Today, I’m heading off to London for a whirlwind three-day business trip. I’ll be attending a total of 15 meetings while I’m here, and I’m very much looking forward to seeing clients as well as some other business friends. Throughout this summer, we’ve been finding that many people are keenly interested in how FairWinds is working with companies to deal with new gTLDs, and how CADNA is working to improve Internet governance and promote policies that benefit both companies and Internet users, as well as promote cybersecurity.
I’m also really eager to see one of my good friends from college, who also happened to be a member of my wedding party. He’s been living in London with his wife and two children while on assignment for Goldman Sachs. I’m very happy to have been invited to his daughter’s second birthday party today. His sister flew in from Dubai and his parents traveled up from Greece for the occasion.
The forecast is calling for sunshine and a gorgeous 70 degrees – something we haven’t seen for months in Washington – for the party today. This should be a fantastic transition to the next few days in London.
When you climb into a cab, you never really know what to expect in terms of the driver’s personality. Some drivers prefer to remain silent while others strike up a conversation with you. From my years of traveling I have talked to cab drivers about everything from family to American foreign policy to sandstorms. The other day was no exception.
I had just finished telling the driver where I was going and was settling back into my seat when he asked me how long I have been in DC and what I do for a living (note: the picture here is not an actual photo of my cab driver; I just included it for comedic effect). I always pause for a second when asked that question; explaining what a “domain name strategy consultancy” is can be a bit complicated. But he seemed to know what I was talking about. When I had finished my usual spiel he began asking me more in depth questions about domain names and confided to me that he had purchased several “big” domain names ten years ago for a company he had started which subsequently failed.
We had arrived at my destination at that point. He had pulled the cab over to the side of the street, killed the meter and pulled out a pencil and pad. He began asking me more in-depth questions about buying and selling domains, how UDRP arbitration works and what qualifies as cybersquatting. I ended up giving him some information on DigitalDNA before finally paying and clambering out of the cab.
As he drove away my mind wandered over all that we had just discussed. I was amused that what had begun as a simple chat between two strangers had taken such a twist, but it almost didn’t surprise me considering how big a part domain names play in an increasingly Internet-driven society.
I think that sometimes, because our expertise is tightly focused on the domain name space, we tend to assume that we have to explain to people outside the industry why domain names are so important and how the work that FairWinds, CADNA and DigitalDNA do factors in. In this case, it was neat that in the span of about 10 minutes I managed to connect with a total stranger because of the work that I do here at FairWinds and it was definitely an experience that I won’t forget anytime soon.
Earlier this month, we attended a Cybersecurity Forum presented by The Atlantic and Government Executive. The event featured an interview with Defense Advanced Research Projects Agency (DARPA) Deputy Director Kaigham Gabriel; three panels on the future of cybersecurity, cybersecurity in commerce, and cyber threats to the critical infrastructure; as well as a keynote speech by U.S. Secretary of Homeland Security Janet Napolitano.
One of the most interesting themes of the forum that we noted was the emphasis on partnership between the public and private sectors – both the representatives of the U.S. government who were present and the representatives from private industry agreed that the best way toward progress in improving national cybersecurity is for the two sectors to work together in a mutually beneficial relationship that combines the innovation of the private sector with the regulatory authority of the government.
Through our work here at FairWinds and at the non-profit we launched, the Coalition Against Domain Name Abuse (CADNA), we also believe in the strength of the combined resources and skills of the public and private sectors. As FairWinds helps its private sector clients become leaders in savvy domain name practices, CADNA works with legislators to develop laws to improve the Internet, as it is impacted by the domain name space. Together we hope to make the digital world a better place for both businesses and consumers alike.
During the panel discussion about cybersecurity in commerce, the issue of the high cost of cybersecurity was raised. Businesses have been hesitant to adopt more comprehensive cybersecurity measures because of the unfavorable economic climate, and have forgone taking all the necessary steps to better secure their core operating systems. On the flip side, Internet attacks are cheap, easy, profitable and attackers are seldom caught. It is hard to show the ROI of investing in cybersecurity, but it is worth it, and the U.S. government needs to give businesses operating in the U.S. the economic incentives to do so.
Similarly, domain names are a key component to branding and marketing strategies, and also trademark and customer protection. Strategic domains are worth investing in because, like cyberattacks, cybersquatting is easy, cheap and profitable. FairWinds works to educate businesses and help them get ahead of cybersquatters. CADNA comes in on the legislative side, pushing for stronger measures against cybersquatting, and better protection for brands and consumers online.
It was encouraging to see the enthusiasm of government representatives toward partnering with the private sector on cyber issues. Moving forward into 2011, we hope to continue working through both FairWinds and CADNA to foster both public and private sector progress in improving the domain name space.
CADNA recently released a report that predicts how much new generic TLDs will cost brand owners once they are released. A lot of the attention paid to the subject of new TLDs has been focused on .BRAND TLDs and whether or not companies should register their own branded TLD. In my experience dealing with various businesses, there seems to be the impression that once a company decides it will not register its own .BRAND, it will be in the clear and new TLDs will not be much of an issue. The truth is, generic TLDs like .MUSIC, .ECO and .NYC will actually be a greater concern for businesses in terms of defending their brands against infringement and cybersquatting.
After ICANN released its predictions regarding how many generic TLD applications it will receive in the initial round, CADNA went to work calculating how much brand owners on average will need to spend to defensively register their brands and trademarks across these new generic TLDs. It found that the initial launch will cost brand owners about $500,000 each, and that the cost to businesses worldwide could exceed $746 million. The full explanation of these figures and calculations can be viewed on the CADNA Web site.
CADNA, which many know is a nonprofit that FairWinds helped to found, undertook the task of figuring out the cost of new generic TLDs in order to give brand owners an accurate picture of what impact the TLD launch will have on their brands and their bottom lines. CADNA put forward this research to help illustrate how absurd it is to allow such a radical shift in Web site naming to be a complete free-for-all. New TLDs are probably a good idea – some day. But, it is never a good idea to build on a shaky foundation. ICANN is broken and anticybersquatting laws are outdated. If it underwent necessary reforms to improve its policy development process and Internet governance function in order to make public interest a higher priority, then a rollout of new TLDs would look very different. There wouldn’t be a massive flood of extensions that would create an impossible challenge for trademark holders and law enforcement to protect consumers from the misuse of brand names.
Unfortunately, since releasing its calculations, CADNA has experienced some negative backlash. Interestingly the negative reactions came specifically from new TLD entrepreneurs blogging about the topic. All those who called CADNA’s projections bogus and charged the organization with fear mongering are the same people who have a vested financial interest in the success of new TLDs. Not one of those critics contacted CADNA to ask for comments or for a further explanation of the calculations and methodology. Instead, they simply wrote off the figures because the results were inconvenient for them and their business. What it boils down to is this: these critics are calling CADNA biased when they are clearly as far from neutral as they can be.
Since we cofounded the Coalition Against Domain Name Abuse (CADNA) in 2007, the non-profit has been dedicated to both building awareness and taking active steps to prevent cybersquatting and other online infringements. One of the main avenues for achieving these goals has been to engage with the Internet Corporation for Assigned Names and Numbers (ICANN), the international regulatory body that coordinates the Domain Name System at the top level. Initially, CADNA focused its efforts on trying to affect change in ICANN within the framework it had established, namely by submitting comments on as many issues as we could to try to get our message, the message of brand owners and consumers, heard.
Eventually it became clear that relying on comments was simply not enough. ICANN is a captured regulator primarily beholden to the interests of a relatively small group that doesn’t represent the overall Internet community. As such, trying to seriously alter the policy development process of ICANN through written comments that were ultimately ignored was not a practical way to make real progress. This is not to say that CADNA has ceased participating in ICANN’s public comment periods. On the contrary, CADNA has continued to submit comments to make its members’ opinions known, and also to prove that it is still willing to engage with ICANN. And there is some evidence that the efforts of CADNA and other comment submitters have made an impact: in some recent redlined drafts of initiatives under the new gTLD rollout, there have been references to changes made as a result of public comments. However, ICANN has a history of heeding the recommendations of only select groups when crafting these types of public-comment-driven changes in the past.
What happened with the Expression of Interest (EOI) program is a prime example of this. The idea behind the EOI process was to create a data-gathering model that would gauge if there was a demand among new and existing registry operators for new gTLDs. Though the EOI process was created to respond to Internet users questioning the need for new gTLDs, ICANN first put forth a flawed EOI model and then did not follow through to create a model that satisfied its constituents. Earlier this week, ICANN announced that in order to more quickly launch new gTLDs, it had cancelled the EOI program. Peter Dengate Thrush, ICANN's Board Chairman, said "we are now so close to launching the new gTLD process that we simply thought it better to move ahead as quickly as possible without adding the EOI element."
By doing this, ICANN has willfully decided to ignore its users' concerns in order to quickly rollout a program that will bring in millions of dollars for this "nonprofit".
It is not my intention to imply that stakeholders should stop participating in ICANN’s public comment periods or to insinuate that CADNA plans to do so; however, I do wish to point out the general ineffectiveness of public comments to encourage bigger action. In order to really make positive steps forward in improving ICANN and its policy development, CADNA has refocused its efforts on working with members of Congress on these issues and working more diligently toward developing legislation to help resolve the problems. Long term solutions to the Internet’s systemic problems that are within ICANN’s control are unlikely to emerge from within the ICANN community, but rather from the governments and its agencies who are ultimately responsible for defending the public interest.
I see other groups submitting comments, participating in ICANN and then simply waiting to see results. Now more than ever, as ICANN is developing plans to drastically alter the DNS and the shape of the Internet as a whole, it is crucial to move away from the paper – to move beyond simply providing comments – and take up bigger, more effective action. The incentives to achieve certain outcomes in the ICANN policy development process are too great for us to assume the outcomes are not predictable - paper tigers will not stop a chaotic introduction of new TLDs and they will not clean up WHOIS or stop all of the registrar abuse. Regulatory action needs to be both domestic and international and the time to act is now.
On January 29, the Coalition Against Domain Name Abuse (CADNA), which FairWinds helped found and runs, hosted a policy forum here in Washington, D.C. The forum focused on emerging challenges for the Internet community in 2010, specifically the future of ICANN under the Affirmation of Commitments (AOC) and potential reform to the Anti-Cybersquatting Consumer Protection Act. Attendees heard from two panels regarding these issues, which featured brand owners, online policy experts and Congressional staff members. The keynote address was given by Senator Stephen Urquhart (R-UT 29th District), the Chairman of the Utah State Senate Transportation and Public Utilities and Technology Committee. Urquhart recently introduced the E-Commerce Integrity Act to the Utah state legislature. This bill is designed to make the state of Utah more business-friendly by creating greater deterrents to prevent cybersquatting: firstly, the bill raises the damages that can be levied on a cybersquatter, and secondly, it holds affiliates of domain name registrants liable if it is found that they benefit from cybersquatting behavior.
In addition to Sen. Urquhart, representatives of Jay Rockefeller (D-WV), Chairman of the Senate Commerce, Science, and Transportation Committee; and Patrick Leahy (D-VT), Chairman of the Senate Judiciary Committee spoke on the panels. Cybersquatting is an issue that hits close to home for the Senators they work for: PatrickLeahy.com and JohnDRockefeller.com both point to pay-per-click (PPC) sites. (JayRockefeller.com, however, does lead to the Senator’s Web site.) SteveUrquhart.com also leads to a PPC site.
When discussing the problem of cybersquatting, much of the attention often gets focused on businesses and infringements on brands and trademarks. However, individuals like politicians and celebrities are also frequently the victims of squatting and other malicious conduct online. It’s great to know that Senator Urquhart and Congressional staff members understand this issue, and we’re happy to have them involved in efforts to create a safe, stable and flourishing Internet.
The House Judiciary Committee’s Subcommittee on Courts and Competition Policy held a hearing yesterday on the potential rollout of new TLDs and how such a rollout would affect competition. At start of the hearing, House Judiciary Committee Chairman Conyers made a very good point—this is not a hearing that Congress should have had to pull together. As Steve DelBianco (Executive Director at NetChoice and a witness at the hearing) pointed out, if ICANN was working properly, there would be no need for Congressional intervention. Unfortunately, ICANN is broken and needs to be fixed if there is to be hope for a safe, stable and flourishing Internet in the future.
Just how broken is ICANN? Check out CADNA’s Top Ten list of things wrong with the organization. The Coalition has gotten positive feedback on this evaluation thus far- what are your thoughts?