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VeriSign Plans Auctions of Expired Domains

Via ICANN Watch: VeriSign has notified ICANN of its intention to start auctioning expiring .com and .net domains. ICANN has not put the document online as yet, but the letter is posted at Michael Arrington's blog. (UPDATE: In fact, a summary can be found here on the ICANN site). An excerpt:

A core element of the Program would consist of a shared exchange platform that would enable all ICANN-accredited registrars to acquire deleting registrations through an online, auction-style process. The shared exchange would enable registrars to acquire deleting registrations relatively inexpensively. The use of a widely available, easily accessible exchange would also promote the fair and efficient acquisition of deleting registrations, while at the same time minimizing strains on the domain name registration infrastructure.
A centralized registry would marginalize many existing auction sites, limiting them to less popular TLDs. While VeriSign claims "broad support" among registrars, Tucows has announced a similar proposal. Still other registrars are working with SnapNames or other services. And yes, some supporters of a centralized auction may not trust VeriSign to manage the process (remember SiteFinder?).

So here's the summary, as I read the document: VeriSign is proposing to create a centralized listing service which would allow all registrars to place bids on behalf of their customers. The auctions would be conducted by reverse proxy (eBay style), with each bidder submitting a maximum bid. The registry (VeriSign) would keep 10 percent of the winning auction price as a fee, with the other 90 percent going to the registrar that managed the deleting domain. Unless (wait for it) "the previous registrar of record is not participating in the Central Listing Service." That's where the wording gets fuzzy, saying auction proceeds "would be held for a use to be determined by the registrars and agreed to by the .COM/.NET registry." Thus, the process appears presents an incentive for registrars to participate and support the centralized auction, but lacks clarity on key financial points.

As is the case with all matters ICANN and VeriSign, the proposal is bound to prompt an animated discussion. Read the letter for yourself.

    •   Posted by RichM April 28, 2005 | Permalink | Newsletter

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