insight 

Yesterday ICANN announced that they are proposing to remove their five-day ‘Add Grace Period’ which previously allowed registrars to rectify errors when registering new domain names without cost. Due to serial abuse of this facility by speculators testing the profitability of domain names through advertising revenues, ICANN will instead debit the payment as soon as the domain name is registered.

Although this change will clearly deter tasters from registering high volumes of domains speculatively, it will also make the process of registering less flexible for registrars. It remains to be seen exactly how the new process will work, but it is probably safe to assume that if the registrar has to pay these costs upfront they will ultimately be passed to their customers.

When we took steps against domain tasting in August 2006, we decided to introduce limits on the number of domains a registrar could delete. Our limit for deletions to rectify spelling errors etc is five domains or 5% of the total number of domains registered but not yet invoiced (whichever is higher) but the limit for practices such as domain tasting is zero, and the limits form part of our registrar agreement, the formal contract that all our registrars sign up to. We believe this solution is neater, as it effectively counters the practice of domain tasting but at the same time allows some flexibility for registrars where genuine errors have occurred.

In a separate move, Google announced last week that they will start to monitor domain names that are repeatedly registered and dropped within the current five-day grace period, and exclude them from their AdSense program. Such a move would clearly strike at the heart of the problem. If tasters stop receiving revenues for pay-per-click ads associated with the domains they are testing, they will soon stop trying.

Both proposals have their merits, and it is encouraging to see that concerted efforts are being made from various sectors within the industry that could herald the beginning of the end of this practice.

You may have seen already our post on Domain Name Front Running (DNFR) since when things have got much more interesting.

Our original post explained our position that we have seen no evidence of DNFR and regard it as an inevitable consequence of a global market.  Network Solutions actually commented on that post saying they thought it did exist and needed to be tackled urgently as consumer confidence was being eroded.

Their response, which you probably have heard about, was to change their domain lookup tools so that any non-existent domain looked up through their site was automatically locked by them for four days so that nobody else could register it.  You as the customer who found it could register it, but only through Network Solutions and they are clear they will not be monetising the domain before then.

So, if you have not spotted it, they appear to be front running to protect end users from front running.

The second irony is slightly more oblique.  .com suffers dreadfully from the actions of domain tasters, who register huge volumes of domains and then cancel them before the grace period.  The mechanisms for deciding what domains to process in this way are largely algorithmic - how long was it registered for, when was it cancelled, how many clicks did it get in the tasting period.

Once a domain has entered the domain tasting merry-go-round it can be difficult for it to get off.  As soon as one taster lets it go another one picks it up because it meets the criteria for automatic registration.

So there is a possibility that the Network Solutions action could lead to a domain being picked up by tasters once Network Solutions drop the domain.  In that case the consumer who wanted it but decided they did not want to get it from Network Solutions would effectively lose it forever as it would now be on the taster radar.

Following the announcement in November from auDA, the Australian registry, of its one millionth .au domain name, it was pleasing to note this week that the French registry, AFNIC, has passed the one million mark on its register. They have been experiencing strong growth since liberalisation of their registration criteria. It is also further evidence of the growing popularity and increased usage of country code domain names.