Thursday, August 30, 2007

How Reverse DNS Works

Reverse DNS turns an IP address into a hostname -- for example, it might turn 192.0.2.25 into host.example.com.


For your domains, standard DNS (turning a hostname into an IP address, such turning host.example.com into 192.0.2.25) starts with the company (registrar) that you registered your domains with. You let them know what DNS servers are responsible for your domain names, and the registrar sends this information to the root servers (technically, the parent servers for your TLD). Then, anyone in the world can access your domains, and you can send them to any IP addresses you want. You have full control over your domains, and can send people to any IPs (whether or not you have control over those IPs, although you should have permission to send them to IPs that are not yours).

Reverse DNS works in a similar method. For your IPs, reverse DNS (turning 192.0.2.25 back into host.example.com) starts with your ISP (or whoever told you what your IP addresses are). You let them know what DNS servers are responsible for the reverse DNS entries for your IPs (or, they can enter the reverse DNS entries on their DNS servers), and your ISP gives this information out when their DNS servers get queried for your reverse DNS entries. Then, anyone in the world can look up the reverse DNS entries for your IPs, and you can return any hostnames you want (whether or not you have control over those domains, although you should have permission to point them to hostnames that are not on your domains).

So for both standard DNS and reverse DNS, there are two steps: [1] You need DNS servers, and [2] You need to tell the right company (your registrar for standard DNS lookups, or your ISP for reverse DNS lookups) where your DNS servers are located. Without Step 2, nobody will be able to reach your DNS servers.

If you can comprehend the above paragraphs (which takes some time), you'll understand the biggest problem that people have with reverse DNS entries. The biggest problem people have is that they have DNS servers that work fine with their domains (standard DNS), they add reverse DNS entries to those servers, and it doesn't work. If you understand the above paragraphs, you'll see the problem: If your ISP doesn't know that you have DNS servers to handle the reverse DNS for your IPs, they won't send that information to the root servers, and nobody will even get to your DNS servers for reverse DNS looksups.

Basic Concepts:

· Reverse DNS turns 192.0.2.25 into host.example.com (an IP address into a host name).

· Typical reverse DNS lookup path: DNS resolver => root servers => ARIN (North American IP registry) => Local ISP => Acme Inc. DNS servers.

· Whoever supplies your IP addresses (usually your ISP) MUST either [1] set up your reverse DNS entries on their DNS servers, or [2] "delegate authority" for your reverse DNS entries to your DNS servers.

· Reverse DNS entries use a host name with a reversed IP address with ".in-addr.arpa" added to it -- for example, "25.2.0.192.in-addr.arpa" (".ip6.arpa" is used for IPv6 reverse DNS lookups).

· Reverse DNS entries are set up with PTR records (whereas standard DNS uses A records), which look like "25.2.0.192.in-addr.arpa. PTR host.example.com" (whereas standard DNS would look like "host.example.com. A 192.0.2.25").

· All Internet hosts should have a reverse DNS entry (see RFC1912 section 2.1).

· Mail servers with no reverse DNS will have a hard time getting mail to certain large ISPs.

Very Common Myth:

· Myth: If you have a reverse DNS entry listed in your DNS server, you have reverse DNS properly set up.

Fact: This is often not the case. You need TWO things in order to have your DNS set up properly:

o 1. Your DNS servers (or your ISP's) MUST have the reverse DNS entries set up ("25.2.0.192.in-addr.arpa. PTR host.example.com").

o 2. AND your ISP or bandwidth provider MUST set up the reverse DNS on their end, so that DNS resolvers around the world will know that your DNS servers are the ones to go to when looking up the reverse DNS for your IP addresses.
How a reverse DNS lookup is accomplished:

· The DNS resolver reverses the IP, and adds it to ".in-addr.arpa" (or ".ip6.arpa" for IPv6 lookups), turning 192.0.2.25 into 25.2.0.192.in-addr.arpa.

· The DNS resolver then looks up the PTR record for 25.2.0.192.in-addr.arpa.

o The DNS resolver checks asks the root servers for the PTR record for 25.2.0.192.in-addr.arpa.

o The root servers refer the DNS resolver to the DNS servers in charge of the Class A range (192.in-addr.arpa, which covers all IPs that begin with 192).

o In almost all cases, the root servers will refer the DNS resolver to a "RIR" ("Regional Internet Registry"). These are the organizations that allocate IPs. In general, ARIN handles North American IPs, APNIC handles Asian-Pacific IPs, and RIPE handles European IPs.

o The DNS resolver will ask the ARIN DNS servers for the PTR record for 25.2.0.192.in-addr.arpa.

o The ARIN DNS servers will refer the DNS resolver to the DNS servers of the organization that was originally given the IP range. These are usually the DNS servers of your ISP, or their bandwidth provider.

o The DNS resolver will ask the ISP's DNS servers for the PTR record for 25.2.0.192.in-addr.arpa.

o The ISP's DNS servers will refer the DNS resolver to the organization's DNS servers.

o The DNS resolver will ask the organization's DNS servers for the PTR record
for 25.2.0.192.in-addr.arpa.

o The organization's DNS servers will respond with "host.example.com".

More info

Reverse DNS lookup [Wikipedia]

Monday, August 27, 2007

Domain Name Privacy Issue Gets Another Setback

Every CNOBI (Com/Net/Org/Biz/Info) domain name’s contact details must be revealed in a public database called WHOIS. How much information to show has been one of the biggest bones of contention among various parties involved with domain names.

Just today, I read in one of my bookmarks that the WHOIS issue has hit yet another snag.

I just read from the Internet Governance Blog (as the name suggests it’s about internet governance) that the Task Force ICANN requested to explore this issue gave a report recently. You can read it via the link below:

http://gnso.icann.org/drafts/icann-whois-wg-report-final-1-9.pdf

It’s a rather long read. But basically the latest in there is exploring the possibility of creating a Point Of Contact (POC) to handle such things.

There are at least 2 sides of this. One are the privacy advocates, the other are the intellectual property and law enforcement groups wanting full ID disclosure.

Needless to say, both have merits. I’ve read both sides and I fully understand their concerns, although I certainly wish both sides come to agreement at the soonest possible time.

From what I read in the Internet Governance Blog’s entry on the subject, it’s been tackled for about 7 years! Unfortunately that entry indicates it still hasn’t been resolved and won’t be anytime soon.

So for now, things will remain what they are.

Domain Names And Trademarks Explained

Have you ever gotten an email or a letter in the mail that went like, “your domain name’s infringing our trademark. Hand it over or else.”?

Well, not in those exact words. But will you be disturbed at seeing such?

I won’t be surprised if you do. Not too many are really aware of this sort of thing, nor do they know how often this happens.

So today, I’m going to touch on exactly what the title says: I’ll explain a few things about domain names and trademarks.

But before I go on, the usual I’m-not-a-lawyer-and-this-is-not-legal-advice disclaimer still applies. Sorry about that, but it can’t be helped there are some people who just don’t seem to “get it”.

With that aside, first things first. What exactly is a trademark?

A trademark is a form of intellectual property right. It’s used to distinctly identify who is the source of the goods of one party from others.

Unlike a copyright that seeks to protect an original literary or artistic work, a trademark applies to a word, phrase, symbol or design, or even a combination of any of them. Essentially, it’s supposed to tell you that this product A is made and, more often than not, marketed by producer X.

If you hear or see the word Coca Cola, no doubt you’ll be thinking of the softdrink and its manufacturer. If you hear or see the word Microsoft, it’ll of course be referring to the software giant.

Essentially, a trademark tells you “if I see this word on this thing, I know only this guy owns and sells it.” At least, that’s what it’s supposed to tell you.

Trademark rights aren’t really created “overnight”. They’re earned through usage of the term or so in commerce.

So if I use the words Dave Zan to sell widgets (as in I label my widgets Dave Zan for people to plainly see), I’m actually using the words as a trademark. This is just a basic idea, though, and it can get more complex depending on certain factors.

What might surprise you to know (if you haven’t yet) is that a trademark is not required to be registered at all if one can demonstrate what’s called a common law trademark. Although one would have to somehow prove such, a “formal” registration (like one filed at the Unites States Patents and Trademark Office if you’re US-based) that’s eventually granted trademark status otherwise gives more benefits like telling when it was first used and give nationwide constructive notice.

Among the main problems facing trademark holders is what’s called “likelihood of confusion”. If they see someone else selling a product bearing that trademark, the relevant consuming public might confuse that someone as being the owner of that product when he really isn’t.

That somewhat deprives the trademark holder the ability to maximize their commercial success based on their “hard work”. Or worse, a customer might confuse that party selling this product as being or authorized by the same company using their trademark without their permission.

Every trademark holder has the burden of protecting and enforcing their trademark rights. If they fail to consistently protect them, they risk losing it.

And of course, who’d want to lose something so precious after pouring so much into it?

Now what exactly does trademarks have anything to do with domain names?

A lot.

When domain names were first made available to the public in the early ’90s, it so happened that certain parties registered domain names bearing those trademarks. That presented another and more serious challenge for their respective holders.

To make things worse, many of them used those domain names in such a way as to intentionally make money off their trademarks. Major brand holders were especially affected by this.

Back then there were very few options on how to resolve domain name-trademark disputes. What made it tougher was some had to go through court to get definitive answers, spending lots of time, money and effort that could’ve been used more productively elsewhere.

The past couple of years has seen various developments on this very issue. Especially for .com domain names, trademark holders can either file a suit in court under possibly any applicable law they have, or utilize what’s called the Uniform Domain-Name Dispute Resolution Policy (UDRP).

If you read your registrar’s contract, you’ll find the UDRP mentioned and incorporated there. In a nutshell, it says they can take the domain name away from you and transfer it to the trademark holder whether you like it or not.

Now you might be thinking, “Isn’t that rather unfair?”

My usual answer to such questions like that is it depends on what side of the fence you’re on. While it might be unfair to the one on the receiving end, it’s definitely fair to the mark holder because they have to protect and enforce their trademark rights.

One unfortunate reality about this is there are some parties who might be “overreaching”. Some believe only they have absolute exclusivity over this or that term (which trademarks don’t grant), others might think this party is “infringing” their trademark when they’re actually not.

So what can this tell you so far?

Trademark infringement is an inherent risk in domain names. While it’s not a requirement, it never hurts to check if the term is being used as a trademark prior to registering it.

Or if you already have a domain name that’s possibly bearing a party’s trademark, you also risk losing it if someone sees how you’re using it (or even the lack of it) is infringing their trademark rights (if any). It can’t be helped that there are some people who seem fit to dispute your ownership of the domain name, although some are legitimate.

As time goes by, more and more will be revealed about this subject. Given its complexities, it’s just not possible to write everything there is to know and somehow compress it in one single blog entry.

Whatever the case, also be aware of this inherent risk. You never know one day you might suddenly wonder why the domain name’s gone despite not possibly having done anything wrong.

Sudden Surge In Personal Names?

Lately I’ve been reading an online material or two suggesting there’s now a surge in registering personal names as domain names.

Can’t say I blame people for doing such. Registering the domain name is the best and only way to prevent someone else from beating you to it.

Just a few days ago I found this article from MSN:

http://www.msnbc.msn.com/id/20378395/

A small but growing number of parents are getting domain names for their young kids, long before they can do more than peck aimlessly at a keyboard.

It’s not known exactly how many, but the practice is no longer limited to parents in Web design or information technology.


So if you’ve got time, go ahead and register that domain name of your son, your daughter, basically your loved one. Just takes a few minutes, roughly $8-$9 a year, and you can get around to putting up anything for it anytime as long as it’s registered to you.

And as usual, make sure to keep records and put them in a safe place. Might come in handy someday.

Especially if your child’s graduating from high school, it might just make a great graduation gift.

Domain Tasting VS Spying

There is a known problem of people registering domains that you want to register. The searcher thinks someone is spying on them and registering their selection before them. Let me remind everyone that there are 47M active .COM domains as of March 2006 and every year another 10M domains .COM domains get registered on top of that. Keep in mind that the average daily vocabulary spoken in a day is 3000 words. Most people only know about 65,000 words total.

With all that in prospective, here is an amazing fact; 102,000,000 (120M) DOT COM domains have at one point been registered and are currently deleted. There are twice as many domains deleted right now then active. The likely hood that you came up with something unique is not that high. We need to be frank here, other people in the world of 6 billion people may produce the name you thought of before you did. A common technique to is cycling through those 102M domains that have been registered and hold 1 million of those domains active for 4 days, see what happens, then return them do the dead. Versign allows companies to wait up to 5 days before deleting a domain name and the company pays nothing for that.

As a Registrar, they have 5 days to delete a domain name and not get charged. This is to allow a registrar to handle a chargeback or a typo if it is caught early. It also allows a registrar to test their registration services and then delete the domains. In the last year, this ability/right has been abused and now it is mostly used for Domain Tasting. The orginal reason is still valid and writted into a contract so Verisign has not modified the 5 day grace.

No company that we are aware of spies on their own customers. I know it is easy to come to a conclusion based on the evidence you have, but it is staggering to think about how many domains are in a dead state right now and people are cycling through them. This is called Domain Tasting. (New term in the last year, but starting to get more common now). There are currently about 2 million domains a day now getting tasted. Once someone registers it then it becomes public, then deleted, any of those 102M domains can be registered.

Wednesday, August 22, 2007

Business.com Sold for $350 Million

Sunny, business.com sold for $350 million dollars, I was not attributing that value to it. Your statement that it would not sell for $350 million or even $50 million clearly indicates that you have not been following the news in domaining.

Ascribing $350M value to business.com domain name is wrong.

At the time of the purchase, business.com reportedly had an EBITDA of around $15 million/year. For online, growing business valuation is certain multiple of the EBITDA, typically that number is between 15 and 25. In this case, if you take the multiple to be 20, then the value of the domain name is $50M not $350M.

The above analysis has various nuances too; some may argue that the multiple actually includes the value of the domain name. But to say that the domain name business.com is worth $350M is incorrect.

I have bought and sold domain names for clients sans the underlying businesses. The valuation of pure domain name is not an easy task. If the business.com came up as a domain name for sale without the related business, I doubt that it will fetch $50M; $10-$20M, may be; but not $350M or even $50M.

Expensive

And expensive. Five years ago, the duo could get a good name for $10,000. Now the minimum is more like $100,000 -- as the auction proved. The cheapest name they bought at the auction was blogging.com for $135,000. Other names sold for considerably less like irishwhiskey.com ($8,000) and Jewishdeli.com ($9,000).

At the moment, Fischer, Goldberger and Eli are sitting on their names. They've recently turned down million-dollar offers for stocks.com and home.com.

But as white-hot as this business has been, it might not continue to mint millionaires.

"How long will this model last?" Malutta asked. "It's definitely a temporal piece of real estate. As technology evolves, maybe direct navigation will fall off the charts and there goes your property."

GoDaddy

Bob Parsons, CEO and founder of domain registration company GoDaddy.com, says this type of business is fairly straightforward.

"They make their money in two ways," Parsons said. "One way is through the traffic they get and the other is the appreciation of the name."

Parson didn't think there was anything wrong with the practice as long as those involved weren't using names trademarked by others.

"Domain names are becoming 21st century real estate," Parsons said. "Just owning a domain name as an investment, I don't see a problem with that."

Anthony Malutta, a lawyer who specializes in trademark law at a San Francisco law firm, sees fewer trademark infringement cases thanks to improved laws.

"Trademark law involving domain laws is much clearer and much easier to understand," he said. "It's pretty clear that registering a domain name that corresponds to somebody's trademark is actionable. As to generics, they're just hoping to capture traffic. You're just counting on people typing in generic names instead of using a search engine like Google."

Malutta said domainers like Goldberger and Fischer are not "gaming the system" which in his opinion would mean registering domain names and then cybersquatting -- driving revenue off somebody else's trademarked name like Coca-Cola.

Over the years, Goldberger and Fischer have sharpened their formula for acquiring domain names and developing the sites using a fairly simple template, relying on research, savvy and plenty of instinct.

"You either know it or don't by hearing the name," Fischer says.

They look for names that hit the "sweet spot" -- short words that describe a high-value product or services related to it. Words that allow them to own a category such as bald.com and cardiology.com, two of the domain names they bought at the auction.

To help figure out a word's potential value, they see how many hits it will produce using Google. They also troll lists of names with domain registrations set to expire, enabling them to get a jump on buying it.

They don't bother with dot-nets or the others.

"Dot-com is king," Goldberger said. "Dot-net is worthless."

But there's a big divide between thinking of a good name and getting it. There's usually a chase, with Fischer trying to persuade owners to sell the names after he locates the owners unless it's up for auction.

"He's kind of like a rhinoceros," Goldberger says about Fischer. "He chases them up a tree and waits them out. He has patience and determination. You got to be aggressive. It's a tough game now. It's like the gold rush. The first guys did really well then it became more difficult."

The Beginning

He eventually left the respected Philadelphia law firm where he worked in 1997 and joined a small startup in Manhattan called mail.com, which was buying up domain names.

Goldberger began collaborating with Fischer in 2001, building their portfolio of domain names. Together, they became a formidable yet quirky team.

Two years later, they created a company called smartname.com, which they sold earlier this year. The company took names and provided content and links for owners, getting a cut of the advertising revenue. At one point, smartname.com represented 150 owners with about 150,000 domain names, generating 50 million unique visitors a month.

Most the sites are lucrative for their advertising dollars. For example, megayachts.com isn't an actual yachting site, but it contains numerous ads and links for real yacht companies, boats and cruises. The owners of the site get paid each time a viewer clicks on one of those links.

Goldberger and Fischer declined to say how much money they make from pay-per-click advertising.

Prices

One name -- creditcheck.com -- went for $3 million but paled in comparison to the sale of sex.com, which sold for $12 million last year and $350 million for business.com, according to Cahn, who knew the site's buyer and seller.

Fischer, 44, of Brooklyn, New York, and Goldberger, 46, of Cherry Hill, New Jersey, figured there was money to be made early.

Goldberger's entry into the business was unorthodox to say the least. In 1996, the Hearst Corp. sued him, alleging trademark infringement after Goldberger registered esqwire.com, which resembles one of the company's magazines.

The two sides eventually settled and Goldberger, a lawyer, was allowed to keep the name. Word got out that Goldberger knew something about the thorny legal issues involving Internet domain names and people began approaching him for advice.

Goldberger's fascination with the burgeoning industry was sealed.

"I was an entrepreneur strapped into this suit-and-tie job," Goldberger said. "Kind of a square peg in a round whole and this lawsuit just kind of changed everything for me."

Top Ten Most Expensive Domain Names of All time

This summary is not available. Please click here to view the post.

Domaining to be a $4 Billion Industry by 2010

With the recent sell of business.com for $350 million dollars, domaining has solidified itself as the new real estate of the 21st Century. Domaining is the business of buying and selling domains similar to real estate business people buying and selling property. Just recently, during a furious bid, partners Larry Fischer and Ari Goldberger purchased megayachts.com for $150,000.

Inside a midtown hotel, Larry Fischer is on his cell phone with a financial backer as his partner Ari Goldberger does quick research on a laptop computer and were ecstatic at the bargain and its potential value.

Currently, the domaining industry is at an estimated $2billion as people buy and sell domain names similar to stocks and property. When people type the generic names into their Web Browser's address field, many sites that generate pay per click advertising revenue appear. This direct navigation bypasses search engines.

Domainer Magazine's, managing partner, Jerry Nolte stated that the "industry is like the wild, wild West right now and people have no idea how fast it's growing."

Pundits and estimators believe that the industry's market will reach $4 Billion by 2010 as people and businesses continue to purchase about 90,000 domain names every day.

By April of 2007, more than 128 million domain names had been registered worldwide, which is a 31 percent increase over the previous year, according to VeriSign Inc., which runs some of the primary domain name directories for the Internet.