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>>VINT CERF: GOOD MORNING, LADIES AND GENTLEMEN. I APOLOGIZE FOR THE DELAY IN GETTING STARTED, BUT YOU CAN BLAME IT ON MR. GATES AND THE SLOW XP SYSTEM HERE.
THIS IS THE SECOND HALF OF THE PUBLIC FORUM. AND WE HAVE A SERIES OF BOARD COMMITTEE REPORTS FOR YOU. AND THEN WE'LL GET INTO SOME OTHER MATERIAL.
SO LET ME START WITH ALEJANDRO PISANTY, WHO IS THE CHAIRMAN OF THE BOARD GOVERNANCE COMMITTEE, AND ASK HIM TO PRESENT HIS REPORT.
AND WHILE HE'S GETTING HIMSELF SET UP AT THE LECTERN, LET ME REMIND YOU THAT THE OMBUDSMAN, FRANK FOWLIE, HAS AN ANNUAL REPORT WHICH IS ON A TABLE OUTSIDE OF THIS ROOM. I WILL MENTION THIS SEVERAL OTHER TIMES, FRANK, SINCE WE HAVE A FAIRLY LIGHT ATTENDANCE THIS MORNING.
I'M ASSUMING PEOPLE WHO ARE IN THIS ROOM ARE EITHER PEOPLE WHO WERE UNABLE TO SLEEP LONGER, FOR SOME REASON, OR WHO ARE SOMEHOW OBSESSIVE AND COMPULSIVE ABOUT COMING TO COMMITTEE REPORTS.
BUT I THANK YOU FOR COMING IN AT THIS HOUR.
SO ALEX, I'LL TURN IT OVER TO YOU.
>>ALEJANDRO PISANTY: GOOD MORNING, CHAIR. EVERYBODY. THE BOARD GOVERNANCE COMMITTEE HAS CONTINUED AND ITS ACTIVITY STARTED WITH THE PLAN AT THE LATEST MEETING IN MAR DEL PLATA. WE HAVE ESSENTIALLY CONTINUED WITH E-MAIL DISCUSSIONS AND FACE TO FACE MEETINGS HERE. WE HAVE BOARD COMMITTEE MEMBERSHIP, NEW BOARD COMMITTEE FORMATION, ALTERATION OR ADJUSTMENT OF BOARD COMMITTEE, AND GOVERNANCE PRINCIPLES.
.
MEMBERS OF THE COMMITTEE HAVE -- WE HAVE CONSIDERED DRAFTS FOR CHARTERS FOR TWO POTENTIAL NEW COMMITTEES WHICH NEED TO BE FORMED, ONE OF THEM IS A COMPENSATION COMMITTEE AT THE BOARD LEVEL, AND THE OTHER IS A COMMITTEE FOR STRATEGIC PLANNING.
THE COMPENSATION COMMITTEE IS NEEDED, REQUIRED, DEMANDED FOR MANY REASONS, AND IT WILL LOOK AT THE COMPENSATION STRUCTURE FOR THE ORGANIZATION. IT'S PLANNED TO HAVE IT LOOK AT -- MAKE DECISIONS ON THE PRESIDENT, CEO COMPENSATION AND ON THE STRUCTURE AND INCENTIVES FOR THE -- FOR COMPENSATION OF THE OFFICIALS OF ICANN.
THE COMMITTEE FOR STRATEGIC PLANNING IS INTENDED TO ASSIST THE BOARD IN PARTICULAR IN THE FUNCTIONS THAT THE BOARD WILL INCREASINGLY HAVE IN RELATION TO STRATEGIC PLANNING.
WE HAVE ALSO ASKED THE GENERAL COUNSEL TO ASSIST IN DRAFTS, IN REVIEWING THEM AND PUTTING THEM IN CLEAN LEGALESE AND LINE THEM WITH LEGAL REQUIREMENTS, ESPECIALLY THE COMPENSATION COMMITTEE, WHICH IS A SOLID JOB. WE HAVE TO COMPLY WITH THE LAWS OF THE GEOGRAPHICAL LOCATION OF THE SEAT OF THE COMPANY -- OF THE CORPORATION, OF THE ORGANIZATION. I HATE TO USE THIS WORD "COMPANY" HERE. AND ALSO TO LEAD THE NATIONAL, NONPROFIT, PUBLIC SERVICE CHARACTER OF ICANN.
SO THIS IS A SOLID TASK. AND WE HAVE HAD INTENSE DISCUSSION OF THIS WITH BOARD GOVERNANCE COMMITTEE MEMBERS, AND THESE WILL HAVE TO STILL CONTINUE.
SINCE WE HAVE ALSO BEEN WORKING FOR SOME TIME ON CORPORATE GOVERNANCE PRINCIPLES, WE HAVE STARTED WITH A CLEAN DRAFT, CLEAN-SHEET DRAFT, NOT CONTINUING THE CONTROVERSIAL ONE WE HAD BEFORE, AND WE CONTINUE TO WORK ON THIS ONE, TOO.
WORK IS ALSO CONTINUING ON THE FUNCTION THAT THE BOARD GOVERNANCE COMMITTEE HAS IN THE OVERSIGHT OF THE OMBUDSMAN FUNCTION AND HIS CONTRACTUAL RELATIONSHIP WITH ICANN, AND THAT'S BEING PREPARED FOR THE NEXT BOARD GOVERNANCE COMMITTEE MEETING.
WE HAVE ALSO RECEIVED REQUESTS FROM THE CHAIR OF THE AUDIT COMMITTEE, NJERI RIONGE, TO DO SOME CHANGES IN THE CHARTER OF THE AUDIT COMMITTEE. THERE HAS BEEN SOME DISCUSSION. THERE APPEAR TO BE SOME INTERPRETATIONS THAT MAY NEED TO BE ALIGNED OF HOW TO READ THIS.
IT SEEMS THAT THE DRAFT GIVES RISE TO QUITE DISPARATE READINGS, AND WE'RE WORKING ON IT AS INTENSIVELY AS WE CAN.
AND THAT'S IT. I DON'T KNOW IF YOU WANT TO HAVE QUESTIONS RIGHT NOW OR COMMENTS.
>>VINT CERF: THANK YOU VERY MUCH, ALEX. ARE THERE ANY QUESTIONS FOR ALEX AT THIS POINT?
KNOWN WHERE THE HUM IS COMING FROM.
OKAY. THANK YOU VERY MUCH, ALEX.
LET ME CALL UPON VENI MARKOVSKI, THEN, TO GIVE THE MEETINGS COMMITTEE REPORT. IS VENI HERE?
>>VENI MARKOVSKI: I'M HERE.
>>VINT CERF: THERE YOU ARE. SEE I'M LOOKING ALL OVER THERE AND I CAN'T EVEN SEE YOU.
>>VENI MARKOVSKI: OVER THERE IS JOICHI ITO WHO SWITCHED SEATS FROM YESTERDAY, AND WE STILL ARE INVESTIGATING WHY.

SO THE MEETINGS COMMITTEE HAD A TWO-HOUR MEETING ON JULY THE 12TH. DURING THE DISCUSSION, MANY ITEMS WERE TAKEN INTO CONSIDERATION, AMONG THEM TIME OF THE MEETINGS, DURATION OF MEETINGS, NEED FOR BETTER PROGRAMMING FOR MEETINGS.
THERE WERE SUGGESTIONS FROM THE GNSO TO HAVE FACE-TO-FACE FOUR- TO SIX-HOUR MEETINGS WITH THE BOARD BEFORE/AFTER THE ICANN MEETINGS. WE'RE CONSIDERING THAT, KEEPING IN MIND THE GNSO PROPOSAL TO HAVE THEMATIC SESSION MEETINGS ALSO, AND WE'RE THINKING HOW TO CREATE IT IN A SUITABLE FORM.
ALTHOUGH WE CANNOT HANDLE SUCH A MEETING IN VANCOUVER, WE'RE DOING THE BEST WE CAN FOR THE BOARD TO BE AVAILABLE AS MUCH AS POSSIBLE DURING THE COMING MEETING IN CANADA. WE ALSO DISCUSSED POSSIBLE ORGANIZATION OF FACE-TO-FACE MEETINGS AROUND TOPICS WHICH ARE OF INTEREST FOR OTHER CONSTITUENCIES SO THEY CAN ALSO JOIN.
THAT IS THE GNSO MEETING WITH THE BOARD MAY BE ALSO OPEN FOR OTHER CONSTITUENCIES.
IN MAR DEL PLATA WE PROMISED TO MAKE A POLL ABOUT THE WAY ICANN MEETINGS ARE BEING DONE. WE COULDN'T DO THE POLL FOR THAT MEETING DUE TO SEVERAL REASONS. FIRST, WE APPROACHED GALLUP, AND THEIR RESPONSE WAS RELATIVELY SLOW BUT NOW WE HAVE THE RIGHT CONTACTS THERE AND WE WILL DO THE FOLLOW-UP.
AND SECOND ISSUE WAS THAT THERE IS A NEED TO CHANGE THE STRUCTURE OF THE MEETING, SO WE WANT TO MAKE SURE THAT GALLUP KNOWS ABOUT THAT.
THE COMMITTEE HAS HAD ALSO EXTENSIVE DISCUSSIONS ON THOSE ISSUES, AND WILL CONTINUE TO PUT EFFORTS -- AND WE'LL SPEND SOME MORE TIME DISCUSSING THEM BEFORE VANCOUVER.
WE ALSO DISCUSSED PARTICIPATION OF THE ATTENDEES WITH MORE EXPERIENCE? THE PLANNING OF THE FUTURE ICANN MEETINGS AND WE THINK IT WOULD BE A GOOD ADDITION TO THE ICANN COMMITTEE MEETINGS WORK.
AND THERE IS ONE ITEM ON THE AGENDA AND WHICH WE WILL BE WORKING IN THE NEXT MONTH. THERE SEEMS TO BE A CONFLICT OF DATES WITH THE IETF MEETING NEXT YEAR, 2006, IN -- FOR THE ANNUAL ICANN MEETING.
WE'RE TRYING TO FIX THAT PROBLEM WITH THE DATES, AND WE HOPE TO BE ABLE TO INFORM THE COMMUNITY BY END OF AUGUST ABOUT POSSIBLE CHANGES IN THE DATES OF THE ANNUAL 2006 MEETINGS.
THAT'S ALL.
>>VINT CERF: THANK YOU VERY MUCH, VENI.
BEFORE I ASK IF THERE ARE ANY QUESTIONS, LET ME ASK THOSE OF YOU WHO ARE IN THE ROOM, WE ARE PLANNING TO HAVE A KIND OF POLL. I HOPE THAT WE CAN WORK THIS OUT WITH GALLUP, TO GET FEEDBACK ABOUT THE MEETING STRUCTURE. BUT VENI, WOULD YOU BE WILLING TO ACCEPT E-MAIL FROM PEOPLE WHO HAVE IDEAS ABOUT CHANGES TO THE STRUCTURE RATHER THAN WAITING STRICTLY FOR THE GALLUP POLLS?
>>VENI MARKOVSKI: I THINK THAT WOULD BE PERFECTLY WELL. MY ONLY REQUEST IS TO SEND AN E-MAIL TO ME AND CARBON COPY DIANE SCHROEDER JUST IN CASE OF THE MANY ANTISPAM FILTERS AND SOME OF THE MESSAGES MAY GET LOST. AND IF YOU SEND A MESSAGE, I ALWAYS RESPOND TO MESSAGES, SO MAKE SURE YOU GET A RESPONSE. THAT MEANS I HAVE RECEIVED YOUR MESSAGE.
>>VINT CERF: BUT IT DOESN'T NECESSARILY MEAN YOU READ IT YET.
>>VENI MARKOVSKI: NO, I USUALLY READ MESSAGES BEFORE I RESPOND. SORRY.
>>VINT CERF: SO I THINK WE NEED TO FIND ANOTHER WAY OF CONVEYING THIS IDEA, GETTING RESPONSES TO YOU BECAUSE THERE'S A VERY SMALL NUMBER OF PEOPLE HERE RIGHT NOW, AND THERE WILL BE A BIGGER NUMBER LATER. SO ONE WAY OR ANOTHER, LET'S MAKE SURE THE BROADER COMMUNITY IS AWARE OF THAT.
MY BIG CONCERN, QUITE HONESTLY, IS THAT AS THE ICANN MEETINGS HAVE UNFOLDED, THERE HAVE BEEN AN INCREASING NUMBER OF MEETINGS BETWEEN BOARD AND SUPPORTING ORGANIZATIONS OR BOARD AND OTHER COMMITTEES, AND GAC AND SUPPORTING ORGANIZATIONS. AND AS AN OLD MATHEMATICIAN, I GET WORRIED ABOUT WHAT'S CALLED THE N-SQUARED PROBLEM WHERE YOU HAVE N DIFFERENT GROUPS, AND THEY ALL WANT TO INTERACT WITH EACH OTHER. AND IT'S EITHER N-SQUARED -- GROWS AS N-SQUARED OR WORSE, IT GROWS AS 2 TO THE "NTH."
SO I'M LOOKING FOR IDEAS THAT WILL HELP US BE MUCH MORE EFFICIENT ABOUT DISCUSSING TOPICS ACROSS MULTIPLE ORGANIZATIONS AND ACROSS THE BOARD.
SO THOSE ARE THE KINDS OF CONSIDERATIONS THAT I HOPE THAT YOU WILL BE ABLE TO CONTRIBUTE TO. THANK YOU, VENI.
ARE THERE ANY QUESTIONS OTHER THAN THAT FOR VENI?
ALL RIGHT. THEN LET'S MOVE ON.
THE NEXT REPORT COMES FROM THE CONFLICT-OF-INTEREST COMMITTEE, AND I'LL CALL UPON HAGEN HULTZSCH TO MAKE THAT PRESENTATION.
>>HAGEN HULTZSCH: OH, I HAVE THE FLOOR ALREADY. I WAS WAITING FOR THE CHAIRMAN BUT MAYBE I WAS NOT CAREFULLY LISTENING.
GOOD MORNING, EVERYBODY. FIRST OF ALL, I WOULD LIKE TO GIVE YOU THE NAMES OF THE MEMBERS OF THE COMMITTEE, THE BOARD COMMITTEE ON CONFLICTS OF INTEREST. IT'S MYSELF CHAIRING THE COMMITTEE, ALPHABETIC SEQUENCE, MIKE PALAGE, HUALIN QIAN, NJERI RIONGE, AND VANDA SCARTEZINI.
THE COMMITTEE FOR CONFLICTS OF INTEREST FOCUSES, AND ESPECIALLY THE CHAIRMAN IN HIS FUNCTION, ON THE POTENTIAL, LET'S SAY, CONFLICTS HAVING EFFECT ON THE ORGANIZATION. AND WE, MYSELF AND THE COMMITTEE, WERE CONTINUOUSLY INVOLVED IN THE RELEVANT DIALOGUE WITH THE FULL BOARD, AS WELL AS WITH LEGAL COUNSEL AND ALSO SOME INDIVIDUAL MEMBERS OF THE ORGANIZATION. THUS -- AND THAT'S THE CONSEQUENCE OF IT. THUS ENSURING THAT EITHER NO CONFLICT SITUATION WAS ARISING OR, IF SO, IT WAS PROPERLY MANAGED. AND THAT'S OUR TASK.
A FULL SET OF CONFLICT-OF-INTEREST STATEMENTS HAS BEEN ON FILE FOR THE BOARD MEMBERS AND THE PEOPLE WORKING ON THE BOARD, INCLUDING THE LIAISONS. AND THAT'S AN ISSUE WE WILL COME BACK LATER.
THE EVALUATION BY MYSELF, BY THE MEMBERS OF THE BOARD AND BY LEGAL COUNSEL WAS DONE, AND WE ALSO OBTAINED FROM THESE EVALUATIONS SUGGESTIONS FOR THE REVISION OF THE CURRENT CONFLICT-OF-INTEREST POLICY, WHICH WE WILL REPORT A LITTLE LATER.
THERE'S ALWAYS DETAILED DISCUSSION, BECAUSE THAT'S SO IMPORTANT FOR AN ORGANIZATION, IN THE COMMITTEE OF CONFLICTS OF INTEREST.
WE HAVE DISCOVERED NO MAJOR CONFLICT-OF-INTEREST SITUATION WITHIN THE BOARD. AND IF THERE WERE MINOR SITUATIONS, IT WAS PROPERLY MANAGED.
AS I SAID, THERE IS A CONTINUOUS DISCUSSION ON THE IMPROVEMENT OF THE REPORTING OF SUCH CONFLICTS, SHOULD THEY ARISE.
THE REVIEW OF THE CURRENT CONFLICTS OF INTEREST POLICY, WHICH WAS ADOPTED ON MARCH 4, 1999, PURSUANT TO ICANN BYLAWS AND THE ARTICLES, ET CETERA, ARE GIVEN HERE, IS UNDERWAY. RECENTLY THE GENERAL COUNSEL'S OFFICE CONDUCTED A REVIEW OF THE SUFFICIENCY OF THE CURRENT POLICY AND SUGGESTED CHANGES TO THE COMMITTEE TO ENHANCE THE POLICY AND BROADEN THE SCOPE OF THIS POLICY.
THIS WEEK, THE COMMITTEE DISCUSSED THE SUGGESTED REVISIONS AND MADE ADDITIONAL SUGGESTIONS FOR CHANGES TO THE POLICY.
AND THEY ARE, IT'S ADDING LANGUAGE TO REQUIRE DISCLOSURE OF "PERSONAL CONFLICTS" WHICH MAY BE DEFINED AS GIVEN HERE. "PERSONAL INTEREST" SHALL MEAN ANY ARRANGEMENT, UNDERSTANDING, OR PROFESSIONAL RELATIONSHIP WHEREBY A PERSON SHALL HAVE A MATERIAL INTEREST IN ANY PARTICULAR ACTION, CONTRACT, RELATIONSHIP, OR OTHER MATTER BEING CONSIDERED BY THE CORPORATION.
WE ALSO SAY THAT THESE CONTRACTS SHOULD EXTEND TO EXPECTATIONS OF FUTURE FINANCIAL BENEFITS, AS WELL AS SUCH COMPENSATION.
WE ALSO SAY THAT BOARD LIAISONS HAVE -- SHOULD PROVIDE A CONFLICT-OF-INTEREST STATEMENT AS WELL. CURRENTLY, ALL LIAISONS HAVE PROVIDED THIS CONFLICT-OF-INTEREST STATEMENT VOLUNTARILY.
WE ALSO SUGGEST THAT REASONS FOR ANY ABSTENTION DURING VOTES SHOULD BE CAPTURED IN THE MINUTES, AND THAT IS ALREADY DONE.
NEXT, PLEASE.
THE COMMITTEE ON CONFLICTS OF INTEREST WILL PROPOSE FORMALLY TO THE BOARD THAT THE PROPOSED CHANGES TO THE CONFLICTS POLICY SHOULD BE POSTED FOR PUBLIC COMMENT FOR A PERIOD OF NO LESS THAN 21 DAYS. AND I ASSUME THAT WILL BE DONE TOMORROW.
AND ALSO, ANOTHER SUGGESTION, AFTER CONSIDERING COMMENTS TO THE PROPOSED CHANGES AND MAKING ANY REVISIONS, THE CONFLICTS POLICY WILL BE FORWARDED TO THE FULL BOARD FOR ADOPTION TOMORROW.
NEXT, PLEASE.
THERE ARE SOME CONCLUSIONS OF THE MEETING EARLIER THIS WEEK HERE IN LUXEMBOURG. THE CONFLICT POLICIES CONTINUE TO BE CLOSELY FOLLOWED BY THE COMMITTEE. THAT'S OUR NATURAL TASK. THE EXISTING CONFLICTS POLICY CAN BE ENHANCED, AND STEPS WILL BE TAKEN TO SEEK PUBLIC COMMENTS AND MAKE CHANGES TO THE POLICY, 21-DAY PERIOD, AND THERE'S ANOTHER SUGGESTION. THE COMMITTEE WOULD LIKE TO ENCOURAGE ICANN'S SUPPORTING ORGANIZATIONS TO REVIEW THEIR OWN CONFLICTS POLICIES SO THAT ALL CONFLICTS WILL BE IDENTIFIED AND DISCLOSED.
THAT'S IT.
>>VINT CERF: THANK YOU VERY MUCH, HAGEN. I THINK THAT IT MIGHT BE USEFUL, EVEN IF YOU CAN'T DO IT RIGHT THIS MOMENT, TO PRODUCE SOME EXAMPLES OF PERSONAL CONFLICT AS OPPOSED TO THE PREVIOUS SORT OF MATERIAL FINANCIAL CONFLICT, JUST SO PEOPLE HAVE AN IDEA OF WHAT THOSE MIGHT LOOK LIKE.
IF THERE ARE NEW KINDS OF CONFLICTS TO BE CONCERNED ABOUT, WE EACH OF US ON THE BOARD, AND THE LIAISONS, NEED TO BE AWARE OF WHAT THEY MIGHT BE.
SO MAYBE TOGETHER WITH COUNSEL YOU COULD OFFER SOME EXAMPLES.
AND I THINK WE WOULD WANT TO MAKE THOSE EXAMPLES VISIBLE TO THE REST OF OUR COMMUNITY SO EVERYONE UNDERSTANDS WHAT WE UNDERSTAND TO BE A CONFLICT. I SEE SEVERAL QUESTIONS, ONE FROM PETER, ONE FROM MOUHAMET. ANYONE ELSE? AND THE FLOOR IS WELCOME TO ASK QUESTIONS ON THIS MATTER AS WELL. PETER.
>>PETER DENGATE THRUSH: THANK YOU, MR. CHAIRMAN. I WANT TO BEGIN BY COMMENDING THE WORK OF THE CONFLICTS COMMITTEE. IT MAY SEEM, PERHAPS, TO NON-LAWYERS, AN ARCANE AND MYSTERIOUS AND EVEN UNNECESSARY ACTIVITY, BUT LET ME ASSURE YOU IT'S VERY IMPORTANT TO ENSURING TRUST IN THE BOARD AND THE BOARD'S PROCESSES.
JUST A QUESTION. WOULD IT BE POSSIBLE FOR THE COMMITTEE TO LOOK AT THE SITUATION THAT HAS ARISEN IN DISCUSSION ON THE BOARD LIST IN TERMS OF PEOPLE WHO ARE CONFLICTED FROM VOTING ON AN ISSUE WHETHER OR NOT THEY SHOULDN'T BE ALSO CONFLICTED FROM SPEAKING ON AN ISSUE? THIS IS OFTEN EXPRESSED NOT WITH ANY PERSONAL POINT BUT BY WAY OF EXAMPLE, TAKE THE CHAIR WHO IS OFTEN A VERY INFLUENTIAL PERSON IN TERMS OF RUNNING THE MEETING AND OPENING AND CLOSING OF DISCUSSION. IF THAT SORT OF PERSON IS UNABLE TO VOTE, THEY CAN NEVERTHELESS EXERCISE A LOT OF INFLUENCE ON OTHER MEMBERS, AND WOULD YOU -- HAVE YOU GOT A VIEW ON THAT? HAS THE COMMITTEE LOOKED AT THAT, AND IF THEY HAVEN'T, PERHAPS YOU COULD.
>>HAGEN HULTZSCH: WOULD YOU LIKE ME TO COMMENT ON THIS?
>>VINT CERF: YES.
>>HAGEN HULTZSCH: ACTUALLY, THIS IS A, LET'S SAY, POTENTIAL CONCERN AND WORTHY OF CONSIDERATION. IN THE BOARD, AS IN SOME CASES YOU KNOW, SINCE THE POTENTIAL CONFLICT WAS COMMUNICATED BEFOREHAND, THAT'S WHY I SAID EARLIER IN MY STATEMENT IT WAS PROPERLY MANAGED. AND WE ALSO REALIZED THAT IF THERE WOULD BE SUCH CONFLICTS, WE FOUND A WAY THAT THE CONTRIBUTION TO THE DIALOGUE WAS A KIND OF WEAKER THAN OTHERWISE IN THE NORMAL SITUATION IT WOULD BE, THAT THE INDIVIDUALS MADE IT CLEAR THAT THEY POTENTIALLY HAD CONFLICTS IN THIS SITUATION.
AND IN THIS CASE, IN SUCH SITUATION, I THINK WE SHOULD NOT DISALLOW PEOPLE TO SPEAK UP, BUT WE SHOULD KNOW BEFOREHAND THAT THEY HAVE A CERTAIN CONFLICT OF INTEREST.
THIS IS ONE OF THE THINGS WHICH THIS ORGANIZATION IS RATHER SPECIAL. EVERYBODY HERE, MYSELF INCLUDED, YOURSELF INCLUDED, HAS A CONFLICT OF INTEREST BECAUSE WE WANT TO PROMOTE INTERNET. THAT'S -- SOME OF US EVEN MAKE THEIR BUSINESS OUT OF IT.
I, FOR EXAMPLE, GET PAID MY RETIREMENT PENSION FROM A COMPANY WHO ALSO MAKES MONEY OUT OF THE INTERNET.
THE STATE OF MALAYSIA BENEFITS FROM THE INTERNET, AND IN THAT SENSE, WE COULD -- WE COULD SAY THIS IS A CONFLICT, BUT I THINK THIS IS THE LIFE OF THIS ORGANIZATION.
BUT WE SHOULD KNOW ABOUT PERSONAL CONFLICTS.
FOR EXAMPLE, IF WE HAVE A MOTION TO TAKE AND MYSELF OR SOMEBODY ELSE WOULD PERSONALLY BENEFIT FROM IT, THEN IT'S NATURAL, AND THAT'S DONE BY THE CONFLICT-OF-INTEREST STATEMENT, THAT I MUST ABSTAIN AND MY COLLEAGUES MUST KNOW BEFOREHAND MY PERSONAL INTEREST ON IT. AND I TAKE MYSELF AS AN EXAMPLE, BUT THAT APPLIES POTENTIALLY TO EVERYBODY OF US, AND ESPECIALLY THOSE WHO MAKE THEIR BUSINESS OUT OF THE THINGS WE DECIDE HERE.

>>VINT CERF: THANK YOU, HAGEN. IS THERE ANY POSSIBILITY I COULD GET DEUTSCHE TELEKOM TO PAY MY RETIREMENT, TOO?
(LAUGHTER.)
>>HAGEN HULTZSCH: THAT IS DISPUTABLE. YOU JUST GO FOR A CONTRACT LIKE I DID TEN OR 12 YEARS AGO, AND THAT PART OF THE CONTRACT WAS THEY PAY ME GOOD RETIREMENT.
>>VINT CERF: LET ME -- MOUHAMET, YOU HAD YOUR HAND UP AND THEN I'LL TAKE A COMMENT FROM THE FLOOR.
MOUHAMET.
>>MOUHAMET DIOP: THANK YOU, VINT. I THINK THAT PART OF THE COMMENT I WANT TO MAKE HAVE BEEN INITIATED BY HAGEN. LIKE WE ARE A VERY SPECIALIZED ORGANIZATION, IN WHICH IT'S VERY HARD TO SAY ANYBODY DIDN'T HAVE SOME TYPE OF CONFLICT OF INTEREST.
IF YOU TAKE, FOR EXAMPLE, THE CASE OF THE REGULATORY BODY IN THE TELECOMMUNICATION, IF THEY WANT TO HAVE A BOARD LIKE US OR A BOARD OF TRUSTEES, YOU HAVE TO SIGN A CONTRACT THAT YOU HAVE NO SHARE OR NO COMPANY DEALING WITH THE TELECOMMUNICATION FOR THE TIME YOU'RE ON BOARD. AND SOMETIME FOR MORE THAN FIVE YEARS AFTER YOU STEP DOWN FROM THE BOARD.
JUST TO LET YOU KNOW THAT, I MEAN, THE -- I WANT US TO BE REALLY CONSCIOUS ABOUT THE PRECAUTION WE WANT TO TAKE FOR FUTURE POTENTIAL CONFLICT OF INTEREST. WE'RE MOVING THE BATON SO FAR BECAUSE I DON'T THINK THAT HERE, IF WE -- IF WE SAW THE WAY THAT ICANN IS CONSTITUTED, I THINK IT'S ONLY THE NONCOM MEMBERS THAT CAN BE CONSIDERED MAYBE IN SOME CASE NOT BE DIRECTLY RELATED TO THE BUSINESS, BECAUSE PEOPLE WHO ARE FROM THE SUPPORTING ORGANIZATION, INDEED, THEY ARE HERE BECAUSE THEY GOT THEIR BUSINESS RUNNING AND THEY HAVE DIRECT INTEREST IN IT.
SO GETTING A DIRECT INTEREST IN A BUSINESS MEAN A CONFLICT OF INTEREST. IN SOME CASES, YOU HAVE TO MAKE A DECISION ABOUT THE EVOLUTION OF THINGS.
SO WE HAVE TO BE NOT SO STRONG ABOUT THE STATEMENT ON THE CONFLICT OF INTEREST BECAUSE BASED ON THE NATURE OF THIS ORGANIZATION, TALKING ABOUT CONFLICT OF INTEREST MAY GIVE SOME CONFUSION IF YOU JUST MAKE IT SO STRONG, BECAUSE IT'S THE NATURE OF THE BOARD AND IT'S THE NATURE OF THE BUSINESS. SO ASKING ALSO THE SUPPORTING ORGANIZATION TO MAKE A STATEMENT ON THE CONFLICT OF INTEREST BASED ON THE WAY THEY ARE STRUCTURED IS ALSO, FOR ME, MOVING SO FAR IN THE PROCESS WHERE WE KNOW THAT EVERYBODY IN THE SUPPORTING ORGANIZATION HAVE A STRONG INTEREST OF PRESERVING, AND THEY HAVE A CORPORATION IDEA ON HOW TO PRESERVE. I MEAN, IT'S GOING TO BE THE CASE FOR THE GNSO, IT'S GOING TO BE THE CASE FOR THE CCNSO, IT'S GOING TO BE THE CASE FOR THE REGISTRY.
I MEAN, I THINK THAT WE NEED TO BE REALLY CAREFUL FOR ASKING TOO MUCH ABOUT THE CONFLICT OF INTEREST. AND WHAT IS IMPORTANT, AND I THINK THAT THAT'S WHAT WE ASK OF ALL THE BOARD MEMBERS, IS THAT WHENEVER WE TAKE A DECISION, WE KNOW IT'S GOING TO BE FOR THE WHOLE INTEREST OF THE WHOLE INTERNET COMMUNITY. BUT IN SOME WAY OR ANOTHER, I MEAN, WE WILL HAVE A CONFLICT OF INTEREST IN THE DECISION WE ARE TAKING.
SO WHAT IS IMPORTANT IS TO TRY TO DEFINE A LEVEL OF -- JUST LIKE MINOR CONFLICT OF INTEREST OR CRITICAL CONFLICT OF INTEREST, IF YOU ARE INVOLVED IN A CONTRACT AND AS A BOARD MEMBER, FOR EXAMPLE, YOU HAVE TO SIGN FOR THAT CONTRACT TO BE GIVEN DIRECTLY TO THE COMPANY YOU ARE WORKING WITH. THIS IS THE NATURE OF CONFLICT OF INTEREST WE CAN STRONGLY TRYING TO SAY THAT, OKAY, IN THAT CASE, YOU MIGHT BE -- THE BOARD CAN DECIDE, FOR EXAMPLE, THAT NO BOARD MEMBERS CAN VOTE ON SOME CONTRACT IN WHICH YOU ARE DIRECTLY INVOLVED.
BUT IN SOME WAY OR ANOTHER, I MEAN, THEM HAVE INDIRECT IMPACT ON THE DECISION WE'RE GOING TO TAKE, BECAUSE, I MEAN, THAT WAS MY STATEMENT ON THAT.
SO ON THE TEXT OF THE DOCUMENT, I REALLY WANT TO KNOW, HAGEN, IF YOU TALK ABOUT FUTURE POTENTIAL CONFLICT OF INTEREST, ARE WE GOING TO FIX A DATE FOR IT OR IS IT -- BECAUSE, I MEAN, ANYBODY HERE WHO STEP DOWN FROM HIS POSITION OF BOARD, I MEAN, I'M NOT SAYING ANYTHING PREVENTING HIM FROM STARTING A NEW BUSINESS SOMEWHERE ELSE, AND IF YOU'RE TALKING ABOUT FUTURE BOARD CONFLICT OF INTEREST, IT'S LIKE WE ANTICIPATE SOMETHING TO PREVENT SOMEBODY FROM STEPPING DOWN FROM HIS POSITION AS A BOARD, AND THEN ASK HIMSELF CAN HE DO SOMETHING WITH A CONTRACTOR OR NOT? WE SHOULD DECIDE IF THERE IS A DURATION FOR FUTURE POTENTIAL CONFLICT OF INTEREST OR NOT, BECAUSE WE HAVE BEEN VERY CLEAR ON THAT.
>>VINT CERF: HANG ON, MICHAEL, I WANT TO TAKE A QUESTION FROM THE FLOOR FIRST.
GO AHEAD.
>>THOMAS ROESSLER: GOOD MORNING. THOMAS ROESSLER. I WOULD LIKE TO COME BACK TO THE DISCUSSION ABOUT CONTRIBUTIONS OF CONFLICTED BOARD MEMBERS TO DISCUSSIONS ON THE BOARD.
PART OF THE PURPOSE OF HAVING A CONFLICT-OF-INTEREST POLICY IS NOT JUST AVOIDING CONFLICTS OF INTEREST, BUT AVOIDING ANY PERCEPTION OF CONFLICTS OF INTEREST, EVEN IF THESE CONFLICTS MAY NOT BE THERE.
WHEN I LOOK AT THE DISCUSSION THAT YOU JUST HAD, THE ARGUMENT BOILED DOWN TO WE DISCLOSE THE CONFLICT BEFORE, SO INSIDE THE BOARD, WE SEE -- WE KNOW HOW TO DEAL WITH CONTRIBUTIONS FROM CONFLICTED MEMBERS AND WE KNOW HOW TO WEIGH THEM.
THE PUBLIC DOES NOT GET TO SEE DETAILED MINUTES OF MOST OF THE BOARD'S MEETING. THE PUBLIC IS NOT ABLE TO MAKE THAT ASSESSMENT.
I THINK THERE IS A RELATIONSHIP HERE BETWEEN A CONFLICT-OF-INTEREST POLICY WORKING TO AVOID CONFLICT, WORKING TO AVOID THE PERCEPTION OF CONFLICTS, AND THE AMOUNT OF TRANSPARENCY THAT THE BOARD CAN PROVIDE.
I THINK WITH THE KIND OF CONFLICT-OF-INTEREST POLICY YOU SEEM TO BE GOING FOR, THERE IS AN URGENT NEED FOR MUCH MORE DETAILED MINUTES AND FOR A WAY FOR THE COMMUNITY TO ACTUALLY SEE HOW THESE DISCUSSIONS PLAY OUT.
I'M NOT SAYING THAT THE DISCUSSIONS AREN'T PLAYING OUT PROPERLY. I'M SAYING YOU DON'T WANT A PERCEPTION THAT THEY AREN'T PLAYING OUT PROPERLY. YOU REALLY WANT TO HAVE THE TRANSPARENCY IN THERE IF YOU GO FOR THIS KIND OF CONFLICT-OF-INTEREST POLICY.
>>VINT CERF: THANK YOU, THOMAS. LET ME GET MICHAEL AND THEN MARILYN.
>>MICHAEL PALAGE: I FULLY AGREE WITH THOMAS, AND THOMAS, ONE OF THE THINGS I'M TRYING TO DO, BECAUSE I'M ONE OF THE DIRECTORS, BECAUSE OF MY VARIOUS TIES TO THE COMMUNITY, TRYING TO PUT MY STATEMENTS IN WRITING WHICH NOT ONLY I -- IT'S MY INTENT IN THE FUTURE TO TAKE THOSE STATEMENTS, NOT ONLY SHARE THEM WITH THE BOARD, SHARE THEM WITH THE COMMUNITY IN THAT EFFORT OF OPENNESS AND TRANSPARENCY.
I'D ALSO LIKE TO AGREE WITH THE COMMENTS THAT MOUHAMET RAISED. ONE OF THE DISCUSSIONS THAT I HAD RAISED DURING THE CONFLICTS COMMITTEE EARLIER THIS WEEK WAS THE IDEA OF HAVING SOME TYPE OF FIXED TIME FRAME WHERE ONE WOULD AGREE NOT TO ENGAGE IN FUTURE CONTRACTUAL RELATIONSHIPS WITH AN IMPACTED PARTY FOR SOME SET PERIOD OF TIME. AND THE REASON THAT I HAD ADVOCATED A FIXED, SET PERIOD OF TIME IS IT PROVIDED A CLEAR BENCHMARK.
AGAIN, IT'S -- SOME OF THESE DECISIONS OF SUBJECT -- IT'S A VERY SUBJECTIVE DETERMINATION. DID YOU INTEND TO HAVE FUTURE CONTRACTUAL RELATIONSHIPS? YOU KNOW, SO I THINK THE IDEA OF HAVING A FIXED WINDOW, IF YOU WILL, PROVIDES CLARITY. AND I THINK ONE OF THE THINGS THIS ORGANIZATION WOULD BENEFIT AND WHICH I THINK THE COMMUNITY WOULD HAVE INTEGRITY IS KNOWING THAT THERE WERE CLEAR GUIDELINES THAT WE WERE FOLLOWING.
SO AGAIN, I WOULD LIKE TO SUPPORT THE COMMENTS THAT THOMAS HAD MADE. I AGREE WITH THEM WHOLLY, AS WELL AS THE COMMENT RAISED BY MOUHAMET.
>>VINT CERF: THANK YOU, MICHAEL.
LET ME ASK MARILYN, AND THEN I THINK I SAW SHARIL.
>>MARILYN CADE: CAN I JUST ASK A CLARIFYING QUESTION? ARE YOU GOING TO TAKE COMMENTS ON THE EARLIER REPORTS LATER?
>>VINT CERF: YES, I WILL.
>>MARILYN CADE: SO MY COMMENTS RIGHT NOW ARE SPECIFICALLY ABOUT THE CONFLICT-OF-INTEREST WORK.
I DON'T SEE THE CHAIR OF THE GNSO HERE, BUT I WOULD URGE THAT SINCE WE'RE NOW IN THE DRAFT STAGE THAT WE HAVE SOME INTERACTION WITH THE SOS ABOUT -- NOT THE QUESTION OF WHETHER OR NOT WE DO EXAMINE CONFLICTS OF INTEREST, BECAUSE WE DO, BUT REALLY WHAT WORKS IN THE DIFFERENT ENTITIES, AS WELL AS THE ALAC.
I WOULD SUPPORT, I THINK, AND ASSOCIATE MYSELF, AT LEAST TO THE EXTENT THAT I -- WITH MOUHAMET'S STATEMENTS. AND I WANT TO ALSO SAY THAT I THINK IT'S VERY IMPORTANT FOR ALL OF US IN THE COMMUNITY TO REMEMBER HOW UNIQUE ICANN REALLY IS. AND THAT ON THE BOARD, EACH OF YOU HAVE UNIQUE UNDERSTANDINGS. IN YOUR DELIBERATIONS, I THINK IT IS IMPORTANT THAT YOU BE ABLE TO SPEAK, EVEN IF YOU'RE NOT ABLE TO VOTE. AND IF, IN FACT, YOU THINK THAT THE POWER OF A PARTICULAR ROLE, SUCH AS CHAIRING A POSITION, CREATES TOO MUCH INFLUENCE, THEN OBVIOUSLY YOU DO WHAT YOU HAVE DONE BEFORE AND THAT IS PASS THE CHAIR FOR THAT PARTICULAR FUNCTION.
BUT I JUST WANT TO NOTE THAT WE HAVE TO, I THINK, BE VERY SENSITIVE ABOUT THE FOCUS BEING ON DISCLOSURE AND RECOGNITION OF CONFLICTS AND NOT TRY TO DRIVE ALL CONFLICTS OUT OF THE SYSTEM OR ICANN WILL BE EVEN MORE FRAGILE.
THE CONFLICT IS REALLY ABOUT US; RIGHT?
I WANT TO JUST ASK VINT IF WE COULD, BEFORE THINGS BECOME FINAL, HAVE A DIALOGUE BETWEEN PERHAPS THE CHAIRS OF THE SOS ON THE CONFLICT-OF-INTEREST APPLICABILITY.
>>VINT CERF: ABSOLUTELY.
AND I THINK WE CERTAINLY WOULD POST WHATEVER CHANGES ARE PROPOSED SO THAT THERE COULD BE SOME COMMENT ON THAT.
LET ME JUST MAKE ONE OBSERVATION ABOUT ANOTHER ORGANIZATION THAT FACES SIMILAR KINDS OF CHALLENGES.
THE NATIONAL RESEARCH COUNCIL IN THE U.S. OFTEN PRODUCES REPORTS ABOUT HIGHLY CONTROVERSIAL TECHNICAL MATTERS.
AND WHEN THEY FORMULATE THE COMMITTEES TO PREPARE THE REPORTS, THEY ASK EVERY MEMBER TO PROVIDE A WRITTEN STATEMENT ABOUT POTENTIAL CONFLICTS OF INTEREST.
THAT STATEMENT GOES TO ALL THE MEMBERS OF THE COMMITTEE.
SO THEY DON'T TRY TO SUPPRESS PEOPLE FROM BEING ON THE COMMITTEE.
THEY JUST WANT TO MAKE SURE THAT THE BIASES AND POTENTIAL CONFLICTS ARE KNOWN TO ALL THE PARTIES.
AND SO THAT IN THE COURSE OF REACHING CONCLUSIONS, IT'S UNDERSTOOD THAT SOME PEOPLE'S POSITIONS MAY BE INFLUENCED BY THEIR PAST HISTORY OR CURRENT SITUATIONS.
AS I LOOK FORWARD TO FINDING A PATH FORWARD ON THIS, WE CAN'T DO IT AT THIS VERY MOMENT, BUT I WANT TO MAKE SURE THE COMMUNITY FEELS THAT THEY ARE ENGAGED AS WELL AS THE REST OF THE BOARD.
SHARIL IS NEXT, AND THEN MICHAEL, AND RAIMUNDO AND THAT'S IT.
SHARIL.
>>SHARIL TARMIZI: THANK YOU, MR. CHAIRMAN.
I JUST WANTED TO SHARE SOME PERSPECTIVES PUBLICLY.
I WORK FOR A REGULATORY AGENCY BACK HOME.
WE LICENSE PEOPLE.
WE ARE ALWAYS IN CONFLICT SITUATIONS WHERE YOU DON'T EVEN KNOW WHETHER YOU CAN HAVE A CUP OF COFFEE WITH THIS PARTICULAR PERSON BECAUSE YOUR ORGANIZATION HAS GIVEN A LICENSE TO THIS PARTICULAR PERSON.
SO I UNDERSTAND FULLY WELL WHAT THE COMMUNITY IS LOOKING AT, AND I AM VERY SUPPORTIVE OF HAVING A FULL DECLARATION OF POTENTIAL CONFLICT.
BUT I THINK IN ENSURING THAT THE ORGANIZATION IS ABLE TO MOVE AND NOT PARALYZED BY WHAT I WILL CALL BUREAUCRACY, COMING FROM A GOVERNMENT PERSON, THERE NEEDS TO BE A BALANCE.
AND I THINK EVERYONE ON THE BOARD HERE IS AWARE THAT THEIR DUTIES IN RELATION TO THEIR FUNCTIONS ON THE BOARD IS A FIDUCIARY ONE.
AND I THINK SOME DEGREE OF BALANCE NEEDS TO BE KEPT IN ORDER FOR THE ORGANIZATION TO FUNCTION.
THANK YOU.
>>VINT CERF: I THINK MANY WOULD AGREE WITH YOU.
MICHAEL.
>>MICHAEL PALAGE: I JUST WANTED TO FOLLOW UP ON MARILYN CADE'S COMMENTS.
AND, MARILYN, THE COMMITTEE DID DISCUSS THE UNIQUE NATURE OF THE SUPPORTING ORGANIZATIONS, PARTICULARLY THE GNSO, WHICH HAS THE USERS, PROVIDERS, REGISTRARS, REGISTRIES.
WE ACKNOWLEDGE THE UNIQUE DYNAMICS OF THAT PARTICULAR CONSTITUENCY.
AND ONE OF THE THINGS THAT WE WERE TALKING ABOUT WAS TRYING TO REACH OUT, AGAIN, MAKE THE STATEMENT THAT IT IS IMPORTANT, AND SEE HOW THE, IF WILL YOU, THE SUPPORTING ORGANIZATIONS MIGHT BE ABLE TO HANDLE THAT, COME UP WITH SOME PROPOSALS.
SO, AGAIN, I JUST THINK THAT'S IMPORTANT TO ACKNOWLEDGE THAT THE CONCERNS WERE ADDRESSED BY THE CONFLICTS COMMITTEE.
>>VINT CERF: RAIMUNDO.
>>RAIMUNDO BECA: THANK YOU, VINT.
I WAS DURING THE LAST PART OF LAST YEAR A MEMBER OF THE AUDIT COMMITTEE.
AND AT THAT MOMENT, I HAD THE OPPORTUNITY TO GO THROUGH THE STATEMENTS OF POTENTIAL CONFLICT OF INTEREST WHICH EVERY MEMBER OF THE BOARD HAS TO STATE.
AND I WAS SURPRISED THAT THEY HAVE MADE SO DIFFERENT.
YOU HAVE SOME VERY DETAILED CONFLICTS OF INTEREST.
AND YOU HAVE OTHERS THAT SAY, "TO MY KNOWLEDGE, I HAVE NO CONFLICT OF INTEREST."
I THINK THE -- THERE SHOULD BE A TEMPLATE, A TEMPLATE FOR THE STATEMENT.
AND THE TEMPLATE WOULD INDICATE ALL THE POTENTIAL CONFLICTS OF INTEREST AND NOT THE PARTICULAR WHICH APPEAR FOR A PARTICULAR ISSUE.
AND THOSE TEMPLATES SHOULD BE MADE AVAILABLE TO THE PUBLIC.
THE PUBLIC SHOULD KNOW WHERE THERE IS A POTENTIAL CONFLICT OF INTEREST.
NOT SAYING, FOR EXAMPLE, WELL, THIS GUY -- WHICH COULD BE MY CASE -- HE HAS A BUSINESS WITH ALL THESE CUSTOMERS.
I DON'T HAVE TO DECLARE ALL MY CUSTOMERS.
BUT I THINK THAT THE PUBLIC SHOULD KNOW THAT I AM THE MARKET AND I AM COUNSELING SOME COMPANIES, AND SO THERE COULD BE A POTENTIAL CONFLICT OF INTEREST.
I THINK THAT IT'S A GOOD IDEA THAT THE COMMITTEE SHOULD BE AWARE OF THAT AND TAKE SOME MEASURES ABOUT IT.
>>VINT CERF: I WAS HOPING THAT WOULD BE THE LAST COMMENT, BUT I SEE JOI HAS HIS HAND UP.
COULD WE MAKE THIS SHORT?
>>JOICHI ITO: I'LL JUST ADD A PERSPECTIVE AS A NON-COM PERSON WHO RARELY HAS A CONFLICT OF INTEREST.
THE ONE THING THAT I FEAR, THOUGH, IS THAT CONFLICT OF INTEREST SHOULD BE TO NOT USE YOUR BOARD POSITION TO UNFAIRLY GAIN SOME ADVANTAGE.
BUT IF YOU HAVE DISCLOSED IT, ON THE OTHER HAND, I WOULD RATHER HEAR THE OPINION OF THE PEOPLE FROM THE SOS.
SO ONE OF THE PROBLEMS I'VE HAD IN THE PROCESS IS THAT THE PEOPLE WHO KNOW THE MOST DON'T SAY ANYTHING.
AND FOR ME, I'D RATHER HAVE THEM SAY IT, BUT THEN I'LL CALCULATE IN MY OWN CONFLICT-OF-INTEREST PARAMETER.
NOW, FROM THE OUTSIDE, IT MAY NOT LOOK RIGHT, BUT FOR ME, THAT WOULD BE HELPFUL.
AND THEN I WOULD ALSO SUGGEST, LOOKING FORWARD -- AND AGAIN, I'M TOOTING MY OWN HORN -- BUT I THINK THE INDEPENDENT NON-COM MEMBERS ARE, I THINK, INCREASING THE NUMBER AND MAKING SOS -- BECAUSE I THINK AS LONG AS THE SOS HAVE A VOICE, IT'S A LITTLE BIT DIFFERENT THAN A VOTE.
AND WE'RE NOT A DEMOCRACY, AS SOMEBODY MENTIONED YESTERDAY.
WE'RE TRYING TO CREATE A CONSENSUS PROCESS.
AND SO I THINK THE OTHER THING THAT WE NEED TO BE CLEAR ABOUT IS THE DISCUSSION CONSENSUS PROCESS VERSUS THE BOARD VOTING PROCESS.
WE MIGHT WANT TO LOOK AT THIS AT THE BOARD GOVERNANCE COMMITTEE LEVEL.
>>VINT CERF: AS LONG AS WE'RE ABLE TO MAKE PROGRESS.
OKAY.
THANK YOU.
WERE YOU WAITING TO MAKE A COMMENT ON CONFLICT OF INTEREST?
ALL RIGHT.
>> ANNETTE MUEHLBERG: ANNETTE MUEHLBERG, MEMBER OF THE ALAC, THE NEW EUROPEAN MEMBER.
>> CLOSER TO THE MICROPHONE.
>> ANNETTE MUEHLBERG: ANNETTE MUEHLBERG, THE NEW EUROPEAN ALAC MEMBER.
I THINK THE PUBLICATION IS VERY HELPFUL FOR TRANSPARENCY.
BUT, OF COURSE, YOU HAVE TO TELL WHICH COMPANIES YOU CONSULT, FOR EXAMPLE. IT DOESN'T MAKE SENSE TO JUST SAY, "I AM CONSULTING SOME COMPANIES."
THE ONLY TRANSPARENCY HELPS WHERE YOU REALLY NAME IT.
BECAUSE THEN IT'S CLEAR WHERE THERE MIGHT BE A CONFLICT OF INTEREST.
WE HAVE THIS DEBATE IN GERMANY RIGHT NOW, BECAUSE THERE'S A LOT GOING ON.
AND I JUST HAVE TO -- OUR COLLEAGUE FROM THE GAC -- I MEAN, WE HAVE VERY STRICT RULES ON GOVERNMENT PEOPLE, AND NOT JUST GOVERNMENT PEOPLE, BUT JUST ANYONE IN THE ADMINISTRATION IS NOT ALLOWED TO REALLY HAVE A DINNER WITH SOMEONE ELSE.
YOU DON'T EVEN GET A BOTTLE OF BRANDY.
IT'S JUST ALL NOT ALLOWED.
YOU KNOW, EVEN, YOU KNOW, IF IT'S JUST A NICE GESTURE, YOU'RE JUST NOT ALLOWED TO RECEIVE THAT.
AND THERE IS -- IT'S -- IT'S EXTREMELY STRICT, BUT THERE IS A GOOD IDEA BEHIND IT.
SO IF YOU ARE NOT -- IF YOU STILL SAY, OKAY, IT MIGHT BE ALLOWED, BUT THEN AT LEAST YOU REALLY HAVE TO SHOW WHERE YOU'RE INVOLVED IN, YOU KNOW, AND NAME IT, NOT JUST A GENERAL SAYING, "I DO THAT."
WE EXPECT YOU ALL TO DO IT.
BUT WE WANT TO KNOW WHERE YOU ARE INVOLVED AT.
THANKS.
>>VINT CERF: THANK YOU VERY MUCH.
LET'S MOVE ON, ALTHOUGH I THINK THAT DISCUSSION WAS HELPFUL, AND I'M SURE, HAGEN, YOU'LL TAKE THAT INTO ACCOUNT AS YOU WORK YOUR WAY THROUGH THESE NEW GUIDELINES.
THE NEXT REPORT IS THE RECONSIDERATION COMMITTEE, WHICH THOMAS NILES CHAIRS.
SO I'LL ASK THOMAS TO MAKE THAT REPORT.
>>THOMAS NILES: THANK YOU, MR. CHAIRMAN.
THE COMMITTEE MET ON JULY 12.
MEMBERS PRESENT IN ADDITION TO MYSELF WERE RAIMUNDO BECA, MOUHAMET DIOP, JOICHI ITO, AND VENI MARKOVSKI.
WE HAD ONE REQUEST ON OUR AGENDA, RECONSIDERATION REQUEST, 05-1, FILED BY MR. FAUCET, CONCERNING THE LATE POSTING OF BOARD DECISIONS.
THE SPECIFIC COMPLAINT OR QUESTION INVOLVED THE PRELIMINARY REPORT OF BOARD ACTIONS FROM THE MAY 3, 2005 MEETING, WHICH WERE POSTED SEVERAL DAYS LATER THAN THE FIVE BUSINESS DAYS AS SPECIFIED IN THE BYLAWS.
THE COMMITTEE EXAMINED THE REQUEST AND DETERMINED THAT THERE WERE EXTENUATING CIRCUMSTANCES IN THIS CASE.
AND THAT ANY PRACTICAL EFFECT OF THE DELAY WAS ADDRESSED BY THE EXTENSION OF AN AFFECTED PUBLIC COMMENT PERIOD.
THERE WAS A RELATED PROPOSAL PUT FORWARD WITH THE REQUEST TO THE RECONSIDERATION COMMITTEE DESIGNED TO INCREASE TRANSPARENCY OF BOARD MEETINGS.
IN ORDER TO FACILITATE PROMPT POSTING AND INCREASE TRANSPARENCY, THE RECONSIDERATION COMMITTEE UNANIMOUSLY RECOMMENDS THAT THE FULL BOARD CONSIDER USING REAL-TIME SCRIBES TO RECORD ALL BOARD MEETINGS, INCLUDING THOSE SPECIAL MEETINGS HELD BY TELECONFERENCE.
THE PUBLIC COULD THEN REVIEW TRANSCRIPTS OF ALL VOTING AND BOARD MEMBERS' STATEMENTS IN CONNECTION WITH VOTES, CONSISTENT WITH PROCEDURES TO PROTECT CONFIDENTIAL OR PRIVILEGED INFORMATION.
THANK YOU VERY MUCH, MR. CHAIRMAN.
>>VINT CERF: THANK YOU, TOM.
I ASSUME THAT MATTER WILL COME BEFORE THE BOARD AS A SPECIFIC RESOLUTION AT A LATER TIME.
WE CERTAINLY APPRECIATE THE RECONSIDERATION COMMITTEE'S RECOMMENDATIONS.
ARE THERE ANY COMMENTS ON THAT REPORT?
MICHAEL.
>>MICHAEL PALAGE: AT A LATER TIME. POSSIBLY TOMORROW?
>>VINT CERF: I DON'T KNOW IF IT'S ON THE -- ON THE AGENDA.
BUT IF IT IS, WE'LL CERTAINLY TAKE IT UP.
ALL RIGHT. THE NEXT REPORT COMES FROM THE FINANCE COMMITTEE.
AND ONCE AGAIN I'LL CALL ON HAGEN HULTZSCH TO MAKE THAT REPORT.
>>HAGEN HULTZSCH: THANK YOU, VINT.
THE MEMBERS OF THE FINANCE COMMITTEE ARE RAIMUNDO BECA, AND JUST WAIT AND IT COMES UP -- MYSELF, BEING THE CHAIR, JOICHI ITO, TOM NILES, MIKE PALAGE, AND ALEX PISANTY.
MAYBE I'LL WAIT A LITTLE.
I JUST WANTED TO COMMUNICATE TO YOU THE DIFFERENT ACTIVITIES.
WE HAD TO WORK ON THE MOST IMPORTANT TASK OF THE FINANCE COMMITTEE, TO HELP TO BUILD THE BUDGET.
AND THESE ARE THE -- LET'S CALL IT THE MILESTONES, BECAUSE THERE'S CONTINUOUS DIALOGUE BETWEEN STAFF, MEMBERS OF THE BOARD, AND MYSELF WITH THIS, FORTUNATELY, VERY EFFECTIVE WORLDWIDE TELECOMMUNICATIONS INFRASTRUCTURE.
THE SPECIFIC MILESTONES WERE THAT THE FINANCE COMMITTEE CONSULTATION STARTED ON 15TH FEBRUARY.
WE HAD CONSULTATION WITH THE BUDGET ADVISORY GROUP ALSO ON 15TH FEBRUARY.
WE HAD COMMUNITY CONSULTATIONS FROM THEREAFTER CONTINUOUSLY.
STAFF WAS PREPARING PRELIMINARY BUDGET FIGURES.
WE HAD THE FINANCE COMMITTEE REVIEW AND CONSULTATION ON 3RD APRIL.
THE BUDGET ADVISORY GROUP CONSULTATIONS THE SAME DAY.
THAT'S WHY WE CAME TOGETHER.
COMMUNITY COMMENTS REGARDING OPERATIONAL PLAN ALSO ALREADY BY THE 3RD APRIL AND THEREAFTER.
AND THE MAR DEL PLATA FINANCE COMMITTEE REPORT REGARDING BUDGET ON 7TH APRIL.
WE LATER ON HAD A FINANCE COMMITTEE REVIEW, AND THE FINANCE COMMITTEE PROPOSED TO PRESENT THE BUDGET TO THE BUDGET ADVISORY GROUP.
AND IT WENT TO CONSULTATION.
AND EVENTUALLY, ON 17TH MAY, IT WAS POSTED, AS YOU HAVE SEEN.
FROM THERE ON, THERE WERE CONTINUOUS COMMUNITY CONSULTATIONS, LIKE THERE ARE HERE IN LUXEMBOURG.
WE HAD ANOTHER FINANCE COMMITTEE REVIEW AND RECOMMENDATION FOR APPROVAL ON 10TH JULY, EARLIER THIS WEEK.
AND WE HAD BUDGET ADVISORY GROUP CONSULTATION ALSO DURING THIS WEEK.
AND THERE IS A PROPOSAL THAT THE BOARD ADOPTS THE BUDGET AS IT IS NOW, WITH MINOR FLUCTUATION AND CHANGES BEING PRESENTED BY TOMORROW.
AND THERE WILL BE CONTINUOUS DIALOGUE WITH CONSTITUENCIES, AS WE ALL HAVE SEEN DURING THIS WEEK.
NEXT FOIL.
HOW DID WE DO THE BUDGET APPROACH?
ONE ISSUE WHICH IS MISSING IN THIS LIST IS THAT THIS ORGANIZATION MUST HAVE A RESERVE, WHICH IT CURRENTLY DOESN'T.
AND OVER THE -- LET'S CALL IT THE YEARS, THE ORGANIZATION MUST BUILD A RESERVE OF ABOUT THE ANNUAL EXPENDITURE IN ORDER TO PROTECT IT AGAINST WHATEVER KIND OF SITUATION MAY ARISE.
SO THIS IS A TOP-LINE BEHIND THESE LINES WHICH ARE LISTED HERE.
SO HOW DID WE PROCEED TO FIND A WAY TO GET THE BUDGET?
WE TALKED ABOUT THE OPERATING GOALS, WHAT SHOULD THE COMPANY DO.
AND THE OBJECTIVES ARE MAINLY BASED ON THE OPERATION PLAN.
THEN WE -- BECAUSE THIS AMOUNT OF LIST ASKED FOR A SIGNIFICANT AMOUNT OF MONEY, WE HAD TO PRIORITIZE THESE OBJECTIVES BASED UPON CONSULTATIONS, ESPECIALLY WITH THE BUDGET ADVISORY GROUPS.
AND FROM THERE ON, WE CALCULATED BUDGET REQUIREMENTS FOR VARYING LEVELS OF ACTIVITY.
ACTUALLY, WE CAME TO A WHOLE LIST.
AND THEN WE FOUND OUT THAT WITH RESPECT TO WHAT KIND OF MONEY REASONABLY COULD BE COLLECTED FROM THE ORGANIZATION, WE SAID THERE'S A THRESHOLD FOR THINGS WE CAN POSSIBLY DO AND FOR THINGS WHICH WE HAVE TO DEFER OR JUST KEEP INACTIVE.
AND THAT WAS THE PLATFORM FOR DETERMINING THE FUNDING MODEL BASED ON THE EXPECTED FUNDS LEVELS.
SO WE DEVELOPED A CLASS OF ACTIVITIES WHICH WE SAY IN DEVELOPMENT, BECAUSE, BASICALLY, WE REMAIN COMMITTED TO DO THEM, BUT WE DON'T HAVE THE MONEY TO DO IT.
AND THAT'S BOTH, IN THE END, THE PLATFORM FOR COMPOSING THE BUDGET BASED ON THESE OBJECTIVES, THE PRIORITIZATION, AND THE CONTINUOUS MANAGEMENT REVIEW.
NEXT, PLEASE.
SO, AGAIN, I WILL -- SHOULD STATE HERE THE CONTRIBUTIONS TO THE RESERVE CURRENTLY IS STILL LACKING.
MANY OF THE PROPOSED OPERATIONS AGAIN WERE DISCUSSED IN MAR DEL PLATA, ALSO HERE.
THE OPERATIONAL PLAN WAS POSTED AS PART OF ICANN'S PROPOSED BUDGET ON 17TH MAY, AS YOU SEE WITH THIS URL.
AND WE ARE CONTINUOUSLY IN A DIALOGUE, AND, NATURALLY, WHEN YOU TALK ABOUT MONEY, LIKE IN ANY GOVERNMENT TAX DISCUSSION, THERE'S A KIND OF A CONFLICT OF INTEREST.
THE ORGANIZATION NEEDS THE MONEY TO RUN, AND THOSE WHO ARE CONTRIBUTING TO MAKE THIS HAPPEN THINK THAT THEY SHOULD CONTRIBUTE AS LOW AS POSSIBLE, BECAUSE THEY WANT TO KEEP IT IN THEIR ORGANIZATION.
SO KIND OF NATURAL CONFLICTS.
THE NUMBERS WHICH CAME UP IN THIS PROCESS OF THINKING WHAT IS THE REASONABLE WAY, AND THEY COMMUNICATED THEM ALREADY LAST NIGHT, MAYBE IN MAR DEL PLATA, THAT THE PLANNED EXPENDITURES WOULD BE CLOSE TO $23 MILLION U.S., AND THE PLANNED REVENUES WOULD BE A LITTLE ABOVE $23 MILLION.
SO POSSIBLY EVEN CONTRIBUTING A MINOR AMOUNT OF MONEY TO THE RESERVES.
PERCENTAGE-WISE, AND KURT PRITZ WILL GO INTO THIS IN MORE DETAIL IN HIS PRESENTATION LATER, 29% GO INTO ENSURING THE STABILITY AND SECURITY OF THE DNS, WHICH IS THE CORE OF INTERNET.
ANOTHER PERCENTAGE IS GOING INTO PROMOTING COMPETITION, WHICH IS OUR MANDATE.
THE -- MORE THAN 19% GOING TO SUPPORT OF BOTTOM-UP POLICY DEVELOPMENT PROCESS.
AND THE ALSO SIGNIFICANT AMOUNT GOES TO ENSURE GLOBAL STAKEHOLDER PARTICIPATION.
AGAIN, THE CONTRIBUTIONS TO BUILD THE RESERVES ARE STILL MISSING.
NEXT, PLEASE.
CONCLUSION: THE FINANCE COMMITTEE RECOGNIZES THE IMPROVEMENTS MADE IN THE BUDGETING PROCESS, AND STAFF HAS DONE A SIGNIFICANT PIECE OF WORK.
THE MORE DETAILED OPERATION PLAN AND THE IDENTIFICATION OF PROJECTS ESSENTIAL TO THE ACCOMPLISHMENT OF ICANN'S MISSION.
WE HAVE A GLOBAL MISSION, AS WE HAVE ALSO LEARNED FROM THE DIALOGUE YESTERDAY MORNING, WHICH I THINK WAS A VERY IMPORTANT ONE FOR OUR, LET'S SAY, HISTORY.
THE COMMITTEE ALSO REQUESTS THAT ICANN STAFF CONTINUES TO IMPROVE THE PROCESS BY TAKING ACTIONS TO IMPROVE THE EFFECTIVENESS OF THE BUDGET ADVISORY GROUP, THE DIVERSIFICATION OF FUNDING SOURCES, AND THE LINKAGE BETWEEN THE STRATEGIC AND THE OPERATIONAL PLANNING PROCESSES.
AND THAT, ALL OF US KNOW, IS AN IMPORTANT PART OF OUR WORK TOGETHER.
THANK YOU.
>>VINT CERF: THANK YOU, HAGEN.
WE WILL BE HAVING A MORE DETAILED REPORT ON THE BUDGET SHORTLY.
SO SOME OF THE RATHER GROSS FIGURES THAT YOU PUT UP, HAGEN, I HOPE WILL BECOME MORE -- RICHER IN THEIR DETAIL WHEN WE HEAR FROM KURT PRITZ.
ARE THERE ANY QUESTIONS FOR HAGEN?
YES, PETER.
>>PETER DENGATE THRUSH: THANK YOU, MR. CHAIRMAN.
THANK YOU, HAGEN FOR THE REPORT.
I WONDER IF I COULD EXPLAIN SOMETHING TO MEMBERS OF THE AUDIENCE SO IF THEY UNDERSTAND HOW IMPORTANT THE LATER DISCUSSION ON THE BUDGET IS GOING TO BE.
THE BUDGET AS IT WAS RELEASED IS NOT THE BOARD'S BUDGET.
THE BOARD HAS NOT APPROVED THIS.
IT'S BEEN PRODUCED, AS HAGEN HAS EXPLAINED, BY THE FINANCE COMMITTEE AND THE STAFF.
SO BECAUSE I WASN'T A MEMBER OF THE BUDGET ADVISORY GROUP AND BECAUSE I'M NOT A MEMBER OF THE BUDGET FINANCE COMMITTEE, I ONLY SAW THE BUDGET AT THE (INAUDIBLE) LEVEL OF THOSE 16 STEPS ON THE 17TH OF MAY.
IT'S GOING TO BE VERY IMPORTANT TO ME IN DETERMINING WHETHER THIS BUDGET GETS APPROVED THAT THERE BE FULL COMMUNITY CONSENSUS OR AS MUCH AS WE CAN GET ON AN AREA, AS HAGEN HAS INDICATED WILL BE ALWAYS CONTENTIOUS.
IT'S VERY IMPORTANT TO ME TO KNOW THAT THE BUDGET HAS CONSENSUS.
SO I'M URGING YOU TO TAKE PART IN THE DISCUSSION WHEN IT COMES UP AT A LATER STAGE.
THANKS.
>>VINT CERF: THANK YOU, PETER.
IS THERE A COMMENT FROM THE FLOOR?
>>MARCUS FAURE: I'M MARCUS FAURE, AND I'M WITH CORE COUNCIL OF REGISTRARS.
AND THERE'S ONE SPECIFIC ISSUE ABOUT THE BUDGET THAT I NEED TO KEEP HAMMERING, AND THAT IS THE 75-CENT-PER-DOMAIN REGISTRY FEE.
IT NOW CRYSTALLIZES THAT ICANN WANTS ALL GTLD REGISTRIES TO PAY THOSE FEE.
WHILE THIS SOLVES THE ISSUE OF EQUALITY AMONG REGISTRIES, IT WILL ALSO MEAN THAT ICANN WILL END UP ON A $50 MILLION BUDGET, AT LEAST.
AND I HAVE A PROBLEM WITH THAT.
WE ARE WORKING WITH YOU IN THE BUDGET COMMITTEE BECAUSE WE THINK THAT WE ALREADY HAVE CERTAIN AREAS WHERE THE MONEY IS NOT PROPERLY SPENT.
BUT I WANT TO EXPRESS THAT WE HAVE PUT FORWARD A NUMBER OF QUESTIONS AND WANT TO PROVIDE INPUT FOR THAT PROCESS, BUT, ACTUALLY, THE QUESTIONS WE HAVE REMAIN UNANSWERED FOR QUITE SOME TIME NOW.
INSTEAD, WHAT WE HAVE SEEN IS THAT THE ICANN STAFF CONTACTED THE REGISTRARS AND ASKED THEM, "OH, COULD YOU PLEASE APPROVE NEXT YEAR'S BUDGET."
AND IF WE TALK ABOUT REGAINING TRUST, THIS IS NOT THE WAY TO GO FORWARD.
>>VINT CERF: THANK YOU.
IF THERE ARE NO MORE QUESTIONS AT THIS POINT, I'M GOING TO GO ON TO THE NEXT REPORT AND CALL UPON NJERI RIONGE, WHO CHAIRS THE AUDIT COMMITTEE.
NJERI.
>>NJERI RIONGE: THANK YOU, CHAIRMAN.
I JUST HIGHLIGHT WHO THE MEMBERS OF THE AUDIT COMMITTEE ARE.
AND THEY ARE RAIMUNDO BECA, VENI MARKOVSKI, AND JOICHI ITO, AND MYSELF AS CHAIR.
THE AUDIT COMMITTEE HAS REVIEWED THE ACTION POINTS AND SUGGESTIONS OF THE LAST MEETING, HELD IN MAR DEL PLATA IN ARGENTINA.
FURTHER TO THE ACTION POINTS OF OUR PREVIOUS MEETINGS, WE HAVE REVIEWED IN THIS LUXEMBOURG MEETING AND UPDATED THE SCHEDULES FOR ALL THE DELIVERABLES WITH DEFINITE TIME LINES IN ORDER TO MEET ICANN'S EXPECTATIONS SET WITHIN THE MANDATE OF THE AUDIT COMMITTEE.
OVERVIEW OF THE ENGAGEMENT OF THE AUDITORS.
THE AUDIT COMMITTEE RECOMMENDED THAT AFTER FIVE AUDITS BY KPMG, NEW AUDITORS BE ENGAGED.
AFTER INTERVIEWING SEVERAL CANDIDATES, MOSS ADAMS WAS CHOSEN AS THE AUDITOR FOR THE FISCAL YEAR 05-06.
THE MANAGEMENT WAS INSTRUCTED TO NEGOTIATE AN ENGAGEMENT LETTER WITH MOSS ADAMS.
THE LETTER HAS BEEN REVIEWED BY THE AUDIT COMMITTEE AND MANAGEMENT AND MEETS THE NEEDS OF STAFF AND ICANN AS A WHOLE.
THE AUDIT COMMITTEE HAS APPROVED THE ENGAGEMENT LETTER.
HOWEVER, THE MANAGEMENT MUST PUT IN PLACE MEASURES TO CONFORM TO THEIR REQUIREMENTS.
WE ARE CONFIDENT THAT THIS IS IN PLACE, BUT CAUTION SHOULD BE TAKEN THROUGH THE MAKING SURE THAT WE ACHIEVE THE ORIGINAL OBJECTIVES OF MAXIMIZING ON THE NEW AUDIT FIRM'S OUTPUT ON THEIR EXPERTISE.
THE AUDIT COMMITTEE RESOLVED DURING THE JUNE 28TH, 2005 MEETING -- THE BOARD RESOLVED DURING THE JUNE 28TH, 2005 MEETING, THAT PAUL TWOMEY ENTER INTO ENGAGEMENT.
IN ADDITION, ICANN IS DEVELOPING AN ORIENTATION BRIEF FOR THE AUDITORS DESCRIBING ICANN'S ROLES, OPERATIONS, AND OTHER INFORMATION NECESSARY TO EFFECTIVELY AND KNOWLEDGEABLY CONDUCT THE AUDIT.
THIS WILL HELP GREATLY IN REFERENCE TO THE STATEMENTS MADE IN THEIR ENGAGEMENT LETTER, WHERE THEY HAVE CLEARLY DEFINED THEIR ROLE AND OBJECTIVES.
THE BRIEF WILL DESCRIBE OUR EXPECTATIONS IN THE RESPONSE TO THIS AGREEMENT -- OR THIS AGREEMENT.
DURING THE EVALUATION PROCESS, THE ICANN BOARD RAISED CONCERNS ON THE ISSUES RELATED TO THE DISPUTE RESOLUTION QUESTION.
MANAGEMENT CONFIRMED THAT THE MOSS ADAMS LLP SENT A REVISED COPY INDICATING THAT CALIFORNIA WAS THE FORUM FOR DISPUTES.
WE PLAN TO BEGIN THE AUDIT PROCESS CLOSELY AFTER INVOICES ARE SENT FOR THE PERIOD OF CLOSING JUNE 30TH.
THESE INVOICES WILL BE SENT ABOUT THE 1ST OF AUGUST DUE TO THE TIME REQUIREMENT TO RECEIVE THE DATA FROM GTLD REGISTRIES.
AT THE DIRECTION OF THE AUDIT COMMITTEE, THE STAFF HAS PREPARED THE FIRST DRAFT OF THE NEW FINANCIAL CONTROL MODEL, WHICH MORE ACCURATELY REFLECTS THE MATURING OF THE ORGANIZATION AND HAS SPECIFIC DELIVERABLES BY WHICH PERFORMANCE CAN BE MEASURED.
ICANN PROPOSED INTERNAL FINANCIAL CONTROLS WILL IDENTIFY KEY RESPONSIBILITY AREAS IN ORDER TO MEASURE AND IMPROVE FINANCIAL CONTROL OPERATIONS.
EACH OF THE 48 KEY RESPONSIBILITY AREAS DESCRIBES THE CRITERIA BY WHICH EACH ACTIVITY IS TO BE MEASURED AND THE FREQUENCY WITH WHICH THE MEASUREMENT IS TO TAKE PLACE.
ICANN IS USING THIS SAME METHODOLOGY THROUGHOUT THE ORGANIZATION.
EXECUTIVE MANAGEMENT AND HUMAN RESOURCES ARE IDENTIFYING KEY RESPONSIBILITY AREAS THAT EACH FUNCTIONAL AREA AND EACH EMPLOYEE WILL DEVELOP -- KEY RESULT AREAS WILL FLOW DOWN FROM GENERAL REQUIREMENTS DESCRIBED IN THE STRATEGIC PLAN AND THE SPECIFIC REQUIREMENTS IN THE OPERATIONAL PLAN.
IN THAT MANNER, CHANGES IN THE STRATEGIC PLAN OVER TIME WILL AUTOMATICALLY BE TRANSLATED IN MEASURABLE KEY RESPONSIBILITY AREAS.
LIKEWISE, ACCOMPLISHING THE KEY RESPONSIBILITY AREAS WILL DIRECTLY LEAD TO THE FULFILLMENT OF OBJECTIVES DESCRIBED IN THE STRATEGIC PLAN.
THE COMMITTEE IS REVIEWING THIS DRAFT PLAN AND WILL PROVIDE COMMENTS TO THE STAFF BEFORE LEAVING LUXEMBOURG IN PREPARATION FOR FINALIZING THIS DOCUMENT.
THE NEXT STEP WILL BE PREPARING THE PROCESS DOCUMENTS DESCRIBING EXPECTED PERFORMANCE.
THE AUDIT FOR FISCAL 03-04, CONDUCTED BY KPMG, IS ESSENTIALLY COMPLETED.
AUDITORS HAVE BEEN IN RECEIPT OF ALL THE MATERIALS NECESSARY TO COMPLETE THEIR WORK.
KPMG HAS DELIVERED A DRAFT AUDIT WHICH HAS BEEN REVIEWED BY THE AUDIT COMMITTEE AND RETURNED TO THE KPMG FOR FINAL PUBLICATION.
THE AUDIT REPORT WILL RECOMMEND A REVISION OF THE BAD DEBT RESERVE TO REFLECT THE OUTSTANDING ADDRESS REGISTRY RECEIVABLES.
THERE WERE NO OTHER MATERIAL ADJUSTMENTS MADE TO THE ICANN FINANCIAL STATEMENTS.
KPMG SENT THE FINAL REPORT THIS MORNING.
ICANN WILL POST THE AUDIT UPON REVIEW.
WE WANT TO APOLOGIZE FOR THE DELAY IN FINALIZING LAST YEAR'S FINANCIAL STATEMENT.
WE ARE INFORMED THAT THIS -- IT WAS THE FIRST TIME THAT THIS HAS ACTUALLY HAPPENED.
IN AREAS OF BANKING, ICANN IS SOLICITING PROPOSALS TO PROVIDE BANKING SERVICES.
THE PURPOSE OF THE SOLICITATION IS TO IMPROVE SERVICES TO ICANN LOCATIONS OUTSIDE OF THE UNITED STATES, PARTICULARLY TO FACILITATE PAYMENT ON INVOICES AND PAYROLL, AND IMPROVE RETURN ON CASH ON DEMAND.
ON THE SCOPE OF THE AUDIT CHARTER, WHICH ALEJANDRO MENTIONED EARLIER IN HIS REPORT, WE, THE AUDIT COMMITTEE, HAVE PREPARED AND PROPOSED A CHANGE IN THE CURRENT AUDIT BYLAWS.
IT IS CURRENTLY UNDER REVIEW WITHIN THE BOARD GOVERNANCE COMMITTEE.
WE WOULD APPRECIATE COMMENTS FROM THE FORUM PARTICIPANTS WITH THEIR VIEWS OF HOW THEY SEE THE AUDIT FUNCTION WORKING.
THE COMMITTEE IS COMMITTED TO MEETING THE ACTION PLANS FOR THIS YEAR, '05/'06, WHICH WE BELIEVE WILL OFFER THE ICANN BOARD, STAFF, AND COMMUNITY AT LARGE SUPPORT AS PER THE ICANN BYLAWS.
THANK YOU.
>>VINT CERF: THANK YOU VERY MUCH, NJERI.
ARE THERE ANY QUESTIONS FOR NJERI ON THE AUDIT REPORT?
MICHAEL.
>>MICHAEL PALAGE: NOT SO MUCH A QUESTION BUT MORE OF A STATEMENT.
THERE HAS BEEN SOME DIALOGUE ON THE BOARD LIST REGARDING THE EXPANDED ROLE OR DEFINITION OF THE SCOPE OF THE AUDIT COMMITTEE.
AND I'D LIKE TO SUPPORT WHAT NJERI HAS BEEN PROPOSING VIA THE BOARD LIST.
I THINK IT IS AN IMPORTANT MECHANISM AND, AGAIN, PROVIDES AN ADDITIONAL CHECK AND BALANCE.
>>VINT CERF: THANK YOU, MICHAEL, I THINK IF THE BOARD CONCURS, IT WILL BE ABLE TO OUTLINE WHAT THOSE AUDIT ELEMENTS ARE SO EVERYONE ELSE CAN SEE WHAT WE'RE TRYING TO DO.
IF THERE ARE NO OTHER QUESTIONS ON THIS POINT, THANK YOU VERY MUCH, NJERI.
THE NEXT REPORT -- I KNOW I'M CONFUSED ABOUT SOMETHING.
YES, I'M SORRY.
FINANCE COMMITTEE, YOU ALREADY MADE YOUR REPORT, DIDN'T YOU?
>>HAGEN HULTZSCH: YES.
THE CHAIRMAN -- I THOUGHT YOU DID IT --
>>VINT CERF: I DID IT OUT OF ORDER BY ACCIDENT.
>>HAGEN HULTZSCH: AUDIT ALWAYS COMES AFTER FINANCE, AND THAT'S WHY I THOUGHT IT WOULD BE REASONABLE.
>>VINT CERF: IT'S SIMPLY CERF NOT PAYING ATTENTION TO WHAT HE'S DOING.
APOLOGIES.
IN THAT CASE, THE NEXT REPORT COMES FROM KURT PRITZ.
AND THIS IS TO DISCUSS THE ACTUAL BUDGET IN MORE DETAIL THAN THE FINANCE COMMITTEE REPORT.

>>KURT PRITZ: THANK YOU, MR. CHAIRMAN.
THIS REPORT IS INTENDED TO COMPLEMENT AND AUGMENT THE REPORT JUST GIVEN BY HAGEN HULTZSCH.
>>HAGEN HULTZSCH: I'M CONFUSED.
DID YOU WANT ME TO SAY SOMETHING OR --
>>KURT PRITZ: NO, NO.
I WAS JUST WAITING FOR THE -- FOR THE REPORT TO COME UP ON THE SCREEN.
FOR THOSE OF YOU THAT WERE INVOLVED IN THE STRATEGIC PLANNING CONSULTATIONS THAT HAVE TAKEN PLACE OVER THE LAST SEVERAL MONTHS, YOU'LL KNOW THAT AN UNINTENDED BENEFIT OF THOSE CONSULTATIONS WAS THAT ICANN DEVELOPED A PLANNING CALENDAR THAT IS ESSENTIALLY BROKEN UP INTO TWO SIX-MONTH PLANNING CYCLES. THERE IS A STRATEGIC PLANNING CYCLE WHERE ICANN WILL ROLL IT'S STRATEGIC PLAN THROUGH ANOTHER YEAR, AND THAT CYCLE THAT COMMENCED ESSENTIALLY WITH THIS MEETING WITH A SERIES OF CONSULTATIONS, AND WILL EXTEND THROUGH DECEMBER. AND THEN THE OTHER HALF OF THE PLANNING CALENDAR IS THE OPERATIONAL PLANNING AND BUDGET PLANNING PORTION OF THE YEAR, WHICH IS A ONE-YEAR PLANNING WINDOW, AND THAT TAKES PLACE FROM JANUARY THROUGH JUNE.
THOSE OF YOU FAMILIAR WITH ICANN BUDGETS IN THE PAST RECALL THAT IT'S QUITE A BIT OF PROSE DESCRIBING WHAT ICANN IS GOING TO DO FOLLOWED BY SPREADSHEETS WITH NUMBERS THAT COMPRISE THE EXPENSE AND REVENUE PORTIONS OF THE BUDGET. THIS YEAR THE PLAN HAS BEEN AUGMENTED SOMEWHAT, AND THAT PROSE HAS BEEN TURNED INTO A MORE OPERATIONAL PLAN WHEREBY A SERIES OF SPECIFIC OBJECTIVES ARE LAID OUT AND TOES OBJECTIVES ARE TIED TO THE STRATEGIC PLAN AND DESCRIBED WITH ENOUGH SPECIFICITY TO ENABLE AN END OF THE YEAR REPORT.
THIS IS INTENDED TO BE AN IMPROVEMENT AND THE IMPROVEMENTS IN THE PLANNING PROCESS AND THE DETAIL WILL BE INCREASED IN FUTURE YEARS.
SO THIS YEAR, BECAUSE THESE PLANNING CYCLES WERE JUST BEING IMPLEMENTED, WE WERE HAVING STRATEGIC PLANNING DISCUSSIONS IN PARALLEL WITH THE CURRENT YEAR BUDGET PLANNING DISCUSSIONS. BUT AS THE SLIDE FROM HAGEN INDICATED, WE HAD INTERACTIONS WITH THE FINANCE COMMITTEE, BUDGET ADVISORY GROUP, DIFFERENT CONSTITUENCY GROUPS. WE PUBLISHED THE PROPOSED BUDGET ON THE 17TH OF MAY, AND THEN WENT THROUGH ANOTHER SERIES OF CONSULTATIONS.
WHILE THIS BUDGET WORK WAS GOING ON AND THE OPERATIONAL PLANNING WAS GOING ON, WE WERE ALSO ALTERING THE STRATEGIC PLAN SOMEWHAT, AND AS A RESULT OF THOSE CONSULTATIONS, AND THEN THOSE CHANGES TO THE STRATEGIC PLAN FED INTO THE OPERATIONAL PLAN.
SOMEWHAT CONFUSING, BUT NOW THAT OUR SIX-MONTH PLANNING CALENDARS ARE SET, THE PROCESS WILL BE SOMEWHAT MORE COHERENT IN THE FUTURE.
SO THE OPERATIONAL PLAN IS THIS ONE YEAR PLAN BASED ON THE FOUR PRIORITIES SET OUT IN THE STRATEGIC PLAN. AND THE OPERATIONAL PLAN IS POSTED ON THE NET. IT'S BEEN POSTED FOR COMMENTS, AND THOSE COMMENTS CAN BE FOUND AT THE URL INDICATED THERE.
THROUGHOUT THE BUDGETING PROCESS AND OPERATIONAL PLANNING PROCESS, WE RECEIVED QUESTIONS FROM MANY QUARTERS, THROUGH CONSTITUENCY MEETINGS WITH REGISTRIES AND REGISTRARS, THROUGH CONSTITUENCY MEETINGS WITH OTHER CONSTITUENCIES, THROUGH THE BUDGET ADVISORY GROUP, AND ALSO -- I GUESS THAT'S ABOUT IT. OH, THE PUBLIC COMMENT FORUM. THAT'S IT. AND SO ICANN RESPONSES TO THOSE QUESTIONS AND ANY CHANGES MADE TO THE FORM OR SUBSTANCE OF THE BUDGET ARE POSTED AT THAT WEB SITE DOWN THERE.
AS I STATED, THE OPERATIONAL PLAN IS TIED TO THE FOUR STRATEGIC PRIORITIES IN THE -- THE OPERATIONAL PLAN IS TIED TO THE FOUR STRATEGIC PRIORITIES SET OUT IN THE STRATEGIC PLAN. TOO MUCH "STRATEGIC" THERE.
THIS IS JUST A SAMPLING OF THE GOALS. MAYBE THE MOST IMPORTANT ONES, MAYBE NOT. THAT ARE ROLLED OUT IN THAT OPERATIONAL PLAN.
THE OPERATIONAL PLAN AS A WHOLE, THAT COMPRISES THE GOALS WE THINK WE CAN COMMIT TO BEING ABLE TO ACCOMPLISH THIS FISCAL YEAR AND ALSO ONES THAT WE'LL BE WORKING ON BUT WILL BE FINAL IN OTHER FISCAL YEARS. THE TOTAL OF THOSE GOALS IS OVER 100. THESE ARE SOME OF THOSE; CERTAINLY THAT HAVE BEEN THE TOPIC OF DISCUSSION AT THIS MEETING AND OTHER MEETINGS. AND THAT'S DEPLOYMENT OF IDNS, THE CREATION OF A STANDING TECHNICAL PANEL TO REVIEW PROPOSALS FOR NEW REGISTRY SERVICES IN A TRANSPARENT AND TIMELY MANNER. SUPPORTING THE DEPLOYMENT, ULTIMATE DEPLOYMENT, OF DNSSEC. ADDRESSING REGISTRY FAIL-OVER SITUATIONS AND PROTECTING THE INTEREST OF REGISTRANTS. SIMILARLY, ENSURING PROPER DATA ESCROW IMPLEMENTATION AT REGISTRARS AND PROTECTING THE INTEREST OF REGISTRANTS. AND CORROBORATING WITH ROOT SERVER OPERATORS AND WORKING TOGETHER.
WITH REGARD TO PROMOTING COMPETITION AND CHOICE, ICANN WILL CONTINUE TO IMPLEMENT ITS FULL CONTRACT COMPLIANCE PROGRAM. WE'RE ALSO WORKING WITH SUPPORTING ORGANIZATIONS AND OTHER COMMUNITY MEMBERS TO DETERMINE THE WAY IN WHICH WE SHOULD IMPLEMENT THE STRATEGY FOR THE DESIGNATION OF NEW GTLDS.
WE WILL CONTINUE TO FACILITATE THE ENFORCEMENT OF THE INTER-REGISTRAR TRANSFER POLICY. WE WILL WRAP UP THE STLD ROUND THAT'S BEEN GOING ON FOR QUITE SOME TIME. WE ARE IMPROVING OUR CUSTOMER SERVICE IN MANY AREAS. WE'RE AUGMENTING OUR REGISTRAR AND REGISTRY LIAISON FUNCTIONS, ADDING AT LEAST THREE POSITIONS IN THOSE AREAS COMBINED. AT LEAST ONE OF THOSE WILL BE IN THE BRUSSELS OFFICE.
AND WE'LL IMPLEMENT THE PROCESS FOR THE CONSIDERATION OF NEW REGISTRY SERVICES.
THERE'S ALSO SEVERAL OBJECTIVES SUPPORTING THE DEVELOPMENT OF POLICY.
WE SEEK TO IMPROVE OUR MODEL FOR WORKING WITH THE GAC. WE'RE CONDUCTING A REVIEW AND DESCRIBING A PLAN FOR IMPROVING THE EFFECTIVENESS OF ICANN INTERACTION WITH ALAC.
THE GNSO EVALUATION PROCESS WAS STARTED LAST YEAR AND WILL CONTINUE THROUGH THIS YEAR THROUGH A DIFFERENT PHASE.
WE'RE LOOKING TO SUCCESSFULLY IMPLEMENT THE GNSO POLICY THAT'S DEVELOPED REGARDING THE WHOIS TASK FORCES OR COMING FROM THE WHOIS TASK FORCES.
WE'RE CONTINUING TO GUIDE THE POLICY DEVELOPMENT OF IP -- DISTRIBUTION OF IPV6 ADDRESS SPACE, AND WE'RE LOOKING TO WORK WITH THE RIRS AND EXECUTE SERVICE LEVEL AGREEMENTS WITH THEM.
AND FINALLY, REGARDING SUPPORTING GLOBAL PARTICIPATION, GLOBAL STAKEHOLDER PARTICIPATION IN THE INTERNET, WE'LL AUGMENT OUR TRAINING AND EDUCATION TO USERS OF IANA SERVICES, AND PARTICULARLY THINGS SUCH AS EDUCATION OF CC MANAGERS AS TO IANA SERVICES. WE WILL CONTINUE THE BUILDING OF AN AT LARGE NETWORK AND MOVING TOWARDS THE CREATION OF RALOS, REGIONAL AT-LARGE ORGANIZATIONS.
WE WILL MAKE THE ICANN WEB SITE USER FRIENDLY, MORE USER FRIENDLY, BUT ALSO CONTINUE TO AUGMENT OR TRANSLATION EFFORTS IN THOSE AREAS. AND THAT GOES TO THE LAST ONE, TOO.
THESE, LIKE I SAY, ARE A SAMPLE OF IMPORTANT OBJECTIVES FOR NEXT YEAR. I INVITE YOU TO VISIT THE BUDGET ON THE ICANN WEB SITE AT THE URL STATED EARLIER AND REVIEW THE OBJECTIVES. AND I ALSO INVITE YOU TO COMMENT IN THE PUBLIC COMMENT FORUM REGARDING THAT.
EACH OBJECTIVE HAS BEEN WRITTEN SO THAT IT CAN BE SUBDIVIDED INTO SCHEDULED MILESTONES. AND EACH OBJECTIVE HAS AN OWNER, SO WE'RE MANAGING EACH OBJECTIVE AS A MINI PROJECT OR A REGULAR PROJECT IN OUR LARGER CASES. AND THAT WILL ALLOW US TO PROVIDE TO THE COMMUNITY AT THE CLOSE OF THE FISCAL YEAR A PERFORMANCE REPORT AGAINST EACH OF THE OBJECTIVES.
THE REVENUE PLAN FOR THE YEAR IS SIMILAR TO THAT OF LAST YEAR. WE'VE PROPOSED TO THE GTLD REGISTRARS A FEE STRUCTURE THAT IS THE SAME AS LAST YEAR, AND THAT IS A 25 CENT PER TRANSACTION FEE. A $3.8 MILLION FEE ALLOCATED TO ALL REGISTRARS. AT THE TIME OF THIS WRITING IF YOU WERE TO DIVIDE THAT FEE BY THE NUMBER OF REGISTRARS, IT WOULD BE APPROXIMATELY $7900, U.S., PER REGISTRAR.
THE REGISTRARS STILL PAY THE VAST MAJORITY OF THE FEES, AND IT'S LESS THIS YEAR, BUT ICANN WILL CONTINUE TO DEVELOP ALTERNATIVE SOURCES OF FUNDING AND DIVERSIFY OUR SOURCES OF FUNDING TO CREATE A MORE SOUND BUSINESS MODEL.
GTLD REGISTRY FEES ARE GROWING AS CONTRACTS EXPIRE. A PORTION OF THESE FEES ARE DEDICATED TO TWO SEPARATE AREAS. ONE IS SECURITY AND STABILITY PROJECTS AND THE OTHER ARE GLOBAL INTERNET COMMUNITY PARTICIPATION PROJECTS. THE INCREASED FUNDING ALLOWS US TO TARGET THOSE AREAS. IN ADDITION, THE CREATION OF NEW STLDS, YOU'LL LEARN MORE ABOUT THOSE LATER, BUT .MOBI, .TRAVEL AND .JOBS, HAVE SIGNED AGREEMENTS FOR THE DESIGNATION OF NEW REGISTRIES, WILL CONTRIBUTE FEES.
THE CCNSO IS ACTIVELY COLLABORATING WITH ICANN AND HAS SOUGHT OUR ADVICE REGARDING THE CREATION OF A FEE STRUCTURE IN PARTICULAR ASKING US TO IDENTIFY ALL AREAS IN WHICH COUNTRY CODE TOP-LEVEL DOMAINS BENEFIT FROM THE PRESENCE AND MISSION OF ICANN.
AND WE ALSO REMAIN IN DISCUSSION WITH THE RIRS REGARDING FEES.
THIS IS THE SLIDE HAGEN SHOWED YOU EARLIER DIVIDING UP THE EXPENDITURES BY STRATEGIC PRIORITY.
WE THOUGHT AS A WAY OF PROVIDING DETAIL, TRADITIONALLY IN THE ICANN BUDGET WE ONLY PRESENT DETAIL REGARDING, YOU KNOW, HOW MUCH FOR PERSONNEL, HOW MUCH FOR TRAVEL AND SO ON. AND THE USES OF THOSE FUNDS IS SOMEWHAT VAGUE.
WE'VE ALLOCATED THOSE FUNDS ACROSS THE FOUR AREAS OF THE STRATEGIC PRIORITIES AS AN EXERCISE TO SEE HOW -- WELL, TO SEE HOW INSTRUCTIVE THAT MIGHT BE.
WHAT YOU SEE HERE IS NOT SURPRISING, AND THAT IS PERSONNEL EXPENSE IS PRETTY WELL PROPORTIONAL TO THE PERCENT SPENDING IN EACH OF THE STRATEGIC PRIORITIES. TRAVEL, NOT SURPRISINGLY, IS MORE HEAVILY WEIGHTED TOWARD GLOBAL PARTICIPATION WHERE OUTREACH ACTIVITIES ARE CONCERNED AND ALSO POLICY SUPPORT WHERE THERE'S A LOT OF INTERACTION WITH CCS.
ADMINISTRATION IS PRIMARILY OVERHEAD EXPENSE.
AND I'LL SAY A WORD ABOUT OVERHEAD EXPENSE IN A MINUTE.
RETAINED EXPERTISE IS WHERE WE HIRE OUTSIDE FIRMS, WHERE WE DETERMINE THAT IT'S MORE ECONOMICAL FOR SOMEONE ELSE TO DO A TASK OR TAKE ON A PROJECT THAN ICANN STAFF BECAUSE OF THE EXISTENCE OF SKILLS OR NOT.
AND THEN FINALLY, CAPITAL EXPENDITURES ARE, YOU KNOW, RELATIVELY LARGE EXPENDITURES BECAUSE WE'RE NOT FOR PROFIT. THE DEFINITION OF A CAPITAL HERE DOES NOT MATCH THE TRADITIONAL DEFINITION OF CAPITAL, BUT YOU SEE THAT OUR CAPITAL PROJECTS TYPICALLY GO TO IMPROVING THE INFRASTRUCTURE THAT WILL TEND ENSURE THE SECURITY AND STABILITY OF THE DNS OR THEY GO TO THE OVERHEAD WHERE THEY WILL TEND TO ENSURE THE SECURITY AND STABILITY OF ICANN OPERATIONS.
THE COMMENT I HAD TO MAKE ABOUT OVERHEAD IS THAT THESE OVERHEAD NUMBERS ARE NOT TRADITIONAL OVERHEAD NUMBERS BUT, INSTEAD, IN SOME CASES THEY ARE, IN SOME CASES WE HAVE EXPENDITURES THAT BENEFIT ALL FOUR AREAS OR ALL FOUR STRATEGIC PRIORITIES EQUALLY. AND SO WE'VE LEFT THEM IN A POT THAT WE CALL OVERHEAD THERE IN ORDER TO PROVIDE SOME CLARITY IN THE OTHER AREAS.
SO THESE NUMBERS WILL BE POSTED, AND I WELCOME QUESTIONS OR FURTHER DISCUSSION ON THEM OR THE OPPORTUNITY TO PROVIDE FURTHER DETAIL.

I THOUGHT IT ALSO WOULD BE INSTRUCTIVE TO LOOK AT THE SPENDING BY STRATEGIC PRIORITY OVER THE LAST THREE YEARS. WE SEE IN THIS FISCAL YEAR MORE OF THE MONEY GOES TO PROMOTING SECURITY AND STABILITY OF THE DNS. IN EACH CASE IT SHOULD BE NOTED THAT THERE'S SOME CONCLUSIONS TO BE NOTED FROM THAT.
ONE IS THAT IN EACH CASE OF FUNDING HERE, ABSOLUTE FUNDING HAS GONE UP, SO EVEN THOUGH THE RELATIVE PERCENTAGE OF PROMOTING COMPETITION HAS DECREASED SOMEWHAT, WE'RE ACTUALLY SPENDING MORE ON PROMOTING COMPETITION AND FACILITATING THE INTRODUCTION OF NEW SERVICES THIS YEAR THAN IN PREVIOUS YEARS.
THIS IS PARTICULARLY SO BECAUSE, AS I DESCRIBED EARLIER, ICANN HAS SET ASIDE PARTICULAR FUNDS TO PROMOTE, TO ENSURE SECURITY AND STABILITY, AND ALSO IN THE WAY OF GLOBAL STAKEHOLDER PARTICIPATION FUNDS. SO THE FEEDBACK THAT PROMOTING COMPETITION REMAIN THAT HIGH PERCENTAGE IS AN INDICATOR THAT ICANN IS DEDICATED TO THAT ONE LINE ITEM.
SO THOSE ARE TWO OF THE CONCLUSIONS THAT I WOULD DRAW FROM THAT.
A THIRD CONCLUSION IS THAT THE INCREASED SPENDING IN THE AREAS OF POLICY DEVELOPMENT SUPPORT AND GLOBAL STAKEHOLDER PARTICIPATION BENEFITS COUNTRY CODE REGISTRIES. AND SO IT'S, THEREFORE, A SUBJECT OF THE DISCOURSE WE'RE HAVING WITH ICANN AND THE CCNSO REGARDING POTENTIAL FEE STRUCTURE.
WE THINK THESE ARE AREAS WHERE THE ICANN MODEL PROVIDES DIRECT BENEFIT.
WE'RE ALSO LOOK FOR WAYS TO IMPROVE THE COLLABORATIVE PROCESS. IN PARTICULAR, WE'RE ENGAGED IN AND WE WILL CONTINUE TO ENGAGE IN DISCUSSIONS WITH BUDGET ADVISORY GROUP MEMBERS IN ORDER TO IMPROVE THE EFFICACY OF THAT PROCESS.
SO THAT CONCLUDES MY COMMENTS, MR. CHAIRMAN. DO YOU WANT ME TO STAY HERE AND TAKE QUESTIONS OR --
>>VINT CERF: YES, I WOULD LIKE YOU TO DO THAT.
ARE THERE ANY QUESTIONS AT THIS POINT FROM THE FLOOR OR FROM THE BOARD ON THE BUDGET PRESENTATION?
ALEX.
>>ALEJANDRO PISANTY: KURT, YOU DID A VERY, I THINK, GOOD JOB IN EXPLAINING THE MEANING OF OVERHEAD WHICH STRIKES ME AS QUITE NONCONVENTIONAL.
OVERHEAD IS PRESENTED AS LARGE LINE ITEM IN THE TABLE YOU PRESENTED, YET I GUESS I HAVE A LANGUAGE PROBLEM HERE, NOT BEING A NATIVE ENGLISH SPEAKER, BEING POORLY TRAINED IN WRITTEN AND SPOKEN FORMS OF IT.
OVERHEAD IS READ AS SOMETHING VERY DIFFERENT THAN WHAT A LARGE PART OF WHAT YOU ARE SPENDING THERE MEANS, WHICH IS BROAD, GENERAL KINDS OF SUPPORT FOR SERIOUS WORK. IT'S NOT JUST MOVING THE PAPERS AROUND, MAKING SURE THAT EVERYTHING GETS PROPERLY RECORDED WHEN PREPARING FOR AN AUDIT AND SO FORTH. YOU'RE ACTUALLY DOING A LOT OF EXPERT WORK AND YOU'RE DOING SUBSTANTIVE PARTICIPATION IN INTERNATIONAL FORA, LIKE WITH THE TRAVEL THING, FOR EXAMPLE, YOU'RE DOING INSTITUTIONAL RELATIONS. I DON'T READ THAT AS OVERHEAD. THAT'S ACTUALLY SOMETHING THAT STANDS BELOW THE ORGANIZATION, NOT ON TOP OF IT.
>>KURT PRITZ: YEAH, I AGREE, AND PERHAPS I COULD HAVE CHOSEN A BETTER TERM. AN EXAMPLE OF THAT IS THE MEETING EXPENSE THAT WE HAVE HERE SITS IN THAT CHART IN OVERHEAD BECAUSE WE THINK THAT THE MEETINGS BENEFIT ALL FOUR OF THOSE STRATEGIC PRIORITIES. AND SO WE TOOK THEM OUT OF THE SPECIFIC STRATEGIC PRIORITY DISCUSSION.
>>VINT CERF: SO, KURT, I WOULD SUGGEST GIVEN ALEX'S OBSERVATION THAT YOU RETHINK THE LEVEL OF DETAIL AND BE A LITTLE MORE CLEAR ABOUT HOW THOSE OVERHEAD FUNDS REALLY ARE ALLOCATED.
I THINK I HAVE TWO QUESTIONS FROM THE FLOOR AND ONE FROM THE BOARD. MARILYN.
>>MARILYN CADE: I GUESS I HAVE AN OVERALL QUESTION AND THAT IS I DO TAKE TO HEART A COMMENT THAT ONE OF THE BOARD MEMBERS MADE EARLIER ABOUT HOW IMPORTANT THIS DISCUSSION IS AND I DON'T SEE A LONG QUEUE OF PEOPLE BEHIND ME, WHICH CONCERNS ME BECAUSE I THINK THERE NEEDS TO BE MORE DIALOGUE. I HAVE READ THE BUDGET SLASH OPERATIONAL PLAN IN GREAT DETAIL AND HAVE A LOT OF QUESTIONS ABOUT IT. ONE THING THAT I SAW IN YOUR PRESENTATION, KURT, WAS INFORMATION THAT I HAVE BEEN ASKING FOR. THERE ARE TWO POWERPOINTS THAT YOU SHARED HERE THAT WOULD BE HELPFUL. I HEARD THE PERCENTAGE BEFORE ON HOW MUCH MONEY IS BEING SPENT ON DIFFERENT CATEGORIES BUT THIS IS THE FIRST TIME I HAVE SEEN THE AMOUNTS AND I HAVE SEEN THE AMOUNTS IN A POWERPOINT SLIDE AND NOT A DOCUMENT I HAVE BEEN ABLE TO FIND ANYWHERE ON THE ICANN SITE. NOW, I'M MAYBE NOT THAT EXPERT A USER OF THE ICANN SITE SO SOMEBODY COULD POINT ME TO IT, BUT THAT'S NOT EVEN ENOUGH DETAIL FOR US TO HAVE A FACTUAL CONVERSATION IN OR!
DER FOR US TO SAY OKAY, I FEEL COMFORTABLE WHEN I LOOK AT THE OPERATIONAL PLAN THAT IT'S GOING TO GUIDE THE BUDGET ON -- TAKE, FOR INSTANCE, ONE HEADING, THERE ARE 18 SUB-ELEMENTS, NINE OF THEM ARE UNDERWAY, ANOTHER FEW ARE PLANNED. I CAN'T TELL HOW MUCH OF THE MONEY IN THAT BUDGET, THE AMOUNTS OF WHICH I SAW IN A POWERPOINT SLIDE, FIT TO THOSE 18 ELEMENTS.
HOW DO I GET TO THAT LEVEL OF UNDERSTANDING? BECAUSE I THINK THAT IT IS INCREDIBLY IMPORTANT THAT WE ALL SUPPORT MOVING FORWARD ON THIS BUDGET AND I'D LIKE TO DO THAT. HOW DO I GET TO THAT LEVEL OF UNDERSTANDING?
I DO NOT WANT A LOT OF DETAIL, BUT I NEED HEADLINE NEWS.
>>KURT PRITZ: THANK YOU.
>>VINT CERF: LET ME TAKE THIS OTHER QUESTION FROM THE FLOOR AND THEN I'LL TAKE MOUHAMET, YOU HAD YOUR HAND UP; IS THAT RIGHT? OKAY. THANK YOU.
>>DANIEL KARRENBERG: I'D LIKE TO ECHO WHAT MARILYN JUST SAID. I LOOKED AT THE BUDGET AS WELL, AND IT'S MAINLY STRUCTURED -- THE EXPENDITURE SIDE, IT'S MAINLY STRUCTURED AROUND INTERNAL ORGANIZATION, AND I WOULD ENCOURAGE THE BOARD AND THE STAFF FOR THE NEXT BUDGET TO ACTUALLY INCLUDE THE STUFF THAT WAS ON THE POWERPOINT SLIDES WHEN THE BUDGET IS FIRST PRESENTED, BECAUSE OTHERWISE IT'S QUITE MEANINGLESS.
MORE DETAILED POINT, I SAW ON ONE OF YOUR FIRST SLIDES THAT -- IT'S A MORE DETAILED THING -- LANGUAGE THAT SAID CORROBORATING WITH ROOT SERVER OPERATORS. AND I MAY HAVE, AS ALEJANDRO, A LANGUAGE PROBLEM HERE. I DON'T KNOW WHAT THAT MEANS. TELL ME WHAT THAT MEANS. NUMBER TWO, WHAT IS THE SPECIFIC BUDGET LINE THAT'S THERE AND WHAT THESE FUNDS ARE GOING TO BE SPENT ON.
>>KURT PRITZ: I'M SORRY; COULD YOU REPEAT THE SECOND HALF OF YOUR QUESTION?
>>DANIEL KARRENBERG: THE SECOND HALF OF MY QUESTION, ON THE THIRD SLIDE, IT SAID IN PROMOTING SECURITY AND STABILITY, THE LAST BULLET POINT SAID CORROBORATING WITH ROOT SERVER OPERATORS. BEING A ROOT SERVER OPERATOR, THAT WORRIES ME BECAUSE I DON'T UNDERSTAND IT. AND THE SECOND PART OF THE QUESTION IS PLEASE TELL ME WHAT IT MEANS. THAT'S THE FIRST PART OF THE QUESTION. THE SECOND PART OF THE QUESTION TELL ME WHAT SPECIFIC EXPENDITURE IS IN THE BUDGET AND WHAT IS GOING TO BE USED FOR ADDRESSING THIS POINT.
>>VINT CERF: KURT, BEFORE YOU ANSWER, I WANT TO MAKE SURE THAT WE GET A USEFUL ANSWER. IT'S NOT JUST THE DOLLARS, I THINK, THAT YOU WANTED TO KNOW BUT WHAT IS IT THAT YOU'RE SPENDING IT ON. WHAT'S THE NATURE OF THE COOPERATION.
>>DANIEL KARRENBERG: $5 IS NOT AN ANSWER.
>>VINT CERF: YES, EXACTLY.
BY THE WAY, I HOPE YOU WOULDN'T WANT US TO NOT COOPERATE WITH YOU.
>>DANIEL KARRENBERG: IT SAID CORROBORATE. THAT'S THE THING THAT WORRIES ME.
>>PAUL TWOMEY: THANKS FOR THE QUESTION. BASICALLY, I THINK IT'S TWO PARTS. ONE IS SUPPORTING ONGOING DISCUSSIONS THAT JOHN CRAIN AND OTHERS SUPPORTING, WHERE IT'S NECESSARY, SUZANNE. SO PART OF IT IS SUPPORTING JOHN CRAIN, AND WHERE APPLICABLE, SUZANNE IN JUST THE PARTICIPATION THEY HAVE WITHIN THAT COMMUNITY. AND THAT INCLUDES TRAVEL ISSUES, IT INCLUDES ATTENDANCE ISSUES, IT INCLUDES THE THINGS YOU'RE AWARE.
IT ALSO IS ALSO FOR A PROVISION FOR POTENTIAL SUPPORT OF THE DISCUSSIONS THAT I UNDERSTAND ARE HAPPENING IN THE -- IN MY (INAUDIBLE) SERVER OPERATOR POTENTIALLY ABOUT ARRANGEMENTS. THAT'S BASICALLY IT. SO THOSE ARE THE TWO SORT OF MAIN FOCUS. OTHER ASPECTS L-ROOT AND OTHER ARE SEPARATE TO IT.
IT DOESN'T HAVE ANY -- THERE'S NO PROJECT PLANNING FOR ANY SORT OF OTHER -- I WAS GOING TO BE FACETIOUS AND SAY -- BUT I WON'T BE. THERE'S NOTHING ELSE SORT OF PLANNED APART FROM THOSE TWO ACTIVITIES.
OKAY?
>>DANIEL KARRENBERG: OKAY. SO I TAKE IT THAT WAS MICROSOFT HELPING, TURNING COOPERATE INTO CORROBORATE. OR IS CORROBORATE A NEW WORD --
>>PAUL TWOMEY: I SUPPOSE IT WAS SUPPOSED TO BE COLLABORATE AS OPPOSED TO --
>>DANIEL KARRENBERG: FINE.
>>VINT CERF: NOW WE CAN BLAME BILL GATES.
LET ME TAKE THE QUESTION FROM MOUHAMET AND THEN ONE FROM THE FLOOR.
MOUHAMET.
>>MOUHAMET DIOP: THANK YOU VERY MUCH, VINT.
I WANT TO ASK TWO QUESTION. THE FIRST ONE IS RELATED TO THE SHIFT FROM ONE ITEM IN THE -- ABOUT THE BUDGET, WHEN WE'RE TALKING ABOUT IDN IN THE BUDGET. THE ONLY PLACE IN WHICH I SEE THAT ITEM IS ON THE SECURITY AND STABILITY. THAT'S NOT MY UNDERSTANDING. FOR ME, IT HAVE TO COME UNDER PROMOTE COMPETITION AND CHOICES. AND WE HAVE ANOTHER UNDERSTANDING WHEN WE'RE TALKING ABOUT THAT. AND WHEN I LOOK AT WHAT IS THE AMOUNT OF BUDGET DEDICATED TO THAT ACTIVITY, IT'S VERY LOW. AND I JUST WANT TO KNOW IF THERE IS SOMETHING THAT HAS BEEN CONSIDERED AS A GOOD SIGNAL FROM ICANN TO THE COMMUNITY THAT WE'RE GOING TO SPEND MORE MONEY ON PROMOTING COMPETITION AND CHOICE WHEN WE'RE TALKING ABOUT IDN AND NOT AS A STABILITY AND SECURITY AND STABILITY PURPOSES, BECAUSE WE STAND VERY CLEARLY THAT MIDDLE ENVIRONMENT IS SOMETHING WE HAVE TO WORK ON IT AND TRY TO MAKE THE COMMUNITY MUCH MORE INVOLVED IN SEEING ICANN IS TAKING CARE OF THAT DESIRE.
THE SECOND COMMENT IS ABOUT THE RESERVE FOR THE FUTURE.
I HAVE SEEN IN THE PAST THAT ICANN HAS BEEN TALKING ABOUT SPECIFIC FUND FOR DEVELOPING COUNTRIES OR IN AREAS WHERE THEY HAVE DIFFICULTY TO GET ACCESS. AND I JUST WANT TO ECHO THAT IT'S NOT LIKE BEGGING ANYTHING. IT'S JUST WE ARE IN A VERY AMAZING BUSINESS WHERE IF WE TRY TO PROMOTE THINGS IN AN AREA WHERE WE DON'T HAVE CONNECTIVITY, WE'RE JUST GOING TO STRENGTH OUR COMMUNITY OF INTERNET IN PLACE, LIKE THE ISP, THE REGISTRAR, AND ALL THIS STUFF.
SO IT'S A WIN-WIN SITUATION, AND I'M JUST CURIOUS TO SEE IN THE DYNAMIC OF HAVING RESERVE IN THE APPROACH OF THE BUDGET, I ECHO THAT. I MEAN, LIKE REGISTRAR AND REGISTRY WOULD BE VERY HAPPY TO SEE THIS FUND DEDICATED IN THIS AREA WHERE THEY'RE GOING TO HAVE FUTURE BUSINESS BECAUSE THE POTENTIAL IS THERE.
SO I THINK THAT WE HAVE TO ENFORCE THAT IDEA THAT ICANN CAN HAVE A SPECIFIC DEDICATED FUND TO HAVE THE INTERNET SPREAD OUT IN AREAS WHERE THEY HAVE DIFFICULTIES TO GET ACCESS.
WE DID NOT DISCUSS IN DETAIL WHAT TYPE OF PROGRAM OR WHAT SORT OF ACTION THIS SPECIFIC FUND WILL BE DEDICATED, BUT I REALLY ECHO THAT. IT WAS A GREAT IDEA, AND IT HAVE BEEN ECHO IN A VERY GOOD WAY BY ALL PEOPLE WHO HEARD ABOUT IT, AND I THINK THAT IT'S TIME FOR US TO TRY TO THINK HOW WE CAN PREPARE THIS FUND TO BE CAPITALIZED IN THE NEXT BUDGET COMING FROM NOW. IT WAS JUST A SUGGESTION. THANK YOU.
>>VINT CERF: THANK YOU, MOUHAMET.
JUST FOR CLARITY, THERE ARE SEVERAL THINGS, I THINK, GOING ON HERE AT THE SAME TIME. ONE IS A RESERVE TO MAKE SURE THAT THE ICANN OPERATION HAS SUPPORT IN THE EVENT OF SOME FINANCIAL DIFFICULTY. THESE ARE FUNDS THAT YOU SIMPLY BUILD UP A RESERVE FOR. THEN THERE ARE FUNDS THAT YOU ACCUMULATE FOR SPECIFIC PURPOSES, LIKE THE ONE THAT YOU WERE DESCRIBING. I THINK WE HAVE BOTH OF THOSE THINGS THAT WE NEED TO DO.
>>KURT PRITZ: CAN I ADDRESS MOUHAMET'S EARLIER COMMENT?
>>VINT CERF: YES.
>>KURT PRITZ: YES, I AGREE WITH MOUHAMET THAT IDNS ADDRESS BOTH STABILITY AND, VERY IMPORTANTLY PROMOTING COMPETITION. AND WHEN YOU LOOK AT THE FULL-BLOWN OPERATIONAL PLAN, IDNS ACTUALLY APPEAR UNDER BOTH HEADINGS. AND FOR BREVITY'S SAKE, WHICH MIGHT HAVE BEEN A MISTAKE, I DIDN'T INCLUDE IT THERE.
AS FAR AS THE AMOUNT OF FUNDS, THE FUNDS ALLOCATED FOR IDN DEPLOYMENT THIS YEAR IS FOUR TIMES THAT THAT WAS IN THE BUDGET LAST YEAR. BUT MORE IMPORTANTLY, WE THINK THAT OUR IDN DEPLOYMENT EFFORT IS ACTUALLY MUCH GREATER THAN THE DOLLARS IN THE BUDGET. MANY MEMBERS HERE, THE EXCELLENT WORKSHOP WE HAD YESTERDAY, A LOT OF THAT IS CONTRIBUTED EFFORT FROM MEMBERS OF THE COMMUNITY.
SO BY BEING ECONOMICAL AND ALSO BY THE PASSION OF EVERYBODY HERE ABOUT THAT, WE LOOKED AT THOSE DOLLARS MANY TIMES OVER.
WE ALSO CHALLENGED THE REGISTRY CONSTITUENCY THAT IF WE WERE TO SPEND THAT MONEY WISELY, WE WOULD ASK THE BOARD TO EITHER MAKE A DRAWN CONTINGENCY OR REALLOCATE FUNDS IN ORDER TO PROMOTE THAT GOAL THAT WE ARE SO PASSIONATE ABOUT.
>>VINT CERF: THANKS, KURT. LET ME TAKE QUESTIONS FROM THE FLOOR.
>>JORDYN BUCHANAN: THANK YOU. FIRST OF ALL, JORDYN BUCHANAN WITH REGISTER.COM.
JUST A BRIEF COMMENT FIRST OF ALL, AND THAT IS I NOTE THAT ALTHOUGH THE BUDGET SEEKS TO DIVERSIFY THE REVENUE STREAM, THE REALTY IS, IN THE CURRENT BUDGET, AT LEAST, ALL THE DIVERSIFICATION IS SIMPLY A SHIFT OF FEES FROM REGISTRARS, ESSENTIALLY, TO REGISTRIES, GTLD REGISTRARS TO REGISTRIES, WHICH ULTIMATELY MEANS THAT THE PEOPLE PAYING THE VAST MAJORITY OF THE ICANN BUDGET ARE GTLD REGISTRANTS. SIMPLY MOVING A QUARTER FROM THE REGISTRARS TO THE REGISTRIES CERTAINLY DOESN'T MAKE ME TOO UNHAPPY AS A REGISTRAR. I PAY LESS. BUT ULTIMATELY REGISTRANTS ARE PAYING FUNDAMENTALLY THE SAME PORTION OF ICANN'S BUDGET AS THEY WERE BEFORE.
AND I THINK IT'S IMPORTANT THAT ICANN CONTINUES TO EXPAND ITS ACTIVITIES IN SUPPORT OF A VARIETY OF FUNCTIONS THAT HAVE BEEN REQUESTED AND I THINK ARE VERY USEFUL FOR OTHER PORTIONS OF THE ICANN COMMUNITY, THAT THE DIVERSIFICATION OF THE REVENUE STREAM REFLECT THAT AS WELL.
AND SPECIFICALLY I MEAN, IF ICANN CONTINUES TO PROVIDE SERVICES THAT I HOPE ARE USEFUL TO GROUPS LIKE THE CCNSO AND THE RIRS, THAT THEY WILL CONTINUE TO INCREASE THEIR STAKE IN TERMS OF FINANCIAL CONTRIBUTION TO ICANN AS WELL.
THANK YOU.
>>VINT CERF: THANKS, JORDYN. I THINK WE ALL HOPE FOR MORE BALANCE IN THAT REGARD.
BRET.
>>BRET FAUSETT: I CAME TO THE MICROPHONE JUST AT THE RIGHT TIME. IT'S GOOD TO HERE A REGISTRAR SAY THAT REGISTRANTS PAY MOST OF THE FEES HERE. AND THAT WAS JUST MY POINT. THE LAST POINT ON THE CONSULTATION WAS HOW TO IMPROVE THE BUDGET ADVISORY COMMITTEE CONSULTATION PROCESS. AND I THINK HISTORICALLY, REGISTRIES AND REGISTRARS HAVE BEEN FULLY REPRESENTED ON THAT COMMITTEE AND REGISTRANTS HAVE BEEN RATHER UNDERREPRESENTED ON THAT COMMITTEE. AND CONSISTENT WITH THE STATEMENT THE ALAC MADE YESTERDAY, WE WOULD VERY MUCH LIKE TO SEE NOT ONLY ALAC REPRESENTATION ON THE BUDGET ADVISORY GROUP BUT ALSO OTHER REGISTRANTS. BECAUSE I THINK SOME OF THE QUESTIONS YOU HAVE HAD TODAY ARE COMING FROM REGISTRANTS AND PERHAPS PLUGGING THEM IN EARLIER INTO THE PROCESS WOULD CREATE MORE COMMUNITY BUY-IN IN THE BUDGET PROCESS.
>>VINT CERF: THANKS, BRET. TWO COMMENTS FROM THE BOARD AND THEN I HAVE SEVERAL THINGS I NEED TO DO.
MIKE AND THEN PETER.
>>MICHAEL PALAGE: THANK YOU, MR. CHAIRMAN.
BRET, I WOULD LIKE TO AGREE WITH THE COMMENTS THAT BOTH BRET AND JORDYN HAVE MADE.
AND I SORT OF REFER TO IT AS THE THREE "R'S," THE GTLD THREE R'S, AND THOSE ARE REGISTRIES, REGISTRARS, AND REGISTRANTS.
AND, AGAIN, TO FOLLOW UP ON BRET, WITH REGARD TO THE BUDGET ADVISORY GROUP, IT IS MY HOPE THAT MOVING FORWARD WITH THE STRATEGIC CONSULTATION PROCESS THAT WE'RE GOING TO HEAR FROM LATER ON THIS EVENING, THAT THAT PROCESS WILL TAKE INTO ACCOUNT THOSE THREE R'S WITHIN THE GTLD PROCESS, AS WELL AS ALL ICANN STAKEHOLDERS.
SO I THINK THAT IS SOMETHING IMPORTANT AND SOMETHING THAT WE REALLY NEED TO FOCUS ON, BECAUSE IF, IN FACT, ICANN'S BUDGET IS GOING TO BE INCREASING JUST THROUGH THE GROWTH OF THE INDUSTRY, I THINK IT IS CRITICALLY IMPORTANT THAT THOSE PEOPLE THAT ARE PAYING THOSE FEES OR CONTRIBUTIONS TO ICANN HAVE A VOICE IN HOW THEY ARE ALLOCATED, HAVE A VOICE.
SO THANK YOU.
>>VINT CERF: THANK YOU, MIKE.
PETER.
>>PETER DENGATE THRUSH: THANK YOU, MR. CHAIRMAN.
KURT, I'VE GOT FIVE QUESTIONS, ONE A PROCESS ONE AND FOUR CONTENT ONES.
THE FIRST ONE RELATES TO THE PROCESS OF THE CONSULTATION AND HOW TO IMPROVE THE BUDGET ADVISORY GROUP.
YOU'VE TAKEN ON BOARD ALREADY I THINK THE FINANCE COMMITTEE RECOMMENDATION WE HEARD THIS MORNING THAT THE STAFF SHOULD WORK TO IMPROVE THE EFFICIENCY OF THE BUDGET ADVISORY GROUP.
I WONDER IF YOU COULD GO TO YOUR SECOND OR THIRD SLIDE WHICH ACTUALLY SHOWED THE PROCESS OF CONSULTATION.
BECAUSE I DON'T WANT TO MICROMANAGE THAT AT ALL, BUT I WOULD QUITE LIKE TO HEAR FROM THE MEMBERS OF THE BUDGET ADVISORY GROUP AS TO HOW THEY FEEL ABOUT THE PROCESS AND TO SEE HOW IT CAN BE IMPROVED.
NOW, THE -- THERE DOESN'T SEEM TO ME TO BE SUFFICIENT SORT OF REITERATIVE STEPS -- I DON'T WANT TO MAKE THIS LONGER OR HARDER THAN IT IS, BUT THE REALITY OF THE BUDGET ADVISORY GROUP IS THEY WILL BE PRESENTED AT THEIR FIRST MEETING WITH YOU WITH A HUGE AMOUNT OF INFORMATION.
>>KURT PRITZ: HAGEN HAD MORE DETAIL.
>>PETER DENGATE THRUSH: AND THEY'RE GOING TO HAVE TO GO BACK TO THEIR SOS OR ADVISORY COMMITTEES.
AND THE ANECDOTAL EVIDENCE I GOT FROM THE BUDGET ADVISORY GROUPS MEMBERS THAT I HAVE IS THAT THEY TEND -- AND THIS IS SORT OF INEVITABLE -- TO BE CONFRONTED BY THE FIRST DRAFT OF THE BUDGET, AND THEN, REALLY, TO BE UNABLE TO DO MUCH ABOUT IT FROM THAT STAGE.
HOW DO WE ALLOW THEM, HOW DO WE STAFF THEM OR ASSIST THEM IN ACTUALLY MAKE A USEFUL CONTRIBUTION AT THAT POINT?
>>PAUL TWOMEY: PETER, MAY I RESPOND BECAUSE THE BUDGET ADVISORY GROUP FORMALLY IS A PRESIDENT'S COMMITTEE.
SO I'M PROBABLY THE CLOSEST THING TO A CHAIR TO IT.
LET ME JUST SPEAK TO THE POINT.
THE POINTS YOU'RE MAKING ARE EXACTLY CORRECT.
THAT'S WHAT THE BUDGET ADVISORY GROUP MEMBERS DO FEEL.
WE HAD A -- IN RESPONSE TO THE FINANCE COMMITTEE'S REQUEST, WE HAD A MEETING WITH THE BUDGET ADVISORY GROUP.
THESE MEETINGS BECOME A BLUR -- SOMETIME IN THE LAST 48 HOURS.
AND IN THAT MEETING, RAY PLZAK, I THINK, PUT A VERY GOOD QUESTION ON THE TABLE.
HE SAID THIS IS A PRESIDENT'S COMMITTEE.
WHAT DOES THE PRESIDENT WANT FROM IT?
SO THERE WAS THIS SORT OF "WHAT DO YOU WANT FROM THIS GROUP?"
AND THE SECOND THING TO COME OUT IN THE DISCUSSION WAS A LOT OF THE MEMBERS SAID THIS IS VERY VALUABLE FOR US NOT ONLY TO BE HERE, BUT TO BE SEEN TO BE HERE, IT'S IMPORTANT FOR OUR CONSTITUENCIES, GIVES OUR CONSTITUENCIES A SENSE OF INVOLVEMENT.
I THINK WHAT MOVED OUT OF THAT WAS EXACTLY WHAT YOU POINTED OUT, WAS A SENSE THAT THEY RECEIVE A BUDGET, BUT THEY DON'T UNDERSTAND THE OPERATION- -- TO DATE, TO DATE, THEY RECEIVE A BUDGET, BUT THEY DON'T UNDERSTAND THE OPERATIONAL ASPECTS BEHIND IT.
SO THAT WAS ONE OF THE CONCERNS.
ONE OF THE OTHER THINGS THAT -- TO ANSWER RAY'S QUESTION, THAT WAS CERTAINLY ON MY MIND WAS SEEING WHEN THEY ARE PUTTING IN PLACE A NEW TWO-PART PROCESS FOR STRATEGIC PLANNING, A SIX-MONTH STRATEGIC PLANNING, ROLLING STRATEGIC PLAN CYCLE AND THEN A RESPONSIVE 12-MONTH OPERATIONAL PLANNING CYCLE WHICH THEN GETS CONVERTED INTO DOLLARS AS A BUDGET.
IT CERTAINLY STRUCK ME AS BEING IMPORTANT WAS TO HELP THE PRESIDENT'S STAFF ACTUALLY STRUCTURE, AND ACTUALLY, MORE IMPORTANTLY, HELP THE FINANCE COMMITTEE STRUCTURE THE OPERATIONAL PLANNING PROCESS THAT WE WOULD LIKE TO GET THE ADVICE OF THE BUDGET ADVISORY GROUP MEMBERS THIS COMING YEAR ABOUT HOW TO STRUCTURE THAT OPERATIONAL PLANNING EXERCISE, AND THEN AS AN ASPECT OF IT, TO HAVE THEM ACTUALLY INVOLVED AS LISTENERS TO THAT OPERATIONAL PLANNING EXERCISE AND SEE HOW THAT MEETS.
THAT DOESN'T EXCLUDE OTHERS FROM HAVING INPUT INTO WHAT THEY -- HOW THEY THINK THE OPERATIONAL PLANNING EXERCISE WORKS, BUT IT DOES ACTUALLY -- I THINK IT'S AN IMPORTANT EVOLUTION FOR THE BUDGET ADVISORY GROUP TO BE AN ADVISOR ALSO, I THINK, ON THE PROCESS OF OPERATIONAL PLANNING CONSULTATION COMING INTO THE BUDGET.
>>PETER DENGATE THRUSH: THANK YOU.
I WONDER IF I COULD JUST ASK THE FOUR CONTENT QUESTIONS.
THEY'RE THE SAME AS OTHER MEMBERS HAVE ASKED.
I'M NOT QUITE SURE HOW WE CAN DEAL WITH THIS.
BUT I NEED TO KNOW WHAT THE ACTUAL BUDGET LINES ARE FOR STAFFING OF THE CCNSO, THAT'S 3.4A1, THE COMPLIANCE PROGRAM, I THINK THAT'S 3.4D, THE REGIONAL PRESENCE PROGRAM, THAT'S 3.4C, AND -- SORRY, THE OTHER -- IT'S THE COUNTRY FUND IS 3.4D.
I HAVEN'T GOT THE NUMBER FOR THE COMPLIANCE PROGRAM.
WHERE DO WE FIND THE INFORMATION ON HOW MUCH IS GOING TO BE SPENT ON THOSE?
>>VINT CERF: PETER, DO YOU NEED AN ANSWER ON THE SPOT OR WOULD YOU LIKE THAT TO BE QUEUED UP AS A RESPONSE THAT KURT COULD PROVIDE AS SOON AS THAT'S FEASIBLE?
>>PETER DENGATE THRUSH: I THINK AS A MATTER OF PRACTICALITY, IT HAS TO BE QUEUED UP.
BUT I'M NOT SURE HOW I WILL GET THAT INFORMATION TO THE COMMUNITY IF ANYONE ELSE WANTS TO KNOW ABOUT IT.
>>VINT CERF: WELL, I THINK THAT -- THE NEXT GO-ROUND ON THE PRESENTATION OF THE BUDGET COULD HAVE MORE SPECIFICS OF THE SORT THAT YOU'RE ASKING FOR.
THAT WOULD BE THE OBVIOUS WAY TO DO IT.
PAUL.
>>PAUL TWOMEY: WELL, I THINK THE -- WE ARE -- THE STAFF, AND I'M FAIRLY CERTAIN THE FINANCE COMMITTEE, IS IN TOTAL ACCORD THAT WE DO NEED TO MOVE THIS WAY.
AND AS YOU SAY, FOR THE NEXT ROUND, THIS IS PART OF THE GENERAL IMPROVEMENTS.
I THINK IN CONSULTATION WITH THE FINANCE CHAIR, WE CAN COME BACK ON THOSE SPECIFIC QUESTIONS FOR PETER'S PURPOSES BEFORE TOMORROW, BECAUSE, OBVIOUSLY, HE'S CONSIDERING THAT IN TERMS OF THE BOARD VOTE.
>>VINT CERF: OKAY.
PETER, IS THAT SATISFACTORY?
GOOD.
ALL RIGHT.
THANK YOU VERY MUCH, KURT.
LADIES AND GENTLEMEN, WE ARE ABOUT TO GO FOR A BREAK.
I HAVE THREE THINGS THAT I NEED TO TELL YOU ABOUT BEFORE YOU TAKE YOUR BREAK.
FIRST OF ALL, A REMINDER THAT THE OMBUDSMAN'S ANNUAL REPORT IS IN PRINTED FORM OUTSIDE OF THIS ROOM AT THE ENTRY.
AND FRANK FOWLIE INVITES YOU TO TAKE A COPY, IF YOU WISH.
SECOND, AT NOON TODAY, I WILL CALL FOR A TWO-MINUTE SILENCE IN MEMORY OF THOSE WHO WERE KILLED IN THE LONDON BOMBINGS.
THIS IS A -- I'M SORRY, FRANK -- CARY, WHAT ARE YOU SAYING?
>>CARY KARP: 1:00 P.M.
>>VINT CERF: I'M SORRY, BUT WE DOUBLE-CHECKED IT, AND IT IS NOON HERE.
IS IT NOT TRUE?
NO.
OKAY.
THEN I GOT IT BACKWARDS.
>>ALEJANDRO PISANTY: CARY, IT'S -- THIS HAS BEEN -- THIS IS A CALL THAT GOES ALL OVER EUROPE TO SYNCHRONIZE WITH 12:00, AS YOU CORRECTLY GESTURE, TO SYNCHRONIZE WITH NOON IN LONDON.
WE DECIDED -- VINT AND I AND A FEW OTHERS HAVE DISCUSSED THIS.
AT 1:00, WE WILL NOT BE IN A MEETING, A COLLECTIVE MEETING.
SO WE HAVE DECIDED TO MOVE FOR THIS COMMUNITY TO HOLD THIS TWO-MINUTE SILENCE AT 12:00 IN ORDER TO DO THIS TOGETHER HERE.
AND, OF COURSE, WHEREVER YOU ARE AT 1:00, WHICH PROBABLY WILL BE AT LUNCH, YOU WILL JOIN THE GENERAL EUROPEAN TWO MINUTES OF SILENCE.
I HOPE THIS IS AGREEABLE.
>>VINT CERF: WHOOPS.

(APPLAUSE.)
>>VINT CERF: THANK YOU VERY MUCH, ALEX.
THE THIRD THING THAT I HAVE TO SHARE WITH YOU BEFORE YOU TAKE YOUR BREAK HAS TO DO WITH THE CONCERNS THAT HAVE BEEN RAISED IN DISCUSSIONS IN THIS WEEK ABOUT THE DOT NET AGREEMENTS WITH VERISIGN.
LET ME REPORT TO YOU THAT MARK MCLAUGHLIN FROM VERISIGN CONTACTED PAUL TWOMEY LAST NIGHT AND COMMUNICATED, AND I QUOTE, "IN LIGHT OF THE COMMENTS FROM THE COMMUNITY, VERISIGN IS WILLING TO WORK WITH ICANN STAFF TO ADDRESS THE TWO CONCERNS IN DOT NET, SPECIFICALLY, THE STRUCTURE OF THE PRICE CAP REMOVAL AND THE SECOND, HAVING A LONGER COMMENT PERIOD ON THE REGISTRAR/REGISTRY AGREEMENT, AND NEGOTIATING IN GOOD FAITH ISSUES THAT ARISE WITH REGARD TO THAT AGREEMENT."
SO I THINK THAT'S GOOD NEWS.
I THINK THAT WE HAVE AN OPPORTUNITY NOW TO LOOK MORE CAREFULLY AT THE DOT NET CONTRACT IN THE CONTEXT OF THIS OFFER FROM VERISIGN.

(APPLAUSE.)
>>VINT CERF: SO WITH THAT BIT OF GOOD NEWS, LET ME INVITE YOU TO TAKE A BREAK.
AND RETURN AT 10:50, PLEASE.
(BREAK.)


>>VINT CERF: LADIES AND GENTLEMEN, WE'RE ABOUT READY TO RESTART.
SO IF YOU'LL PLEASE TAKE YOUR SEATS, WE WILL GET GOING WITH THE NEXT PORTION OF THE OPEN FORUM.
BOARD MEMBERS, IF YOU'LL PLEASE TAKE YOUR SEATS.
THE NEXT REPORT COMES FROM OUR OMBUDSMAN, FRANK FOWLIE.
SO, FRANK, PLEASE TAKE THE LECTERN.
>>FRANK FOWLIE: MR. CHAIRMAN, VINT CERF, PRESIDENT PAUL TWOMEY, MEMBER OF THE BOARD OF DIRECTORS AND LIAISONS, ESTEEMED MEMBERS OF THE ICANN COMMUNITY, ICANN STAFF, LADIES AND GENTLEMEN, THANK YOU FOR YOUR WARM WELCOME HERE THIS MORNING.
BONJOUR (SPEAKING IN FRENCH).
IT'S A VERY GOOD PLEASURE FOR ME TO BE HERE THIS MORNING TO BRING YOU THE UPDATE ON THE OFFICE OF THE OMBUDSMAN AND ITS ACTIVITIES.
MR. CHAIRMAN, AS IS REQUIRED BY SECTION 5 OF BYLAW V, I AM PLEASED TO PRESENT TO YOU AND THROUGH YOU TO THE MEMBERS OF THE BOARD AND LIAISONS AND, FINALLY, TO THE ICANN COMMUNITY AS A WHOLE, THE INAUGURAL REPORT OF THE OFFICE OF THE OMBUDSMAN.
AND I'LL TRANSMIT IT AROUND THE TABLE TO YOU THROUGH THE BOARD.
HERE AT THE PUBLIC -- IF YOU COULD JUST PASS IT, PAUL, IT'S ALL THREE VERSIONS.
HERE, AT THE PUBLIC FORUM IN LUXEMBOURG, THE REPORT IS AVAILABLE IN PRINT IN ENGLISH, FRENCH, AND GERMAN.
A SPANISH TRANSLATION WILL BE COMPLETED SHORTLY.
AND THE ANNUAL REPORT WILL BE AVAILABLE AT THE OMBUDSMAN WEB SITE AS A PDF IN ALL FOUR LANGUAGES.
MR. CHAIRMAN, WITHOUT HAVING TO REVERT TO A LARGE NUMBER OF POWERPOINT SLIDES, AS EVERYONE IN THE ROOM SHOULD HAVE A HARD COPY OF THE REPORT IN THE LANGUAGE OF THEIR CHOICE, AND THESE CONTAIN ALL OF THE RELEVANT TABLES, I'D LIKE TO TAKE JUST A MOMENT OR TWO TO GO OVER SOME PERTINENT NUMBERS.
BUT AS ONE OF MY FAVORITE WRITERS, THE AMERICAN MARK TWAIN, ONCE SAID, THERE ARE LIES, DAMNED LIES, AND STATISTICS.
I'D LIKE TO BEGIN MY TALK WITH SOME STATISTICS.
THE OFFICE OF THE OMBUDSMAN HAS RECEIVED AND RESPONDED TO A TOTAL OF 979 CONTACTS, FROM DECEMBER 2004 TO JUNE 30TH, 2005.
NOW, THE ASTUTE OBSERVERS IN THE CROWD WILL HAVE ALREADY NOTICED THIS IS ALREADY NOT QUITE A FULL YEAR TO MAKE UP AN ANNUAL REPORT, BUT IT IS, RATHER, TIED TO THE OPENING OF THE OFFICE TO THE CLOSE OF THE FISCAL YEAR, AND HENCEFORTH, THE OFFICE WILL FOLLOW THE FISCAL YEAR FROM JULY 1ST TO JUNE 30TH.
OF THESE CONTACTS, 850 WERE RELATED TO A RECENT LETTER-WRITING CAMPAIGN THAT DEALT MORE WITH CONTENT ON THE WEB RATHER THAN ANY ACTION TAKEN BY ICANN.
HOWEVER, EACH OF THESE REQUIRED INDIVIDUAL COMPLAINT-HANDLING AND A SEPARATE REPLY.
OF THE 129 CONTACTS TRULY GENERATED BY AND WITHIN THE ICANN COMMUNITY, YOU WILL FIND A NUMBER OF CHARTS WITHIN THE ANNUAL REPORT THAT BREAKS THEM DOWN BY GEOGRAPHIC ORIGIN, THE MONTH THEY WERE GENERATED, THE ISSUE TYPE, AND THE RESOLUTION THEREIN.
THERE WERE 22 COMPLAINTS WHICH FELL DIRECTLY INTO MY JURISDICTION DURING THIS PERIOD, THAT IS TO SAY THAT THEY DEALT WITH AN ACT, A DECISION, OR AN INACTION BY THE ICANN BOARD, STAFF, OR SUPPORTING ORGANIZATIONS.
OF THESE JURISDICTIONAL ISSUES, THERE WAS SUCCESSFUL RESOLUTION OF THE MATTER IN SIX CASES, SYSTEM IMPROVEMENT RECOMMENDED IN TWO, TWO MATTERS WHERE A REFERRAL WAS MADE TO ANOTHER AREA OF THE ORGANIZATION.
IN A SINGLE CASE, THE MATTER WAS MANAGED BY PROVIDING THE CALLER WITH SELF-HELP INFORMATION.
THERE WERE FOUR CONTACTS WHERE, AFTER AN INITIAL INVESTIGATION, NO FURTHER ACTION WAS REQUIRED.
AND IN THREE CASES, I DECLINED JURISDICTION WHERE, AFTER A PRELIMINARY REVIEW, NOTHING FURTHER COULD BE DONE.
TWO CASES WERE UNFOUNDED.
TWO WERE WITHDRAWN.
AND ONE WAS ABANDONED.
MR. CHAIRMAN, I AM PLEASED TO REPORT THAT THIS OFFICE HAS RECEIVED CONTACTS FROM ALL PARTS OF THE WORLD, ALTHOUGH THERE IS A LARGE DENSITY OF CONTACTS FROM THE UNITED STATES OF AMERICA.
IN ORDER TO HELP RAISE THE AWARENESS OF THE OFFICE OF THE OMBUDSMAN ACROSS THE ICANN COMMUNITY, I HAVE INCLUDED OUTREACH AS A KEY ELEMENT OF THIS OFFICE'S ACTIVITIES.
IT IS ALSO IMPORTANT TO ME THAT THE ICANN OFFICE OF THE OMBUDSMAN BE SEEN NOT ONLY AS A PEER IN THE OMBUDSMAN COMMUNITY, BUT AS A CENTER OF EXCELLENCE IN THE DELIVERY OF ONLINE OMBUDSMAN SERVICE.
AS A CENTER OF EXCELLENCE, I AM HAPPY TO REPORT TO YOU THAT THE OMBUDSMAN FRAMEWORK IS NOW AVAILABLE ON THE OMBUDSMAN WEB SITE IN SIX LANGUAGES, MAKING IT MORE AVAILABLE TO THE WORLD AT LARGE.
IN THE ANNUAL REPORT, YOU WILL FIND AN UPDATE ON MY OUTREACH AND PEER ACTIVITIES.
MR. CHAIRMAN, IF YOU WILL PERMIT ME A MOMENT OR TWO, I WOULD LIKE TO GIVE YOU A LITTLE BIT OF AN OVERVIEW OF ONLINE ALTERNATIVE DISPUTE RESOLUTION IN THE ICANN CONTEXT.
IN DEALING WITH MY OMBUDSMAN COLLEAGUES, I AM PRESENTLY UNAWARE OF ANY OTHER OMBUDSMAN WHOSE MAIN POINT OF CONTACT IS THROUGH E-MAIL AS OPPOSED TO BY IN-PERSON OR TELEPHONE CONTACT.
NOW, THERE ARE SOME OBVIOUS ADVANTAGES TO DEALING WITH CONFLICT AND CONDUCTING OMBUDSMANSHIP PRIMARILY THROUGH E-MAIL, ESPECIALLY AS A SOLE PRACTITIONER OFFICE.
FIRST, CONSUMERS HAVE UNIVERSAL ACCESS.
ANYONE FROM ANY TIME ZONE FROM ANYWHERE IN THE WORLD CAN MAKE A COMPLAINT OR CORRESPOND WITH ME AT ANY TIME OF DAY OR NIGHT.
NOW, THAT DOESN'T MEAN THAT I'M GOING TO RESPOND AT ANY HOUR OF THE DAY OR NIGHT.
BUT THEY CAN CERTAINLY GENERATE A CONTACT AT ANY HOUR OF THE DAY OR NIGHT.
SECOND, I'M ABLE TO HAVE A PERMANENT RECORD OF THE COMPLAINT OR CORRESPONDENCE, AND THIS MAKES IT EASY FOR ME TO REFLECT UPON THE INFORMATION LATER ON OR TO USE IT WITH MY INVESTIGATIONS WITHIN ICANN.
THIRD, AND VERY IMPORTANTLY, AS A SOLE PRACTITIONER WHO TRAVELS FREQUENTLY WITH MY DUTIES, MY CLIENT GROUP AND I ARE ALWAYS ABLE TO BE IN TOUCH.
THUS, I AM NOT LIMITED BY THE TRADITIONAL DEFINITIONS OF OFFICE HOUR OR OFFICE LOCATION.
THERE ARE, HOWEVER, SOME DRAWBACKS WITH CONDUCTING OMBUDSMANSHIP OVER THE INTERNET.
BUT NONE OF THESE DRAWBACKS ARE INSURMOUNTABLE.
THE FOUR DRAWBACKS THAT I SEE ARE RELATED ALL TO COMMUNICATION AND THE PRACTITIONER'S ABILITY TO USE HIS OR HER OWN PERSONALITY, SKILL, AND INTUITION TO WORK WITH THESE.
THE FIRST DISADVANTAGE IS THAT MOST COMMUNICATION, AS WE ALL KNOW, IS NONVERBAL.
DEALING WITH A CONTACT IN A COMPLETELY E-MAIL-DRIVEN ENVIRONMENT, WITH NO FACE-TO-FACE DISCUSSION ELIMINATES THIS IMPORTANT ELEMENT.
WITH BODY LANGUAGE, WE CAN INTUIT ANGER, FEAR, TRUTH, DECEPTION, HUMOR.
OF COURSE, THE ADVANTAGE IS THAT AS A NEUTRAL PARTY, I CANNOT BE INFLUENCED BY THESE IN A NEGATIVE SENSE, EITHER BY OVERRELYING ON THE IMPLICIT RATHER THAN THE EXPLICIT MESSAGING IN OUR DISCUSSIONS.
THE SECOND DRAWBACK IS THAT THE USE -- IS THE USE OF LANGUAGE AND ITS INTERPRETATION.
PEOPLE HAVE A TENDENCY TO SPEAK MUCH MORE ABOUT A SUBJECT THAN THEY DO TO WRITE ABOUT IT.
THERE'S A WHOLE SCIENCE WRITTEN AROUND STATEMENT ANALYSIS.
THE USE OF LANGUAGE AND ITS MEANING CHANGES IN CONTEXT WITH CULTURE, AND WITH ITS USE.
DOES THE SKILLED PRACTITIONER KNOW IF THE WRITER IS BEING FUNNY, SARCASTIC, OVERLY FAMILIAR, OR EXPRESSING ANGER?
THE SAME SETS OF WORDS FROM DIFFERENT WRITERS COULD HAVE DIFFERENT CONTEXTS AND MEANINGS, AS COULD THE SAME WORDS FROM THE SAME WRITER AT DIFFERENT TIMES AND UNDER DIFFERENT CIRCUMSTANCES.
THIRD, THERE IS THE QUESTION OF GENERAL LITERACY LEVELS.
WHILE DEALING WITH THE WIDER COMMUNITY, THE SKILLED PRACTITIONER MUST BE COGNIZANT OF THE FACT THAT THE WRITTEN LANGUAGE AND EXPLANATIONS USED HAVE TO BE UNDERSTANDABLE IN MEANING TO THE READER THAT I AM CORRESPONDING WITH.
FINALLY, AND IN THE MOST INCLUSIVE SENSE, AN INTERNET-BASED OMBUDSMAN FACES A DISADVANTAGE IF HE OR SHE LACKS THE INSIGHT TO REALIZE THAT DIFFERENT CULTURES APPROACH DISPUTE RESOLUTION IN DIFFERENT WAYS.
I HAVE SEEN SOME VERY, VERY IN-YOUR-FACE APPROACHES TO ISSUES THAT BY MOST REASONABLE STANDARDS WERE MINIMAL IN NATURE.
ON THE OTHER HAND, BECAUSE OF CULTURE MORES, I HAVE ALSO SEEN OTHER CONFLICTS WHERE THERE HAVE BEEN MUCH MORE SERIOUS ISSUES TO DEAL WITH, BUT WHERE THE COMPLAINANT DID NOT PUSH THE SUBSTANTIVE ISSUE AND WAS MUCH MORE INTERESTED IN DEVELOPING AN ISSUE -- RELATIONSHIP OF TRUST WITH ME AS THE PRACTITIONER FIRST.
IN DIFFERENT CULTURES FROM DIFFERENT COMPLAINANTS, THESE ISSUES WOULD HAVE LIKELY HAVE BEEN BROUGHT TO ME IN MUCH DIFFERENT MANNERS.
THE CHALLENGE FOR THE SKILLED PRACTITIONER IN RESPECTING A DIVERSE, MULTICULTURAL WORLD, IS TO UNDERSTAND THAT THESE DIFFERENCES EXIST AND NOT TO IMPOSE ANY SELF-RELATED RESOLUTION PARADIGMS AS A STARTING POINT.
MR. CHAIRMAN, MY BELIEF IS THAT USING AN OMBUDSMAN AS AN ONLINE NEUTRAL THIRD PARTY FOR CONFLICT RESOLUTION WILL PROVIDE GOOD SERVICE TO A WIDE RANGE OF COMMUNITY-BASED OR CONSUMER-CENTRIC ORGANIZATIONS IN THE YEARS TO COME.
IT IS A PRACTICAL, FLUID, AND RESPONSIVE AND COST-EFFECTIVE WAY TO DEAL WITH CONFLICT.
MR. CHAIRMAN, THAT CONCLUDES MY REPORT.
THANK YOU FOR THE OPPORTUNITY TO ADDRESS THE FORUM THIS MORNING.
(SPEAKING IN FRENCH.)
>>VINT CERF: THANK YOU VERY MUCH, FRANK.
(APPLAUSE.)
>>VINT CERF: I THINK WE'VE BEEN EXTRAORDINARILY FORTUNATE TO FIND SOMEONE OF FRANK'S CALIBER TO SERVE IN THIS ROLE.
I'VE HAD A NUMBER OF COMPLIMENTARY E-MAILS REFERRING TO FRANK'S ABILITY TO CARRY OUT THIS FUNK IN A MOST EVEN-HANDED AND CONSTRUCTIVE WAY.
SO, FRANK, LET ME PUBLICLY THANK YOU FOR THAT.
LET ME ASK IF THERE ARE ANY QUESTIONS FOR FRANK FROM THE BOARD OR FROM THE FLOOR.
THERE'S ONE.
AND, MIKE, DID I SEE YOUR HAND GO UP.
LET'S TAKE THE FLOOR FIRST.
>>MARCUS FAURE: MARCUS FAURE, CORE COUNCIL OF REGISTRARS.
ACTUALLY, A QUICK COMMENT I MADE ON TRANSLATIONS YESTERDAY.
I GRABBED THE GERMAN TRANSLATION OF THE OMBUDSMAN REPORT, AND THE OVERALL FEELING IS PRETTY CLUMSY.
I DON'T THINK IT HAS BEEN DONE BY A NATIVE SPEAKER. AND IT CONTAINS TERMS LIKE "OMBUDSMAN" WHICH I THINK MEANS OMBUDSMAN CODE OF CONDUCT.
BUT WHAT IT SAYS IS OMBUDSMAN ROOTING SYSTEM.
SO TAKE CARE WITH TRANSLATIONS.
>>VINT CERF: BEFORE YOU SIT DOWN, WOULD YOU HAVE THE TIME TO GO OVER THAT AND MAKE SOME SUGGESTIONS SO THAT WE CAN FIX IT?

(LAUGHTER.)
>>MARCUS FAURE: WELL, I TOLD YOU YESTERDAY THAT MY PERCEPTION IS THAT THE OUTREACH OF ICANN WILL NOT IMPROVE BY PUTTING OUT DOCUMENTS IN OTHER LANGUAGES WHICH THE QUALITY IS PRETTY CLUMSY, I HAVE TO ADMIT THAT.
SO RIGHT NOW WE LIVE IN A WORLD WHERE THE INTERNET IS ENGLISH.
AND I'M AFRAID IT WILL TAKE A LONG TIME UNTIL THAT CHANGE CHANGES, AND I DON'T THINK ICANN WILL BE THE ONE TO CHANGE THAT, I'M AFRAID SO.
>>VINT CERF: OKAY.
I JUST THOUGHT I'D ASK.

(APPLAUSE.)
>>VINT CERF: OH, WELL.
THAT'S A VERY INTERESTING APPLAUSE, COMING FROM OUR NATIVE GERMAN SPEAKER ON THE BOARD.
MIKE.
>>MICHAEL PALAGE: JUST A COUPLE OF POINTS.
AS A PARTICIPANT IN THE EVOLUTION AND REFORM PROCESS A COUPLE OF YEARS AGO, I WAS SOMEWHAT SKEPTICAL OF THE ROLE THAT THE OMBUDSMAN WOULD PLAY.
I'M HAPPY TO SAY THAT MY INITIAL SKEPTICISM HAS PROVEN WRONG.
I THINK THE OMBUDSMAN HAS BECOME PART OF THE BEDROCK OF THIS INSTITUTION.
AND I LOOK FORWARD TO FRANK'S ROLE.
AND, AGAIN, JUST TO SHOW YOU HOW FRANK IS OUT THERE SUPPORTING THE COMMUNITY, LAST NIGHT DURING THE SOCCER TOURNAMENT, HE ACTUALLY DID GET INVOLVED IN PROVIDING SOME OMBUDSMAN-LIKE INPUT INTO A DISPUTE BETWEEN TWO OF THE COMPETING TEAMS.
SO, AGAIN, THIS IS A POSITIVE.
REGARDING MARCUS'S COMMENT ABOUT THE TRANSLATION, I THINK ONE OF THE REASONS HAGEN WAS CLAPPING IS -- WELL, I'LL LET HAGEN SPEAK TO THAT.
I THINK IT IS IMPORTANT THAT THIS ORGANIZATION TRY TO INCREASE ITS COMMUNICATIONS.
AND WHAT I WOULD ENCOURAGE MARCUS TO DO IS POSSIBLY WORK WITH FRANK IN SORT OF FUTURE RELEASES TO DO THAT.
I THINK WHEN YOU LOOK AT WHAT THE OMBUDSMAN OFFICE HAS DONE IN PRODUCING THESE REPORTS IN THE MULTIPLE LANGUAGES, I THINK THAT'S, IF YOU WILL, DURING THE PERIOD OF TIME HE'S DONE MORE THAN PROBABLY ANY OTHER DEPARTMENT OR -- DEPARTMENT HEAD HAS DONE WITHIN ICANN IN THAT AREA.
SO THAT'S A POSITIVE.
AND I THINK THAT IS CONSISTENT WITH THE EFFORTS OF THE ORGANIZATION OVERALL IN ITS COMMUNICATION AND OUTREACH.
SO IS IT PERFECT?
NO.
IT MAY BE CLUMSY.
BUT I STILL THINK IT'S STEPS IN THE RIGHT DIRECTION.
AND, AGAIN, POSSIBLY, MARCUS, IF YOU COULD WORK WITH THE OMBUDSMAN TO MAKE A MORE QUALITY DOCUMENT, I THINK THE ENTIRE COMMUNITY, PARTICULARLY THE GERMAN COMMUNITY, WOULD BENEFIT BY THAT.
>>VINT CERF: JUST ON MARCUS'S BEHALF, I THINK HE MADE IT PRETTY CLEAR THAT HE DOESN'T BELIEVE IN THIS.
SO I'M NOT GOING TO PRESSURE HIM ANY FURTHER.
BUT I DO TAKE THE POINT, MIKE.
ARE THERE ANY OTHER QUESTIONS FOR FRANK?
IF NOT, ONE OBSERVATION, FRANK, ABOUT THE -- LAST NIGHT'S RENDERING OF ASSISTANCE.
I CAN ONLY REPORT SECONDHAND THAT THE QUESTION RELATED TO A SOCCER PROBLEM AND THE RESPONSE WAS GIVEN IN THE CONTEXT OF RULES OF HOCKEY.
>>FRANK FOWLIE: INDEED.
>>VINT CERF: SO I DON'T QUITE KNOW WHAT TO MAKE OF THAT.
BUT APPARENTLY IT SATISFIED EVERYONE.
SO CONGRATULATIONS.
>>FRANK FOWLIE: YOU ALWAYS GO WITH WHAT YOU KNOW, MR. CHAIRMAN.
>>VINT CERF: THANK YOU VERY MUCH, FRANK.
OUR NEXT REPORT COMES FROM TINA DAM, AND IT IS ON IDN, INTERNATIONALIZED DOMAIN NAMES.
THERE'S BEEN A FAIRLY SIGNIFICANT AMOUNT OF IDN DISCUSSION DURING THIS WEEK.
SO I LOOK FORWARD NOW TO SEE WHAT SUMMARY WE CAN GET FROM TINA.
>>TINA DAM: THANK YOU VERY MUCH.
THIS WEEK HAS CERTAINLY HAD LOTS OF DIFFERENT DISCUSSIONS ON IDNS.
AND THE RESULTS FROM THE WORKSHOP YESTERDAY, I THINK, ARE REALLY EXCITING.
BUT TO SEE ALL OF THE DIFFERENT GROUPS IN THE COMMUNITY TO GET TOGETHER AND WORK TOWARDS COMMON GOALS TO MAKE SURE THAT THERE IS THE CHOICE FOR THE END USER IN THE RIGHT WAY FORWARD ON IDNS IS VERY EXCITING.
I'M GOING TO GET BACK TO SOME OF THE RESULTS FROM THIS WEEK.
BUT FIRST, SOMETHING THAT ONCE IN A WHILE HAS CAUSED A LITTLE BIT OF CONFUSION IN THE COMMUNITY IS, WHAT IS ICANN'S RESPONSIBILITIES IN RELATION TO IDNS AND WHY DOES THESE THINGS NOT WORK FAST ENOUGH COMPARED TO OTHERS?
SO THIS IS A FIRST SHOT AT TRYING TO MAKE THAT A LITTLE BIT CLEARER.
AND WE'RE GOING TO BE WORKING AT DEFINING ICANN'S RESPONSIBILITIES A LITTLE BIT BETTER.
ICANN'S ROLE IN IDNS RELATES TO DETAILS OF GTLD REGISTRY IMPLEMENTATION OF IDNS, SPECIFICALLY, ON DISCUSSIONS OF ISSUES THAT AFFECT THE INTEROPERABILITY OF THE INTERNET'S UNIQUE IDENTIFIER SYSTEM, AND IMPLEMENTATION OF IDN AT THE TOP LEVEL.
SOME OF THE THINGS THAT WE DO NOT DO SPECIFICALLY AT ICANN AS THE ORGANIZATION IS WORKING TO GET LOCAL CONTENT, LANGUAGE DEFINITIONS, MATCHINGS OF SCRIPTS AND APPLICATION SOFTWARE.
NOW, I THINK THOSE OF YOU WHO HAVE FOLLOWED THE IDN WORKSHOPS PREVIOUSLY HAVE SEEN THAT WHAT WE USUALLY TALK ABOUT IS INTERNATIONALIZATION OF THE INTERNET.
AND IN ORDER TO REACH THAT GOAL, WE NEED TO GET ALL OF THESE THINGS DONE.
BUT JUST TO CLARIFY A LITTLE BIT ABOUT WHERE ICANN'S DIRECT ROLE IS, THESE AREAS ARE CERTAINLY OVERLAPPING, AND WE'LL GET BACK WITH SOME MAYBE EVEN CLEARER DEFINITIONS AT A LATER STAGE.
SO WHAT DOES IT REALLY MEAN THAT WE HAVE THESE LEVEL OF RESPONSIBILITIES?
ICANN'S ROLE AND GOALS ARE -- AND THIS IS NOT A PRIORITIZED LIST -- BUT IDNS GUIDELINES AND AUTHORIZATION TO THE GTLD REGISTRIES, WHICH HAS TAKEN PLACE IN A GREAT NUMBER OF THE EXISTING GTLDS; THE IANA REGISTRY FOR LANGUAGE TABLES, WHICH ALSO NEEDS A REVISION.
WE NEED POLICY DEVELOPMENT PROCESS OR PROCESSES FOR GTLD IDNS.
AND IMPLEMENTATION -- AND WE ALSO HAVE ROLES IN RELATION TO IMPLEMENTATION ISSUES FOR INTERNATIONALIZED TOP-LEVEL DOMAINS.
SO HOW DO WE DO THAT?
WELL, WE HAVE THE WORKSHOPS.
WE PARTICIPATE IN THE IAB, IETF, BROWSER COMMUNITY, THE GAC, THE CCNSO, AND OTHERS, OTHER PARTS OF THE COMMUNITY.
AND IN THOSE AREAS WHERE WE DON'T HAVE THE EXPERTISE OR THE MANDATE, WE SEEK PARTNERSHIPS IN VARIOUS PARTS OF THE COMMUNITY WHERE THAT EXPERTISE IS TO BE FOUND.
THE IDN WORKSHOP IN LUXEMBOURG, WHICH WAS YESTERDAY, HAD TWO MAIN TOPICS.
FIRST THERE WAS A PANEL DISCUSSING THE REVISION OF THE IDN GUIDELINES.
AND THIS WAS A FIRST STEP TO ALLOW SPECIFIC EXPERTS TO PROVIDE THEIR INPUT AS TO HOW THEY THINK THESE GUIDELINES SHOULD BE REVISED.
THE GTLD REGISTRIES HAVE REQUESTED THAT REVISION, AND I ALSO BELIEVE THAT IT'S IN TIME TO USE THE EXPERTISE AND EXPERIENCE IN IMPLEMENTING GTLDS AND GET A BETTER SET OF GUIDELINES MOVING FORWARD.
THE SECOND HALF WAS IN RELATION TO INTERNATIONALIZED TOP-LEVEL DOMAINS SO THAT THE ENTIRE STRING OF A DOMAIN NAME WILL BE IN LOCAL CHARACTERS.
AND THAT WAS A PANEL DISCUSSION TO GET -- DETERMINE SOME OF THOSE ISSUES AND THINGS THAT HAVE TO BE WORKED OUT IN RELATION TO IDNS AT THE TOP LEVEL AND TO TALK ABOUT DIFFERENT PROCESSES AND HOW WE'RE GOING TO MOVE THAT FORWARD.
IN VANCOUVER, WE INTEND THAT SPECIFICALLY THE AREA OF INTERNATIONALIZED TOP-LEVEL DOMAINS IS SOMETHING THAT'S GOING TO BE SPENT QUITE SOME TIME ON.
SO WE'LL BE WORKING TOWARDS THAT GOAL.
MEANWHILE, THE REVISION OF THE IDN GUIDELINES HAD ACTUALLY SOME VERY SPECIFIC RESULTS WHICH I WOULD LIKE TO PRESENT TO YOU HERE.
THE GTLD REGISTRY CONSTITUENCY MET EARLIER THIS WEEK AND SPENT QUITE SOME TIME IN GETTING TOGETHER ON A SPECIFIC STATEMENT ON HOW THEY ARE INTENDING TO MOVE FORWARD.
THEY AGREED ON A COMMITMENT TO SERVE THE NEEDS OF THE COMMUNITIES DESIRING ONLINE IDENTITIES, WITH THOSE COMMUNITIES' CHOICE OF CHARACTER AND SCRIPTS.
SO THAT'S A COMMITMENT TO SERVE THE MARKET DEMAND.
IN RELATION TO REVISION OF THE GUIDELINES, THEY AGREED THAT IN THOSE PLACES WHERE LANGUAGE TABLES EXIST, THEY'LL FOLLOW THE AUTHORITATIVE LANGUAGE TABLES WHEN THOSE EXIST.
WHEN THERE IS NO SUCH TABLES, THEY AGREED THAT THEY WILL NOT PERMIT COMMINGLING OF SCRIPTS IN A DOMAIN NAME LABEL. AND WHAT THAT BASICALLY MEANS IS IN THE GTLDS THEY WILL NOT ALLOW THE MIXING OF TWO OR MORE SCRIPTS, WHICH I THINK IS A VERY BIG STEP FORWARD.
ALSO, WHEN IT COMES TO DEVELOPMENT OF THE LANGUAGE TABLES, THEY DECIDED TOGETHER TO SEEK FUNDING AND APPROPRIATE AUTHORITATIVE BODIES TO ASSIST WITH DEVELOPMENT OF THE TABLES. BUT ONE THING THAT WAS VERY CLEAR AND A KEY POINT FROM THE GTLD REGISTRIES IS THAT WE NEED SOME DECISION ON WHO ARE THE AUTHORITATIVE BODIES WHO CAN DEVELOP THESE TABLES IN THE DIFFERENT REGIONS OF THE WORLD.
BUT I THINK THIS WAS A VERY STRONG STATEMENT FROM THE REGISTRIES.
THE PANEL YESTERDAY ACTUALLY MOVED THIS A LITTLE BIT FURTHER IN DISCUSSING THE POTENTIAL OPTION FOR NOT BEING SO SPECIFIC ABOUT WHAT IS A G ISSUE IN RELATED TO IDNS AND WHAT IS A CC BUT MERGING THEM A LITTLE BIT MORE TO SERVE THE END USER. THERE WERE INITIAL DISCUSSIONS ABOUT MOVING TOWARDS BCP, AND THAT IS SOMETHING WE WILL CONTINUE HAVING DISCUSSIONS ABOUT.
BUT THE WORKSHOP RESULTS -- AND I'M GOING TO BASICALLY READ THIS OUT. THIS HAS BEEN PROVIDED BY THE PANEL MEMBERS AT THE WORKSHOP, AND LET ME JUST MENTION THE PARTICIPANTS YESTERDAY. WE HAD THE MODERATOR, GREAT PLEASURE TO CARY KARP FROM DOT MUSEUM, WE HAD MICHAEL EVERSON, CONSIDERED LINGUIST EXPERT, MICHEL SUIGNARD FROM MICROSOFT AND UNICODE CONSORTIUM, WE HAD CLAUDIO MENEZES FROM UNESCO, AND FROM THE GTLD CONSTITUENCY WE HAD RAM MOHAN FROM AFILIAS AND PAT KANE FROM VERISIGN.
AND I KNOW YOU'LL NOTICE THERE WERE A COUPLE OF CONSTITUENCIES, THE SUPPORTING ORGANIZATIONS AND WORKING GROUPS, WHO WERE NOT ON THIS LIST. THEY WERE INVITED BUT SOMETIMES IT'S DIFFICULT, DUE TO TRAVEL OR CONFLICT IN SCHEDULE ARRANGEMENTS, TO HAVE EVERYBODY ON BOARD.
IN ANY EVENT, THESE PEOPLE, AND CERTAINLY MANY OTHERS, DESERVE GREAT APPLAUSE FOR THE WORK THEY HAVE DONE THIS WEEK IN MANY MEETINGS.
LET ME GET BACK TO THE RESULTS.
THE IDN WHOP PANEL AGREED THAT THE REVISION OF THE CURRENT SET OF ICANN GUIDELINES FOR THE IMPLEMENTATION OF INTERNATIONALIZED DOMAIN NAMES SHOULD BE BASED ON THE FOLLOWING PRINCIPLES. SINCE IDN MAY APPEAR ON ANY LEVEL IN ANY DOMAIN, ONE, A DOCUMENT IS NEEDED THAT, IN CLEAR, UNAMBITIOUS LANGUAGE DESCRIBES THE CONDITIONS AND CONSIDERATION WHICH ATTACH TO THE RESPONSIBLE IMPLEMENTATION OF IDN AS IT MAY BE APPLIED IN ALL SUCH CONTEXT. AND TWO, THE SUCCESSOR DOCUMENT TO THE CURRENT GUIDELINES MUST MAXIMIZE THE ABILITY OF A REGISTRY TO SUPPORT IDN IN ALL REGARDS WHERE IT IS REASONABLE NEEDED AND MUST MINIMIZE THE ABILITY FOR THE ABUSE OF IDN FOR DECEPTIVE PURPOSES.
AND FINALLY, THREE, POLICIES BASED ON SCRIPT ARE NEEDED IN ADDITION TO THOSE BASED SOLELY ON LANGUAGE, AND DEVELOPING SCRIPT-BASED POLICIES SHOULD BE AN IMMEDIATE FOCUS OF ACTION.
SO YOU WILL SEE THAT THE WORKSHOP RESULTS IS OVERLAPPING AND AGREEING QUITE A DEAL WITH WHAT THE GTLD REGISTRIES ARE DOING. AND I THINK THIS IS A MAGNIFICENT STEP FORWARD.
MOVING EVEN FURTHER FORWARD, THE PANEL HAS AGREED THAT THEY WILL FUNCTION SORT OF AS AN INFORMAL, IF THIS IS SOMETHING WE'RE GOING TO AGREE ON, AN INFORMAL WORKING GROUP TOGETHER WITH THOSE MEMBERS OF THE COMMUNITY THAT WASN'T ABLE TO SIT ON THE PANEL YESTERDAY BUT WHO WERE INVITED TO MAKE SURE EVERYBODY'S POINT OF VIEW IS REFLECTED. AND THAT INFORMAL GROUP WILL BE WORKING ON A DRAFT REVISION OF THE GUIDELINES WHICH LATER, THEN, CAN BE PUBLISHED FOR COMMENTS AND MAKE SURE THE ENTIRE ICANN COMMUNITY, AND IN ADDITION, THOSE OUTSIDE WHO HAVE AN INTEREST, CAN PROVIDE THEIR INPUT BEFORE WE MOVE TO A FINAL VERSION FOR THIS PART OF THE REVISIONS.
SO THOSE ARE OUR PLANS MOVING FORWARD, AND THAT CONCLUDES MY REPORT FOR TODAY.
>>VINT CERF: THANK YOU VERY MUCH, TINA.
I WANT TO UNDERSCORE THE POINT THAT WAS MADE ABOUT THE FACT THAT IDNS COULD OCCUR OR APPEAR AT ANY LEVEL IN THE DOMAIN NAME SYSTEM. WHAT THIS MEANS IS THAT THE UNIVERSE OF PEOPLE WHO NEED TO UNDERSTAND AND KNOW ABOUT RESTRICTIONS ON THE USE OF CERTAIN SYMBOLS IN THE REGISTRATIONS -- OR IN THE DOMAIN NAMES IS MUCH BROADER THAN THE REGISTRARS AND THE REGISTRIES. PEOPLE WHO ARE RUNNING SOFTWARE THAT THEY HAVE ACQUIRED FROM THE OFF-THE-SHELF COMMUNITY OR FROM OPEN-SOURCE COMMUNITY ARE GOING TO BE USING THIS SOFTWARE IN ORDER TO CREATE DEEPER HIERARCHY IN THE DOMAIN NAME SYSTEM. THEY WILL NEED TO BE COGNIZANT OF THESE RESTRICTIONS, OR THEY WILL INTRODUCE THE PROBLEMS IN THE HIGHER ELEMENTS OF HIERARCHY THAT WE ARE TRYING TO ELIMINATE IN THE TOP LEVEL AND IN THE SECOND LEVEL.
SO WE HAVE A FAIRLY LARGE COMMUNITY TO EDUCATE AND TO SUPPORT, IN MY OPINION.
I SEE AMADEU HAS HIS -- IS STANDING IN FRONT, AND THEN MOUHAMET.
SO AMADEU HAS HIS HAT ON. WHICH HAT ARE YOU WEARING?
>>AMADEU ABRIL I ABRIL: THIS ONE IS THE HAT, CHAIR OF THE IDN COMMITTEE FOR PIR, THE DOT ORG REGISTRY. AND AS SUCH, I HAVE A SHORT AND SPECIAL REQUEST FOR THE BOARD. WE HAVE ANNOUNCED THAT ON JULY 23RD WE WILL BE LAUNCHING IDNS IN SEVERAL LANGUAGES, LANGUAGES WHICH LANGUAGE TABLES HAVE BEEN DEVELOPED BY THE CCTLDS AND THEY ARE REGISTERED WITH IANA.
WE ARE FOLLOWING THE GUIDELINES TO -- THERE ARE THREE PRINCIPLES. THE PROBLEM IS FOR SOME UNKNOWN REASON, IANA HAS CEASED TO PUBLISH THESE LANGUAGE TABLES. THE REASON SEEMS TO BE, AS TINA SAID, THERE IS A NEED FOR A REVIEW OF THE PROCESS FOR REGISTERING THESE TABLES. BUT MY ADVICE IS IN THE MEANTIME, PLEASE PUBLISH THEM AS YOU GET IT. AND IF THERE IS A NEED FOR A REVIEW, A NEED FOR A RESUBMISSION, IT WILL BE DONE. BUT IT IS HIGHLY CONFUSING THAT WE ARE TRYING TO FOLLOW THIS PROCEDURE, THAT WE ARE TRYING TO PUBLICIZE WHICH ARE THE CRITERIA IN THE CHARACTER SETS, AND THEN THE TABLES ARE NOT AVAILABLE.
>>VINT CERF: LET'S LET TINA RESPOND TO THAT.
>>TINA DAM: FIRST, I AM FULLY AWARE THAT PIR HAVE THE PLANS OF LAUNCHING IDN'S IN DIFFERENT LANGUAGES LATER THIS MONTH. IT APPEARS TO ME THAT THE TABLES HAVE NOT BEEN SUBMITTED TO THE ADDRESS THAT GOES IN IANA. THEY HAVE BEEN SUBMITTED TO ME, BUT I DIDN'T UNDERSTAND IT AS A MEANS TO PLEASE POST THESE BECAUSE WE HAVE A FORMAL PROCEDURE FOR THAT. SO I TALKED TO SOME OF YOUR COLLEAGUES FROM PIR YESTERDAY AND AGREED THOSE WOULD BE POSTED AS SOON AS POSSIBLE.
>>AMADEU ABRIL I ABRIL: OKAY. THANKS.
BY THE WAY, IT WAS NOT PIR WHO SUBMITTED THE LANGUAGE TABLES, AS I UNDERSTAND, BUT MUCH MORE THE DECISION OF THE DEVELOPER.
ANYWAY, THAT WAS A SPECIAL REQUEST, THAT'S SOLVED, THAT'S PERFECT.
NOW, THE SECOND ONE IS WITH A DIFFERENT HAT. AND THIS IS THE .CAT HAT. AND THAT'S SOMETHING I WILL NOT ENTER INTO THE CONTRACTUAL ISSUES HERE, BUT A GENERAL QUESTION THAT WILL DROP ON YOUR TABLE, THAT WILL FOLLOW THINGS LIKE THAT.
ICANN IS MOVING FROM A SYSTEM -- YOU KNOW, COLLECTING THINGS FROM REGISTRARS WHICH IS BASED MORE ON REGISTRY BASED FEE FOR TRANSACTION AND BASED ON DOMAIN NAME, AND DOMAIN NAME BEING WHAT'S ON THE DATABASE, NOT WHAT'S IN THE ZONE. WHICH IS PERFECTLY SENSIBLE. I WILL NOT CHALLENGE THAT.
THE UNINTENDED CONSEQUENCE OF THIS MIGHT BE THAT YOU TRY TO BE VERY CAREFUL IN DEFINING IDNS, YOU MAY END UP WITH LONG LIST OF VARIANTS FOR A SINGLE DOMAIN NAME THAT YOU EFFECTIVELY REGISTER AND SOMEBODY USES.
BUT MANY OTHERS ARE IN YOUR DATABASE. IN CASES LIKE CATALAN, THERE ARE JUST SOME NAMES FOR EACH DOMAIN NAME THAT IS ACTIVATED AND USED. IN SOME OTHER LANGUAGES, THERE MAY BE HUNDREDS, I'M TOLD THOUSANDS OF DIFFERENT VARIATIONS OF EXACTLY THE SAME DOMAIN, WHICH I REPEAT IS SOMETHING WHICH MAY HAVE A REALLY STRANGE CONSEQUENCE ON HOW THE REGISTRIES WILL CONFRONT THE ISSUE OF IDNS.
SO IT'S SOMETHING THAT I THINK THAT THE BOARD SHOULD DEAL WITH PROMPTLY.
THE LAST QUESTION, JUST WITH MY ICANN T-SHIRT ON, IS REGARDING WHAT TINA SAID AND THE REGISTRIES ARE SAYING ABOUT AUTHORITATIVE SOURCES OF LANGUAGES, I HOPE THAT WE DON'T TRY TO REINVENT THE WHEEL. THE APPLIED LINGUISTS KNOW ABOUT THAT, AND THERE ARE MORE OR LESS QUITE WELL-ESTABLISHED LISTS ABOUT AUTHORITATIVE SOURCES FOR MOST OF THE LANGUAGES FOR WHICH IDNS ARE BEING PROVIDED NOW OR WILL BE PROVIDED IN THE NEAR FUTURE.
SO I HOPE THAT WE WILL MORE REFER TO WHAT'S OUT THERE THAN TRYING TO ESTABLISH A COMMITTEE THAT WILL DECIDE LANGUAGE BY LANGUAGE WHICH IS THE AUTHORITATIVE SOURCE.
>>VINT CERF: THANK YOU VERY MUCH, AMADEU. I THINK I UNDERSTOOD TINA TO HAVE SAID THAT THEY WOULD LOOK FOR APPROPRIATE AUTHORITIES, NOT CREATE NEW COMMITTEES ON LANGUAGE-SPECIFIC MATTERS.
MOUHAMET HAD HIS HAND UP, AND THEN I'LL TAKE ANOTHER RESPONSE FROM THE FLOOR.
>>MOUHAMET DIOP: THANK YOU, VINT.
I'M GOING TO JUMP ON THE TECHNICAL ISSUE THAT WE HAVE ALREADY DISCUSSED DURING THE FORUM.
I HAVE BEEN MORE FOCUSED ON ANOTHER AREA WHERE WE NEED TO HAVE THE SAME APPROACH THAT WE HAVE WITH THE STRAT PLAN.
THE DIFFICULTY WITH IDN IS WE ALWAYS TALK ON A TECHNICAL -- JUST WE TRY TO BE FOCUSED ONLY ON THE TECHNICAL THING, AND FORGET THAT WE'RE DEALING WITH AN ISSUE THAT IS MUCH MORE COMMUNITY RELATED AND MARKET RELATED. AND IF WE DID NOT TRY TO BALANCE THESE TWO POINTS OF VIEW, WE'RE GOING TO MISS SOMETHING VERY IMPORTANT.
IF YOU LOOK AT THE STUDY THAT HAVE BEEN DONE, FOR EXAMPLE, ON THE DOMAIN NAME HIJACKING, IT'S SOMETHING THAT JUST GO ACROSS ALL THE DOMAIN NAME SPACE, AND IT WAS A VERY -- WE THANK STEVE FOR DOING THAT JOB, JUST TO HIGHLIGHT THE DIFFICULTIES THAT THE REGISTRANT WILL HAVE, BECAUSE IT'S NOT SOMETHING THAT DEAL DIRECTLY WITH THE REGISTRY AND THE REGISTRAR.
SO I THINK THAT WE NEED TO HAVE THE SAME APPROACH OF IDN. WE NEED TO UNDERSTAND THE MARKET.
SOMETIME WE -- WE NEED A VERY STRONG AND GOOD ASSESSMENT OF WHAT THE MARKET OF IDN IS, AND WE DON'T HAVE IT.
SO YOU HEAR SOMETIMES SOME COMMENT LIKE NOBODY CAN JUSTIFY BY THE MARKET, BUT WE NEED, AS -- IN ICANN, TO HAVE A BETTER UNDERSTANDING OF WHAT THE MARKET NEEDS AND TO HAVE A BETTER ASSESSMENT OF WHAT THE COMMUNITY IS EXPECTING FROM IT.
AND TO BE HONEST, WE DID NOT SEE THAT -- THAT JOB BE DONE BEFORE, BECAUSE WE -- SOMETIME WE JUST MORE FOCUSED ON A CONSERVATIVE APPROACH, AND I AGREE THAT WE NEED TO TAKE CARE OF THIS INFRASTRUCTURE AND TRY TO AVOID TO INTRODUCE ANYTHING THAT'S GOING TO SPOIL THAT HAVE ALREADY BEEN INVEST AND SET UP IN PLACE FOR MANY YEARS.
BUT IF YOU HEARD THE COMMUNITY, WHAT THEY'RE EXPECTING FROM ICANN IS TRY TO BE MORE OPEN TO WHAT PEOPLE SUGGEST.
IF WE JUST BIND THE EVOLUTION OF OUR DISCUSSION TO SOME INFORMAL PROCESS IN WHICH YOU ONLY HAVE TECHNICAL STAFF, WE WILL GET A PROBLEM TO MOVE FORWARD BECAUSE IT'S JUST LIKE THE TECHNICAL PEOPLE WILL TRY TO BIND ALL THE EVOLUTION OF A CONCEPT THAT IS MUCH MORE MARKET RELATED AND COMMUNITY RELATED TO SOME CONSTRAINT THAT WE ALREADY HAVE SEEN SOME SOLUTION POINTED OUT.
AND WE NEED TO PUT THE IDN BACK IN ITS CONTEXT, LIKE SOMETHING THAT IS A MARKET NEED, AND WE HAVE TO UNDERSTAND IT AS A MULTILINGUAL APPROACH OF THE INTERNET AND TO HAVE A BETTER -- I MEAN A MORE INCLUSIVE APPROACH OF THE INTERNET FOR MORE COMMUNITIES.
AND I THINK THAT IF YOU DO THAT, WE HAVE TO DEFINE, AS WE DID IT FOR THE STRATEGY PLAN THAT, WE NEED TO REALLY SEE WHERE WE CAN HAVE INPUT COMING FROM, NOT ONLY FROM INFORMAL DISCUSSION WITH TECHNICAL PEOPLE, BUT ALL THE OTHER PEOPLE THAT HAVE SOME INTEREST IN IT AND WHO CAN GIVE GUIDANCE TO ICANN TO HAVE A BETTER PROCESS NEED TO BE DONE.
SO WE NEED TO DISCUSS ON THE PROCESS OF GETTING INPUT FOR IDN DISCUSSION INSIDE ICANN.
AND MY IMPRESSION IS WE DID NOT THINK A LOT ABOUT THE PROCESSING ITSELF BECAUSE THE DISCUSSION WE'RE HAVING BETWEEN THE TECHNICAL PEOPLE HERE, LIKE THE LANGUAGE, IT'S JUST LIKE BEING AROUND A SALON AND TAKING TEA AND DRINKING AND WAITING FOR -- AND TRYING TO UNDERSTAND FROM OUR OWN PERSPECTIVE. I THINK WE NEED TO BE MORE FOCUSED ON THE PROCESS, TRYING TO DEFINE IT, AND TO GIVE INPUT FOR COMMUNITY WHO HAVE GREAT INTEREST IN THAT TO GIVE INPUT THAT'S GOING TO BE STRUCTURED AND MAKE THE DISCUSSION MOVING FORWARD.
AND I DID NOT FEEL THAT WE REALLY WORK ENOUGH ON THE PROCESS. I'M NOT TALKING ABOUT THE CONTENT. THE CONTENT, WE DID A GREAT JOB ON THE TECHNICAL SIDE BUT LESS ON UNDERSTANDING WHAT THE MARKET IS EXPECTING FROM US AND WHAT THE COMMUNITY ARE EXPECTING FROM ICANN TO HELP IN THE EVOLUTION OF THE IDN.
WE SEE A LOT OF STUFF DEPLOYING ON THE CCTLD. SO WE NEED, AS AN ICANN STRUCTURE, TO GATHER ALL THIS EXPERIENCE. BEST PRACTICE OR GUIDELINE ON HOW TO IMPLEMENT IT. AND I THINK THAT'S PART WHAT HAVE ICANN WILL HELP THE COMMUNITY TO STRUCTURE THE DEBATE ON IDN AND NOT LET ANY CC TO DO THE JOB THEY WANT TO DO ON IT. AND MAYBE FOR EXAMPLE GIVE -- WE HAVE GUIDELINE FOR THE GTLD, AND I THINK THAT THE GTLD IS FOLLOWING THESE PRINCIPLES IN THE IMPLEMENTATION OF IDN. BUT ON THE CC SIDE WE DID NOT SEE AN APPROACH IN WHICH ICANN WILL HELP THE CC, I MEAN TO DISCUSS WITH ALL THE OTHER REGISTRY, AND ALSO THE OTHER COMMUNITY ABOUT WHAT WILL BE THE BEST PROCESS TO IMPLEMENT IDN AND HELP THIS TO HAPPEN IN A VERY EFFICIENT MANNER FOR THE REGISTRANT.
I DON'T WANT THE DISCUSSION ONLY TO BE FOCUSED ON THE TECHNICAL RESTRICTION, AND IT SEEMS TO BE THAT IF YOU LOOK AT ALL THE REPORT WE'RE DOING, IT'S -- THE FOCUS IS MUCH MORE DONE ON THE RESTRICTION AND THE DIFFICULTIES TO IMPLEMENT IDN THAN TRYING TO ASSESS WHAT THE MARKET NEED AND WHAT IS THERE ON OUR SIDE TO HELP PEOPLE TO ACHIEVE THIS GOAL.
>>VINT CERF: SO FIRST OF ALL, TINA, DID YOU HAVE ANYTHING TO ADD TO THAT?
>>TINA DAM: SURE.
>>VINT CERF: I APOLOGIZE, BUT IF SHE HAS A RESPONSE, I WANT TO ALLOW THAT.
THANK YOU, MOUHAMET.
>>TINA DAM: THANK YOU. IT'S PROBABLY GOING TO BE A SOMEWHAT SHORT REPLY TO A VERY LONG COMMENT, BUT ONE OF THE THINGS WE DID TRY THIS WEEK WAS TO HAVE MULTIPLE SESSIONS WITH VARIOUS GROUPS IN THE COMMUNITY TO SPECIFICALLY ADDRESS SOME OF THE NEEDS THAT MOUHAMET HAD RAISED.
IN RELATION TO MERGING OF CCS AND GS, IT'S CLEAR RIGHT NOW AS IT STANDS THAT ICANN AUTHORIZED THE GTLD REGISTR