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Verisign released its 2018 annual report and hike in .com prices

On Friday .Com registry Verisign (NASDAQ: VRSN) released its 2018’s annual report.

On 2018 Verisign and U.S. Department of commerce both agreed to Amendment 35 of their Cooperative Agreement. According to Amendment 35, the ban was lifted on price increases in .com that was in place since the 2012 contract renewal with ICANN. According to the amendment it allows ICANN and Verisign to enter into a contract. The contract that would allow Verisign to raise .com the price by 7%. Done each of the last four of each six years of the contract.

Verisign nevertheless needs ICANN’s approval to make this take place. To date evidently, Verisign is making two arguments to push this alongside.

One is ICANN has previously delayed to the U.S. Department of Commerce on .com pricing. And the next to be the anticipation of the renewal of contract from its 2016 prices changing and ICANN should approve it.

Verisign’s 10-K quote:

“Following the extension of the .com Registry Agreement on October 20, 2016, the .com Registry Agreement provides that we will continue to be the sole registry operator for domain names in the .com gTLD through November 30, 2024. As part of the extension of the .com Registry Agreement, the Company and ICANN agreed to cooperate and negotiate in good faith to amend the terms of the .com Registry Agreement: (i) by October 20, 2018, to preserve and enhance the security and stability of the internet or the .com TLD, and (ii) as may be necessary for consistency with changes to, or the termination or expiration of, the Cooperative Agreement. ICANN and Verisign are engaged in discussions related to these obligations, including modifying the .com Registry Agreement based on changes to the Cooperative Agreement arising from Amendment 35.”

Here obligation term is used to allow the argument from Verisign to ICANN to allow to raise the rates according to Amendment 35.

Amendment 35 states:

“Without further approval by the Department, at any time following the Effective Date of this Amendment 35, Verisign and ICANN may agree to amend Section 7.3(d)(i) (Maximum Price) of the .com Registry Agreement to permit Verisign in each of the last four years of every six-year period, beginning two years from the Effective Date of this Amendment 35 (i.e., on or after the anniversary of the Effective Date of this Amendment 35 in 2020-2023, 2026-2029, and so on) to increase the Maximum Price charged by Verisign for each yearly registration or renewal of a .com domain name up to seven percent over the highest Maximum Price charged in the previous calendar year.”

Verisign might be pushing ICANN on the idea of rising rates but nothing is to be stated for sure.

About the author

Pooja Mukherjee

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