CFIT on the .com deal

["Berard, John" <John.Berard@xxxxxxxxxxxxx>]

The following is a letter from the Board of Directors of the Coalition
for ICANN Transparency expressing opposition to the proposed .com
registry agreement.

 

February 17, 2006

 

Mr. Paul Twomey

President and CEO

Internet Corporation for Assigned Names and Numbers

4676 Admiralty   Way, Suite 330 

Marina del Rey, CA  90292-6601

 

Dear Paul:

 

On behalf of the Coalition for ICANN Transparency (CFIT) we want to
offer our formal comments regarding the proposed and revised .com
registry agreement between ICANN and VeriSign.

 

As members of the board of CFIT, we commend the ICANN staff for finally
making one thing clear: the proposed .com deal has nothing to do with
what is best for the internet community and everything to do with
settling litigation between the body and VeriSign.  Not only is this a
bad business move, it will have exactly the opposite effect.  It will
make ICANN a weaker governing body and susceptible to even more
litigation.  

 

Despite having gone back to the bargaining table with VeriSign, little
has changed, despite broad internet community opposition to the original
.com deal which changes and extends the contract to control the
internet's most important database. CFIT's three primary objections and
the basis for our recommendation to reject the deal are:

 

1.  That price increases remain mandates, without requirement of any
economic justification

 

2.  That VeriSign could still too easily expand its registry services,
using its monopoly of the .com database to annex already competitive
markets, and

 

3.  That the deal creates ownership of the .com registry in
near-perpetuity under the terms of its presumptive renewal 

 

In addition, the deal creates a disparity of operations across all
registries -- adding confusion and inequity -- and reduces the important
and traditional oversight role of the U.S. Department of Commerce.  As
you know, we are in the midst of a continuing dialog with both Commerce
and the U.S. Department of Justice on the matter.

 

We are disappointed that the revised contract contains only minor
revisions to the proposed settlement released last October.  As a
result, CFIT is compelled to continue to pursue our anti-trust suit in
U.S. District Court in San Jose, California. .As you know, discovery is
underway and a date is to be set for a hearing on a preliminary
injunction to stop the deal from being implemented.

 

There is little question that this deal also will result in a much
weaker ICANN in the world forum.  After weathering the WSIS in Tunis
last year, ICANN needs to show the world that its current management
offers a responsive and workable structure.  This is undone by ceding
control of the .com registry operation to one U.S. operator essentially
forever, and without competition or regulation.

 

For these reasons we ask that the deal be rejected.

 

Sincerely,

 

John Berryhill, Ph. D. & Esq.

CFIT Board Member

 

Jason Eberstein

CFIT Board Member and

Vice President, Government Relations

Trammell and Company

 

Howard Neu, PA

CFIT Board Member and

Law Offices of Howard Neu

 

Jennifer Ross-Carriere

CFIT Board Member and

Director of Policy and General Counsel

Momentous.ca Corporation