Has anyone seen this? It may rain on the parade come Mon.
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Domain name registrar slammed House committee rips Network Solutions, threatens to revoke company's charter By Brock N. Meeks MSNBC
WASHINGTON, July 22 — A congressional panel Thursday harshly criticized Network Solutions Inc., the company responsible for registering all Internet domain names, for its monopolistic tactics and refusal to abide by Commerce Department orders to move the system to a competitive process. If NSI fails to follow those orders, the department could strip it of its registration, leaving the stability of the Internet in doubt and putting the company's lucrative financial base in jeopardy.
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THURSDAY'S HEARING WAS STEEPED in enough intrigue to fill a spy novel: call it the “Domain Name Factor,” a real-time plot line complete with hidden agendas and global power grabs, with the fate of the entire digital community hanging in the balance. For eight months a private organization tapped by the Commerce Department to oversee transition of domain name registrations from a government-sponsored monopoly, held by NSI, to a competitive environment has been under siege from consumer advocates, Congress and assorted Internet players for having overstepped its original mandate: to provide a sound technical plan for developing competition in the domain name registration process. Instead, critics — NSI among the loudest — claim the Internet Corporation for Assigned Names (ICANN), has unilaterally embarked on a plan to set itself up as the chief governing body for the entire Internet. The group has held closed meetings, self-selected board members and set up ad hoc organizations to which it has delegated critical Internet functions, such as working out a dispute resolution system when a domain name infringes on a trademark. And, in perhaps the most inflammatory move, unilaterally decided it would impose a $1 annual fee on the millions of domain name holders as a means of providing itself with a dependable cash flow.
Net name group reluctantly drops proposed fee, opens meetings
Those moves created a firestorm of protest leading straight to into the halls of Congress. Fed up with the complaints, Congress moved into action Thursday, calling its hearing, “Domain Name Privatization: Is ICANN Out of Control?” The closed meetings and $1 fee are “misguided ideas,” said Rep. Thomas Bliley, R-Va., head of the House Commerce Committee, calling the $1 charge “an unauthorized tax on the American people.” Bliley blamed ICANN, NSI and the Commerce Department for what he called “this morass” of problems on the road to a competitive environment. Advertisement
“Transitions from monopoly to competition are difficult and messy under the best of circumstances,” said Esther Dyson, interim chairman of ICANN's board. Just before Thursday's hearing, ICANN renounced the $1 fee and pledged to hold open hearings. However, Dyson told Congress that those were preliminary moves. A final decision will be made in November when ICANN holds its first annual meeting in Los Angeles and permanent members of the board will be elected and installed. But the railroading of ICANN abruptly jumped track as members of Congress began to sharply question NSI CEO Jim Rutt. UP IN FLAMES Committee members grilled Rutt about the company's refusal to comply with Commerce Department orders to adhere to ICANN's authority and work out a smooth transition to competition. The government extended NSI's authority until September 2000, hoping that the transition would be complete by then. But NSI is refusing to work with ICANN, claiming ICANN's bylaws set it up as a ruling authority for the entire Internet, a move that goes well beyond its mandated task of overseeing the competition transition. Rutt often ducked questions. When asked “who owns” the .COM register, the heart and soul of the domain name process, Rutt summarily answered: “It appears to me, a simple ol' country boy, that the [intellectual property] belongs to NSI.” That statement was rebutted by Andrew Pincus, general counsel of the Commerce Department, who said it belonged to the government because NSI had done its work under a “cooperative agreement” with the National Science Foundation, which it won the right to do through a competitive bidding process. Pincus told Congress that, come September, if NSI still hasn't negotiated the proper agreements with ICANN, the government could “recompete” the process, a move that would strip NSI of its right to control the database that registers domain names. Rutt dodged the question of whether NSI holds a monopoly. When he launched into a convoluted answer, he was cut short by Rep. Bart Stupak, D-Mich., who said, “Sir, a yes or no works.” “I'd say that can't be answered ‘yes' or ‘no,'” Rutt fired back.
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PS Somehow I had a problem posting the whole article but one can track it by following the url of msnbc |