Testimony from ICANN hearing today before House oversight cmte



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## author     : declan@well.com
## date       : 22.07.99
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And Jamie Love's testimony:
  http://www.cptech.org/ecom/icann-test.txt

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Date: Thu, 22 Jul 1999 04:59:47 -0400
To: declan@well.com
From: Jonathan Weinberg <weinberg@mail.msen.com>

                        Testimony of

                          Jon Weinberg

            Professor of Law, Wayne State University

                       Detroit, MI 48202

                         (734) 577-3942

                          before the

                 U.S. House of Representatives

                       Commerce Committee

          Subcommittee on Oversight and Investigations

  "Domain Name System Privatization: Is ICANN Out of Control?"

                          July 22, 1999
                       Prepared Testimony

     Mr. Chairman, my name is Jon Weinberg and I'm a law
     professor at Wayne State University.  In 1997-98, I was
     a professor in residence at the Federal Communications
     Commission and I worked on some of the issues that are
     currently before the Subcommittee.  I am not appearing
     here, though, on behalf of either Wayne State
     University or the U.S. government; rather, I am
     speaking only for myself.  In my view, the largely
     self-inflicted wounds that ICANN has suffered to date
     need not be fatal.  ICANN must move quickly to
     implement mechanisms for choosing new Board members who
     will be drawn from, and who can represent, the Internet
     community.  Second, and relatedly, it must learn to act
     like a part of the Internet community.  Finally, it
     must find an adequate way of defining, and limiting,
     its own policy mandate.  If it can do all of these
     things, it will be able to fulfill the role that the
     White Paper laid out for it.

Background -- IP numbers and domain names

       Every computer connected to the Internet must have a
       unique Internet Protocol (IP) address in order to
       receive information, just as every telephone on the
       public switched network must have a unique telephone
       number.  A stable and reliable IP addressing system
       is crucial to the proper functioning of the Internet.

     IP addresses (such as 149.59.6.22), however, are opaque
     and hard to remember.  It would not be practical for a
     user to have to remember, and type in, a different IP
     address for every Web site he sought to visit or
     electronic mail message he wished to send. Accordingly,
     under the current Internet architecture, each IP
     address maps to a more or less easy-to-remember domain
     name such as www.house.gov or www.law.wayne.edu.  The
     domain name system (DNS) makes it easier for ordinary
     people to use the Internet.

     The domain name system is hierarchical.  That is, the
     domain name space is divided into top-level domains, or
     TLDs; each TLD is divided into second-level domains, or
     SLDs; and so on.  The currently-available TLDs include
     .com, .net, .org, .edu, all administered by Network
     Solutions, Inc. (NSI), and the so-called "country code"
     top-level domains such as .us, .uk and ..fr.  At the
     outset, it was thought that .com would used by
     commercial entities, .net by entities involved with the
     Internet networking infrastructure, .org by nonprofit
     organizations, and .edu by educational institutions.
     NSI, though, does not enforce any such restrictions on
     registrants in ..com, .org and .net.  Indeed, NSI urges
     businesses to register their preferred second-level
     domain names in all three of those top-level domains.

How we got where we are

     In the early days of computer networking, there was no
     need for a hierarchical domain name system.  Until
     1984, after all, there were fewer than 1000 "host"
     computers connected to the Internet.  That number,
     however, quickly grew.  It soon became clear that the
     Internet needed a new addressing structure.  Scientists
     including Jon Postel and Paul Mockapetris of the
     University of Southern California's Information
     Sciences Institute (ISI) developed the current domain
     name system, and the first domains were registered in
     1985.  ISI assumed responsibility for oversight of the
     domain name system, including oversight of the root
     servers, which sit at the apex of the domain-name
     system and effectively determine which top-level
     domains will be recognized by the system.  These and
     other coordinating functions, performed by Dr. Postel
     and his staff at ISI, came to be known as the Internet
     Assigned Numbers Authority, or IANA.  The Defense
     Department, which had bankrolled almost all of the
     early development of the Internet, entered into a
     series of contracts with ISI under which the U.S.
     government paid for the IANA functions.

     The Defense Department in 1985 assigned SRI
     International, a nonprofit Silicon Valley research
     institute, the job of registering second-level domains
     in the generic (non-country code) top-level domains.
     Later on, the National Science Foundation (NSF) assumed
     the lead from the Defense Department in funding basic
     Internet infrastructure.  In 1992, NSF established a
     new structure known as the InterNIC, or Internet
     Network Information Center. It entered into cooperative
     agreements with AT&T to provide Internet directory and
     database services; General Atomics to provide certain
     Internet information services; and NSI to perform the
     registration services that had been handled by SRI.
     NSI agreed to register second-level domains in the
     generic TLDs and to maintain those top-level domains'
     master databases. Those services were free to users;
     they were underwritten by the National Science
     Foundation. NSI had physical control of the "A" root
     server, from which all of the other root servers get
     their information, but it operated that root server on
     instructions from IANA.

     By 1995, the Net had come of age.  It had been more
     than 25 years since the initial establishment of the
     Internet's predecessor, the Arpanet.  Business were
     beginning to use the Internet for commercial purposes.
     The U.S. House and Senate were online. More than 100
     countries were now connected to the Internet backbone,
     and operated their own top-level domains.  The World
     Wide Web, which had become the dominant Internet
     application, was now thus truly world-wide.  NSI
     negotiated with the National Science Foundation an
     amendment to the cooperative agreement under which NSI
     would begin charging a $50 annual fee to domain- name
     registrants.

     The NSI fee was unpopular, and crystallized growing
     unhappiness with the structure of the domain name
     system.  Registrants wondered why, in seeking to
     registering names in the generic TLDs, they were stuck
     with the service provided by, and the fees charged by,
     the NSI monopoly.  NSI also generated considerable
     animosity with its domain name dispute policies, under
     which it asserted the right to (and did) suspend any
     domain name upon complaint from a trademark owner,
     without regard to whether the trademark owner had a
     superior legal claim to the domain name.  Finally,
     there was growing consensus in the technical community
     that the architecture would support many more top-level
     domains than had so far been authorized.

     Accordingly, Jon Postel floated a suggestion that IANA
     authorize up to 150 new generic top-level domains, to
     be operated by new registries.  As the proposal went
     through successive iterations, IANA and the Internet
     Society formed an elaborate, internationally
     representative "Internet Ad Hoc Committee" (IAHC) to
     consider the question of adding new top-level domains,
     with representation from, among others, the
     International Telecommunications Union, the
     International Trademark Association and the World
     Intellectual Property Organization.  The trademark
     lawyers urged that the number of new domains be cut
     considerably; the group ultimately generated a proposal
     for the addition of just seven new top-level domains.
     Would-be domain-name holders, under the IAHC plan,
     could go to any of a large number of competing
     "registrars" to register names in those new domains;
     the actual master databases for all of the new domains
     would be controlled by a single nonprofit corporation
     known as CORE, to be run by the registrars.  When Jon
     Postel requested that NSI insert the new CORE top-level
     domains into the "A" root server, though, NSI declined
     to do so absent authorization from the U.S. government.
     The U.S. government, in turn, instructed NSI to wait;
     it was still in the middle of its own analysis of the
     domain-name situation.

     In 1998, the Commerce Department issued a "Green
     Paper," followed by a "White Paper," expressing its
     views on Internet identifiers.  The White Paper
     emphasized that with the changing role of the Internet
     in the modern world, IANA's functions needed to be
     transferred to an entity, not funded by the U.S.
     government, with a more formal and robust management
     structure and more formal accountability to the
     international Internet community.  While Dr. Postel had

     the loyalty and respect of a wide consensus of the
     community, his informal leadership was no longer enough
     "What happens," the question ran, "if Jon Postel gets
     hit by a beer truck?"  The new entity, the White Paper
     continued, should have fair, open, transparent  and
     pro- competitive decisionmaking processes that
     protected it against capture by a narrow group of
     stakeholders.

     The White Paper made clear that there was an urgent
     need for greater competition in domain name
     registration.  That competition, it explained, should
     come in two ways.  First, customers should be able to
     register domains in any top-level domain, including
     those currently operated by NSI, using any of a number
     of competing registrars.  The U.S. government
     contemplated that NSI would continue to control the
     "registry," or master database, for .com, .net and
     .org, but that it would have to offer equal access to
     competing registrars seeking to enter names in that
     database.  Second, the White Paper continued, IANA's
     successor should add new top-level domains to the root
     zone, operated by new domain-name registries, so as to
     expand the name space and maximize consumer choice.

     The actual establishment of ICANN was clouded by
     tragedy.  Jon Postel had agreed to serve as Chief
     Technical Officer of a new corporation, to be known as
     the Internet Corporation for Assigned Names and
     Numbers, to perform IANA's technical management
     functions.  The corporation's Board of Directors were
     chosen from a group of distinguished personages who had
     had little involvement in (and, for the most part,
     little knowledge of) the "DNS wars" of the previous few
     years.  The facts that not all of the Board members had
     extensive technical expertise was not considered to be
     a problem, since Dr. Postel could provide that
     technical background and guidance.  On October 16,
     1998, though, Postel died at 55 of post-operative
     complications from heart surgery.  In figurative terms,
     he'd been hit by a beer truck.  The Department of
     Commerce nonetheless, six weeks later, entered into a
     memorandum of understanding with ICANN, agreeing to
     work together to develop mechanisms and procedures so
     that the nascent ICANN could administer Internet
     technical identifiers in a transparent and fair manner.

     Before the Internet took on its current economic
     importance, the substantive questions confronting ICANN
     could have been resolved within the Internet
     Engineering Task Force, a technical standards body
     composed of scientists and engineers interested in
     Internet infrastructure, with little attention paid by
     the outside world.  By the mid-1990s, though, those
     questions had too much money riding on them to allow
     such mundane resolution.  Those with money or prestige
     at stake   NSI, trademark interests, international
     standards organizations and others   all brought their
     lawyers to lobby in favor of their preferred models.
     The high-profile White Paper process, indeed, probably
     encouraged any entities with economic stakes that had
     not yet "lawyered up" that it was high time they did
     so.  To an increasing degree, it was lawyers and
     lobbyists, rather than technical experts, who were
     demanding seats at the Internet architecture table.

Where we are now

     In its quest for legitimacy, ICANN has taken several
     wrong turns.  It started out under a considerable
     handicap since its Board members, for the most part,
     have little background in Internet technical issues.
     They were chosen on the theory that it would be helpful
     for the Board members to be new to the DNS debates, so
     that they were not tainted by identification with past
     controversy.  The newness of most of the members to
     Internet technical issues, though, greatly complicated
     the task of securing the confidence of the Internet
     community. The Board members' selection was shrouded in
     secrecy, and that secrecy was exacerbated by the
     Board's early penchant for closed meetings, so that the
     Internet community knew neither who these people were
     nor how they were reaching their decisions.  ICANN
     demonstrated a tin ear when it came to the Internet
     traditions of openness and communication.  For the most
     part, ICANN still communicates to the outside world
     through its public relations firm and its lawyers.
     Those channels are all very well for a commercial firm,
     but they are insufficient to win ICANN acceptance as an
     organ   and thus a part   of the Internet technical
     community.

     Nor have the structures ICANN created been the most
     representative. ICANN has brokered the creation of an
     arbitrary structure for its Domain Names Supporting
     Organization, which will have a lead role in the
     development of DNS policy, under which business and
     trademark interests will have a disproportionate role.
     ICANN, further, lacks humility, notwithstanding that it
     has a great deal to be humble about.  I was bemused to
     read Esther Dyson's explanation, in her July 19 letter
     to NTIA Associate Administrator Becky Burr, that the
     public need not worry that ICANN will use its authority
     to impose inappropriate requirements on Internet
     actors.  Since ICANN, Dyson explained, is by its nature
     "nothing more than the reflection of community
     consensus," by definition it cannot do anything
     improper.  If this message is sincere, it reflects
     previously unimagined depths in ICANN's lack of
     understanding of others' concerns.

     ICANN has seemed not to understand the importance of
     limiting its policy role.  The matter of domain-name
     dispute resolution provides one example.  The White
     Paper had urged that the World Intellectual Property
     Organization explore recommendations for a uniform
     dispute resolution approach for "trademark/domain name
     disputes involving cyberpiracy"   that is, abusive
     registrations of a domain name string identical or
     closely similar to another firm's trademark, solely for
     the purpose of reselling the domain name to that firm
     or one of its competitors.  "[I]t should be clear," the
     White Paper noted, that any dispute resolution
     mechanism put forward by ICANN should be limited to
     that category of disputes.  WIPO, after extensive
     deliberations, issued a report recommending such a
     dispute-resolution mechanism, limited to the cases
     described in the White Paper.  ICANN referred the WIPO
     report to its Domain Names Supporting Organization.  It
     then issued a press release expressing its view that
     the mandatory dispute resolution for domain name
     registrants imposed through ICANN- sanctioned contracts
     should not be limited to abusive registrations, and
     indeed should "ultimately cover all commercial dispute
     issues linked to Domain Name registrations" (emphasis
     mine). This suggests that ICANN fundamentally
     misunderstands its role.  We do not need a world
     Internet government, imposing such policies as seem to
     it good.  We need a technical coordinator to perform
     the limited tasks of expanding the name space,
     protecting the stability of the domain name system, and
     policing bad actors who threaten competition and
     consumer welfare.

     At the same time, though, not all of the criticisms of
     ICANN are justified.  ICANN has been much criticized
     for its proposal that it collect a fee to defray its
     own costs, from registrars registering domain names in
     .com, .net and .org, for each domain name they
     register, not to exceed $1 per registration-year.
     ICANN recently decided to table this fee for the time
     being, and to rethink it in conjunction with the
     directly affected entities.  This was a wise decision.
     The fee was controversial, and ICANN's spending choices
     have not been beyond criticism.  Nonetheless, the White
     Paper contemplated that IANA's successor   unlike IANA
     itself would be free from government support precisely
     because it could be funded by "domain name registries,
     regional IP registries, or other entities identified by
     the Board."  The problem with the ICANN fee was not
     that there is something wrong with such a funding
     mechanism in principle, but that the Board went ahead
     with it without first securing the sort of community
     support that would make such a fee sufficiently broadly
     acceptable.

     ICANN has been criticized on the ground that it is
     seeking to impose overbearing requirements on NSI.
     Conflict between NSI and ICANN, however, is inevitable.
     NSI currently enjoys an unparalleled monopoly in domain
     name registration services, and is earning huge profits
     from its position.  NSI's .com, .org and .net top-level
     domains include the overwhelming majority of
     domain-name registrations.  (NSI has over 5 million
     registrations in .com alone.  The largest top-level
     domain not administered by NSI is the country-code
     domain ..de (Germany), with fewer than 400,000
     registrations.)  ICANN's task, as set out in the Green
     and White Papers, is to destroy NSI's monopoly in two
     ways: first, by introducing competitive registrars to
     .com and the other top-level domains now administered
     by NSI, and second, by authorizing  new generic
     top-level domains to compete with those domains.  It
     should be unsurprising that NSI opposes ICANN
     implacably.

     NSI has sought to forestall competition, and to
     leverage its effective control over the generic
     top-level domain master databases, in a variety of
     respects.  It has aggressively and unjustifiably
     asserted intellectual property control over the
     contents of the .com, .net and .org databases, and is

     seeking to market the information contained in those
     databases through such devices as its upcoming "dot com
     directory."    It has been recalcitrant in its
     relationship with the Department of Commerce, dragging
     its feet on registrar competition and imposing barriers
     in the way of the testbed registrars.  It now professes
     that because of "personnel resource limitations," it
     will be able to enable new registrars to access its
     databases only at the rate of only five per month.  It
     has arbitrarily and without notice blocked public
     access to sources of registration information, and has
     insisted on receiving a fee for maintaining the master
     database that unreasonably exceeds its costs.

     It is plain that somebody needs to ride herd on NSI.
     The DNS controversy was sparked in the first instance,
     after all, by user concerns over the monopoly franchise
     NSI was exercising under its cooperative agreement with
     the National Science Foundation.  Four years later, NSI
     continues to exercise tremendous market power.  The
     White Paper gave the job of supervising NSI to ICANN
     (with backup from the Department of Commerce).  In
     turn, the White Paper directed that NSI must recognize
     "the role of the new corporation [that is, ICANN] to
     establish and implement DNS policy and to establish
     terms [applicable to NSI among others] under which
     registries, registrars and gTLDs are permitted to
     operate."  NSI's economic interests lie in its acting
     to obstruct that process.

     Some of ICANN's problems should dissipate as mechanisms
     are put in place to elect new Board members.  As new
     Board members drawn from the Internet community take
     their seats, ICANN's task of winning legitimacy should
     become easier.  Important questions, though, still
     remain.  The voting mechanism for ICANN's at-large
     Board members, to be elected by the global membership,
     remains unsettled.  Other aspects of ICANN's governance
     structure are already skewed.  Many observers have
     expressed concerns (which I share) that ICANN's Domain
     Name Supporting Organization, which has the lead role
     in initiating policy concerning the DNS, is structured
     in a manner that is arbitrary, haphazard, and
     systematically tilted towards trademark and business
     interests.  These aspects of ICANN's structure deserve
     continuing close attention.

Where we go from here

     ICANN is seeking to enter into contractual agreements
     with all firms seeking to register domain names in
     .com, .net, and .org, under which those entities agree
     to terms (beginning with financial and business
     qualifications) designed to implement DNS policy goals.
     Later in the process, it will seek to enter into
     similar contracts with all entities seeking to operate
     top-level domains as registries.  This approach will
     allow ICANN to enter into registry contracts requiring
     the registries to enter into specified contracts with
     their registrars, and the registrars to enter into
     specified contracts with domain name holders, and so
     on.  Indeed, the WIPO report on domain- name dispute
     resolution contemplates exactly that: all domain-name
     holders, in order to register names in top-level
     domains included in the ICANN root, will have to agree
     to particular contractual terms related to dispute
     resolution.  This web of top-down contracts could give
     ICANN the power to impose a variety of rules on domain
     name holders (and in turn, the Internet population at
     large) that have little to do with Internet technical
     administration and domain name policy.

     Such a result would be disastrous.  ICANN must not be a
     world Internet government.  Its role should not be to
     enact good policies, and impose them on the rest of us.
     In particular, its role should not be to make the
     Internet safe for electronic commerce.  That effort,
     although much prized by business, would require a wide
     range of policy and value judgments that lie far
     outside ICANN's limited role.  Rather, it should limit
     its task to the structure and stability of the domain
     name system and the administration of other Internet
     identifiers.

     Ironically, though, one of ICANN's biggest current
     tasks lies outside the boundaries I have just defined.
     I have already referred twice to trademark-domain name
     dispute resolution: ICANN has announced its intention
     to quickly adopt new rules, to be imposed on all domain
     name holders, potentially requiring their participation
     in dispute-resolution proceedings brought by trademark
     owners who feel that the domain names "pirate" their
     trademarks.  Yet resolution of such trademark-law
     disputes between trademark owners and domain name
     holders has no technical component.  It is not
     necessary to administration of Internet identifiers.
     It could be handled through ordinary trademark-law
     litigation, as it has been to date, without any threat
     to the stability of the domain name system.  It is
     precisely the sort of issue that IANA would not have
     dreamed of taking on, and that ICANN should not be
     engaged in.

     ICANN is involving itself in domain-name dispute
     resolution for three reasons.  First, as a matter of
     pure practical politics, trademark holders have made
     clear that they will fight vehemently against the
     addition of any new top-level domains, in Congress and
     other fora, unless ICANN first implements a trademark
     dispute resolution mechanism.  Second, NSI already has
     a trademark dispute resolution "mechanism" in place
     it will suspend any domain name upon complaint from a
     trademark holder with the same mark   and nearly all
     parties agree that that mechanism must be replaced.
     Finally, the current ICANN structure gives business and
     trademark-owning interests extensive influence, and the
     Board members are sympathetic to their concerns.  At
     least the first two of these reasons may make the
     enactment of some sort of trademark dispute resolution
     mechanism inevitable at this point.  But this should be
     the last of ICANN's forays outside of issues relating
     to the structure and stability of the domain name
     space, and the administration of other Internet
     identifiers.

     ICANN, in short, has three tasks before it.  It must
     move quickly to formulate, and to implement, mechanisms
     for choosing new Board members who will be drawn from,
     and who can represent, the Internet community.  Second,
     and relatedly, it must learn to act like a part of the
     Internet community.  Finally, it must find an adequate
     way of defining, and limiting, its own mandate.  (It
     will not suffice for it to declare piously that,
     because it is impelled by community consensus, it is
     incapable of overstepping its bounds.)  If ICANN can do
     all of these things, it will be able to fulfill the
     role that the White Paper laid out for it.




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