When a Registry goes Rogue
In the context of discussions about new gTLDs, we need to talk about the malicious practices of old gTLDs in order to avoid making the same set of mistakes with the new batch of TLDs. Let's consider the .travel TLD. After putting in place a bulk purchase program this registry went private. It then registered through namesbeyond.com 164,708 domains (normally going for $99 at retail) at an insider unit price of $4.09 and proceeded to monetize this namespace. Of course, there are acceptable forms of monetization, and then there are those forms which can only be described as cybersquatting. WIPO has recently ruled that "many of the domain names it has registered are well-known trademarks, thus evidencing a clear pattern of abusive domain name registration." -- see http://www.wipo.int/amc/en/domains/decisions/html/2008/d2008-1161.html So now we have a registry operator apparently engaged in cybersquatting. What has this experience taught us? 1. Neither registry operators nor their subsidiaries, affiliates, or other related shell corporations should be permitted to register domain names unless such registrations comport with narrowly drafted guidelines. 2. Registry ownership can change. You might think that you are approving an applicant's bona fides, yet the applicant's undisclosed intent is to immediately turn over the registry operation/management to another entity upon receipt of the delegation. You might think that you are approving an application on the part of a publicly-listed firm, only to see shenanigans start when the firm thereafter goes private. Changes in ownership should require some type of re-accreditation/re-certification or ICANN-approval process. 3. Cybersquatting on the part of registries and/or registrars should be punishable through a sanctions program. When contracted parties go off the deep end, the community needs to be protected.
Danny Younger wrote:
2. Registry ownership can change. You might think that you are approving an applicant's bona fides, yet the applicant's undisclosed intent is to immediately turn over the registry operation/management to another entity upon receipt of the delegation. You might think that you are approving an application on the part of a publicly-listed firm, only to see shenanigans start when the firm thereafter goes private. Changes in ownership should require some type of re-accreditation/re-certification or ICANN-approval process.
This is what happened with RegisterFly in that they got their accreditation via buying an accredited company, wasn't it? Didn't something already go in place to fix that? Jacqueline
Hi Jacqueline, In the case of the .travel TLD, ICANN entered into an agreement with the Tralliance Corporation on 5 May 2005. One week later, the globe.com exercised its "option" to purchase Tralliance. The agreement between the two companies was originally entered into on February 25, 2003 and has since been amended. The Securities and Exchange Commission granted theglobe.com confidentiality treatment with respect to full disclosure of the details of the Agreement pursuant to Rule 406 under the Securities Act of 1933, as amended. Subsequently, the globe.com sold out to Labitrav LLC which then changed its corporate name to Labigroup Holdings LLC. The situation is similar to the acquisition of an accredited registrar by a non-accredited party, and no, nothing has yet gone into place to fix that (although a proposed RAA amendment dealt with the accreditation by purchase topic) and we still haven't seen the promised comprehensive review of registrar accreditation processes that was promised by our so-slow-to-move CEO. best regards, Danny --- On Thu, 12/11/08, Jacqueline A. Morris <jam@jacquelinemorris.com> wrote:
From: Jacqueline A. Morris <jam@jacquelinemorris.com> Subject: Re: [NA-Discuss] When a Registry goes Rogue To: dannyyounger@yahoo.com Cc: "NA Discuss" <na-discuss@atlarge-lists.icann.org> Date: Thursday, December 11, 2008, 8:34 AM Danny Younger wrote:
2. Registry ownership can change. You might think that you are approving an applicant's bona fides, yet the applicant's undisclosed intent is to immediately turn over the registry operation/management to another entity upon receipt of the delegation. You might think that you are approving an application on the part of a publicly-listed firm, only to see shenanigans start when the firm thereafter goes private. Changes in ownership should require some type of re-accreditation/re-certification or ICANN-approval process.
This is what happened with RegisterFly in that they got their accreditation via buying an accredited company, wasn't it? Didn't something already go in place to fix that? Jacqueline
Subsequently, the globe.com sold out to Labitrav LLC which then changed its corporate name to Labigroup Holdings LLC.
All of these recent changes at .TRAVEL are just paper shuffling, since these companies are all controlled by the same guy, Michael Egan, who made a lot of money in the car rental business and has been losing it on a bunch of impressively bad Internet businesses ever since. I think that theglobe.com, which ejected Tralliance seconds before it went down the drain still holds the record for the largest CAN SPAM fine ever paid for illegal spamming. I agree that Tralliance needs some serious supervision from ICANN. In my personal experience, when I registered airinfo.travel for my little air ticket web site, one of their salesmen immediately wrote and tried to upsell me a bunch of other domains including skyauction.travel, an obvious squat. Regards, John Levine, johnl@iecc.com, Primary Perpetrator of "The Internet for Dummies", Information Superhighwayman wanna-be, http://www.johnlevine.com, ex-Mayor "More Wiener schnitzel, please", said Tom, revealingly.
Hello John, I flagged some of these issues and brought them to the attention of ICANN Staff in early June. On August 13 I received a note from the Compliance Director that stated: "I am writing to inform you that ICANN is pursuing the concerns you raised below. The matter below is being pursued concurrently with another Tralliance matter. However, I wanted to assure you that the concerns you raised are being investigated." And here we are at the tail end of the year with still no investigative report released. Draw your own conclusions. --- On Fri, 12/12/08, John L <johnl@iecc.com> wrote:
From: John L <johnl@iecc.com> Subject: Re: [NA-Discuss] When a Registry goes Rogue To: "Danny Younger" <dannyyounger@yahoo.com> Cc: "NA Discuss" <na-discuss@atlarge-lists.icann.org> Date: Friday, December 12, 2008, 9:49 AM
Subsequently, the globe.com sold out to Labitrav LLC which then changed its corporate name to Labigroup Holdings LLC.
All of these recent changes at .TRAVEL are just paper shuffling, since these companies are all controlled by the same guy, Michael Egan, who made a lot of money in the car rental business and has been losing it on a bunch of impressively bad Internet businesses ever since. I think that theglobe.com, which ejected Tralliance seconds before it went down the drain still holds the record for the largest CAN SPAM fine ever paid for illegal spamming.
I agree that Tralliance needs some serious supervision from ICANN. In my personal experience, when I registered airinfo.travel for my little air ticket web site, one of their salesmen immediately wrote and tried to upsell me a bunch of other domains including skyauction.travel, an obvious squat.
Regards, John Levine, johnl@iecc.com, Primary Perpetrator of "The Internet for Dummies", Information Superhighwayman wanna-be, http://www.johnlevine.com, ex-Mayor "More Wiener schnitzel, please", said Tom, revealingly.
Hi Danny and all, The first two points could be easily translated in the rules for new and existing gTLDs, and should be drafted as new guidelines. Danny Younger a écrit :
In the context of discussions about new gTLDs, we need to talk about the malicious practices of old gTLDs in order to avoid making the same set of mistakes with the new batch of TLDs. Let's consider the .travel TLD.
After putting in place a bulk purchase program this registry went private. It then registered through namesbeyond.com 164,708 domains (normally going for $99 at retail) at an insider unit price of $4.09 and proceeded to monetize this namespace.
Of course, there are acceptable forms of monetization, and then there are those forms which can only be described as cybersquatting. WIPO has recently ruled that "many of the domain names it has registered are well-known trademarks, thus evidencing a clear pattern of abusive domain name registration." -- see http://www.wipo.int/amc/en/domains/decisions/html/2008/d2008-1161.html
So now we have a registry operator apparently engaged in cybersquatting.
What has this experience taught us?
1. Neither registry operators nor their subsidiaries, affiliates, or other related shell corporations should be permitted to register domain names unless such registrations comport with narrowly drafted guidelines.
2. Registry ownership can change. You might think that you are approving an applicant's bona fides, yet the applicant's undisclosed intent is to immediately turn over the registry operation/management to another entity upon receipt of the delegation. You might think that you are approving an application on the part of a publicly-listed firm, only to see shenanigans start when the firm thereafter goes private. Changes in ownership should require some type of re-accreditation/re-certification or ICANN-approval process.
3. Cybersquatting on the part of registries and/or registrars should be punishable through a sanctions program. When contracted parties go off the deep end, the community needs to be protected.
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participants (4)
-
Danny Younger -
Jacqueline A. Morris -
John L -
Louis Houle