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Does ICANN’s New Proposed Budget Harm Competition?

Despite the stated commitment to meeting their obligations to the government, ICANN's proposed budget may potentially breach the MoU. Specifically, the MoU commits ICANN to "perform as an organization founded on the principles of competition..." However, an alliance of at least 50 Registrars claims that the new Registrar fee structure contained in the proposed budget would significantly harm competition.  more

An Economic Analysis of Domain Name Policy - Part III

"Competitive Bidding for new gTLDs" is the focus of part three of a three-part series based on a study prepared by Karl M. Manheim, Professor of Law at Loyola Law School and Lawrence B. Solum, Professor of Law at University of San Diego. Special thanks and credit to Hastings Communications and Entertainment Law Journal, Vol. 25, p. 317, 2004. ...When new radio frequencies become available for commercial use, federal law requires that licenses be auctioned off to the highest qualified bidder. The FCC does a reasonably good job in designing and conducting spectrum auctions. They are often familiar in format, not much different than found for consumer goods on eBay. In other cases, such as with "Simultaneous Multiple-Round" or "combinatorial bidding," the auction design is fairly complex. Because of complexity in these cases, the FCC sponsors periodic conferences on auction theory and seminars on auction mechanics for potential bidders. more

An Economic Analysis of Domain Name Policy - Part I

"The Root Server is a Scarce Resource" is the focus of part one of a three-part series based on a study prepared by Karl M. Manheim, Professor of Law at Loyola Law School and Lawrence B. Solum, Professor of Law at University of San Diego. Special thanks and credit to Hastings Communications and Entertainment Law Journal, Vol. 25, p. 317, 2004. ...We begin our analysis of domain name policy with a brief excursion into economics. Economics cannot answer all of the questions raised by domain name policy. First, domain name policy must answer to the discipline of network engineering. A useful domain name system must work, and the functionality, scalability, reliability, and stability of the system are determined by the soundness of its engineering. Second, domain name policy must answer to public policy. The Internet is a global network of networks, and Internet policy is answerable to a variety of constituencies, including national governments, the operators of the ccTLDs, Internet Service Providers, information providers, end users of the Internet, and many others. more

Techies Wanna Do Policy

I'm sure we have all heard a techie or standards body tell legislatures, courts, and business groups to keep their mits off of the internet; that such groups are "clueless" and that they will damage some noumenon or other indistinct, but critical, principle of the internet. Consider, for example, the condemnation of competing DNS roots by ICANN and the IAB. What makes today so interesting is that two well respected techies have stepped forth and made strong social/economic/business policy statements. more

ICANN’s Picture of Itself

ICANN has released its draft new budget. The document gives us a good look at how ICANN sees itself. It's arguably an internally inconsistent view. ...This budget calls for ICANN to have almost 60 staff members by the end of the next fiscal year. Expenses under this budget are predicted to be twice those of last year ($16 million v. $8 million). more

Why Do Chinese Enterprises Ignore the Internet?

Judging from the development of the Internet in the world, the popularity rate of domain names is one of the primary parameters to measure whether the Internet is well developed or not in a country. The popularity rate of domain names is 11 percent in North America and reaches as high as 12.5 percent in Europe, while in China, which has over 20 million enterprises, there are only more than 300,000 domain names under .CN and the total number of domain names is only 1.187 million, including a lot of governmental and individual websites. more

Can Technology Can Spam?

It seems to be impossible to implement a law against spam - unsolicited bulk email - without making a hash of it. At best, anti-spam laws are ineffective; at worst, they cause more problems than spam itself. Can technology fare any better? ...But despite this flurry of initiatives, we are yet to see a definitive answer to the spam problem. An Anti-Spam Technical Alliance has been formed by Microsoft, America Online, Yahoo! and EarthLink, but these companies continue to proffer competing solutions. Meanwhile, the technology being deployed in the spam wars is causing collateral damage, in the form of 'false positives' - email that is incorrectly categorised as spam, and so never reaches its intended recipient. more

JET Guidelines for Internationalized Domain Names

It is difficult to explain RFC 3743 or commonly known as the Joint Engineering Team (JET) Guidelines without some lesson on Chinese, Japanese and Korean (CJK), particularly how it relates to Internationalized Domain Names (IDN). Luckily, an Internet-Draft we wrote back in 2001 discusses the issues quite neatly in this context. In brief, Chinese characters (Hanzi) or Han ideographs are evolved from pictographs (writing made up of pictures) across thousands of years. Unlike other writing systems, Han Ideographs are constantly evolving.  more

To Fight Domain Name Theft: Sex.com Gives Birth to a New Property Right

For those who are Star Wars fans, the following scene from the prequel, Attack of the Clones, will be easy to recall: a young and misinformed Jedi, known as Obi-waan Kenobi, opines about how an army of clones had been able to snatch a victory from imminent defeat. Yoda, a Jedi Master and virtual fountain of wisdom, immediately gushes forth an important correction: "Victory? Victory you say? Master Obi-waan, not victory." Yoda explains that winning a battle is not a victory, if the win merely signals that the war has just begun. Yoda's apparent perception seems particularly apt for the precedent setting federal court opinion involving the sex.com domain name. Notwithstanding that individual domain name registrants may seek comfort in the victory obtained from the Ninth Circuit's opinion in Kremen v. Cohen, that decision merely signals a beginning -- not an end -- to the controversy over the proper legal framework for resolving domain name theft.  more

A Tangled Web

A recent ICANNfocus article discussed the magnitude of ICANN's legal fees. Specifically, ICANNfocus questioned whether the extent of ICANN's legal fees, about 20% of their total revenues, was related to the organization functioning as a regulator instead of simply as a technical manager of the internet.  more