• www.pàypal.com
• www.ebày.com
• www.bànk.com
• www.päy.com

Notice that mark on your screen? In German its called an umlaut, also known as an accent mark.  What does it mean for the Internet:

1. An increase in phishing sites that look like the real thing.
2. A new opportunity for typosquatters to profit from registering domain names.

So when is an a, not an à’ ? What happens when an international visitor goes to www.pàypal.com in their browser? Will they go to www.paypal.com or www.pàypal.com? That depends on the characterset they use!

For domainers, its time to start thinking about those new domain names to hand register. For corporates, it time to think about tracking down all those domain names with a view to getting them registered when this thing goes live.

“The Board today accepted a recommendation from its global stakeholders that it is possible to implement many new names to the Internet, paving the way for an expansion of domain name choice and opportunity” said Dr Paul Twomey, President and CEO of ICANN. A final version of the implementation plan must be approved by the ICANN Board before the new process is launched. It is intended that the final version will be published in early 2009.”

At a high level, this is what the recent Paris junket meeting was about:

1. Domain Tasting

ICANN doesn’t *really* make any money out of this, so they decided to make the 20-cent registration fee (paid to them) non-refundable to reward their friends, they then made domain tasting almost impossible for everyone except the most popular registrars. As these registrars have high numbers of domain registrations, 10% could be a high enough number to perform a good degree of tasting.

2. Dot WhatEverYouWant

Give anyone the ability to create a .WhateverYouWant, thus decreasing the value of existing domain name portfolios. It would appear that ICANN is a little bit irritated by domainers who had the vision (and took high risks many years ago) to snap up valuable domain names. After all, ICANN didn’t make the millions the domainers did.

3. Foreign Superpowers

Allow non Latin characters such as Chinese, Arabic and Cyrillic. Chinese being the largest ccTLD, soon to be the #1 superpower. Arabic (that’s English for oil) and Cyrillic (Russia - say no more). While the PR spin is to make it a warm, fuzzy internet for everyone (lets hold hands now and sing koom-by-ah) - I don’t believe it for a nanosecond. It’s all about making money for a small group of people.

I’ve already covered domain tasting and other character sets in other posts, so lets focus on adding more domain name extensions.

Why Is This Bad News For Domainers

Allowing anyone to create an extension could:

1. Decrease the value of existing domains. What if a single company controlled .sex ? How much would that be worth!?!?! How do you compare the value of lesbian.com to lesbian.sex ? Yes, I had to use that as an example. Ok, well what about www.newyorkrealestate.com compared to www.realestate.newyork or newyork.realestate ? Get the picture?

2. Lead to mass confusion amongst the public. What is an Internet address? Wasn’t that .com ?

3. Change the flow of traffic on the Internet. This is because Internet browsers and search engines may give preference to other domain extensions. Say goodbye to “type it in traffic” to .com.

4. Increase the number of trademark violations. How does ICANN expect to handle that? That’s ok - there are a lot of lawyers who are on “advisory panels” that can profit from giving advice. For those around in the early days of the Internet, Network Solutions ran into the same problem (and largely ignored it for awhile until it got out of control).

5. Attract the wrong type of people to the industry. In recent times we have seen a lot of dodgy “management” around various extensions and ccTLDs. Do we need any more people getting attracted to this new “gold rush”?

Impact On Existing Domain Portfolios

If you hold a large portfolio of anything other than .com, then you might find it decreases in value. For example, .net, .org .biz and .info and .us are not in a good position. However, those people who have purchased geographic domain names (eg: newyork.com) are also at risk. I’ll just pay off ICANN and create my own .newyork extension.

Why Does ICANN Do This?

Again, I believe that it’s all about ICANN making money for a small group of people.

1. ICANN looked at tasting. I can imagine the conversation - “hmmm… we’re not getting a cut… I know, lets make the 20-cent registration fee non-refundable!”.

2. ICANN looked at Verisign. I can imagine that conversation went like “hmmm… how can we multiply this? I know, lets give anyone the ability to create .whateveryou like, and then they pay $100,000 a piece to us (ICANN) for the privilege.” Multiply that out, per every conceivable extention you can think of, and that’s a MASSIVE of money.

By the way, just in case anyone didn’t notice:

ICANNs memorandum of understanding with the U.S. Department of Commerce expires in September 2009.

What happens when ICANN gets so much cash in the bank it has more dollars than a small country? It already has gone about publicizing its view that it should be independent of the US Department of Commerce. Is ICANN going to be “a nation” that controls the communications infrastructure of the world?

How much $$$ is it worth to turn the Internet into a train wreck?

If this proposal goes ahead, its going to be very difficult to distinguish between domains in Latin characters and others such as Cyrillic. What does this mean? It’s going to:

a) increase phishing as organized crime is going to catch on that they can register ebay.com or bank.com using Cyrillic characters. Best of all, those domain names will not be registered because the character sets are different.

b) increase the number of dodgy, misleading domain names that are for sale on auction sites. We all know the good old trick of using an 0 (zero) as opposed to an O (oh). Introducing non Latin characters makes it all that more difficult. Don’t get me wrong, I’m not against it entirely - I just think its going to introduce problems - many of which haven’t been thought about or widely discussed.

Will there be another mini landrush to grab all those trademarks using Cyrillic? Who knows. It also presents a problem when you show Cryillic in italics and non italics:

We will see what ICANN comes up with later today.

Who Was De-accredited?

1. Best Registration Services, Inc. dba Bestregistrar.com (IANA ID 473). They had 5,400 gTLD registrations.

2. DotForce Corp. dba DotForce.com (IANA ID 461). While they only had 400 gTLD registrations, they were based in Korea, so there could be an opportunity for someone to play in the international space.

How Do I Get 5,800 Domains?

If you are an ICANN accredited registrar, you need to send an email to Mike at ICANN by no later than 23:00 UTC on Friday, 13 June 2008, and include the following info:

1. Registrar experience, including number of registrations and customers managed;
2. Availability of sufficient customer service staffing to timely respond to customer service requests during and shortly after the bulk transfer;
3. Ability to communicate with customers in languages other than English;
4. A list of the TLDs in which accredited and operational;
5. Experience with and knowledge of bulk-transfer procedures;
6. Documentation of procedures to resolve potential disputes of domain name control or registration rights;
7. Experience as a customer-facing / “retail” registrar business;
8. Experience with second-level IDNs in the com & net zones;
9. Ability to provide ICANN with regular status reports.

Of course, if your company name is Godaddy then you probably don’t need any of this. (See sarcasm). Incidentally, if you have not read Bob Parsons 16 Rules then be sure to check them out - excellent work. Go and order the poster.

Two implementations of the algorithm, have been published on the NIST website, titled “Compute Visual Similarity of Top-Level Domains”. The first implementation can compare a string to proposed TLDs. For example, .pro has a 38% similarity to .prof.

The second implementation can compare two strings to each other. For example, .com and .cm have a 22% similarity to each other.

It will very interesting to see how this evolves over the coming years, especially with the possibility of different languages being introduced.