Registry Operator's Proposal

 

[INSTRUCTION: A Registry Operator's Proposal is to be submitted as part of every new TLD application. In case of applications for unsponsored TLDs, the registry operator will be the applicant and should prepare and submit the proposal as part of the application. In the case of applications for sponsored TLDs, the sponsoring organization (or, where the sponsoring organization has not yet been formed, organization(s) or person(s) proposing to form the sponsoring organization) will be the applicant. The sponsoring organization should select the proposed registry operator, have it prepare the Registry Operator's Proposal, and submit it as part of the application.

Please place the legend "CONFIDENTIAL" on any part of your description that you have listed in item F3.1 of your Statement of Requested Confidential Treatment of Materials Submitted.

The Registry Operator's Proposal should be separately bound (if more than one volume, please sequentially number them) and labeled: "Registry Operator's Proposal." and must cover all topics described below. This page, signed on behalf of the registry operator, should be included at the front of the Registry Operator's Proposal.]

 

I. GENERAL INFORMATION

D1. The first section of the Registry Operator's Proposal (after the signed copy of this page) should be a listing of the following information about the registry operator. Please key your responses to the designators (D1, D2, D3, etc.) below.

D2. The full legal name, principal address, telephone and fax numbers, and e-mail address of the registry operator.

D3. The addresses and telephone and fax numbers of all other business locations of the registry operator.

D4. The registry operator's type of business entity (e.g., corporation, partnership, etc.) and law (e.g., Denmark) under which it is organized.

D5. URL of registry operator's principal world wide web site.

D6. Dun & Bradstreet D-U-N-S Number (if any) of registry operator.

D7. Number of employees.

D8. Registry operator's total revenue (in US dollars) in the last-ended fiscal year.

D9. Full names and positions of (i) all directors, (ii) all officers, (iii) all relevant managers, and (iv) any persons or entities owning five percent or more of registry operator.

D10. Name, telephone and fax number, and e-mail address of person to contact for additional information regarding this proposal. If there are multiple people, please list all their names, telephone and fax numbers, and e-mail addresses and describe the areas as to which each should be contacted.

D11. The full legal name, principal address, telephone and fax numbers, e-mail address, and Dun & Bradstreet D-U-N-S Number (if any) of all subcontractors identified in item D15.3 below.

II. BUSINESS CAPABILITIES AND PLAN

D12. The second section of the Registry Operator's Proposal (after the "General Information" section) is a description of the registry operator's Business Capabilities and Plan. This section must include a comprehensive, professional-quality business plan that provides detailed, verified business and financial information about the registry operator. The topics listed below are representative of the type of subjects that will be covered in the Business Capabilities and Plan section of the Registry Operator's Proposal.
[INSTRUCTION: ICANN will extensively review and analyze this section of the Registry Operator's Proposal. The content, clarity, and professionalism of this section will be important factors in ICANN's evaluation of applications. We strongly recommend securing professional assistance from financial and management consultants to aid in the formulation of your business plan, in securing the necessary sources of financing, and in preparation of this section.]

D13. The Business Capabilities and Plan section should consist of at least the following:

D13.1. Detailed description of the registry operator's capabilities. This should describe general capabilities and activities. This description also offers the registry operator an opportunity to demonstrate the extent of its business and managerial expertise in activities relevant to the operation of the proposed registry. The following items should, at a bare minimum, be covered:

D13.1.1. Company information. Date of formation, legal status, primary location, size of staff, formal alliances, references, corporate or other structure, ownership structure.

D13.1.2. Current business operations. Core capabilities, services offered, products offered, duration of provision of services and products.

D13.1.3. Past business operations/entity history. History, date of formation, legal status/type of entity, initial services, duration of provision of services and products.

D13.1.4. Registry/database/Internet related experience and activities. Experience with database operation, Internet service provision.

D13.1.5. Mission. The registry operator's mission and how it relates to expansion into the registry operation field.

D13.1.6. Management. Qualifications and experience of financial and business officers and other relevant employees. Please address/include past experience, resumes, references, biographies.

D13.1.7. Staff/employees. Current staff size, demonstrated ability to expand employee base, hiring policy, employee training, space for additional staff.

D13.1.8. Commercial general liability insurance. Address/include amount of insurance policy, provider of policy, plans for obtaining additional insurance.

D13.2. Business plan for the proposed registry operations. This section should present a comprehensive business plan for the proposed registry operations. In addition to providing basic information concerning the viability of the proposed operations, this section offers the registry operator an opportunity to demonstrate that it has carefully analyzed the financial and operational aspects of the proposal. At a minimum, factors that should be addressed are:

D13.2.1. Services to be provided. A full description of the registry services to be provided.

D13.2.2. Revenue model. A full description of the revenue model, including rates to be charged for various services.

D13.2.3. Market. Market definition, size, demand, accessibility.

D13.2.4. Marketing plan. Advertising, publicity, promotion strategy, advertisement development strategy, relationship with advertising firm. Use of registrars and other marketing channels.

D13.2.5. Estimated demand for registry services in the new TLD. Projected total demand for registry services in the TLD, effect of projected registration fees, competition. Please provide estimates for at least 10%, 50%, and 90% confidence levels.

D13.2.6. Resources required to meet demand. Provide a detailed estimate of all resources (financial, technical, staff, physical plant, customer service, etc.) required to meet the estimated demands, using at least the 10%, 50%, and 90% confidence levels.

D13.2.7. Plans for acquiring necessary systems and facilities. Describe plans for acquiring all necessary systems and facilities for providing the proposed services at each estimated demand level. Provide details as to the scope, cost, and vendor for any significant planned outsourcing.

D13.2.8. Staff size/expansion capability. Plans for obtaining the necessary staff resources, capacity for expansion, hiring policy, employee training, space for additional staff, staffing levels needed for provision of expanded technical, support, escrow, and registry services.

D13.2.9. Availability of additional management personnel. How will management needs be filled?

D13.2.10. Term of registry agreement. State assumptions regarding the term of any registry agreement with ICANN or the sponsoring organization. Note that the .com/.net/.org registry agreement has a basic term of four years.

D13.2.11. Expected costs associated with the operation of the proposed registry. Please break down the total estimated operational costs by the sources of the costs for each estimated demand level. Be sure to consider the TLD's share of ICANN's cost recovery needs. (See <http://www.icann.org/financials/budget-fy00-01-06jun00.htm#IIIB>.)

D13.2.12. Expected revenue associated with the operation of the proposed registry. Please show how expected revenue is computed at each estimated demand level.

D13.2.13. Capital requirements. Quantify capital requirements in amount and timing and describe how the capital will be obtained. Specify in detail all sources of capital and the cost of that capital (interest, etc.). Evidence of firm commitment of projected capital needs will substantially increase the credibility of the registry operator's proposal.

D13.2.14. Business risks and opportunities. Describe upside and downside contingencies you have considered and discuss your plans for addressing them.

D13.2.15. Registry failure provisions. Please describe in detail your plans for dealing with the possibility of registry failure.

D13.3. Pro-forma financial projections. Please provide detailed pro-forma financial projections, consistent with your business plan, for the demand scenarios that you estimate under item D13.2.5. The pro-formas should show revenue and expense estimates broken down by detailed categories and should be broken down into periods no longer than quarterly.

D13.4. Supporting documentation. The following documentation should be provided in support of the Business Capabilities and Plan section:

D13.4.1. Registry operator's organizational documents. Documents of incorporation (or similar documents).

D13.4.2. References. A list of significant trade and credit references.

D13.4.3. Annual report. The registry operator's most recent annual financial report (or similar document). Audited financials are preferred.

D13.4.4. Proof of capital. Provide evidence of existing capital or firm commitments of capital. Demonstrated access to necessary capital will be carefully scrutinized.

D13.4.5. Proof of insurance. Please provide proof of the insurance described in item D13.1.8.

III. TECHNICAL CAPABILITIES AND PLAN

D14. The third section of the Registry Operator's Proposal is a description of the registry operator's Technical Capabilities and Plan. This section must include a comprehensive, professional-quality technical plan that provides a detailed description of the registry operator's current technical capabilities as well as a full description of the operator's proposed technical solution for establishing and operating all aspects of the registry. The technical plan will require detailed, specific information regarding the technical capabilities of the proposed registry. The topics listed below are representative of the type of subjects that will be covered in the Technical Capabilities and Plan section of the Registry Operator's Proposal.
[INSTRUCTION: ICANN will extensively review and analyze this section of the Registry Operator's Proposal. The content, clarity, and professionalism of this section will be important factors in ICANN's evaluation of applications. We strongly recommend that those who are planning to apply secure professional assistance from engineers and/or other technical consultants to aid in the formulation of the technical plan and the preparation of the Technical Capabilities and Plan section of the Registry Operator's Proposal.]

D15. The Technical Capabilities and Plan section should consist of at least the following:

D15.1. Detailed description of the registry operator's technical capabilities. This should provide a detailed description of the registry operator's technical capabilities, including information about key technical personnel (qualifications and experience), size of technical workforce, and access to systems development tools. It should also describe the registry operator's significant past achievements. This description offers the registry operator an opportunity to demonstrate the extent of its technical expertise in activities relevant to the operation of the proposed registry.

D15.2. Technical plan for the proposed registry operations. This should present a comprehensive technical plan for the proposed registry operations. In addition to providing basic information concerning the operator's proposed technical solution (with appropriate diagrams), this section offers the registry operator an opportunity to demonstrate that it has carefully analyzed the technical requirements of registry operation. Factors that should be addressed in the technical plan include:

D15.2.1. General description of proposed facilities and systems. Address all locations of systems. Provide diagrams of all of the systems operating at each location. Address the specific types of systems being used, their capacity, and their interoperability, general availability, and level of security. Describe in detail buildings, hardware, software systems, environmental equipment, Internet connectivity, etc.

D15.2.2. Registry-registrar model and protocol. Please describe in detail.

D15.2.3. Database capabilities. Database size, throughput, scalability, procedures for object creation, editing, and deletion, change notifications, registrar transfer procedures, grace period implementation, reporting capabilities, etc.

D15.2.4. Zone file generation. Procedures for changes, editing by registrars, updates. Address frequency, security, process, interface, user authentication, logging, data back-up.

D15.2.5. Zone file distribution and publication. Locations of nameservers, procedures for and means of distributing zone files to them.

D15.2.6. Billing and collection systems. Technical characteristics, system security, accessibility.

D15.2.7. Data escrow and backup. Frequency and procedures for backup of data. Describe hardware and systems used, data format, identity of escrow agents, procedures for retrieval of data/rebuild of database, etc.

D15.2.8. Publicly accessible look up/Whois service. Address software and hardware, connection speed, search capabilities, coordination with other Whois systems, etc.

D15.2.9. System security. Technical and physical capabilities and procedures to prevent system hacks, break-ins, data tampering, and other disruptions to operations. Physical security.

D15.2.10. Peak capacities. Technical capability for handling a larger-than-projected demand for registration or load. Effects on load on servers, databases, back-up systems, support systems, escrow systems, maintenance, personnel.

D15.2.11. System reliability. Define, analyze, and quantify quality of service.

D15.2.12. System outage prevention. Procedures for problem detection, redundancy of all systems, back up power supply, facility security, technical security, availability of back up software, operating system, and hardware, system monitoring, technical maintenance staff, server locations.

D15.2.13. System recovery procedures. Procedures for restoring the system to operation in the event of a system outage, both expected and unexpected. Identify redundant/diverse systems for providing service in the event of an outage and describe the process for recovery from various types of failures, the training of technical staff who will perform these tasks, the availability and backup of software and operating systems needed to restore the system to operation, the availability of the hardware needed to restore and run the system, backup electrical power systems, the projected time for restoring the system, the procedures for testing the process of restoring the system to operation in the event of an outage, the documentation kept on system outages and on potential system problems that could result in outages.

D15.2.14. Technical and other support. Support for registrars and for Internet users and registrants. Describe technical help systems, personnel accessibility, web-based, telephone and other support, support services to be offered, time availability of support, and language-availability of support.

D15.3 Subcontractors. If you intend to subcontract any the following:

·         all of the registry operation function;

·         any portion of the registry function accounting for 10% or more of overall costs of the registry function; or

·         any portion of any of the following parts of the registry function accounting for 25% or more of overall costs of the part: database operation, zone file generation, zone file distribution and publication, billing and collection, data escrow and backup, and Whois service

please (a) identify the subcontractor; (b) state the scope and terms of the subcontract; and (c) attach a comprehensive technical proposal from the subcontractor that describes its technical plans and capabilities in a manner similar to that of the Technical Capabilities and Plan section of the Registry Operator's Proposal. In addition, subcontractor proposals should include full information on the subcontractor's technical, financial, and management capabilities and resources.

By signing this Registry Operator's Proposal, the undersigned certifies (a) that he or she has authority to do so on behalf of the registry operator and, on his or her own behalf and on behalf of the registry operator, (b) that all information contained in this proposal, and all documents attached to this proposal, is true and accurate to the best of his/her/its knowledge and information. The undersigned and the registry operator understand that any material misstatement or misrepresentation will reflect negatively on any application of which this proposal is a part and may cause cancellation of any delegation of a top-level domain based on such an application.

 

 

                                                                       

Signature

 

            Henry A. Lubsen, Jr.            

Name (please print)

 

            President                                          

Title

 

            iDomains, Inc.                                   

Name of Applicant(s)

 

            September 30, 2000                       

Date


 

I.                   General Information

D1. The first section of the Registry Operator's Proposal (after the signed copy of this page) should be a listing of the following information about the registry operator. Please key your responses to the designators (D1, D2, D3, etc.) below.

D2. The full legal name, principal address, telephone and fax numbers, and e-mail address of the registry operator.

iDomains, Inc.

23 West 4th Street

Bethlehem, Pennsylvania 18015

U.S.A.

 

610.317.9606 (voice)

610.317.9570 (fax)

 

info@idomains.com

D3. The addresses and telephone and fax numbers of all other business locations of the registry operator.

 

            There is one additional business location of the registry operator, as follows:

 

            824 8th Avenue

            Bethlehem, Pennsylvania 18018

            U.S.A.

 

            610.868.8000 (voice)

            610.868.0701 (fax)

D4. The registry operator's type of business entity (e.g., corporation, partnership, etc.) and law (e.g., Denmark) under which it is organized.

 

iDomains, Inc. is a corporation formed under the laws of the Commonwealth of Pennsylvania, U.S.A.

D5. URL of registry operator's principal world wide web site.

The URL of iDomains, Inc. is www.idomains.com.

 

D6. Dun & Bradstreet D-U-N-S Number (if any) of registry operator.

iDomains, Inc. does not have a D-U-N-S Number.

D7. Number of employees.

iDomains, Inc. presently has 4 employees.

D8. Registry operator's total revenue (in US dollars) in the last-ended fiscal year.

iDomains, Inc. had no revenue for the last-ended fiscal year.

D9. Full names and positions of (i) all directors, (ii) all officers, (iii) all relevant managers, and (iv) any persons or entities owning five percent or more of registry operator.

 

The full names and positions of all officers, directors, managers and five percent shareholders are:

 

                        Directors:         Henry A. Lubsen, Jr.

                                                Kenyon T. Stubbs

                                                Michael D. Palage

                                                M. Scott Hemphill

 

                        Officers:           Henry A. Lubsen, Jr., President

                                                Steve Heflin, Vice President

                                                Kenyon T. Stubbs, Vice President

                                                M. Scott Hemphill, Vice President & General Counsel

 

                        Mangers:          See the officers listed above.

 

Shareholders:    Henry A. Lubsen, Jr. is the only owner of more than five percent of the stock of iDomains, Inc.

D10. Name, telephone and fax number, and e-mail address of person to contact for additional information regarding this proposal. If there are multiple people, please list all their names, telephone and fax numbers, and e-mail addresses and describe the areas as to which each should be contacted.

The person to contact for additional information regarding this proposal is:

 

                        Henry A. Lubsen, Jr.

                        610.317.9606 (voice)

                        610.317.9570 (fax)

                        hlubsen@domainbank.net

D11. The full legal name, principal address, telephone and fax numbers, e-mail address, and Dun & Bradstreet D-U-N-S Number (if any) of all subcontractors identified in item D15.3 below.

 

The contact information for the subcontractors identified in item D15.3 is as follows:

 

CORE  Internet Council of Registrars
World Trade Center II
29 route de Pre-Bois
CH-1215 Geneva
Switzerland
Telephone +41 22 929 5744 
Fax +41 22 929 5745

E-mail address: secretariat@corenic.org

 

 

II.                Business Capabilities and Plan

 

D12. The second section of the Registry Operator's Proposal (after the "General Information" section) is a description of the registry operator's Business Capabilities and Plan. This section must include a comprehensive, professional-quality business plan that provides detailed, verified business and financial information about the registry operator. The topics listed below are representative of the type of subjects that will be covered in the Business Capabilities and Plan section of the Registry Operator's Proposal.

 

D13. The Business Capabilities and Plan section should consist of at least the following:

D13.1. Detailed description of the registry operator's capabilities. This should describe general capabilities and activities. This description also offers the registry operator an opportunity to demonstrate the extent of its business and managerial expertise in activities relevant to the operation of the proposed registry. The following items should, at a bare minimum, be covered:

D13.1.1. Company information. Date of formation, legal status, primary location, size of staff, formal alliances, references, corporate or other structure, ownership structure.

 

iDomains, Inc. was formed on May 19, 1998 under the laws of the Commonwealth of Pennsylvania.  The company, headquartered in Bethlehem, Pennsylvania, U.S.A., is active and in good standing according to the records of the Pennsylvania Corporation Bureau.  iDomains, Inc. is a sister corporation of Domain Bank, Inc., an ICANN-accredited registrar, in that both corporations are under common control.  The sole shareholder of iDomains, Inc. is Henry A. Lubsen, Jr. 

 

iDomains is committed to creating a truly global registry company.  That commitment is evident in (i) our selection of a European-based global organization (CORE) to operate the back-end registry services for .BIZ and (ii) our formation of a Business Advisory Committee (detailed in Section E10 of the Description of TLD Policies) to provide direction in policy development and assist us in developing registry services that meet the needs of commercial interests on a global scale. 

 

As further evidence of our efforts at global outreach, iDomains is committed to global participation in both ownership & management of the proposed TLD. To this end we have committed to seeking global equity partners for up to 25% of the ownership of iDomains by multiple qualified parties whose principal business is conducted outside of North America (with particular focus on the Pan-European and Pacific Rim geographic regions).  We are diligently working towards meeting these goals, keeping in mind that it is essential that the selection of the parties be made in a deliberated, orderly manner. As an example, we have had preliminary discussions with a highly-qualified potential partner whose business is located in the city of Wuhan, (population 12,000,000) in the Peoples Republic of China.  We have reserved a seat on the Board of Directors of iDomains to represent our global partners.

 

iDomains realizes the inherent conflict in ICANN authorizing an accredited registrar to register domain names in a registry where the majority owner of such registry is an affiliate of the registrar.  We believe that such a conflict is irresolvable by use of “Chinese Walls” and similar intra-corporate divisions of staff and resources.  The owners of Domain Bank are therefore prepared, if iDomains is awarded a registry contract pursuant to this application, to divest at least seventy-five percent (75%) of the equity ownership and management control of Domain Bank to one or more third parties.

 

The company has no employees other than the officers listed in paragraph D9 above.  Domain Bank presently employees 15 persons (including the persons listed as officers under D9 above).  It is our intent that certain employees of Domain Bank would migrate to iDomains upon contracting with ICANN to provide registry services.  Further, iDomains would hire additional staff as required.

 

The Company has no formal alliances.  Domain Bank, however, is a founding member of CORE, and CORE has agreed to provide the back-end registry services for the .BIZ registry.

 

See Section D13.4.2 for a list of references.

           

 

 

 

 

D13.1.2. Current business operations. Core capabilities, services offered, products offered, duration of provision of services and products.

 

iDomains, Inc. has not engaged in significant operations to date.  The Company was formed in 1998 for the purposes of  providing domain name registry services as opportunities to provide such services became available.  
 
Domain Bank is a provider of Internet domain name registration services worldwide, offering a quick and user-friendly registration process, responsive and reliable customer support and ancillary products and services such as web forwarding, e-mail forwarding and new host creation services.  
 
Domain Bank is a founding member of the Internet Council of Registrars (CORE), a Swiss association.  In April, 1999, CORE was selected by the United States Department of Commerce to act as one of the five test-bed registrars to introduce competition into the domain name registration business for domain names under the .com, .net and .org top-level domains.  In July 1999, Domain Bank began offering domain name registration services as a member of CORE.  In August, 1999, Domain Bank became accredited by the Internet Corporation for Assigned Names and Numbers (ICANN), and was the first direct registrar to the .com, .net and .org registries other than the testbed registrars.  Since that time, the Company has operated as a direct ICANN Accredited Registrar.

D13.1.3. Past business operations/entity history. History, date of formation, legal status/type of entity, initial services, duration of provision of services and products.

iDomains, Inc was formed on May 19, 1998 as a Pennsylvania corporation.  iDomains, as sister corporation of Domain Bank, Inc., was formed for the purpose of providing domain name registry services as opportunities to provide such services became available. 

 

The initial services that iDomains proposes to provide are registry management services for a top level domain restricted to commercial uses.  Specifically, iDomains (either directly, or through third party vendors as detailed in this proposal) plans to provide the following services for the .BIZ directory:

 

1.                  Domain Name Registry Services for second level domain names in the .BIZ top level domain;

 

2.                  Centralized Whois, adopting a “fat” registry model;

 

3.                  Subscription-based enhanced whois search capabilities, and bulk whois access incorporating spam prevention measures;

 

4.                  Third level domain registration keyed to geographically significant second level domains;

 

5.                  Business directory service that would permit searches to be performed on a variety of variables, including business name, category of business conducted, location, and management or other key personnel.

 

6.                  Domain name monitoring service whereby any time any data field in the registration record maintained by the registry is modified in any respect, a notice will be sent by e-mail to the registrant and the Administrative Contact for the domain name informing them of such change.

 

7.                  Service history reports that will show the chain of registrants for a particular domain name. 

 

Further, iDomains plans on actively pursuing new services that could add value to the ability of registrants to conduct business efficiently, effectively and securely on the Internet, while providing the Internet community in general with adequate access to information concerning registrations.  For instance, iDomains would support the development of a cross-registry whois service.

 

D13.1.4. Registry/database/Internet related experience and activities. Experience with database operation, Internet service provision.

 

iDomains, Inc. has not engaged in active registry or similar operations to date.  However, Domain Bank, Inc., iDomains’ sister corporation, has extensive experience in these areas.  Domain Bank is an ICANN-accredited registrar, and has operated as such since the test-bed period.  As such, Domain Bank has extensive experience in building and maintaining a database of domain name registration information, including most information that we propose be kept at the registry for .BIZ.  Naturally, as a domain name registrar, Domain Bank and its staff are involved in numerous aspects of operating an internet business, including maintaining and operating a commercial web site; processing payments online; designing and developing software; maintaining appropriate hardware, connectivity and other technical infrastructure; providing customer service via e-mail, fax and telephone; and planning and implementing a marketing plan for an online domain name business.

 

With respect to CORE, the proposed back-end subcontractor for the .BIZ registry, we note the following experience.

 

Experience with shared registry database management

 

Shared databases as used in a shared registry are a relatively recent development. Even prior to developing its own system, CORE has been able to build on the experience made by CORE members who worked with two major shared registries, DENIC (.de) and Nominet (e.g., .co.uk).  Several members of CORE's SRS working group held supervisory board positions.  Equally important were contributions from members who worked with a large number of different domain name registries.

 

CORE's current shared Registrar System is a variant of the second implementation of its SRS design. Both implementations of the CORE SRS have originally been developed as a full-fledged registry system.

 

Experience with .com/.net/.org shared registry

 

At the time of writing, the CORE SRS manages over 800,000 domains under the responsibility of 30 CORE members. The SRS team manages the central Whois server (whois.corenic.net), which is updated within minutes after domain or contact information is changed.

 

The CORE SRS version used for .com/.net/.org is based on the second implementation of the CORE SRS developed in 1999. The interconnection with the NSI Registry took place in the framework of the NSI shared registry testbed for which CORE was selected as a "testbed registrar" by ICANN. It is important to point out that technically, a shared registrar system to be kept in synchrony with a "dorsal-spine-only" shared registry is more complex than a standalone registry. Moreover, CORE's work on the NSI interconnection could only start in June 1999 as NSI had not previously published its RRP protocol and at that time required a non-disclosure agreement and a performance bond before supplying any information.

 

Additional plausibility-checking, automated archiving and verification tools are run by the SRS team and the CORE secretariat. These systems are updated and improved continuously.

 

Despite its generally decentralized organizations CORE relies on certain centralized verification mechanisms, such as those involved in domain holder changes. Experience with these mechanisms is key for CORE's proposals for distributed enforcement and verification mechanisms with a central audit electronic trail.

 

Internet-related experience and know-how available within membership

 

Most CORE members have a long-standing track record of internet related activities, either as Internet application developers, ISPs, Telecommunications companies, application hosting providers, hardware housing providers, ccTLD registries or specialized domain name registries.

 

D13.1.5. Mission. The registry operator's mission and how it relates to expansion into the registry operation field.

The mission of iDomains in operating a registry for .BIZ is to provide a portion of the domain name space to enhance the ability of registrants to transact commerce on the Internet within an environment of increased effectiveness, efficiency and security.  Our goal is to restore the original vision of .com, a TLD for commercial use.  By focusing on the business needs of registrants, we believe that we can couple reliable and efficient registry maintenance services with value added services designed to meet the needs of today’s rapidly growing electronic commerce markets.

 

D13.1.6. Management. Qualifications and experience of financial and business officers and other relevant employees. Please address/include past experience, resumes, references, biographies.

 

Henry A. Lubsen, Jr. – Director, Chief Executive Officer & President.  Mr. Lubsen founded the Company in December, 1997.  Mr. Lubsen is also the founder and President of Domain Bank, Inc., iDomains’ sister corporation.  Since 1998, Mr. Lubsen has served as a member of the Executive Committee of the Internet Council of Registrars (CORE), a Swiss association.  In his capacity of President and Chief Executive Officer of Domain Bank, Mr. Lubsen is involved on a full-time daily basis in dealing with domain registration issues and is the principal company contact with the NSI Registry. 

 

Mr. Lubsen has over 35 years of business experience in various disciplines.  In addition to Internet companies, he is currently the President of Altronics, Inc., an alarm and security system vendor, and of Allied Central Services, an alarm monitoring company.  As such, he has extensive experience in the operation of 24/7 customer service departments, and the development and maintenance of high security, redundant databases and networks.  The alarm company systems are periodically inspected by Underwriters Laboratory, the third party certification service.  Further, Mr. Lubsen’s alarm and monitoring companies have provided him with a solid base of experience in recurring revenue businesses, and the accounting and related issues unique to such ventures.

 

In addition, Mr. Lubsen is engaged in the real estate development business in the Eastern Pennsylvania market. His real estate businesses realized revenue in the 10-15 million dollar range per year.

 

He is a 1965 graduate of Muhlenburg College, located in Allentown, Pennsylvania, with a B.A. degree in Psychology.

 

 
Kenyon T. Stubbs – Director & Vice President of Public Affairs.  Mr. Stubbs joined the Company in March, 2000 as Vice President of Public Affairs.  Prior to joining Domain Bank, Mr. Stubbs was associated with Domain Names International, Ltd.  (“DNI”).  Mr. Stubbs has been a member of the Executive Committee of CORE since 1998, serving as Chairman of ExCom since that time.  

 

Mr. Stubbs is a graduate with distinction from San Diego State University (B.S. in Business, 1967) and is a Certified Public Accountant.  He has over 35 years of extensive business management experience, including having owned his own business, and has been active in Internet strategy and consulting service business since 1993. 


Prior to starting his own management consulting firm in 1974, he worked for KPMG Peat Marwick and Ernst & Young, specializing in accounting systems and operations management.

His consulting services have concentrated primarily on organizational structures, operations and marketing strategies. Clients have ranged from start-ups with sales of less than $500,000 to established companies with sales over in excess of $10 Billion.

Mr. Stubbs has consulted on Internet business development strategies since 1994. Clients have included Fortune Brands, Hoechst-Celanese and Wilson Sporting Goods Worldwide, as well as numerous small businesses.  He has served as director of marketing and strategic business partnerships for an Internet services company, which was involved in web site design, development, and hosting.
 
He is a frequent participant and speaker at international  forums on the Internet & Domain Name System.  He has testified as an expert before the United States House Commerce Committee  as well as the United States House Judiciary Committee on Internet development, Commerce and Intellectual Property as it relates to Internet Issues.

 

M. Scott Hemphill – Director, Vice President & General Counsel – Mr. Hemphill joined the company on January 1, 2000.  Prior to joining the Company, Mr. Hemphill was a shareholder in the Allentown, Pennsylvania law firm Fitzpatrick Lentz & Bubba, P.C., where he represented iDomains, Domain Bank and their affiliates in a wide range of matters.  Prior to that experience, Mr. Hemphill was associated with the Washington, D.C. law firm Shaw, Pittman, Potts & Trowbridge.  Mr.  Hemphill received his B.S. in Business from Wake Forest University in 1985 and his J.D. from the College of William and Mary in 1991.

 

Mr. Hemphill has extensive experience in dealing with Internet issues.  He has counseled Domain Bank (and CORE while in private practice) on a wide variety of issues arising in the course of the domain name registration business.  Such issues include, among others,  drafting and enforcement of agreements with registrants, affiliates, vendors and partners; trademark and cybersquatting matters; Uniform Dispute Resolution Policy proceedings, corporate law and employment law.  Mr. Hemphill currently participates on the ICANN Registrar’s Constituency task force that is developing a Code of Conduct for ICANN-accredited registrars.

 

           

Steve Heflin – Vice President.  Mr. Heflin is Vice President in charge of Affiliate Marketing.  Mr. Heflin has been with the Company since its inception.  Prior to joining Domain Bank, Mr. Heflin was a co-founder of Internet Tidal Wave, one of the first internet service providers in the Eastern Pennsylvania market.  Mr. Heflin has lectured extensively on Internet related issues. 
 

 

Michael D. Palage – Director.  Mr. Palage is a member of the Company’s Board of Directors.  He is also Vice President and Chief Technology Officer of InfoNetworks, Inc., an international computer service and consulting company, located in Florida, providing high-end information services to the legal and business community.  His primary focus is business development as well as software design and enhancement.

 

Mr. Palage presently serves as Secretariat of the ICANN DNSO Registrar Constituency.  Further, he is Co-Chair of ICANN Working Group B, pursuant to which he was responsible for chairing and preparing the report evaluating the WIPO recommendation for safeguarding famous trademarks in connection with the Domain Name System.

 

Mr. Palage is a frequent speaker at Internet related conferences, the most recent being the ICANN orientation workshop in  Yokohama, Japan (July, 2000) where he was a panelist for a discussion of "New Internet Top-Level Domains", and a KRNIC ICANN workshop in Seoul, Korea (July, 2000), where he was a guest speaker on the topic "Famous Trademarks and the Internet Domain Name System".

 

Mr. Palage received his B.S.E.E. from Drexel University in 1990, and his J.D. from Temple University School of Law in 1995.

 

D13.1.7. Staff/employees. Current staff size, demonstrated ability to expand employee base, hiring policy, employee training, space for additional staff.

iDomains staff currently consists of the four officers listed in Section D13.1.6 above, which comprise the core management of the Company.  These individuals represent a significant pool of business experience comprising expertise in the areas of financial management, staffing, customer service, legal and administrative, operations, and technical staff supervision. 

 

As stated above, Domain Bank presently has 15 employees.  We anticipate that many of such personnel will migrate to iDomains upon award of the registry contract by ICANN.  The Company would then hire as appropriate in order to meet the demands of the registry operation.  The Company contemplates hiring a customer service staff adequate to handle the proposed registry anticipated global needs, including provision for multi-lingual support as demand requires.  Further, we would immediately begin the process of recruiting a CTO for the registry operations.  We would also begin to hire marketing staff promptly.  Since the registry back-end would be operated by CORE, much of the technical staffing requirements would be filled by CORE.

 

The Company shares facilities with Domain Bank in a 6,000 square foot commercial office building in Bethlehem, Pennsylvania.  The building is owned by Domain Bank. Presently, approximately half of the building is occupied, and the other half is available to house the increased operational demands of iDomains upon award of a registry contract.  In addition, Domain Bank currently co-locates many of its servers with Fastnet Corporation, a local ISP.

 

The Company is an Equal Opportunity Employer, as defined under applicable United States laws and regulations. 

 

With regard the proposed back-end subcontractor for the .BIZ registry, CORE plans to build up a team of 8 to 10 staff positions by the time registry operations start. Depending on the overall workload required, the initial staffing level may be higher. 

 

D13.1.8. Commercial general liability insurance. Address/include amount of insurance policy, provider of policy, plans for obtaining additional insurance.

iDomains, Inc. is an additional insured under the commercial liability policy of Domain Bank, Inc., as described below:

 

Insurance Agency:        Henry S. Lehr, Inc.

                                                            3893 Adler Place

                                                            PO Box 25001

                                                            Lehigh Valley PA 18001

 

                        Insured By:                   Fireman’s Insurance Company of Washington, D.C.

 

                        Coverage:                     Each Occurrence -                   $1,000,000

                                                            Fire Damage -                          $   100,000                             

                                                            Med Exp -                               $     10,000                 

                                                            Personal Inj -                            $1,000,000

                                                            General Aggregate -                 $2,000,000

                                                            Products-Comp/OP Agg -        $2,000,000

 

 

iDomains will obtain such other insurance as may be required by ICANN, or as iDomains otherwise deems prudent.

 

D13.2. Business plan for the proposed registry operations. This section should present a comprehensive business plan for the proposed registry operations. In addition to providing basic information concerning the viability of the proposed operations, this section offers the registry operator an opportunity to demonstrate that it has carefully analyzed the financial and operational aspects of the proposal. At a minimum, factors that should be addressed are:

D13.2.1. Services to be provided. A full description of the registry services to be provided.

Domain Name Registry Services

 

iDomains proposes to offer domain name registry services under the restricted top-level domain .BIZ.  Registrations in .BIZ are proposed to be restricted to registrants that represent their intent to use the domain name only with respect to web sites that facilitate commerce on the internet.  We believe that the original concept of the .com top level domain, that is, a TLD restricted to commercial uses, was well conceived.  The idea that a portion of the domain name space be reserved for commercial uses would allow electronic commerce to be marketed more directly, and operated more efficiently and more securely.   The core service provided by the Company will be the maintenance of the .BIZ registry database.  The Company will provide the ability for ICANN-accredited registrars to register second-level domain names in the .BIZ registry on behalf of their respective customers.

 

In order for a registrant to be permitted to register in .BIZ, such registrant would be required to represent and warrant that the domain name will be used only in connection with a web site that offers goods or services in commerce.  Further, as a indication of intent to use the domain name in commerce, the registrant will be required to submit a tax identification number, along with its corresponding country, as part of the registration process.  This information will be displayed in the whois output as a reference for persons that desire to initiate a challenge of the registrant’s use of the domain as being not within the charter requirements.

 

Centralized Whois

 

The Company proposes to maintain a centralized whois service at the registry level.  iDomains recognizes that under the current thin registry/decentralized whois system, in which registrars maintain customer contact information and provide whois services, the lack of uniformity in whois services has hampered the internet community’s ability to access reliable registrant data.  Our registry will retain all registrant data, and will make such data available in a uniform format. 

 

Further, the advantages to a centralized Whois service go beyond the uniform aspect.  We propose to build functionality into the Whois service that will (i) minimize abusive uses of Whois data, (ii) enhance the ability of businesses to market their products and services, and (iii) enable the intellectual property community to adequately monitor the legitimate rights of trademark owners worldwide.

 

One of the problems with the current decentralized whois service is that some registrars may not take adequate measures to prevent data mining and harvesting of registrant information in such registrar’s database.  As a result, registrant contact information can be mined and added to e-mail mailing lists, subjecting such registrants to “spam” and other unwanted solicitations.  By centralizing whois data, and building effective data mining prevention into the whois software, we believe registrants will enjoy added protection against spammers.

 

Another proposed measure designed to protect registrants against abusive uses of whois data is to stratify access to whois searches.  We would propose that access be provided in one of two manners:

 

i)                    Casual query:  Such access will be provided to anyone for free, and will be limited to one domain name look-up search at a time.  Such whois service will be accessed at the registrar’s web sites, via an interface available to any registrar active to the registry;

 

ii)                   Subscription-based access:  Such access will be provided on a cost recovery basis under a license agreement that will prohibit abusive uses of the data obtained (e.g., developing commercial e-mail lists).  Licensees would be permitted to search whois data by a number of variables, including character strings, registrant name and registrant address. 

 

iii)                 Bulk Access:  Bulk access to the whois database would be provided as follows.  iDomains would make the database available to any ICANN accredited registrar for resale by such registrar to its customers.  Any resale by such registrar would be subject to ICANN policies (e.g., the registrar could not charge more than $10,000 per year for the data).  Further, the registrars would be required to obtain from the end user an agreement (in a form approved by iDomains) to use the information only for lawful purposes and in no event for purposes that would constitute abuse of the data, such as facilitating high volume commercial e-mail.

Fees collected by iDomains for provision of bulk whois service will be used to fund cooperative marketing projects designed to increase the .BIZ brand, and thus increase business for registrars, as well as the registry.

 

As further protection against abusive uses of the bulk whois data, All e-mail addresses displayed in the bulk whois will be replaced in the form of

CONTACT-HANDLE>@handles.registry.biz within the following guidelines:

 

E-mail received at <CONTACTHANDLE>@handles.registry.biz will be forwarded to the contact's real e-mail address. If the E-Mail address becomes invalid or bounces, the forwarding mechanism will be disabled and the contacts true e-mail address will be put into the bulk whois data.

This default mechanism for all registrations is designed to enable spam prevention; however, upon request of a registrant, such registrant may have their default changed to disabled. The true and correct contact's e-mail address will be disclosed to courts and police upon request.

Using the above policies will enable the registry to mitigate spam on the behalf of registrants. Should a mass mailing be sent to registrants within the .BIZ registry, the registry will be able to file appropriate legal action as the e-mail addresses could have only been mined from the registry whois. We believe that e-mail spam prevention and detection will become an industry standard as we will be able to show just how much the whois database is used as a source for spammer lists.

The .BIZ registry will make available to the Internet Community additional statistics, sample spam, and know spam origination sites. The .BIZ Registry will work with Industry anti-spam and UCE prevention leaders a such as RBL/Maps Project and other anti-spam organizations to encourage the responsible use of whois data.

 

We believe that improving the delivery of whois services to the Internet community will be an important “proof of concept” vehicle for the new TLD.  Whois service will be delivered in a stable, reliable, secure system that will provide safeguards against data mining and abusive use of whois data.

 

Cross-Registry Database

 

In addition the Company is committed to full cooperation in the development and operation of a cross-registry whois database that would provide full search capabilities and access to all relevant information concerning domain name registrations regardless of the TLD in which the domain name is registered.

 

Third Level Domains

 

iDomains recognizes that businesses throughout the world perceive value in broadcasting their county of domicile in various manners, including the domain name that they do business under.  For instance, businesses in South Korea or England may be more comfortable doing business online using a third-level domain under .co.kr or .co.uk, respectively, rather than .com.   Given such desire for regional and national presence indicators in domain names, iDomains plans to develop a system of third level domains under .BIZ for use by registrants.  Specifically, iDomains will reserve all of the two-letter strings as second level domains under .BIZ.  Under such SLDs, third level domains will be registered to registrants as follows.  Each registrant under .BIZ will receive a third level domain under the second level .BIZ name corresponding to the ISO 3166-1 country code of the registrant’s domicile.  For instance, a registrant from Australia that registered ABC.BIZ would automatically be assigned the rights to ABC.AU.BIZ as well.  Such service would be provided at no additional charge to the registrant.  The registrant could also opt to register third level domains with their servicing registrar under any other two letter .BIZ SLDs for a specified fee.  Such registrant would be under no obligation to register such additional third-level domains, and the registrants string will be protected against registrations by other parties in the third level as described above. 

 

The purpose of providing the third level domains is to permit companies to instantly provide their customers with an indication of the nationality and location of the company.  This system will provide great flexibility to registrants.  If they wish to market on a global basis, they may choose to use only the second level domain name (e.g., ABC.BIZ).  If the customer perceives value in marketing regionally, they may choose to use their third level domain (e.g., ABC.AU.BIZ).  Further, a registrant could register several third level domains, representing different geographic regions, and market differently to different regions, even maintaining different web sites geared to such region.

 

Directory Service

 

As an additional value-added service to registrants, iDomains will create and maintain a directory based on search engine technology.  The directory will serve as a business directory for registrants.  Each registrant will be able to provide certain information about its products and services via the directory.  The third level domain regime outlined above will enhance a directory user’s ability to perform country specific searches related to particular business lines.  Searches could be performed on a variety of variables, including business name, category of business conducted, location, and management or other key personnel.  The information will be browsable and searchable via web and LDAP based clients.  The Business  Registrants will have the option of registering in the directory and associating additional data elements such as URLs, business and marketing telephone, email and fax numbers.

 

 

Domain Monitoring Service

 

Domain name “hijacking” and other unauthorized changes of registrant information is a problem that has been escalating in recent months.  In fact, earlier this year ICANN-accredited registrars held a summit in Reston, Virginia to discuss the problem with the United States Federal Bureau of Investigation and Department of Justice.  We believe that the centralized registry database outlined above will alleviate the concern to some extent.  However, since registrant data modifications will still be controlled by the registrars, we believe an added domain monitoring service will be of great value to registrants.  Our concept is to provide a service whereby any time any data field in the registration record maintained by the registry is modified in any respect, a notice will be sent by e-mail to the registrant and the Administrative Contact for the domain name informing them of such change.  This will provide an added level of protection in the event of an unauthorized record modification.

 

Service History Reports

 

We intend on developing a capacity to provide service history reports for domain names registered in the .BIZ registry.  Such reports will show the chain of registrants for a particular domain name.  We intend to provide this service on both an casual basis as well as via subscription to parties with legitimate rights of access.

 

D13.2.2. Revenue model. A full description of the revenue model, including rates to be charged for various services.

Our revenue model is based on the following assumptions:

 

Fees for services:

 

iDomains will charge a rate of US$5.45 per year of registration for each domain name registered in the registry.  All registrations fees must be paid in advance by registrars.  Upon the registration of names in the registry by a registrar, such registrar’s account with iDomains will be debited the appropriate amount. 

 

iDomains anticipates charging reasonable fees for certain ancillary services described above, such as subscription based whois search access, third-level domains (other than the initial free domain name), domain monitoring services and service history reports.  All such services would be available for sale to registrars, who would be authorized to resell the services to their customers.

 

Finally, bulk whois data would be available to the registrars for resale to their customers.  iDomains plans on charging up to $5,000 per year for such bulk access.  Fees collected by iDomains for provision of bulk whois service will be used to fund cooperative marketing projects designed to increase the .BIZ brand, and thus increase business for registrars, as well as the registry.

 

D13.2.3. Market. Market definition, size, demand, accessibility.

The remarkable growth of the Internet in recent years shows no signs of abating. According to Nua Internet Surveys, http://www.nua.ie/surveys/, “During the past year Internet access has grown significantly in all regions of the world, rising from 171 million people in March 1999 to 304 million in March 2000, an increase of 78 percent”.

 

According to a report prepared for the US Commerce Department E-Commerce Summit (6/23/2000) “Today there are in excess of 1 Billion pages on-line with over 3 million pages being added each day.  Consumers today--wherever they are in the world--go online to shop, learn about different products and providers, search for jobs, manage their finances, obtain health information and scan their hometown newspapers.”  While many of these activities are not captured by official output and productivity measures, a growing body of anecdotal evidence suggests that the Internet, with all of its benefits, is improving many people's lives.

 

 

 

E-Commerce and Internet Commerce Impact

 

US Market

 

The Internet is growing rapidly: by 2004, U.S. – Based business online consumer sales will grow to $184 billion, online business sales to $2.7 trillion

 

  (Source; US Commerce Dept. www.ecommerce.gov)

 

“B2B e-commerce in the US alone is set to become a USD4.8 trillion market by 2004, up from USD1.2 trillion in 2000”, according to the latest report from the Boston Consulting Group. “By 2004, Internet purchasing in the b2b sector will represent 40 percent of total purchasing.”

 

According to US Census Bureau Reports “Retail US e-commerce businesses recorded  $5.15 Billion in sales in the second quarter of Year 2000 which represents a 5.3% increase over the first quarter 2000.”

 

Europe

 

According to a recent NOP Research group survey (http://www.nop.co.uk/survey/survey_internet.htm) In the 4 weeks ended September 11, 2000, 3.3 million online shoppers in the UK shopped over the Internet 10.11 million times and made 18.2 million purchases.

The survey also found that most online shoppers used credit cards confidently. Credit and debit card details were submitted online by 90 percent of online shoppers.

 

In other European venues this ever-increasing trend continues as well. A Recent Jupiter Communications survey indicates that online revenues are expected to grow in Sweden from ECU0.6 billion (USD 0.511 billion) in 2000 to ECU 2.8 billion (USD2.38 billion) by 2005.  The projected growth in Denmark will be from ECU0.2 billion (USD0.17 billion) to ECU1.4 billion (USD1.19 billion), and in Norway from ECU0.2 billion to ECU1.3 billion (USD1.12 billion).  Excerpted from US Commerce Department Small Business 2000 report)

 

Other European communities are enjoying comparable success rates to those shown above.

 

Asia & The Pacific Rim

 

On the Pacific Rim, according to a recent Deloitte & Touche Pacific Rim Internet survey summary (www.deloitte.com.au): “The survey found that China had 16.9 million Internet users, behind Japan, with 27 million users, and ahead of South Korea with 15.3 million users and Australia, 7.3 million. 

 

China was expected to double its number of users every six months, given that its present number constitutes only 1.3% of its total population of 1.275 billion people. Such a continued rate of growth could lead China to boasting the world’s biggest online population within 10 years.”

 

The nation ranks 12th among international domain registering countries. Registrations in the first 6 months of 2000 are up nearly 26% from the last 6 months of 1999.

The Deloitte survey estimated that total electronic commerce revenues in Asia for 1999 ranged between $6 billion and $8 billion, of which around 80% was in the business-to-business space,”

 

The same survey concluded that total revenues from electronic commerce in the region are expected to grow to between $250 billion to $300 billion by 2003, of which around 90% will be in business-to-business.”

 

According to NSI Statistics (www.dotcom.com/facts/asia_pacific.html):

Japan currently has 12 million active Internet users. The nation ranks 8th among international registering countries. Domain registrations in the first 6 months of 2000 are up nearly 115% from the last 6 months of 1999.

 

Korea currently has 1 million active Internet users. The nation ranks 5th among international registering countries. Domain registrations in the first 6 months of 2000 are up nearly 169% from the last 6 months of 1999.

 

India currently has ½ million active Inte