November 7, 1998 Second Draft of Proposal for DNSO Format [Alternative 1]
NB: This is a DRAFT; it is intended to be a framework for discussion
as proposed in the announcement of the DNSO process.  Note that the
terminology and Section references refer to the 17th September draft
of the proposed reconstituted IANA bylaws. 
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APPLICATION TO BECOME THE DOMAIN NAME SUPPORT ORGANIZATION, (pursuant to Art.  VI, Section 3 (b) of the Bylaws of Internet Corporation for Assigned Names and Numbers (the "Corporation")

Introduction

This application is made by the undersigned to become the Domain Name
Support Organization ("DNSO"), pursuant to Article VI, Section 3 (b)
of the Bylaws of the Corporation.  The undersigned hereby commit to
fulfill the undertakings and policies set forth in this application. 

This application is organized under the headings set forth in Article
VI, Section 3 (b) as follows:

I.  Membership criteria for the DNSO, and for the Names Council to be
created pursuant to Article VI, Section 3 (a) (ii) of the Bylaws of
the Corporation. 

II.  Methods for developing substantive Internet policies and
selecting Board nominees

III.  Open and transparent non-discriminatory processes

IV.  Policies to ensure international and diverse participation

V.  Policies for disclosure to the Corporation by members of or
participants in the DNSO of conflicts of interest or other financial
interests in matters within the scope of the DNSO

VI.  Methods for funding the DNSO and providing funding for the
Corporation. 

Discussion

I.  Membership criteria

Membership in the DNSO is categorized into 5 constituencies,
described below.  Each constituency has different requirements; an
organization may elect to be a member of more than one constituency,
but must meet the qualifications for each, including payment of any
membership fees. 

The qualifications for membership in the DNSO and its constituencies
are set forth in detail in Appendix A to this application, entitled
"QUALIFICATIONS FOR MEMBERSHIP IN THE DOMAIN NAME SUPPORTING ORGANIZATION".  The qualifications for membership in the Names
Council are set forth in Appendix B entitled "QUALIFICATIONS FOR
MEMBERSHIP IN THE NAMES COUNCIL". 

Because there is no limit on the number of members in the DNSO, it is
entirely possible that the number of members will be so large that it
cannot function as a consultative body.  If the number of members
does not exceed [twenty], the DNSO will be governed by a committee
consisting of one representative of each member.  If, however, the
number of DNSO members exceeds [twenty], it will be necessary that
the DNSO operate through an elected committee (e.g., an Executive or
Governing Committee or such other name as the DNSO may choose).  For
convenience in this application, the committee is referred to as the
"Governing Committee".  The Governing Committee will have a total of
19 individual members, of whom [x] will be elected by the DNSO and
[x] by the Names Council.  The members elected by the Governing
Committee are classified in the categories set forth below; each
category shall be represented by the number of members indicated. 

  A.  Registries [xx] members

  B.  Registrars [xx members]

  C.  Network operators and service providers [xx members]

  D.  Business organizations other than operators and service
  providers [xx members]

  E.  Organizations primarily concerned with the interests of
  trademark owners 1 members [xx members] [Other constituencies
  deleted]

Nominations for election by each constituency may be made by any
member of the respective category.  Each member of any category may
nominate not more than one nominee in such category; however an
organization which is a member of more than one category may nominate
one nominee in each category.  Nominees need not necessarily be
connected or affiliated with the nominating organization.  Each
member r may cast one vote in each of the constituency categories. 
The nominees receiving the highest number of votes in each category
will be elected. 

The Names Council shall nominate and elect At Large members of the
GC, geographically distributed as described in the ICANN Bylaws [xx
members]. 

Nominations for members of the Governing Committee to be elected by
the Names Council may be made by any member of the Names Council. 
Each Names Council member may nominate not more than one nominee;
nominees need not necessarily be connected or affiliated with any
organization.  Each member of the Names Council may cast a single
vote for the member position or positions currently open, and the
nominee or nominees with the most votes will be elected. 

The term of membership in the Governing Committee shall be three
years, and one third of the members will be elected each year, so
that the three year terms will be staggered.  The period of office of
the initial members of the Governing Committee is determined as
follows:

The seats on the Governing Committee shall be filled from the list
of elected candidates from the constituencies and the group of
At-large members individually and in order.  The order of the groups
shall be determined by drawing lots.  As soon as each group has
filled one seat, the process shall be repeated from the start of the
sequence; groups whose quota of elected nominees is exhausted shall
not participate further in the allocation of seats. 

The nominee receiving most votes in a group will be appointed for a
three-year term of office until the total of seven is reached. 
Subsequently, the same method will be applied to appoint six more
members for a two-year period of office, starting with the group
after the one which supplied the seventh three-year member of the
Governing Committee.  The remaining elected nominees serve for a
one-year term. 

II.  Methods for developing substantive Internet policies and
selecting Board nominees

The Governing Committee (or representatives of members, if there are
twenty or less members of the DNSO) shall consult with members of the
DNSO and with members of the Names Council and shall meet from time
to time. 

Decisions on policies and selection of Board nominees shall be made
by [majority] [two-thirds] vote.  The DNSO, the Governing Committee
and the Names Council may establish on-line methods of meeting and
conducting ballots. 

III.  Open and transparent non-discriminatory processes

The processes of the Governing Committee (or representatives of DNSO
members) shall be governed by the same provisions for open and
transparent non-discriminatory processes as those of the Board of the
Corporation. 

IV.  Policies to ensure international and diverse participation

Because of the composition of the Governing Committee, there will
automatically be international and diverse participation.  If the
DNSO has less than twenty members, it shall develop a procedure for
ensuring international and diverse participation that meets any
applicable requirements of the Corporation. 

V.  Policies for disclosure to the Corporation by members of or
participants in the DNSO of conflicts of interest or other financial
interests in matters within the scope of the DNSO. 

These policies shall be the same as those for the Board of the
Corporation. 

VI.  Methods for funding the DNSO and providing funding for the
Corporation

The DNSO shall obtain funding from membership dues and from fees paid
by the constituencies. 

In particular:

a) DNSO operations will be funded through the membership fees levied
on DNSO members. 

b) ICANN expenses related to the DNSO will be funded through the fees
levied on constituencies.  [whereby the Registries committed to pay a
significant portion]. 

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APPENDIX A

QUALIFICATIONS FOR MEMBERSHIP IN THE DOMAIN NAME SUPPORTING ORGANIZATION (pursuant to Art.  VI, Section 2 of the Bylaws of
Internet Corporation for Assigned Names and Numbers (the "Corporation"))

The following are the qualifications for participation by any entity
or organization for membership in the Domain Name Supporting
Organization ("DNSO"), as described in Article VI, Section 2 of the
Bylaws of Internet Corporation for Assigned Names and Numbers (the
"Corporation"):

1) Any entity or organization that is either:

a) A name registry,

b) Or a registrar of generic/global and country-code top-level
domains ("TLDs"),

c) Or a business or other entity that is a user of the Internet,

d) Or an entity with a legitimate interest in TLDs, and that meets
the further qualifications set forth in this statement is eligible to
be a member of the DNSO. 

2) Entities or organizations must meet the following minimum
standards.Constituency classes may impose additional standards:

a) A business entity or organization must have had at least the
equivalent of US$xxxxxx in gross annual revenues for at least the
past xxx years;

b) A not-for-profit entity must have at least xxxx individual members
or business entity members whose total gross revenues meet the
standard in subparagraph (a). 

3) Pending further amendments to the Bylaws of the Corporation,
individuals are not qualified to be members of the DNSO. 
Governments, governmental entities and multinational entities are not
qualified to be members of the DNSO. 

4) Each qualifying entity or organization must pay basic annual dues
to the Corporation in the following amounts:

a) A business entity or organization must pay an amount in US$ equal
to xx percent of its average annual gross revenues for the past five
years (or such lesser period as it may have been in existence), but
not less than US$ xxxx per year. 

b) A not-for-profit entity must pay an amount in US$ equal to xx
percent of its average annual dues income for the past five years (or
such lesser period as it may have been in existence), but not less
than US$xxxx per year. 

5) Members of the DNSO may elect to become members of one or more
Constituency Class.  Constituency Classes may assess additional fees
and requirements, subject to oversight of the DNSO as a whole:

6) Each qualifying entity or organization must agree to bide by rules
and principles established by ICANN and the DNSO, on pain of removal
from the DNSO.  Such removal can be effected through a 3/4 majority
vote in the GC, or through action by the ICANN board. 

The following principles are assumed ab initio:

a) the data in each registry shall be freely available to the public,
subject only to restrictions relating to privacy;

b) Registries shall operate in the public interest;

c) [deleted]

d) Access for registration of second level domains in all gTLD
registries shall be equally available to all qualified registrars on
a non-discriminatory basis; and

e) Registration services for second level domain names in the gTLDs
shall be globally distributed, and, except in exceptional
circumstances, should be shared among all registrars that meet
appropriate technical qualifications. 

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APPENDIX B

QUALIFICATIONS FOR MEMBERSHIP IN THE NAMES COUNCIL (pursuant to Art. 
VI, Sections 3 (a)(ii) of the Bylaws of Internet Corporation for
Assigned Names and Numbers (the "Corporation"))

The following are the qualifications for participation by any entity
or organization for membership in the Names Council, as described in
Article VI, Section 3 (a)(ii) of the Bylaws of Internet Corporation
for Assigned Names and Numbers (the "Corporation"):

1.  Any entity or individual person with a legitimate interest in the
Internet is eligible to be a member of the Names Council. 

2.  Each member must pay annual dues to the Corporation in an amount
equivalent to US$xx [$50-$100] to cover administrative and other
costs associated with membership, including the cost of verification
of identity. 

3.  Each member must be willing to support the following principles
for the operation of registries and registrars in the domain name
system:

  a) the data in each registry shall be freely available to the
  public, subject only to restrictions relating to privacy;

  b) gTLD registries shall operate in the public interest on a cost
  recovery basis and not for profit;

  c) gTLD registries shall pay a fee to the Corporation for each
  second level domain name registered;

  d) Access for registration of second level domains in all gTLD
  registries shall be equally available to all qualified registrars
  on a non-discriminatory basis; and

  e) Registration services for second level domain names in the gTLDs
  shall be globally distributed, and, except in exceptional
  circumstances, should be shared among all registrars that meet
  appropriate technical qualifications.