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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">As Mr. Crovitz quoted me, to understand those quotes in context the hearing video and my full statement for the record (and that of the seven other witnesses)
are available at <a href="http://judiciary.house.gov/index.cfm/hearings?ID=7E5AF16E-B1F8-45B8-803B-9E389A9B745E">
http://judiciary.house.gov/index.cfm/hearings?ID=7E5AF16E-B1F8-45B8-803B-9E389A9B745E</a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">This is the oral statement I delivered to the Committee---<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">Oral Statement of Philip S. Corwin<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">Counsel, Internet Commerce Association<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">Before the House Judiciary Committee<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">Subcommittee on Courts, Intellectual Property and the Internet<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">Regarding<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">"Stakeholder Perspectives on ICANN: The .Sucks Domain and Essential Steps to Guarantee Trust and Accountability in the Internet’s Operation"<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif"">May 13, 2015<o:p></o:p></span></b></p>
<p class="MsoNormal" align="center" style="margin-bottom:10.0pt;text-align:center;line-height:115%">
<b><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">Chairman Issa, Ranking Member Nadler, Subcommittee members, I‘m Philip Corwin on behalf of the Internet Commerce Association -- a domain industry trade group and member of ICANN’s Business Constituency, which I
represent on the GNSO Council. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">I commend the Subcommittee for this hearing. Congress has a legitimate interest in an IANA transition and enhanced ICANN accountability that proceed soundly and effectively. The stakes include the security and
stability of the DNS, and Internet free expression and uncensored information.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">Two cliché’s are apropos today. The first is, “If it ain’t broke don’t fix it.” The ICA consensus is that U.S. stewardship has been benign and beneficial, and that ICANN accountability should proceed on its own.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">But the second is, “You can’t put the toothpaste back in the tube.” The NTIA’s announcement raised global expectations. Hundreds of ICANN community members have already expended thousands of hours in designing
transition and accountability measures.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">Therefore, Congress should not reflexively oppose the IANA transition -- but should exercise strong oversight in support of ICANN’s stakeholders.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">While enhanced ICANN accountability measures are overdue they will operate best only if ICANN’s Board and senior staff embrace a culture of accountability that assumes responsibility for the fallout of ICANN decisions
and encompasses early consultation with the multistakeholder community that provides organizational legitimacy.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">We’re some distance from that culture. The road to the NTIA’s announcement led through Montevideo and Brasilia and was paved by ICANN’s misappropriation of the Snowden disclosures. The CEO’s travels were backed
by a secret September 2013 Board Resolution. Those actions were not transparent or accountable and reflected no community consultation.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">ICANN’s community is on the right stewardship and accountability track. But a final package will not be ready by September 30<sup>th</sup>, much less the implementation of required pre-transition accountability
measures. Therefore, NTIA should announce an IANA contract extension soon. The final package must set key community rights in tandem with ICANN accountabilities in its Bylaws and Articles of Incorporation.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">Turning to .Sucks,</span><b><span style="font-family:"Arial","sans-serif"">
</span></b><span style="font-family:"Arial","sans-serif"">ICANN’s request that the FTC and OCA determine its legality was an abdication of responsibility rather than its embrace. ICANN had more than a year to explore and take appropriate action under multiple
contract options.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">There are other new TLD program issues. While the jury’s still out on ultimate success, the total number seems larger than market demand, and many TLDs are practically giving domains away which aids spammers and
phishers. Major unresolved consumer protection and technical issues remain, as well as uncertainty about expending $60 million in auction fees.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">The rights protection measures are working well. But any review of domain dispute procedures should set standard contracts between ICANN and arbitration providers that ensure uniform administration. ICANN must
take responsibility for fair adjudication of domain disputes.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">Finally, besides ensuring full satisfaction of NTIA’s principles, Congress should confirm that ICANN’s continued U.S. jurisdiction is accepted and not an “irritation” for those who would make ICANN a multilateral
organization. You should also know that the transition does not mean ICANN assumption of technical operation of key Internet functions. ICANN lacks the technical capacity to do so, and is dependent on the experience and expertise of stakeholders for maintaining
core functions. While the NTIA’s announcement requires stakeholders to address certain policies, there is no equivalent need to revamp DNS technical operations. Continued operational excellence will bolster the confidence of global users in the Internet’s
stability, security and resilience. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt;text-align:justify;line-height:115%">
<span style="font-family:"Arial","sans-serif"">I hope my testimony has been helpful and would be happy to answer your questions.</span><b><i><u><span style="font-family:"Arial","sans-serif";color:red"><o:p></o:p></span></u></i></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">Philip S. Corwin, Founding Principal</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">Virtualaw LLC</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">1155 F Street, NW</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">Suite 1050</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">Washington, DC 20004</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">202-559-8597/Direct</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">202-559-8750/Fax</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">202-255-6172/cell</span></b><b><span style="color:navy"><o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">Twitter: @VlawDC</span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:navy">"Luck is the residue of design" -- Branch Rickey</span></i></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> accountability-cross-community-bounces@icann.org [mailto:accountability-cross-community-bounces@icann.org]
<b>On Behalf Of </b>Paul Rosenzweig<br>
<b>Sent:</b> Tuesday, May 19, 2015 2:17 PM<br>
<b>To:</b> accountability-cross-community@icann.org<br>
<b>Subject:</b> [CCWG-ACCT] FW: WSJ/Crovitz/Obama's bungled internet surrender<o:p></o:p></span></p>
</div>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Colleagues<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">This is an opinion piece that published yesterday in the Wall Street Journal. I thought it might be of interest.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Paul<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Paul Rosenzweig<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><a href="mailto:Paul.rosenzweig@gmail.com"><span style="color:#0563C1">Paul.rosenzweig@gmail.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">+1 (202) 329-9650<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">VOIP: +1 (202) 738-1739
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Skype: paul.rosenzweig1066<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Our travel blog:
<a href="http://www.paulandkatyexcellentadventure.blogspot.com/"><span style="color:#0563C1">www.paulandkatyexcellentadventure.blogspot.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">My professional blog:
<a href="http://www.paulrosenzweigesq.com/"><span style="color:#0563C1">www.paulrosenzweigesq.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><a href="http://www.redbranchconsulting.com/index.php?option=com_content&view=article&id=19&Itemid=9"><span style="color:#0563C1">Link
to my PGP Key</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<span style="font-size:30.0pt">Obama’s Bungled Internet Surrender<o:p></o:p></span></h1>
<h2 style="margin:0in;margin-bottom:.0001pt;line-height:21.0pt;vertical-align:baseline;outline:0px;background-position-x:0px;background-position-y:0px">
<span style="font-size:15.0pt;font-family:"Arial","sans-serif";color:#666666;letter-spacing:-.1pt;font-weight:normal">The group the White House favors for online oversight is turning into an abusive monopolist.<o:p></o:p></span></h2>
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<p class="MsoNormal" style="vertical-align:baseline"><span style="font-size:7.5pt;font-family:"Arial","sans-serif";color:#333333"><a href="http://www.wsj.com/articles/obamas-bungled-internet-surrender-1431898743"><span style="color:#0080C3;text-decoration:none"><img border="0" id="_x0000_i1025" src="http://s.wsj.net/img/renocol_GordonCrovitz.gif"></span></a><o:p></o:p></span></p>
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<p class="MsoNormal" style="vertical-align:baseline"><span style="font-size:10.5pt;font-family:"Arial","sans-serif";color:#666666;border:none windowtext 1.0pt;padding:0in">By</span><span style="font-size:10.5pt;font-family:"Arial","sans-serif";color:#333333"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="vertical-align:baseline"><b><span style="font-size:10.5pt;font-family:"Arial","sans-serif";color:#666666;text-transform:uppercase;border:none windowtext 1.0pt;padding:0in">L. GORDON CROVITZ</span></b><span style="font-size:10.5pt;font-family:"Arial","sans-serif";color:#666666"><o:p></o:p></span></p>
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<p class="MsoNormal" style="vertical-align:baseline"><span style="font-size:7.5pt;font-family:"Arial","sans-serif";color:#333333">May 17, 2015 5:39 p.m. ET<o:p></o:p></span></p>
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<p class="MsoNormal" style="vertical-align:baseline"><span style="font-size:7.5pt;font-family:"Arial","sans-serif";color:#333333"><a href="http://www.wsj.com/articles/obamas-bungled-internet-surrender-1431898743#livefyre-comment"><b><span style="font-size:10.0pt;color:#0080C3;text-decoration:none">68
COMMENTS</span></b></a><o:p></o:p></span></p>
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<span style="color:#333333">President Obama’s plan to give up protection of the open Internet is wreaking havoc even though it will probably never be carried out. In anticipation of the end of U.S. stewardship, the organization the White House wants to give
more power has become an abusive monopolist, refusing to be held accountable by the Internet’s stakeholders.<o:p></o:p></span></p>
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<span style="color:#333333">The administration last year announced its intention to abandon the contract the Commerce Department has held since the beginning of the Web with the Internet Corporation for Assigned Names and Numbers, or Icann. Congress used its
power of the purse to block the move, which had been set for September this year.<o:p></o:p></span></p>
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<span style="color:#333333">But the prospect of escaping U.S. oversight led Icann to deny accountability even for its core duty of keeping its monopoly over Web addresses working smoothly. The House Judiciary Committee last week held a hearing titled “Stakeholder
Perspectives on Icann: The .Sucks Domain and Essential Steps to Guarantee Trust and Accountability in the Internet’s Operation.”<o:p></o:p></span></p>
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<span style="color:#333333">The .sucks domain was one of hundreds of new top-level domains Icann added beyond the original .com, .org and .gov. Icann, organized as a nonprofit, collects a fee each time it approves a new top-level domain and gets a cut of the
registration charge for individual domain names. The corporation’s total take so far from the new domains is more than $300 million.<o:p></o:p></span></p>
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<span style="color:#333333">The Intellectual Property Constituency, an Icann stakeholder group, calls the .sucks domain “predatory, exploitative and coercive.” Judiciary chairman Bob Goodlatte says trademark holders are “being shaken down”—compelled to buy
new addresses defensively to prevent their use.<o:p></o:p></span></p>
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<span style="color:#333333">Apple bought applestore.sucks. Gmail, Sam’s Club, Uber and <a href="http://quotes.wsj.com/YHOO"><span style="color:#0080C3;text-decoration:none">Yahoo</span></a>registered .sucks addresses, as did celebrities including Taylor Swiftand Kevin
Spacey. The standard price: $2,499, versus $10 for unclaimed .com addresses.<o:p></o:p></span></p>
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<span style="color:#333333">Mr. Goodlatte says the approval of .sucks “demonstrates the absurdity and futility of Icann’s own enforcement processes.” Instead of policing itself, Icann asked the Federal Trade Commission to look into whether the .sucks domain
is abusive. Philip Corwin, a lawyer for the Internet Commerce Association, wrote on the CircleID website: “This is the equivalent of sending a message stating: ‘Dear Regulator: We have lit a fuse. Can you please tell us whether it is connected to a bomb?’
”<o:p></o:p></span></p>
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<span style="color:#333333">Mr. Corwin told lawmakers the U.S. has been a “useful and corrective restraint on Icann” and a “first line of defense against any attempt at multilateral takeover and conversion to a government-dominated organization,” so “should
exercise strong oversight in support of Icann’s stakeholders” in any transition of the contract.<o:p></o:p></span></p>
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<span style="color:#333333">The Internet ain’t broke, and Mr. Obama shouldn’t have tried to fix it. Icann and its stakeholders have spent the past year exhausting themselves on the impossible mission the White House set for them. They were tasked with finding
some way to keep Icann operating with accountability but without U.S. oversight. Unsurprisingly, no one found a viable alternative.<o:p></o:p></span></p>
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<span style="color:#333333">Mr. Obama may be uncomfortable with American exceptionalism, but the Internet since its launch has reflected U.S. values of free speech and open innovation. That is why China, Russia and other authoritarian regimes lust for the power
to control it.<o:p></o:p></span></p>
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<span style="color:#333333">Some stakeholders proposed a new institution to oversee Icann, while others wanted to build more accountability within Icann.<o:p></o:p></span></p>
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<span style="color:#333333">Last week Icann chief Fadi Chehade told the French news agency AFP that China and Brazil agreed with Icann’s proposals to end U.S. oversight and let Icann oversee itself: “It is now up to the community to wrap them up, put them in
a nice little box with a bow and ship them to Washington.”<o:p></o:p></span></p>
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<span style="color:#333333">Even the Obama administration knows Mr. Chehade’s nonaccountability approach is a nonstarter. The .sucks saga shows that Icann won’t protect the Internet from unscrupulous business practices, never mind authoritarian regimes.<o:p></o:p></span></p>
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<span style="color:#333333">The Commerce Department recently asked several stakeholder groups how far past the original September date it would take to propose and implement alternatives to U.S. protection. The Obama administration still acts as if it can give
up the contract overseeing Icann, but it can’t. Congress banned any steps by Commerce to give up the contract before the date in September, when the agreement must be renewed for two more years. This means Mr. Obama’s successor will decide.<o:p></o:p></span></p>
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<span style="color:#333333">The administration should tell Icann and the stakeholders to use the next two years to focus on creating accountability for Icann. If the White House persists in its wrongheaded idea to give up U.S. protection for the Internet, it
should take the precaution of buying up ObamaInternetPlan.sucks.<o:p></o:p></span></p>
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