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Kevin Murphy, August 3, 2020, Domain Policy

After a little more than two years, an ICANN working group has finalized the policy that could allow people to start accessing unredacted Whois records again.

Despite the turnaround time being relatively fast by ICANN standards, the Expedited Policy Development Process group has delivered what could be the most lengthy and complex set of policy recommendations I’ve seen since the policy work on new gTLDs over a decade ago.

Don’t get too excited if you’re itching to get your hands on Whois data once more. It’s a 171-page document containing over a hundred recommendations that’s bound to take ages to implement in full, if it even gets approved in the coming weeks.

I’d be surprised if it’s up and running fully before 2022 at the earliest. If and when the system does eventually come online, don’t expect to get it for free.

It’s already being slammed in multiple quarters, with one constituency saying it could result in a “multi-year-implementation resulting in a system which would effectively be a glorified, overly complex and very expensive ticketing system”.

Trademark owners are livid, saying the proposed policy completely fails to address their needs, and merely entrenches the current system of registrar discretion into formal ICANN policy.

The recommendations describe a proposed system called SSAD, for System for Standardized Access/Disclosure, which would be overseen by ICANN and enforced through its contracts with registries and registrars.

It’s a multi-tiered system involving a few primary functions, wrapped in about a thousand miles of red tape.

First and foremost, you’ve got the Central Gateway Manager. This would either be ICANN, or a company to which ICANN outsources. Either way, ICANN would be responsible for overseeing the function.

The gateway manager’s job is to act as a middleman, accepting Whois data requests from accredited users and forwarding them to registries and registrars for processing.

In order to access the gateway, you’d need to be accredited by an Accreditation Authority. Again, this might be ICANN itself or (more likely) a contractor.

The policy recommendations only envisage one such authority, but it could rely on a multitude of Identity Providers, entities that would be responsible for storing the credentials of users.

It’s possible all of these roles and functions could be bundled up in-house at ICANN, but it appears the far more likely scenario is that there will be a bunch of RFPs coming down the pike for hungry contractors later this year.

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Anyone with a “legitimate interest or other lawful basis”, it seems. The document is far from prescriptive or proscriptive when it comes to describing possible users.

But the recommendations do give special privileges to governments and government-affiliated entities such as law enforcement, consumer protection bodies and data privacy watchdogs.

For law enforcement agencies, the proposed policy would mandate fully automated processing at the gateway and at the registry/registrar. It sounds like cops would get pretty much instant access to all the Whois data they need.

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There would be at least three priorities of Whois request under the proposed system.

The first, “Urgent”, would be limited to situations that “pose an imminent threat to life, serious bodily injury, critical infrastructure (online and offline) or child exploitation”. Non-cops could use this method too. Contracted parties would have one business day or three calendar days to respond.

The second would be limited to ICANN-related procedures like UDRP and URS, and registrars would have a maximum of two business days to respond.

The third would encapsulate all other requests, with some priority given to fraud or malware-related requests. Response times here could be a long as 10 days.

I’m trying to keep it simple here, but a lot of the recommendations describe the aforementioned red tape surrounding each stage of the process.

Registrars and registries would be bound to service level agreements, there’d be appeals processes for rejected requests, there’d be logging, audits, reporting, methods to de-accredit users and methods for them to appeal their de-accreditation… basically a shedload of checks and balances.

And who’s going to pay for it all?

ICANN’s latest guesstimate is that SSAD will cost $9 million to build and another $8.9 million annually to operate.

It seems the main burden will be placed on the shoulders of the end-user requestors, which will certainly have to pay for accreditation (which would have to be renewed periodically) and may have to pay per-query too.

Trademark lawyers within the ICANN community are furious about this — not because they have to pay, but because SSAD functionality does “not come close to justifying the costs”.

They’d envisaged a system that would be increasingly automated as time went by, eventually enabling something pretty much like the old way of doing Whois lookups, but say the current proposals preclude that.

It’s also not impossible that the system could lead to higher fees for registrants.

The EPDP group is adamant that domain registrants should not have to pay directly when somebody queries their Whois data, and says the SSAD should be cheaper to run for registrars than the current largely manual system, but acknowledges there’s nothing ICANN can do to stop registrars raising their prices as a result of the proposed policy.

The recommendations say that ICANN should not take a profit from SSAD, but do not discount its contractors from making a fair return from their work.

Prices are, like much else described in this Final Report, still very much TBD. The EPDP working group was given a lot to accomplish in very little time, and there’s a lot of buck-passing going on.

And there’s no guarantee that the policy will even be approved in the short term, given the level of dissent from working group participants.

Before the recommendations become formal Consensus Policy — and therefore binding on all registries and registrars — they first have to be approved by the GNSO Council and then the ICANN board of directors.

The first opportunity for the GNSO Council to vote is at its meeting September 24, but it could be a very tight vote.

For an EPDP to pass, it needs a supermajority vote of the Council, which means a two-thirds majority of both “houses” — the Contracted Parties House (ie, registries and registrars) and the Non-Contracted Parties house — or a 75% approval in one house and a simple majority in the other.

The way things stand, it looks to me like the CPH will very likely vote 100% in favor of the proposal, which means that only seven out of the 13 NCPH members will have to vote in favor of the report in order for it to pass.

The NCPH is made up of six people from the Non-Commercial Stakeholders Group, which generally hold pro-privacy views and have already criticized the report as not going far enough to protect registrants’ data.

Six more NCPH members comprise two members each from the Intellectual Property Constituency, Business Constituency and Internet Service Providers Constituency.

The IPC and BC put their names to a joint minority statement in the Final Report saying that its recommendations:

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I’m chalking those four Council members down as reliable “no” votes, but they’ll need the support of the two ISP guys and the wildcard Nominating Committee appointee in order to bury this policy proposal.

If it does pass the Council, the next and final stage of approval for SSAD would be the ICANN board, probably at ICANN 69 in October.

But then ICANN would actually have to build the damn thing.

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In the same guesstimate that put a $9 million price tag on the system, ICANN reckoned that it would take a full year for a third party to build and test SSAD. That’s not even taking registrar integration into account.

So, if you’re looking for streamlined Whois access again, you’d best think 2022 at the very earliest, if ever.

If you wish to read the EPDP working group’s Final Report, you can do so here (pdf).

UPDATE: This article originally misstated the date of the next GNSO Council meeting at which this proposal could be considered. It’s not August 20. It’s September 24, which means initial ICANN board consideration is out in October. Add another month to whatever timeline you were hoping for.

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Tucows has sold its Ting Mobile brand and customer based to DISH Network, repositioning itself as a provider of white-label back-end mobile services.

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It’s basically a move away from providing customer-facing mobile services. Instead, it will provide the back-end technology platform, and DISH is its first customer.

CEO Elliot Noss said in a prerecorded statement:

We still get asked about the connective tissue between Domains and the mobile business, and it all boils down to our competence in billing, provisioning, and customer service for underserved technology markets.

He added that Tucows has been approached by other potential MSE partners over the years.

DISH gets to use the Ting brand for two years, with an option to acquire it at the end. Tucows will continue to offer Ting wired broadband services, but will change its name if DISH exercises the buyout option.

All Ting mobile customers have been handed over to DISH as of Saturday, but no money has changed hands up-front. Instead, Tucows expects to see increased margins over time from the cost savings and monthly fees DISH will pay it. It will also be paid for transitioning the business over to DISH.

Tucows expects the deal to be “neutral to slightly negative” to its 2020 earnings.

DISH is primarily a satellite television provider, but it entered the mobile market a month ago with the acquisition of Boost Mobile.

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Kevin Murphy, July 30, 2020, 老王v2.2.8

MMX saw poorer-than-expected sales of porn-related defensive registrations in the first half of the year, the only blip in what was otherwise a strong period for the company.

The registry updated the market today to say that its domain name base grew by 31% year over year during the half, ending June with 2.38 million names under management. It only grew by 19% in the same period last year.

Billings for H1 were up 7% at $7.9 million, MMX said.

But because the mix shifted away from one-off brokered sales, which are registered on the earnings report as a lump sum, and towards regular automated registrations, which are recognized over the lifetime of the reg, MMX expects to report revenue 5% down on last year.

While that’s all fair enough, the company said that it didn’t sell as many defensive blocks in .xxx, .sex, .porn and .adult as it had expected, which it blamed on coronavirus:

Management also notes that expected H1 channel sales from the Company’s brand protection activity were held back due to the impact of COVID-19, but anticipates those brand protection initiatives that were delayed in Q2 will resume in H2.

It’s a reference to the AdultBlock and AdultBlock Plus services 老王v最新版, which enable trademark owners to block (and not use) their marks in all four adult TLDs for about $350 to $800 a year.

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Kevin Murphy, July 30, 2020, Domain Sales

While the can be little doubt that the domain industry saw a boost in the second quarter due to the impact of coronavirus lockdown mandates, the same may not be true for those playing in the secondary market.

Data out from Escrow.com last night shows the weakest quarter for secondary market sales since the company started publishing its data two years ago, with average prices and overall sales volume down.

The company, which acts as a trusted intermediary for domain transfers, said it processed $55.2 million of sales in Q2, down from $85.8 million in the first quarter.

All of the primary geographical markets saw a decline apart from Hong Kong, with the US suffering the worst dip.

The US obviously has taken the biggest dose of the virus and has little in the way of a social safety net, so it’s perhaps not surprising that buyers are being more cautious with their cash.

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It’s tempting to speculate that while the virus has created more customers for domain names, fears over the incoming recessions have made buyers less likely to want to splash out on a premium domain.

Escrow.com said that the median price of a domain name without associated content dropped from $3,000 to $2,500 in the quarter.

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Nominet has responded to criticism of its plans to introduce registry-level .uk drop auctions by saying it’s not about money-grabbing and is not guaranteed to even happen.

Registry MD Eleanor Bradley today blogged:

In some quarters the commentary suggests the driver for change is financial, or to make life more difficult for some business models. It is not.

As commercial gain was not our objective, we have suggested that any additional funds raised by changing the policy would be directed towards public benefit activity or used to provide specific services to registrars. Indeed, how to best spend additional funds that result from any policy change is part of the consultation.

The consultation referred to here was 老王加速app下载. It suggests replacing the current drop-catching system, in which Nominet suspects some members “collude” to pool their EPP connections, with one of two new processes.

One would be a straightforward auction of desirable dropping names. The other would be to charge drop-catchers up to £6,000 a year for extra concurrent registry connections.

Bradley wrote that “the assumption in some quarters that an auction approach is our preferred option — a fait accompli –- are wide of the mark”.

As I’m one of the people who reported that auctions were Nominet’s “apparently preferred” option, I’ll note that my take was based on the company’s own consultation document, which scores auctions more highly than the alternative on a five-point scale of its own devising.

And a preferred option is not the same as a fait accompli, of course.

The consultation is open for a couple more weeks. A group of disgruntled members plan to petition the board to retain the status quo at its AGM in September.

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American retailer JCPenney has told ICANN it no longer wishes to own its dot-brand gTLD, .jcp.

The notice was filed just a month after the company entered Chapter 11 bankruptcy protection and announced the permanent closure of hundreds of stores.

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It’s the 80th dot-brand to be dumped by its registry. the 11th this year.

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Last month Awake Security accused the registrar, officially Communigal Communication Ltd, of being “at best complicit in malicious activity”.

The firm published a report entitled “The Internet’s New Arms Dealers: Malicious Domain Registrars” which linked GalComm to a network of malicious Chrome browser extensions the firm said can steal sensitive data from users who have them installed.

It identified 111 such plug-ins, which it said have been downloaded 33 million times, using over 15,000 domains registered via GalComm.

GalComm has around 48,000 domains registered in gTLDs at the last count, so that’s a sizable percentage of the registrar’s business.

Awake came to the conclusion that GalComm was well-aware of what its customers were up to.

Now, the registrar has sent a cease-and-desist notice to Awake, CC’d to ICANN (pdf), in which it denies all knowledge and responsibility for the malware.

GalComm’s line, to summarize, is that it’s just a registrar, and that it has no obligation to monitor how its customers use their domains.

It adds that the domains in question amount to 10% of its DUM. Still a pretty big chunk.

The company wants Awake to retract its report by today, which it has not yet done, or it will call in the lawyers.

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A group of Nominet members and registrars have launched a petition to prevent Nominet from introducing registry-level auctions for dropping .uk domain names.

The petition, organized by Netistrar, reads: “We the undersigned members request that Nominet maintains equal registrar access to expired domain names on a first come first served basis.”

Nominet recently launched a policy consultation that lays out plans to essentially kill off the existing system of drop-catching expired domains and replace it with either registry auctions or a pay-to-play model asking fees of up to £6,000 a year.

The petition says that “these proposals technically and financially restrict a registrars ability to access expired domains”, noting that other ccTLDs “manage an expiry process without an expensive and centralized auction system.”

So far, 70 registrars and individuals (out of the about 3,000 Nominet members) have signed the petition, but they account for more than 400,000 .uk domains.

The petition will be presented at Nominet’s annual general meeting in September. The current policy consultation ends August 14.

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CSC becomes first foreign registrar to get the China nod

It’s probably not the best time, politically, to be bragging about doing business in China, but CSC has nevertheless just announced that it’s been given the nod to act as a registrar in China.

The company claims to be the first non-Chinese registrar to be given an official government license to operate in the country, though many registries have obtained one over the last few years since harsh new regulations came into power.

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It’s basically a great big censorship tool, but it doesn’t seem to have stopped every Chinese citizen from registering domains via foreign-owed registrars.

CSC has a corporate client base, so it’s got more incentive than most to follow the rules to the letter.

“CSC’s success in becoming licensed as a foreign-owned registrar positions the company as a go-to resource for global organizations doing business in China,” the company said in a press release.

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ICANN close to becoming $200 million gift-giver

Kevin Murphy, July 27, 2020, Domain Policy

Remember how ICANN raised hundreds of millions of dollars auctioning off new gTLD contracts, with only the vaguest of ideas how to spend the cash? Well, it’s coming pretty close to figuring out where the money goes.

The GNSO Council approved a plan last Thursday that will turn ICANN into a giver of grants, with some $211 million at its initial disposal.

And the plan so far does not exclude ICANN itself for applying to use the funds.

The plan calls for the creation of a new Independent Project Applications Evaluation Panel, which would be charged with deciding whether to approve applications for this auction cash.

Each project would have to fit these criteria:

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The evaluation panel would be selected “based on their grant-making expertise, ability to demonstrate independence over time, and relevant knowledge.” Diversity would also be considered.

While existing ICANN community members would not be banned from being on the panel, it’s being strongly discouraged. The plan over and over again stresses how there must be rigorous conflict-of-interest rules in place.

What’s less clear right now is what role ICANN will play in the distribution of funds.

The Cross-Community Working Group that came up with the proposal offers three possible mechanisms, but there was no strong consensus on any of them.

The one being pushed, “Mechanism A”, would see ICANN org create a new department — potentially employing as many as 20 new staff — to oversee applications and the evaluation panel.

Mechanism B would see the same department created, but it would work with an existing independent non-profit third party.

Mechanism C would see the function offloaded to a newly created “ICANN Foundation”, but ICANN’s lawyers are not keen on this idea.

The Intellectual Property Constituency was the lone dissenting voice at Thursday’s GNSO Council vote. The IPC says that support for Mechanism A actually came from a minority of CCWG participants, depending on how you count the votes.

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But as the plan stands, ICANN is free too plunder the auction funds at will anyway. ICANN’s board of directors said as long ago as 2018:

ICANN maintains legal and fiduciary responsibility over the funds, and the directors and officers have an obligation to protect the organization through the use of available resources. In such a case, while ICANN would not be required to apply for the proceeds, the directors and officers would have a fiduciary obligation to use the funds to meet the organization’s obligations.

It already took $36 million from the auction proceeds to rebuild its reserve fund, which had been diminished by ICANN swelling its ranks and failing to predict the success of the new gTLD market.

The CCWG also failed to come to a consensus on whether ICANN or its constituent parts should be banned from formally applying for funds through the program.

Because the plan is a cross-community effort, it needs to be approved by all of ICANN’s supporting organizations and advisory committees before heading to the ICANN board for final approval.

There also looks to be huge amount of decision-making and implementation work to be done before ICANN puts its hand in its pocket for anyone.

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