.XXX domain contract could get approved next Thursday

The application for the porn-only .xxx top-level domain is on the just-published agenda for ICANN’s board meeting next Thursday.
The line item reads merely “ICM Registry Application for .XXX sTLD”, but I’m told that ICM and ICANN staff have already negotiated a new contract that the board will be asked to consider.
If the board gives it the nod, it would keep the .xxx TLD on track for possible delegation at ICANN’s Cartagena meeting in early December, meaning sales could begin as early as the first quarter 2011.
According to last month’s Brussels resolution, the board has to first decide whether the contract complies with previous Governmental Advisory Committee advice, or whether new advice is required.
If ICM jumps that hurdle, the contract will be published for public comment (fun fun fun) for three weeks to a month, before returning to the board for a vote on delegation.
Also on the agenda for the August 5 board meeting is the issue of whether to give Employ Media the right to liberalize its .jobs TLD and start accepting generic domain registrations.
In the HR industry, the .jobs debate has been just as loud as the .xxx controversy was in the porn business. Some companies think the changes would be unfair on existing jobs sites.
There are a few other intriguing items on next Thursday’s agenda.
The board will discuss the “International Dimension of ICANN”, “Data & Consumer Protection” and “UDRP Status Briefing”, all of which strike me as rather enigmatic, among other topics.
The UDRP item may refer to the ongoing debate about whether ICANN needs to have contractual relations with its UDRP providers.

Isn’t it about time for ICANN Las Vegas?

ICANN is now almost 12 years old, it’s held almost 40 public meetings in diverse cities all over the planet, and it’s never been to Vegas. Not once.
That’s got to change.
The organization is currently looking for a North American city in which to hold its fortieth public meeting, slated for next March. It’s the perfect opportunity for a company to put in a Las Vegas bid.
It’s about time ICANN headed to The Strip. It’s got to be the only industry organization in the world to never convene there. If the International Beverage Dispensing Equipment Association gets to have a Vegas convention, why can’t we?
Vegas is the conference center of North America, if not the world. There’s literally dozens of venues capable of handling a thousand or less beardy domain types, all within walking distance of each other.
If the conference facility prices are anything like the hotel room prices, ICANN and its sponsor should be able to find a real bargain.
For overseas visitors on a budget, flights to and hotels in Vegas can be very reasonable – rooms are generally subsidized by the money lost in the casinos downstairs.
The ICANN Fellowship Program would be massively oversubscribed. Live in the developing world? Fancy a free trip to Vegas? ICANN will be fighting off applicants with the proverbial stick.
But who would sponsor such a meeting?
Let me think… we’d be looking for a domain name company with deep pockets, something to sell, and no particular queasiness about sponsoring a Sin City event.
Can you think of anyone like that?
By March 2011, ICM Registry will very likely be in the pre-launch stages of the .xxx TLD.
The company will be looking for registrar partners, trying to assure IP interests that it’s not going to screw them, preparing for its sunrise and landrush periods… perfect timing.
Plus, we could have strippers at the Gala Event.
The stars are aligning on Las Vegas for ICANN 40.
ICANN, ICM – let’s make this happen.

ICANN un-terminates domain name registrar

In what I believe is an unprecedented move, ICANN has renewed a domain name registrar’s accreditation having already sent it a public notice of non-renewal.
A Technology Company, aka ATECH, was told last month that its accreditation would expire July 12 because it had failed to pay over $5,600 in ICANN fees.
That letter (pdf) suggested that ATECH had been in breach since before April 2009.
On all previous occasions, whenever ICANN has posted a notice of termination or non-renewal on its site, it’s game over for that registrar.
Today, a brief note on ICANN’s web site says simply:

A Technology Company, Inc. cured all outstanding contract breaches as of 30 June 2010. A Technology Company, Inc.’s accreditation was renewed on 13 July 2010.

As I’ve previously noted, ATECH and .xxx registry hopeful ICM Registry share a common founder, although the two companies are no longer affiliated.

Investors circle ICM as .xxx enters home straight

ICM Registry’s board of directors has approved a $5 million funding round, following the recent decision by ICANN to put the .xxx top-level domain onto the path to approval.
ICM president Stuart Lawley tells me he’s underwritten the whole round himself, already injecting another $500,000 of his own money into the company.
Venture capital investors have already approached the company, following the Brussels decision two weeks ago, according to Lawley.
In Brussels, ICANN’s board resolved to re-enter contract negotiations with ICM, following years of wrangling with ICANN’s appeals and independent review processes.
While .xxx’s approval and entry to the DNS root is not a slam-dunk, the only major hurdle appears to be ICANN’s Governmental Advisory Committee, and many believe the GAC is unlikely to stick its neck out on such a controversial issue.
While demand for .xxx domains is yet to be proven, there are already 162,000 pre-registrations, which would work out to a $10 million business, not including premium sunrise and landrush fees.
A report in Business Week last week said ICM could bring in $200 million per year in revenue on registrations alone.
I think that’s a pretty ambitious prediction, to be honest, and I can’t help but wonder in Business Week got ICM’s ten-year and one-year projections mixed up.
Even at $60 a pop, that’s still 3.3 million registered domains. The stars will have to align in unexpected ways for .xxx to reach that kind of penetration (pun intended).
ICM has previously projected near-term registrations in the low-mid hundreds of thousands.
ICM is currently owned by a close-knit group of investors, mainly Lawley’s circle and ICM’s management, with Lawley himself owning roughly 70% of the business.

Registrar linked to .xxx loses ICANN accreditation

A Technology Company Inc, a registrar previously linked to the .xxx top-level domain application, has lost its ICANN accreditation for non-payment of fees.
The company, which is also known as NameSystem.com or ATECH, was founded by Jason Hendeles, who is also the founder of ICM Registry, the company behind .xxx.
ICANN has informed ATECH (pdf) that its accreditation will expire and not be renewed on July 12 because it has failed to pay $5,639 in ICANN fees.
ATECH was one of the second wave of competitive registrars to go live, applying for its ICANN accreditation all the way back in 1999. It currently has just a few thousand domains under management.
Hendeles, currently ICM’s vice president of strategic business development, was behind ICM’s original .xxx bid, filed in ICANN’s 2000 round of new TLD applications.
ICM was subsequently taken over by British businessman Stuart Lawley, its current chief executive.
I’m told ATECH was sold to Alok Prakash of Oregon a few years ago.
UPDATE 2010-07-14: ATECH has evidently coughed up, and has regained its accreditation.

ICANN Brussels – .xxx approved but not approved

The controversy over the .xxx top-level domain has for the last few years, at least from one point of view, centered on opposing views of whether it was already “approved”.
ICM Registry has long claimed that ICANN “approved” it in 2005, and believes the Independent Review Panel agreed with that position. ICANN said the opposite.
Regardless of what happened in Brussels yesterday, when the board grudgingly voted to reopen talks on .xxx (to a surprisingly muted audience response), the question of whether .xxx is “approved” is definitely not over yet.
ICM tweeted shortly after the ICANN’s board’s decision:

@ICMRegistry: We are delighted to announce that the #ICANN Board has approved the .xxx top-level domain.

But a couple of hours later, ICANN chair Peter Dengate Thrush told us at a press conference that it categorically was not “approved”.
In terms of getting its point across to the media, ICM’s message trumped ICANN’s, judging by the headlines currently scrolling past me on Google News.
I guess this boils down to a question of definitions.
From the ICANN perspective, a TLD is presumably not “approved” until a contract has been signed and the board has resolved to add it to the root.
The board’s decision yesterday merely sets out the track towards that eventuality, with a few hurdles scattered along the way. In conversation with ICM people, I get the impression they believe the hurdles are low and easily surmountable.
Crucially for ICM, the issue of community support, the stick with which ICANN nearly killed .xxx back in 2007, is now off the table. There will be a quick review of ICM’s books and technical capabilities, but the views of the porn industry now seem pretty much irrelevant.
The only real way I can see .xxx being derailed again now is if the Governmental Advisory Committee issues future advice that unequivocally opposes the TLD.
As Kieren McCarthy noted in some detail over on CircleID, the GAC has never had a hell of a lot of substantial advice to impart about .xxx in its official communiques, so it’s difficult to see where a clash could arise based on its previous missives.
But with the GAC currently using bogus “morality and public order” arguments to jerk everybody around with regards the next new TLD round, it’s not entirely impossible that it could lob one final grenade in ICM’s direction.
This story ain’t over yet.

ICANN Brussels – some of my coverage

As you may have noticed from my relatively light posting week, it really is a lot easier to cover ICANN meetings remotely.
The only drawback is, of course, that you don’t get to meet, greet, debate, argue and inevitably get into drunken fist-fights with any of the lovely people who show up to these things.
So, on balance, I think I prefer to be on-site rather than off.
I was not entirely lazy in Brussels this week, however. Here are links to a few pieces I filed with The Register.
Cyber cops want stronger domain rules

International police have called for stricter rules on domain name registration, to help them track down online crooks, warning the industry that if it does not self-regulate, governments could legislate.

.XXX to get ICANN nod

ICANN plans to give conditional approval to .xxx, the controversial top-level internet domain just for porn, 10 years after it was first proposed.

Governments mull net censorship grab

Governments working within ICANN are pondering asking for a right of veto on new internet top-level domains, a move that would almost certainly spell doom for politically or sexually controversial TLDs.

Will ICANN punt .xxx in Brussels?

Is ICANN set to delay approval of the proposed .xxx top-level domain – again – in Brussels?
That’s my reading of ICANN’s latest document concerning ICM Registry’s long-running and controversial battle for a porn-only TLD.
This week, ICANN submitted its summary of the public comment period that ran to May 10. It’s a fair bit shorter than the one Kieren McCarthy compiled for ICM last month.
As usual, it’s written in a fairly neutral tone. But, if you’re feeling conspiratorial, the mask does slip on occasion, perhaps giving a sense of where the .xxx application could head next.
The ICANN summary occasionally breaks from reporting what a commenter actually said in order to highlight a potential problem they did not address.
Example (my emphasis):

Only two commenters directly addressed the question of further interaction with the Governmental Advisory Committee (GAC) on the .XXX sTLD Application. Both of those commenters were against seeking any further input from the GAC outside of any public comment period. Neither of these commenters – nor any other – addressed the potential violation of the ICANN Bylaws that could result from the Board’s failure to properly consider the advice of the GAC

This suggests, to me, that the ICANN board will be receiving advice to the effect that further GAC input needs to be forthcoming before it can move forward with .xxx.
If this is the case, the GAC might have to produce some advice before next Friday’s board meeting if ICM has any hope of getting back around the negotiating table prior to Cartagena in December.
That’s not the only reason to believe ICANN may punt .xxx again, however. Elsewhere in the report, we read (my emphasis again):

For those in favor of proceeding with the .XXX sTLD Application, many created an alternative option – that ICM and ICANN should proceed to a contract right away. There was substantial discussion on this point in the ICM submissions. Few commenters addressed the technical realities identified within the Process Report ‐ that prompt execution of the agreement negotiated in 2007 is not feasible.

The Process Report referenced says that it is not possible to go straight into contract talks because ICM first applied for .xxx more than six years ago.
This has been a bone of contention. ICM points to .post, which was applied for at the same time as .xxx and only approved late last year, as proof that the passage of time should be no barrier.
But ICANN president Rod Beckstrom doesn’t buy that comparison. He wrote to ICM (pdf) at the end of March noting that .post was backed by the International Postal Union, whereas .xxx is “sponsored” by IFFOR, an organization created by ICM purely to act as its sponsor.
In that letter, Beckstrom talks about due diligence to make sure ICM and IFFOR still satisfy financial and technical criteria, and a review of whether .xxx “can still satisfy the requisite sponsorship criteria”.
I’ll admit that I’m breaking out the crystal ball a bit here, and I’ve been wrong before, but I don’t think it’s looking great for ICM in Brussels.

Council of Europe wants ICANN role

The Council of Europe has decided it wants to play a more hands-on role in ICANN, voting recently to try to get itself an observer’s seat on the Governmental Advisory Committee.
The Council, which comprises ministers from 47 member states, said it “could encourage due consideration of fundamental rights and freedoms in ICANN policy-making processes”.
ICANN’s ostensibly technical mission may at first seem a bit narrow for considerations as lofty as human rights, until you consider areas where it has arguably failed in the past, such as freedom of expression (its clumsy rejection of .xxx) and privacy (currently one-sided Whois policies).
The Council voted to encourage its members to take a more active role in the GAC, and to “make arrangements” for itself to sit as an observer on its meetings.
It also voted to explore ways to help with the creation of a permanent GAC secretariat to replace the current ad hoc provisions.
The resolution was passed in late May and first reported today by IP Watch.
The Council of Europe is a separate entity to the European Union, comprising more countries. Its biggest achievement was the creation of the European Court of Human Rights.

Porn domain firm urges ICANN to ignore the haters

ICM Registry has asked ICANN to set aside the views of thousands of naysayers and approve the porn-only .xxx top-level domain as soon as possible.
The company has sent three documents to ICANN today, two of which set out ICM’s position in the same firm tone that has characterized its previous missives.
Basically: no more delays, your only option here is to get back into contract talks now.
I would say ICM is drawing a line in the sand, but ICM has drawn so many lines in the sand recently it’s beginning to look like a game of beach tic-tac-toe (which, visualizing it, is kinda appropriate).
The third document is a post-game summary of ICANN’s recently closed comment period on the .xxx application, which attracted record comments. That’s written by former ICANN public participation wonk Kieren McCarthy and is more measured in tone.
ICM president Stuart Lawley believes that the thousands of copy-paste comments from US-based anti-porn Christian groups can be safely ignored. I get the impression ICANN will probably agree.

The volume of comments on an entirely irrelevant issue – that is, the content of websites on the Internet – was one of the original reasons this process went off the rails. ICANN should not repeat its earlier mistakes and pander to those interests.

Given that a substantial number of comments came from the porn industry itself, notably the Free Speech Coalition, Lawley wrote that “debate about community support is no longer appropriate”.
ICM’s on shakier ground here than with the Christians. A TLD for a sponsored community that is unequivocally hated (NSFW) by a vocal part of that community can’t look good.
But the FSC, along with the Adult Entertainment Broadcast Network, one of its members, “represent only a small fraction of the adult industry”, Lawley claimed.
Over 100,000 .xxx domains have been pre-registered over the last five years and several hundred of these people sent ICM’s copy-paste letter to ICANN. ICM says this indicates adult industry support, though I think that’s a less than watertight argument.
ICANN’s board will undoubtedly have a good old chinwag about their current predicament at their retreat this weekend, but they’re not due to make any decisions until the Brussels meeting a little over a month from now.