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[gnso-consumercci-dt] Consumer Metrics: notes from presentation to GAC, 23-Jun-2012

  • To: "gnso-consumercci-dt@xxxxxxxxx" <gnso-consumercci-dt@xxxxxxxxx>
  • Subject: [gnso-consumercci-dt] Consumer Metrics: notes from presentation to GAC, 23-Jun-2012
  • From: Steve DelBianco <sdelbianco@xxxxxxxxxxxxx>
  • Date: Sun, 24 Jun 2012 08:32:11 +0000

For those who missed the GAC – GNSO meeting yesterday, the Audiocast is 
here<http://audio.icann.org/meetings/prague2012/gac-gnso-23jun12-en.mp3>.   
Transcript should be available soon.  The slides we presented are attached.

It seems that GAC members appreciate our work thus far.   While answering their 
questions I took some limited notes and would appreciate hearing from others 
who attended.

Mark Carvel (UK): this is incredibly valuable work.  Important Affirmation 
review.  Govts will consult with their Consumer Protection Authorities during 
Application Evaluation.  Asked about Consumer Trust metrics regarding 
Registrars.  Regarding application question 18 (Purpose), Mark asked whether it 
should be in the contract.

Manal Ismail (Egypt): encouraged stressing End User perspective in our metrics. 
  Such as IDNs and user confusion.

Portugal: encouraged us to stress "end user perceptions" which will reflect 
cultural differences.

EC:  Acknowledged our work.  Encouraged us to avoid making the metrics more 
complex than necessary.   Regarding question 18, said that EC would be 
"disappointed" if applicant commits to a purpose and then does something else.  
 Asked whether we anticipated that ICANN staff would be doing the data 
gathering and managing survey and data vendors.

During slide 7, I described our interaction with USG and stated that our WG 
would not attempt to measure all costs and benefits.   But GAC remains 
interested in this metric.  So I did some research into prior GAC advice on new 
gTLDs.   GAC 2007 new gTLD Principles 
(link<https://gacweb.icann.org/download/attachments/1540128/gTLD_principles_0.pdf?version=1&modificationDate=1312358178000>)
 did not mention costs vs benefits.  But GAC's 2011 Scorecard 
(link<https://gacweb.icann.org/download/attachments/1540128/20110223_Scorecard+GAC+outstanding+issues+20110223.pdf?version=2&modificationDate=1312465657000>)
 suggests that benefits should exceed costs, and even requested the analysis 
for EACH gTLD applicant :

Market and Economic Impacts

The GAC advises the ICANN Board to instruct ICANN staff to amend the final 
Draft Applicant Guidebook to incorporate the following:

  1.  Criteria to facilitate the weighing of the potential costs and benefits 
to the public in the evaluation and award of new gTLDs.

  2.  A requirement that new gTLD applicants provide information on the 
expected benefits of the proposed gTLD, as well as information and proposed 
operating terms to eliminate or minimize costs to registrants and consumers.

  3.  Due diligence or other operating restrictions to ensure that 
Community-based gTLDs will in fact serve their targeted communities and will 
not broaden their operations in a manner that makes it more likely for the 
registries to impose costs on existing domain owners in other TLDs.

Explanation:
The economic studies conducted by Katz, Rosston and Sullivan contain important 
findings that the past introduction of new gTLDs provided minimal public 
benefits in terms of competition for existing gTLDs and relieving name 
scarcity. The studies further state clearly that the introduction of new gTLDs 
had imposed costs on intellectual property owners in diluted brand strength, 
defensive registrations, and other costs associated with protecting their 
brands.

ICANN's Board did not accept this advice.  But I wanted us all to know where 
this "benefits and costs" metric was coming from.

From: Rosemary Sinclair 
<rosemary.sinclair@xxxxxxxxxxx<mailto:rosemary.sinclair@xxxxxxxxxxx>>
Date: Saturday, June 23, 2012 11:01 PM
To: Steve DelBianco <sdelbianco@xxxxxxxxxxxxx<mailto:sdelbianco@xxxxxxxxxxxxx>>
Cc: "gnso-consumercci-dt@xxxxxxxxx<mailto:gnso-consumercci-dt@xxxxxxxxx>" 
<gnso-consumercci-dt@xxxxxxxxx<mailto:gnso-consumercci-dt@xxxxxxxxx>>, Berry 
Cobb <mail@xxxxxxxxxxxxx<mailto:mail@xxxxxxxxxxxxx>>
Subject: Re: [gnso-consumercci-dt] Consumer Metrics: notes from presentation to 
GNSO Council, 23-Jun-2012

Hi all

Issue re Costs and Benefits

USG focused on Economic costs and benefits...looking for overall net increase 
in social welfare for whole community. Key factor here is timeframe used and 
inclusion of "externalities" when assessing costs and benefits

GNSO councillors (some of) focused on ACCOUNTING type costs and 
benefits...price of gTLD, price of registration, cost to defend trademark etc. 
This is a different analysis and much shorter term, not using discount rates etc

Just for sake of completeness there are other perspectives thru which to do 
Cost Benefit Analysis eg

Tax perspective on costs
Regulator perspective for rate setiing
Annual Report perspective ...think Enron, think Glkbal Crossing...think ratings 
agencies ....

I have re-read Econ Fwk doc in last couple of days

We should stay away from this playing field .....look fwd to more chatter on 
this one!

Enjoy Prague!

Rosemary

Cheers

Rosemary

Rosemary Sinclair
Director, External Relations
Australian School of Business
UNSW
+61 413 734490

On 23/06/2012, at 7:38 PM, "Steve DelBianco" 
<sdelbianco@xxxxxxxxxxxxx<mailto:sdelbianco@xxxxxxxxxxxxx>> wrote:

In Saturday's GNSO Council work session, we spent an hour presenting and 
discussing our draft advice.
The presentation is attached.
Also attached (and below) are notes for how I described the "Key Issues".  
Below that are the questions/comments from Councilors and general audience.
40+ Metrics for Consumer Trust, Consumer Choice, & Competition
combination of surveys and stats
someattempt to measure costs;
not all have targets
None are intended to steer indiv Ry operators or drive policy development
User and registrant Surveys for Consumer Trust & Consumer Choice
Combined annual surveys of users and registrants
Assess awareness of new gTLDs in general; and of specific-purpose gTLDs
perceptions about trust,
experience in finding desired content;
experience with phishing & malware;
registrant experience pursuing cybersquatting
Consumer Trust - Relative Incidence of UDRP, URS, & Litigation
UDRP+URS complaints and decisions against registrants “relative” to legacy 
gTLDs.  E.g. 1000 UDRP+URS decisions against registrants in 1 million 
registrations give a relative rate of 0.1 percent or 1 per 1000
Ry Contract breach notices: [significantly] lower than in legacy gTLDs.  1/20 = 
 5% of registries.   5% of new Registries could be as high as 100 breach 
notices!
Consumer Choice - Defensive & Duplicate Registrations, Redirects
3 potential indicators of registrations done for “defensive” purposes:
sunrise registrations or blocks using TM clearinghouse
redirects (automated
self-reported duplicate registrations
Collect data from IP organizations on quantities and costs of def registrations 
and of pursuing cybersquatting.
Competition - Wholesale and Retail pricing of Domain Registrations
Our proposed Competition metrics include comparing wholesale and retail prices 
in new gTLDs open to public vs legacy gTLDs open to general public.  No target, 
just comparison.
USG is keenly interested in weekly data on revenue and registration volume,both 
legacy and new gTLDs.
Appendix B:  ICANN legal advised us they are concerned about collecting, 
comparing, and sharing non-pubic price data.   Also concerned about potential 
that price focus could lead to price recommendations.
To address this: WG could recommend that a third party could collect and 
analyze the data, sharing only aggregates and stats.
gTLD expansion program Costs and Benefits
USG comments: “benefits of new gTLDs must outweigh costs to consumers and other 
market participants”
WG asked the USG reps to reconcile that with what’s in the Affirmation.
WG won’t attempt to measure all benefits and costs.  Some significant costs are 
evaluated, though.
Q&A/Discussion on Council:
JeffNeuman: troubled by timing of 3-yr targets; some targets are unreasonable 
too.
Ching Chiao: will these metrics drive registry contract requirements?  (No)
Wendy Seltzer: flag concerns with framing of Consumer Trust; looking backwards 
atpast abuses; need to see unexpected benefits of new innovation
MaryWong: recommended the WG add advice to modify the metrics as new benefits 
(and new abuses) become evident.  (good idea)
AlanGreenberg: concern with Redirect metric.  Some redirects are beneficial and 
not defensive
Zahid Jamil: compliments on progress; ICANN has an obligation here; likes 
Flexibility (Mary’s idea); how do registrants know which national laws apply to 
them and to the Registrar and Registry they’re considering?  (described our 
choice metric on visibility and clarity)
Jonathan Robinson: Helpful and interesting perspective on new gTLD program.  
Troubled with 3-year target, given ramp-up time and gradual delegations
Michael Graham (IPC): Q18 proposed mission and purpose could support consumer 
trust
NPOCChair: gave anecdote of World Bank project to define 160 metrics for 
poverty reduction projects.   When the WB asked citizens in developing nations 
they got 500 metrics for poverty.  Are we asking regular consumers about our 
metrics?  (contrasted WB process with ICANN’s pub comment process)
JeffNeuman: Closed (single registrant) TLDs may not fit with open gTLDs when 
doing many metrics.  (cited the Competition measures where we excluded closed 
TLDs; said that trust and choice for internet users would apply to closed TLDs)
James Bladel: redirects: should get baseline data from legacy gTLDs today (good 
idea)
Jeremy Beal: interesting to look at “potential” consumers.  (cited choice 
metrics on IDNs, languages, geographic diversity )
Olivier CLB (ALAC): metrics should be seen as trends too.  Look at progress 
over time.
Chuck Gomes: this is a good example of M-S model working well.  Compliments.
JeffNeuman: excellent work.
--
Steve DelBianco
Executive Director
NetChoice
http://www.NetChoice.org and http://blog.netchoice.org
+1.202.420.7482
From: Berry Cobb 
<mail@xxxxxxxxxxxxx<mailto:mail@xxxxxxxxxxxxx><mailto:mail@xxxxxxxxxxxxx>>
Date: Wednesday, June 20, 2012 1:04 AM
To: 
"gnso-consumercci-dt@xxxxxxxxx<mailto:gnso-consumercci-dt@xxxxxxxxx><mailto:gnso-consumercci-dt@xxxxxxxxx>"
 
<gnso-consumercci-dt@xxxxxxxxx<mailto:gnso-consumercci-dt@xxxxxxxxx><mailto:gnso-consumercci-dt@xxxxxxxxx>>
Subject: [gnso-consumercci-dt] Latest Docs
Team,
Here are the latest PPT & Advice Letter.  I did not include the Public Comment 
Review tool, as it barely changed today.
Thank you.  B
Berry Cobb
Internet Corporation for Assigned Names & Numbers (ICANN)
720.839.5735
mail@xxxxxxxxxxxxx<mailto:mail@xxxxxxxxxxxxx><mailto:mail@xxxxxxxxxxxxx>
@berrycobb
<GNSO CCTC Presentation Prague 2012.ppt>
<Notes from Metrics presentation to GNSO Council.docx>

Attachment: GAC CCTC Presentation Prague 2012.ppt
Description: GAC CCTC Presentation Prague 2012.ppt



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