EDUCAUSE WASHINGTON UPDATE --- AUGUST 27, 1999

DNS PRIVATIZATION:

ICANN APPROVES COMPROMISE WITH DOMAIN NAME DISPUTE RESOLUTION PLAN AS HOUSE
COMMERCE COMMITTEE CHAIR INITIATES INVESTIGATION OF FUNDRAISING ACTIVITIES

DNS PRIVATIZATION

ICANN APPROVES COMPROMISE WITH DOMAIN NAME DISPUTE RESOLUTION PLAN AS HOUSE
COMMERCE COMMITTEE CHAIR INITIATES INVESTIGATION OF FUNDRAISING ACTIVITIES

Controversy continues to haunt the Internet's new administrative body as it
wrapped up a series of meetings yesterday in Santiago, Chile. The interim
ICANN board adopted a proposal - still subject to review by the Internet
community - to reconcile domain name disputes.

The new policy will address disputes between different parties that want the
same domain name, as well as cybersquatting.  All disputes involving
trademarks will be referred to mandatory arbitration. Once approved, the new
policy is to be written into all domain name registration contracts.

Earlier in the week a group of noncommercial interests petitioned the ICANN
board to delay its vote on the new policies, citing concerns that the
definition of cybersquatting was too broad and that the interests of large
corporations would inhibit free speech and the rights of individuals to
domain names. ICANN decided to appoint a group within 45 days to determine a
more narrow definition of cybersquatting and to ensure that everyone
involved in domain name disputes are treated fairly. Groups representing
both trademark owners and noncommercial interest groups appear to be
satisfied with the compromise.

The ICANN board also agreed to "provisionally" recognize the Non-commercial
Domain Name Holders constituency of the Domain Name Supporting Organization
until the board's meeting this November.  A petition to create another group
representing individuals' policy interests was rejected by the board for a
second time, but it promised to reconsider the issue in November.

Whether ICANN will be able to continue its work beyond November is a matter
of worry.  ICANN is reportedly close to $1 million in debt and is
undertaking an international campaign to raise $2 million to cover operating
expenses.  Supposedly, ICANN has received unsecured loans from MCI and Cisco
Systems of half a million and $150,000 respectively.  ICANN says it needs $1
million more to pay off existing debts and continue operations through
November.  However, ICANN's fundraising activities have raised the eyebrows
of the House Commerce Committee Chairman Rep. Thomas Bliley (R-VA). In a
letter dated August 18 to ICANN chairman Esther Dyson, Bliley questioned
ICANN's financial viability and the possible involvement of White House
staff in ICANN fundraising activities. In his letter, Bliley requests that
ICANN provide the committee with all communications between the White House,
a detailed summary of ICANN's debt, and a detailed account of which parties
ICANN has received funding.

The chairman's focus on ICANN's finances is not surprising; his staunch
opposition helped derail ICANN's $1 per registration fee proposal.

For more information on the Santiago meeting you may access the ICANN
website at <http://www.icann.org/>

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