Security Expert Talks About ICANN, Verisign And The Demise of Free Speech On The Internet

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Security Expert Talks About ICANN, Verisign And The Demise of Free Speech On The Internet

The U.S. government plans within weeks to end much of its oversight of the California nonprofit that helps run the internet, a move with broad international support. But recent business deals by the nonprofit are threatening to roil those plans.
Under the deals, the nonprofit Internet Corporation for Assigned Names and Numbers, known as Icann, is set to give significant new business to its largest contractor, Verisign Inc., under circumstances that some say show favoritism.

One of the deals would give Verisign a no-bid extension on its current contract to run the huge dot-com domain. In the other deal, Verisign emerged as a surprise potential winner of the contract to operate the new dot-web domain by quietly putting $130 million behind another firm’s bid in an Icann auction.

Icann denies that it has given special treatment to Verisign, saying its focus has been promoting the internet’s stability and security. Verisign, which is based in Reston, Va., is widely viewed as a highly competent manager of the domain-name system.

The deals open a window into what is a netherworld to most users—the structures and firms that keep the chaotic-seeming internet running smoothly.

Icann handles the internet’s technical operations, including the crucial domain-name system, under a longstanding arrangement with the U.S. government. Icann also oversees the firms that run many of the internet’s top-level domains, such as dot-com.

Verisign currently runs the dot-com domain as well as dot-net, and also helps maintain the domain-name system. It makes money by receiving fees paid by people who register websites, while ensuring the registry’s operation is smooth, stable and secure.

The Obama administration is preparing to end much of its oversight of Icann on Oct. 1. The government hasn’t intervened lately in Icann’s operations, but its authority to do so has been seen as a backstop should something go wrong.

Many high-tech firms view the shift as essential to maintaining international support for the internet’s governance, as foreign countries increasingly bridle at the U.S. role. But some conservative critics, who have long worried that Icann could fall under foreign control, are seizing on the recent business deals as they try to block the government’s move. They are hoping the deals will raise concerns among congressional Democrats, too.

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Critics including Sen. Ted Cruz (R., Texas) say Icann’s recent deals with Verisign show it to be a feckless regulator.

“Where there’s smoke there’s fire,” Rep. Sean Duffy (R., Wis.), who has lined up with Mr. Cruz, said in an interview. The lawmakers have called for a Justice Department investigation.

Icann denies favoritism. Regarding accusations that Icann is too cozy with Verisign, Akram Atallah, president of Icann’s global domains division, said, “‘Cozy with Verisign’ is an oxymoron,” in reference to the firm’s reputation as a tough bargainer.

Critics face an uphill fight to derail the government’s planned transfer.

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Icann has proposed giving Verisign a no-bid extension of its long-running contract to operate the dot-com domain, two years ahead of schedule. Verisign’s current contract is set to expire in 2018; the extension would last through 2024.

Verisign has had exclusive control of the dot-com registry since 2000. Starting in 2006, Verisign’s contract with Icann has had an automatic-renewal clause, meaning no bidding is required so long as Verisign meets basic performance standards. Other domain operators have received similar deals.

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Critics say Verisign’s hold on the dot-com domain already has made it an effective monopoly. Mr. Atallah says the contract extension is less significant than it appears, since Verisign would be entitled to automatic renewal in two years anyway.

The agency that oversees Icann, the National Telecommunications and Information Administration, hasn’t yet endorsed the contract extension. Noting that it hasn’t yet been approved by the Icann and Verisign boards, an NTIA spokesman said, “We have not been presented with anything to consider at this point.” NTIA would be able to keep price limits in place for the duration of the contract extension.

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In the second deal, Verisign covertly provided most of the funding for a winning bid in a recent Icann auction for the right to run the potentially lucrative dot-web domain.

The Verisign-backed bidder, Nu Dot Co LLC, won the July 27 auction with a bid of $135 million. Then Verisign disclosed that it had put up $130 million of the bid and said it expected Nu Dot Co to hand over the dot-web deal to Verisign. Nu Dot Co didn’t respond to a request for comment. Such assignments aren’t unusual.

In a lawsuit against Icann in federal court in Los Angeles, one losing bidder, Donuts Inc., accused Icann of using its authority “to unfairly benefit” an applicant.

Mr. Atallah said Icann and its ombudsman investigated the suspicions ahead of the auction but no action was merited. “Now we have some other evidence that is surfacing, and we are looking again,” Mr. Atallah said. “What happens, I cannot project.”

United Nations Might Take Control of Internet

When the Obama administration announced its plan to give up U.S. protection of the internet, it promised the United Nations would never take control. But because of the administration’s naiveté or arrogance, U.N. control is the likely result if the U.S. gives up internet stewardship as planned at midnight on Sept. 30.

On Friday Americans for Limited Government received a response to its Freedom of Information Act request for “all records relating to legal and policy analysis . . . concerning antitrust issues for the Internet Corporation for Assigned Names and Numbers” if the U.S. gives up oversight. The administration replied it had “conducted a thorough search for responsive records within its possession and control and found no records responsive to your request.”

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It’s shocking the administration admits it has no plan for how Icann retains its antitrust exemption. The reason Icann can operate the entire World Wide Web root zone is that it has the status of a legal monopolist, stemming from its contract with the Commerce Department that makes Icann an “instrumentality” of government.

Antitrust rules don’t apply to governments or organizations operating under government control. In a 1999 case, the Second U.S. Circuit Court of Appeals upheld the monopoly on internet domains because the Commerce Department had set “explicit terms” of the contract relating to the “government’s policies regarding the proper administration” of the domain system.

Without the U.S. contract, Icann would seek to be overseen by another governmental group so as to keep its antitrust exemption. Authoritarian regimes have already proposed Icann become part of the U.N. to make it easier for them to censor the internet globally. So much for the Obama pledge that the U.S. would never be replaced by a “government-led or an inter-governmental organization solution.”

Rick Manning, president of Americans for Limited Government, called it “simply stunning” that the “politically blinded Obama administration missed the obvious point that Icann loses its antitrust shield should the government relinquish control.”

The administration might not have considered the antitrust issue, which would have been naive. Or perhaps in its arrogance the administration knew all along Icann would lose its antitrust immunity and look to the U.N. as an alternative. Congress could have voted to give Icann an antitrust exemption, but the internet giveaway plan is too flawed for legislative approval.

As the administration spent the past two years preparing to give up the contract with Icann, it also stopped actively overseeing the group. That allowed Icann to abuse its monopoly over internet domains, which earns it hundreds of millions of dollars a year.

Earlier this month, an independent review within Icann called the organization “simply not credible” in how it handled the application for the .inc, .llc and .llp domains. The independent review found Icann staffers were “intimately involved” in evaluating their own work. A company called Dot Registry had worked with officials of U.S. states to create a system ensuring anyone using these Web addresses was a legitimate registered company. Icann rejected Dot Registry’s application as a community, which would have resulted in lowered fees to Icann.

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Delaware’s secretary of state objected: “Legitimate policy concerns have been systematically brushed to the curb by Icann staffers well-skilled at manufacturing bureaucratic processes to disguise pre-determined decisions.” Dot Registry’s lawyer, Arif Ali of the Dechert firm, told me last week his experience made clear “Icann is not ready to govern itself.”

Icann also refuses to award the .gay domain to community groups representing gay people around the world. Icann’s ombudsman recently urged his group to “put an end to this long and difficult issue” by granting the domain. Icann prefers to earn larger fees by putting the .gay domain up for auction among for-profit domain companies.

And Icann rejects the community application for the .cpa domain made by the American Institute of CPAs, which along with other accounting groups argues consumers should expect the .cpa address only to be used by legitimate accountants, not by the highest bidder. An AICPA spokesman told me he has a pile of paperwork three feet high on the five-year quest for the .cpa domain. The professional group objected in a recent appeal: “The process seems skewed toward a financial outcome that benefits Icann itself.”

The only thing worse than a monopoly overseen by the U.S. government is a monopoly overseen by no one—or by a Web-censoring U.N. Congress still has time to extend its ban on the Obama administration giving up protection of the internet. Icann has given it every reason to do so.

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The U.S. Commerce Department on Monday delayed for at least a year its plans to give up oversight of a key component of Internet governance.

The department said it would renew its contract with the Internet Corp. for Assigned Names and Numbers for one year. Icann administers the Internet’s domain-name system, through contracts with the companies that sell website names and addresses.

Commerce Department Renews Contract With The Internet Corp. For Assigned Names And Numbers


Commerce has overseen Icann since the organization was created in 1998. Last year, the Obama administration said it planned to transfer Icann oversight to an unspecified group of international stakeholders by September 2015.

Critics of the plan have expressed concerns that it may open the door to influence by foreign governments that aren't committed to Western principles of free expression, and may want to impose different rules for administering the Internet in different parts of the world.

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“It has become increasingly apparent over the last few months that the community needs time to complete its work, have the plan reviewed by the U.S. government and then implement it if it is approved,” Assistant Commerce Secretary Lawrence Strickling wrote in a blog post.

Mr. Strickling wrote that the government plans to extend its contract with Icann for one year to Sept. 30 of 2016, with options to extend it another three years. Mr. Strickling said Commerce informed Congress of the plan on Friday.

Commerce said the extension will provide time to work out additional details on how a “multistakeholder” governance approach might work.

Icann Chief Executive Fadi Chehadé said in May he plans to leave in March 2016 to work in the private sector. Mr. Chehadé has championed greater independence for the group. In 2013, he praised Brazil’s call for the U.S. to relinquish oversight of the agency in the wake of disclosures that the National Security Agency monitored Brazil’s leaders and businesses online.

“This is an important step,” said House Energy and Commerce Committee Chairman Fred Upton (R., Mich.) and Reps. Greg Walden (R., Ore.) and John Shimkus (R., Ill.) in a statement. “The administration is recognizing, as it should, that it is more important to get this issue right than it is to simply get it done.”

In June, the House passed legislation to give Congress oversight of the Obama administration’s plans to transfer stewardship of Icann.

“We appreciate the administration’s efforts and look forward to working with them, and the global Internet community, to get this done right,” the Republican legislators said Monday.

Tuesday, Icann Senior Adviser Theresa Swinehart said in a statement that the agency is “pleased” by the contract extension. Ms. Swinehart said there has been progress in devising a new governance structure, but “additional time is necessary for the global community to complete its work and for Icann to implement the community’s proposals.”

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The US government has formally approved a plan to transition control of the internet's administrative tasks to the private sector.

In an announcement Thursday, the National Telecommunications And Information Administration (NTIA) gave the green light to a plan developed over two years by the internet community to hand control of the critical Internet Assigned Numbers Authority (IANA) contract to Californian non-profit Internet Corporation for Assigned Names and Numbers (ICANN).

"Today's announcement marks an important milestone in the US government's 18-year effort to privatize the Internet's domain name system," said Commerce secretary Penny Pritzker. "This transition ensures that the Internet continues to flourish as a platform for innovation, economic growth and free expression."

ICANN has run the IANA functions – which cover the highest level of internet: the DNS, IP addresses, and internet protocols – since the day it was incorporated in 1999, but through a contract awarded repeatedly to it by the NTIA.

This plan moves the contract into ICANN's hands and so removes the US government from its position of direct control – an important change in an ever more global internet.

Following the formal approval, the transition is in line to be completed by the end of the current IANA contract – 30 September 2016.

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Reaction

The announcement has been met with cautious optimism by the internet community.

"This is good news and an important milestone. It is ... one more step to ensure the long-term health of a free and open Internet," said the Internet Engineering Task Force (IETF) in a statement. Although it added: "The implementation efforts related to the plan are ongoing. As always, the Internet community needs to take care of the IANA system on a continuous basis."

The Computer And Communications Industry Association (CCIA), the Internet Association, and the Internet Infrastructure Coalition (i2Coalition) signed a joint statement which read: "The internet economy applauds NTIA for its deliberative and thorough work reviewing the ICANN transition proposals, [which] provide the internet with the best path forward for self governance."

Again however, they note: "We will remain engaged and vigilant as the transition proceeds to ensure the continued success of the multistakeholder model."

"Father of the internet" Vint Cerf, who was chairman of ICANN for many years, also welcomed the decision and gave some history behind the IANA functions in an article – but not without also declaring some "trepidation" over the plan's complexity and noting that "there is still a good deal of work ahead to actually implement what is ultimately approved."

And the Global Commission on Internet Governance (GCIG) said the decision was "an important step toward ensuring that no one entity can exert undue influence or control over the Internet," while warning about potential delays: "We now call upon the US government to adopt that plan ... Failure to do so will send the wrong message to the international community, increase distrust, and will likely encourage some governments to pursue their own national or even regional internets."

That warning is in response to continued efforts by a small group of Republican congressmen opposed to the move, out of fear that it could give other governments such as China and Russia undue influence on the internet's future evolution.

One, Ted Cruz, has put forward a new bill called the Protecting Internet Freedom Act, that would "prevent the Obama administration from giving the Internet away to a global organization that will allow over 160 foreign governments to have increased influence over the management and operation of the Internet."

Last month, Senator Marco Rubio was behind a letter, signed by a small number of other Congressmen, that asked the NTIA to delay the transition until the changes proposed in the plan could be tested out.

And Congressmen have, for the third time, included a rider in a must-pass finance bill that would prevent the NTIA from using any funds to aid the transition.

Despite those efforts, however, the plan is expected to pass.

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Criticism

Despite the official green light and the joy expressed by the internet community over the fact that the US government's role will finally be pulled out of the internet's functioning, the reality, as repeatedly expressed in broad terms, is that people are still very unhappy with the organization that will take over the functions – ICANN.

As we have covered in some detail, ICANN has fiercely resisted any effort to impose greater transparency and accountability on it, and although the US government has approved the plan, it will not be in a position to ensure that what is written down actually happens in reality.

ICANN has been through no fewer than eight previous reviews and efforts to change its approach and culture, each having achieved only small, incremental improvements. ICANN's staff and board also succeeded over the course of the two-year discussions to remove or blunt all proposals that would have made changes that limited their control.

In its place, the internet community is relying on highly procedural, overly complex processes to bring about change: something that the organization's staff have successfully navigated in the past.

It is worth noting that in the NTIA's extensive review documentation, it gives a persistent [PDF] "yellow light" – meaning "criteria component partially met" – to the new structure that will be developed to hold the IANA contract, a body that will be a subsidiary of ICANN but whose functioning is still an open
question.

Faint Praise
And the independent experts brought in to assess the proposed accountability and transparency changes to ICANN make repeated mention of the fact that the processes are complicated, untested and not currently in place. "While few organizations would find such an extremely complex framework attractive...," they note in their report [PDF].

Later: "Throughout the Recommendations, we see the choice to emphasize consensus and dialogue over expediency and efficiency."

And later: "We feel confident that the Recommendations, should they be implemented, incorporate strong protections." (Our emphasis.)

The report also notes: "Although the recommendations demonstrate a strong commitment to auditing and transparency, in some narrow areas [they] commit only to improving accountability in the future." Those "narrow areas" are notable by the fact that they directly impact staff: document disclosure and an effective whistleblowing policy being just two.

The endemic problems at ICANN, which are most strongly reflected in its staff and board's intransigence, have also started spreading to the broader ICANN community – a community that is increasingly reliant on the organization's financial support. Over the course of the IANA transition plan's development, that community settled for untested convoluted decision-making processes over solid reform.

The NTIA's independent report paints that reality in the most positive terms: "While this emphasis on multistakeholder processes, dialogue, and consensus might not be well-suited for companies that prioritize efficiency and profits, or nonprofits that pursue a singular mission on behalf of a single, well-defined constituency, they are well-matched to the special needs and role of ICANN."

In other words, it is what it is.
ICANN's Latest Money Grab

One year ago, I already covered the impact that ICANN's latest money grab was having on security, see https://isc.sans.edu/forums/diary/httpsyourfakebanksupport+TLD+confusion+starts/18651/. ICANN is the organization that rules the Interwebs, and decides which "top level" domain names can be used. A while back, they decided that they needed more money, and embarked on a "manifest destiny" like trek to discover domain name lands that they could homestead for free, and then sell to the highest bidder.

Thanks to this, we now have generic top level domains (gTLDs) like ".support" and ".shop" and ".buy" and ".smile", in addition to ".com", ".net" and co. Some of these new native lands that ICANN offers seem to be rich in gold or silver, since A LOT OF MONEY is changing hands for the privilege to own one of these freshly plowed plots of cyberspace.

The problem is, most newly arriving settlers are outlaws, and there is no sheriff in town! For example, this past week, most of the redirector pages leading to exploit kits were domiciled under the new gTLDs .top and .xyz. To add insult to injury, some of the miscreants that register these domains don't even TRY to hide. They use the same name and email address for six, eight weeks in a row. Once a domain of theirs gets blacklisted by filters, the bad guys already have 10 other domains registered, and they simply relocate.

Two weeks ago, ICANN published their "Revised Report on New gTLD Program Safeguards to Mitigate DNS Abuse", suggesting - at least on the surface - that they are aware of what is going on. But let me share a couple of nuggets:

[...] ICANN and its various supporting organizations have some purview over registration issues through the policy-making and enforcement processes, while use issues are more difficult to confront given ICANN’s limited authority over how registrants use their domain names. [Translation: Malware TLDs are not our fault]

The ICANN-sponsored survey referenced above reported that consumer trust in new gTLDs is much lower than in legacy TLDs, with approximately 50% of consumers reporting trust in new versus approximately 90% reporting trust in legacy TLDs. [Translation: Well, DUH! Sometimes, consumers are right!]

[...] New TLD domains are more than twice as likely as legacy TLDs to appear on a domain blacklist—a list of domains of known spammers— within their first month of registration. [Translation: We knew this was going to happen, but lets conduct another study while we rake in the dough]

The report goes on to list the "Nine Safeguards" that ICANN put in place to prevent abuse. All of them make perfect sense. What is glaringly obviously missing, though, is what I would suggest as Safeguard #10: "A registrar where more than 1% of their registered domains, or more than 0.01% of the registered domains per TLD, end up on a public blacklist (like Google SafeBrowsing) shall receive a warning, and upon reoccurrence within 3 months, have their license to act as a registrar withdrawn by ICANN with immediate effect."

That whole "Oh we can't do anything about how domains are USED" cop-out is utter bull. ICANN raked in piles of $$ in the gTLD land grab, and they can afford to hire auditors who compare the zone files against the public block lists, and take decisive action against the registrars that feed on the bottom. Financial institutions have a FTC enforced "red flag rule" that requires them to know who they do business with, or face the consequences. Why don't registrars?

As as (small) upside, ICANN helpfully publishes a list of all the new gTLD domains. If you are running a corporate web filter, I suggest you simply chuck them all onto the BLACKLIST, no questions asked, and keep them blocked. Fallout will likely be minimal. You can always re-open a specific gTLD once you had 20 or so really worthwhile and business relevant white listing requests for domains under it. Odds are, 95% of the new gTLDs will never reach that threshold. And by blocking them by default, you are bound to keep lots and lots of malware, spam and phishing URLs at bay.

Here's a special shout-out to Charity Baker aka Jaclyn Latonio, who yesterday registered about 200 typo domains like citgibank.com, symanpec.com, jpmoragan.com, etc, showing how such blatantly obvious abuse is not limited to the new gTLDs. Rather, lack of oversight, accountability and enforcement are the core of the system. Makes one wonder where all that money goes.


You are welcome, ICANN. Consider this my public input to your request for comment.

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Your questions and comments are greatly appreciated.

Monty Henry, Owner

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* Similar to traditional layaway, e-layaway lets you make regular payments towards merchandise, with delivery upon payment in full. Payments are automatically deducted from your bank account or made in cash using MoneyGram® ExpressPayment®

A Tool for Planning Ahead:

* Our e-layaway makes it easy for smart shoppers like you to plan ahead and buy items such as bug detectors, nanny cameras, audio bugs, gps trackers, and more!

No Hidden Charges or Mounting Interest:

Our e-layaway makes shopping painless by eliminating hidden charges and monthly interest fees. Our customers pay a flat transaction fee on the initial purchase price.

NO RISK:

* You have the right to cancel any purchase and will receive a refund less a cancellation fee. See website for details.

Security and Identity Protection:

DPL-Surveillance-Equipment has partnered with trusted experts like McAfee and IDology to ensure the security and integrity of every transaction. Identity verification measures are integrated into our e-layaway system to prevent fraudulent purchases.

Note: Simply Choose e-Lay-Away as a "Payment Option" in The Shopping Cart

DPL-Surveillance-Equipment.com is a world leader in providing surveillance and security products and services to Government, Law Enforcement, Private Investigators, small and large companies worldwide. We have one of the largest varieties of state-of-the-art surveillance and counter-surveillance equipment including Personal Protection and Bug Detection Products.

Buy, rent or lease the same state-of-the-art surveillance and security equipment Detectives, PI's, the CIA and FBI use. Take back control!

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