ICANN shrugs off dotcom lawsuits

But legal threats point to wider malaise

In the recent internet governance arguments, the US government retained control of the Internet by warning that any shift away from it would damage the effectiveness and stability of the Internet.

The seven percent increase in fees that is in the VeriSign contract and creating much of the argument came about in discussion solely between VeriSign and the US government - the state and commerce departments.

VeriSign is the most effective internet lobbyist in the world and has long held enormous sway in Washington. It maintains and fosters a very close relationship with the current administration.

The seven per cent figure was agreed between VeriSign and the US administration, and only VeriSign and the US adminstration. Any figure - no matter how created - would have to be approved by VeriSign and the US administration. And there is no obligation on either parties' part to seek outside or independent review of this figure.

Now, would VeriSign be able to demand a seven percent increase if it were an international governmental body in charge of the Internet, rather than just the US government?

ICANN is this position is the weakest leg of the stool and effectively has its hands tied.

Resale market

The second point of note is that the two lawsuits stem from companies that will see much of their business from the second-hand sale of expired dotcom domains.

Under the proposed new agreement, VeriSign would effectively take control of this market and keep 10 per cent of sales - with 90 per cent going to the registrar that get the domain for its customer.

The companies that have made a living out of this resale market are, naturally, up in arms. But as Jeffrey points out - and he has a point - "ICANN is not here to protect markets that have come about through the way the internet has been structured. It is here to enhance competition."

The fact that registrars have to bombard VeriSign's computers with as many requests as they can physically fire at it in the hope of picking up an expiring domain is an example of something not working efficiently. Just because it exists, does not mean it is right.

As such, it makes more sense for a registrar to have control over this mechanism. Even if that does mean VeriSign gets fatter on the proceeds as a result.

There are no easy answers to this issue, and they will prompt even more uneasy questions. ®