YouPorn spanks ICM as .xxx prices slashed

YouPorn owner Manwin Licensing scored a PR coup in its lawsuit against ICM Registry today, when the .xxx registry agreed to steep financial concessions in order to settle the case.
One of the effects of the settlement, at least according to Manwin, is that .xxx is slashing its registry fees from $60 to $7.85 a year for any new domains registered in May.
That brings .xxx into line with .com pricing, temporarily.
The discount only lasts for a month, but it applies to any length of registration up to 10 years. A 10-year registration would see ICM get $78.50, as opposed to the usual $600.
ICM said it will offer price reductions in future years too.
According to Manwin, this reduction is part of the settlement of the anti-trust lawsuit that it filed in November 2011.
“One of Manwin’s key motivations was to make .XXX pricing lower and more competitive,” the company said in a press release.
However, ICM told its registrars about the price reduction over a month ago, so Manwin’s claims might not be as straightforward as they seem.
What’s less open to interpretation is ICM’s agreement to donate $2 from every new .xxx domain created into “a fund designated by Manwin to support the adult entertainment industry”.
In return, Manwin has agreed to drop its boycott of .xxx — ads for .xxx sites will now be allowed to appear on its highly trafficked “tube” sites.
According to a Manwin press release, ICM has also made the humbling admission that “websites hosted on their adult-specific TLDs are not the only responsible and safe adult content websites.”
The lawsuit originally claimed that ICM and ICANN acted anti-competitively by introducing .xxx. ICM counter-sued saying that Manwin’s boycott was illegal.

ICM’s claims against Manwin thrown out of court

ICM Registry has suffered a blow in its ongoing lawsuit with porn merchant Manwin Licensing, with a judge this week dismissing all of the registry’s counterclaims against the YouPorn owner.
ICM was sued by Manwin on antitrust grounds in late 2011, but returned fire last October with is own set of allegations, which also included claims that Manwin’s boycott of .xxx was anti-competitive.
But the judge in the case, Philip Gutierrez, on Tuesday granted Manwin’s motion to dismiss all of ICM’s claims.
Gutierrez ruled that ICM had failed to argue it had standing to complain under competition law, stating: “Harm to ICM only is not sufficient to constitute antitrust injury. It must allege harm to the competitive process.”
He also granted Manwin’s motion to strike ICM’s claims under California’s anti-SLAPP (Strategic Lawsuit Against Public Participation) laws, which are designed to protect free speech.
The judge decided that Manwin’s boycott of .xxx was protected under the anti-SLAPP statute.
ICM is now entitled to re-draft and re-submit its counterclaims; if it does not do so it will have to pay Manwin’s legal fees in connection with the anti-SLAPP action, Gutierrez ruled.
“The judge has granted us 30 days to amend our counterclaims. We are exploring all options open to us,” ICM CEO Stuart Lawley said.
Manwin’s owner, Fabian Thylmann, was arrested in Brussels last December and extradited to Germany to face charges of tax evasion.

IFFOR targets new gTLDs with policy service

The International Foundation For Online Responsibility, which sets policy for .xxx, wants to broaden its scope and is to launch a “Policy Engine” service for new gTLD registries.
Kieren McCarthy, who has been working for IFFOR as its public participation manager for the last year, has been tapped to lead the organization too, taking over from Joan Irvine as executive director in April.
IFFOR is the sponsoring organization for .xxx, independent but created by registry manager ICM Registry as a way to demonstrate to ICANN that it planned to operate the porn gTLD responsibly.
It’s kept a bit of a low profile since .xxx launched, only emerging to distribute some small grants to worthy causes, but McCarthy says that it’s built up substantial policy-making and compliance expertise.
Now, it wants to let new gTLD registries outsource these functions to it.
“Broadly, the Policy Engine service lets gTLD applicants outsource their policy issues to an independent body,” McCarthy said.
IFFOR reckons plenty of new gTLDs will want such services, especially given the increased interest from governments in how new gTLDs are operated.
As the organization is currently set up to deal only with .xxx — it’s funded $10 a year from every .xxx sold — only three of its nine-member Policy Council are not members of the adult entertainment industry or connected to ICM.
Additionally, ICM’s general counsel is on its three-member board of directors.
But McCarthy said that the Policy Council, which also has substantial expertise in privacy, child protection and free speech issues, usually uses sub-groups to come up with its policies.
“The majority of what we do is applicable across any top-level domain,” he said.
McCarthy is the former journalist and ICANN staffer, current CEO of .nxt. When he takes over from Irvine in April, she is expected to stay around as a consultant.

ICM seizes on Google’s porn algorithm change

Grasping the opportunity for a bit of easy publicity, ICM Registry has seized upon a recent Google algorithm change to promote its .xxx gTLD’s brand.
It was reported earlier this week that Google has made it harder to accidentally stumble across sexually explicit imagery in Google Images by making its Safe Search filtering mandatory in the US.
The company defended itself from cries of censorship by pointing out that porn could still be found, as long as you are a bit more “explicit” about what it is you’re looking for, telling CNet:

If you’re looking for adult content, you can find it without having to change the default setting — you just may need to be more explicit in your query if your search terms are potentially ambiguous.

Now ICM is plugging .xxx as a “workaround” to this problem, saying in a press release today:

one can simply type a description of whatever porn one wants into any search bar followed by the letters “XXX.” Results are instant and on target. For example, if one is looking for adult content that includes a mainstream generic word like “Toys,” simply enter the search term “Toys XXX” and problem solved.

ZDNet gave similar advice in an article this week, and ICM says that traffic to its own search engine, search.xxx, saw a 50% spike in the last 24 hours as a result.
Could this be a portent for changes in user search behavior in the age of niche new gTLDs?

YouPorn owner arrested in tax evasion probe

YouPorn owner and regular ICM Registry antagonist Fabian Thylmann has reportedly been arrested in Belgium in connection with a German tax evasion investigation.
He was taken into custody at Brussels airport today under a warrant from the Cologne District Court, according to German daily Die Welt.
Thylmann is the owner — some say nominally so — of Manwin Licensing, the online porn empire behind brands such as YouPorn, Brazzers and, under license, Playboy.
Manwin sued ICANN and ICM late last year over the .xxx gTLD, saying it violates US antitrust laws, charges which are denied.
The company is also engaged in an ICANN Independent Review Panel procedure over the same issues.
ICM says that the lawsuit, and a related boycott, are merely attempts to disrupt its business. Thylmann, the company claims, offered to invest in ICM but was rebuffed.
According to Die Welt, Manwin’s German headquarters was raided last Tuesday as part of an ongoing tax evasion probe, which was spurred in part by the newspaper’s own investigation into the company.

Russian iTunes Store infiltrated by .xxx banners after snafu [NSFW]

Russian iTunes users reportedly got a shock today when they discovered masses of sexually explicit content from the .xxx gTLD in their iTunes Store.
According to local reports, attempts to visit a part of the store dedicated to foreign movies displayed a bunch of banner ads for .xxx web sites instead of the expected content.

@arcoolov @markgurman @9to5mac This is NOT a joke. How do you explain replies in the comments? A legitimate issue twitter.com/iphones_ru/sta…

— iphones.ru (@iphones_ru) December 5, 2012

Digging a little deeper, it appears that the images were being drawn directly from xxx.xxx, a promotional directory site owned and managed by ICM Registry, the .xxx registry.
Speculation in the Apple blogs is that an iTunes Store developer inadvertently typed “xxx.xxx” somewhere as a placeholder URL, not realizing that .xxx is actually a live TLD.
There’s a lesson here for new gTLD registries somewhere, I’m sure.

ICM has already sold $200k of premium .xxx names

Contrary to some reports, ICM Registry has in fact already seen several sales of premium names from its recently published buy-it-now price list.
Judging by the changes to the list since it was revealed three weeks ago, at least eight domains have been sold for a total of $55,755.
Two new domains — trannyporn.xxx and trannys.xxx — have been added to the list, and a handful of others have had their prices increased, by a total value of $73,820.
These are the domains we’ve managed to establish were sold, along with their original list prices:

888.xxx ($1,320)
bet.xxx ($3,465)
celebrities.xxx ($15,015)
ddd.xxx ($330)
freeliveporn.xxx ($330)
massage.xxx ($18,810)
moms.xxx ($15,000)
own.xxx ($1,485)

Some domains appear to have been repriced, adding almost $74,000 to the total value of the $7.7 million pot. For example, highdefinition.xxx is now listed at $19,000, up from $2,500.
According to ICM, not all of the sold domains have been removed from the published list yet. President Stuart Lawley said a total of over $200,000 has been taken so far.
ICM came in for a bit of criticism from one early .xxx adopter last month, when six-figure investor Mike Berkens accused the company of damaging the TLD by capping prices too early.
There are still over 1,000 available names on the list.

ICM to intro sponsored search results with $75 credit for registrants

Tearing several chapters out of the Google playbook, ICM Registry is to introduce a sponsored search placement service for .xxx registrants, along with a substantial introductory credit.
The company will give each registrant a $75-per-domain credit against its forthcoming search platform, which in many cases will completely offset the cost of their .xxx domain.
As has been pointed out elsewhere, it’s the AdWords model for porn, following on from the recent launch of search.xxx, which ICM says has already had more than 12 million page views.
The ad system is expected to roll out in “early 2013”, but ICM has launched the credits incentive now in order to get early registrants to renew their domain names.
The vast majority of .xxx’s roughly 140,000 registrations occurred during its first two months of general availability and will be coming up for renewal in December and January.
That said, ICM had said even prior to this announcement that its early renewals were looking promising.
The ad credit will apply to all .xxx domains renewed or registered before January 31, 2013, ICM said in a press release.
The company has long talked about its plans for generating advertising and micropayment-based revenue. Over the long term, selling domains may prove to be a small part of its business.

ICM puts $7.7 million of .xxx domains up for sale

Having already sold over $5 million worth of premium .xxx domains names, ICM Registry is putting another 1,000 names on the market, with a total purchase price of over $7.7 million.
Unusually for registry-reserved names, which usually end up at auction, all of the names are priced to sell.
Prices range from $220,000 for girls.xxx to $330 for provide.xxx.
Along with the full list of available names, ICM has also published some rough guides to likely traffic, based on its data gleaned from running search.xxx for the last few weeks.
A “Search Rank” stat ranks the popularity of the relevant keyword in search.xxx queries, while “Traffic Rank” divides the list into five categories by likely traffic volume.
ICM privately sold about $4 million of premium .xxx domains during its pre-launch Founders Program. Domainer Frank Schilling is believed to have invested seven figures.
Its biggest single sale to date is believed to be gay.xxx, which was snapped up for $500,000 last year.
ICM CEO Stuart Lawley told DI that the company still has about 500 premium names — including cams.xxx and tube.xxx — held in reserve to be released at a later date.

ICM files $120m lawsuit over Manwin’s .xxx “boycott”

ICM Registry has counter-sued YouPorn owner Manwin Licensing, looking for at least $120 million in damages, saying the porn giant is using its market power to sideline the .xxx domain.
The company claims that Manwin’s antitrust lawsuit, filed last October, is merely one of several attacks against its business.
The counter-suit alleges that Manwin, after trying and failing to invest in ICM, illegally restrained trade by forcing its business partners not to do business with ICM.
The suit (pdf) reads:

Manwin has utilized its dominance in the adult entertainment industry to encourage the wholesale boycott of the .XXX TLD in the industry in order to destroy any competition tat may arise from the commercialization of .XXX and has secured agreement, either express or implied, by those within the industry that they will not do business with .XXX.

Manwin, for example, “coerced .XXX spokesmodels to end relationships with ICM” and “conditioned contracts with third parties on their non-involvement with the .XXX TLD”, according to ICM.
The counterclaims were filed in a California court on Friday, as the latest stage of the two companies’ ongoing legal battle.
The registry is looking for $40 million in damages for Sherman Act violations, trebled.
Manwin claims ICM and ICANN broke US competition law by setting up the .xxx “monopoly”, which both ICANN and ICM deny.