The Registrar Accreditation Agreement should be changed to allow ICANN to step in sooner.
During the months-long saga over Epik, many people have asked, “Where’s ICANN?”
The visible troubles at ICANN began last year with the company failing to pay domain sellers for aftermarket transactions and failing to pay out Masterbucks balances. ICANN plays no role in the aftermarket, and it could do nothing about this. However, it was a red flag that the registrar was in financial distress, and ICANN should have started paying closer attention to the registrar.
But then complaints started about the registrar failing to renew domains when someone paid for renewals. We now know this was because the registrar was behind on payments to registries.
Non-renewal of domains by registrars is something ICANN gets involved with. But in a recap about what it has been doing about Epik that ICANN published Friday, the organization noted that this situation doesn’t necessarily violate the Registrar Accreditation Agreement (RAA). It only violates the RAA if the domain has expired and the registrant is at risk of losing the domain:
In almost 70 percent of the complaints received, the gTLD domain names were not yet expired. Therefore, Epik had not yet violated RAA or ERRP requirements by not renewing them.
This caught me off guard. According to the RAA, a domain name registrar doesn’t have to renew your domain immediately upon receiving your payment for renewal. As long as it does so before the domain expires, it complies with the RAA. I think this should be changed. Domains should be renewed immediately, if not within 24 hours or so.
ICANN says it has been monitoring the situation at Epik and ensuring the registrar was escrowing ownership data, which would be critical if the registrar shut down.
Next up in the ICANN process is approval or denial of the change of control of the registrar. A company with unknown backers stepped in to buy the company at the last minute. But we don’t know anything about the buyers.
Bruce J Tedeschi says
I paid for ten domains after expy. A week later I paid again thinking I did not pay the first time. Only to find out they knowingly were taking my money with no intention to renew. I had to move them away to save them. They refused to refund my $200. I’ll never see it now. The high point Rob monster gave a crap about domainers. Glad to see him back to save epik.
Bruce J Tedeschi says
If there is any confusion, my frustration with my story was under Bryce’s management. I have confidence in Rob’s management and I’m glad he is back to build a better epik.
Andrew Allemann says
Rob is CEO of the holding company for the assets other than the registrar, not the registrar itself
Brad Mugford says
While that might be true, there is no confirmation of that.
The ownership and executives of “new” Epik are not clear.
The CEO is not known.
Brad
Brad Mugford says
Do you realize the $327,000 escrow transaction in the RICO lawsuit was from May 2022?
Rob Monster was CEO then.
Rob was replaced as CEO in early September 2022.
In those months the domain was not transferred and money was not returned to the buyer.
Brad
Jose says
Andrew, you write in your post this about ICANN…… the possibility of the registrar shutting down.
Does this possibility still exist?
Andrew Allemann says
It shouldn’t be a risk anymore (at least for now). But I wouldn’t trust a registrar if I didn’t know who owned it, so I wouldn’t personally keep my names there.
Jose says
Thanks for your response, quick to transfer domains.
Brad Mugford says
“Old” Epik is selling their assets to “New” Epik, a week old Wyoming company shrouded in secrecy.
At the same time they are trying to leave their liabilities to customers behind.
ICANN has to sign off on the assignment of accreditation. I don’t believe it has ever happened while a company is in breach.
“The RAA includes a process that permits an ICANN-accredited registrar (“Transferor”) to seek ICANN’s approval to transfer (assign) its accreditation to another entity (“Transferee”) that wishes to become an accredited registrar. The assignment process is distinct from a registrar purchase, which occurs when a new owner purchases or otherwise acquires an entire registrar entity (such as by purchase of the stock in a corporation). Registrars may use the following procedures to request ICANN’s approval of a transfer of accreditation.”
This deal is designed to only benefit certain creditors. This language might come into play –
5.5 Termination of Agreement by ICANN. This Agreement may be terminated before its expiration by ICANN in any of the following circumstances:
…
5.5.8 (i) Registrar makes an assignment for the benefit of creditors or similar act;