Transcript of DNA member breakfast with ICANN CEO Fadi Chehadé (February 10, 2015) during ICANN 52, Singapore

Transcript DNA member breakfast video, featuring ICANN CEO Fadi Chehadé (February 10, 2015) during ICANN 52, Singapore. Note Chehade's reference to new gTLDs registry operators--ICANN "contracted parties"--as ICANN's "partners" 7 times (highlighted in orange below):

0:00>> Kurt [Pritz]: Good morning everyone, thank you so much for being here today. We've got a
0:09great breakfast planned. I'm going to take you through the agenda very briefly, and then
0:15Adrian [Kinderis] is going to tell us about our current and future plans, so that's all good. First
0:20there's me. Like I said, Adrian will follow up, he will introduce Fadi Chehade, ICANN
0:29President and CEO, who we're very honored to have here today. Then we're going to get
0:33down to the work that we're doing, and have our members describe that work. Brent London
0:40from Google will describe the work we're doing on universal acceptance, including the creation
0:45and construction of an information repository and also a new set of committees that are
0:51attacking this. Chris Wright will describe our work in the
0:54registry/registrar operations group. That's an industry wide group not limited to just
0:59DNA members but all registries and registrars that are teaming together to find more economical
1:05ways to work together. Andy Brier from NameStats has provided a number of new ways of looking
1:15at industry statistics for us. He could not make it to the meeting so I will present some
1:20of that on his behalf. I will also describe the end results of the survey and where you
1:25can go to for more information, and describe the information that you receive from us on
1:29it. Then Jeff Sass is kind enough to provide a member showcase in some of the work he's
1:35doing. There's a lot to get through in a short period of time. It's going to be a great session.
1:40I'm going to turn it over to Adrian directly. >> Adrian: Thanks Kurt, good morning everybody.
1:48Am I on? Good. Holy [Crimony 00:01:48]. That will wake you up. Good morning everybody,
1:50thanks for getting up early and coming down. We've got a great turnout, which is fantastic.
1:54Thanks to Kurt and the logistics team for putting this on. I'd also like to take the
2:00opportunity [00:02:00] and certainly not to pump up Fadi’s ties because he's in the
2:03room, but I can't have ... I think you noticed, this meeting, we're now on the agenda, which
2:09is fantastic. ICANN has certainly been supporting us in creation of meeting spaces for the board,
2:17and indeed this room has been accommodated within the ICANN schedule. Finally I'd like
2:23to thank you and the staff there for supporting us.
2:26I don't want to speak to long this morning because we do have Fadi here. We've asked
2:32Fadi to present on where he sees the industry and what his vision of this industry association
2:41is. Also, we're certainly going to allow for, should time permit, some questions afterward.
2:47Please have those questions ready. I'm happy to escort out anyone that ask him about who
2:53is [inaudible 00:02:54] might well be on the agenda. I'm just trying to let you off the
2:58hook for your normal stuff. Without further ado I'd like to introduce the ICANN president
3:04and CEO, Fadi Chehade. Thank you very much. >> Fadi Chehade: Thank you. Good morning all
3:11of you. It is wonderful to see this room filled like this. I think Adrian, Kurt, and others
3:19who know this idea of the DNA Association started in some small meetings we were having
3:26at the ICANN office where I was a huge early supporter, and continued to be. We need DNA,
3:34it's that simple. It's not something that is nice to have anymore. It's a critical part
3:45of any industry that matures, to have an association of people who are in the industry, who are
3:52business people. I, yesterday, spent how many hours [inaudible 00:03:57] maybe three hours
4:00[00:04:00] last night. Three very long hours with some of you, where, because there's a
4:06brewing issue for example coming up that will affect your industry. We wanted to nip it
4:13in the bud before it came an issue and the [inaudible 00:04:15] started coming and the
4:18policies start. We said, "Let's all get together for a long
4:22dinner." There was enough booze for everybody to calm down and listen to each other. GAC
4:28members were there, governments were there, business people were there, and certainly
4:34people from [ALAC 00:04:35] and Civil Society, they were all there. We said, "Okay, let's
4:38solve this problem before it becomes a problem." I'm committed to your industry without a question.
4:46I need to understand it more and spend more time in it, no question. I did realize at
4:52some point that ICANN itself is an organization needs a dedicated president that is focused
5:00on serving the industry. I asked Akram to abandon his COO role and be the president.
5:06We created this division to serve you. In many ways we need to pair GDD and DNA and
5:14make sure that that is very tight, that there is no misunderstanding ever between those
5:21who are trying to make your businesses successful. Of course some people call GDD the regulator,
5:29and in many ways they could be acting this way. I think, frankly, if you know Akram well
5:34and his team, we're trying to be less that. We really need to be less that and more your
5:39 partners. If we can solve issues as they happen, before they become critical, before the heat
5:46comes up in the political space of ICANN, then I think we all benefit from that. More
5:52of that will be good. DNA could play the key role of actually engaging with us as an industry.
5:59[00:06:00] I'm delighted you're here. I just looked very
6:02quickly at this, I think the overview of your issue number two. All the things that are
6:11covered there, especially the stats and all of this. This is needed. We need to see more
6:15of that. I think if the industry also gets to the point to do the things we discussed
6:20now two years ago of self-regulation, of doing things to show the world that this is a good
6:27industry. Yes there are elements of every industry that are distasteful and they're
6:33not here. These are minor elements. Yesterday you saw me highlight in the opening ceremony
6:39that the audits of registries and registrars are coming up extremely good. When I was at
6:45Ingram Micro we had 25,000 resellers. We could never get a 98% audit complete on 25,000 resellers.
6:55Here we did registries and registrars and over 98% are either clear or had minor things
7:01that they cleared by now. This is the kind of data we need to tell those
7:06who think we are a runaway industry that does not have frankly a sense of responsibility
7:13for the work we do. It's simply not true. There is misperception, and I hope DNA and
7:19ICANN work together to actually change that perception. One last word, because I really
7:24would like to turn this into a dialogue on the transition. The political internet governance
7:35transition cloud has taken a lot of the oxygen away from many other things we really need
7:42to attend to. It's true. Last year, not only did I get sucked into that very, very complicated
7:53space, but it meant also that we all put less [00:08:00] time to solve the issues of the
8:01industry and attend to the industry. My board, and those of you who are able to
8:07communicate directly with me has made that very clear. They said, "Fadi, we need the
8:13pendulum to swing back to focus on our issues on ICANN." It hasn't really since Istanbul.
8:20The idea since Istanbul, I've switched myself and a lot of my focus completely on issues
8:27to serve you better. We found a lot of internal issues because ICANN had grown when Kurt and
8:33I started, when I started and Kurt was really my mentor when I started at ICANN. He's the
8:38one who got me going. I think we were 120 people, 125 people or so. Today we're 350
8:46people. In two years we've grown significantly. Brent sees that in the parking lot every day
8:51when he comes in. It's probably harder to park these days. That means also growing pains.
8:59This is a big team that needs a lot of focus and attention and direction.
9:06It's not just me, but all of us on the staff need to do this. I did some rearranging of
9:12things in December that are already bearing fruit, giving Akram also more space and more
9:18time to focus on what you need to do. Congratulations, really, to all of you, especially Adrian and
9:26Kurt for this effort, for the DNA effort. I am very committed to help you in any way
9:31we can, including, I was in the elevator with one of your members, where is he? There you
9:39go, there, back there. He was telling me how the space is working, but if we can do some
9:45things to enhance the working space for DNA at our meetings we will do that. We were just
9:50in the elevator coming up with ideas. Maybe we can give you a permanent space with permanent
9:56staff support so that when you come in you can meet people, you can ask to meet people,
10:01[00:10:00] and there could be some mechanisms to make this easier for you at these meetings.
10:05I can't do this as ICANN, it just will not be ... Then all groups will ask for that,
10:12law enforcement is now telling us, "We'd like to ..." The way I can do it is through DNA,
10:19if we can partner with DNA we have a layer to say this is an association of the industry
10:25and we're helping them. That's just an elevator idea. If we have other ideas I'd like to hear
10:30them. Kurt certainly can reach me and we will help you and support you in every way we can.
10:37Let's do Q&A so it's your time and I can listen to you and know what issues are on your mind
10:43besides the transition. Is anyone in here worried or thinking about the transition,
10:49or is this ... I don't know, is this a major issue for the members? Do you care about this?
10:58Do you worry about this? You seem to be nodding. >> Stacey King: [inaudible 00:11:03] I think
11:05for everybody in this industry they're worried about the transition, it doesn't mean worry
11:09correlates to we think it's going to fail, but I think everybody is keenly aware of the
11:16fact that this is happening, wants to see where it's going, and wants to make sure it's
11:20done properly and not in a rush. >> Fadi Chehade: What's the most important
11:23thing you think for industry to get out of the transition? Let's agree on basics, the
11:30transition will happen. What are we worried about? What is the biggest worry we have?
11:38>> Adrian: I'll stop because I've got the microphone. I think predictability. I think
11:44I want to know, for me, I've built a business, invested money into building a business. I
11:50need to know that that business is going to be operational into the future. Whatever mechanisms
11:55and structures around that, that the [inaudible 00:11:59] transition may change [00:12:00]
12:00I'd like to get the biggest understanding as far out as I can. Obviously status quo
12:05is good because that's how I built my business. Often times when the goal posts get moved,
12:12I think us in the industry, we're the ones that feel it the most. You can look at a whole
12:17range of different issues, especially at this meeting, where the goal posts seem to be moving.
12:22It's hard for us to build our businesses around that. Predictability would be ...
12:26>> Fadi Chehade: This is a good point, because I do believe that predictability is the biggest
12:32issue we have from this side of ICANN. On other words, when we look at you and yesterday
12:37we had the whole three hours were about, "Stop it guys, we need a predictable environment,
12:46we can't start something and then oops somebody in the GAC has an idea and suddenly we have
12:51to change our business plan. It just can't work like this." I think those who were there
12:57from your industry were very good at explaining two things, first that this is critical for
13:03business. You can't keep asking us, as [Ira Magaziner 00:13:05] said yesterday, to work
13:08in an environment that is constantly shifting and people moving the rules on us. We stop
13:15them, frankly, we actually did stop them because they realized they cannot after things move
13:21keep ... This is constant, it means we have to be very alert to them. Let me tie it back
13:27into the transition, how does the transition affect predictability? I am not seeing it.
13:34How does the transition add or take away from the predictable environment?
13:40>> Jeff Eckhaus: Thanks. It's Jeff [inaudible 00:13:44] here. Hi, Fadi, thanks. I think
13:47for us, one of the things that gets lost in this is we're an actual customer of the IANA
13:53system and the process. I think people forget there's going to be service levels involved,
13:59there's [00:14:00] going to be issues. For me, a lot of that predictability is if I send
14:03in to make changes that they happen in a good amount of time. As Adrian said, the processes
14:10worked great until now. Any requests we've made have been worked well, and that's predictability
14:16to us. >> Fadi Chehade: Okay. I got it. Is there
14:18any other predictability? I want to address that. Other predictability?
14:22>> Audience: Thanks. >> Adrian: I'll get you next [crosstalk 00:14:25]
14:24>> Fadi Chehade: Factors in the transition that will affect predictability.
14:27>> Chris Disspain: Morning everyone, Chris [inaudible 00:14:29] and just to be clear,
14:30and I don't need to say this, but speaking as the manager of dot [AU 00:14:34]. Yes,
14:37Fadi, it depends on what model ends up being chosen. Some of the models ... First of all
14:42it's fascinating that no one, as far as I can tell, is so far in the SWG has started
14:45talking about the stuff that I think that really matters like service levels and so
14:49on like that. To be fair, maybe we, the industry itself might need to lead to that. Perhaps
14:56we should get in there, get our hands dirty, and start talking about that sort of stuff.
15:01Secondly, it depends on the model. I'm not going to talk for or against any model, I'm
15:05just going to make the point that those of us who deal with IANA every day have built
15:11up over time a set of structures and relationships that might not be perfect by any stretch of
15:16the imagination but seem to work, and are predictable to a degree. Anything new can
15:24affect that predictability. The goal should be to create what we need to create to make
15:30it work with as little fuss as possible and as little change as possible. In my head,
15:35and it's just in my head, the way I see that operating is if you want to make broad brush
15:40changes to the way that ICANN is accountable I have no issue because that's fine and that's
15:46what the community's job is. The actual discreet IANA function should really be left alone
15:54and the predictability there is what's critical. >> Fadi Chehade: Okay. Anything else on predictability?
16:00[00:16:00] >> Adrian: I've got Jordan and Jeff.
16:03>> Fadi Chehade: At least in regards to the transition.
16:05>> Adrian: Jordan. >> Jordan Buchanan: Yeah, absolutely. Jordan
16:07Buchanan with Google. I think, maybe just to build on what Chris said, I think some
16:12of us at least would have concerns that there are models being proposed, or there's a lot
16:16of people with their fingers, I guess, in the transition process. We talk about things
16:23like service levels not being discussed so far. It's not surprising, there's an IP attorney
16:29leading the CCWG. They're talking about stuff that IP attorneys care about and not necessarily
16:35about technical excellence from the IANA. I think we, the customers of the IANA are
16:42concerned that the existing predictable processes will get mucked about by the transition process
16:48getting overloaded by it. To build on Chris' point, I think a lot of what I'm seeing from
16:54the transition process is concern about what happens if ICANN runs amuck? We don't have
16:59the right accountability measures in place. It's because the sequence is wrong. If we
17:03had the accountability first, we wouldn't have to worry about all of these, "What if
17:06..." This parade of horribles. I think the model's just getting a little bit too complicated
17:11probably. >> Fadi Chehade: Okay, let me just answer
17:13this far what I've heard. It's extremely tied together. The IANA part needs to be as much
17:22as possible left alone so that we can continue with where we're going. Remember how the system
17:29works today. It's not a triangle, exactly, it's two lines like this. We work with you,
17:38we tell NTIA that the change is ready to be done in IANA, NTIA tells Verisign to do it.
17:44There's no relationship between me and Verisign. It's like this, it goes up to NTIA. NTIA will
17:52go away. They will go away with me and with Verisign. They will end their role in the
18:00[00:18:00] [Rude Zone 00:18:01] management function. The easy answer is of course draw
18:05a line. The system, in fact, that we used to make
18:10the changes is itself a system that we could, for example, ICANN could have both the buttons
18:18that are on these sides today so that we could make the request. In order to make it easy
18:23so there's no software change, we would also say go. Of course we could put an auditor,
18:28somebody who would watch us so we don't push that go button that today Vernita Harris with
18:34NTIA does, and it's highly automated anyway. Then nothing changes. That means that ICANN
18:41and Verisign have to be connected. You appreciate that, right? That I don't have that relationship
18:49today. I cannot go to Verisign and say, "Add or do something in the route." The good news
18:59on that is I think that is now going to start happening in order to ... It took a long time
19:07because no one wanted to move until we got a sense of where we're heading.
19:12Because the CWG is so busy not doing its job, which is to tell us how operationally IANA
19:22should work, it is busy telling us how it's going to, I don't know, turn ICANN into a
19:28membership organization. I think we have an issue. We started telling NTIA, "We need to
19:35talk to verisign for the stability of the system." Come September 30th, if everything
19:41is resolved, we need to make sure that operationally we have a piece here working. That's already
19:48about to start actually at this meeting in a formal way. I'm very pleased that, first
19:55of all, that Verisign is open to continue [inaudible 00:19:59] with us. [00:20:00] Which
20:00means they will work with ICANN at the pleasure of ICANN, meaning it will be a contract with
20:05ICANN to actually do that work. That will keep things stable.
20:11No system change, no software change, same exact people, same exact process. It's just
20:17that the button in the middle will be pushed by someone else. It could be someone at ICANN,
20:22it could be someone, a committee from the community, it doesn't matter. The system will
20:27remain completely the same. I'm hoping predictability and stability there will stay. The problem
20:34is, what I just told you is not a community decision. Therefore it is very important to
20:39do what Jordan said, get into that CWG. This is your business, guys. They're deciding on
20:46your business of how this function will work. Frankly, there is no one today in the CWG
20:50that. Frankly there is no one today in the CWG who even understands how the functions
20:54work. I send my CEO David Conrad to explain to them
20:57how the system works and how they might fix the SLA's. Frankly, no one there even knew
21:03that he was talking about. That's your business. That's immediately, something you guys can
21:09immediately get involved in and step into the CWG, say, "Guys, you want to talk accountability,
21:14there is an accountability track, go there. Let us decide how our operation will work."
21:19It is your operational things. The IETF did that very well. They're done, the numbering
21:25guys did it, done. They focused on the operations. In fairness to the CWG, as Jordan said, the
21:33accountability track was late, and therefore they felt they need to have their issues addressed
21:38somewhere. Their issues got thrown, frankly, into the wrong swim lane. That swim lane,
21:43which is yours, which will give you that predictability, it currently is screaming for you guys to
21:48step in. Frankly maybe that's something DNA could do,
21:52maybe DNA can give them a proposal, say, "While you're very busy with 16 tracks to come up
21:58with this, here's a proposal on how to strengthen [00:22:00] the SLA's and how it should work
22:03as a starting point." There should be no other predictability matter for you other than making
22:10sure that the board of ICANN is accountable to you. This is a discussion Chris knows we've
22:16already had at the board. I think all the board members are clear that one of the things
22:22we need to do and do it quickly is accept that the community may need, under some very
22:30extreme conditions, to spill the board of ICANN. We have to accept that.
22:37If the community feels that there is no, what Chris sometimes calls nuclear option, that
22:43if the board is not responsive, it had gone rogue or whatever people come up with and
22:49speculate, there has to be a mechanism for you to throw the bums out. That mechanism
22:56has to happen, it has to be put in place. This is normal for at least, in some parts
23:02of the world, this is a very normal recall mechanism that happens. Again, it cannot be
23:08if you do not like the color of my shirt ... It has to be with some strict rules again for
23:15predictability, for stability. There has to be some extreme measures and the board accepted
23:20that in concept. That's fantastic. That's actually a new step for us to move forward
23:25and give the community some power over the decision making process. Next?
23:30>> Jeff Neuman: Yes. >> Fadi Chehade: Mr. Neuman.
23:33>> Jeff Neuman: How are you? >> Fadi Chehade: Congratulations on the new
23:35job. >> Jeff Neuman: Thanks. I'm speaking on personal
23:38behalf here. I want to address predictability as well. I think we've already seen an effect
23:44of the transition discussions on predictability. I think there's such a tense political environment
23:49right now where I think too much is being done to cater to international governments
23:55in order to gain acceptance of a new model. There's too much fear [00:24:00] I see in
24:01ICANN staff and ICANN board in trying to appease the governments and deviating from things
24:06that we used to, since 1998 when the white paper came out. Yes, I was around back them.
24:11[Ira Magaziner 00:24:12] wasn't the only one around. The very thing that was core to all
24:18of us was never to deviate and create new international regulatory or legal regimes.
24:25I believe now we have completely deviated from that.
24:29We are listening to governments who are giving advice, or not even necessarily giving advice.
24:34Maybe a couple of governments say something, and ICANN staff and board are so afraid the
24:39perception of saying no to the government and only act in your jurisdiction and instead
24:46are taking things out on the contracted parties, on the industry ... Things like the two character
24:52issue of registries needing the predictability to operate our business to announce launches,
24:58to have a process to release these characters are now being stymied by a staff and a board
25:05who are acting because one or two governments may say something, not necessarily GAC advice,
25:13which when you look at the core of what they're saying is not in accordance with international
25:19law. For us, we think predictability has already
25:23been affected. The IANA issues are extremely important, I just wanted to move on a little
25:26bit, but this is how the current political environment is already affecting our predictability.
25:31We cannot, as an organization, since 1998 it was the number one tenant. When we developed
25:36the UDRP, and I was involved in doing that. It was clear, we cannot create extra legal
25:42rights where those legal rights do not exist. We are heading towards that because of the
25:47political environment of trying to cater to the governments in a world where we're going
25:52through this transition. >> Fadi Chehade: Okay. Do we agree that this
25:55point has nothing to do with the transition? If it doesn't then let's address it [00:26:00]
26:01but [crosstalk 00:26:03] two character thing would happen whether there was a transition
26:05or not, the GAC would have come up with it. >> Jeff Neuman: I do not believe that the
26:08political environment. I believe the board and the staff may have had enough more energy
26:13to say no to the GAC because of the political environment that's created by the transition.
26:18>> Fadi Chehade: Look, the political environment of the transition is simple. It's just very
26:23simple. Ira said it frankly very well yesterday. It was always intended, and you were there,
26:29for this contract to end. The fact that the US government planned it this way, had a vision
26:36for it this way, and you know, how many times did Ira show up at ICANN meetings since then?
26:40>> Jeff Neuman: None. >> Fadi Chehade: Never.
26:41>> Jeff Neuman: A few. >> Fadi Chehade: I had to convince him to
26:43come, and he came only because he felt, "Okay, finally, my work will be finished. I will
26:49come to tell people I am delighted this is happening, this needs to end." We're not doing
26:54this because we are being highly influenced by other governments. We're doing this because
27:00we made a very, very careful analysis that if we do not finish the work Ira started that
27:09we're giving those governments who would like to come and put far more pressure on us, we're
27:17giving them farther to do that. They're very, very, including the Germans, including the
27:23French, including governments ... I am not speaking about China, Russia, and the countries
27:28that everybody lists. I am speaking about friends who are saying this regime has to
27:34go because if it doesn't, it's harder for us to stand up for the system. We wanted this
27:41to go so people have less pressure on ICANN. Right now the political pressure comes from
27:47the fact, "You are a US agency." [foreign language 00:27:50] which is France's top newspaper,
27:51this is there Wall Street Journal, New York Times, whatever you call it, had a front page
27:56article linking ICANN to the NSA. [00:28:00] Front page article, full analysis including
28:03[inaudible 00:28:04], one of ours who comes to our meetings write an article linking us
28:07directly to the NSA. It's crazy. It's just nuts. The environment is nuts. This is all
28:16because every time I go meet them they say, "You are under contract from the US government,
28:22you are a US agency. Let's end this line and let's take control as a community. Let's make
28:28sure the board stays under the control of the community through better accountability
28:32measures. This will put us in a better environment. Today we are politically charged because of
28:39this contract. I hope, frankly, I flip this, Jeff. I think if we get rid of that contract
28:48we will be free of the pressures I'm feeling now all of the time. "You're an American agent,"
28:52I was told walking into a European office of minister. "You guys are American agents."
28:59We're not American agents, we are a community of people, this is how we make decisions.
29:03You go through all of that and it comes back down to the silly contract with Vernita Harris.
29:09It's nothing. You and I know that contract is nothing. That's not how the American government
29:15works with us. It's simply a button that Vernita pushes, but it's causing us a lot of the pressure
29:21we're feeling now. Let's get rid of it. Let's get rid of these pressures and let's
29:25look these people in the eye, frankly as we did with the Chinese. The Chinese, we got
29:32them down to the point where we said, "This is all it is and you can scream all you want
29:36or you can work with us on the single route." They did come to London and you know the rest
29:40of this. Finally the Chinese are not saying, "Who is ICANN?" At every international meeting.
29:47Every international meeting that's happening now, China is supporting the ICANN model of
29:52a single route. That's a big advance. Why did they do it? Because the transition is
29:58coming. If the transition [00:30:00] doesn't happen, a lot of these games we make to get
30:03people to keep the internet united. I went with Jack Ma [00:30:06] to see the
30:07premier of China. Jack told the premier, he said, "I did a promotion on the internet on
30:13November 11th, it was. $9 billion of sales Mr. Premier, because the internet has a single
30:22route and I was able to reach customers in over 100 countries on the same day. Keep it
30:28open." I think we need to keep these governments tied to our model. The best way to do that
30:36is to remove this card they keep playing on us that we are an American agent.
30:40>> Adrian: [inaudible 00:30:43] two more questions, I know you're pushed for time.
30:45>> Fadi Chehade: Please. >> Jeff Sass: Great. Now for something completely
30:49different, I appreciate your time this morning Fadi, and respectfully want to change the
30:54topic for a moment. At the DNA we have two objectives, universal acceptance and universal
31:00awareness. Both are very important to everyone in the room. It's great to see ICANN contribute
31:04some resources to the universal acceptance issue. Will ICANN also consider providing
31:10funds or resources to help us with universal awareness?
31:13>> Fadi Chehade: We debated this at the board the other day. This is dilemma for us. We
31:20don't want to be seen as promoting the industry, but we do have a mission to ensure consumers
31:30know how to actually benefit from this great industry. It's delicate. My position to my
31:37team is we need to do something. We cannot just keep saying the industry will do everything,
31:45we need to partner with you. Today I'd like to tell you ... Is Akram here? As soon as
31:51he saw I'm coming he ducked, but he should be here. I'm committed to figure out how we
31:59can do more [00:32:00] with you. We now have the machinery to help. We have, in Asia, when
32:05I started in Asia we had one guy in Beijing, now we have 26 people on the ground in Asia.
32:11We have people in India, we have people in all the ...
32:15We need to use that machine of ICANN to partner with you in ways that would help all of you,
32:22not one of you or some of you. This is an area where DNA and GDD should start having
32:30some substantive discussion. The time is now, by the way, because our budgets are being
32:35set as we speak for the year starting July 1st. If we're going to put some programs to
32:42start raising awareness through the stakeholders group at ICANN, now is the time. If you have
32:50concrete ideas, specific programs, and we've done some. [inaudible 00:32:54] has done some
32:55in the Middle East to promote the DNS industry. We're starting, but we need to do it in partnership
33:00 with you. I cannot do it alone. Back to the meeting space thing even. Let's make sure
33:06 DNA and ICANN are partnered. We have money to do it, we just need to find the proper
33:13way to do it with you leading and us supporting and using our channels in a way we are the
33:19rails and you put the trains on these rails. Again, with measure so [inaudible 00:33:25].
33:27We have called, but the question is to make sure ICANN does not, the fact you exist is
33:33a huge win for the industry. Adrian knows that. I was very worried of us doing anything
33:39without a DNA, a Domain Name Association in the front. We need to be in the back. With
33:46the existence of this membership, and please support DNA, and please provide it at least
33:51not just the financial support but the moral support and really work through them. I will
33:58work with you through them [00:34:00] as well to do what we can. I'd like to do more. I
34:02don't want to have this meeting a year from today and we're still talking about what are
34:05we doing. I want a list of programs and hopefully see ICANN and DNA partner. Last questions.
34:11>> Jay Daley: Thank you. Jay Daley from dot NZ [00:34:14]
34:14>> Fadi Chehade: Yes, Hi Jay. >> Jay Daley: Hi, Fadi I was very disappointed
34:17by your characterization of the CWG. We need a consensus that comes from an honest meeting
34:24of minds. Inflammatory rhetoric like that is not going to help it. I expect better,
34:29really. >> Fadi Chehade: Let me tell you why. This
34:33is not inflammatory. I am just very direct and I like to get things done. The reality
34:38is we do have an accountability gap. We do. I am cognizant of that, like you Jay. The
34:45problem is if we have swim lanes with activities that need to happen in these swim lanes, we
34:52should direct the activities in their swim lanes. If we do, we're going to get to the
34:55other end of the pool. The problem we had is that the accountability swim lane was not
35:02started, let's say at the same time and with the same focus initially.
35:07>> Jay Daley: I think you should remember what you said about the people on that group
35:11and their knowledge. There are people there that have been running registries for longer
35:15than many of us have been in the business there. There are plenty of people who know
35:19a great deal about it, a great deal about the customer service, about IANA, and how
35:22these things work. There were people there who were involved in setting up ICANN. To
35:27describe them as people who are clueless or whatever phrase you used, I think was unfortunate.
35:32We need to achieve consensus by honesty, by integrity, and by dialogue. You are not helping
35:39with those comments. >> Fadi Chehade: Okay. I apologize if you
35:41think that I offended the people. The reality is they have not produced a single line on
35:46SLA's. We don't have it. Outcomes. Let's focus on outcomes. You guys want outcomes, we don't
35:54want talk. If they want to ... If you tell me they're knowledgeable where is the outcome?
35:59There is nothing [00:36:00] in the CWG about the things you guys discussed. Where are the
36:04SLA's? I don't see them. Meanwhile the numbering community came up with SLA's, the protocol
36:11parameter guys came up with SLA's, and we're discussing still accountability of the ICANN
36:16board. We want legal advice that will cost ICANN hundreds of thousands of dollars to
36:21sit down and tell them why a membership organization might work or not. Meanwhile we have the whole
36:26accountability track. Your fear, Jay, and many others I presume,
36:31is ICANN is getting the accountability out of the CWG and then they will take the ICG
36:37proposal and run with it and not improve their accountability. Let me be clear, Larry Strickland
36:43said he is not accepting the ICG proposal unless it is paired with the accountability
36:49proposal. Number one. Number two, I asked my board as soon as possible to have a resolution
36:55that the ICANN board will not send the ICG proposal to the US government unless it is
37:00paired with the accountability proposal. We're committed to that. All I'm saying is let's
37:05focus our lanes so we can get our work done. That's all. I apologize. I didn't mean to
37:12offend anyone on this, including yourself, I simply meant the outcome is not there, the
37:18focus on the real issues that will give you predictability on IANA are still not there.
37:23Let's get them in there and finish our work so we can finish this transition.
37:27One last thing I want to tell you about the transition, the transition is killing you.
37:33In what way? All the oxygen is sucked by it. All the time we're focused here on transition
37:39could be focused on how we can solve the issues that we were solving last night. This was
37:44real business we were doing. Starting to talk to the GAC and these people early before [inaudible
37:4900:37:50] come out way. Therefore, let's get this transition done and let's fix our accountability,
37:55Jay, I'm with you. Let's go and do everything right to fix it. Let's [00:38:00] get on with
38:01business. We have a lot of work to do and we have a lot of issues to solve. A lot of
38:05my energy and the energy of my team can be focused so that we can get ahead of the issues,
38:11not wait until we have a [inaudible 00:38:14] or the civil society guys up in arms.
38:17Yesterday we noticed, just to tell you so that no one thinks there was a secret meeting,
38:21this was a meeting where casually we invited people for the GAC, ALAC, and so on because
38:25they're saying, "Stop all the category one TLD's, stop them. Freeze them." We said, "Why
38:34do we need to freeze them? What's the issue?" They said, "Well, it's going to harm consumers."
38:41"How will it harm consumers?" We started having a debate. It turns out that they're worried
38:46that if somebody got to or, to use one of Stratton's TLDs, this person
38:56is not a dentist and he'll pluck your ear instead of your teeth. How do you make sure
39:02they're a dentist? I asked the European commission, "How do you make sure is a dentist?"
39:08They said, "We don't, they just get it." I said, "Okay, why do these guys have to do
39:15anything different?" They said, "Well the new gTLD program should be better or a model."
39:23I said, "Come on guys, do not apply rules that you're not using today to these new folks
39:30simply because it's easy. Because you can come and raise flags here at ICANN. Let's
39:36be fair. How do you do it at eu?" "If somebody reports that is not a dentist
39:45we remove them." Stratton said, "We do the same thing, it's in our picks." If
39:52is not and somebody reports them. They said, "We can't call compliance." "Yeah you can
39:57call compliance, anybody can call compliance. [00:40:00] Call us and we will follow up with
40:01Stratton and with the registrar and remove it."
40:05This is the kind of work we should be doing. We should be spending more time with them
40:09ahead of time and nipping things in the bud so you guys have more predictability, not
40:14surprises. I hope we get this transition done and we focus on that so we can give you the
40:20space and the oxygen to grow your business. Thank you.
40:23>> Kurt: Thanks Fadi. >> Adrian: Thanks very much. I think it's
40:30fantastic. We've got a lot more time from Fadi than we planned, we appreciate that,
40:35we know you're busy. Thank you to your staff for giving your time. Thanks Fadi [inaudible
40:4200:40:42]. Guys I think some important things there. First of all a great soundbyte that
40:47Fadi says we need the DNA. Also, that he invented it. A little bit of Al Gore there. Just saying.
40:58Seriously, they have been great with giving us the support that we need to go forward,
41:06and great questions. Thank you.
41:07DNA member breakfast 2015-02 Page 15 of 15

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