Comments on Proposed Changes to the Registry Agreement

["Michael.Kroll" <Michael.Kroll@xxxxxxxxxx>]

Target Domain Holdings, LLC ("TDH"), a subsidiary of Target Corporation, 
appreciates the opportunity to comment on the proposed changes to the Revised 
New gTLD Registry Agreement posted on February 5, 2013.  As with other 
commenters, however, TDH finds it disconcerting that such fundamental changes 
are being proposed at this late date.   When TDH was deciding whether to 
participate in the gTLD application process, it analyzed the Registry Agreement 
in the Applicant Guidebook and relied on the more balanced approach included in 
the Registry Agreement found there.   Last minute, extremely controversial, and 
unbalanced changes to such an important agreement create unnecessary cost and 
uncertainty and are likely to delay the new gTLD program further.
Even if these changes had been proposed in a more appropriate manner, however, 
two of them would not be acceptable.
First, through proposed changes to Section 7.6(c), ICANN would give itself a 
unilateral right to amend the gTLD Registry Agreement.  TDH endorses the 
position of the gTLD Registries Stakeholder Group ("RySG"), in Section I of its 
February 26, 2013 comment, and opposes this proposal.  Applicants should not be 
forced to bind themselves to an agreement that can be changed at ICANN's sole 
discretion.  The uncertainty that would result could only hamper the future 
success of the whole new gTLD program.
Second, ICANN should not put into effect its proposed addition of Section 1 of 
Specification 11 to the Registry Agreement.  TDH Endorses Section II of the 
February 26 RySG comment, which deals with this matter.  Requiring Registry 
Operators to agree to use only ICANN-accredited registrars that have executed a 
Registrar Accreditation Agreement to be finalized and approved by the ICANN 
Board at some point later this year raises problems similar to those afflicting 
the proposed changes for Section 7.6(c).  Intentionally or not, ICANN would be 
giving itself power to make decisions unilaterally, upset settled expectations, 
and act without community input.  This is inconsistent with ICANN's core values.
TDH takes no position at this time on the substance of other proposed changes.
Thank you,
Michael Kroll

Michael Kroll | Sr. Counsel, Brands | *Target | 1000 Nicollet Mall, TPS 3165 | 
Minneapolis, MN  55403 | 
michael.kroll@xxxxxxxxxx<blocked::mailto:michael.kroll@xxxxxxxxxx> | 
612.696.2249 (ph) | 612.696.3399 (fax)