[10] Letter to William Daley Secretary of Commerce [Editor's Note: Following is the letter that Congress man Tom Bliley, Chairman of the House Committee on Commerce sent to both Secretary of the Department of Commerce William Daley and Ira Magaziner, then Senior Policy Advisor to President Clinton, on October 15, 1998. Congressman Bliley indicated his committee was beginning an investigation into the secret process by which the U.S. government through IANA had created ICANN. However, there has been no further indication of the process of this Congressional investigation and no indication of whether the U.S. executive branch did submit the documents that Congressman Bliley requested. Also there was no response by Congressman Bliley to Hauben's letter of request for an investigation of the lack of consideration of her proposal by the U.S. Department of Commerce.] October 15, 1998 The Honorable William M. Daley Secretary of Commerce U.S. Department of Commerce 14th Street at Constitution Avenue, NW Washington, D.C. 20230 Dear Mr. Secretary: I am writing to express my concerns about the role of the Department of Commerce in the transfer of the Internet's Domain Name System (DNS) from the public sector to the private sector. On June 10, 1998, the Subcommittee on Telecommunications, Trade and Consumer Protection held a hearing on the future of the Domain Name System. Associate Administrator of the National Telecommunication and Information Administration (NTIA) for International Affairs, J. Beckwith Burr, testified on the Administration's recently released policy statement on the future management of the DNS. This policy statement, known as the White Paper, outlines the Administration's proposal to turn over responsibility of the management of the DNS from the government to a newly created non-profit corporation. This new private corporation is intended to provide for competition in domain registration and global participation by all interested parties in the future management of the DNS. I welcomed the White Paper's proposal for the new corporation to be "governed on the basis of a sound and transparent decision-making process, which protects against capture by a self-interested faction." The White Paper reiterated the need for openness when it stated that: "The new corporation's processes should be fair, open and pro-competitive, protecting against capture by a narrow group of stake holders." At the hearing, I underscored the importance of private sector leadership and the need for stability and continuity in the operation of the Internet during the transfer of DNS management to the private sector. I believed that an open, consensus-based process to develop the new self-governing structure, embodied in the White Paper, was a promising approach. At the meetings over the summer of the International Forum for the White Paper (IFWP), a broad-based consensus was reached among the participants which echoed the principles of the White Paper. To further the goals of the White Paper, it would seem incumbent upon the Administration to encourage all key Internet stakeholders to participate in an open, consensus-driven governance process, and, in particular, to encourage meaningful participation of one important stakeholder, the Internet Assigned Numbers Authority (IANA). As you know, IANA, a Department of Defense contractor, establishes technical protocols and allocates Internet Protocol (IP) addresses to regional IP numbering authorities, two functions that are critical to the operation of the Internet. I was disappointed to learn that IANA apparently did not meaningfully participate in the IFWP process. Instead of participating in that process, IANA, under the leadership of Dr. Jon Postel, apparently developed its own DNS reform proposal behind closed doors with little consultation from the broader Internet community. The final IANA proposal, which was delivered to the Department of Commerce on October 2, only represented the position of IANA and no other parties. Concurrent with IANA's release of its proposal for the new DNS corporation, known as the Internet Corporation for Assigned Names and Numbers (ICANN), IANA named nine individuals to serve as interim members of the board of directors of ICANN. I am concerned about the lack of openness in the consideration and selection process for ICANN's interim board members. In fact, Dr. Postel's written testimony recently before a House Committee acknowledged that the selection process for members of the interim board of directors of the new corporation to administer the DNS, was "undemocratic and closed." Further, I am concerned that the lack of a solid American majority on the interim board fails to reflect the leading role of American business investment and consumer-use in the growth of the Internet. The Commerce Department has provided a comment period of just six business days (which began with the receipt of the proposals late on October 2, and ended on October 13, 1998), for the public to respond to the four proposals submitted to NTIA pursuant to the White Paper's request for proposals to establish a private sector entity. I am concerned that this limited time period is inadequate for all interested parties to provide meaningful comment on these proposals that are crucial to the future of the Internet and electronic commerce. Finally, I have concerns regarding the legal authority upon which the Department has undertaken the process to transfer DNS management from the National Science Foundation (NSF) to a newly created non-profit corporation. As you know, the NSF took the lead in commercialization of the Internet through its operation of the NSFNET and its 1993 cooperative agreement with Network Solutions Incorporated (NSI) to register domain names and manage the root server system. It is my understanding that the NSF/NSI cooperative agreement was transferred to the Department of Commerce in September 1998. I am concerned about the manner in which the process of privatizing the governance of the DNS has apparently unraveled. I was hopeful that the Administration would bring leadership to this important effort. We are at a critical juncture in the efforts to establish a workable governance structure that will guide the future of the Internet and electronic commerce. The success or failure of this current undertaking will have a profound impact on the growth of electronic commerce as well as future Internet governance debates. It is vitally important that this first attempt at self-governance be undertaken in a deliberate, open and fair manner, so that it is not subject to capture by "a narrow group of stakeholders." A loss of credibility in the Internet community at large will seriously under mine the ability of the new corporation to administer the Domain Name System and the stability of the Internet itself. Pursuant to Rules X and XI of the U.S. House of Representatives, I request that you provide the following information to the Committee by November 5, 1998. 1. Please provide the Committee with an explanation, including citations to relevant statutes, of the Administration's authority over management of the Internet. In particular, please explain: (1) the Department of Commerce's authority to assume the NSF cooperative agreement with NSI; and (2) the Department of Commerce's authority to transfer responsibility for the management of the DNS to the private sector. 2. Given IANA's historical role in the operation of the Internet and its role in establishing a new management structure, please describe the Department of Commerce's efforts to encourage IANA's meaningful participation in the IFWP process. Additionally, please describe the Department's knowledge and/or involvement in IANA's decision to submit its own proposal. Please provide all records relating to IANA's participation in the IFWP or IANA's decision to submit a separate proposal. 3. Why is the Department of Commerce's comment period so short? Why did the Department provide just six full business days for the public to analyze the proposals and provide comment? Please explain the Department's regulations and guidance governing public comment periods generally and in relation to the consideration of the four DNS reform proposals together with the relevant regulations and guidance. 4. Did the Department of Commerce have any involvement in the consideration or selection of ICANN's proposed interim board members? If so, please describe the Department's involvement and list and describe any communications the Department had with the following people or entities regarding the consideration or selection of the proposed interim board members prior to the announcement of the proposed interim board members: (1) IANA or its representatives; (2) the proposed interim board members; (3) representatives of foreign governments, international organizations, or non-governmental organizations; or (4) other individuals and organizations outside the U.S. government. Please provide all records relating to such communications (whether written, electronic or oral). For purposes of responding to this request, the term "records," "relating," "relate," and "regarding" should be interpreted in accordance with the Attachment to this letter. Should you have any questions regarding this request, please contact me or have your staff contact Mark Paoletta, Chief Counsel for Oversight and Investigations, or Paul Scolese, Professional Staff Member, at (202) 225-2927. The House Commerce Committee intends to monitor the consideration of the draft proposals and the transfer of DNS management to the private sector very closely for the remainder of the 105th Congress and throughout the 106th Congress. As the Administration undertakes this effort, I ask that the Committee be kept informed of and consulted on the process in a timely fashion. Sincerely, Tom Bliley Chairman, House Committee on Commerce ------------------------------------------------------------------------ Reprinted from the Amateur Computerist Vol 9 No 1 Winter 1998-1999. The whole issue or a subscription are available for free via email. 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