ICANN RESPONDS TO HOUSE COMMERCE COMMITTEE QUESTIONS
July 9, 1999 - Marina del Rey, Calif. The Internet Corporation for
Assigned Names and Numbers (ICANN), the global, consensus-based organization
which oversees the Domain Names System, responded today to questions
contained in a letter sent on June 22 from Representative Tom Bliley (R-VA),
Chairman of the House Commerce Committee, to Esther Dyson, ICANN's Interim
Chairman.
Since entering into a Memorandum of Understanding with the Department of
Commerce in November 1998, ICANN has been responsible for formulating and
overseeing the transition of the Domain Names System (DNS) from a mostly
Government-underwritten monopoly to an open, competitive, privatized
environment.
"We're happy to further explain ICANN's progress to the Commerce Committee.
As a global, consensus-based organization, ICANN needs the participation and
support of everyone interested in the keeping the Internet the vibrant and
open environment that it is today," said Esther Dyson, ICANN's Interim
Chairman.
"ICANN hopes that the Committee's efforts to inform itself and the general
public will increase the understanding of the somewhat obscure but important
tasks that ICANN has before it. ICANN's work is aimed at making sure
Internet users enjoy and benefit from a stable and more competitive DNS
environment. ICANN will continue working towards that goal with the help of
the entire Internet community," she added.
"ICANN's only authority is derived directly from the consensus of all those
organizations, consumers and businesses who make the Internet possible and
take an active interest in using, enjoying and doing business on the
Internet," noted Dyson. "Only by soliciting opinions and opening our
decisions to public scrutiny and input has ICANN been able to reflect the
will of the Internet community. We implement through consensus policies and
contracts - with the U.S. Government, domain name registrars and other
players in the Internet's infrastructure - not by fiat," explained Dyson.
For details of ICANN's response to Chairman Bliley's letter, please see the
attached summary. The complete response will be available on the ICANN Web
site (www.icann.org) on Friday, July 9.
About ICANN:
The Internet Corporation for Assigned Names and Numbers (ICANN) is the new
non-profit corporation that was formed to take over responsibility for the
IP address space allocation, protocol parameter assignment, domain name
system management, and root server system management functions historically
performed under U.S. Government contract by IANA and other entities.
Contacts:
Joe Sheffo
Alexander Ogilvy PR
415-923-1660
[EMAIL PROTECTED]
SUMMARY OF ICANN RESPONSE TO HOUSE COMMERCE COMMITTEE LETTER
In his June 22 letter to Esther Dyson, the Interim Chairman of the Internet
Corporation for Assigned Names and Numbers ("ICANN"), Representative Tom
Bliley (R-VA), Chairman of the House Commerce Committee raised a number of
points, seeking clarification on the progress ICANN has made towards its
goals and the administrative form it has taken. The following is a summary
of the issues he raised and ICANN's responses.
Why is ICANN asking registrars to pay a $1.00 fee per domain name
registration?
Following the Memorandum of Understanding entered into in November 1998 with
the Department of Commerce, ICANN-a non-profit organization-was charged with
overseeing the transition of the Domain Names System from a
Government-underwritten monopoly to an open, competitive environment. ICANN
was required to accredit new registrars who sought to provide domain name
services to the public, and has now accredited 57 new registrars. Once
competition is fully introduced, the cost to consumers of domain name
registrations and renewals will likely be significantly reduced.
Until now, ICANN has relied on private donations from individuals and
companies, but that financing method is obviously not a viable long-term
approach. As part of the contractual arrangement with the competitive
registrars, they agreed to pay a volume-based fee designed to partially
recover ICANN's costs. This structure, which was arrived at after extensive
public notice and comment, was thought to be the most equitable method for
shared cost recovery available to ICANN at this time. Obviously, if some
other method is suggested that would be both effective and equitable, it
would receive serious attention from the Internet community.
What is ICANN's authority to terminate Network Solutions (NSI) as a domain
name registrar?
ICANN has no statutory or regulatory "authority" of any kind. It has only
the power of the consensus that it represents, and the willingness of
members of the Internet community to participate in and abide by the
consensus development process that is at the heart of ICANN. Thus, it has
not asserted any right to "terminate" NSI as a registrar. However, in its
October 1998 agreement with the Department of Commerce, NSI agreed that,
once a competitive registrar system was introduced, only accredited
registrars would be permitted to provide domain name services to the public.
Thus, if NSI becomes an accredited registrar, it will continue to be able to
offer domain name services; if it refuses to become accredited, as it has to
date, its agreement with the US Government will prohibit it from offering
domain name services.
If NSI does apply for accreditation from ICANN, ICANN is committed by its
bylaws and the Memorandum of Understanding entered into with the US
Government to treat such an application in the same manner as it would any
other application. IF NSI meets the standards that have been met by the 57
accredited registrars, it will also be accredited.
What is ICANN's authority to retain intellectual property rights over
registrar data?
ICANN has not sought to retain intellectual property rights over registrar
data. ICANN's Statement of Registrar Accreditation Policy (adopted on March
4, 1999 after extensive public comment) provides that ownership of
intellectual property rights in registrar data, to the extent those rights
exist under law, is not retained by ICANN, but instead may be claimed by the
registrars themselves. This treatment of intellectual property is reflected
in the provisions of the accreditation agreements ICANN has entered, and
stands ready to enter, with all accredited registrars.
Who drafted ICANN's "Transition Budget for Fiscal Year 1999-2000" and how
was it formulated?
The budget was prepared following the process outlined in ICANN's bylaws,
which provides that ICANN's President will propose a budget to the Board for
its approval. The budget was posted for public comment prior to the ICANN
meetings in Berlin, and was described in detail at ICANN's public meeting on
May 26, which was also webcast to a global Internet audience.
The budget is designed to enable ICANN to have the resources needed to
complete the activities and tasks outlined for the organization by the
Department of Commerce White Paper which led to ICANN's formation and the
subsequent Memorandum of Understanding. These activities and tasks include:
* completing ICANN organizational arrangements;
* completing contractual arrangements with registry-administrators,
continuing accreditation of registrars for the .com, .net and .org domains;
* study, recommendations and implementation of policy decisions
concerning domain names and trademarks resulting from the WIPO study;
* study, recommendations and implementation of policy decisions
concerning expansion of the Top Level Domain (TLD) name space;
* study, recommendations and implementation of updated arrangements
for Internet root servers; and
* review and adoption, after public comment and possible revision, of
recommendations received from ICANN Support Organizations and Committees.
Are any ICANN Interim board members compensated by ICANN?
None of the original Interim Board Members are compensated by ICANN. In
fact, since ICANN's revenues to date have been far short of ICANN's actual
expenses, the Interim Board members have forgone almost all expense
reimbursement in order to leave ICANN's limited funds to pay employees and
outside vendors.
Under the ICANN bylaws, the President and Chief Executive Officer of the
Corporation is an ex officio member of the Board. Interim President and CEO,
Michael M. Roberts, sits on the Interim Board. ICANN has contracted with The
Darwin Group, INC, of which Mr. Roberts is a principal, for the full-time
services of Mr. Roberts and for support of the Office of the ICANN Interim
President/CEO on a month-to-month basis, at the rate of $18,000 per month.
How were Interim board members chosen and when and how will ICANN's Interim
board will be replaced by an elected board?
Simultaneously with the effort to develop a consensus organization, the
entire Internet community was invited to propose people who would be
suitable as Interim Board members. A number of people who seemed to be
attractive candidates were approached and declined to be considered; others
who were recommended seemed inappropriate for a variety of reasons. After
considerable discussion, the current roster of Interim Board members was
finally reached, after considering all the advice and recommendations
received and coming to a judgment that this group of individuals was likely
to receive consensus support from the Internet community.
The ICANN bylaws provide that its Board will consist of 19 members, from
five different sources:
* nine At Large directors elected by a membership that is in the
process of being created;
* three each from each of the three Supporting Organizations; and
* the President and CEO of ICANN, sitting ex officio.
For the necessary elections to take place, the constituent bodies must be in
existence and functioning, and most of ICANN's efforts to date have been
aimed at helping to facilitate the establishment of these organizations.
ICANN currently hopes (and expects) that all of the nine Directors elected
by the Supporting Organizations will be in place before the first annual
meeting of ICANN on November 2-4, 1999, in Los Angeles. If this in fact
takes place, half of ICANN's Board at that time will consist of Directors
elected by constituent bodies of ICANN. The other half of the elected
Board, which represents the At Large Directors, is currently expected to be
in place no later than (and hopefully before) the second annual meeting of
ICANN, which will take place in the fall of 2000. Pursuant to the White
Paper and the MOU, the transition process is scheduled to be completed no
later than October 1, 2000, and the Initial Directors must all have ended
their service by that time.
Why is the general public not granted access to every portion of ICANN's
proceedings?
All of the results of the ICANN decision-making process, and much of the
actual decision-making, are fully accessible to the general public. No
matter can be considered by the Board without prior public notice and
consideration of public comments. The Board has divided meetings into a
public discussion of the Board agenda, with the opportunity for public
comment and Board interaction; a subsequent private Board discussion of
those same agenda items; and a public press conference, open to all, where
the Board explains its decisions and answers questions.
The Internet community, amongst whom ICANN is charged with developing
consensus, has shown widespread acceptance of the need for ICANN's Board and
staff to engage in non-public conversations, in order to make progress. Any
actions taken on those occasions are immediately made public, along with the
underlying rationale for the decision.
Why has ICANN only sought authority solely over generic Top Level Domains
("TLDs"), and not over country code TLDs?
ICANN has made no such decision. In fact, outside of various preliminary
discussions with NSI that have not proven fruitful, ICANN has not engaged in
any meaningful discussions or negotiations with any TLD registries, whether
gTLDs or ccTLDs. The only actions that ICANN has undertaken to date are
those which are specified in the White Paper and the MOU, and specifically
those designed to introduce and facilitate competition for registration
services in the .com, .net and .org domains, which are by far the most
significant commercial domains.
