Open Letter To The Board Of Directors - Internet Corporation For Assigned Names And Numbers

Dear ICANN and Members of the ICANN Board:

In just five months, since the Association of National Advertisers formed the Coalition for Responsible Internet Domain Oversight (“CRIDO”) and organized the global constituencies that have partnered and irrefutably shown that serious problems with ICANN’s proposal to open the DNS to unlimited TLDs remain unresolved despite years of deliberation by ICANN. It is clear that should ICANN proceed without heeding the calls of these constituencies for improvements and reform, the result will be irreparable damage to countless stakeholders, including the global law enforcement community, NGO’s, IGO’s, consumers and brand owners in the commercial sector. Yet, despite the unprecedented groundswell of objections from these constituencies and others, ICANN remains unwavering in its decision to implement, in just a couple days, the resolution made in June 2011, over vociferous opposition from many within the ICANN community including ICANN’s own Government Advisory Committee.

Since CRIDO was formed, the following statements have been made and events have transpired:

Date

Sender

Contents

Nov. 3, 2011

Esther Dyson & Vin Cerf

National Journal story in which both ICANN founders express concern regarding the ICANN gTLD program. See http://techdailydose.nationaljournal.com/2011/11/former-icann-chairs-voice-conc.php.

Nov. 10, 2011

CRIDO (now 161 companies & major trade associations)

Petition to U.S. Commerce Secretary Bryson expressing the need to delay or stop the ICANN gTLD program until it can be reformed in the public interest.

Nov. 14, 2011

Screen Actors Guild

Letter to U.S. Commerce Secretary Bryson expressing the need to delay or stop the ICANN gTLD program until it can be reformed in the public interest.

Nov. 14, 2011

American Federation of Television and Radio Artists

Letter to U.S. Commerce Secretary Bryson expressing the need to delay or stop the ICANN gTLD program until it can be reformed in the public interest.

Nov. 14, 2011

European Commission

Press Release issued entitled, “Digital Agenda: Commission welcomes improvements in the new IANA contract”.

Dec. 7, 2011

Robert E. Hall, Stanford University and Michael Flynn of AFE Consulting

Letter to U.S. Commerce Secretary Bryson expressing that ICANN with its gTLD program is “sponsoring a perversion of the economic analyses that it commissioned by even suggesting that this nuisance has net benefits for the Internet community.” Both economists urge the Secretary to delay and or block gTLD expansion efforts until adequate reforms are put in place.

Dec. 7, 2011

National Retail Federation

Letter to Senator John Rockefeller which was read into the record at the Senate Commerce Committee hearing expressing concern that ICANN’s gTLD expansion plans do not have adequate consumer and trademark protections in place.

Dec. 8, 2011

Senate Commerce Committee

Held a full committee hearing on ICANN’s expansion of top level domains. Sen. Amy Klobuchar, a former prosecutor, and Sen. Kelly Ayotte, a former state attorney general, voiced a number of concerns with the program’s potential impact to law enforcement activities.

Dec. 12, 2011

Washington Post Editorial Board

Editorial published entitled, “What’s the .rush?” http://www.washingtonpost.com/opinions/whats-the-rush/2011/12/09/gIQA5Ms9nO_story.html

Dec. 13, 2011

San Francisco Chronicle

Editorial published from Boonsri Dickinson entitled “Why .XXX And Other New Top-Level Domains Are a Terrible Idea” http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/13/businessinsiderboonsri-dickinson-es.DTL

Dec. 14, 2011

Intergovernmental Organizations (28 signatories)

Open Letter to ICANN on the expansion of TLDs and the need to protect IGOs against misleading uses of IGO names and acronyms within the new domain name spaces.

Dec. 14, 2011

House Energy & Commerce Committee, Subcommittee on Communications and Technology

Held a robust oversight hearing regarding ICANN’s Top-Level Domain Name Program where many Representatives in attendance stated that the ICANN gTLD program was not ready for “prime time.”

Dec. 14, 2011

National Restaurant Association

Submitted a statement to the record for the House Energy & Commerce, Subcommittee on Communications and Technology oversight hearing of the ICANN gTLD program, recommending that the Commerce Department urge ICANN to re-evaluate its program.

Dec. 15, 2011

Online Trust Alliance

Letter to ICANN expressing that the Online Trust Alliance remains concerned that the planned gTLD expansion may create consumer confusion, abuse, brand erosion and other unintended consequences.

Dec. 16, 2011

Federal Trade Commission (all Commissioners signing)

Detailed, 15-page letter to the ICANN Chairman of the Board and its CEO/President expressing great concern about the lack of consumer protection safeguards within the gTLD program.

Dec. 16, 2011

Representatives Bob Goodlatte and Howard Berman

Bipartisan letter to U.S. Commerce Secretary Bryson expressing the need to delay the new gTLD program or reduce it to a small ‘pilot project’ to study the program’s potential costs and benefits.

Dec. 19, 2011

Steve Cox, President and CEO of the Council of Better Business Bureaus

Letter to the editor in the Baltimore Sun entitled “Online fraud puts consumers at risk.”

Dec. 21, 2011

Senator Dianne Feinstein

Sent FBI Director Robert S. Mueller questions for the record following up on her questions to him regarding ICANN and controls for Internet fraud.

Dec. 21, 2011

17 members of the House Commerce Committee

Bipartisan letter to ICANN urging it to delay the planned launch of the January 12, 2012 application window to address concerns of law enforcement and the business community, as well as concerns of a lack of transparency within ICANN’s processes.

Dec. 21, 2011

CRIDO (now 161 companies & major trade associations)

Letter to ICANN summarizing the key objections to the proposed gTLD expansion by multiple constituencies within the Internet stakeholder community (IGOs, businesses, not-for-profits, editorial boards, legislators, law enforcement and consumer protection authorities).

Dec. 21, 2011

ICANN At-Large Advisory Committee

Advised that the ICANN program’s current “implementation would be harmful to the public interest and specifically that of Internet end-users.” These concerns were originally stated in Mexico City at the ICANN meeting in March of 2009.

Dec. 22, 2011

Senators Amy Klobuchar and Kelly Ayotte

Sent a letter to ICANN outlining that the plan to expand the number of available Internet domain names could potentially create new opportunities for bad actors to prey on consumers and create unnecessary burdens for businesses. The Senators asked ICANN to meaningfully address law enforcement’s concerns before launching any new domain names.

Dec. 25, 2011

New York Times Editorial Board

Editorial published entitled, “Expanding Internet Domains” urging ICANN to delay the gTLD planned expansion and work out the consumer protection and business issues before moving forward.

Dec. 27, 2011

Senator Patrick Leahy, Senator Charles Grassley, Representative Lamar Smith and Representative John Conyers, Jr.

Letter to ICANN urging ICANN to strengthen protections for consumers and trademark holders in its new gTLD program.

Dec. 28, 2011

Senator John D. Rockefeller

Letter to U.S. Commerce Secretary Bryson and NTIA Administrator Larry Strickling expressing the need to delay the new gTLD program or reduce it to a small ‘pilot project’ to study the program’s potential costs versus its benefits.

Jan. 3, 2012

NTIA Administrator Larry Strickling

Letter to ICANN Chairman of the Board Steve Crocker asking ICANN to remediate the consumer and business harms anticipated from the ICANN program.

Jan. 6, 2012

National Consumers League

Sent a letter to ICANN expressing concern about the potential of the gTLD program to increase Internet fraud, in its present form. Urges delay of the program to vet changes recommended by a wide variety of stakeholders, including the FTC. See http://www.nclnet.org/images/PDF/greenberg_icann_gtld_01062012.pdf.

Never before has ICANN faced this level of public scrutiny and concern by policy makers at the highest levels of government and from stakeholders which have, heretofore, been all but ignored by ICANN, despite ICANN’s insistence that it carefully considered in its own process all of the concerns being expressed now and over the past five months in the court of public opinion. That simply does not comport with the record of ICANN’s deliberations. ICANN clearly did not, and it still has not, adequately addressed, let alone answered, the many questions that remain with respect to its plans for further TLD expansion.

Indeed, we are not aware of a single constituency that has organized to defend ICANN’s plans (except those who are aligned with registries and registrars that will take in millions in registration fees for worthless domain names). The only known support comes from (1) occasional letters to the editor and blog entries by the out-going ICANN President and CEO Rod Beckstrom (for whom a replacement is currently being sought but has not yet been identified) and the former Chairman of the Board of ICANN Peter Dengate Thrush, who completed his term as Board Chair in June 2011. It is worth noting that within weeks, Mr. Thrush announced his intention to join Minds + Machines’ parent company as its Executive Chairman, where his personal fortunes, and the fortunes of the company, are directly tied to ICANN moving forward with its plans to introduce new TLDs ) and (2) blog comments attributed to a few consultants, registries and registrars, the business plans of which are tied to the complexities of the application process and the expected land rush for purchase of second level domain names that they hope will follow an expansion in TLDs.

However, to the best of our knowledge, there has not been a single credible article published or letter written to a Member of the U.S. Congress, to the Obama Administration, to the NY Times or the Washington Post, the Wall Street Journal, Forbes or even to the ICANN Board, by an independent expert, rebutting the concerns, still unaddressed, that were expressed directly to ICANN by international law enforcement in its 2009 recommendations regarding cyber security, by the Federal Trade Commission about cyber squatting and consumer protection, or by brands from the global NGO, IGO and business communities decrying the extraordinary costs, in the nature of a brand (new) tax that ICANN is imposing, without any reliable demonstration of offsetting benefit, at a time of severe economic crisis around the world.

Despite all of this compelling evidence condemning ICANN’s plans, as evidenced by the recent statements of Dr. Stephen D. Crocker, ICANN apparently remains steadfastly committed to moving forward, on schedule and as planned, without having adopted any of the changes requested by the global community. ICANN’s approach -- “pay now and trust us to make some refinements later” -- has failed in the past and is not a workable solution for the future.

However, in the interest of being constructive, and focusing attention on the development of solutions rather than on the discovery of ever more problems, we propose a way forward which, if ACCEPTED IMMEDIATELY, could bring together the parties to address in a positive way the critical concerns that have been aired and acknowledged in a public and transparent fashion over the course of the past five months.

PROPOSED WAY FORWARD

  1. ICANN will proceed with its plan to begin accepting applications for new TLDs on January 12, as scheduled;
  2. Concurrently, all NGOs, IGOs and commercial stakeholders concerned about protecting their brands will be given the opportunity to have those brands registered, without cost, on a temporary “Do Not Sell” list to be maintained by ICANN during the first application round (any interested party which does not want to have its brands on the Do Not Sell list and would rather apply for a TLD would be free to do so). We will assemble a team from the interested constituencies to work with ICANN leadership during the first application round. If this group achieves consensus with respect to any proposals, those proposals will be voted on by the Board. At the end of the first application round, should the parties continue to disagree, all parties will be free to pursue their legal and equitable rights without prejudice.

Destructive and costly litigation can hopefully be avoided if you accept this proposal and if all parties work together in good faith during the first application period to develop practical and reliable solutions to the challenges that have been repeatedly raised over the years (and that have been conceded to exist as recently as January 3 of this year, in NTIA’s letter to ICANN. We are asking ICANN to do nothing more than maintain the status quo for critical groups that have established serious concerns for a limited period of time while the parties work together in good faith and avoid further conflict.

This is an eminently reasonable, simple proposal, consistent with the concerns expressed by the many constituencies noted above and responsive to the January 3, 2012 letter from the NTIA. Moreover, given that there are three ICANN meetings in 2012, there is ample time to debate any proposal(s) fashioned and for the Board to vote on the proposal(s) BEFORE, by ICANN’s own estimates, any new names would be deposited in the authoritative root. In the interim, we must request, whether or not you agree to the way forward we are suggesting, that all documents in ICANN’s possession custody or control relating in any way to the planned expansion of TLDs be preserved and all regularly scheduled document destruction policies be suspended.

In conclusion, we hope that ICANN will accept this proposal and, given the brief period remaining before the scheduled opening of the applications window, get back to us within two business days with its response. It remains our sincere hope that ICANN will accept this simple, temporary solution as the parties put in place the solutions promised by ICANN to address the serious concerns expressed by the many constituencies and that, most recently, were endorsed by NTIA.

We look forward to your immediate response. Please address your response c/o Robert Liodice, Association of National Advertisers, 708 Third Avenue, New York, NY 10017; email: bob.liodice.ceo@ana.net.

Respectfully submitted,

Robert Liodice
The Association of National Advertisers

Accepted by:

Dr. Stephen Crocker
On behalf of ICANN and its Board


[1] The job description is available on ICANN's website at: http://www.icann.org/en/committees/ceo-search/ceo-candidate-profile-01dec11-en.pdf.

[2] see http://www.washingtonpost.com/business/icann-departures-draw-criticism/2011/08/19/gIQAzpeDTJ_story.html

Advertisers Push ICANN to Drop New gTLD Proposal

Reed Smith partner and ANA General Counsel Doug Wood said in an interview with the National Journal that if ICANN fails to respond to the ANA’s concerns, it may be forced to sue to block the proposal. “If they choose to ignore us, which I hope they don’t, then we will have no choice but to litigate,” he said, adding that this would only be a last resort. According to Wood, ICANN’s current proposal for gTLD registration could cost companies as much as $2 million a year per trademark. The full text of the National Journal’s interview with Doug Wood and ANA President, Bob Liodice can be found here.

Association of National Advertisers Challenges ICANN Authority to Establish New Top Level Domains

Today, in a letter to Mr. Rod Beckstrom, President, Internet Corporation for Assigned Names and Numbers (ICANN), the ANA (Association of National Advertisers) detailed major flaws in the proposed ICANN program that would permit applicants to claim virtually any word, generic or branded, as Internet top-level domains once the application window is opened in January 2012. The ANA argues that implementation of the ICANN program is economically unsupportable and is likely to cause irreparable harm and damage to its membership and the Internet business community in general. By means of this letter, the ANA with the assistance of Reed Smith, kick starts a serious effort to prevent billions of dollars of harm to brand owners and return ICANN back to the negotiating table by any means necessary.

To learn more about generic top-level domains, read Reed Smith's Client Alert.

New gTLD Plan Approved by ICANN; Now is the Time to be Asking -- How Valuable is my Name?

We have written quite extensively over the last several months about the developments brewing within the International Corporation for Assigned Names and Numbers to change the current domain name system. In short, companies and organizations located anywhere in the world will soon be able to register and operate a gTLD that corresponds to just about any any word or phrase (including a company's / organization's own name), and use that as the top level domain without the traditional extensions of .com, .net, .org, etc. The following Client Alert discusses this important development in greater detail.

Protecting your Trademarks on the Web Is Getting Even Harder

You may want to read this Reed Smith Alert after the holidays are over, but if you can't wait this alert will shed some important light on certain important evolving dynamics that we've written on previously within the universe of domain name registrations, and how they are likely to affect your trademark on the Web.

Changes Coming for Domain Names: Are You Ready to "Dot" Your Brands?

The domain name system is now poised to change dramatically based on a highly controversial proposal for new generic top level domains (gTLDs) approved initially in 2008 by the International Corporation for Assigned Names and Numbers (ICANN), the not-for-profit organization responsible for coordinating the Internet addressing system. Currently, the domain name system is limited to 21 "generic" gTLDs (.com, .org, .net, .info, .biz, etc.). Under the new proposal, organizations located anywhere in the world would be able to apply to operate a gTLD that corresponds just about to any word or phrase, including an organization's name or brand. This is relevant to nearly all businesses, and in particular their marketing/advertising efforts, because it places new burdens on companies to police their brands through the ocean of hundreds, if not thousands, of new channels. My colleagues at Reed Smith outlined the relevant aspects and implications of the proposal and I encourage you to read it here.

Child Obesity a Sign of Heart Disease

Children who are obese or who have high cholesterol also show early signs of heart disease, according to a new study. Results of the study were unveiled at a recent American Heart Association conference. The study, conducted by researchers from the University of Missouri Kansas City School of Medicine, has not yet been published.

The study was small, involving 70 children ages 6 to 19, and experts said the results would need to be replicated to be considered conclusive. But the researchers' method of measuring artery wall thickness, using ultrasound technology, is considered to be a reliable indicator of heart disease risk.

"I think this is a red flag," said the study's lead author, Dr. Geetha Raghuveer, a cardiologist and associate professor of pediatrics at the University of Missouri Kansas City School of Medicine. "These kids are more similar to middle-aged adults."

The study is considered by many to be part of a growing body of research that childhood obesity in the United States likely will result in increased incidents of heart disease as children age.
 
Read more about the study and surrounding issues at nytimes.com.

Move Over Dot Coms - Get Ready to Dot Your Brand!

The Internet as we know it is changing dramatically. Instead of using domain names ending in “.com”—the most popular of the “top level domains” or “TLDs”—organizations located anywhere in the world may soon be able to purchase a TLD that corresponds to just about any word or phrase, including an organization’s name or brand.

What Will All of This Mean to Your Business?

Consider these examples:

  • A financial services trade association might try to buy the domain “ ?? .bank” with the idea of servicing a financial community and selling second-level domains (the name to the left of the “dot”) to eligible financial institutions. A financial services company may then decide to purchase and do business from “firstnational.bank”.
  • On the other hand, First National might simply buy the TLD domain corresponding to its brand:  “.firstnational”. John Smith, a trust officer, might then be located at jsmith@trusts.firstnational; Susan Jones, mortgage banker, might be located at sjones@mortgage.firstnational, and so on.
  • A consumer goods company might consider a TLD corresponding to its brand as an opportunity to create customer confidence in the shopping experience—a kind of web authentication that distinguishes the company’s site from the many other sites and general “noise” and “static” on the web. Thus, a powerful retail clothing brand might buy the corresponding domain—and organize second-level domains according to categories such as “menswear,” “shoes,” “coats,” etc.
  • On the other hand, a company might use its valuable brand in the form of a TLD to reward its valued suppliers with the opportunity to use the TLD brand extension with the second-level domain. A global fast food chain (call it “goodchicken”) might allow its approved contractors to use “supplier.goodchicken”.

Given the hierarchical structure of the domain name system generally, there are a variety of ways in which the new TLDs might facilitate unique business/organizational objectives, while potentially enhancing the customer experience and increasing brand loyalty and awareness.

Currently, the domain name system is limited to 21 “generic” TLDs (.com, .org, .net, .info, .biz, etc.) and about 240 “country code” domains (e.g., .us, .uk, .fr, etc.). According to Paul Twomey, President and CEO of the International Corporation for Assigned Names and Numbers (“ICANN”)—the international not-for-profit organization responsible for coordinating the Internet addressing system—the expansion of the generic top-level domain space is “driven by the demand for more innovation, choice and change to the Internet’s addressing system…[and] has the potential to be one of the biggest influences on the future of the Internet.” Others disagree about the potential impact—at least as the initiative applies to existing businesses—and see little reason to spend the money for another top level domain other than, perhaps, very reluctantly as a defensive measure to keep others out of their space. Some in this camp resent the introduction of the new TLDs as creating complexities and costs that far outweigh any benefits.

Click here to read the full alert.