A Report Card

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Jackson Hts., New York, August 3, 2014 - Not too long ago my wife dug up a Report Card of mine from 1954. While I’ve had quite a few since - some better some worse - on this eve of the .nyc Landrush I thought it might be fun to issue another that assesses my work on the .nyc TLD.

But what to assess? I could base it on the 2001 Internet Empowerment Resolution, which set my original course on .nyc, and claim an A grade. After all, the city has acquired .nyc and will run it as a public interest resource. “Great work Tom.”

However, it’s 2014 and 13 years have elapsed. Over the last decade, as the ICANN’s new TLD award processes were evolving, my research uncovered broad areas where a city-TLD could facilitate a city’s operation: portals, markets, identity, security, privacy, economic development, civic and neighborhood betterment, and more. A fair assessment should consider how well those findings were reflected in .nyc’s structure.

Had this assessment taken place in 2009 high marks might have been in order, for when the city issued its Request For Proposals it included many of our findings in the requirements.

But the ICANN’s planning dragged on, and our research continued. And I recall speaking with a city official in 2012 about recent findings. Frustrated, he chided me for continuously raising the bar: “We’ve done everything you asked for. We can’t keep changing things. Be realistic.”

[Let me pause here for a moment to point out the transition from “I” to “we” in the previous paragraph. This was a collaborative endeavor with my work enabled by a plethora of others. First there were my fellow community board members who listened and trusted that a city-TLD was important. There was the gentleman from Germany who goaded me in 2005 to reengage after a two year hiatus; a top TLD lawyer from Florida who guided me for several years; a board of directors who steered and encouraged me; a family that put up with this massive time eater; good friends who encouraged and criticized me; individuals and organizations that backed our effort with digital and financial resources; software engineers and other experts who advised; smart people in the DNS industry who taught me the ins and outs; city officials who strove to make the effort a success; and more. So I’m changing the nature of this assessment to one that looks at the overall city-TLD development process and its outcome. As to my personal Report Card, my work was far from perfect. Had it been better, our city-TLD would likely have provided more nuanced and beneficial features and benefits. But I’d like to think that I improved somewhat from my 1954 B in Effort.]

Before getting into the assessment, one final note on the city-TLD development environment. As the details of .nyc’s roll-out becomes clear, it’s increasingly apparent that we’ve been operating in what the economists call an “asymmetric knowledge” situation. This occurs where there’s inadequate expertise for one side to call upon in a negotiation. With this the first time cities have had the opportunity to develop their TLDs, the metric presented for comparison by the knowledge holder, the contractor, was name sales, not an improved quality of life. As a consequence, New York and the other cities applying for their TLDs were unprepared to evaluate the spectrum of opportunities presented. For a parallel situation see The Simpsons episode Marge Vs. The Monorail.

So, how did WE do?

I’ve rated 12 policy and operational criteria below. While the policies guiding these were selected during the Bloomberg years, the grades test against the current administration’s tougher “progressive” standards. The results show room for improvement. Note: Some digging into the Links might be required to uncover the basis of our suggested remedies.

            The Report Card

Subject Grade Explanation Remedy Links
Nexus C Inadequate pre-registration review. Post registration enforcement. Public pays for challenges. Expand P.O. Box description to include virtual office. Pre-registration review. More spot checks. City led challenges. More
Market Creation Inc. No sign of development of local markets. Many generic names reserved, so the potential exists for new local markets. More
Name Distribution Equity F City rejected NYS Trademarks and d/b/a names of current business and organization owners as basis for selection priority. Institute London’s Local Priority Preference process enabling existing businesses and organizations to get the names they now use. More
Landrush Auctions F No prior use preference. A regressive high-bid blind auction policy to resolve name contention. 60% of revenue flows to contractor in Virginia. Give priority to existing name users. Run Applicant Auctions that put name contestants in touch with one another. More
Sustainability D No expressed sustainability policy or programs. Third level name use in dotNeighborhoods effort is saving grace. Establish programs enabling sharing and pricing policy that promotes recycling of names. More
Local Jobs D No new registrar jobs created in city. Saving grace: you can request info on becoming registrar Train and ease entry for local registrars. More
Consumer Friendly C Complex and circuitous complaint process - city, ICANN, contractor, and At-Large have roles. Centralize complaints. Assure refund for Landrush auction losers. Create a City of Trust More
Governance D Closed (?) city advisory board. Create channels for public engagement. More
Government Names B+ The de Blasio Administration has acquired hundreds of names to foster city operations. More transparency and public engagement in name selection would have earned an A. More
Neighborhood Names B+ Traditional neighborhood names have been reserved for licensing to local residents. Dedicate funding for endeavor. More
Premium Names Inc. Regressive high-bid auctions for 2,000 names such as news.nyc, sports.nyc, pizza.nyc, doctors.nyc, etc. Premium names should have public interest clause. Hold public forums to create awareness and opportunity for local collaborations. More

 

Looking toward my next Report Card, I expect it to evaluate work being done outside the realm of the .nyc TLD. I’ve begun participating on an ICANN discussion group setting the criteria for future applicants for city-TLDs. The key concept is that cities will need to demonstrate they are TLD-ready by showing Informed Consent, rather than the current “Non-objection.” As well, they will need demonstrate engagement of the user community in creating these applications through the formation of At-Large Structures. Finally, the mass of materials we’ve assembled over the years will be organized into an accessible resource library. Success in those areas will require an A in effort.

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Going once. Going twice… The .nyc auctions

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­Jackson Hts., New York, July 29, 2014 - With the .london Landrush ending on Thursday, “30 applications for the properties.london address and over 40 for nightlife.london” have been received (see V3.co.uk/) with an auction to decide the recipient. What? Let me try to unbundle that statement.

Over the past 50+ days anyone with $75 to invest (see GoDaddy’s rates) has been able to buy a lottery ticket of sorts for a domain name within the .london TLD. With the July 31 deadline to apply for a .london domain name nearing, 30 people have purchased tickets for the “properties.london” lottery, and 40 for the “nightlife.london” lottery. By midnight on July 31 more than 50,000 different domain names are expected to have been applied for overall, with several thousand names having multiple bidders.

In London…

The operator of the .london TLD has established priority rules to sort out those instances of “multiple-applicants for same name?” Here’s how it works.

  • Getting first priority are those with a registered international trademark. If more than one entity has a trademark, for example, Cadillac cars and Cadillac foods, then a high bid auction is held to determine the winner.
  • Second priority goes to ticket holders with a valid London address and an established right to a name. For example, a business can upload “evidence” to demonstrate its current use of a name, and thus right, to a parallel .london domain name. Within this Second Priority several sub-categories have been established: In descending order of priority those are: entities with local trademarks, businesses without trademarks, charities, and those with unregistered trademarks. Again, if more than one entity presents evidence of prior use in a sub-category, for example, cadillac.com and cadillac.net, a high bid auction sorts things out.
  • Third priority goes to those applicants with a valid London address, but no prior use of the name.
  • Final priority (if that’s the right word) goes to applicants without a valid London address, a New Yorker for example who wants to own a piece of digital London. In these last two instances it’s an auction that breaks a tie.

In New York…

Here in New York we’re doing things differently. There’s no value to having used a name for years or decades. And it doesn’t matter if you’ve registered it with the state - neither a New York State trademark nor d/b/a counts.

Excepting those with international trademarks, local businesses and non-profits have no more right to a name than anyone else. The Bloomberg Administration, which established the rules, made the decision to start the naming process all over again on a level(ish) playing field.

So between August 4 and October 3, if you like a name, buy a ticket (it will cost you about $75). Then out bid the current owner (and possibly other ticket holders) at auction, and its yours. But you may get lucky - the current owner might not even know the .nyc TLD is being introduced, and not buy a ticket. In that case, no auction, it’s yours.

So what happens when 30 tickets are sold for a domain name such as properties.nyc? “The auction will be held in accordance with the auction rules… Any auction fees, charges and the final bid price for the domain name will be the responsibility of the Applicant.” A regressive process that promotes the status quo.

This Bloomberg legacy process is slated to move ahead. For the administration it’s the easy, fast, and cheap allocation process. But if you believe as I do that it’s unfair, call 311 and tell Mayor de Blasio -  è ingiusto.

For our older posts 2007-2014 see here.

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