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

["Brian Cute" <briancute@xxxxxxxxxxxx>]

Stephane, Diane and VI Working Group:

 

A point of clarification with regard to Questions #2.  Question #2 omits the
word ?acting? which appeared in the Board resolution (see below the quoted
Board resolutions).

 

BOARD RESOLUTIONS

 

?Resolved, within the context of the new gTLD process, there will be

strict separation of entities offering registry services and those

acting as registrars.  No co-ownership will be allowed.

 

And resolved, if a policy becomes available from the GNSO and

approved by the board prior to the launch of the new gTLD program,

that policy will be considered by the board for adoption as part of

the new gTLD program.?

 

Would you kindly revise Question #2 to reflect the accurate quotation of
resolution as intended by the authors before distributing to the Board for
its consideration.  Thank you.

 

Regards,

Brian

 

From: Stéphane Van Gelder [mailto:stephane.vangelder@xxxxxxxxx] 
Sent: Tuesday, March 23, 2010 10:16 AM
To: Diane Schroeder
Cc: Gnso-vi-feb10@xxxxxxxxx
Subject: Fwd: [gnso-vi-feb10] Resending Questions to ask the Board

 

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.