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<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=left><FONT face="Times New Roman" size=3><SPAN
class=856265520-04062009>FYI, this report has just been prepared for posting at
the ICA website, <A
href="http://www.internetcommerce.org">www.internetcommerce.org</A>.</SPAN></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><B style="mso-bidi-font-weight: normal"><FONT
color=#000000>Congressional ICANN Oversight Hearing Has A Bipartisan Theme
–<o:p></o:p></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><B style="mso-bidi-font-weight: normal"><FONT color=#000000>It’s
Too Soon To End <st1:country-region w:st="on"><st1:place
w:st="on">U.S.</st1:place></st1:country-region>
Oversight<o:p></o:p></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><B style="mso-bidi-font-weight: normal"><o:p><FONT
color=#000000> </FONT></o:p></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><B style="mso-bidi-font-weight: normal"><o:p><FONT
color=#000000> </FONT></o:p></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT
color=#000000>On Thursday, June 4<SUP>th</SUP> the House Subcommittee on
Communications, Technology and the Internet held an oversight hearing on “Issues
Concerning the Internet Corporation for Assigned Names and Numbers”. The hearing
was remarkable in a number of ways. First, given the technically arcane nature
of its subject, the turnout was spectacular – more than half the Subcommittee’s
members on a morning when other hearings competed for their attention, and a SRO
crowd in the very large hearing room of the full Energy and Commerce Committee.
Second, there was remarkable bipartisan agreement expressed, with Member
sentiments falling on a continuum between extreme concern and “over our dead
bodies” as regards the prospect of termination of the Joint Project Agreement
(JPA) between the <st1:country-region w:st="on"><st1:place
w:st="on">U.S.</st1:place></st1:country-region> and ICANN on September
30<SUP>th</SUP>.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><o:p><FONT
color=#000000> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT
color=#000000>The witnesses appearing before the Subcommittee were:</FONT></P>
<UL style="MARGIN-TOP: 0in" type=disc>
<LI class=MsoNormal
style="MARGIN: 6pt 0in; COLOR: #333333; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify; mso-list: l0 level1 lfo1; tab-stops: list .5in">Fiona
Alexander, Associate Administrator, Office of International Affairs, National
Telecommunications and Information Administration, <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
Department of Commerce <o:p></o:p>
<LI class=MsoNormal
style="MARGIN: 6pt 0in; COLOR: #333333; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify; mso-list: l0 level1 lfo1; tab-stops: list .5in">Paul
Twomey, Ph.D., President and CEO, ICANN <o:p></o:p>
<LI class=MsoNormal
style="MARGIN: 6pt 0in; COLOR: #333333; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify; mso-list: l0 level1 lfo1; tab-stops: list .5in">Kenneth
J. Silva, Senior Vice President and Chief Technology Officer, VeriSign
<o:p></o:p>
<LI class=MsoNormal
style="MARGIN: 6pt 0in; COLOR: #333333; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify; mso-list: l0 level1 lfo1; tab-stops: list .5in">Christine
N. Jones, General Counsel and Corporate Secretary, The Go Daddy Group, Inc.
<o:p></o:p>
<LI class=MsoNormal
style="MARGIN: 6pt 0in; COLOR: #333333; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify; mso-list: l0 level1 lfo1; tab-stops: list .5in">Sarah
Deutsch, Vice President & Associate General Counsel, Verizon
Communications <o:p></o:p>
<LI class=MsoNormal
style="MARGIN: 6pt 0in; COLOR: #333333; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify; mso-list: l0 level1 lfo1; tab-stops: list .5in">Thomas
M. Lenard, Ph.D., President and Senior Fellow, Technology Policy Institute
<o:p></o:p></LI></UL>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">All witness statements as well as streaming video are
available at <A
href="http://energycommerce.house.gov/index.php?option=com_content&view=article&id=1642:energy-and-commerce-subcommittee-hearing-on-oversight-of-the-internet-corporation-for-assigned-names-and-numbers-icann&catid=134:subcommittee-on-communications-technology-and-the-internet&Itemid=74"><FONT
color=#800080>http://energycommerce.house.gov/index.php?option=com_content&view=article&id=1642:energy-and-commerce-subcommittee-hearing-on-oversight-of-the-internet-corporation-for-assigned-names-and-numbers-icann&catid=134:subcommittee-on-communications-technology-and-the-internet&Itemid=74</FONT></A>
.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">Subcommittee Chair Rick Boucher stated at the onset that
the hearing would focus on whether ICANN had become sufficiently transparent and
accountable to let the JPA terminate; and concerns regarding the proposed
introduction of new gTLDs – including enhanced competition, brand protection,
and stability and security. Other Subcommittee members used their opening
statements to raise concerns about ICANN’s burgeoning budget and staff; question
ICANN’s priorities and whether it really cared about average Internet users;
express the view that full independence would threaten national and global
cybersecurity; and note the possibility of potential capture by the ITU or other
entities. While several Members noted that ICANN’s performance has improved, the
prevailing view was that JOA termination was premature and that at least short
term extension, coupled with some modification of terms, was in order.
<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">Fiona Alexander performed the thankless task of
delivering the Department of Commerce’s views while new Assistant Secretary for
Communications and Information Lawrence Strickling awaits Senate confirmation.
Not only was she a stand-in but she could not indicate the Obama
Administration’s position on JPA extension because that is not fully developed
(and even if a decision has been made, it could hardly be announced in advance
of the June 8<SUP>th</SUP> closing of the public comment period that is supposed
to inform and influence the decision). We were concerned by language in her
prepared statement noting that even if the US does not extend the<SPAN
style="mso-spacerun: yes"> </SPAN>JPA it will still participate in ICANN’s
Governmental Advisory Committee (GAC) and will also be able to file comments in
ICANN’s public consultation processes – Mr. Strickling made a similar
observation at his Senate confirmation hearing, but these are hardly reassuring
words for those who are familiar with ICANN decision-making processes, and most
certainly do not equate to a formal oversight role.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">Paul Twomey, whose departure as CEO later this year is
already public knowledge, made his usual case for JPA termination to a highly
skeptical Congressional audience – adding the new twist that an extension of
<st1:country-region w:st="on"><st1:place
w:st="on">U.S.</st1:place></st1:country-region> oversight would indicate a lack
of confidence in its private sector model and therefore encourage the
international community to propose alternatives. None of the Subcommittee
members appeared swayed by it.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">Most telling, perhaps, were the positions taken by
ICANN’s largest registry and registrar contract parties, VeriSign and GoDaddy.
Ken Silva noted that “while ICANN has continued to make progress in certain
areas…the basic circumstances giving rise to widespread community concerns over
the expiration of the JPA remain largely unchanged and further progress is
critical prior to an expiration of the agreement and end to all governmental
oversight of ICANN.” Christine Jones was even more blunt: “ICANN has not yet
achieved competition, nor the private, bottom-up coordination and representation
called for in the ICANN bylaws. The JPA between ICANN and the Department of
Commerce should be extended or modified, or renewed and modified, to stress the
need to correct these deficiencies and require a clear roadmap from ICANN as to
how it will regain the confidence of the community on which its existence
relies…Unfortunately, ICANN has yet to commit to or is unable to commit to
openness, transparency and accountability.” When your largest business partners
take you to this type of task in front of Congress you really have major
problems.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">The temperature in the hearing room rose by several
degrees once the prepared statements were completed and questioning began.
Chairman Boucher found it particularly disturbing that ICANN had never taken
action against an accredited registrar engaged in cybersquatting. Ranking
Republican Cliff Stearns honed in on ICANN finances, questioning whether ICANN’s
fees, budget and staffing were consistent with its non-profit status, as well as
what ICANN would do with the more than $90 million in application fees for new
gTLDs it anticipated receiving. Former full Committee Chair John Dingell
resurrected the issue of the .com contract, with Christine Jones weighing in
that the manner in which it was reached was “not transparent”. Multiple Members
questioned whether new gTLDs would truly introduce new competition and if ICANN
was adequately addressing the problems they might
introduce.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">The hearing ended with Chairman Boucher noting that the
record would be kept open for thirty days and that ICANN could anticipate
receiving additional written inquiries.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">What does all this mean for the termination or extension
of the JPA? Too much should not be read into this particular episode because
many Congressional hearings involve dramatic<SPAN
style="mso-spacerun: yes"> </SPAN>posturing and it is the Obama
Administration, not Congress, which will make the ultimate call. But the strong
bipartisan concern about the inconsistency of ICANN’s rhetoric with the reality
of its performance is hardly confined to this Subcommittee – on May
19<SUP>th</SUP>, Senators Olympia Snowe and Bill Nelson, both serving on the
Senate Commerce Committee, sent a joint letter to Commerce Secretary Gary Locke
expressing the view that “ICANN has considerable work ahead to reach the point
where it can stand alone as a stable, accountable, transparent and, most
importantly, secure global organization” and essentially endorsing the view that
the JPA be at least temporarily extended “to allow time to design and deploy new
accountability mechanisms for ICANN”. Post-hearing press reports indicate that
Chairman Boucher will be joining other Committee members in their own letter to
the Commerce Department recommending a one-year extension.<o:p></o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333"><o:p> </o:p></SPAN></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><SPAN
style="COLOR: #333333">In short, if the Administration permits the JPA to
terminate in less than four months it is on clear notice that such actions will
unleash a strong bipartisan backlash from the other end of <st1:Street
w:st="on"><st1:address w:st="on">Pennsylvania
Avenue</st1:address></st1:Street>.</SPAN><SPAN
style="COLOR: #333333; mso-bidi-font-size: 9.0pt"><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><o:p><FONT
color=#000000> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><FONT face=Arial color=#000000
size=2></FONT></SPAN></FONT></FONT> </P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><FONT
size=3><FONT face="Times New Roman"><SPAN
style="COLOR: #333333"></SPAN></FONT></FONT> </P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><FONT
size=+0><SPAN style="COLOR: #333333"></SPAN><SPAN
style="COLOR: #333333; mso-bidi-font-size: 9.0pt"><o:p><SPAN
class=856265520-04062009><FONT face="Times New Roman"
size=3>***************************************</FONT></SPAN></o:p></SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN: 6pt 0in; LINE-HEIGHT: 15.6pt; TEXT-ALIGN: justify"><FONT
face="Times New Roman" size=3><SPAN
style="COLOR: #333333; mso-bidi-font-size: 9.0pt"><o:p><SPAN
class=856265520-04062009>In addition, this report appeared in this asfernoon's
Congress Daily--</SPAN></o:p></SPAN></FONT></P>
<P>
<P>HILL BRIEFS: HOUSE PANEL SEEKS EXTENSION OF ICANN OVERSIGHT</P>
<P>Technology. House Energy and Commerce Communications Subcommittee members
today called for an extension of the U.S. government's oversight agreement with
the nonprofit that administers the Internet domain name system. The deal is
currently slated to expire Sept. 30. The Internet Corporation for Assigned Names
and Numbers is "far from a model of effective and sustainable self-governance,"
and it would be unwise to shrink the government's role, said Rep. John Dingell,
D-Mich. House Energy and Commerce Communications ranking member Cliff Stearns,
R-Fla., plus Reps.</P>
<P>Mike Doyle, D-Pa., John Shimkus, R-Ill., and Lee Terry, R-Neb., support
prolonging the arrangement between ICANN and the National Telecommunications and
Information Administration, citing transparency and accountability concerns.
House Energy and Commerce Communications Subcommittee Chairman Rick Boucher,
D-Va., is reportedly drafting a letter to NTIA with Stearns and Energy and
Commerce ranking member Joe Barton that recommends a one-year extension. At the
hearing, ICANN President Paul Twomey pointed out that a separate but related
NTIA-ICANN contract will not sunset. He also warned that extending the joint
project agreement would signal that the U.S. government does not have faith in
ICANN's model.</P>
<P></SPAN><A
href="http://www.nationaljournal.com/congressdaily/hbp_20090604_9808.php"><U><FONT
color=#0000ff size=2><FONT color=#0000ff size=2><SPAN
lang=EN>http://www.nationaljournal.com/congressdaily/hbp_20090604_9808.php</U></FONT></FONT></SPAN></A></P>
<P></P></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><SPAN class=856265520-04062009><FONT face=Arial size=2>Finally, an
excellent series of blogs from the hearing appear at <A
href="http://domainnamewire.com/category/policy-law/">http://domainnamewire.com/category/policy-law/</A> under
the heading "Congress Beats Up ICANN".</FONT></SPAN></DIV>
<DIV><SPAN class=856265520-04062009></SPAN> </DIV>
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