Chehade confirms he’ll be gone before IANA transition is done

ICANN CEO Fadi Chehade has laid out his current best thinking for the timeline of the IANA’s transition from US government oversight, and he’ll be gone well before it’s done.
At the opening ceremony of the ICANN 53 meeting in Buenos Aires today, Chehade described how June 2016 is a likely date for the divorce; three months after his resignation takes effect.
Chehade said:

I asked our community leaders, “Based on your plans and what you’re seeing and what you know today, when could that finish?” The answers that are coming back to us seem to indicate that by ICANN 56, which will be back in Latin America in the middle of 2016, a year from today, the contract with the US Government could come to an end.

He showed a slide that broke the remaining work of the transition into three phases.

Work being carried out within ICANN is not entirely to blame for the length of time the process will take.
The US National Telecommunications and Information Administration needs 60 to 90 days to review the final community-developed transition proposal.
And under forthcoming US legislation, 30 legislative days will be required for the US Congress to review the NTIA’s approval of the plan.
Thirty legislative days, Chehade explained, could mean as many as 60 actual days, depending on the yet-unpublished 2016 Congressional calendar.
He urged the community focus hard on Phase One in his graphic — actually producing a consensus transition plan.
The target for delivery of this is the next ICANN meeting, 54, which will take place in Dublin, Ireland from October 18 to October 22 this year.

ICANN 53 launches with risky Caitlyn Jenner joke

ICANN has risked the ire of community members by kicking off ICANN 53 today with a joke referencing transgender celebrity Bruce/Caitlyn Jenner.
Just moments into his opening address this hour, ICANN chair Steve Crocker worked a joke around before/after photos of the former athlete.
[UPDATE: Crocker has issued an apology. See the bottom of this post.]

This is what Crocker said:

What are we really talking about here? What is this thing we call “the transition”? And why has it captivated the attention of so many?
[Jenner photo appears]
Ahhh, no. That’s not quite the transition that I’m referring to. I’m only referring to the IANA stewardship transition.

Reaction from attendees was mixed.
The joke got laughter from the room.
On Twitter, some were less amused.

Excuse me @ICANN, is this equality, respect and one world for EVERYONE? Apologise in order #icann53 #notfunny!!!!! pic.twitter.com/Bn2926OlXk

— Aida Mahmutović (@Aidazzles) June 22, 2015

#ICANN53 starts with a joke at the expense of the LGBTQI population. I guess that is better than a prayer. But not a lot.

— avri (@avri) June 22, 2015

Ehhh….what just happened there. Seriously #ICANN, some things one do not joke about.

— Patrik Fältström (@patrikhson) June 22, 2015

Slow start from Crocker here. Apparently ICANN meetings are supposed in Summer and jokes about transgender transition are funny #sheesh

— Adrian Kinderis (@AdrianKinderis) June 22, 2015

Unfortunate & sad that on such a global platform ICANN has used Caitlyn Jenner's image to generate a laugh instead of applauding her courage

— dotgay LLC (@dotgay) June 22, 2015

I’ll be the first to leap to the defense of the joke.
I laughed. I don’t think it was offensive or insulting to Jenner or to trans people in general — it was more a joke about celebrity culture — and I don’t think any offense was intended.
If I had seen it on TV, I wouldn’t have batted an eyelid. I even made a joke about Jenner’s Vanity Fair cover, on Twitter, a couple weeks back.
But a lot of ICANN regulars are more sensitive about this kind of thing. I’ve had conversations with people who believe it was highly inappropriate for CEO Fadi Chehade to congratulate a participant, from the stage during a previous meeting, on her visible pregnancy.
For ICANN’s chairman to make a joke about a transgender person’s transition at the opening ceremony of a major meeting? That’s a misjudgment, in my view.
ICANN, recall, has recently been bombarded with letters from equal rights groups over the decision by the Economist Intelligence Unit to reject a .gay gTLD applicant’s Community Priority Evaluation.
EIU based its decision in large part on the fact that the proposed .gay community included transgender and intersex people, which the EIU said were not encapsulated by the string “gay”.
ICANN has expected standards of behavior for its meetings that cover such things as sexism and homophobia.
UPDATE: Crocker issued the following statement on ICANN’s Facebook account:

I understand that I may have inadvertently offended some during my speech at this morning’s welcome session with a reference to Caitlyn Jenner, which was intended as a salute. It opened up an important dialog that is consistent with our principles.
Please know that I view Caitlyn’s decision to be heroic and brave. I made this reference solely because of the world attention on a transition and it was not intended in any way, shape or form to be a criticism of her heroic decision. I was in no way making light or poking fun at her transition, but rather playing on the world attention on a “transition.” I apologize if my comments were perceived in a different manner than I intended them.
Dr. Stephen Crocker
ICANN Board Chair

Photo credit: James Bladel.

Chehade makes case for insider CEO in frank assessment of failings

Outgoing ICANN CEO has made a case for his successor to be somebody already intimately familiar with the ICANN community.
His remarks, which stopped short of explicitly recommending an insider take over his position when he leaves next March, came during a frank self-assessment of his shortcomings in the job at ICANN 53 in Buenos Aires yesterday.
“There are many things I could have done better or done differently,” Chehade said before an audience of Generic Names Supporting Organization members.
He freely confessed to jumping headlong into the job before he fully understood ICANN as a community; how it functions and where the real power is supposed to be wielded.
The key example of that, he said, was the creation of some of the rules now in use at the Trademark Clearinghouse.
“I meant well, I intended well, but I broke every process in the system,” he said. “I didn’t know, and I really didn’t realize that I didn’t until later.”
That’s a reference to late 2012, when Chehade convened a series of secretive, invitation-only community meetings that gave the Intellectual Property Constituency yet another chance to have rights protection mechanisms strengthened.
Chehade famously even asked participants to not even live-tweet during the discussions, it was not webcast, and recordings of (some of) the sessions were not published until DI filed a Documentary Information Disclosure Process request.
These “strawman” meetings culminated in the IPC being given the “Trademark+50” mechanism, which allows variations on trademarks to be protected, and the Non-Commercial Users Constituency to claim its voice had been under-represented and largely ignored.
For this reason and others, Chehade now says his successor had better have “very very good preparation and orientation”.
“Spending about seven minutes with the prior CEO before I took this job is not something I recommend,” he said, apparently a reference to time spent with his predecessor, Rod Beckstrom.
“This is a very complex job, and a very layered role, and I had no orientation to speak of,” he said. “If he or she is not someone who knows this community, this person better have a lot of orientation.”
He described how it took him some time to get to grips with the idea that he’s not a CEO in the conventional sense, able to make changes at will and answerable only to the board of directors.
“I am not a CEO,” he said. “There are types of CEO and this is a servant CEO job. Until you get that you keep hitting walls.”
He also described the job as “a politician without a flag” and “community facilitator”.
His biggest regret, he said, was failing to immediately realize that the facilitator function was the most important part of the job.
It took a clash last year about accountability being a key part of the IANA transition for him to realize this, he said.
“I hope you will all contribute in finding a person who will serve you well from day one, not like me, who from day one will arrive understanding all the parts of this,” he said.
Whether he intended it or not, this sounds like Chehade would err towards hiring an ICANN community veteran as his successor.
He said his replacement should be somebody who “knows all the things I learned, hopefully on day one, or on month one. Or on year one, but not three years in.”
It should be noted that Chehade turned down the chance to be a part of the team that will choose his successor.
Chehade’s position appears to diametrically opposed that of his predecessor. During Beckstrom’s tenure as “outgoing” CEO, he explicitly recommended an outsider take over the role.
“I hope that the person who replaces me will be of the highest integrity and has no recent or current commercial or career interests in the domain industry, because ICANN’s fairness, objectivity and independence are of paramount importance to the future of the internet,” Beckstrom said in October 2011.
Beckstrom’s remarks came as ICANN came under intensified scrutiny over perceived conflicts of interest.
Peter Dengate Thrush had recently come to the end of his tenure as ICANN chair, pushing through the (premature?) approval of the new gTLD program in his last few days on the job and joining applicant Minds + Machines just a few weeks later.
Chehade’s remarks yesterday come as ICANN is in a different position.
When he leaves next March, ICANN will either be freshly decoupled from its oversight relationship with the US government, or will be on the verge of it.
It won’t be an easy time for a new CEO to take over, trying to steer the organization under a fresh, untested set of governance principles.
When it comes to “insiders” with intimate knowledge of ICANN, there are a few community members not already on ICANN staff I could imagine pitching themselves for the CEO’s job.
But there’s also the possibility of an internal hire.
Remember, one of Chehade’s first actions upon taking the job was to hire the two other people who had been on the board’s final shortlist — Tarek Kamel and Sally Costerton.
Kamel, once a controversial minister in Mubarak’s Egyptian government, is currently Chehade’s senior advisor for government engagement.
Costerton was London-based EMEA CEO at the public relations agency Hill & Knowlton. Today, she’s the senior advisor for global stakeholder engagement. She maintains a blog about women in leadership positions that some readers might find eye-opening in the ICANN CEO search context.
Both were considered CEO material three years ago, and both now have three years of ICANN experience to put on their job applications (if they choose to file them).
So why is Chehade leaving ICANN? The persistent rumors have him either being offered the job of his dreams elsewhere, or suffering a severe case of ICANN burnout.
But yesterday he left little doubt whether his next job, which it has been confirmed he already has lined up, would be better that his current one.
“[ICANN CEO] is a beautiful job. It is a fantastic job. It is better job that I’ve ever had, or will ever have I think. It is amazing. Lucky is the person who will take my place,” he said.
So, um, why quit?
“The next phase of ICANN requires a different person. Don’t go rehire Fadi. You don’t need another Fadi. I was there for a purpose, for a time,” he said. “I am a classic change agent CEO. I either build things from scratch… or I transform things. ICANN doesn’t need this now.”
Asked to comment on his biggest successes, Chehade deferred, saying his legacy was something to talk about at a different time.

US Congresspeople tell ICANN to ignore GAC “interference”

A bispartisan group of US Congresspeople have called on ICANN to stop bowing to Governmental Advisory Committee meddling.
Showing characteristic chutzpah, the governmental body advises ICANN that advice from governments should be viewed less deferentially in future, lest the GAC gain too much power.
The members wrote (pdf):

Recent reports indicate that the GAC has sought to increase its power at the expense of the multistakeholder system. Although government engagement in Internet governance is prudent, we are concerned that allowing government interference threatens to undermine the multistakeholder system, increasing the risk of government capture of the ICANN Board.

The letter was signed by 11 members of the House Judiciary Subcommittee on Courts, Intellectual Property and the Internet, which is one of the House committees that most frequently hauls ICANN to Capitol Hill to explain itself.
Most of the signatories are from the Republican majority, but some are Democrats.
It’s not entirely clear where they draw the line between “engagement” and “interference”.
The letter highlights two specific pieces of GAC input that the signatories seem to believe constitute interference.
First, the GAC’s objection to Amazon’s application for .amazon. The letter says this objection came “without legal basis” and that ICANN “succumbed to political pressure” when it rejected the application.
In reality, the GAC’s advice was consensus advice as envisaged by the Application Guidebook rules. It was the US government that succumbed to political pressure, when it decided to keep its mouth shut and allow the rest of the GAC to reach consensus.
The one thing the GAC did wrong was filing its .amazon objection outside of the window envisaged by the Guidebook, but that’s true of almost every piece of advice it’s given about new gTLD applications.
Second, the Congresspeople are worried that the GAC has seized for its members the right to ban the two-letter code representing their country from any new gTLD of their choosing.
I’ve gone into some depth into how stupid and hypocritical this is before.
The letter says that it has “negative implications for speech and the world economy”, which probably has a grain of truth in it.
But does it cross the line from “engagement” to “interference”?
The Applicant Guidebook explicitly “initially reserved” all two-letter strings at the second level in all new gTLDs.
It goes on to say that they “may be released to the extent that Registry Operator reaches agreement with the government and country-code manager.”
While the rule is pointless and the current implementation convoluted, it comes as a result of the GAC engaging before the new gTLD program kicked off. It was something that all registries were aware of when they applied for their gTLDs.
However, the GAC’s more recent behavior on the two-letter domain subject has been incoherent and looks much more like meddling.
At the ICANN meeting in Los Angeles last October, faced with requests for two-character domains to be released, the GAC issued formal advice saying it was “not in a position to offer consensus advice on the use of two-character second level domain names”.
ICANN’s board of directors accordingly passed a resolution calling for a release mechanism to be developed by ICANN staff.
But by the time February ICANN meeting rolled around, it had emerged that registries’ release requests had been put on hold by ICANN due to letters from the GAC.
The GAC then used its Singapore communique to advise ICANN to “amend the current process… so that relevant governments can be alerted as requests are initiated.” It added that “Comments from relevant governments should be fully considered.”
ICANN interpreted “fully considered” to mean an effective veto, which has led to domains such as it.pizza and fr.domains being banned.
So it does look like thirteenth-hour interference but that’s largely because the GAC is often incapable of making its mind up, rarely talks in specifics, and doesn’t meet frequently enough to work within timelines set by the rest of the community.
However, while there’s undoubtedly harm from registries being messed around by the GAC recently, governments don’t seem to have given themselves any powers that they did not already have in the Applicant Guidebook.

.wine no longer blocked after EU drops complaint

Donuts and ICANN are currently in the process of signing new gTLD agreements for .wine and .vin, after the European Union and wine sellers dropped objections.
As of today, both gTLDs are “In Contracting” rather than “On Hold”, according to ICANN’s web site.
ICANN revealed earlier this week that the European Union and various wine trade associations have both dropped their Cooperative Engagement Process complaints.
CEP is less formal precursor to a much more expensive and lawyer-hungry Independent Review Process complaint.
With the CEPs out of the way, Donuts is now free to sign its contracts.
Donuts won the auction for .wine back in November, but its application was frozen due to ongoing arguments about the protection of “geographic indicators” representing wine-making regions.
Governments, particularly in Europe and Latin America, had protested that .wine and .vin should not be allowed to launch until areas such as Rioja and Champagne were given special privileges.
Last October, ICANN CEO Fadi Chehade told the French government that it was negotiating with applicants to get these protections included in the contracts.
Either Donuts has agreed to such protections, or the EU and wine-makers have gotten bored of complaining.
My feeling is the former is probably more likely, which may be controversial in itself.
There is no international agreement on GI protection — the US and Australia opposed the EU’s position on .wine — so this may be seen as a case of ICANN creating new rights where none previously existed.

Draconian Chinese crackdown puts domain industry at risk

The vast majority of top-level domain registries could soon be banned from selling domains into China due to a reported crackdown under a decade-old law.
That’s according to Allegravita, a company that helps registries with their go-to-market strategies in the country.
Allegravita released a report last week claiming that Chinese registrars will be forbidden to sell domains in TLDs that are not on a government-approved list.
The crackdown could come as early as July, the report says:

Foreign registries which have not applied for Chinese market approval are advised to do so in the near term, as unapproved Top-Level Domains are likely to be taken off the market from July this year.

As of April 30, there were only only 14 TLDs on the approved list. All of them are run by Chinese registries and only five do not use Chinese script.
Not on the list: every legacy gTLD, including .com, as well as every ccTLD apart from .cn.
The Draconian move is actually the implementation of regulations introduced by China’s Ministry of Industry and Information Technology over a decade ago but not really enforced since.
As I reported in December, Donuts was facing problems launching its Chinese-script gTLDs due to this red tape.
MIIT announced in 2012 that new gTLD applicants would need licenses to sell into China.
According to Allegrevita, which until recently was working heavily with TLD Registry (“.chinesewebsite”) on its entry into the country, it’s “no longer ambiguous” that MIIT has asserted full oversight of the domain industry in China.
MIIT’s crackdown appears to be focused on the 93 Chinese registrars it has approved to do business.
Allegravita says these companies will not be allowed to sell unapproved TLD domains to Chinese registrants, but that existing registrations will be grandfathered:

by sometime in July 2015, the MIIT will not permit unapproved registries to operate or offer their domains for sale in China. The MIIT will not interfere with existing domain registrations for unapproved registries; however, new registrations will not be permitted to be sold by Chinese registrars to Chinese registrants.

Presumably, non-Chinese registrars will reap the benefits of this as Chinese would-be registrants look elsewhere to buy their domains.
China is an important market for many registries, particularly the low-cost ones.
Judging by MIIT’s web site, getting approval to sell your TLD in China involves a fairly stringent set of requirements, including having a local presence.
MIIT said in a press release last month that the “special action” is designed “to promote the healthy development of the Internet, to protect China’s Internet domain name system safe and reliable operation

Chehade quits as ICANN CEO

ICANN president and CEO Fadi Chehade will step down from the post March 2016, he said in the last hour.
The shock news means he will have served just three and a half years in the top job by the time he leaves. He started September 14, 2012.
It sounds like he might already has a new job lined up. (UPDATE: He’s told AFP that he does, and the identity of his employer will be disclosed later this year.)
He’s told ICANN he intends “to move into a new career in the private sector (outside the Domain Name Industry)”, according to a press release.
Chehade will probably leave just about the same time as the transition of the IANA functions from US government oversight is finalized, assuming ICANN misses the target date of September 2015 and gets a six-month extension.
Here’s the full text of the press release:

The Internet Corporation for Assigned Names and Numbers (ICANN) today announced that President and CEO Fadi Chehadé has informed the Board he will be concluding his tenure in March 2016 to move into a new career in the private sector (outside the Domain Name Industry).
At the request of the Board, Chehadé will be available to work closely with ICANN after March 2016 to support the transition to a new leader, as well as to advise the Board on any issue they require including the implementation of the IANA Stewardship Transition from the US Government to ICANN and the technical operating community.
“I want to thank Fadi for his strong commitment,” said Dr. Stephen Crocker, Chair of the Board of Directors. I am very confident that with Fadi’s continued leadership and ICANN’s very experienced management team who have the breadth to ensure that ICANN continues to manage its key responsibilities effectively, that the organization’s work will proceed smoothly.”
“I am deeply committed to working with the Board, our staff, and our community to continue ICANN’s mission as we still have much to accomplish,” said Chehadé. “During the remaining 10 months of my tenure, it’s business-as-usual. My priority remains to continue strengthening ICANN’s operations and services to the global community.”

Personally, I think this is going to be horrible for continuity at ICANN. Chehade is a vision guy who had set out long-term goals for the organization that I don’t think he’ll be able to wrap up in his remaining 10 months.
What do you think?

.sucks and ICANN not invited to Congressional hearing on .sucks and ICANN

The witness list in next week’s US Congressional hearing into .sucks and ICANN accountability does not feature .sucks or ICANN.
The eight witnesses are largely drawn from outspoken critics of both ICANN and Vox Populi, either companies or trade associations and lobby groups. It’s stacked heavily in favor of intellectual property interests.
The hearing is titled “Stakeholder Perspectives on ICANN: The .sucks Domain and Essential Steps to Guarantee Trust and Accountability in the Internet’s Operation”.
With hindsight, the “Stakeholder Perspectives” bit gives away the fact that the judiciary subcommittee holding the hearing is more concerned with listening to ICANN’s critics than ICANN itself.
Mei-lan Stark, a senior intellectual property lawyer from Fox and 2014 president of the International Trademark Association, tops the list.
A critic of the new gTLD program, in 2011 Stark told Congress that the first round of new gTLDs would cost Fox “conservatively” $12 million in defensive registration fees.
It will be interesting to see if any Congresspeople confront Stark about that claim, which appeared like a gross overstatement even at the time.
One company that has been enthusiastically embracing new gTLDs — as an applicant, registry, defensive and non-defensive registrant — is Amazon, which has VP of global public policy Paul Misener on the panel.
Amazon has beef with ICANN for siding with the Governmental Advisory Committee over the battle for .amazon, which Amazon has been banned from obtaining, so it’s difficult to see the company as an overly friendly witness.
Next up is John Horton, president of LegitScript, the company that certifies legitimate online pharmacies and backs the .pharmacy new gTLD.
LegitScript is in favor of greater regulation of the domain name industry in order to make it easier to shut down potentially dangerous web sites (though opponents say it’s more often more interested in protecting Big Pharma’s profit margins). This month it called for a ban on Whois privacy for e-commerce sites.
Steve Metalitz, counsel for the Coalition for Online Accountability (a lobbyist for the movie and music industries) and six-term president of the ICANN Intellectual Property Constituency, is also on the list.
Jonathan Zuck, president of ACT The App Association (aka the Association for Competitive Technology, backed by Verisign and other tech firms) is on the list.
NetChoice director Steve DelBianco is also showing up again. He’s an ICANN hearing mainstay and I gather with this appearance he’ll be getting the final stamp on his Rayburn Building Starbucks loyalty card. That means a free latte, which is always nice.
Internet Commerce Association counsel Phil Corwin is a surprise invitee. ICA represents big domainers and is not a natural ally of the IP side of the house.
Bill Woodcock, executive director of Packet Clearing House, rounds off the list. PCH might not have instant name recognition but it provides Anycast DNS infrastructure services for scores of ccTLDs and gTLDs.
The committee hearing will take place at 10am local time next Wednesday.
A second hearing, entitled “Stakeholder Perspectives on the IANA Transition” will be held four hours later by a subcommittee of the House Energy & Commerce committee. The witnesses for that one have not yet been announced.
It’s going to be a busy day for ICANN bods on Capitol Hill.

Congress to put .sucks on trial

The US Congress is to hold a hearing to look into the .sucks gTLD and ICANN accountability.
A hearing entitled “Stakeholder Perspectives on ICANN: The .sucks Domain and Essential Steps to Guarantee Trust and Accountability in the Internet’s Operation” has been scheduled by the House Subcommittee on Courts, Intellectual Property, and the Internet
It will take place in Washington DC next Wednesday, May 13.
The list of witnesses does not yet appear to have been published.
I would guess we’d be looking at, at the very least, somebody senior from ICANN, somebody senior from .sucks registry Vox Populi, and an intellectual property lawyer.
It was ICANN’s Intellectual Property Constituency that complained about .sucks’ sunrise policies and fees, causing ICANN to refer the matter to US and Canadian trade regulators.
The title of the House hearing suggests that the .sucks controversy will be inextricably tied to the broader issue of ICANN accountability, which is currently undergoing a significant review as ICANN seeks to split permanently from US government oversight.
That’s not great optics for ICANN; I’m sure the organization would rather not have its performance judged on what is quite an unusual edge case emerging from the new gTLD program.

Dot-brand gTLD guilty of domain name hijacking

Fashion retailer Mango, which owns its own dot-brand gTLD, has been found guilty of Reverse Domain Name Hijacking after allegedly doctoring evidence in a .uk cybersquatting case.
The company, which runs .mango, lost a Nominet Dispute Resolution Service complaint against New Zealand-based domain investor Garth Piesse over mango.co.uk and mango.uk.
It’s only the sixth RDNH finding in 13 years of DRS history.
Mango tried to buy the domain using a pseudonym and, when Piesse asked for “six figures”, filed the DRS instead.
Piesse claimed in what appears to have been a well-argued defense that the person attempting to buy the domain on Mango’s behalf did not identify Mango as the would-be buyer.
Further, he claimed that Mango deliberately tried to hide this fact from the DRS panel by scrubbing its negotiator’s email address from evidence it submitted.
While DRS panelist Tim Brown did not agree that this omission alone was enough to find RNDH, he agreed that Mango did not have “entirely clean hands”. He ruled:

The sequence of events in the present case appears to show that the Complainant attempted to buy from the Respondent. When these negotiations failed the Complainant started proceedings under the DRS. As I have noted, the Complainant has relied on bare assertion and has provided a paucity of evidence to support its arguments.
Even a cursory reading of the Policy, Procedure and extensive guidance on Nominet’s website would quickly show that a matter concerning a clearly generic, dictionary term would require a higher standard of argument and evidence than is perhaps common. That the Complainant has failed to come anywhere close to providing sufficient argument or evidence is, in my view, strongly indicative that the Complainant pursued this dispute in frustration at the Respondent’s unwillingness to sell for a price it was willing to pay, rather than because of the merits of its position in terms of the Policy’s requirements.
I conclude that the Complainant brought a speculative complaint in bad faith in an attempt to deprive the Respondent of the Domain Names. I therefore determine that the Complainant has engaged in Reverse Domain Name Hijacking.

Spain-based Mango has owned its trademarks for well over a decade, and Piesse only got his hands on the domains in question in 2013 and 2014.
Piesse, who owns about 18,000 domains, was able to show that Mango the brand is unheard of in New Zealand and that he has a track record of buying fruit-based .uk domain names.