[gnso-vi-feb10] RE: Proposed Addendum to Proposals

["Neuman, Jeff" <Jeff.Neuman@xxxxxxxxxx>]

Thanks Jeff.  I think this is a useful contribution.

I have enclosed some language that Neustar had in its original proposal (called 
the Neustar proposal), which was subsumed into the JN2 proposal.  Although JN2 
does not go into detail, it does reference audits in 7(ii) and 8(ii) and these 
could be the requirements.  The original Neustar proposal (which is no longer 
fully on the table), can be found at:  
http://forum.icann.org/lists/gnso-vi-feb10/msg00720.html.  I have excerpted the 
relevant language on protections, audits, etc.. just as an illustration.  THIS 
IS NOT A NEW PROPOSAL.


++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
b)                  In addition, in the event that RSP or any of its Affiliates
is a Registrar for the TLD, the following restrictions shall apply:



1.      Affiliated Registrar may not receive directly or indirectly
preferential pricing from Registry Operator (i.e., direct pricing, rebates,
discounts, marketing contracts, etc.).



2.      RSP must have strict controls on use of data for any purpose other than
acting as the RSP and must have information "firewall" between data in the
registry and its Registrar Affiliate.



3.      No confidential information of the Registry Operator obtained by the
RSP may be shared with registrar Affiliate of RSP except as necessary to
perform the Registry Services and only for such purpose.



4.      RSP shall not provide any access to any Registry Data to its Registrar
Affiliate, and RSP itself will not use, confidential user data or proprietary
information of an-ICANN-accredited registrar served by Registry Operator,
received by RSP in the course of providing Registry Services, except as
necessary for registry management and operations.



5.      In the case where an RSP has a Registrar Affiliate providing Registrar
services in the TLD, such RSP will conduct internal neutrality reviews on a
regular basis. In addition, it will agree to cooperate with an independent
third party ("Auditor") performing Annual Independent Neutrality Audits ("AIN
Audits"), to be conducted each calendar year. All costs of the AIN Audits will
be borne by RSP. The AIN Audit is intended to determine whether Back-end
Operator has been in compliance, and will utilize such tests and techniques as
the auditor deems appropriate to determine that compliance.



6.      Strict Penalties/Sanctions will be applied to any entity violating
these policies.  Sanction Program can use old Appendix Y of .com agreement as
an example
(http://www.icann.org/en/tlds/agreements/verisign/registry-agmt-appy-com-16apr01.htm).





Jeffrey J. Neuman
Neustar, Inc. / Vice President, Law & Policy

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From: owner-gnso-vi-feb10@xxxxxxxxx [mailto:owner-gnso-vi-feb10@xxxxxxxxx] On 
Behalf Of Jeff Eckhaus
Sent: Monday, June 14, 2010 4:55 PM
To: 'Gnso-vi-feb10@xxxxxxxxx'
Subject: [gnso-vi-feb10] Proposed Addendum to Proposals

All,
After today's discussions with this group and reading the emails on the list, I 
have noticed a consistent concern coming from many group members, that they are 
worried about ICANN's ability to enforce any rules that are put in place. It is 
one of the main concerns opponents of the JN2 proposal have expressed with the 
issue of co-ownership. Specifically being able to police the following issue: 
"Registry Operator or its Affiliate may serve as an ICANN-Accredited Registrar 
in any top-level domain other than the TLD for which Registry Operator or its 
Affiliate serves as the Registry Operator" .
Those opposed to JN2 and other proposals seem to agree that cross-ownership is 
appropriate, but that ICANN will not be able to police any restrictions on data 
sharing between a registry and registrar. They believe that we cannot simply 
rely on Registrars to adhere to a signed agreement. Thus, because compliance 
will be too difficult to enforce, we must limit cross-ownership.
While I disagree with this viewpoint, my opinion does not matter at this point. 
What does matter is assuring the people who are concerned with the above, 
attempting to bridge the gap and reach consensus. To that end, I am proposing 
an unsolicited addendum to the JN2 proposal (maybe JN3 now??) and to any other 
proposals that allow a Registry to own up to 100% of a Registrar (vice-versa) 
but not distribute the owned TLD.
This will only apply to co-owned entities that have an ownership level above 
the 2% threshold as discussed in the DAGv4:

*         The Registry/Registrar must agree to an annual audit for the first 2 
years. Every 18 months for next 3 years, and every 2 years thereafter. (timing 
can be negotiated)

*         The audit will focus on ensuring that Registry data is not shared 
with the co-owned Registrar, co-owned Resellers, and any related Affiliates

o   Details of what data would need to be audited would be supplied by a 
working group/committee led by current Registries

*         Stiff penalties would be levied if there is an audit failure (amounts 
TBD)

*         All costs of the audit would be borne by the co-owned entity

o   The co-owned entity would pay fees into a pool, not directly to auditors. 
This avoids any thoughts of impropriety

*         This audit would be in addition to the audit and compliance 
requirements already agreed to in ICANN Registry and Registrar agreements

*         Auditors would be independent of ICANN but would work with ICANN 
Compliance on fees and remedies

*         Auditors would be rotated among assignments to avoid capture
This is the framework of my proposal that I believe would cover Registrant 
rights and concerns and bring comfort to those who believe there will be 
enhanced harms if there is any type of co-ownership. Most important it would 
cover the policing/enforcement issues that seems to be the roadblock to 
consensus. I welcome feedback on this idea and look forward to hearing more and 
seeing everyone in Brussels.

Regards,

Jeff Eckhaus