Fwd: [gnso-vi-feb10] Resending Questions to ask the Board

[Stéphane Van Gelder <stephane.vangelder@xxxxxxxxx>]

Hello Diane,

At the Nairobi meeting, the GNSO Council passed a motion to form a Working 
Group on Vertical Integration (please see motions here: 
https://st.icann.org/gnso-council/index.cgi?10_march_2010_motions).

The WG has since started its work and has compiled a list of clarifying 
questions it would like to put to the Board. Answers to these would be a great 
help to the WG in understanding the general context and completing its set 
objectives.

Could I therefore ask you to forward the questions below to Peter and Rod for 
consideration by the Board please?

Kind regards,

Stéphane
VI WG interim Chair and liaison to the GNSO Council

>  
> *************************************
>  
> 1. The resolution states "there will be strict separation of entities 
> offering registry services and those acting as registrars"
> A.  What is your definition of “entities offering registry services”?
> B.  Is that meant to cover just “front end” registries (i.e., those under 
> direct contract with ICANN), or back-end as well (eg., those subcontractors 
> of registry operators under contract with ICANN).
> B.  Would entities offering “registry services”, include those that may be 
> providing a portion, but not all of the registry services?  For example, if 
> an entity is simply providing DNS services for a new TLD, but not the SRS 
> functions, would they be considered under the Board resolution to be 
> “offering registry services”?  If yes, where in your opinion is the line of 
> demarcation?
>  
> 2.  With respect to the phrase "...strict separation of entities offering 
> registry services and those as registrars":
> A. Does this apply to just the new TLD for which a registrar applies to 
> perform the registry function or does that mean if you are a registry for one 
> TLD, you cannot be a registrar with respect to any other gTLD (new or 
> existing)?
> B. Does the term “registrars” apply to resellers of registrars as well or 
> literally just registrars
>  
>  
> 3.  The resolution uses the phrase "No cross ownership will be allowed."
> a)  Does this apply to just legal ownership?
> b)  What about vertical integration through other means direct or indirect.  
> In other words, some have advocated that restrictions should apply to those 
> that exercise some form of control over the registry (i.e., by contract or 
> ownership), while others have argued that it should just apply with respect 
> to legal ownership?  Which position has the Board decided to take?
> c)  Does the cross ownership requirements apply to affiliates or just the 
> entity under contract.  In other words, if you have Parent Company A that 
> owns Subsidiary B and Subsidiary C.  If Subsidiary B is a registrar and 
> Subsidiary C is a registry, would the cross ownership rule apply?  Will this 
> be allowed in that the Registrar here does not own any portion of the 
> registry, nor does the registry here own any portion of the Registrar despite 
> the fact that they share a common parent.   
>  
> 4.  When the Board states, "no cross ownership":
> A. Does that literally mean 0% ownership as opposed to the 15% used today in 
> the existing agreements?
> B. If it literally means 0% ownership, what about those companies that are 
> public where shares are traded on the open market.  Could an entity be 
> prohibited from serving as a registry if a de minimus amount of shares are 
> purchased by a registrar?
> C. If it does mean no ownership, will ICANN afford entities a transition 
> period to divest registrar shareholders if a registry elects to do so?  In 
> other words, would the rule be that prior to launching there can be no cross 
> ownership, or is it prior to applying for a new gTLD.