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Court Case Against VeriSign, .Com Monopoly Revived

netczar writes "According to a post by John Levine on CircleID, as well as other sources, the US Court of Appeals for the Ninth Circuit has reversed a lower court decision which threw out an antitrust lawsuit several years ago by the Coalition for ICANN Transparency (CFIT) against VeriSign. Levine writes: 'Back in 2005 an organization called the Coalition for ICANN Transparency burst upon the scene at the Vancouver ICANN meeting, and filed an anti-trust suit against VeriSign for their monopoly control of the .COM registry and of the market in expiring .COM domains. They didn't do very well in the trial court, which granted Verisign's motion to dismiss the case. But yesterday the Ninth Circuit reversed the trial court and put the suit back on track.'"

14 of 37 comments (clear)

  1. What really happened. by rs79 · · Score: 3, Interesting

    There's so much misinformation about this it's not funny. I was there, here's a few things that wern't made public.

    First of all, in the day there was great pressure for NSI to "sign with ICANN" and become subject to its aegis. NSI had keept the root and tld servers running since their inception and still had the lions share of cluefull people like Mark Kosters. Granted the marketing department were sometimes idiots, but if you tour every major DNS shop on the planet you had to gridgingly admit the NSI boys knew their stuff better than anybody. By a large margin.

    NSI didn't want to sign with ICANN because they knew ICANN were gunning for them. There was a publid hatred of NSI (for being successful) and this had come to a head in ICANN "management".

    ICANN and NSI wern't getting along. ICANN had rules it wished to apply to .com that wouldnt be applied to any other tld registry and NSI jsut dug its feet it. This was becoming an embarasment to ICANN.

    Finally Roger Cochetti of IBM, who'd been running around in background with Ira Magaziner for ages, lying to poeple about what was gong to happen (In public: this is your internet, you define the newcorp and staff it, in private: we have the thing in the bag, meet your new overlords, you can't elect your own, and to this day there are still not free ICANN board elections!) and one day NSI got a call and were locked in to a room with ICANN and couldn't come out till they'd settled. The came from IBM who for reasons not known to me had that kind of power.

    Now, nobody talked about "competative bidding" when it came to the other 250 tld registie that served up country code tlds (who were also resitant to signing with ICANN) but, in a sense, NSI signed with a gun pointed to it's head. NSI staffers told tales of phone calls saying that the root and tld servers would be declared a national security resource if they didn't knock it off and they should do what they're told.

    There's a reason this wasn't accomplished in a transparent manner: it was done illegally with government complicity.

    As for this lawsuit, guess whose paying for it? You know those "what you need when you need it" guys? ("domainers") Them. When you have a million domains and somebody sugegsts you might save a buck a reg. if this goes though, 7 guys times a mil each and Brett Faussett gets to send his kid to college. I know and like Brett, but this is a stinker.

    If .com is moved some place besides NSI expect nothing to work. Or work well. The idea that scumbags one step above spammers dictate key infrastructural components of the net based on their economic needs and not any objective criteria wrankles a bit.

    ICANN is due for an anti-trust bitch slapping alright, but not about .com.

    The internet, when faced with a problem of scarcity creates new resources, it does not regulate existing ones. The problem is lawyers prevented the implementation of new top level domains. Postels original plan in 97 was 300 new tlds (250+ domains already existed then) with 150 in the first year. The trademark lawyers took over ICANN, prevented any new tlds from being implemented and Postel died. IBM alone admitted in secret that they'd spent $60M lobbying DC for no new tlds and every major three letter computer company had done the same. So, the solution all along was to make NSI "jsut another company" by having another 100 of them dong the same thing.

    But intellectual property lawyers nixed that, you may never know how powerful these guys are, and now they're going after .com.

    --
    Need Mercedes parts ?
  2. There's an obvious way to handle this by Kuciwalker · · Score: 4, Interesting

    Every 5, 10 years or so, hold an auction for the right to administer each gTLD.

    1. Re:There's an obvious way to handle this by shentino · · Score: 3, Insightful

      Who marked this flamebait?

      With the exception of .gov, they should award contracts to the highest bidder to encourage competition.

      As long as they have forfeiture clauses to use against miscreants who don't manage the TLD's correctly I would have no problem with it.

      Having data properly transferred and signed by DNSSEC though would probably be an insurmountable hurdle.

      So maybe a bad idea, but certainly not a dumb one. Using economics against a monopoly usually makes sense.

    2. Re:There's an obvious way to handle this by rlparker · · Score: 4, Insightful

      It seems to me the obvious problem with this would be that, in the end, it would likely spawn an escalation of registrations fees completely unrelated to inflation. Why not be the highest bidder, and just pass the cost on the the registrants? Bad plan!

  3. Comment removed by account_deleted · · Score: 5, Interesting

    Comment removed based on user account deletion

  4. Re:Please, please ... by John+Hasler · · Score: 4, Insightful

    If only that was the worst thing they've ever done...

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    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  5. Don't get all excited here by Sycraft-fu · · Score: 3, Insightful

    There are two things that give me pause with regards to this:

    1) There are other organizations that have a "monopoly" on various TLDs. While .com may be the one that most people recognize, doesn't really matter. So it may well be arguable that Verisign's ownership isn't problematic or illegal since there are other TLDs to choose from and others that are "owned" in the same fashion.

    2) This is the 9th circuit court. These guys get overturned on a regular basis. Quite often when there is a controversial case, they rule based on what they think the law ought to be, rather than what the law is. Their decision then gets overturned by the Supreme Court.

    So don't get all worked up at this point. See how it goes from here.

    1. Re:Don't get all excited here by ColdWetDog · · Score: 3, Informative

      This is the 9th circuit court. These guys get overturned on a regular basis.

      Because it's one of the largest. IIRC, the overturn rate as a percentage of total cases is roughly the same as the other circuits. But still not to get one's panties in a twist....

      --
      Faster! Faster! Faster would be better!
    2. Re:Don't get all excited here by AuMatar · · Score: 2, Informative

      It actually is a few percentage points lower than the average. But don't let that disrupt the republican talking point about the activist 9th court.

      --
      I still have more fans than freaks. WTF is wrong with you people?
  6. This is silly. by yourassOA · · Score: 2, Insightful

    How would multiple companies make .com registry better? How would the companies cooperate with each other without increasing cost? Will there be a company / gov agency to oversee the other companies? We have multiple companies for vehicle registry were I live and it sucks networks/computers always down and no one fixes it because its someone else problem making for 20 min+ wait times to register the vehicle while some Win 95a 486 churns away.
    Now if they are so worried about monopolies why don't they go after the power company? They buy gov regulated power and sell to the consumer at an unregulated rate at 3-4 times what they pay. Plus we have to pay for the company suppling the power and then double that for the company invoicing you now the gov say they can charge us for future power lines they want to build to supply power to the US.

    1. Re:This is silly. by signe · · Score: 3, Interesting

      And on what basis do you think the price should be going down? The price has gone up for the last 2 years, but that's still only a total of 14% over the last 10 years. And not only that, the increase has only be a total of $0.86, which is even less significant when you compare it to the price of a registration (given that we ignore the folks who use domain registrations as a loss leader for other products).

      The price of compute power may be going down, but the number of registrations and queries is only going up. In addition, the attacks on the infrastructure are only increasing and getting more sophisticated. And you can't ignore inflation as well. So why should the price of domains go down when the price of most other things go up over time?

      -Todd

      --
      "The details of my life are quite inconsequential..."
  7. private companies suck sometimes by jaroslav · · Score: 2, Interesting

    From the article, "CFIT themselves, despite their name, is about as opaque an organization as there is".

    So, we have a company we know is evil-ish, a company we think might tend towards evil if we gave them control of .com, and ICANN -- for what they're worth. It seems to me that if we continue essentially the same system we have now that VeriSign (or whoever is ultimately given control) needs to be on a short leash from ICANN. Not that they are necessarily better or more transparent, but at least they can be more directly influenced by the government / public opinion.

  8. Re:Should .com get special treatment? by Drantin · · Score: 2, Insightful

    since when is .co.uk a TLD?

    --
    Actio personalis moritur cum persona. (Dead men don't sue)
  9. Re:Please, please ... by rs79 · · Score: 2, Interesting

    Here's the deal. .cc did it first and lots of people complained. Then other cctlds began doing it, more poeple complained. ICANN was asked to do something and said it didn't think it was appropriate they do that.

    So NSI began doing it, citing a clause in their agreement that they couldn't be treated differently from any other registry.

    ICANN got them to shut it down, in violation of their own contract with NSI and they didn't shut the other ones down.

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