Probably the last centralized point on the Internet is the system allocating domain names. Currently, domain names are assigned by Network Solutions, Inc., (NSI) a private company chartered by the National Science Foundation. This process is overseen by the Internet Assigned Numbers Authority (IANA), which in turn is operated by the Information Sciences Institute (ISI) of the University of Southern California (USC). The IANA is funded by the Defense Advanced Research Projects Agency (DARPA).n1

In June 1998, The U.S. Government released a White Paper stating that technical administration of domain names will be tansferred to the private sector by September 30, 2000. The paper asked the industry to take responsibility in creating a new non-profit organization from "among the diverse parties that have a stake in how domain names, Internet numbers and other Internet identifiers for the Internet are mananged."n2

Because this process has a fairly unique position as the last remaining “point of control” on the Internet, debates about changing the way by which domain names are assigned and administered often include many collateral issues like trademark, copyright, and Internet governance. No definite consensus has been reached about the best way to handle domain name issues. After several International Forum on the White Paper conferences, however, most agree that the new structure for the assignation and administration of domain names should be done in such a way as to protect the integrity of the Internet, promote competition, address proprietary rights, and allow private industry self-regulation.

In November 1999, Congress enacted the Anticybersquatting Consumer Protection Act.   It found that the unauthorized registration or use of trademarks as Internet domain names or other identifiers of online locations (commonly known as `cybersquatting')-- (1) results in consumer fraud and public confusion as to the true source or sponsorship of products and services; (2) impairs electronic commerce, which is important to the economy of the United States; and (3) deprives owners of trademarks of substantial revenues and consumer goodwill.   The first appellate ruling concerning the new act is believed to be Sporty Farms, LLC v. Sportsman's Market, Inc.

n1. See Larry Irving, Testimony before the House Committee on Science Subcommittee on Basic Research, (September 25, 1997),
available at http://www.ntia.doc.gov.

n2. Internet Stakeholder Associations to Advance White Paper Process, International Forum on the White Paper, (June 19, 1998), available at http://www.ifwp.org.