RE: [gnso-vi-feb10] Merged Proposal

["Michael D. Palage" <michael@xxxxxxxxxx>]

Jon/Jeff,

 

Thanks for the update. Just a couple of quick questions.

 

Question #1:  You propose allowing an entity to increase cross-ownership
beyond 15% in 18 months if the ICANN community supports new criteria.  What
happens if an applicant located in the US goes and gets a business review
letter from the US Department of Justice stating that their business
proposal concerning joint ownership and the sharing and business information
raises no competition concerns, but the ICANN community (with no subject
matter expertise in this area) disagrees and can't make up its mind in 18
months?  Your proposal  would block that party from increasing beyond 15%
just because the ICANN community says so, notwithstanding the experts have
already determined that there is no problem, correct?

 

Question #2: When does the 18 month clock start ticking (approval of the
policy, submission of application, signing of contract with ICANN, entry
into the root, first domain name entered into the zone, soft launch, general
commercial launch)? For example the application review process will likely
take at least 12 month even without any string contention. There will then
be contractual negotiations and pre-delegation sign off, this should be an
additional 3-6 months. I think the current registry agreement requires the
TLD to be in the root 12 months after signing. Would it be possible to apply
and agree to the 15% limit as part of the application and then for an
applicant prior to going live to seek an amendment.  Without providing any
context on the criteria that will be applicable in connection with approving
waivers in excess of 15% seems like a very profitable gaming scenarios for
ICANN consultants. While that may be extremely lucrative for people like Jon
and I, I think the business community should expect a little more
predictability in the process if we want true innovation and choice. 

 

If you could proactively address these questions during today's call I would
greatly appreciate it.

 

Best regards,

 

Michael

 

 

 

 

From: owner-gnso-vi-feb10@xxxxxxxxx [mailto:owner-gnso-vi-feb10@xxxxxxxxx]
On Behalf Of Jon Nevett
Sent: Monday, April 26, 2010 10:53 AM
To: Gnso-vi-feb10@xxxxxxxxx
Cc: Jon Nevett; Jeff Neuman
Subject: [gnso-vi-feb10] Merged Proposal

 

VI WG Colleagues:

 

Please see the attached proposal.  The good news is that Jeff Neuman and I
have been able to merge our proposals, thereby removing two proposals and
replacing them with only one.  The bad news is that it is another document
for everyone to review.  If possible, we would like to discuss our merged
proposal on our call today.  We are calling it the JN Squared proposal, but
are open to new names with new supporters!  

 

For those who don't have time to review the attached before the call, here
are the highlights:

 

1.   CROSS OWNERSHIP LIMIT.  Initial cross ownership limit is 15%, or in any
situation where control is exercised (i.e. power to direct management or
policies)

2.   EXCEPTIONS.  For Single Registrant,  Community and Orphan TLDs 

3.   REVIEW.  After 18 months Registry can obtain increase above 15% if
ICANN community supports new criteria

4.   TLD SPECIFIC.  Limits only apply if registry and registrar offer the
same TLD  (e.g. if registrar is not accredited in registry's TLD there is no
limit on cross ownership)

5.   USE OF REGISTRARS.  Registry Operator may select registrars based on
objective criteria and may not discriminate among the ones they select

5.   REGISTRAR RESELLERS.   CO limitations extended to registrar resellers
for 18 months.  After that, market protections mechanisms must be in place 

6.   BACK-END REGISTRY OPERATORS.  CO limits apply to back-end registries
that control pricing or policies; others that do not must maintain market
protection mechanisms

 

Thanks.

 

Best,

 

Jon and Jeff