[Ecommerce] Proposed TACD statement on ICANN

[James Love]

This is a first draft.  Comments are welcome.  Jamie

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Proposed TACD statement on ICANN
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The Internet Corporation for Assigned Names and Numbers (ICANN)
is a non-profit organization incorporated in the State of
California that is seeking broad control over resources and
functions that are essential for the operation of the Internet. 
According to ICANN, this includes "responsibility for the IP
address space allocation, protocol parameter assignment, domain
name system management, and root server system management.

The most important area will concern the management of the domain
name system (DNS).  Everyone who uses the Internet has to use a
domain name (names such as such as TACD.org or Amazon.com). 
Computer that are connected to the Internet use IP number (unique
numeric internet addresses, such as 216.0.124.147).  The DNS
system is designed to be an authoritative way to map the
easier-to-remember names to the IP numbers.  (It is easier to
remember CNN.com than 207.25.71.20, for example).  The DNS
management system provides a surprisingly highly centralized
mechanism for influencing Internet navigation.  (This is a fact
readily apparently to anyone who fails to pay domain name
registration fees and eliminated from the constantly updated
databases of domain names, making a web page "disappear").

For years DNS management was considered a largely technical
issue, managed by Internet Pioneer Jon Postel or other government
contractors, that most users simply took for granted.  With the
growth of the commercial value of the Internet and electronic
commerce, and the untimely death of Jon Postel, there has been an
astonishing flurry of activity surrounding management of domain
names and allocation of IP numbers.

Early efforts by the US government to privatize the management of
certain generic top level domain (gTLD) names such as .com, .net
and .org, led to concerns that private firms, like Network
Solutions, would obtain monopoly power of registration of
important aspects of domain names, charging excessive prices for
the registration of domains, and possibly imposing inappropriate
restrictions on the use of domain names.

And as e-commerce has become big business, there are also
disputes involving a number of content issues, and many groups
are seeking to control what happens on the Internet.  For
example:

     businesses are seeking to take away domain names that they
     claim infringe on trademark rights.

     Pharmaceutical companies want to prevent online pharmacies
     from selling inexpensive pharmaceuticals across national
     borders.

     Music companies want to prevent web pages from providing
     copies of software that will defeat DVD anti-copying
     technologies, or the distribution of unauthorized MP3 music
     files.  

     Some governments are seeking to block access to web sites
     that feature gambling, the sale of unregistered securities,
     pornography, or censored political views.

     Owners of software, films, music and other materials are
     seeking methods of monitoring the private movements of
     copyrighted materials on the Internet, to police possible
     infringements. 

Groups with various agendas are seeking ways to block access to
websites that engage in a variety of activities, or to impose new
Internet surveillance systems that can be used to impose
liability on certain actions.  There is now growing attention to
the role of the DNS system and Internet protocol development as a
system of control over Internet usage.  For example, by
controlling the allocation and mapping of domain names and IP
numbers, it is possible to render a web page invisible and
unfindable to most Internet addresses.  There are also proposals
for various Internet protocols that would enable new mechanisms
for surveillance of Internet transmissions.

Because of their strategic importance, there are profound
concerns over the future control over the resources to control
DNS management.  A number of groups with diverse interests and
views are seeking mechanisms to limit the use of DNS management
to narrow technical issues necessary for the operation of the
Internet, and to prevent the system of DNS management from being
used as an enforcement mechanism for government or private policy
making.

The Clinton Administration has proposed the creation of a private
non-profit organization to control the DNS management system,
under a system of "self governance."  ICANN was created and
selected by the US government to assume the ownership and control
of the DNS system.  Among the early acts by ICANN was the
adoption of a set of policies regarding the use of well known
trademarks, that critics say have substantially reduced the
public's rights to use certain domain names.  ICANN has also
imposed fees on organizations that register domains, and
announced a budget of approximately $6 million per year, with a
President that will earn a salary of $300,000, plus benefits. 
The organization will have a nineteen member board of directors,
who will fly business class to quarterly meetings in locations
such as Cario, Santiago, Berlin and Singapore.  ICANN can
effective "tax" internet domain registrations, to fund any
activity it desires, including the funding of litigation,
lobbying, public relations, public policy research, conferences
and other items. 

ICANN is now considering making policy for the Internet on topics
such as the use of real organization names in navigation systems,
the rights of national governments to the two digit top level
domain space (such as .fr, .au, .de, etc), the addition of new
top level domains such as . .firm, .store, .law, and .arts., and
other issues, including issues relating to protocol development.  

ICANN is controlled by its board of directors, who have broad
powers, including the power to amend ICANN's articles of
incorporation and bylaws.  The initial board was self selected.  
ICANN has created a system for various stakeholder groups to
elected members to the board of Directors.    These include the
"Address supporting Organization," the "Domain Name Supporting
Organization" and the "Protocol Supporting Organization," each of
which elects three members of the board of directors.  These
groups are dominated by electronic commerce businesses.   There
will be a mechanism to elect nine additional board members from
the general public. 

The lobbying for the ICANN board of directors has been
surprisingly intense -- including, for example, an aggressive but
failed campaign by AT&T and other firms on behalf of a former
member of US Congress.  Groups like the Motion Picture
Association of America have been active in ICANN deliberations ,
as have many other business interests, particularly those
representing trademark interests or firms engaged in the domain
registration business.  There is a concern that ICANN will be
asked by various business interests to expand its present mission
to address issues such as the enforcement of copyrights.  Some
ICANN supporters say it should be a model for developing self
regulatory rules for privacy and consumer protection.

It is the view of TACD that ICANN structure is not balanced, with
nearly half of the board sets presently allocated by business
interests through the various supporting organizations, and that
ICANN's mission should be limited so that it does not become a
general purpose internet governance organization.  

One mechanism to limit ICANN's authority would be the creation of
a sui generis multilateral government charter, that would define
and limit ICANN's authority. 

Such a could  be based upon a limited purpose sui generis
agreement among countries that express interest in working
together, and that agree that ICANN's role should be limited to
tasks essential to maintaining an efficient and reliable DNS
management, and that ICANN will not be used as an instrument to
promote policies relating to conduct or content on the Internet.  
 While additional multilateral institutions may be desired to
address electronic commerce issues, ICANN itself should not
become the foundation for a vast Internet governance institution.

ICANN should not use its power over domain registration policy to
exclude persons from the use of a domain on issues that are not
germane to managing the DNS system of mapping IP addresses into
domain names. The right to have a domain on the Internet should
be considered the same as the right to have a street address, a
telephone number or a person's name. 

     Accountability and transparency

The records of ICANN should be open to the public, including
financial records, and all ICANN contracts.  The meetings of
ICANN should be open to the public.  The public should be given
an annual opportunity to review and comment on the ICANN budget.  
The Budget of ICANN should be subject to review by the countries
that provide the ICANN charter. Fees associated with domain
registration should only be spent on activities essential to the
management of the DNS system. 


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James Love 
Center for Study of Responsive Law | Consumer Project on Technology 
P.O. Box 19367, Washington, DC 20036 | http://www.cptech.org
Voice 202/387-8030 | Fax 202/234-5176 | love@cptech.org