We strongly disapprove of NeuStar's proposed .biz registry agreement

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

August 28, 2006

 

We are deeply concerned that ICANN is seriously considering the approval of 
NeuStar's proposed .biz registry agreement, as well as the proposed registry 
agreements by Afilias for .info and Public Interest Registry for .org. 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 .biz 
registry agreement that would provide NeuStar with essentially a perpetual 
monopoly over the .biz gTLD for an infinite period of time. We believe that the 
presumptive renewal clause is too lenient as it permits NeuStar 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 NeuStar to EARN THE RIGHT to be the ICANN designated 
.biz registry. This would likely cause NeuStar 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 .biz registry agreement and (2) 
establish an independently evaluated competitive bidding process among NeuStar 
and other qualified registry operators when the .biz registry agreement is up 
for renewal.

 

We also strongly disapprove of the clause in the proposed .biz registry 
agreement that removes all price controls imposed on NeuStar's pricing of 
registry services. Furthermore, six months advance notice by NeuStar 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 NeuStar, it is impossible for domain registrants to prepare. With 
the prospect that NeuStar 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 the city and leave their homes. It is inconceivable that ICANN would 
consider granting NeuStar with omnipotent powers over pricing and a perpetual 
monopoly over the .biz 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 .biz registry agreement would 
essentially greatly increase NeuStar'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 NeuStar's proposed .biz registry 
agreement. If the ICANN Board of Directors fails to see the dangers of the 
proposed .biz 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 NeuStar's proposed .biz registry 
agreement in its entirety.

 

Sincerely,

Prophet Partners Inc.

www.ProphetPartners.com