Verisign Hashlinks – a bid to keep domains sexy?

Verisign has quietly announced a new URL shortening service with an interesting spin.
Domain Hashlinks, which The Domains noticed earlier today, is an effort to bring short vanity URLs, with all the associated benefits, to companies’ existing domain names.
A Hashlink looks like this: example.com#hashlink
Notice the absence of a slash.
Hashlinks, which will compete against services such as X.co and Bit.ly, will allow companies to “remain faithful to your brand”, Verisign says.
The service, which is aimed at marketing departments, will have the usual metrics-tracking baggage that we’ve come to expect from URL shorteners.
It can also be plugged into Google Analytics, according to Verisign.
This is not a “registry service” in the sense that it’s running off of the .com registry. That kind of thing requires ICANN approval, but it’s not what Verisign is doing.
It seems that Domain Hashlinks is actually going to be Javascript-driven, meaning it will work regardless of which TLD your site uses. You don’t need to be Verisign to offer this kind of service.
But will anyone use it?
I had to spend a few minutes reading through the service’s web site to convince myself that it wasn’t simply an April Fools’ Day joke I’d missed.
The choice of stock muzak in the pitch vid seems to be comically evocative of “Smells Like Teen Spirit”, which screams motifs of youth and change… if you’re in your late 30s or early 40s.

But then I got it.
I can see how Domain Hashlinks would appeal to marketing folks. At least, I can see why Verisign would think it would appeal to marketing folks.
There’s a worry in the domain name industry, which goes right to the top at Verisign, that domain names are becoming less relevant as social media navigation becomes more popular.
You’re now just as likely to see a Twitter hashtag on your TV screen as a domain name.
Domain Hashlinks are a blatant attempt to buy into that buzz and keep domain names relevant in marketing.
I haven’t seen the Javascript yet – it hasn’t been released – but as far as I can tell there’s absolutely no reason the same functionality couldn’t be achieved with the humble slash.
I think Verisign is using the # symbol quite simply because it’s far sexier, as punctuation goes, than /.
The concept is either utter genius (think Justin Bieber planking with a LOLcat) or hopelessly embarrassing (think Verisign veep Pat Kane moshing to Nirvana at a wedding reception).
But that’s for the kids to decide.

Timing of .com contract renewal is telling

The timing of the publication of the renegotiated .com registry contract may give Verisign and ICANN the chance to duck some criticism about its price-raising powers.
According to ICANN’s announcement last night, the draft contract is up for public comment until April 26, a week before we find out how much new gTLD business Verisign has won.
Verisign is expected to have secured a large share of the burgeoning market for new gTLD back-end registry services.
It is whispered that a great many North American brands planning to apply for their own dot-brand gTLDs prefer Verisign as their registry provider, due to its reputation for stability.
That up-time is of course provided by a robust, distributed infrastructure paid for over the years by the same .com registrants now facing four more years of price increases.
It’s debatable whether Verisign can continue to make a convincing public interest case for .com price hikes if it’s also profiting by hosting dot-brands on the same boxes and pipes.
But because the public comment period closes April 26 and ICANN does not plan to publish the new gTLD applications until May 2, the argument that Verisign is using .com buyers to subsidize its dot-brand business will have to be made without hard data to back it up.
I doubt such arguments would be heard anyway, frankly. ICANN pretty much has its hands bound by the 2006 contract when it comes to messing around with pricing controls.
For those opposed to price increases, a more effective lobbying strategy might head straight to Washington DC, where the Departments of Commerce and Justice will both study the deal from September.

New .com contract revealed: Verisign gets to raise prices, ICANN makes millions more

ICANN and Verisign both stand to make oodles of cash from their renewed .com registry contract.
A proposed draft of the next .com Registry Agreement was published by ICANN late this evening.
It would enable Verisign to carry on raising its .com registry fee by 7%, in four of the next six years. This provision, which was in the 2006 agreement also, was not unexpected.
But the deal will also see Verisign pay ICANN millions of dollars more in transaction fees.
Instead of a quarterly lump sum, which is capped at $4.5 million in the current contract, ICANN will instead get a $0.25 fee for every year of a .com registered, renewed or transferred.
According to my quick-and-dirty calculations, that would have brought ICANN approximately $6 million in extra revenue — roughly $24 million in total — from .com domains last year.
(The most recent .com registry reports show billable transactions per month worth about $2 million to ICANN, using the new agreement’s calculation. However, under the current agreement ICANN can only collect $18 million per year, according to its last approved budget.)
The revised contract contains several other changes also. I’ll have more coverage of those tomorrow.
The deal, which is not expected to come into effect until the end of November, is now open for public comment until April 26.
It needs to be approved by the ICANN board of directors, the Verisign board and the US Department of Commerce before it is finally signed.

O.co loses 61% of its traffic to O.com

Overstock.com’s decision to rebrand itself O.co had a disastrous effect on the internet retailer’s traffic, according to its CEO.
Patrick Byrne told financial analysts yesterday that “O.co was my bad call” and that “about eight out of 13 people who were trying to visit us through O.co, eight were typing O.com”
It’s not clear what the source of the data is, or why the measurement given was out of 13, but it works out to 61%.
Byrne noted that people may have typed o.co instead after figuring out that o.com doesn’t work – it’s currently reserved, alongside most other single-letter .com domains, by Verisign.
His comments came as Overstock reported 2011 revenue down 3% to $1.05 billion and fourth-quarter revenue down 10% to $314 million.
Byrne said on a conference call with analysts:

There were some bad decisions for which I take responsibility in marketing O.co. O.co was odd in that it worked on one level. It did get out there into people’s heads, but what we discovered, and we turned it up slowly and we actually had nice adoption from the beginning of last year, gradually people shifting to O.co and then, but we got into the Christmas season and it worked terribly for people who were not familiar with us. There was a tremendous amount of traffic diverting to O.com and I think we’ve figured out that it was about eight out of 13 people who were trying to visit us through O.co, eight were typing O.com. Now some of them may have come, trying anyway.

The company bought o.co from registry .CO Internet for $350,000 in July 2010, during the .co relaunch. It later said it would rebrand the company on its new domain.
It even bought the naming rights to the Oakland Coliseum, which is now known as the O.co Coliseum.
Until quite recently, Overstock was an important .CO Internet reference customer. Now, I’m guessing, not so much.
Overstock has “slowed” its rebranding, reverting to referring to o.co as a “shortcut” rather than its primary address, which remains overstock.com.
The company bought o.info last year and this week launched the site as an information portal for its products. It also operates o.biz as a business-to-business site.

Thick .com Whois policy delayed

ICANN’s GNSO Council has deferred a decision on whether Verisign should have to thicken up the Whois database for .com and its other gTLDs.
A motion to begin an official Policy Development Process on thick Whois was kicked down the road by councilors this afternoon at the request of the Non-Commercial Users Constituency.
It will now be discussed at the Council’s face-to-face meeting in Costa Rica in March. But there were also calls from registries to delay a decision for up to a year, calling the PDP a “distraction”.
Verisign’s .com registry contract and the standard Registrar Accreditation Agreement are currently being renegotiated by ICANN, both of which could address Whois in some way.
Today, all contracted gTLD registries have to operate a thick Whois, except Verisign with its .com, .net, .jobs, etc, where the registrars manage the bulk of the Whois data.

Verisign: our DNS was not hacked

Verisign today reiterated that the recently revealed 2010 security breaches on its corporate network did not affect its production domain name system services.
In a statement, Verisign said:

After a thorough analysis of the attacks, Verisign stated in 2011, and reaffirms, that we do not believe that the operational integrity of the Domain Name System (DNS) was compromised.
We have a number of security mechanisms deployed in our network to ensure the integrity of the zone files we publish. In 2005, Verisign engineered real-time validation systems that were designed to detect and mitigate both internal and external attacks that might attempt to compromise the integrity of the DNS.

The statement followed several news reports that covered the hacks and speculated about the mayhem that could ensue if Verisign’s root or .com zone systems were ever breached.
The information the company has released so far suggests that the attacks were probably against back-office targets, such as user desktops, rather than its sensitive network operations centers.

.com passed 100 million mark in October

Verisign’s .com registry passed the 100 million domains under management milestone in October, the company’s monthly ICANN registry report revealed today.
The exact number of domains under management in .com on October 31 was 100,540,971, having increased by a net 690,243 registrations over the course of the month.
That’s a pretty big deal, but for some reason Verisign didn’t make any announcements about it at the time.
ICANN registry reports, which all contracted gTLDs must submit, are filed three months after the fact, for competitive reasons.
The number of domains in the .com zone file – which is what most people track to follow the fortunes of TLD operators — differs from the total number in the registry.
Domains which do not have name servers or are in special registry status codes such as Pending Delete do not show up in the zone file.
Today, RegistrarStats reports 100,052,046 domains in the .com zone, while HosterStats’ count yesterday was 100,045,666. The registry is likely to have about 1.5 million more, however.

Hackers stole data from Verisign, Blacknight

Hackers broke into Verisign’s corporate network and made out with sensitive data, it emerged today.
The attacks happened in 2010 and the company does not believe its all-important domain name infrastructure – which supports .com and several other top-level domains – was compromised.
Reuters broke the news today, but the attack was actually revealed in a Securities and Exchange Commission filing last October. The filing said:

In 2010, the Company faced several successful attacks against its corporate network in which access was gained to information on a small portion of our computers and servers. We have investigated and do not believe these attacks breached the servers that support our Domain Name System (“DNS”) network. Information stored on the compromised corporate systems was exfiltrated.

The filing, which was required under recent SEC disclosure rules, goes on to say that the attacks were “not sufficiently reported to the Company’s management” until September 2011.
It adds that Verisign does not know whether the “exfilitrated” – ie, stolen – data was used by the attackers. The filing does not say what was taken.
Back in 2010, Verisign was still a security company. It did not sell off its SSL business to Symantec until August that year. The filing does not say whether SSL data was breached.
As one of the logical single points of failure on the internet, Verisign is of course the subject of regular attacks, mainly of the performance-degrading distributed denial of service variety.
The bigger worry, as Reuters rather breathlessly notes, is that if hackers could compromise the integrity of the DNS root or .com/.net zones, it could lead to mayhem.
In unrelated news, the domain name registrar Blacknight today revealed that it got hacked on Tuesday.
The attackers may have got away with contact information – including email addresses and telephone numbers – for up to 40,000 customers, the company said.
Financial information such as credit card numbers was not compromised, Blacknight said.
The company has contacted Irish data protection regulators and will also inform the police. Customers are advised to change their passwords.
If you’re a Blacknight customer you’ll also want to be on the lookout for “spear-phishing” attacks in the near future. When the bad guys know your name, it can lead to a more convincing phish.

Verisign to apply for a dozen new gTLDs

Verisign plans to apply to ICANN for about 12 new generic top-level domains, according to the executive in charge of registry services.
“We intend to do about 12. Most of those will be transliterations of .com,” senior vice president Pat Kane said on the company’s fourth-quarter earnings call yesterday.
This does not mark a significant change of strategy – the company has been open about its intention to apply for internationalized domain name variants of .com for over a year – but I believe it’s the first time it’s put a number on it.
It will be interesting to see which gTLDs – if any – Verisign will go for which are not .com IDNs.
My view is that it would make more sense for the company to apply for potentially high-volume .com competitors, such as .web or .blog. It has the capacity, the channel and the cash.
Smaller niche gTLDs may not be worth the distraction and risk, and would be better suited to dedicated registries that can concentrate on more focused marketing.
In any event, we’re going to see some major consolidation in the new gTLD space four or five years from now, and Verisign could well vacuum up cash-making registries at that time.
CEO Jim Bidzos also said on the call that Verisign has been retained to provide the registry for “several” dot-brand applications, but that it will not see any material revenue until 2013.
The major event for 2012, he noted, is the renewal of the .com Registry Agreement with ICANN, which expires at the end of November.
Verisign is already “engaging” with ICANN on this, Bidzos said.
This contract will be posted for public comment and sent to the US Department of Commerce for approval.
I’m expecting controversy, particularly if the contract continues to allow Verisign to increase prices.
It’s going to be harder for Verisign to argue that it needs the extra cash to invest in its infrastructure if it’s also leveraging that infrastructure to win lucrative dot-brand contracts.

Tiny start-up secures .bank gTLD trademark

A likely new gTLD applicant has secured a US trademark on the term “.bank”.
Asif LLC, a Wisconsin start-up with an undisclosed number of employees, won approval for the trademark 4,085,335 on Tuesday, for use in “domain name registration services”.
(UPDATE: Asif actually does business now as Domain Security Company LLC, but the trademark application was filed under its former name.)
As Domain Name Wire reported last year, Asif became a Go Daddy reseller in order to provide the US Patent & Trademark Office with proof it was using the brand.
It appears the gambit was successful, and the company now has a card to play in its inevitable battle with other .bank applicants, such as the BITS/American Bankers Association project.
Mary Iqbal, Asif’s CEO, told DomainIncite today that the company also has a trademark pending in Pakistan, where it has existing business connections.
Iqbal says she’s serious about her .bank application. It’s an idea she’s been working on for a few years.
Asif has been talking to security companies about providing the security infrastructure for the gTLD and has already signed up with a registry back-end provider, she said.
All she was prepared to disclose at the moment is that one of these partners has “ground-breaking encryption technology” and that the company has solid plans for its security profile.
The .bank gTLD would of course be limited to manually verified financial institutions, Iqbal confirmed.
Explaining the reseller site used to get the trademark, Iqbal said: “We intend to use that in future to sell .bank domain names but for now we’re selling names in other TLDs.”
Asif also has a pending US trademark on “.secure”, which it also plans to apply for as a gTLD.
Iqbal said that the company plans to offer small and medium sized e-commerce businesses extra security services if they redirect their customers to their .secure domain at the checkout.
While I am unaware of any other public .secure applicants, the .bank gTLD is expected to be contested.
A joint project of the American Bankers Association and BITS, part of the Financial Services Roundtable, has already essentially confirmed that it plans to apply for .bank and possibly two other financial gTLDs, using Verisign as its back-end.
“We don’t know for sure if they’re going to apply for .bank,” Iqbal said, however. “If somebody else does apply, all I can say that we are the legal rights holder for .bank.”
Holding a trademark on a term gives companies the right to file a Legal Rights Objection against new gTLD applicants.
However, as much as I love an entrepreneur, I estimate the chances of Asif getting its .bank application approved at roughly zero, trademark or not.
There are about half a dozen different reasons Asif would probably not pass the Legal Rights Objection test, which would leave it in a contention set with other .bank applicants.
The final mechanism offered by ICANN to resolve contested gTLDs is an auction, and nobody goes into an auction against the American Bankers Association expecting to win.
ICANN also encourages applicants in contention sets to talk it out amongst themselves before resorting to auction. If Asif is lucky, a rival .bank applicant will pay it to go away before the string goes to auction.
If it’s very lucky, somebody will acquire the trademark before the company – which Iqbal said is already funded but would welcome additional investment – splashes out $185,000 on its application fee.
The Asif .bank application also stands a substantial chance of being objected to by governments.
ICANN’s Governmental Advisory Committee, and in particular the influential US representative, has very strong views on gTLDs purporting to represent regulated industries.
If the GAC is faced with a choice between a .bank backed by the ABA and BITS with a Verisign back-end, and one backed by a tiny Wisconsin start-up, I believe there’s a pretty good chance the Wisconsin start-up is going to find itself on the receiving end of a GAC Advice objection.
Just a hunch.