[wg-c] Re: Importance of the Registry

["Kevin J. Connolly" <CONNOLLK@rspab.com>]

Dear Readers,

Ultimately, the problem with any proprietary registry lies in the creation 
of a new monopoly.  There is a difference between, for example, 
Calvin Klein's monopoly of CKone fragrance and the created monopoly 
of granting control over a top level domain by fiat.  The former protects 
both the public and private interest in "brandedness" of goods and 
services, preventing free riding and ensuring that consumers can be 
informed as to the characteristics and quality of what they purchase; the 
latter is simply the outright grant of valuable rights for the enrichment of a 
single individual or enterprise.  It's hard to see the difference between 
(A) granting exclusive rights to control the .any registry to a profit-making 
developer and (B) Jacobean grants of land in the New World to relatives 
and cronies as proprietary colonies.

Monopolies are bad.  Monopoly profits are in effect a private tax 
payable by the consumer to the monopolist in order to enjoy the 
monopolized goods or services.  The net effect of unregulated monopoly 
(monopoly which is free to set its prices rather than have its prices approved 
through a tariff-filing mechanism) is to reduce the overall wealth of the system 
affected by the monopolist.

On the other hand, if we establish criteria for registry operations which 
include (A) shared registration systems and (B) _some_ mechanism for 
preventing the owner/operator of the registry from exacting monopoly 
profits, then we have a system which will enhance the growth of the 
Internet.  I am not going to suggest that we erect an Internet Rate 
Commission which would have the power to control registry prices.  I do 
suggest, however, that the paradigm of a registry owned by the registrars 
contains within itself the checks and balances to prevent the exploitation 
of an exclusive grant of power over a top level domain.  Such a registry has 
a strong incentive to reduce its price to its customers to its actual cost, since 
profits earned at the registry level will end up being shared by registrars 
"equally."  Competition favors making those profits approach zero, so as to 
maximize the profits which can be earned and kept by the successful registrar.

Finally,   I think we need to convince the NTIA that the system ultimately put 
into place will not require ongoing governmental oversight.  I believe that the 
approach I suggest could fill that requirement.

Kevin J. Connolly
<as usual, please disregard the silly trailer>

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