Section 2.7b states: "Registrar’s registration agreement with each Registered Name Holder, shall also include the following: (i) a provision prohibiting the

Section 2.7b states: "Registrar’s registration agreement with each Registered Name Holder, shall also include the following: (i) a provision prohibiting the Registered Name Holder from distributing malware, abusively operating botnets, phishing, pharming, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law and providing (consistent with applicable law and any related procedures) consequences for such activities, including suspension of the registration of the Registered Name (ii) a provision that requires the Registered Name Holder to acknowledge and agree that Verisign reserves the right to deny, cancel, redirect or transfer any registration or transaction, or place any domain name(s) on registry lock, hold or similar status, as it deems necessary, in its unlimited and sole discretion: (1) to comply with specifications adopted by any industry group generally recognized as authoritative with respect to the Internet (e.g., RFCs), (2) to correct mistakes made by Verisign or any Registrar in connection with a domain name registration, (3) for the non-payment of fees to Verisign; (4) to protect against imminent and substantial threats to the security and stability of the Registry TLD, System, Verisign’s nameserver operations or the internet, (5) to ensure compliance with applicable law, government rules or regulations, or pursuant to any legal order or subpoena of any government, administrative or governmental authority, or court of competent jurisdiction, and/or (6) to stop or prevent any violations of any terms and conditions of this Agreement, the Operational Requirements, or pursuant to Verisign’s Registry Agreement with ICANN; and (iii) a provision requiring the Registered Name Holder to indemnify, defend and hold harmless Verisign and its subcontractors, and its and their directors, officers, employees, agents, and affiliates from and against any and all claims, damages, liabilities, costs and expenses, including reasonable legal fees and expenses arising out of or relating to, for any reason whatsoever, the Registered Name Holder's domain name registration. The registration agreement shall further require that this indemnification obligation survive the termination or expiration of the registration agreement." So basically Verisign has full authority to do whatever it wants regarding .net TLD domain names in order to prevent crimes and bad behavior, comply with laws, correct errors (who defines what is an error), and collect fees. Many people are upset with these proposed changes because there are no recourse procedures outlined for domain holders. If you hold a .net domain which you paid for and have been using for years and they decide that you are doing something they do not like or someone else claims ownership rights for your domain and convinces Verisign that they should have it, your domain can be forcibly transferred from you. If you disagree with what they do, too bad.