ICANN's answer to NSI an now Tucows not dropping names

[AdoptableDomains]

ICANN has posted an advisory acknowledging that Network Solutions and Tucows are not dropping names as in the past but auctioning them. It appears they have changed the registration agreements you automatically agree to when you register a name to get around ICANN rules by in fact making name not technically expire.

In summary, it appears when you register with them you are giving them authorization to take possession of a name and auction it before it technically expires and paying a portion back to the orginal owner. I really wonder if this will hold up, and if the smaller registrars or drop services will file suit to stop this since NSI has such a big share of the original market. I would imagine if it holds up enom and godaddy wouldn't be far behind.

Seems we've gone from unfair drops, to auction services, almost to WLS, to maybe where names don't technically drop at all. What a war of one-upmanship in the expiring domain market.

Here's a quote of part of the document:

In broad outline, both registrars have announced that they intend to auction the rights to domain names in the event that registrants fail to renew them at the conclusion of a grace period following expiration. Instead of names "dropping" back into a "pool" of names available for re-registration on a first-come, first-served basis, names would instead remain at the current registrar and would be re-assigned to the control of the highest bidder.

These registrars have modified their agreements with registrants to secure the registrants' consent to auction the names. Under both the Tucows and Network Solutions proposals, the prior registrant would receive a share of the proceeds of the auction. (In Tucows' case, approximately 80% of the auction price is returned to the prior registrant; NSI proposes to distribute 20% or less to the prior registrant.) Tucows has also proposed a variation of this auction model that would operate at the registry level and would allow all registrars to participate as auction "brokers" for their customers.

 

[Anthony]

That's just more bad news. I'm all for companies making money, but changing the domain drop process isn't the way to do it. It goes against free trade and it goes against the idea of the Internet in the first place...

 

[RJ]

>> In Tucows' case, approximately 80% of the auction price is returned to the prior registrant; NSI proposes to distribute 20% or less to the prior registrant.)


It's an interesting proposal and really wouldn't be too different thatn the current system of aquiring dropped names where there's only a couple major dropcatchers and we have to bid to win. I like that the original registrant gets a share of the proceeds. I would be interested to hear from some WLS opponents to see what they say about this as an alternative.

 

[Dave_Z]

ICANN recently came out with specific policies regarding deleting domain names
after expiring: http://www.icann.org/registrars/eddp.htm

The new policies take effect on December 21, so both SnapNames and NetSol
can very well enjoy an early Merry Christmas. 8-X

Life can be so unfair, sometimes...