird string similarity nonsense and probably not suitable for a private auction yet.

100 .sexy names reserved by Uniregistry

areyou.sexy? youare.sexy?
If you’re thinking about trying to bag these names when Uniregistry takes .sexy into general availability next week, you’re out of luck — they’re among almost 100 registry-reserved names.
Under ICANN’s standard Registry Agreement, new gTLD registries are allowed to register up to 100 names to themselves “necessary for the operation or promotion of the TLD”.
To date, not many registries appear to have taken advantage of this contractual allowance, but .sexy is one of them.
Uniregistry has mostly reserved fairly standard operational names such as register.sexy, about.sexy, names.sexy and so on, but there are a few interesting choices that hint at possible future services.
Do auctions.sexy and marketplace.sexy hint at moves into the secondary market? Could areyou.sexy be the destination of a future advertising campaign? What are we going to see at build.sexy and pay.sexy?
Here are the names Uniregisty seems to have reserved:

247.sexy, a.sexy, about.sexy, abuse.sexy, account.sexy, areyou.sexy, auction.sexy, auctions.sexy, build.sexy, buy.sexy, cart.sexy, com.sexy, contact.sexy, corp.sexy, create.sexy, dev.sexy, diy.sexy, dom.sexy, domain.sexy, domains.sexy, email.sexy, finance.sexy, find.sexy, free.sexy, get.sexy, geta.sexy, getmy.sexy, help.sexy, home.sexy, host.sexy, hosting.sexy, http.sexy, iwanta.sexy, join.sexy, lease.sexy, legal.sexy, link.sexy, list.sexy, login.sexy, lookup.sexy, mail.sexy, main.sexy, make.sexy, manage.sexy, market.sexy, marketplace.sexy, mobile.sexy, move.sexy, name.sexy, names.sexy, net.sexy, news.sexy, operations.sexy, ops.sexy, partners.sexy, pay.sexy, payment.sexy, pro.sexy, reg.sexy, register.sexy, registera.sexy, registrar.sexy, registrars.sexy, registry.sexy, renew.sexy, rent.sexy, report.sexy, reports.sexy, reserve.sexy, reserved.sexy, s.sexy, search.sexy, secure.sexy, sell.sexy, seo.sexy, sexy.sexy, shop.sexy, signup.sexy, site.sexy, support.sexy, trade.sexy, transfer.sexy, try.sexy, uni.sexy, unireg.sexy, uniregistry.sexy, use.sexy, web.sexy, webmail.sexy, website.sexy, www.sexy, youare.sexy, your.sexy and youre.sexy.

Of particular note: your.sexy, with which Uniregistry seems to acknowledge the declining standards of grammar among the internet-using public, and www.sexy, which seems to be registered and resolving despite appearing on .sexy’s list of must-block name collisions.

Uniregistry bans front-page porn in .sexy

It’s okay to have a .sexy web site, just don’t make it too sexy.
Uniregistry, which will shortly launch the gTLD, has banned front-page nudity in the .sexy space.
Its Acceptable Use Policy, published this week, says that “content unsuitable for a minor” is not permitted on the home pages of any .sexy domains:

For the .SEXY top-level domain, the Registered Names Holder shall not permit content unsuitable for viewing by a minor to be viewed from the main or top-level directory of a .SEXY domain name. For purposes of clarity, content viewed at the main or top-level directory of a .SEXY domain name is the content immediately visible if a user navigates to http://example.sexy or http://www.example.sexy. No restrictions apply to the content at any other page or subdirectory addressed by a .SEXY Registered Name.

The policy goes on to spell out in legalese that it’s talking about porn, rather than nudity or erotica per se, and that “minor” is defined as anyone under 13.
Keeping the front page of web sites porn-free, requiring age verification before the user is allowed to drill down to the good stuff, is considered good practice among porn sites already.
Domain Name Wire, which first spotted the ban, has also published the policy (pdf).

Uniregistry plans “dot-spanning” Sunrise periods and anti-gaming protection

Uniregistry is to offer a second Sunrise period in its new gTLDs, going over and above what is required by ICANN, aimed at companies with trademarks that “span the dot”.
Say you run a tattoo parlor and have a trademark on “Joe’s Tattoo”. The ICANN-mandated Sunrise would only allow you to register joestattoo.tattoo, but Uniregistry will allow you to buy joes.tattoo as well.
It would also allow “plurals and conjugations”, so a company with a trademark on “Joe’s Tattoos” would presumably also be eligible for joes.tattoo, even though they’re not an exact match.
This Sunrise B plan appears to apply to all of Uniregistry’s forthcoming gTLDs and was approved by ICANN recently (pdf).
The additional service would be invitation-only, restricted to companies that have participated in the regular Sunrise period, which Uniregistry is calling Sunrise A.
For Sunrise A, Uniregistry plans to allow mark owners to register regular resolving domain names or purchase “blocking” registrations, where the domain resolves to a non-monetized Uniregistry placeholder.
Sunrise B participants would not be able to purchase blocking registrations; for “dot-spanning” trademarks the name must resolve.
Uniregistry also plans to implement an “anti-hijack” measure to help prevent — or at least add friction to — .eu-style gaming by domain speculators during its launch periods.
If you participate in either Sunrise period, you won’t be able to later transfer your name to a third party without providing the registry with proof that you’ve also transferred the corresponding trademark registration.

TLDH and others sign first gTLD registry contracts

Top Level Domain Holdings and a few other new gTLD registries signed their first Registry Agreements with ICANN this week.
Its six new RAs were among 15 registry contracts ICANN signed this week. TLDH and its subsidiaries signed for: .horse, .cooking, .nrw (as Minds + Machine GmbH), .casa, .fishing and .budapest.
I’d heard some concerns at ICANN 48 this week about TLDH’s lack of signed contracts to date, but the concerns seem to have been misplaced.
Monolith Registry, partly owned by Afilias, has also signed RAs for .voto and .vote, the latter of which was won at auction.
Small Chinese portfolio applicant Zodiac Holdings got its second and third gTLD contracts: .商城 (“.mall”) and .八卦 (“.gossip”).
German registry I-Registry got .rich and Russian registry The Foundation for Network Initiatives got .дети (“.kids/children”).
Previously contracted parties Donuts and Uniregistry added .tools and .expert (Donuts) and .christmas (Uniregistry) to their portfolios on Friday.
The total number of new gTLDs with RAs is now about 130.