Internet Society

President’s Report

Thus far in 1998, it would seem that with each passing month, the level of intensity and the volume of issues and activities requiring the attention of ISOC, increases. We have been deeply involved in the issues relating to the Internet Domain Name System (DNS) for over two years. Yet, in the past few months, even that activity has escalated dramatically. Another example is the suit to force the liberation of the term "Internet" from the trademark claims of Honor Technologies, Inc. This has been underway for several years and that, too, has become more focused and intense. Issues of content, privacy, taxation, intellectual property, and many aspects of Internet commerce are demanding more and more detailed attention.

At the same time, we are learning that conducting international conferences has become a more challenging task than ever before. Today there are virtually hundreds of Internet conferences and, while our conference may be the premier conference with regard to its content, differentiating it from the myriad of other conferences is difficult. Finding sponsors is a formidable task, and assuring sufficient registrations to reach critical mass adds to the challenge. Our Network Training Workshop (NTW) for developing countries is still a mainstay of ISOC education efforts and this year we have ambitiously committed to conduct the NTW in two continents and four languages, simultaneously.

Our chapter activity is currently at its peak. Not only are there more active chapters than ever before, but there is more interest in new chapters than ever before. Chapters that are in operation have become more active, are communicating with HQ on day-to-day issues, are coordinating amongst each other - as a prime example, look at the ISOC-EU activity. The French chapter has been a leader in the effort to mold the opinions directed toward DNS policies; the Netherlands chapter has established a benchmark in chapter financing. Our chapters are becoming more assertive (positively) and influential than ever before. This bodes well for the future of ISOC and the strengthening of its individual membership.

ISOC efforts to foster self-governance as the foundation for the continuance of the Internet phenomenon is at its pinnacle. At the same time, we are experiencing significant resistance from factions who either have major financial incentive, or who would seem to misunderstand the meaning and intent of our actions. Fortunately, in the latter case, time is an ally and the wisdom of our principles, goals and objectives, programs and initiatives, as well as the transparency in our actions is winning the day.

As a direct result of our increased activity and the intensity of our pursuit, ISOC continues to strengthen its influence in public policy issues. Our stature as the organization capable of effecting international coordination and collaboration in complex issues confronting the Internet, is widely recognized and accepted.

This year we signed a Memorandum of Understanding with the European Commission, called the ICT MoU. ICT stands for Information and Communication Technology and the ICT MoU gives the opportunity to cooperate with European industry and government in the pursuit of issue resolution. [See the ICT web site for more details http://wwwold.dkuug.dk/ict/backgrnd/mou.html.]   The ICT (European Commission) sponsored the recent meeting of our European chapters in Brussels and has been a major influencing factor in the transformation of the US government Green Paper to an internationally acceptable document, evidenced in the White Paper released 5 June 1998.

With the release of the White Paper by the US government, they have turned over the solution of the issues associated with the administration of domain names, IP allocation, and other protocol and parameter assignment, to the private sector. This resulted in a flurry of activity by the various factions who have been involved for the past two years. Independent meetings were called to discuss and debate these issues. ISOC was catalytic in the bringing together many disparate factions to work together toward an international consensus. Now, meetings will be coordinated under an umbrella organization called the International Forum on the White Paper (IFWP). There are at least three meetings planned or already held: Americas (Reston), Europe/Middle East/Africa (Geneva), Asia/Pacific (Singapore). Additionally there was an EC sponsored conference on the subject, with heavy ISOC involvement, held in Brussels. For the first time, it would appear that "DNS" issues have a chance at reaching an international consensus on their resolution!

Our suit regarding the disposition of the registration for the name "Internet" looked as though it would reach a surprising and welcome solution. The original registrants, Internet, Inc., had been bought by Honor Technologies, Inc. As time has passed, our claim that the name "Internet" was generic and could not be trade marked, seemed to become obvious to our opponents. By the time Honor Technologies came into the picture, the Internet was clearly generically used worldwide. Honor wanted nothing more to do with the suit and was about to agree to a settlement wherein they would give up claims to the name, as we proposed! Then, in the last few weeks, Microsoft paid $5,000,000 to another firm in order to use the term "Internet Explorer." Bingo! Honor must have thought, "Hmmmmm, there’s money in this." Shortly after the public disclosure by Microsoft, they wrote to say they were not accepting our proposal for settlement and would proceed with discovery! At this point it is unclear if a settlement can be reached.

We are about to begin the INET’98 conference. Obviously, it is premature to report on the success of that conference from a financial standpoint; however, the program promises to be the finest we have conducted. After an early period where the conference financing seemed in doubt, sponsorships were ultimately secured and the financial foundation for the conference appears solid. The final success will be determined by the number of registrants. At this time it appears that we will meet the budgeted number of 1,200 paid registrants. Somewhat by contrast, the NDSS conference in San Diego earlier this year showed a surplus while not reaching the budgeted number of registrants. In any event, it will be prudent to investigate whether we should look to a professional conference management organization to partner with for future conference management. We can be grateful for the excellent work of Torryn Brazell and Lynn St. Amour for making the INET’98 conference a reality.

ISOC publications continue their positive momentum. "OnTheInternet" is produced on schedule and provides timely and provocative reading; the ISOC Forum is a convenient repository of information on what’s happening and where is it happening. Our web site is in full swing and is updated daily. It is recognized as one of the most easily navigated sites and continues to get better.

We met our financial goal for a solid foundation of recurring revenue to support base line requirements and then raised that goal by nearly 30%, in order to more quickly reach a balance sheet fund balance in line with 6 to 9 months reserves. Cash flow has improved each month for the past year and each months’ results have beaten the previous months’ projections. Due to the need to accrue revenue on an earned basis, for Organizational memberships, the ability to increase the fund balance quickly is limited. This, in spite of a good cash position. However, with a very successful INET conference, we could immediately effect a good balance sheet fund balance, because the revenue from the INET conference can be recognized immediately as earned income. This clearly amplifies the importance for a financially successful conference.

While there is much to be done, ISOC is on track financially and is well positioned to tackle the next challenges.