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ICANN/Verisign Sued For Monopoly Abuse

Andy_R writes "The BBC is reporting that the World Association of Domain Name Developers (WADND) have filed suit against ICANN and Verisign for alleged violations of antitrust, conspiracy, monopolization and price fixing laws. The suit alleges that the two are entering an unlawful agreement that gives VeriSign a permanent monopoly over the all .com and .net domain name registrations, and the right to raise prices at 7% per annum forever. The text of the lawsuit is available as a .pdf from WADND." ZDNet has the story as well.

38 of 209 comments (clear)

  1. Is this why... by garrett714 · · Score: 5, Funny

    ...they can only afford to provide single letter domains now?

  2. Solution... by InsideTheAsylum · · Score: 2, Funny

    Obviously we should give control of the internet over to the UN. They would never abuse or monopolize it.

    1. Re:Solution... by lysergic.acid · · Score: 5, Insightful

      They probably wouldn't. I know saying anything in a sarcastic matter-of-factly tone makes you sound witty, but there's not much merit or logical basis for assuming that the U.N. would make the same kind of abuses. The U.N. is not a for-profit organization, and U.N. commitee members cannot profit from such unethical practices. They don't have shareholders whom they are obligated to turn a profit for. As such, it makes them much more suitable for running a global communication infrastructure that's just as important to our global society as other shared public infrastructures such as roads and sewage systems. So if anything, these abuses by ICANN should make us reconsider the legitimacy of their monopolistic control.

    2. Re:Solution... by jbellows_20 · · Score: 3, Insightful

      What about the oil-for-food scandal that has recently rocked the UN? Sounds to me that even though the rules don't allow such profits to be made, they are made nonetheless.

    3. Re:Solution... by ralphclark · · Score: 3, Interesting

      I see...so, if some Republicans are corrupt, then we can assume Republicans and Republicanism itself are all evil? Is that what you're saying?

    4. Re:Solution... by glitchvern · · Score: 2, Interesting
      The U.N. is not a for-profit organization, and U.N. commitee members cannot profit from such unethical practices. They don't have shareholders whom they are obligated to turn a profit for. As such, it makes them much more suitable for running a global communication infrastructure that's just as important to our global society as other shared public infrastructures such as roads and sewage systems. So if anything, these abuses by ICANN should make us reconsider the legitimacy of their monopolistic control.

      ICANN is also not a for-profit organization, and it doesn't seem to have stopped them from screwing things up. At least they can be taken to court for violating anti-trust laws, try that with the UN in control. Devil you know, devil you don't. I can imagine ways in which the UN can do worse, not that I have to since they gave us proposals which were worse. This is why people want to keep the status quo even though people aren't particularly pleased with that either.
    5. Re:Solution... by lysergic.acid · · Score: 2, Informative

      Are you that dense? The whole scandal was about corporations and businesses bribing Saddam Hussein in order to get oil deals from him when the U.N. program restricted Iraq's oil exports to exchanges for humanitarian aid. The corporations and CEO's responsible for the scandal undermined the U.N.'s resolution. The key players who benefited from the scandal were Siemens, Daimler Chrysler, Volvo, atleast one Halliburton firm and more than 2000 other companies. It was a corporate scandal if anything.

      "Companies buying oil at cut prices would funnel extra money to Iraq through "surcharges" while those receiving money from Iraq for humanitarian goods and services would return a portion in "kickbacks", the report found." -- http://news.bbc.co.uk/2/hi/americas/4440804.stm>

      You can read more details here as well: http://www.alternet.org/waroniraq/27792/

    6. Re:Solution... by Roger_Explosion · · Score: 2, Interesting

      It's really interesting how differently the UN is viewed in the United States compared to the rest of the world. In the rest of the world, it is viewed as a force for good, which although has a few problems like any large beaurocratic organisation, has it's heart in the right place and does much more good than harm. In the United States however it seems to be viewed as some sort of corrupt, evil, old boys club where the members sit around taking bribes and criticise America's unilateral approach to world affairs. It's pretty ridiculous when you think of all the good the UN has done over the years with it's food and health programs, the international court of justice etc. As well as it's various peace-keeping roles. It just amazes me how thoroughly the American public has been brainwashed, just because the UN doesnt do exactly what the United States government wants. The United Nations is no more corrupt, morally or financially, than the current US administration.

      Despite the few controversies lately involving the UN, I'd much rather they had control of the .com and .net registers than Verisign, which is a company who serves the interests of shareholders, and shareholders alone. They also have a pretty patchy track record. Sitefinder anyone?

  3. And at the end of the day.... by 8127972 · · Score: 5, Insightful

    .... The only people who will win are they lawyers. Makes me wish I went into law rather than computer science.

    --
    This is my opinion. To make sure you don't steal it, it's covered by the DMCA.
    1. Re:And at the end of the day.... by thefirelane · · Score: 4, Funny

      The only people who will win are they lawyers. Makes me wish I went into law rather than computer science

      But then you'd be part of the problem, instead of part of the other problem

    2. Re:And at the end of the day.... by 31415926535897 · · Score: 2, Informative
      Makes me wish I went into law rather than computer science.

      I strongly considered this right after receiving my computer science degree. I actually have a friend who is going down this road. Nevertheless, I interned in the IT department of a smallish (but hugely successful) law firm one summer in college and befriended many of the lawyers in the office, including one of the founders.

      Every single one of them recommended staying out of law if you desire to have any sort of life. It is very difficult to be married and try to practice law (at least private law where you're trying your darndest to acquire clients and win their cases). I think it really depends what you want. These lawyers were all making millions per year (the partners were splitting 8-figure profits every year). They were also working at least 80 hours per week.

      I have a job I love right now, and while I'm not making that kind of buck, I get to spend a lot of time with my family (and I just had a baby girl, so I love to be home!). I'm not getting an ulcer or going crazy from sleep deprevation, and that has to be worth something.

      Again, it all depends on your goals. But if you want that lifestyle, get into it now, because if you don't do it now you'll probably never have a chance to switch later.

  4. hm by PunkOfLinux · · Score: 5, Insightful

    The way I see it, there should only be one entity in charge of assigning of names for the internet. With millions of people on the internet, having multiple organizations in charge of domains and such would make the internet so much less efficient.

    1. Re:hm by Rude+Turnip · · Score: 3, Interesting

      I think the whole DNS system should be shaken up perhaps to the point that it rattles apart. The internet is the next generation of printing press, turning everyone into a publisher. YET...the only way to get your name out there is to revert back to a huge, political beaurocracy to register your domain name. There must be a better way...perhaps an open, democratized "AOL-type" system based on keywords?

  5. Re:Shrug by InsideTheAsylum · · Score: 2, Insightful

    That's not very good though, I don't have a job right now, but I own two domain names (I won't plug them here though..). Thankfully, they only cost me something like $9 for a year and with a friend hosting my sites for me, I can enjoy the benefit of being a penniless bum with a domain name.

  6. court? by Janek+Kozicki · · Score: 5, Interesting

    the court in which country will handle this? I don't see this, since it is international problem here. Is there any interantional court? Geneva? US? UN? Japan? we are talking about whole earth...

    --
    #
    #\ @ ? Colonize Mars
    #
    1. Re:court? by garrett714 · · Score: 2, Informative

      Is there any interantional court? Geneva? US? UN? Japan? we are talking about whole earth...


      Closest thing would be the International Court of Justice run by the UN.

    2. Re:court? by j1mmy · · Score: 3, Funny

      you might be surprised to find that both articles linked from the story answer your questions and concerns. you might want to try reading them.

    3. Re:court? by Anti+Frozt · · Score: 3, Funny

      You must be new here.

      --
      In C++, friends can touch each others private parts.
    4. Re:court? by CreatureComfort · · Score: 2, Funny


      What's worse is some mod rated an RTFA post "Informative"...

      Mod must be new here too. They'll give mod points to anyone these days.

      --
      "Unheard of means only it's undreamed of yet,
      Impossible means not yet done." ~~ Julia Ecklar
  7. Re:it is possible that... by AdamWeeden · · Score: 4, Informative

    I'm fairly sure that the sub-registrars you go through (godaddy.com, regsiter.com, etc.) are just middle men.

    --
    I was quoted out of context in my autobiography...
  8. show me the money! by intmainvoid · · Score: 2, Insightful

    7% forever is just crazy, short term it's not a big problem, but over a long enough period it's like a licence to print money (which explains why that's what they wanted). It would be a different story if they linked it to inflation or some other index.

  9. already too expensive by demonbug · · Score: 4, Insightful

    How can it possibly cost more every year to register a domain name? Everything involved except labour continually becomes cheaper - bandwidth, processing power, storage, everything! The process is basically automated anyway, so how can a steady increase in the cost of registering a domain be justified?
    The price is already too high, in my opinion - companies like verisign (and other domain name registers) are making money by charging for something that is essentially free to create. For-profit companies should be kept out of domain registration - isn't that part of the point of ICANN in the first place?

    1. Re:already too expensive by ajdlinux · · Score: 4, Funny

      It's to make people think about what they are buying. If domain names were free, then everyone would register everything and not think about it.

  10. Sore losers? by BeerCat · · Score: 4, Insightful

    So, having lost the battle over who "owns" the Internet (or at least the DNS system), it seems as though the next step is to challenge the "owner" as a monopoly.

    Hmm. Being a monopoly is not a crime. It only becomes so when abuse of monopoly power can be demonstrated. This does not look like it (yet), as there is a big difference between what you are contractually allowed to do, and what you actually end up doing.

    --
    "She's furniture with a pulse"
    1. Re:Sore losers? by marcosdumay · · Score: 4, Insightful

      Let's see, ICANN abuses the power it have as a not for profit body to create a monopoly for a for profit business.

      Yes, this does not look like abuse of economical power, it is more like normal corruption and abuse of *(political) power, that give jail time to the people, instead of regulations.

    2. Re:Sore losers? by wayne · · Score: 2, Informative
      So, having lost the battle over who "owns" the Internet (or at least the DNS system), it seems as though the next step is to challenge the "owner" as a monopoly.

      I think you are confused. The two different(?)groups suing ICANN (CFIT and WADND) don't appear to have anything to do with the EU and their complaints about ICANN and the US government control of ICANN. ICANN has made many enemies over the years.

      That said, the Verisign agreement may well be related to the complaints by the EU. Part of this agreement between ICANN and Verisign calls for Verisign to support ICANN in the squabble over the US control over ICANN. Remeber, ICANN has made many enemies over the years and has few friends. Buying Verisign off by giving them the .COM zone forever may have been what ICANN felt the needed to do to prevent themselves from losing all control. Also remember that, after sitting unresolved for a long time, this agreement came about right after the EU vs ICANN squabble heated up.

      I'm REALLY having a hard deciding who scares me more to have control over the top level domains: ICANN or the UN.

      --
      SPF support for most open source mail servers can be found at libspf2.
  11. Cheaper eh? by saskboy · · Score: 3, Interesting

    I'd like to see domain names to be much cheaper, so that neophytes can get a domain name for $1US/year.

    What pays for the DNS system anyway, and why aren't domain names sold directly to the public instead of through registr[ars][ants?]?

    --
    Saskboy's blog is good. 9 out of 10 dentists agree.
    1. Re:Cheaper eh? by ZachPruckowski · · Score: 2, Interesting

      I'd like to see domain names to be much cheaper, so that neophytes can get a domain name for $1US/year.

      Cheap domains are bad, because for every one we get from an amateur, interested neophyte (like me), we'll get 3 spammers picking up cheap sites. A medium cost, and one with a reasonable rate hike, not an excessive one, would allow people with interest to get a site (while encouraging them not to drop something they paid decent money for), and stopping mass pickups of dozens of names.

  12. Which side, again? by IWannaBeAnAC · · Score: 4, Funny
    Whoa, I'm confused. Are we for ICANN, or against ICANN, in this round?

    I can't see any UN involement here, so I guess we can safely be against ICANN?

  13. Sounds like a bunch of fuckweasels to me. by Tackhead · · Score: 4, Interesting
    Hmm.

    http://wadnd.com/

    Appears to be part of...

    Targetedtraffic.com, who appear to be working with folks at the reputable-sounding domain names americanflags.com, revenue.net, golfcourses.com, ireit.com, erealestate.com, and it looks like they all hail from Delray Beach, Floriduh.

    Congratulations, guys! I don't know whether you're spammers or not, but it takes talent to sound like a filthier bunch of domain-hijacking cockgobblers than the entire marketing department of Verisign. I mean, seriously -- I read those domains and was surprised when I didn't see any of you on the ROKSO list of the top 100 spammers. I actually looked. About the only way you could have looked like a bigger bunch of dirtballs would have been to have been based in Boca Raton, FL, or Slidell, LA.

    I hate to say this guys, but even though you're not on the ROKSO list - after seeing who you're working with, I kinda hope Verisign/ICANN wins.

    1. Re:Sounds like a bunch of fuckweasels to me. by merc · · Score: 2, Interesting

      I'd mod you up for that background research (really interesting) but you're already at 5 ;-) Good job though.

      Whatever happened to Godaddy's (et al) lawsuits against VerminSlime?

      --
      It's true no man is an island, but if you take a bunch of dead guys and tie 'em together, they make a good raft.
  14. Two groups suing ICANN? by wayne · · Score: 2, Informative
    CircleID is reporting that ICANN has been sued over their deal with Verisign by a group called Coalition for ICANN Transparency Inc. These don't, on the surface, appear to be the same group as mentioned in the BBC and ZNET stories.

    CFIT appears to be much less of "fuckweasels" to me.

    --
    SPF support for most open source mail servers can be found at libspf2.
  15. Re:Shrug by LordLucless · · Score: 3, Insightful

    No, that would only stop poor idiots. You've still got rich idiots to contend with.

    --
    Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  16. Burn 'em. by ktulu182 · · Score: 2, Informative

    As an employee of one small .com Registrar I would rather support WADND in this case. ICANN and Verisign are a bunch of greedy lazy bastards. ICANN earns 25 cents per year per every .com/.net domain name (so called ICANN tax - basically for nothing, they only perform Registrar accreditations), and Verisign takes 6 bucks for maintaining .com/.net Registry. But there other ICANN taxes, which are not so widely visible to general public. ICANN charges all .com/.net Registrars $20k a year just for the right to register .com/.net domains (plus 25 cents tax for each domain), last year that annual ICANN tax was 5 times lower (around $4k). So basically small guys on the domain market are now in much more difficult conditions, because profit margins have significantly decreased in last few years, some Registrars have a profit margin of 25 cents per domain name. That is you have to register or renew at least 80,000 domains a year just to pay all ICANN taxes, that is not counting labour costs etc. Basically as a result of ICANN actions domain registration business has been closed for small guys, it is now not possible to enter this business without shitloads of money. It was deliberate action of ICANN, they even planned in their annual budget a descrease of Registrar number from 500 to around 200.

  17. Re:Shrug by metamatic · · Score: 3, Insightful

    A much better solution would be to make them non-transferable.

    --
    GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
  18. Re:Shrug by doodlebumm · · Score: 2, Insightful

    Low cost is good, but if the domain is NOT used for a legitimate use (uses other than to hold onto it for the purpose of reselling for a profit) within a short window, rights to the domain can be contested and the name re-sold. If then re-purchased by the original owner, the price is 10 times the previous yearly price (and then 10 times that price for the re-purchaser if it still isn't put to proper use, etc.). No more cyber-squatting would be done, because it would be too expensive. A cybersquatter would have to have a legitimate use for the domain soon, or go broke trying to keep hold of the domain.

  19. off to a good start by PMuse · · Score: 3, Funny

    From the Complaint: An example of an IP number might be: 12.34.567.89.

    --
    "We reject as false the choice between our safety and our ideals." --The American President (20.1.2009)