Significance of domain names for business in the USA / Význam doménových jmen pro podnikání v USA

Robert K. MacGregor

Metropolitní univerzita Praha, o.p.s.

USA- Origin of the Internet and domain name system (DNS)- Location of the global Internet DNS coordinator, ICANN- Most domain names are under USA „control“ and in USA „ownership“

BUT !!!-USA government and ICANN are under pressure- changing scenery- new gTLDs- Internet content issues – Edward Snowden, etc.…

Metropolitní univerzita Praha, o.p.s.

USA – English on the Internet in 2014

-English language has a 56% share of the total language used on the Internet web pages, followed by 6% Russian, 6% German, 5% Japanese 4.6% Spanish, and 4 % French, with Czech ranking 16th at 0.7%.

Metropolitní univerzita Praha, o.p.s.

Business

While using domain names (USA Registrants), e.g. bikes

With selling/administrating domain names (USA Registries, Registrars and Registrants) – e.g., VeriSign as the registry for .com….

Metropolitní univerzita Praha, o.p.s.

Significance of domain names for business in the EU / Význam doménových jmen pro podnikání v EU

Radka MacGregor Pelikánová

Metropolitní univerzita Praha, o.p.s.

Business with domain names – VeriSign

For more than 15 years, VeriSign

- has operated the infrastructure for a portfolio of top-level domains that today includes .com, .net, .tv, .edu, .gov, .jobs, .name and .cc, as well as two-of the world's 13 Internet root servers, a.root-servers.net and j.root-servers.net (A and J), are considered national IT assets by the U.S. Federal Government

Metropolitní univerzita Praha, o.p.s.

Business with domain names – VeriSign At-A-Glance

https://investor.verisign.com/factsheet.cfmFounded in 1995NASDAQ: VRSNCEO: Jim BidzosVerisign is part of the Standard and Poor’s 500 index.Business Units: Domain Name Services and Network Intelligence & AvailabilityHeadquartered in Reston, VA2012 Revenues: $874 millionApproximately 1,100 employees globallyAdditional locations in Delaware, California, Switzerland, India, England and Australia 

Metropolitní univerzita Praha, o.p.s.

Business with domain names - Verisign - Recent News Releases06-FEB-14 Verisign Reports 10 Percent Year-Over-Year Revenue Growth in 2013 02-JAN-14 Verisign Reports 9 Percent Year-Over-Year Revenue Growth in Third Quarter 2013 25-JUL-13 Verisign Reports 12 Percent Year-Over-Year Revenue Growth in Second Quarter 2013

http://www.verisigninc.com/en_US/internet-technology-news/verisign-press-releases/index.xhtml

https://investor.verisign.com/releasedetail.cfm?ReleaseID=824004Metropolitní univerzita Praha, o.p.s.

Business with domain names -VeriSign - Recent News Releases 06-FEB-14 Verisign Reports 10 Percent Year-Over-Year Revenue Growth in 2013 RESTON, VA -- (Marketwired) -- 02/06/14 -- VeriSign, Inc. (NASDAQ: VRSN), - financial results for the fourth quarter of 2013 and the year ended Dec. 31, 2013."2013 was a strong year for the company capped by solid performance across several metrics. We recorded double digit revenue growth, increased cash flows, expanded margins, and returned over $1 billion to shareholders in share repurchases while continuing to provide uninterrupted availability of the .com and .net domain name system (DNS) for over 16 years. We look forward to 2014 from a strong position,“ Jim Bidzos, executive chairman, president and CEO.

Metropolitní univerzita Praha, o.p.s.

Business with domain names -VeriSign - Recent News Releases 06-FEB-14 Verisign Reports 10 Percent Year-Over-Year Revenue Growth in 2013

Fourth Quarter GAAP Financial ResultsVeriSign, Inc. and subsidiaries ("Verisign") reported revenue of $246 million for the fourth quarter of 2013, up 7 percent from the same quarter in 2012. The operating margin was 53.0 percent for the fourth quarter of 2013 compared to 58.8 percent for the same quarter in 2012. Verisign reported net income of $292 million and diluted earnings per share (EPS) of $1.94 for the fourth quarter of 2013, compared to net income of $106 million and diluted EPS of $0.65 in the same quarter in 2012.

Metropolitní univerzita Praha, o.p.s.

Business with domain names -VeriSign - Recent News Releases 06-FEB-14 Verisign Reports 10 Percent Year-Over-Year Revenue Growth in 2013

Fourth Quarter GAAP Financial Results - HighlightsVerisign ended the fourth quarter with cash, cash equivalents and marketable securities of $1.7 billion, an increase of $167 million from year-end 2012.Cash flow from operations was $147 million for the fourth quarter of 2013 and $579 million for the full year 2013, compared with $171 million for the same quarter in 2012 and $538 million for the full year 2012.…

Metropolitní univerzita Praha, o.p.s.

Business with domain names -VeriSign - Recent News Releases 06-FEB-14 Verisign Reports 10 Percent Year-Over-Year Revenue Growth in 2013

Fourth Quarter GAAP Financial Results - Highlights..Deferred revenues on Dec. 31, 2013, totaled $856 million, an increase of $43 million from year-end 2012.Capital expenditures were $15 million in the fourth quarter and $66 million for the full year.During the fourth quarter, Verisign repurchased 4.1 million shares of its common stock for $225 million. During the full year 2013, Verisign repurchased 21 million shares of its common stock for$1 billion.

Metropolitní univerzita Praha, o.p.s.

Business with domain names -VeriSign - BUT !!!VeriSign Profiting From .Com Slows Addition of New Names By Todd Shields, 2013 The biggest expansion of Internet addresses is being delayed as VeriSign Inc. (VRSN), which gets most of its revenue from managing .com websites, argues with competitors over whether corporate networks could be disrupted. The ICANN has proposed holding on to new names to the right of the dot, known as domains, for up to 10 months after listening to security warnings from VeriSign and its own advisory panel.

http://www.bloomberg.com/news/2013-08-21/verisign-profiting-from-com-slows-addition-of-new-names.html

Metropolitní univerzita Praha, o.p.s.

Business with domain names - VeriSign - BUT !!!VeriSign Profiting From .Com Slows Addition of New Names By Todd Shields, 2013 Some companies that bid for domains (new gTLDs) such as .blog, .mail and .corp say that the security issues are a ruse by VeriSign to protect its management of 121 million .com and .net addresses. “This is an odd thing, at the eleventh hour and 59th minute of a 10-year program, to suddenly say, ‘Stuff’s going to break,’” said Richard Tindal, chief operating officer of Web-registry Donuts Inc., which applied for 307 domain names.

http://www.bloomberg.com/news/2013-08-21/verisign-profiting-from-com-slows-addition-of-new-names.html

Metropolitní univerzita Praha, o.p.s.

Business with domain names - VeriSign - BUT !!!VeriSign Profiting From .Com Slows Addition of New Names By Todd Shields, 2013 “They’ve made a corporate decision to try to limit competition by trying either to slow down or stop this program,” said Tindal, whose closely held company is based in Bellevue, Washington. Icann’s proposed Web expansion, which has been in progress for 13 years, could add more than 1,300 new so-called domains to an Internet with about two dozen today. A domain name can spawn millions of website addresses, which are sold and managed by companies including VeriSign.

http://www.bloomberg.com/news/2013-08-21/verisign-profiting-from-com-slows-addition-of-new-names.html

Metropolitní univerzita Praha, o.p.s.

Business with domain names - VeriSign - BUT !!!VeriSign Profiting From .Com Slows Addition of New Names By Todd Shields, July, 2013 VeriSign’s stance is important because of its role as midwife at the birth of new names. Under an agreement with the U.S. government, VeriSign performs the technical task of entering new address names into a central Internet directory. The new domains could clash with longstanding naming conventions used by corporate systems administrators that place terms such as .corp, .home and .mail in file names in internal networks, said Nao Matsukata, chief executive officer of Fairwinds Partners LLC, a Washington-based Internet consultant.

http://www.bloomberg.com/news/2013-08-21/verisign-profiting-from-com-slows-addition-of-new-names.html

Metropolitní univerzita Praha, o.p.s.

Metropolitní univerzita Praha, o.p.s.

Business with domain names - VeriSign - BUT !!!VeriSign Drops on U.S. Plan to Give Up Web-Address Control By Ian King, 2014 VeriSign Inc (VRSN), which manages a directory of Internet addresses, fell the most since November 2012 amid concern that its business may be hurt by a U.S. plan to shift control of the system for assigning website addresses. The stock dropped 5.8 percent to $51.68 at the close in New York, leaving it down 14 percent this year. Earlier, the shares slid as much as 11 percent.

http://www.bloomberg.com/news/2014-03-17/verisign-drops-on-u-s-plan-to-give-up-internet-address-control.html

Metropolitní univerzita Praha, o.p.s.

Business with domain names - VeriSign - BUT !!!VeriSign Drops on U.S. Plan to Give Up Web-Address Control By Ian King, 2014 The U.S. government on March 14 said it would fulfill a pledge it made as far back as 1998 to relinquish control of the Internet’s domain-name system. Gregg Moskowitz, an analyst at Cowen & Co., said the change in control and oversight increases the risk that VeriSign may not be able to renew its contracts in their current form to maintain the dot-com and dot-net registries.

http://www.bloomberg.com/news/2014-03-17/verisign-drops-on-u-s-plan-to-give-up-internet-address-control.html

Metropolitní univerzita Praha, o.p.s.

Business with domain names - VeriSign - BUT !!!VeriSign Drops on U.S. Plan to Give Up Web-Address Control By Ian King, 2014“With the introduction of oversight uncertainty, and multiple stakeholders, we potentially could in a few years’ time see a less favorable outcome than present upon time of renewal,” Moskowitz wrote in a note today. He reduced his rating on the stock to the equivalent of hold from buy, while saying it’s unlikely that VeriSign will lose the dot-com contract when it comes up for renewal in 2018.

http://www.bloomberg.com/news/2014-03-17/verisign-drops-on-u-s-plan-to-give-up-internet-address-control.html

Metropolitní univerzita Praha, o.p.s.

Metropolitní univerzita Praha, o.p.s.

Business through and with domain names in the USA

Quo vadis?Discussion

Metropolitní univerzita Praha, o.p.s.

Thank you for your attention!

Děkuji Vám za pozornost!

Metropolitní univerzita Praha, o.p.s.