Part of the contract provides VeriSign with a "presumptive right of renewal" for the dotcom registry - which effectively gives the company a permanent monopoly over the most famous names on the internet.

As owner of the registry, VeriSign can charge a fixed sum every time a dotcom domain is registered or renewed. At the moment this stands at $6 per year - but VeriSign will be allowed to increase this fee by 7 per cent each year under another highly controversial contract clause.

With 32 million dotcoms in existence, this type of business is one of the most profitable on the internet.

ICANN first mooted plans to give VeriSign the presumptive renewal in October but was faced with a barrage of criticism from across the internet community, which claimed it was anti-competitive. Yesterday's 7 per cent rise was just as vigorously denounced, especially at a time when other registry owners are reducing prices.

After heated exchanges at its latest meeting in Vancouver in November, ICANN promised to review the contract and make appropriate changes. The revised contract contains only minor changes however, sparking one observer to comment: "Lipstick on a pig doesn't make me want to kiss it".

The presumptive right is retained and the price rise clause changed to VeriSign has the right to impose its price rise for four of the six years without review, and for the other two years if it shows "legitimate expense".

This is completely inadequate, according to the Coalition for ICANN Transparency (CFIT), a new organisation set up in response to the contract. John Berard, a spokesman for CFIT said the revised contract has sought to "create the appearance of movement" but did not tackle its primary concerns.

The organisation, which is suing ICANN in the United States and has sparked an EU investigation into the contract, will "pursue every option we have", Mr Berard said.

That threat was reiterated by another interested party. "If you do sign this deal I will spend my very last dime on an additional lawsuit," said businessman John Jeffers on ICANN's online comment board.

Mr Jeffers' business selling expired domain names will effectively be wiped out as a result of another contract clause that grants VeriSign control of all expiring domain names - now the most profitable part of the domain name market.

ICANN finds itself in a difficult position. It is desperate to sign the agreement as it will mean the end to a series of ruinous lawsuits that VeriSign has taken out against it. VeriSign has also agreed to accept ICANN as the de facto internet authority in the agreement - something that will heal an historical split at the top of the internet.

ICANN also has its hands tied because the contract negotiations involve the United States Government's Department of Commerce (DoC) as a third party. Not only does VeriSign have very good relations with the DoC, but the DoC remains in overall control of ICANN. With its own contract with the DoC expiring later this year, ICANN is walking on broken glass.

What most concerns internet users is the idea that ICANN may try to force the new agreement through in a telephone vote by members of the ICANN board in early March, rather than wait for a public meeting at the end of that month in New Zealand.

"This issue is much too important to be decided in private," said Mr Berard, adding that the whole affair is likely to act as a recruitment poster for CFIT in its campaign for greater transparency at the top of the internet.

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