We strongly disapprove of Public Interest Registry's proposed .org registry agreement

["Prophet Partners Inc." <Domains@xxxxxxxxxxxxxxxxxxx>]

August 28, 2006

 

We are deeply concerned that ICANN is seriously considering the approval of 
Public Interest Registry's proposed .org registry agreement, as well as the 
proposed registry agreements by Afilias for .info and NeuStar for .biz. We 
believe that all three proposals contain powerful and dangerous clauses that 
are both anti-competitive and a stability or security threat to the DNS. 
Approval of these proposed registry agreements would also create a dangerous 
precedent for Verisign to demand equal or greater concessions from ICANN during 
future contract negotiations for the .com and .net gTLD's.

 

We strongly disapprove of the presumptive renewal clause in the proposed .org 
registry agreement that would provide Public Interest Registry with essentially 
a perpetual monopoly over the .org gTLD for an infinite period of time. We 
believe that the presumptive renewal clause is too lenient as it permits Public 
Interest Registry to make repeated material breaches of the contract before 
facing any consequences. It only takes one material breach to threaten the 
stability and security of the DNS. It is our belief that approval of the 
presumptive renewal clause will remove any incentive for Public Interest 
Registry to EARN THE RIGHT to be the ICANN designated .org registry. This may 
cause Public Interest Registry to become negligent in their registry duties, 
and as a result diminish the stability or security of the DNS. The only way to 
ensure that this potentially catastrophic situation does not occur is to (1) 
limit the length of the .org registry agreement and (2) establish an 
independently evaluated competitive bidding process among Public Interest 
Registry and other qualified registry operators when the .org registry 
agreement is up for renewal.

 

We also strongly disapprove of the clause in the proposed .org registry 
agreement that removes all price controls imposed on Public Interest Registry' 
pricing of registry services. Furthermore, six months advance notice by Public 
Interest Registry of price increases is simply inadequate and offers next to no 
protection for domain registrants. Without knowing a ballpark figure for the 
amount of future price increases by Public Interest Registry, it is impossible 
for domain registrants to prepare. With the prospect that Public Interest 
Registry may raise prices by 100%, 1,000%, 10,000% or more, many domain 
registrants will likely be ill prepared for such price increases. To illustrate 
such a disaster scenario, think about New Orleans and Hurricane Katrina, when 
hundreds of thousands of people were given short notice to evacuate and leave 
their homes. It is inconceivable that ICANN would consider granting Public 
Interest Registry with omnipotent powers over pricing and a perpetual monopoly 
over the .org gTLD. Lord Acton warned that "Power corrupts and absolute power 
corrupts absolutely." World history has proven this repeatedly. The founding 
fathers of the United States recognized the dangers of concentrated power and 
created the three branches of government, executive, legislative and judicial 
to keep power in check. The checks and balances of the U.S. political system 
are the reasons why we are the most economically powerful country in the world. 
Figuratively, this proposed .org registry agreement would essentially greatly 
increase Public Interest Registry's executive and legislative powers, while 
greatly reducing ICANN's judicial powers.

 

ICANN is a non-profit corporation that was specifically created to protect the 
interests of the public. In our opinion, it would be a gross dereliction of 
duty, if ICANN's Board of Directors approved Public Interest Registry's 
proposed .org registry agreement. If the ICANN Board of Directors fails to see 
the dangers of the proposed .org registry agreement, we kindly ask each of you 
to individually provide us with a complete list of your bank and brokerage 
accounts and sign over a full power of attorney granting us with full legal 
powers over your personal and business affairs. These powers of attorney would 
of course be subject to presumptive renewal provided we did not make repeated 
material breaches of our agreements.

 

In conclusion, we recommend that ICANN reject Public Interest Registry's 
proposed .org registry agreement in its entirety.

 

Sincerely,

Prophet Partners Inc.

www.ProphetPartners.com