ICANN has just approved the renewal of the .Net contract with VeriSign (VRSN)

Here is the resolution which all Board members voted in favor of, with one abstention:

Resolution on Renewal of the dot net agreement.

Whereas, the current dot net registry agreement is due to expire on 30th June 2011.

Whereas,, section 4.2 of the current dot net registry agreement provides that the agreement shall be renewed upon the expiration of the initial term so long as certain requirements are met and that upon renewal, in the event that certain terms of this agreement are not similar to the terms generally in effect in the registry agreements of the five largest gTLD’s, determined by the number of domain name name edge registrations on the management at the time of renewal, renewal is shall be upon terms reasonably necessary to represent the terms of this agreement similar to such terms in the registry agreement for those other gTLD’s.

Whereas, the proposed dot net renewal registry agreement includes modified provisions to bring the dot net registry agreement in line with other comparable agreements example biz, com, info, org, including modifications to terms such as traffic data, limitation of lie liability, indemnification, assignment and notice provisions.

Whereas, ICANN commenced a prompt period on the propose the dot net renewal registry agreement on 11 April 2011, that was open through 10 May 2011.

Whereas,, ICANN received 186 comments addressing subjects such as the renewal of the agreement in general, the process for competition review of new registry services, rights protection mechanisms, use of traffic data, the new provisions with respect to special programs for registrars in underserved geographies, registry fees and registration pricing and a summary and analysis of the comments was prepared.

Whereas, the .Net agreement provides for $.75 registry-level transaction fee and ICANN has used the funds to support developing country internet communities to participate in ICANN, enhancing security and stability of the dns, and for general operating funds, ICAN commits to provide annual reporting on the use of these funds from dot net transaction fees.

Whereas,, additional changes were made in response to public comment.

Resolved, the .Net registry agreement is approved and the CEO and the general counsel are authorized to take such actions as appropriate to implement the agreement as so revised.

Under the contract VeriSign can increase the registration fees of .Net domains by 10% per year.