CADNA

To the Naysayers


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  ICANN is broken and anticybersquatting laws are outdated.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.

More Than Just Words – ICANN Comment Periods, Paper Tigers, and How to Achieve Results


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.

Cybersquatting - Not Just for Brands


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.

 

Congressional Hearing Examines ICANN’s House of Cards


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?