Letter from Yasuo Sakamoto to Stuart Lynn (30 January 2002)

Ministry of Public Management, Home Affairs,
Posts and Telecommunications
1-2 Kasumigaseki 2-chome
Chiyoda-ku Tokyo
100-8926 Japan

30 January 2002

Dr. M. Stuart Lynn
President and Chief Executive Officer
Internet Corporation for Assigned Names and Numbers
4676 Admiralty Way, Suite 330
Marina del Rey, CA 90292

cc: Louis Touton
IANA Root Management

Dear Dr. Lynn:

I am writing to you on behalf of the Japanese government in response to the IANA's 25 December 2001 inquiry regarding the redelegation of the .jp top level domain.

The IANA's inquiry enclosed a 3 December 2001 "Request for Redelegation of .JP Top Level Domain and ccTLD Sponsorship Agreement" sent to you by the Japan Registry Service Co., Ltd. (JPRS). That request asked that ICANN redelegate the .jp top level domain to JPRS and begin procedures for executing a ccTLD Sponsorship Agreement between ICANN and JPRS. In the 25 December inquiry, the IANA requested the Japanese government's view on the appropriateness of redelegation to JPRS.

The Internet, with its rapid development, has now become a basic social infrastructure, and, as a result, domain names have become essential tools for the large number of people who depend on the Internet. The White Paper on Information and Communications in Japan released in July 2001 states that the number of Internet users in Japan has reached 47 million and is expanding rapidly. Therefore, the appropriate administration of Internet resources, such as domain names, has become an extremely critical issue to ensure that this large number of people can utilize the Internet safely and without undue confusion.

Japan recognizes ICANN's function to establish, disseminate and oversee implementation of the technical standards and practices that relate to the operation of the global domain-name system, and considers ICANN to be the appropriate international entity to oversee the technical coordination of the Internet in a manner that will preserve it as an effective and convenient mechanism for global communication. I appreciate the significant role that ICANN has played in the establishment of systems for Internet resources and fully approve of the standing ICANN principle of decision-making by community consensus. In this regard, the followings are the reply to your letter.

1. JPNIC and JPRS

The .jp top level domain has been administered in the interests of the Japanese Internet community since Dr. Jun Murai, an assistant at the Computer Centre of the University of Tokyo at that time, received the delegation from the Information Sciences Institute of the University of Southern California on 5 August 1986. Currently, the .jp top level domain is administered by the Japan Network Information Center (JPNIC), where Dr. Murai is President. JPNIC was established in April 1993 as a self-financed private entity to carry out the management and administration of the .jp top level domain. Since March 1997, after receiving governmental approval, JPNIC has been carrying out these services as a public-service organization and has been fulfilling the obligations of administering the .jp top level domain with due diligence up until this time. Because JPNIC will continue to coordinate Japanese domain name policies, including appropriate administration methods for the .jp top level domain, from the standpoint of a public-service organization, I believe that it is essential to collaborate with JPNIC as a representative body of the Japanese Internet community.

On 22 December 2000, the JPNIC approved at its 11th general meeting, proposals to: establish a new company to carry out the management and administration of the .jp top level domain; transfer the management and administration of the .jp top level domain from JPNIC to this company; and begin preparation for this company to enter a ccTLD Sponsorship Agreement with ICANN as the sponsoring organization of the .jp top level domain. In accordance with this approval, JPRS was established as a private entity on 26 December 2000. JPRS has been established against a backdrop of sweeping changes to the environment surrounding the .jp top level domain such as rapid Internet development and the intensification of competition within Japan between the .jp top level domain and gTLDs such as .com. However, in coming to this decision, JPNIC undertook an exhaustive investigation inviting opinions and ideas from a wide range of concerned parties and took extensive measures to ensure community consensus such as providing information, holding presentations and establishing a public comment forum. Therefore, I understand it is appropriate that the decision to transfer the .jp top level domain management and administration to the newly established JPRS was made with the consensus of the Japanese Internet community.

JPRS has served as the operator of the .jp top level domain entrusted by JPNIC stably and without particular difficulties since 1 February 2001 to date. On the other hand, both JPNIC and JPRS continued examining the process to transfer of the management and administration of the .jp top level domain and to conclude the ccTLD Sponsorship Agreement by soliciting opinions from the Internet community. On 9 November 2001, the "Memorandum for the Transfer of Management and Administration of the .JP Top Level Domain" (Memorandum) was concluded between them and, on 12 November, the details were reported to me (See Attachment A). In addition, public comments were invited through the JPNIC Web site from 16 to 30 November 2001, regarding the redelegation procedures, based on the Memorandum, which led to concluding the ccTLD Sponsorship Agreement and the transfer agreement of the management and administration of the .jp top level domain. The comments submitted during this period were answered or reflected in the redelegation procedures and thus the formation of decisions has been carried out with the consensus of the Japanese Internet community. I believe that these decisions by community consensus should be respected.

2. JPRS's appropriateness

On 23 February 2000, the Governmental Advisory Committee (GAC) of ICANN, in which the Ministry of Public Management, Home Affairs, Posts and Telecommunications represents the Japanese government as the accredited representative, adopted the "Principles for the Delegation and Administration of Country Code Top Level Domains" (GAC Principles). As you know, the Japanese government has participated in the GAC since its inception in March 1999 and supports the GAC as the appropriate vehicle for governments to participate in the ICANN process. In particular, the Japanese government participated in the development of the GAC Principles, and has endorsed them as sound best-practices for the delegation and administration of ccTLDs. I would like to examine whether or not the Memorandum conforms to the GAC Principles.

(1) Responsibilities of JPRS

Clause 9 of the GAC Principles lists necessary particulars to justify the delegation to an entity to become a ccTLD sponsoring organization. "Responsibilities of JPRS" in Article 6 of the Memorandum stipulates the responsibilities that should be complied with to execute the management and administration of the .jp top level domain in an appropriate manner. I would first like to examine these details based on the GAC Principles.

Article 6. Responsibilities of JPRS

1. JPRS acknowledges and understands that the management and administration of the .jp top level domain concerns public interest, and shall operate the management and administration of the .jp top level domain for the purpose of contributing to the sound development of the Internet community in Japan, as well as the global Internet community.

• Corresponds to GAC Principle 9.1.2

2. For the purpose of securing public interest, "JP Domain Name Advisory Committee" shall be established within JPRS.

• Corresponds to GAC Principle 9.1.2

3. JPRS agrees, for the purpose of securing public interest, to comply with the procedures administered by JPNIC and the Governmental Authority as set forth in Article 7.

• Corresponds to GAC Principles 9.1.2 and 9.1.3

4. JPRS shall adopt the JP Domain Name Dispute Resolution Policy established by JPNIC and implement the dispute resolution procedures thereof.

• Corresponds to GAC Principle 9.1.6

5. JPRS confirms that the management and administration of the .jp top level domain shall be operated in trust for the public interest and that JPRS shall not claim any property right with respect to the .jp top level domain itself.

• Corresponds to GAC Principle 9.1.4

6. JPRS shall comply with policies established under the ccTLD Sponsorship Agreement for the management and administration of the .jp top level domain.

• Corresponds to GAC Principle 9.1.7

7. JPRS shall not assign its status of the delegee as the manager and administrator of the .jp top level domain to any third party.

• This ensures that the status of delegee cannot be transferred to a third party without formal procedures involving the Japanese Governmental Authority, JPNIC and ICANN. (Corresponds to GAC Principle 4.1)

8. JPRS shall not sub-contract a part or all of the technical operations of the ccTLD registry without ensuring that the sub-contractor has the technical qualifications required by ICANN, and informing ICANN.

• Corresponds to GAC Principle 9.2

9. In case of sub-contracting of technical operations of the ccTLD registry or the administrative and management functions of the ccTLD, the sub-contract agreement must state that the delegation itself is an exercise of public right, and not an item of property.

• Corresponds to GAC Principle 9.3

10. JPRS shall enter into an agreement with the escrow agent approved under Article 7, Paragraph 7 set forth below and escrow the registry data therewith.

• This ensures that JPRS will duly escrow registry data. (Corresponds to GAC Principle 10.2.3)

11. JPRS shall continue to operate the management and administration of the .jp top level domain until re-transfer is determined under the procedures set forth in Article 7, Paragraph 6.

• Corresponds to GAC Principle 9.1.1

12. If the succeeding transferee is appointed, JPRS shall transfer all the relevant registry data to the succeeding transferee.

• Corresponds to GAC Principle 9.1.5

13. JPRS shall comply with relevant laws and regulations in Japan, international law and international conventions in the operation of the management and administration of the .jp top level domain.

• Corresponds to GAC Principle 9.1.3

14. The provisions of paragraphs 1 through 13 of this Article shall remain applicable in case JPRS moves its principal office to a location outside of Japan.

• Corresponds to GAC Principle 9.1.9

As shown above, Article 6 "Responsibilities of JPRS" of the Memorandum covers the particulars of GAC Principles 9.1.1 to 9.1.7, 9.1.9 and 9.2 to 9.3. The intent of GAC Principle 9.1.8, not covered in the Memorandum, is limited to cases where a local presence of the registrant is not required. It is considered that this principle has no direct influence on .jp domain names, as they require a local presence. Also, Article 6(6) provides that JPRS would in any event comply with ICANN policies to the extent provided in the ccTLD Sponsorship Agreement between JPRS and ICANN. Therefore, I believe that if JPRS executes its management and administration duties based on the "Responsibilities of JPRS" given in the Memorandum, it can appropriately carry out services as a .jp top level domain management and administration entity.

(2) Ensurance of Public Interest in the .jp top level domain

In addition to the responsibilities of JPRS stipulated in Article 6 of the Memorandum, Article 7 spells out the "Securement of Public Interest" in the .jp top level domain as a measure to guarantee fairness in the interests of the Japanese Internet community. Specifically, Article 7 stipulates that the Japanese Governmental Authority and JPNIC which, as mentioned previously, has fulfilled the obligations of the management and administration of the .jp top level domain with due diligence until now and will continue to act on behalf of the Japanese Internet community, will examine cooperatively whether or not JPRS and the .jp top level domain management and administration by JPRS comply with the responsibilities set out in Article 6. If JPRS violates any Article 6 responsibility, necessary measures such as correction directive and, in case of continuous breach, (re-)redelegation shall be taken by the Japanese Governmental Authority and JPNIC. I believe that this mechanism can ensure public interest in the .jp top level domain, thereby serving the interests of the Internet community.

3. Conclusion

The results of the above examination of the procedural steps related to the redelegation of the management and administration of the .jp top level domain are as follows:

(1) It is believed that JPNIC and JPRS have followed the procedural steps regarding the redelegation of the management and administration of the .jp top level domain in an appropriate and transparent manner with due regard to the wishes of the Internet community while publicizing their intentions. This decision is believed to have been made with the consensus of the Japanese Internet community.

(2) JPRS has served as the operator of the .jp top level domain entrusted by JPNIC stably and without particular difficulties since 1 February 2001 to date.

(3) The responsibilities that JPRS must consider in proceeding with the management and administration of the .jp top level domain are explicitly stated in the Memorandum in line with the GAC Principles.

(4) It is expected that a mechanism can be constructed through the cooperation and coordination of ICANN, the Japanese Governmental Authority and JPNIC to ensure the appropriate operations of JPRS.

From these results, I believe that JPRS is an appropriate entity for the redelegation of the management and administration of the .jp top level domain under the provision that JPRS complies with the Memorandum in its management and administration activities.

4. Miscellaneous

In view of the dual responsibilities, from different perspectives, of the Japanese Governmental Authority and ICANN for ensuring that JPRS operates appropriately as delegee of the .jp ccTLD, I believe it is vital that there be close government/JPNIC/ICANN coordination in connection with the redelegation. In this regard, I suggest the following procedures be followed in connection with the delegation of the .jp top level domain:

(1) Coordination of Policy Requirements

The GAC Principles recommend that ICANN should ensure, through an appropriate communication with the delegee, conformity to "ICANN developed policies concerning: interoperability of the ccTLD with other parts of the DNS and Internet; operational capabilities and performance of the ccTLD operator; and the obtaining and maintenance of, and public access to, accurate and up-to-date contact information for domain name registrants." (Clause 10.2.5.) There is the theoretical possibility that, in seeking to ensure that JPRS operates the .jp top-level domain in the interest of the Japanese community, the Japanese Governmental Authority and JPNIC might give JPRS directions that in some way conflict with ICANN policies. Such a conflict would be undesirable, and all parties should work together to minimize the possibility of such a conflict. In this regard, the Japanese Governmental Authority and JPNIC intend to alert ICANN upon discovering a possibility of conflict and to seek to coordinate their supervision of JPRS with that of ICANN through appropriate means, with the goal of avoiding any situation where the JPRS faces conflicting government/JPNIC/ICANN requirements. I understand and appreciate that ICANN intends to do likewise.

(2) Termination Procedures

The GAC Principles envision that a delegee's status may be terminated in the event that it breaches the requirements of its communications with the relevant governmental authority and ICANN (Clauses 7.1 and 7.3). In accordance with Article 7, Paragraphs 3 to 5, of the Memorandum, the decision regarding termination will be taken by the Japanese Governmental Authority and JPNIC based on mutual consultation, and will be notified to ICANN by the Japanese Governmental Authority. I believe this procedure should be reflected in the coming ccTLD Sponsorship Agreement.

(3) Designation of a Successor Delegee

The GAC Principles recommend that, in the event that a delegation is terminated, a successor delegee should be designated by the relevant governmental authority, subject to that designated successor's ability to meet the technical and other requirements embodied in an ICANN-delegee communication (Clauses 3.5, 7.3, and 7.4.). The GAC Principles envision that the delegation should then be reassigned by ICANN in coordination with the relevant governmental authority (Clause 7.1). In accordance with Article 7, Paragraph 6, of the Memorandum, the decision regarding the designation of a successor delegee will be taken by the Japanese Governmental Authority and JPNIC based on mutual consultation and will be notified to ICANN by the Japanese Governmental Authority. I believe the ccTLD Sponsorship Agreement should make allowance for this procedure as well.

5. In closing

The process above has led the Japanese government to endorse JPRS as the appropriate entity for managing and administering the .jp top level domain under the provision that JPRS complies with the Memorandum in its management and administration activities. I trust that the ICANN will accept this letter of endorsement and begin procedures for the redelegation of the .jp top level domain to JPRS and the agreement with JPRS promptly. In addition, in response to the 12 November 2001 letter reporting the execution of the Memorandum between JPRS and JPNIC, I attach a copy of letters addressed to them, on this endorsement and of my acknowledgement of the Memorandum, as the governmental communications (See Attachment B). If you wish to discuss any aspect of the above endorsement of JPRS, please do not hesitate to contact either Kaori Ito of this ministry or myself.

Finally, I would like to conclude this letter by expressing my sincere respect for the dedicated involvement of current .jp administrator and an ICANN Director, Dr. Jun Murai, and my expectation of his continuing contributions to the development of the Internet in Japan and worldwide.

In accordance with GAC Principle 8.1, the points of contact for the Japanese Governmental Authority, JPNIC and proposed delegee are given below.

(Japanese Governmental Authority)
Kaori Ito, Deputy-Director, Computer Communications Division, Telecommunications Bureau, Ministry of Public Management, Home Affairs, Posts and Telecommunications
2-1-2 Kasumigaseki, Chiyoda-ku, Tokyo 100-8926
TEL: +81-3-5253-5854
FAX: +81-3-5253-5855
E-mail: k2-itou@soumu.go.jp

(JPNIC)
Jun Murai, President, Japan Network Information Center
Kokusaikogyo-Kanda Building 6F, 2-3-4 Uchikanda, Chiyoda-ku, Tokyo 101-0047
TEL : +81-3-5297-2311
FAX : +81-3-5297-2312
E-mail : jun@nic.ad.jp

(Proposed delegee)
Hirofumi Hotta, Director
Japan Registry Service Co., Ltd.
Fuundo Building 3F, 1-2 Kanda-Ogawamachi, Chiyoda-ku, Tokyo 101-0052
Tel: +81-3-5297-2571
Fax: +81-3-5297-2572
E-mail: hotta@jprs.jp

Best Regards,

Yasuo Sakamoto
Director
Computer Communications Division,
Telecommunications Bureau,
Ministry of Pubic Management, Home Affairs, Posts and Telecommunications
Japan

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