insight 

We were involved in the recent launch of the UK Internet Governance Forum at an event in Parliament attended by over 100 people from industry, government, parliament, academia and civil society. The launch event featured a report from the Internet Governance Forum in Rio last November; a plan of action up until the next IGF meeting in India and beyond; the launch of Nominet’s Best Practice Challenge 2008 and a debate on the future of the Internet.

The UK Internet Governance Forum is a collaborative partnership between Nominet, the UK Department for Business and key parliamentarians. Its aim is to provide a local forum in the UK to engage industry, government, parliament, academia and civil society in debate on Internet Governance issues, stimulating partnerships and coalitions to deliver solutions and demonstrating best practice for others to learn from.

Other influential stakeholder groups that are taking part include the London Internet Exchange, the Coalition on Internet Safety and Amnesty International.

One of the key messages to emerge from the first UK IGF meeting is that the UK is taking a leading role in Internet governance, and that other countries are seeing what we are doing and beginning to start running their own processes at the national level. Brazil, France and Finland are among the first countries to follow the UK’s ‘best practice’ model. The UK is proving to the rest of the world that the Internet Governance Forum works, as a collaborative partnership between Government, business, civil society and academia, because it is not subject to Government legislation and is free from bureaucracy.

The UK IGF will concentrate on developing examples of UK best practice and serve as a potential prototype model for other national IGFs. Rt Hon Alun Michael MP commented that Tanya Byron’s recent review of the online child protection sphere has highlighted successful partnership initiatives in that area, particularly between the Internet Watch Foundation and the Child Exploitation and Online Protection Unit. They have successfully combined resources and expertise from law enforcement, Industry and the third sector, while working closely with the Home Office’s Online Child Protection Task Force.

This kind of precedent paves the way for a cooperative template to be applied in the field of Internet governance. The key projects for the UK IGF going forwards will be to explore UK concerns around the IGF themes of security, diversity, access and openness at a seminar in May, and then to identify the UK’s best practice agenda for the IGF in Hydrabad at the awards ceremony for Nominet’s Best Practice Challenge in July.

We would encourage UK companies and organisations to send us their entries – the closing date is 25 April 2008. Winning entries will be announced at an awards ceremony in July 2008 and invited to a leading role in the UK preparatory meeting for the Internet Governance Forum meeting in India.

News that a company has recently paid a record £560,000 for the domain name cruises.co.uk indicates that the secondary market for .uk domain names is still strong.

Cruise.co.uk decided to pay the large sum to a German travel company for the plural version of the domain name in order to improve their chances of being the first port of call for web users searching for cruise holidays.

What’s interesting is that being the registrant of cruise.co.uk, the purchaser has a clear idea of the potential value of the domain name to their business. They were therefore in a good position to determine what was a fair price as opposed to speculating about potential future revenues.

It should also be noted, of course, that we can’t be sure whether this is actually the highest price paid for a .co.uk domain name, as private sales happen regularly and not everyone is as open as this about how much they have paid.

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.

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.

The Monday 17 December deadline for sending feedback about our proposals for a Nominet Foundation is fast approaching. If you have any views on the concept of a foundation, or suggestions of possible beneficiaries we’d be very interested to hear from you. Either complete our short online survey or email comments to foundation@nominet.org.uk.

We have received some encouraging comments so far, but the level of feedback has been disappointing with only 20 responses received.

Some background:
Our proposal recommends that we create a Nominet Foundation for the purpose of public benefit to UK Internet stakeholders through education, research and the funding of suitable projects. We would set it up as a charity and company limited by guarantee, with a first year donation of £5m.

This proposal has been made to resolve the issue of the level of our reserves, which have been increasing significantly beyond the level we have identified as necessary for the ongoing running of the business.

We have thought long and hard about possible ways of resolving this issue and some of the more obvious options are not open to us. For instance we are unable to change the price of domain names unless 75% of our membership vote in favour of a change. And, although some members favour a price reduction, others are equally convinced that the price should be increased, as they feel price reductions devalue the product. Also, our constitution prevents us from distributing funds to our members.

As these options are not available to us, the plan for a Foundation to benefit the Internet industry in the UK has emerged as the most popular solution and we’re taking feedback on this proposal now, so do let us know your thoughts.

On Wednesday last week, we launched our domain name industry report at our first .uk registrar conference. This seems to have been well received by all in attendance and has got a couple of mentions in the media.

Some, though by no means all, of the content was already in the public domain. The challenge for us was to bring together a large amount of disparate information and present an overview picture of the .uk domain name industry within a global context, including some previously unpublished statistics (.uk renewals, registrant and registrar trends).

Since presenting this information, we’ve had some requests for other data to be presented in the future and are already investigating various strands of research. We’d like to know what you think of the report and what other data you’d be interested in seeing us produce. So if there’s data you think we’re in a position to obtain and publish, then please ask and we’ll see if it’s possible to get at it.

The conference itself was also a first for us. We wanted to present a day that would be of interest to our registrars, increase the understanding of the various issues that we are all faced with in the market at the moment and impart some of the latest information about how we’re trying to support our registrar community. Judging by the feedback on the day, we seem to have hit the mark for most people.

If you were there and feel we could have done better then, let us know how and we’ll bear it in mind for future events.

If you weren’t there and want to know what happened then take a look at the presentation slides here.

I see that there have been a few stories in the press regarding ICANN investigating the practice of registering a domain name based on the search someone has done on that domain name. As far as we are aware this practice is not widespread in the UK. Read more

This is just a quick reminder that Nominet’s second consultation on corporate governance closes next Wednesday, 31 October. We currently have had only 16 responses. If you have any comments you would like to make about the proposals please do let us know by completing the questionnaire or emailing us governanceconsultation@nominet.org.uk.

The US Commerce Department’s National Telecommunications and Information Administration (NTIA) recently announced the renewal of a contract with Neustar to manage the .us domain name space. Read more

Occasionally domain name stories appear in the media solely because the name itself is of big enough interest, as was the case this week with a small spate of tales about the web site acdc.com, which has recently come into the hands of the band ACDC. It’s a bit of an amusing story but it nevertheless raises one of those important points regarding Trademarks, domain names and cybersquatting. Read more