Domain server

ICANN has no problem with Donuts DropZone – Domain Name Wire

ICANN is not concerned that DropZone presents significant security, stability or competition concerns.

ICANN Vice President GDD Accounts and Services Russ Weinstein informed TurnCommerce that he sees no problem with donuts plans for its DropZone service. Weinstein said Donuts’ plans do not raise significant security, stability or competition concerns.

Donuts has filed two Registry Services Evaluation Policy (RSEP) requests (pdf, pdf) with ICANN for the DropZone system.

With Dropzone, the registry provides an exact expiration time for each domain, and registrars can request the domains at that time through a discrete EPP server system. If multiple registrars submit a request, the domain is assigned to the first registrar to submit their request on or after the expiration date.

TurnCommerce co-founder Jeff Reberry has expressed concerns about the system and the precedent it could set. Apparently Donuts intends to charge a nominal fee for DropZone orders. It is not known whether the fees will be success-based or demand-based.

While not many people will be concerned about the fees for Donuts domains, this could give the Verisign .com registry an opening to find a way to extract revenue from the expired domain process.

Verisign has previously tried to generate more revenue from expired domains with a “waitlist” service. The company has also patented other means of distributing expired domains, including offering encoded backlogged domains and creating access pools to recover expired domains.