.XXX

Whoops, There It Is!


ICM Registry, the company that administers the .XXX sponsored top-level domain (sTLD), announced this morning that it was suspending domain registrations "that appear to involve unmistakable, blatant cybersquatting." The announcement came in the wake of suspicious registrations for famous trademarked names including BusinessWeek.xxx, CNBC.xxx and WashingtonPost.xxx, among others. ICM's swift move to suspend the questionable registrations is commendable and shows that the registry is committed to protecting trademarks and enforcing its own policies.  

However, this morning's news also highlights a key pitfall of Sunrise Periods: in order to be effective, brands must participate in them. FairWinds recently reported that 75 percent of Fortune 500 companies participated in the .XXX Sunrise Period B by blocking either their many company names or names of their key brands. In our view, this high rate of involvement indicates a significant level of awareness of the .XXX Sunrise Period among businesses. Unfortunately, certain companies did not choose to participate, and had to either register their domains defensively, or deal with cybersquatting. With the Internet poised to expand with ICANN's New gTLD Program, the lessons from the .XXX Sunrise Period—and the precedent set by ICM's swift response to cybersquatting—will be worth watching.

.XXX Matures: General Availability Begins Today


This post has been updated to amend an error in phrasing from an earlier version. Previously, we wrote that 80,000 companies submitted applications to reserve their .XXX domains during the Sunrise Periods. Actually, an undisclosed number of companies and other organizations filed nearly 80,000 applications for domains.
 
Today marks the opening of the .XXX generic top-level domain (gTLD) to the general public. ICM Registry, the company under contract with ICANN to administer the .XXX domain, has preceded the opening with a 4.5 million dollar (cringe-inducing) advertising campaign aimed at drumming up sales and awareness of the new extension.

The beginning of General Availability marks the final step in .XXX's four-phase launch process. During Sunrise Periods A and B, registered trademark holders from inside and outside the adult entertainment industry had the opportunity to proactively register their marks as domains. The recently closed Landrush Period gave qualified members of the adult entertainment industry an opportunity to register domains. Starting today, anyone will be able to purchase a .XXX domain. Importantly, when registrants register their domains, they will have the option of having that domain not resolve to content. For businesses and individuals, this solves the delicate question of where to point a defensively registered .XXX domain.

For brands, today is an important day. Although nearly 80,000 applications for .XXX domains were filed from outside the porn industry during Sunrise Period B, applicants were only able to register an exact match of their trademark. Shortenings, iterations, nicknames and common misspellings and typos were not accepted. Today, brands, along with the general public, will finally be able to register these variations.

At this point it's hard to predict if .XXX will gain popularity among the general Internet community. Currently, ICM Registry faces an anti-trust suit from online pornography companies Manwin Licensing International and Digital Playground over its pricing and handling of the .XXX domain. Among other demands, the suit seeks to renegotiate the contract between ICM Registry and ICANN. Despite .XXX's uncertain future, brands who have not yet registered their mark or who are anxious to protect other variations of their trademark, would do well to take early advantage of General Availability.

Overwhelming Demand: Update on the Sunrise B Period for .XXX


ICM Registry, the company administering the .XXX top-level domain, has announced that it received 78,938 applications during the Sunrise B Period, which ended on Monday, October 31st. During the Sunrise B Period, trademark holders from outside the adult entertainment industry had the opportunity to preemptively register their trademarks in order to block them from being registered as .XXX domains. (Sunrise A gave trademark owners within the adult industry the opportunity to register domains before ICM opens the .XXX floodgates to the general public.) Given the overwhelming response, ICM and its IP Rights validation company will likely be processing the trademarks and applications through the end of November. As such, the results of the Sunrise B period will not be available until early December.
 
Before .XXX, the most recent big Sunrise rush occurred during the launch of .ASIA in 2008, when trademark owners filed just over 30,000 registrations. With over double that number of applications filed, the .XXX Sunrise B registrations dwarf those of .ASIA and highlight how seriously brand owners view the .XXX space as a potential source of damaging trademark infringement and brand dilution.
 

Cock-A-Doodle-Don't


SwordfishI’m going to preface this post by saying that I was a vegetarian for seven years, I don’t own anything made of fur, and I love animals. In theory, I support what the People for the Ethical Treatment of Animals (PETA) represents, particularly its stance against animal cruelty. How it goes about spreading its message, however, is an entirely different story.

It was with a hefty rolling of the eyes that I learned that late last week, everyone’s favorite red-paint-throwing animal rights activist organization had announced its intentions to register a domain name in .XXX. PETA reportedly plans to use the domain to host a pornographic website designed to raise awareness of veganism and draw attention to the suffering of animals.

Yes, folks, you read right – a PETA-run porn site. To raise awareness. About veganism.

Call me naïve, but I’m pretty sure porn isn’t really an ideal vehicle to raise awareness about anything…except, well, you know.

When asked how porn-tastic PETA will get with its site, spokesperson Lindsay Rajt told the Huffington Post that it will have enough adult content to qualify for the .XXX domain site but also some other graphic images of animals that viewers may not expect to see. Sounds…interesting.

This announcement really comes as no surprise given PETA’s recent commitment to the “sex sells” ethos: the organization has featured celebrities posing nude in advertisements denouncing fur, displayed bikini-clad women stuffed into cages to raise awareness about the suffering of chickens, and has even filmed women in their underwear defiling vegetables in seriously disturbing ways.

Presumably, we can expect to see similar content on PETA’s new .XXX site – interspersed with images of slaughterhouses and other horrors designed to scare viewers off meat forever. Frankly, PETA’s repeated, tawdry publicity gags make me less concerned about the plight of animals, and more concerned about what definition of “exploitation” it’s following.

Dropping C’s to Get .XXX


Readers of FairWinds’ Weekly News Brief will have already learned about Go Daddy’s announcement about its pricing structure for domain name registrations in the .XXX TLD. In the Sunrise A period, each domain will cost $209.99 the first year, which includes the application fee and the first year registration, and renewals will cost $99.99 per year. For Sunrise B, trademark owners will pay a one-time fee of $199.99 to block their trademarks for ten years. Those who participate in the .XXX landrush will be charged $199.99 the first year, which includes the application fee and the first year registration, and $99.99 per year for renewals. After that, General Availability domains will cost $99.99 for both the first year registration, and for yearly renewals.

We’ve already discussed on this blog the great lengths ICM Registry, which operates .XXX, is going to in order to provide resources for trademark owners to protect their marks. The fact that Go Daddy, one of the most widely recognized domain name registrars, is pricing .XXX domain names at $100 a pop is also likely to further deter cybersquatting in the TLD. Normally, cybersquatters squat on domain names because it is a quick, easy and, most importantly, cheap way to earn money. Setting the price to register .XXX domain names so high is likely going to discourage many cybersquatters who do not want to pay the registration fee.

While new schemes could evolve that make cybersquatting in .XXX profitable, many small-time cybersquatters are unlikely to have the stomach to pay to play this game.

Hot and Bothered


SpamOn September 7, 2011, the Sunrise period for the new .XXX TLD will open with two concurrent rounds. Sunrise A will allow members of the adult industry with verifiable trademarks and domain names in other gTLDs to reserve their names in .XXX, while Sunrise B will give trademark and intellectual property rights holders from outside the adult industry the chance to block their marks from being registered as .XXX domains. So, for example, a brand like Disney will be able to ensure that no one can ever register Disney.XXX (and thereby ensure that my childhood memories remain undefiled).
 
This week, Easyspace, one of the largest web hosting companies in the UK, reported that hundreds of businesses have rushed to pre-register their trademarks with the company before the Sunrise period opens. According to Easyspace, only about 20 percent of those have been adult companies.
 
The .XXX policy of allowing trademark owners to completely block a domain name is somewhat revolutionary. These domains will resolve to a generic informational page, meaning trademark owners will not have to face the challenge of what kind of content to point their .XXX domains to. After all, is there really any “right” way to use, say, Hormel.XXX?
 
It is encouraging to see trademark owners taking advantage of this resource and taking the proper steps to safeguard their brands and marks in this new space.

.XXX - The Unpopular Vote


The day no one has been waiting for has finally arrived: last Friday, during the last day of the public meeting in San Francisco, the ICANN Board voted to approve the .XXX TLD with a vote of nine in favor to three against, with four members abstaining due to conflicts of interest.

Some, including religious and conservative groups, have called .XXX the “red light district” of the Internet and claimed it will lead to more adult content online. Others, including the adult entertainment industry, have rejected the TLD as a way for governments and regulators to censor content. It was the first time – at least in my memory, but probably ever – that priests and porn stars lined up on the same side of an issue.

I mean that as more than just a witty punch line. Practically no one was in favor of approving the .XXX TLD – least of all the adult entertainment industry, who the TLD is supposed to represent. The Free Speech Coalition, the non-profit organization affiliat

ed with the adult industry, actually protested outside of the ICANN meeting on Thursday.

The only group that was really pushing for this TLD was the group that applied for it: the ICM Registry. And no wonder; the ICM homepage displays a ticker boasting how many domains have been pre-reserved. At the time of writing this post, it was over 300,000. I’d be willing to bet that once .XXX opens up, the majority of registrations will not be from adult content producers looking to migrate over to .XXX, but from businesses trying to protect their brands from potentially damaging infringements in a taboo vertical, and speculators attempting to profit off the adult industry.

This begs the question, who is ICANN really serving? Clearly the decision to approve .XXX was not made on behalf of the public interest, but rather on behalf of the domain name industry, which stands to make a sizable amount of money off brand owners scrambling to protect their images and domain speculators grabbing everything and anything they can think of that relates to adult entertainment.

Priorities?


I just finished a conversation with a contact who is still at the ICANN meeting in Brussels.  He attended the ICANN Public Forum and let me know that in his opinion it looks like the .XXX gTLD, an extension dedicated to hosting adult content, should be approved soon.  Overall, he said, there was very little objection from the forum attendees.  In fact, the discussion lasted only about 20 minutes.  I can’t say I expected much more – many people who attend ICANN meetings and participate in the ICANN process are, generally speaking, either interested in selling more and more domain names (like registrars), or are totally oblivious to the ICANN community’s bias toward selling more names.

On the other hand, I heard the discussion over whether or not ICANN’s Chairman of the Board should earn a $75,000 salary lasted a full 45 minutes.