Domain Names Transferred to Department of Commerce

By Stacy Cholewinski

Over the past two years, CRN has been reporting the story behind domain name registration. Network Solutions Inc. began registering domain names under the authority of the National Science Foundation (NSF) through a cooperative agreement with the United States Government in 1993. There has been nearly 2 million domain names registered under the top-level domains of .com, .edu, .gov. .net, and .org with Network Solutions over this five year time frame.

NSF has now transferred the cooperative agreement to the Department of Commerce. Commerce will now administer the registration of domain names in an effort to move the practice away from a government-centered arrangement toward a more private-sector one.

It has been reported by the Council of Scientific Society Presidents that, "after an extensive public comment process, the Department of Commerce issued a Statement of Policy on privatizing and the future administration of the Internet domain name system (DNS). The policy statement describes a process whereby a new, globally representative, not-for-profit corporation, formed by the private sector, would assume various responsibilities for DNS management, including development of future policies for domain name registration. (see: http://www.ntia.doc.gov/ntiahome/domainname/6_5_98dns.htm)."

CRN had also reported in November 1997 that more than $60 million in fees had been accumulated through the former agreement for the registration of domain names. Network Solutions had been required to put 30% of registration fees collected into an interest-bearing account designated as an intellectual infrastructure fund. This money had been slated for use by NSF for the Next Generation Internet project. However, disagreement over the legitimacy of the collection of such fees and problems with the appropriation of its use had frozen access to the funds.

A class action lawsuit against the collection of these fees had been filed, but in late August of this year a District of Columbia Circuit Court dismissed the lawsuit and lifted the preliminary injunction on the use of these funds by NSF.

However, the debate over the funds did not end. Senate Majority Leader Trent Lott (R-Mississippi) sought to attach a provision to the Internet Tax Freedom Act, S. 442, that would repeal the provision in the FY '98 emergency supplemental appropriations law which directed the $60 million in question to NSF.

However, Senator Lott was unsuccessful in adding such language to the Internet Tax Freedom Act.

At press time, Congress was preparing its final legislation of the session — a catchall spending bill for FY '99. Lott's language could still be included in this bill.

CRN will keep you informed in coming issues of the status of the use of these funds.