In attempting to undercut Verisign’s monopoly over the internet’s domain name system, Dechert client Afilias participated in an auction for the right to operate .WEB, the internet domain best positioned to compete against .COM. After Afilias lost out to a higher bidder, it emerged that the rival had secretly been directed by Verisign and had used Verisign’s funds to finance its bid.
On Afilias’ behalf, Dechert commenced arbitration against the Internet Corporation for Assigned Names and Numbers (ICANN), the internet’s de facto regulator, before the International Centre for Dispute Resolution (ICDR), asserting that ICANN had failed to take action against Verisign despite being aware of Verisign’s subterfuge and violation of ICANN’s bidding rules.
In May 2021, an ICDR panel agreed, determining unanimously that ICANN had failed to act fairly, objectively and transparently, and directing ICANN’s board to conduct an objective review of Afilias’ complaints and determine the consequences of any illegal violations that occurred. The victory is Dechert’s fourth consecutive win against ICANN. The earlier arbitrations prompted far-reaching changes to ICANN’s accountability framework and established the important precedent that international law applies to its activities.
