COMPUTERGRAM INTERNATIONAL: JULY 23 1999

+ ICANN, NSI & Others Put Their Case to Congress

By Nick Patience 

Yesterday's hearing into the methods and polices of the 
Internet Corporation for Assigned Names and Numbers (ICANN) was 
not quite the one-sided pro-ICANN festival some in the internet 
community had feared. The House Commerce Committee's 
sub-committee on oversight and investigations spent just over 
three hours examining the current battles over the domain name 
system, which was not really that much time considering it 
heard from 13 witnesses. Question and answer sessions had to be 
cut short or cut out altogether towards the end of the hearing 
and many committee members said they would be submitting 
further questions in writing to the witnesses and expecting 
answers. 

The title of the hearing, "The Domain Name System 
Privatization: Is ICANN Out of Control?" was expected to set 
the tone, and although Network Solutions Inc faced some very 
tough questions, so did the ICANN and Department of Commerce 
officials. It should be remembered that these hearings do not 
happen in a vacuum and the panelists are there for a reason; 
mostly because they, or their organization has lobbied hard for 
the right to have their say. 

The irony is that it was largely NSI's doing that the hearing 
came about because it persuaded conservative lobbying groups to 
push the Commerce Committee to get involved. But such was the 
strength of lobbying by ICANN's supporters that they made up 
the majority of the panelists. NSI's CEO Jim Rutt admitted 
later in the day that the company might have incurred a few 
public relations slip-ups during the hearing. 

One of the key questions was asked by Diana DeGette, a Colorado 
Democrat, when she asked who owns the intellectually property 
of the database of domain registrants. The answers summed up 
the problem facing all those involved, or at least all those 
seeking an agreement. 

Andrew Pincus, general counsel of Commerce's National 
Telecommunications and Information Administration (NTIA), 
speaking on behalf of the associate administrator Becky Burr, 
said it was the government that owned the IP. NSI CEO Jim Rutt 
said it owned the intellectual property and ICANN interim chair 
Esther Dyson said she thought it was "public property" or at 
least it didn't belong to any one company. NSI's argument is 
that the IP gets transferred to it as part of its cooperative 
agreement with the DoC. DeGette, who is a lawyer, pushed Rutt 
for a legal justification of this claim, to which he replied 
that he'd have to get back to the sub-committee at a later 
date. It seems this subject could well end up in the courts, as 
the positions seem fairly intractable at the moment. 

The question of the proposed - but now postponed - $1 per name 
annual fee was also addressed early on in the session, with 
Commerce Committee chair Tom Bliley asking Burr if the NTIA was 
aware of ICANN's decision to demand such a fee. Burr said that 
Commerce had seen the proposed registrar accreditation 
agreement that included the fee and also noted that there were 
not many comments about it during ICANN's comment period - 
apart from long and vociferous comments from NSI. Bliley had 
commented in his opening remarks about the $1 fee and the fact 
that up until now, ICANN has held its board meetings in 
private. He said the fee constituted "an unauthorized tax on 
the America people" and expressed satisfaction that "ICANN 
appears to be backing down on both of these issues." 

ICANN said it will hold its next meeting, in Santiago, Chile 
next month in public and will vote in November on whether to 
conduct the rest of them in that manner. Incidentally, ICANN 
president Mike Roberts was asked why Chile had been chosen - 
some in the community had suggested that it was because of the 
skiing opportunities. Roberts said the Latin American market is 
under- represented in the public debates on this issue and this 
is a way of raising awareness. 

Bart Stupack, another Democrat, asked Rutt if NSI would sign a 
registrar accreditation agreement with ICANN, which it has so 
far resisted doing. Rutt would not say yes or no, and in a 
conference call with analysts later yesterday said on the 
subject: "We cannot be dictated to here; any agreement has to 
be mutual." Pincus and Dyson both agreed that NSI should 
recognize ICANN immediately so the process can move forward. 
NSI is holding out because as a publicly-traded company it 
feels it is putting its core business into the hands of a group 
- ICANN - that is neither accountable or one that makes it 
decisions based on a consensus of opinion among the internet 
community. Rutt was asked later what be believed consensus was 
in this case, to which he replied, "consensus is like 
pornography; you know it when you see it." 

On the question of ICANN's future funding, especially relevant 
now it has suspended the collection of this $1 fee, Dyson said 
that of the $800,000-worth of work done by ICANN counsel Joe 
Sims, who works for Jones, Day, Reavis & Pogue, about $500,000 
of that has been done on credit. In addition she said that 
president Mike Roberts had not been paid for a few months - 
he's on a contract from his family's consulting firm at the 
rate of $18,000 per month. ICANN says it is running very short 
of funds right now and relies solely on donations. 

On the later panels, which had less time than the main group, 
Mikki Barry of Domain Name Rights Coalition put the case for 
individuals to have representation within ICANN, which is not 
yet the case and surprisingly got some support for this 
position from Harris Miller, president of the Information 
Technology Association of America. 

Jonathan Weinberg, professor of law at Wayne State University, 
Ann Arbor, Michigan, slightly paraphrasing Churchill and 
drawing an analogy with the current wranglings, said: 
"Democracy is the worst form of government, apart from all the 
others," and pointed out that we should not be surprised that 
NSI and ICANN are at each other's throats right now. He said if 
ICANN limited its scope to merely ensuring the stability of the 
structure of the domain name system then few would have any 
quarrels with it, but he also warned the sub-committee against 
intervening directly in the dispute, as one member suggested.

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