Internet Society told to halt .org sale to dodgy companies… by its own advisory council

The Internet Society’s own members are now opposing its sale of the .org internet registry to an unknown private equity firm.

The Chapters Advisory Council, the official voice of Internet Society (ISOC) members, will vote this month on whether to approve a formal recommendation that the society “not proceed [with the sale] unless a number of conditions are met.”

Those conditions largely comprise the publication of additional details and transparency regarding ISOC’s controversial sell-off of .org. Despite months of requests, neither the society nor the proposed purchaser, Ethos Capital, have disclosed critical elements of the deal, including who would actually own the registry if the sale went through.

Meanwhile, word has reached us that Ethos Capital attempted to broker a secret peace treaty this coming weekend in Washington DC by inviting key individuals to a closed-door meeting with the goal of thrashing out an agreement all sides would be happy with. After Ethos insisted the meeting be kept brief, and a number of those opposed to the sale declined to attend, Ethos’s funding for attendees’ flights and accommodation was suddenly withdrawn, and the plan to hold a confab fell apart, we understand.

ISOC – and .org’s current operator, the ISOC-controlled Public Interest Registry (PIR) – are still hoping to push DNS overseer ICANN to make a decision on the .org sale before the end of the month. But that looks increasingly unlikely following an aggressive letter from ICANN’s external lawyers last week insisting ICANN will take as much time as it feels necessary to review the deal.

The overall lack of transparency around the $1.13bn deal has led California’s Attorney General to demand documents relating to the sale – and ISOC’s chapters are demanding the same information as a pre-condition to any sale in their proposed advice to the ISOC board.

That information includes: full details of the transaction; a financial breakdown of what Ethos Capital intends to do with .org’s 10 million internet addresses; binding commitments on limiting price increases and free speech protections; and publication of the bylaws and related corporate documents for both the replacement to the current registry operator, PIR, and the proposed “Stewardship Council” which Ethos claims will give .org users a say in future decisions.


“There is a feeling amongst chapters that ISOC seems to have disregarded community participation, failed to properly account for the potential community impact, and misread the community mindset around the .ORG TLD,” the Chapters Advisory Council’s proposed advice to the ISOC board – a copy of which The Register has seen – states.

Although the advisory council has no legal ability to stop ISOC, if the proposed advice is approved by vote, and the CEO and board of trustees push ahead with the sale regardless, it could have severe repercussions for the organization’s non-profit status, and would further undermine ISOC’s position that the sale will “support the Internet Society’s vision that the Internet is for everyone.”


That lack of transparency was never more clear than when the ISOC board claimed to have met for two weeks in November to discuss the Ethos Capital offer to buy .org, but made no mention of the proposal and only made ISOC members and chapters aware of the decision after it had been made.

With a spotlight on ISOC’s secretive deliberations – and with board members now claiming they are subject to a non-disclosure agreement over the sale – the organization has added skeleton minutes that provide little or no insight into deliberations. It is not clear when those minutes were added – no update date is provided.

“The primary purpose of the Chapters Advisory Council shall be to channel and facilitate advice and recommendations to and from the President and Board of Trustees of the Internet Society in a bottom up manner, on any matters of concern or interest to the Chapter AC and ISOC Chapters,” reads the official description of the council on ISOC’s website.

With Ethos having failed to broker a secret deal, and ICANN indicating that it will consider the public interest in deciding whether to approve the sale, if ISOC’s advisory council does vote to advise the board not to move forward with the sale, the Internet Society will face a stark choice: stick by the secretive billionaires funding the purchase of .org with the added risk of blowing up the entire organization; or walk away from the deal.

Source: Revolution, comrades: Internet Society told to halt .org sale… by its own advisory council • The Register

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