Did ICANN lose its financial independence? Can it reinstate the
Intellectual Infrastructure Fund?
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www.bode.com/nsi
Washington, D.C., May 1, 1998 -- Late last night the U.S.
Congress voted for the first Internet tax in history. The Emergency
Supplemental Appropriations Bill (H.R. 3579) contains a provision
retroactively ratifying the portion of Internet Domain Name
Registration fees which a U.S. Federal District Court had declared
unconstitutional. On April 6, 1998, U.S. District Court Judge
Thomas Hogan had ruled that the 30% of Internet Domain Name
Registration fees which were set-aside for the "Intellectual
Infrastructure" Fund were unconstitutional taxes. The Judge then
"froze" the monies in the Fund, which total approximately $55
million. During a closed Conference Committee meeting on the
Emergency Supplemental Appropriations Bill, a provision was
added at the request of the Administration which retroactively
ratified the Internet fees found by Judge Hogan to be
unconstitutional. The Senate and House approved the Emergency
Supplemental Appropriations Bill (H.R. 3579) without ever seeing a
copy of this language in the Bill. The effect of the vote is to
appropriate all the monies in the Intellectual Infrastructure Fund for
the support of networking activities, including the Next Generation
Internet.
Howard Sartori, President of the American Internet Registrants
Association, called the tax an "unfortunate and ill-advised taxing
milestone." Sartori said: "It is incomprehensible that the Congress
would ratify an unconstitutional tax and authorize retroactively
Internet taxes. This is doubly so when it is appreciated that the
Administration has just asked Congress to place a moratorium on
all Internet taxes." Sartori added that the ratifying language
apparently resulted from collusion between certain Hill staffers and
the National Science Foundation. "I don't know of one Senator who
even saw the language imposing the tax or even knew about it,"
declared Sartori.
William Bode, the Washington attorney for the class of Internet
Domain Name Registrants who filed the lawsuit, stated that he will
review the ratifying language to determine whether it satisfies the
rigid standards required for ratification. "As a general matter,
Congress can only ratify unconstitutional taxes through general
bills, not appropriation bills," Bode stated. "We have been unable
to examine the ratifying language because the Bill has not yet
been even printed."
Bode said that the Internet Plaintiffs would appeal the portion of
Judge Hogan's April 6, 1998, Order which dismissed the claims
against Network Solutions, Inc. "The Order states that NSI is
absolved of antitrust liability because it is a federal agent, and
immune to the requirements of the Constitution and federal statute
because it acted as a private party. Obviously, both assertions can
not be true." Bode said he expects to appeal immediately when the
Court enters its final judgment.
For more information, contact Mr. Bode (202-862-4300) or Mr.
Sartori (202-917-2935). You may also contact AIRA via email at
[EMAIL PROTECTED]
Bode & Beckman, L.L.P.
1150 Connecticut Avenue, N.W., Ninth Floor
Washington, D.C. 20036-4192
Phone: 202-828-4100 Fax: 202-828-4130
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Is there an AIRA representative in the house?
The AIRA website says,
"Certain non-profit companies, international organizations, quasi-
public groups, and private corporations are vying for the right to
charge for control over the domain name process and for publicly-
owned Internet Protocol (I.P.) addresses.
The one voice that has not been heard is that of the Internet
Domain Name Registrant and User. The AMERICAN INTERNET
REGISTRANTS ASSOCIATION (AIRA) intends to change this and
become the voice of those who have the most at stake."
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kerry
