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Re: [gnso-vi-feb10] VI - An RSP Question..

  • To: Statton Hammock <shammock@xxxxxxxxxxxxxxxxxxxx>
  • Subject: Re: [gnso-vi-feb10] VI - An RSP Question..
  • From: Graham Chynoweth <gchynoweth@xxxxxxx>
  • Date: Mon, 24 May 2010 12:24:40 -0400 (EDT)

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{ margin: 0; }</style><div style="font-family: Times New Roman; font-size: 
12pt; color: rgb(0, 0, 0);"><span style="font-family: 
arial,helvetica,sans-serif;">All,</span><br style="font-family: 
arial,helvetica,sans-serif;"><br style="font-family: 
arial,helvetica,sans-serif;"><span style="font-family: 
arial,helvetica,sans-serif;">I had meant to raise this issue at the end of last 
weeks call, but forgot.&nbsp; In any event, in the interests of making progress 
toward reducing the number of open issues, I wanted to raise Statton's point 
again to see if we can find some agreement on it, and if so, take it off the 
table.&nbsp; The lack of more general response to Statton's question below 
suggests to me that the restriction is simply an artifact of a concern that 
doesn't apply wheen an RSPs doesn't control pricing policies or selection of 
registrars.&nbsp; Additionally, having tried to noodle on the issue myself, I 
just can't see how, so long as the separation of pricing/policy/selection 
authority exists, an RSP cross ownership would give rise to the behavior that 
folks are concerned about.&nbsp;&nbsp; <br><br>Is there anyone out there still 
opposed to RSP cross ownership where there the RSP has no control over 
</span><span style="font-family: 
arial,helvetica,sans-serif;">pricing/policy/selection of 
registrars?</span>&nbsp; If so, what is/are the reason(s)?<br><span 
style="font-family: arial,helvetica,sans-serif;"><br>Thanks,<br>Gray 
</span><font style="font-family: arial,helvetica,sans-serif;" 
size="2"><br></font><br>Graham H. Chynoweth<br>General Counsel &amp; VP, 
Business Operations<br>Dynamic Network Services, Inc.<br>1230 Elm Street, 5th 
Floor<br>Manchester, NH 03101<br>(p) +1.603.296.1515<br>(e) 
gchynoweth@xxxxxxx<br>(w) http://www.dyn.com<br><br>Confidentiality 
Statement<br><br>Privileged and Confidential. The information contained in this 
electronic message and any attachments to this message are intended for the 
exclusive use of the addressee(s) and may contain confidential or privileged 
information. If you are not the intended recipient, please notify Dynamic 
Network Services, Inc. immediately at +1.603.668.4998 or reply to 
gchynoweth@xxxxxxx and destroy all copies of this message and any attachments. 
This message is not intended as an electronic signature.<br><br><br>----- 
Original Message -----<br>From: "Statton Hammock" 
&lt;shammock@xxxxxxxxxxxxxxxxxxxx&gt;<br>To: Gnso-vi-feb10@xxxxxxxxx<br>Sent: 
Friday, May 14, 2010 2:51:52 PM GMT -05:00 US/Canada Eastern<br>Subject: 
[gnso-vi-feb10] VI - &nbsp;An RSP Question..<br><br>




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<div class="Section1">

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">Thanks for the updated 
matrix, Berry and Kathy.&nbsp;
This is very useful in helping to see the whole “proposal
landscape.” </span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">&nbsp;</span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">As I was looking across the 
columns, my
focus went to the descriptions of how the proposals treat back-end registry
service providers (RSPs). &nbsp;It appears to me that fewer than half of the
proposals (4 out of 10) want the 15% cross-ownership restriction to apply to
RSPs without qualification (I do not count the Board’s resolution either
as a “proposal” or a “policy because, to me, it’s simply
a “statement,” (an ambiguous one, too)). &nbsp;The other 6 either
envision such a cap only when the RSP controls the pricing, policies, or
selection of registrars for that TLD, or would allow complete cross-ownership
so long as strict structural or financial separation exists. </span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">&nbsp;</span></font></p>

<p class="MsoNormal" style="text-align: justify;"><font size="2" 
color="#333399" face="Trebuchet MS"><span style="font-size: 10pt; color: 
rgb(51, 51, 153);">So perhaps we’re
not too far from achieving a consensus on this particular issue.&nbsp; So, I
would like to pose the question to Proposers #2 (IPC) #3 (Afflias), #4 (PIR),
and #6(GoDaddy): &nbsp;What is the rationale for proposing an *unqualified* cap
of 15% on RSPs? &nbsp; To me, this seems needlessly restrictive when the RSP is
just a technical service provider with no policymaking authority for the
TLD.&nbsp; Registry operators, not their back-end service suppliers, are
responsible for pricing and policy decisions for their TLD. &nbsp;Registry
Operators also would not want, nor permit, RSPs to act in ways that are not
compliant with their ICANN agreements and policies. &nbsp; Also, it seems that
there is no incentives for the RSP to discriminate against any registrar
because they would want to see as many registrars as possible distribute the
names in the relevant extension. &nbsp; Additionally, if my understanding is
correct, the current marketplace demonstrates that registrars (DomainPeople,
for example) and their affiliates (Hostway) have provided back-end registry
services and sold names (.PRO) in those registries without any negative
consequences. &nbsp;</span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">&nbsp;</span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">So again to those proposers, 
what is the
rationale for an *unqualified*<b><i><span style="font-weight: bold; font-style: 
italic;"> </span></i></b>15% cap on registry and/or registrar cross-ownership of
a RSP in the absence of that RSP’s control over the pricing, policies or
selection of registrars for that TLD?&nbsp; </span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">&nbsp;</span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">Thanks, </span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">&nbsp;</span></font></p>

<p class="MsoNormal"><font size="2" color="#333399" face="Trebuchet MS"><span 
style="font-size: 10pt; color: rgb(51, 51, 153);">Statton </span></font></p>

<p class="MsoNormal"><font size="2" color="navy" face="Trebuchet MS"><span 
style="font-size: 10pt; color: navy;">&nbsp;</span></font></p>

<p class="MsoNormal"><b><font size="2" color="gray" face="Trebuchet MS"><span 
style="font-size: 10pt; color: gray; font-weight: bold;">&nbsp;Statton Hammock 
<br>
</span></font></b><font color="gray"><span style="color: gray;">&nbsp;Sr. 
Director,
Law, Policy&nbsp;&amp; Business Affairs </span></font><font color="navy"><span 
style="color: navy;"></span></font></p>

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