The Need for an Audit of ICANN

• The Internet Corporation for Assigned Names and Numbers (ICANN) is a captured regulator: although it says it makes policy in a top-down, bottom-up fashion where all Internet users are considered, in reality, those with financial interests in ICANN's operations hold a majority of seats in ICANN's policy-making body, the Generic Names Supporting organization (GNSO).


• ICANN's policy decisions are clouded by those with financial interests in Internet governance. The decision to produce an unlimited amount of generic top-level domains (gTLDs) without taking demand into account or creating proper IP or security measures is a prime example of this.


• New gTLDs will lead to increased cybersquatting, or the bad faith acquisition of a trademark within a domain name. In the current domain space, cybersquatting costs businesses $1 billion a year, and following ICANN’s release of new gTLDs the cost is expected to be an additional $1.6 billion. Current legal recourse has proven ineffectual and ICANN has not taken proper precautions itself to protect brand owners and consumers against cybersquatting.


• ICANN is incapable of correcting itself because there aren't any oversight or accountability mechanisms built into its structure. Some incorrectly believed that the Joint Project Agreement (JPA) made ICANN accountable to the US government, but in reality it and its successor, the Affirmation of Commitments (AOC), allow ICANN to legislate as it pleases without repercussions.


• It is important that ICANN is running safely, securely, fairly, and overall to the best of its ability.


• The U.S. government should pressure ICANN into submitting to a full-scale audit of its structure, governance, oversight, and security mechanisms. It would put all of ICANN'scurrent and future policies, including the new gTLD policy, on hold until recommendations for improvement could be made by a group of government representatives, businesses, and academics. This group would provide a non-partisan analysis of ICANN, but would likely come to the same conclusion that brand.