The role of the USG has been to fund certain technical, administrative activities through the National Science Foundation. It has been a silent partner, providing no direct impact on the stability, protocols or operations of the Internet. This has been widely documented in various Requests for Comment and other agreements, including its cooperative agreement with NSI signed in 1992 which recognized IANA as having the discretionary authority over TLDs. Internet Standards established by the Internet Engineering Task Force (IETF), Internet Architecture Board (IAB) and Internet Engineering Steering Group (IESG) provide proven precedents for operating the technical aspects of the Internet without government oversight.

The U.S. Government has been visibly absent from involvement in the Domain Name System until it began contemplating the end of the five-year contract with Network Solutions, Inc. (NSI) and raised the issue to its highest political level, with the White House.

The end to NSI's role of profit-oriented .com/.net/.org registry has no stability implications. Rerouting can be handled routinely and seamlessly, as proven during recent tests at IANA. Its ongoing experience with country codes demonstrates how hundreds of new domains can be added with no concern for stability.

The Internet has grown and served people well all over the world because it has been driven by consensus and without government interference. The most responsible thing the U.S. Government can do is end its contract with NSI on March 31, 1998, facilitate transition of complete authority for the Root zone to IANA, reassert IANA’s authority over the existing TLD registrars, including NSI, ensure that the software and information collected by NSI during its Cooperative Agreement are fully accessible to the public, encourage competition by eliminating subsidies or favored treatment for NSI and abandon any attempts, however well intentioned, at creating new and unnecessary regulatory bodies.

Sufficient oversight is provided through the generic Top Level Domain Memorandum of Understanding (gTLD-MoU) and a structure that includes the Policy Oversight Committee and the Policy Advisory Body, with ongoing input from the world Internet community and a separate dispute resolution process through the World Intellectual Property Organization. Such a change would have no impact on stability and, given widespread international participation, could enhance it.

CORE and Internet experts from around the world agree with this statement regarding market forces and competition. However, the Green Paper doesn’t propose actions to support this philosophy. Instead, it calls for the perpetuation and consolidation of the NSI monopoly, adding new monopolies owning single TLDs and ignoring the gTLD-MoU process, which provides solutions to most of the issues outlined in the Green Paper.

The success of the Internet should be allowed to continue unabated and unhindered by unnecessary government intervention, by any government.

The U.S. Government discusses the need for a bottom-up approach, then flip-flops to provide top-down directions of great detail.

The IANA and ISOC recognized the need for bottom-up consensus when they launched the International Ad Hoc Committee (IAHC) process with the support of organizations throughout the world. CORE/POC evolved from this bottom-up process, which continues as CORE prepares to add more registrars, open up the CORE Memorandum of Understanding for further public comment and provide its Shared Registry System to any other qualified not-for-profit registry. Rather than create something out of whole cloth, the U.S. Government can use the CORE bottom-up model to speed the transition in the spirit of global consensus.

Many mechanisms exist, such as those established by IANA, the Internet Engineering Task Force (IETF), Internet Architectural Board (IAB) and the Internet Engineering Steering Group (IESG). As outlined in RFC 2026, "The Internet Standards Process," the procedures are designed to be fair, open and objective; to reflect existing (proven) practice; and to be flexible. Through the rigorous consensus-building process carried out by the International Ad Hoc Committee, broad representation from the global Internet community created a generic Top Level Domain Memorandum of Understanding (gTLD-MoU), providing specific standards for Registry and Registrar functions. There is no need for additional mechanisms at this time. Broad global interests will continue to cooperate and provide a collective body of expertise that far surpasses what would be available from a single entity. Should there be a future need for new mechanisms, the mechanisms should evolve from the existing consensus-building processes.

CORE’s survey of the global Internet community found general consensus on need for the creation of a "new IANA," an independent not-for-profit organization. Since the change is really only one of corporate structure, or form rather than function, there is no need to perpetuate the NSI monopoly while waiting for a new corporate structure to become official. IANA is fully capable of continuing to carry out all duties required as designated authority for the Root zone and executing the many critical steps necessary to introduce competition and provide for stable expansion of the number of TLDs.

IANA can add new TLDs to the Root zone today, immediately launching a new era of competition. The transition can be seamless and painless. There is no need for U.S. Government "policy oversight," since IANA performed admirably without it in the past. The only thing needed from the U.S. Government is for it to stop funding IANA and allow it to move forward as recommended in the IANA plan of January 1998 and with the support of the Internet Society, IETF, IAB, IESG, CORE and other interested parties from the Internet community.

This bottom-up approach should also determine the makeup of the board of directors of IANA, its bylaws, policies, procedures, funding and other details. The evolution should not rely on a top-down artificial structure dictated by the U.S. Government or any other government. The Green Paper mentions some concerns about "premature government exit." This is a myth, except with vested interests, such as the current monopoly, NSI, which welcomes continuation of the status quo. The Internet community is more concerned with unnecessary government involvement rather than premature government exit.

CORE, the Internet Society, Educom, European Union and many other organizations believe Registries should be operated as non-profit and in the public trust. Since registries are largely administrative, back-office operations, there is no need to compete. They have little, if anything, to offer in added value for customers, since customers would deal with Registrars.

The concept of establishing single gTLD registries as new parallel monopolies would cripple competition. Registries operating in an unregulated environment as proposed by the Green Paper would own gTLDs rather than simply administer them, opening the way for predatory pricing practices and gouging. Users would have zero portability of their names and would have to either pay or abandon them. It is unlikely someone wanting a .com or .biz TLD would opt for .tree even if the monopoly registries were price gouging. Single gTLD registries would have no need to market or innovate and would be almost totally insulated from market pressures. The Green Paper talks about supply-side competition but ignores the demand side. It also misses the difference between two separate markets: initial Secondary Level Domain (SLD) registrations, and renewals.

As long as one wanted to keep his or her domain name, there would be no option but to pay whatever the Registry charged. This potential "monopoly lock-in" must be avoided at all costs. Today’s $35 renewal fee could become next year’s $350 renewal in a monopoly situation.

Addresses should be owned by the individual and be fully portable among Registrars, just as one moves a surname and phone number from one long-distance telephone company to another. If a registry is operated as a non-profit organization and with a Shared Registry System (SRS) for multiple domains, users could shop among registrars for the best prices and service. The gTLDs should be like the oceans, the moon or the sky – open to everyone and owned by no one.

As noted earlier, proven systems and procedures are in place to ensure the stability of the Internet. Comments by the IAB and other technical experts indicate there should be no concern with adding multiple new gTLDs. Dr. Jon Postel, of IANA, originally proposed adding up to 150 to provide more choices for users worldwide. The number of new gTLDs should be determined based on evaluation by IANA and customer need, not artificial mechanisms. The IAB noted there is no technical reason for the proposed limit of one gTLD per registry. The seven gTLDs proposed by CORE were selected by POC based on an international consensus developed independently of CORE.

The scarcity of gTLDs proposed in the Green Paper would enhance the monopolistic power of each profit-oriented registry. With few gTLDs, the best strategy for profit-oriented registries would be to charge monopolistic prices from the start because price increases might be difficult and the price competition will only start as soon as a wide choice of gTLDs appears.

Giving each registry a maximum of one start-up gTLD would be anti-competitive when the current NSI monopoly is allowed to keep three. From an investment standpoint, running a single gTLD radically increases capital and operational costs per gTLD for all except NSI. Many single gTLDs would not be popular enough to support a monopoly registry, resulting in significantly higher costs for users or the potential failure of small registries. Today’s software and hardware provide the capability of handling hundreds of TLDs on the same machine for maximum efficiency.

The Green Paper notes that different Registries could have different policies, data format, protocols and design interfaces. This could lead to instability and confusion. On the other hand, there will be significant cost savings and improved efficiencies and effectiveness from having a Registry administer multiple gTLDs.

CORE has developed the software for a Shared Registry System that provides a technically advanced interface for Registrars and instant online confirmation of domain registrations. The benefits of a SRS with multiple gTLDs include: lower costs, standardized and reliable service, stability and international portability. The CORE SRS is undergoing acceptance testing and load-testing for production use. Registrars have interfaced their systems with the SRS and are ready to begin live user registrations from servers on five continents.

Competition among Registrars is useful and desirable. It allows users to choose different suppliers for the same goods he or she wants. The CORE model puts power in the hands of the consumer. The non-profit Registry runs on a cost-recovery basis and Registrars compete on the price and efficiency of their administrative work and any other services that provide added value.

The gTLD-MoU and CORE MoU can provide the ethical foundations for new Registrars. It has been signed by more than 200 organizations from throughout the world. It eliminates many of the problems that could be experienced with a for-profit Registry of a single gTLD and a captive group of Registrars. Among the potential abuses, the MoU addresses "cybersquatting," where an entity grabs multiple SLDs and then attempts to charge whatever the traffic will bear to the individual who wants the name. It deals with other issues raised by the Green Paper, such as providing a legislative framework for registrars, independent oversight (POC) and acting with the advice of an independent and open body, the Policy Advisory Body (PAB).

Multiple rules for identical problems will cause confusion, create worldwide chaos and a full-employment act for trademark attorneys. Such a random approach would maximize rather than minimize the potential for litigation.

Under the gTLD-MoU, dispute resolution can be handled quickly and effectively with binding arbitration administered through the Domain Name Arbitration and Mediation Center under the World Intellectual Property Organization. The WIPO provides a Domain Name Challenge Panel so intellectual property owners have the ability to exercise their rights in a world forum through an independent process. The process involved full and repeated consultation with relevant public sector and private sector stakeholders in the trademark field, public vetting and applying the rules decided by POC under the advice of the PAB. By working with WIPO, the International Ad Hoc Committee laid the foundation to deal with the complex worldwide issues surrounding copyrights, patents and other intellectual property issues. The jurisdiction should lie with country of the registrar as is noted in Appendix C of the MoU. This solution best enables registrants to be subject to their own laws while leaving room for competition and oversight (registrants must be in countries that are bound by basic international treaties regarding intellectual property).

On the NSI Agreement, there is no need for a ramp down. The U.S. Government can easily end the agreement March 31, rather than delay the transition to self-governance. NSI can propose to IANA to operate a not-for-profit shared registry system. The domains of .com, .org and .net could also be administered through CORE, which would increase efficiencies and lower costs for registrants.

As noted earlier, IANA can operate during the transition period exactly as it is. Rather than creating the new corporation with a U.S. business model, with board and CEO, invoke the bottom-up program from IETF. The U.S. Government hasn’t been involved in the DNS in the past, doesn’t need to be in the future and only needs to take no action to be successful.

In terms of potential liabilities for IANA in the transition process, CORE announced in January that it would indemnify IANA against liabilities so the transition process can move forward unabated.

The U.S. Government has given favored status to NSI for the past five years and the Green Paper preserves NSI in the commanding position of being Registry and Registrar with a thin veil between them, managing three highly-valued gTLDs as a monopoly. NSI has its own oversight authority and conflict-resolution body. Giving NSI these incompatible roles would be the equivalent of giving a securities exchange a monopoly to trade the most liquid stocks, letting it own some of its members and allowing it to run its own Securities and Exchange Commission.

That done, the GP then proposes to create five weak net entities, each limited to one hitherto unknown gTLD, to also be managed as monopolies.

It would be difficult to imagine creating a more effective system to assure the success of NSI and the failure of most if not all of the new registries. The U.S. Government, in essence, is providing a continuing subsidy and sponsorship of a private corporation while limiting, or delaying, the introduction of competition.

The Memorandum of Understanding, hammered out over many months by the stakeholders, provides a solid standard for ethical and professional performance. IANA, POC and PAB can establish an ongoing review process for further requirements, if needed at all.

CORE Registrars are strictly prohibited from warehousing or cybersquatting, specifically "registering SLDs for their own account or for accounts of an Affiliate for the purpose of trafficking in SLDs for sale, resale or transfer to applicants." CORE believes that such a provision is essential to the self governance of the Internet. The regulatory oversight of the gTLD-MoU process provides for self-regulation of the Internet through international consensus of the stakeholders, a broader and more efficient process than could be accomplished by any government.

As with other recommendations of the Green Paper, there is no need for government involvement in this process. Nor is NSI a stakeholder in the Root server. The processes and procedures of the IETF, IAB, and IESG as non-profit, open-membership, consensus-oriented volunteer organizations can oversee this process for the ultimate benefit of all concerned.

CORE applauds the U.S. Government for recognizing "that its unique role in the Internet domain name system should end as soon as is practical" and in a responsible manner that preserves the stability of the Internet. Its stated goal is to seek as strong a consensus as possible so that a new, open, and accountable system can emerge that is legitimate in the eyes of all Internet stakeholders. However, it proposes to take over the process.

The Green Paper talks about self-governance and the U.S. Government stepping down, but its recommendations do the opposite. It proposes to end U.S. Government stewardship over the Domain Name System (DNS) and open the Internet to self-governance and international competition. Instead, the Green Paper would insert the U.S. Government into a policy oversight role over the worldwide DNS system and create new and unnecessary regulatory bodies and artificial market mechanisms. It would also perpetuate the NSI monopoly and give NSI significant competitive advantage with three domains, while limiting other Registries to one each.

The widely held view among the world Internet community is that instead of getting the U.S. Government out of the Internet quickly and painlessly, the Green Paper inserts its agencies more deeply than ever before and puts unnecessary road blocks in the way of deregulation and global growth. Some in the international Internet community view the Green Paper as an attempt by the U.S. Government to claim ownership of the Internet. This has been documented in papers from the European Union, government of Australia, France Telecom and others.

In summary, no one owns the Internet. The Internet Architecture Board described it: "The Internet, a loosely organized international collaboration of autonomous, interconnected networks, supports host-to-host communication through voluntary adherence to open protocols and procedures defined by Internet Standards." The Internet has grown exponentially and thrived from consensus-building and cooperation and without government intervention.

Many of the issues raised by the Green Paper have been addressed and resolved through the gTLD-MoU process over the past 18 months. These include: adding competition to domain name registration; establishing a mechanism for resolving conflict between trademark holders and domain name holders; recognizing the growing percentage of users outside the U.S. and giving them a larger voice in the process; developing a system that is accountable to the Internet community; and supporting the evolution of the Internet as a commercial medium.

The technical and mechanical aspects have been handled professionally and well, with global consensus and cooperation and through volunteer groups, such as the IETF, IAB, IESG and others. The existing Internet Standards Process ensures an open, public debate on the issues and wide review before modifications occur. IANA has proposed a transition plan, which is widely supported and moving forward in the Internet tradition -- without the need for government involvement.

The U.S. Government has been a silent financial partner in the DNS. Its has funded activities for administering the authoritative Root server through the Internet Assigned Numbers Authority and Network Solutions, Inc. (NSI). IANA has managed the DNS for some 15 years without government oversight. The U.S. Government launched the Green Paper process because it will cease funding IANA and NSI and will not recompete the five-year contract with NSI which ends March 31, 1998.

The U.S. Government has no authority to regulate the DNS system. The references to the U.S. Code in the Green Paper relate to government policy on domestic and foreign commerce in general and don’t authorize regulation of a global system such as the Internet.

The steps proposed in the Green Paper to regulate the DNS, if implemented, would be subject to immediate legal challenges and create chaos instead of cooperation. The concept of protecting an existing monopoly and creating new ones also raises many constitutional and anti-trust issues, which would be better dealt with by constitutional and anti-trust attorneys.

The draft discusses the Administration's proposed transition from government oversight to private enterprise and largely outlines a process already completed by the International Ad Hoc Committee (IAHC), the Policy Oversight Committee (POC), the Policy Advisory Body (PAB) and CORE to develop competition.

As noted in the Green Paper, the President directed the Secretary of Commerce to privatize, increase competition in, and promote international participation in the domain name system. The U.S., as the global champion of free enterprise, can achieve this by making one of the most difficult decisions facing any regulatory body: ending, rather than initiating, government involvement.

The U.S. Government can ensure the rapid transition to competition and greater choices for users everywhere. It can provide leadership in creating a new system with not-for-profit Registries and broad choices of domain names immediately available in a competitive environment. It can facilitate the end of the monopoly situation on March 31, 1998, and the smooth transition to a level playing field, with technical oversight provided by a new non-profit IANA.

Based on input from Internet and regulatory experts around the world, CORE recommends the following eleven steps that can be taken for immediate evolution of the Domain Name System to a new era of self governance and competition. The steps involve cooperation on many levels and continuing the processes already under way. If adopted, the plan will enable the U.S. Government to achieve its stated goals efficiently, effectively, quickly, with minimum interference and within the spirit of global consensus.