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Proposed Terms
- To: <biz-tld-agreement@xxxxxxxxx>
- Subject: Proposed Terms
- From: "Sean O'Brien" <sean@xxxxxxxxxxxxxxxxxxxxx>
- Date: Sun, 27 Aug 2006 16:44:32 -0400
Dear ICANN Board,
The proposed TLD Registry Renewal Contracts for .info, .biz, and .org domains
are flawed in logic by allowing a registrar to set arbitrary rates without
price caps at whatever the market will bear. This will drastically change the
economics of an industry that is operating quite well currently. With this
new "Extortion Pricing" allowed, .org non-profits could find it nearly
impossible to operate. In addition, many .info sites are non-commercial and
informational only, and could suffer drastically. For example, let's say
mortgages.info provides free high-quality information to web users worldwide
regarding mortgages/loans. What happens if registrars decide to charge
mortgages.info $10,000 annually for their domain? The site could theoretically
be informational only and not able to cover this cost. In addition, if this
prevents the site from operating, then we all have lost a valuable .info site
in this example!
Many people have based their business and/or living around investing into
domain names, with the expectation that pricing would be affordable and
regulated. By breaching this expectation, the decisions of millions of people
were made under a false pretense, and everyone suffers, except registrars, who
already make money selling & registering domains at current prices. The
incremental cost to a registrar to register/re-register a domain is virtually
zero (maybe some server bandwidth for about 5 minutes, but it pales in
comparison to the margin they make). The gains (for registrars) are severely
outweighed by the losses (for domain owners and web users around the world).
The new change basically provides a way for registrars to extort money from
high profile domain owners. In addition, it would serve as a negative force
against economic growth. Who would want to put up a website based on a domain
that is subject to extortion like pricing? If the entrepreneur becomes
succesful someday, they could face extortion and suffer margin losses that are
beyond control. This is like the government charging property taxes based on
the person's net worth who owns the property, rather than at a flat percentage
rate to all people. Imagine New York charged Donald Trump 50% property tax on
his properties, because they are "prime real estate" (like prime domains are),
and because they figured "he could and would" pay it. This would cause
absolute tyranny, and its virtually the same type of thing the new rules
propose to allow.
Obviously if this occurs, any domain owner (including myself) with legitimate
assets that face extortion like pricing would surely file lawsuits against
ICANN and Registrar both, due to the injustice created by these proposed
policies. Please save us all a day in court and costly legal fees, and leave
things the way they are. Working.
Sincerely,
Sean O'Brien
Managing Partner
Columbus Web Design
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