After all of ICANN's saber rattling about how it would bing the NSI 
to heel and through measures ranging up to and includng rebid of the 
cooperative agreement by sept 30 next year in order to put NSI  out 
of business, we have now a deal where, thanks to DoC and ICANN, NSI 
has managed to get its security guaranteed.  For example:

" ICANN's authority to set policy for the registry may be terminated 
if Department of Commerce concludes that ICANN has not made 
sufficient progress towards entering into agreements with other 
registries and NSI is competitively disadvantaged."

ICANN has also seen to it that NSI is furher enthroned by stipulating 
that come jan 15, 2000
" NSI will be entitled to establish its own prices for registrar 
services (the Cooperative Agreement currently requires  NSI to charge 
$35 per year for those services). "

W ho here thinks that with NSI's move  web based registration and 
payment up font policies it has not now established the economy of 
scale to put competing registrars out of busness  by charging say 
$17.50 a year instead  of $35?

ICANN's trade mark lobby has insisted on a uniform right to strip 
domain name holders of their domains, so price is the only 
disciminator left in the maket.  NSI would be foolish not to weild 
the price lever wih a vengeance and thereby put the finishing touches 
on whatDoC already has created -- an ICANN NSI cartel.

But now the other part of this picture also begins to come into 
focus. This is the curious insistence of folk like Vint Cerf, John 
Patick and Dave Farber to say that if ICANN does not succeed, the 
Internet and electonic commerce will fail.  When asked for a thorough 
and reasoned explanation of why none of these men have an answer.  I 
suspect that I know why.  The answer is that the authority for DNS, 
IP number allocation and port assignment rested not in law but in the 
consensual agreement of the Internet community with Jon Postel.  Now 
Postel is gone. The department of commerce without a shred of legal 
authority to do so has stepped up to and asserted like General Haig 
that it is in control now.  It will hold the reigns of power until it 
can turn them over to ICANN.  This is why ICANN must not fail because 
it would them be revealed  to the world and especialy to investors in 
the high flying Internet stocks that no signle legal authority 
existed over the operaton of the Internet's address system.

Network Solutions had the financial and legal muscle to bring a court 
case challenging DoC's auhority. Therefore, ICANN and DoC had no 
choice but to give in and guarantee Network Solution's future. 
Behind the scenes in Washington a frenzied search for anything that 
could be used to grant DoC authority over the DNS and the other IANA 
functions has been carried out.  It has been a failure. 
Consequently, Cerf, Farber, and Patrick plead that ICANN must finish 
the task, but are silent when asked why.  They simply cannot afford 
to call attention to the fact that the king at commerce has no 
clothes.  With a naked king, they are despirate to clothe the ICANN 
crown prince until it can transfer power.

Part 2 of this post is a legal anaysis by Glenn manishenn of why DoC 
has no authority.
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