Re: Registration fees + Insolvency Issues for the new DNS Industry

[Jason Hendeles <jnh@skyscape.net>]

Jason Hendeles wrote:

Charging registration fees and concerns about registrars and registries becoming
insolvent have and will likely continue to be heavily contested.  On one side of
the coin, 'abuse of power comes as no suprise',  there will always be the desire
to raise rates with a hostage group of clients.  However, proposing no renewal
fees or inadequate renewal fees may restrict the ability of registries and
registrars to compete and more importantly survive; especially over the long
term.

Some important points to consider:

A better way to solve this is to build a 'competent' service level agreements
which may include the following:

1.    Automatic 2 year + renewal periods.
2.    Strong terms and conditions for use and responsibilities.
3.    Maximum increases per annum of say a set index tied to inflation + x%.
4.    Terms relating to the transition of a domain name.

As there are already a wide variety of attorney's present on these lists, I'm
sure
they could make suggestions as to a strong 'licensing' agreement that would
protect the interests of the licensee and licensor.

In the end, when DNS becomes an industry, it will set its own guidelines and
practices to follow, similar to every other industry like the insurance, mutual
fund and telecommunications industry.  That group will define policy and
practices to be followed.  If you want DNS services, you will want a provider
that is a member.  Alternatively, you can expect to suffer the consequences.
Customers will seek to choose from a variety of DNS providers.

Buyer beware!  It is their responsibility to diligently ensure that their
service is protected.  There are a wide variety of legal clauses that could be
drafted to protect them.  The industry should begin the process with
constructive suggestions.

Issue 2:    Insolvency.

I believe the second richest man in the world, Warren Buffet has a solution to
this particular problem.  It is called 're-insurance'.  A third party
organization or
even NSI could offer itself as a reinsurer or backup service provider in the
event of insolvency or technical problems.

Jason Hendeles
A Technology Company, Inc.





_________________________________________________________________
Jason Hendeles Business Architect  A Technology Company, Inc.
Telephone 416-484-4735 Fax 416-485-4251 Email jnh@skyscape.net
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