Showing posts with label generic top-level domains. Show all posts
Showing posts with label generic top-level domains. Show all posts

2017-07-21

New gTLD .AMAZON IRP Final Declaration, What Happens Next?

ICANN Loses Another New gTLD IRPAmazon EU S.à.r.l. v. ICANN (.AMAZON) | ICANN.org:
New gTLD .AMAZON IRP Final Declaration
New gTLD .AMAZON IRP Final Declaration (pdf)
Independent Review Process Final Declaration (IRP) (pdf, 293KB) 11 July 2017, excerpt (pp. 2-3):
The [ICANN] Board, acting through the NGPC [ICANN’s New gTLD Program Committee], acted in a manner inconsistent with its Articles, Bylaws and Applicant Guidebook because, as more fully explained below, by giving complete deference to the consensus advice of the Government Advisory Committee (“GAC”) regarding whether there was a well-founded public policy reason for its advice, the NGPC failed in its duty to independently evaluate and determine whether valid and merits based public policy interests existed supporting the GAC’s consensus advice. In sum, we conclude that the NGPC failed to exercise the requisite degree of independent judgment in making its decision as required by Article IV, Section 3.4(iii) of its Bylaws. (See also ICANN, Supplementary Procedures, Rule 8(iii) [hereafter “Supplementary Procedures”] ... While the GAC was not required to give a reason or rationale for its consensus advice, the Board, through the NPGC, was. In this regard, the Board, acting through the NGPC, failed in its duty to explain and give adequate reasons for its decision, beyond merely citing to its reliance on the GAC advice and the presumption, albeit a strong presumption, that it was based on valid and legitimate public policy concerns. An explanation of the NGPC’s reasons for denying the applications was particularly important in this matter, given the absence of any rationale or reasons provided by the GAC for its advice and the fact that the record before the NGPC failed to substantially support the existence of a well-founded and merits-based public policy reason for denying Amazon’s applications ..." (emphasis added)
Costs, fees, expenses and attorney fees (p. 53):
"ICANN shall reimburse Amazon the sum of US$163,045.51, representing that portion of said fees and expenses in excess of the apportioned costs previously incurred by Amazon ... Each side will bear its own expenses and attorneys’ fees."
 So what happens next? 
"The practical effect of the Panel's ruling is that the dispute is remanded for further proceedings. In other words, Brazil, Peru, the GAC and ICANN, as well as Amazon, may now supplement and strengthen their positions. The Applicant Guidebook states that the objective for ICANN is to "determine whether approval would be in the best interest of the internet community." §5.1. Here, all the interested parties, including Brazil, Peru and the GAC, are members of that community. See Bylaws, Art. I, § 2(11). They all share a common objective and potentially a common benefit in promoting their respective interests anew in light of this Declaration."--Hon. A. Howard Matz, IRP supra, p.67 (emphasis added)

Domain Mondo's analysis and opinion:

Upon "remand" and in accordance with the "objective for ICANN" referenced by Judge Matz above, Brazil, Peru, and the GAC, may very well prevail. As I have noted before, ICANN's dot BRAND new gTLDs were a BAD idea and completely contrary to the historic principles of the internet, see RFC 1591 and News Review: ICANN's Extortionate .BRAND Scam Failing.

Trademarks as generic top-level domains, and presumptive rights of renewal (of gTLD registry agreements), are two of the worst corruptions of the global internet DNS foisted by inept ICANN and its corrupt GNSO upon the global internet community. All TLDs are global public resources, NOT property, in accordance with RFC 1591 and the U.S. government's argument in the recent Weinstein case (pdf). But greed, conflicts of interest, cronyism, and incompetence govern ICANN policy-making and implementation.
"[W]hen a decision is taken about a possible new top-level domain, ICANN's job is to work out, in a transparent and accountable manner, whether it is really in the best interest of the world as a whole, not just of those launching the new domain."--Sir Tim Berners-Lee at the Net Mundial Conference, April, 2014, in São Paulo, Brazil.

-- John Poole, Editor, Domain Mondo 

feedback & comments via twitter @DomainMondo


DISCLAIMER

2015-10-02

ICANN Renews .CAT, .PRO, .TRAVEL, RAs with URS Included

UPDATE 6 Feb 2016: ICANN Board DENIES Reconsideration Requests 15-19 (the ICANN Business Constituency & the ICANN Noncommercial Stakeholder Group (NCSG)) and 15-20 (The Internet Commerce Association), and ICANN Board adopts the BGC's Recommendation on Reconsideration Requests 15-19 and 15-20 (pdf).[--end of UPDATE--]

On September 28, 2015, the ICANN Board approved renewal of the .TRAVEL, .CAT, and .PRO Registry Agreements with Specification 7, Rights Protection Mechanisms, included, which means the Uniform Rapid Suspension system (“URS”) adopted by ICANN for new gTLDs is now applicable to all three of these "legacy" gTLDs (generic top-level domains). This issue had caused some controversy as it was applying new gTLDs' policy to legacy gTLDs without going through a Policy Development Process (PDP). The ICANN Board's analysis and reasoning in approving the inclusion of the URS for these three legacy gTLDs stated that this does not set a precedent for other legacy gTLDs (e.g., .COM, .NET, .ORG):
"[This] is not a move to make the URS mandatory for any legacy TLDs, and it would be inappropriate to do so. In the case of .TRAVEL, [.CAT and .PRO] inclusion of the URS was developed as part of the proposal in bilateral negotiations between the Registry Operator and ICANN." (excerpt from ICANN Board Resolution, emphasis added)
The full analysis and reasoning of the Board:

"The Board carefully considered the public comments received for Renewal Registry Agreement, along with the summary and analysis of those comments. The Board also considered the terms agreed to by the Registry Operator as part of the bilateral negotiations with ICANN. While the Board acknowledges the concerns expressed by some community members regarding the inclusion of the URS in the Renewal Registry Agreement, the Board notes that the inclusion of the URS in the Renewal Registry Agreement is based on the bilateral negotiations between ICANN and the Registry Operator, where Registry Operator expressed their interest to renew their registry agreement based on the new gTLD Registry Agreement.

"The Board notes that the URS was recommended by the Implementation Recommendation Team (IRT) as a mandatory rights protection mechanism (RPM) for all new gTLDs. The GNSO was asked to provide its view on whether certain proposed rights protection mechanisms (which included the URS) were consistent with the GNSO's proposed policy on the introduction of New gTLDs and were the appropriate and effective option for achieving the GNSO's stated principles and objectives. The STI considered this matter and concluded that "Use of the URS should be a required RPM for all New gTLDs." That is, the GNSO stated that the URS was not inconsistent with any of its existing policy recommendations.

"Although the URS was developed and refined through the process described here, including public review and discussion in the GNSO, it has not been adopted as a consensus policy and ICANN has no ability to make it mandatory for any TLDs other than new gTLD applicants who applied during the 2012 New gTLD round.

"Accordingly, the Board's approval of the Renewal Registry Agreement is not a move to make the URS mandatory for any legacy TLDs, and it would be inappropriate to do so. In the case of .TRAVEL [.CAT and .PRO], inclusion of the URS was developed as part of the proposal in bilateral negotiations between the Registry Operator and ICANN.

"Additionally, the Board considered the comments regarding transitioning legacy gTLDs to the new form of the registry agreement. The Board notes that existing registry agreement calls for presumptive renewal of the agreement at its expiration so long as certain requirements are met. The renewal agreement is subject to the negotiation of renewal terms reasonably acceptable to ICANN and the Registry Operator. The renewal terms approved by the Board are the result of the bilateral negotiations called for in the current registry agreement, and transitioning to the new form of the registry agreement would not violate established GNSO policy. As described below, the new form of the registry agreement provides some operational advantages, in addition to benefits to registrants and the Internet community including public interest commitments, requiring the use of registrars under the 2013 RAA, and the ability for ICANN to designate an emergency interim registry operator in the event that emergency thresholds for critical registry services is reached." (emphasis added)

John Poole, Editor of Domain Mondo, was among those who submitted comments opposing inclusion of the URS into the Registry Agreements of these legacy gTLDs--See Most Comments OPPOSE ICANN Extending URS Policy to dotTRAVEL and Comments Overwhelmingly Oppose URS for CAT and PRO gTLDs.

Domain Mondo and its Editor thank the ICANN Board of Directors for their careful review and consideration of all public comments, and specifically thank the Board for stating its approval of the three Renewal Registry Agreements is "not a move to make the URS mandatory for any legacy TLDs, and it would be inappropriate to do so," and further stating: it [URS] "has not been adopted as a consensus policy and ICANN has no ability to make it mandatory for any TLDs other than new gTLD applicants who applied during the 2012 New gTLD round."




DISCLAIMER

2015-09-22

New gTLDs Registry Minds+Machines Reports Loss, Hopes for Profit 2016

1-year stock chart on MMX
Above: 1-year stock chart on MMX, note Sep 26, 2014 price of 12.00 pence=US$0.19 (source: google.com)
In a release today, new gTLDs registry operator Minds + Machines Group Limited (domain name: mindsandmachines.com), which trades on the London Stock Exchange under the symbol MMX  (LON: MMX), reported a H1 2015 loss of (US$3,695,000) for the 6 month period ending June 30, 2015, compared with a profit of $USD4.9 million for the same period in 2014, primarily due to lower profit from participating in new gTLD (generic top-level domain) auctions. Shares closed today at 8.62 pence which equals USD $0.13. Stockholders have lost money as MMX shares declined over the past year--e.g., see in chart above 12.00 pence (US$0.19) high in Sept 2014.

Among other highlights reported:
  • Headcount has been reduced from 58 to 44 even as the sales and marketing teams grew from 2 to 12;
  • Board committed to achieving its stated goal of crossing over into profitability in 2016;
  • 217,200 domains were under management, representing 3.43% of new gTLD market;
  • Cash reserves at period end up 2% at $46.9 million from 31 December 2014 reflecting private auctions taking place in period;
  • Company authorised to purchase up to £15 million of shares in the open market during the next 12 months;
  • A copy of the unaudited interim accounts is available at www.mindsandmachines.com. 
According to the company, Minds + Machines operates three distinct business lines: the registry, through which it is a major owner of generic top-level domains ("gTLDs"); the registry service provider, whose technology powers the top-level domains of MMX and its clients; the registrar, which provides an additional distribution channel through which the Company can target specific vertical markets.




DISCLAIMER

2015-06-22

Most Comments OPPOSE ICANN Extending URS Policy to dotTRAVEL

Comments received by ICANN overwhelmingly OPPOSE extending URS Policy to .TRAVEL and other legacy gTLDs (generic top-level domains). Comment period closed June 21, 2015 23:59 UTC.

Only two comments FOR extending the URS Policy to .TRAVEL were received--one from new gTLD Registry Operator DONUTS and the other from IPC (Intellectual Property Constituency).

Among the many comments OPPOSING were those received from the Electronic Frontier Foundation (EFF), the ICANN Business Constituency, the ICANN Non-Commercial Stakeholders Group (NCSG), the Internet Commerce Association (ICA), and IP Justice, which stated:
"IP Justice opposes this illegitimate attempt by ICANN staff to further circumvent proper policy development processes in the creation and imposition of new gTLD policy. In addition to the inappropriate process utilized, the policy itself will chill freedom of expression as domain names will be quickly suspended without any fair opportunity for consumers to defend their lawful rights to use their domain names. Particularly at this critical time when the world is watching ICANN to see if it has begun to fix its accountability crisis, this illegitimate imposition of a dangerous policy on the world is extremely disturbing." 
Domain Mondo thanks all those who submitted comments opposing the proposed extension of URS policy to .TRAVEL. Thanks also to Philip Corwin and the Internet Commerce Association for taking the lead and "sounding the alarm" on this attempt by ICANN staff to apply new gTLD URS policy against legacy gTLD domain name registrants. Below are the links to all comments that were received--FOR and OPPOSE--

2015 Jun 22
OPPOSE: Re: Proposed Renewal of .TRAVEL Sponsored TLD Registry Agreement Phil Temperly

2015 Jun 21
OPPOSE: NCSG Comments Edward Morris
OPPOSE: Policy Needs to Developed Through Legitimate Process. Staff Created and Imposed Policies Like This Are Illegitimate. URS Will Chill Freedom of Expression Robin Gross
OPPOSE: Creation of De Facto Consensus Policy via Contract Renewal Process is a Bylaws Violation Phil Corwin
OPPOSE: Business Constituency (BC) comment on Proposed .TRAVEL Registry Agreement. Steve DelBianco

FORDonuts comment - Proposed Renewal of .TRAVEL Sponsored TLD Registry Agreement Mason Cole

2015 Jun 17
OPPOSEProposed Renewal of .TRAVEL Sponsored TLD Registry Agreement Jay Chapman

FORIPC Comments on Proposed Renewal of .TRAVEL Registry Agreement Greg Shatan

2015 Jun 12
OPPOSE: EFF comments on .travel renewal Jeremy Malcolm (Electronic Frontier Foundation)
OPPOSE: Proposed Renewal of .TRAVEL Sponsored TLD Registry Agreement Rook Media

2015 May 25
OPPOSE: Proposed Renewal of .TRAVEL Sponsored TLD Registry Agreement John Poole (Editor of Domain Mondo)

2015 May 22
OPPOSE: Opposition domains@xxxxxxxxxxxxxxxx
OPPOSE: Opposed to inclusion of URS in .TRAVEL registry agreement George Kirikos
OPPOSE: Proposed Renewal of .TRAVEL Sponsored TLD Registry Agreement Tim Hall

2015 May 21
OPPOSE: URS issues and concerns eCorp

Source: ICANN Email Archives: [comments-travel-renewal-12may15]
See also for more information: https://www.icann.org/public-comments/travel-renewal-2015-05-12-en.




2014-10-03

Reason #2 Why New gTLD Domains Are a #FAIL

Second part of the post from yesterday --

Reason #2 new gTLD domains are a #FAIL: Increasing Supply Does Not Increase Demand

New gTLDS are to Domains what Atlantic City is to Gambling--

What happened in Atlantic City, is already happening to the new gTLDs (new generic Top-Level Domains)--see Most New gTLD Domain Names Are On Life-Support, Infecting Other gTLDs. ICANN is flooding the domain name ecosystem with over 1300 new gTLDs (from just 22)--creating market chaos, confusion, and gross oversupply. New gTLD registries had to pay an initial fee of $185,000, plus other costs, and auction fees, which in many cases total in the millions of dollars ($US) invested before the first domain name is sold!

Here's what happened in Atlantic City--"... Everyone bought into the myth that gambling would bring in needed tax revenue, and that you could attract plenty of blackjack and slot machine players no matter how many casinos you built. But the demand was not infinite, and ultimately got divided among all these sites, hurting Atlantic City perhaps the most. How did city and state leaders react? By unveiling a plan to turn Atlantic City into Las Vegas. Somehow, their response to a glut of gambling was to add more gambling, only with lots of flash and nightclubs and fine dining. Revel, the linchpin of this strategy... racked up almost $1 billion in debt during the construction phase, straining the budget right from the beginning. Revel never made a dime, and flamed out just two years after its opening...." (source)

Sound familiar? Everyone at ICANN bought into the myth that more gTLDs would bring in more registrant fees, no matter how many new gTLDs were flooded into the domain name ecosystem.

Donald Trump on Atlantic City (Bloomberg video, August 11, 2014):

Donald Trump on what happened to Atlantic City--"Too much competition"-- tremendous competition eating away at itself --Trump talks to Bloomberg's Trish Regan

Atlantic City Politicians = ICANN
Atlantic City Casinos = new gTLDs' registry operators
Atlantic City Gamblers = new gTLDs' domain name registrants

Lessons learned:
  1. Demand is NOT infinite. 
  2. Increasing supply does NOT increase demand. 
  3. Too much competition is a BAD thing.



see also: ICANN, New gTLD Domain Names, Universal Acceptance Another #FAIL

2014-10-02

Why ICANN's New gTLD Domains Are A #FAIL, Reason #1

There are 2 main reasons why most of ICANN's new gTLDs (generic top-level domains) are a #FAIL and the first reason goes to the core threshold question that ICANN, its Board of Directors, and all stakeholder groups, should always ask, but particularly whenever proposing, considering or implementing a change, or an expanded or new program:

THE QUESTION: Does this increase or decrease costs for domain name registrants?

The answer will invariably always guide one to the right decision. If the answer is that the proposal increases costs, then that should usually end the discussion and any further consideration. Unfortunately, ICANN (and I use the term "ICANN" here in the collective sense of its Board of Directors, Officers, staff, and stakeholders) either failed to ask THE QUESTION or failed to give proper weight to the answer. There is no question that the new gTLDs increase costs for domain name registrants--the registration and renewal fees for new gTLD domain names are higher* on average (sometimes much higher), businesses and trademark holders are bearing increased costs in defensive registrations, trademark enforcement, and related costs, and none of these increased costs are outweighed by any benefits that new gTLDs bring to the marketplace. That is why University of Pennsylvania Wharton School marketing professor Peter Fader, co-director of the Wharton Customer Analytics Initiative, said:
"I really can’t see a legitimate upside where new benefits [of the new gTLDS] outweigh costs, and everyone I mention this to feels the same way. People just shake their heads. It’s all about the money. They [ICANN] are creating these extensions because they can." (source: Knowledge@Wharton).
It is also the reason that the former Chairman of the U.S. Federal Trade Commission said: "The public at large, consumers and businesses, would be better served by no expansion or less expansion [of new gTLD domains]."

If one looks behind the veil at ICANN, it is easy to understand why ICANN failed to either ask the threshold question, or heed its answer: greed and conflicts of interest at the highest levels of ICANN (Board of Directors, Officers, staff, "high stakes" stakeholders with vested interests)--see this and this and this and this and this. And of course, let's not forget that no one within ICANN, particularly within the Board of Directors or influential key stakeholder groups, represents the interests of domain name registrants--there is no "domain name registrants' interest group" within ICANN--for a very good reason: ICANN has been "largely captured by the domain name industry" (registry operators and registrars and their service providers), and they view domain name registrants as captive consumers to be exploited for financial gain. To grant domain name registrants equal power to the domain name industry, or "oversight authority" to governments (which traditionally guard the "public interest" and prevent exploitation of consumers), would be a threat to the domain name industry's power within ICANN. Remember it was the U.S. Department of Commerce, not ICANN, that insisted on limiting what Verisign could charge for .COM registration and renewal fees through November, 2018, in the last contract (2012). And that is why ICANN today is adamant that neither governments nor domain name registrants have equal footing nor oversight of ICANN's operations which could threaten the power of their favored stakeholders--registries and registrars and their service providers. After all, it's the high-stakes vested interest stakeholders--the registries and registrars--which ICANN officers refer to as their "customers."

*Note: No one at ICANN ever polled the global internet community or domain name registrants, at the time new gTLDs were under consideration, with the question: "Do you want the costs of domain name registration and renewal fees to double, triple, or even be unlimited/unregulated, and other costs to increase dramatically, in return for increasing the number of gTLDs from 22 to more than 1300?"

Tomorrow: Reason #2 new gTLD domains are a #FAIL--the market can be cruel, sometimes very cruel--some high-stakes players are about to find out just how cruel the market can really be.

See also: ICANN, New gTLD Domain Names, Universal Acceptance Another #FAIL





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