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August 28, 2006
We are deeply concerned that
ICANN is seriously considering the approval of the proposed .biz, .info and
.org registry agreements. 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 clauses in the proposed .biz, .info and .org registry
agreements that would provide NeuStar, Afilias and PIR with
essentially a perpetual monopoly over the .biz, .info and .org gTLDs for an
infinite period of time. We believe that the presumptive renewal clause is too
lenient as it permits NeuStar, Afilias and PIR 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, Afilias or PIR to EARN THE RIGHT to be the ICANN designated
.biz, .info or .org registry. This may cause NeuStar, Afilias or PIR 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 NeuStar, Afilias or PIR and other qualified registry
operators when the .biz, .info and.org registry agreements are up for
renewal.
We also strongly disapprove of
the clause in the proposed .biz, .info and .org registry agreements that remove
all price controls imposed on NeuStar, Afilias or PIR's ; pricing of
registry services. Furthermore, six months advance notice by NeuStar,
Afilias or PIR 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, Afilias or PIR, it is
impossible for domain registrants to prepare. With the prospect that NeuStar,
Afilias or PIR 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 NeuStar, Afilias or PIR with omnipotent powers over pricing
and perpetual monopolies over the .biz, .info and .org gTLDs. 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, .info and.org registry agreements would essentially greatly increase
NeuStar, Afilias or PIR’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, Afilias or PIR’s proposed .biz, .info or.org registry
agreements. If the ICANN Board of Directors fails to see the dangers of the
proposed .biz, .info and.org registry agreements, 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 ..biz, .info and org registry
agreements in their entirety.
Sincerely,
Prophet Partners Inc.
www.ProphetPartners.com
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