[gnso-rap-dt] Domain Kiting rewrite (including a slight change to the recommendation language)

["Mike O'Connor" <mike@xxxxxxxxxx>]

wow!  eye-popping statistics from the Dell case.  thanks to Fred and Margie for 
the links posted to the chat.  here are the links for the email record;

http://blog.domaintools.com/2007/11/dell-vs-florida-registrars/

http://www.domainnamenews.com/images/dell_doc1.pdf

here's a quote (from the complaint)

"125.  Many of the Infringing Domain Names have been registered, used and 
deleted within five days of registration to avoid paying any registration costs 
and to avoid detection by Plaintiffs and other trademark owners.  The practice 
of registering and deleting domain names within five days that do not generate 
sufficient traffic to turn a profit in order to avoid paying for the 
registration is commonly referred to as [domain] "tasting."

"126.  Defendants immediately re-register, for an additional five-day period, 
many of the Infringing Domain Names and hundreds of thousands of Defendants' 
Domain Names that were deleted by Defendants within five days of registration.  
Defendants repeatedly register, delete, and re-register domain names to use the 
domain names for free and to avoid detection by Plaintiff and other trademark 
owners.  The practice of repeatedly registering, deleting, and reregistering a 
domain name within five days to avoid paying fo the registration is known as 
[domain] "kiting."  Attached to this Complaint as Exhibit 7 is the registry 
data taken over 20 days for 10 Infringing Domain Names that Defendants have 
been repeatedly registering, deleting and re-registering for 5-day periods."

i think this substantiates the case that kiting existed, at least at one time.  
Fred made the comment in chat (which i agree with) that the the anti-tasting 
fee-changes have probably eliminated the kiting problem.  but i think our old 
recommendation still holds up pretty well -- namely that the definitions bear 
clarifying and that various people should keep an eye out for this as they're 
reviewing the effectiveness of the anti-tasting measures that have been 
enacted.  

all that said, here's a section-rewrite for people to consider -- sorry Marika, 
there's a slight change to the Recommendation language that would be great to 
insert into the poll if it's not too late.


Here's our current language (from the draft circulated this afternoon);

5.1           Domain Kiting / Tasting

5.9.1      Issue / Definition

Registrants may abuse the Add Grace Period for continual registration, 
deletion, and re-registration of the same names in order to avoid paying the 
registration fees. This practice is sometimes referred to as “domain kiting.” 
This term has been mistakenly used as being synonymous with domain tasting, but 
it refers to multiple and often consecutive tasting of the same domain name. 
ICANN staff has received anecdotal reports that this type of activity is 
occurring, but does not currently have data to demonstrate definitively that 
domain kiting occurs or to what extent.

The anecdotal reports received by the ICANN staff would indicate that:

a.     Very few registrants engage in kiting;

b.     Those registrars who facilitate kiting are discovered and warned by the 
registry to cease the behaviour;

c.     Kiting practices cannot enable a registrant to “keep” a single domain 
name. Any name is available to be taken in the drop pool by another registrant. 
The activity is only practicable if attempting to maintain a number of names – 
some would be lost at each drop.

5.9.2      Background

Bob Parsons appears to have introduced the term “domain kiting” in a blog post 
in 2006. In the post he chose to call the activity “kiting”, but his definition 
described what later came to be termed “domain tasting” (as The Public Interest 
Registry did in its letter to Steve Crocker on March 26, 2006). This confusion 
of terms carried forward for some time as can be seen in a MessageLabs report 
published several months later.

Eventually, the current definition of domain kiting (the serial re-registration 
of a domain to get a domain for free) solidified, but it is not clear whether 
it was based on any actual activity or whether it was simply a matter of 
repurposing an already confused definition to cover a possible abuse scenario.  
Domain tasting is a different practice, in which a registrant measures the 
monetization potential of a domain during the Add Grace Period, and deletes it 
in AGP if the domain is not worth keeping.  In general, the goal of domain 
tasting is to retain registration of (and not delete)  a “worthwhile” domain.

ICANN staff looked into domain kiting (while developing the 2007 Issue Report 
on domain tasting) and could not find anything except anecdotal evidence of the 
activity. A RAPWG member performed an analysis of the .INFO registry in 2008 
and again in December 2009, and did not find any examples of kiting. [1]

5.9.3      Recommendations

It is unclear to what extent domain kiting happens, and the RAPWG does not 
recommend policy development at this time.  The RAPWG suggests that the Council 
monitor the issue and consider next steps if conditions warrant. 

Proposed replacement language...

5.1           Domain Kiting / Tasting

5.9.1      Issue / Definition

Registrants may abuse the Add Grace Period through continual registration, 
deletion, and re-registration of the same names in order to avoid paying the 
registration fees. This practice is referred to as “domain kiting.” This term 
has been mistakenly used as being synonymous with domain tasting, but it refers 
to multiple and often consecutive tasting of the same domain name.

5.9.2      Background

Bob Parsons appears to have introduced the term “domain kiting” in a blog post 
in 2006. In the post he chose to call the activity “kiting”, but his definition 
described what later came to be termed “domain tasting” (as The Public Interest 
Registry did in its letter to Steve Crocker on March 26, 2006). This confusion 
of terms carried forward for some time as can be seen in a MessageLabs report 
published several months later.

Eventually, the current definition of domain kiting (the serial re-registration 
of a domain to get a domain for free) solidified.  Domain tasting is a 
different practice, in which a registrant measures the monetization potential 
of a domain during the Add Grace Period, and deletes it in AGP if the domain is 
not worth keeping.  

ICANN staff looked into domain kiting (while developing the 2007 Issue Report 
on domain tasting) and could not find anything except anecdotal evidence of the 
activity. A RAPWG member performed an analysis of the .INFO registry in 2008 
and again in December 2009, and did not find any examples of kiting. [1]  
However domain kiting was a factor in a broader complaint brought by Dell and 
Alienware against various registrars and individuals in 2007 [here's the link 
-- http://www.domainnamenews.com/images/dell_doc1.pdf]

5.9.3      Recommendations

The RAPWG does not recommend policy development at this time.  The RAPWG 
suggests that the Council monitor the issue (in conjunction with ongoing 
reviews of domain-tasting) and consider next steps if conditions warrant. 


mikey


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