[gnso-vi-feb10] Draft exception process

["Tim Ruiz" <tim@xxxxxxxxxxx>]

Draft of the exception process attached. Posting to the whole list due
to our call tomorrow. Again, this is not a RACK+ group proposal, it is
based on ideas/concerns I heard during the Brussels meeting and in off
list discussions. Also, all those who asked to be part of this group
have not had an opportunity to see it or comment.

It doesn't solve all the issues, nor is it meant to. The idea is to
allow for possible exceptions in certain cases in the first round while
a more permanent policy continues to be hammered out.

Tim

It is impossible to know or completely understand all potential business models 
that may be represented by new gTLD applicants. That fact is a major roadblock 
to finding consensus on policy that defines clear, bright line rules for 
allowing vertical integration and a compliance framework to support it while 
ensuring that such policy is practical and beneficial in the public interest. 
The VI-WG proposes that its work continue with the goal of eventually reaching 
consensus on a workable VI/CO policy, but it is unlikely that such consensus 
can be reached prior to the first round under the new gTLD policy without 
delaying it. 

However, it is recognized that certain new gTLDs likely to be applied for in 
the first round that are clearly beneficial in the public interest may not be 
practical without relaxing certain rules regarding registry/registrar 
integration and/or co-ownership.  

This proposal presents an alternative by suggesting a default policy while 
allowing for applicants to request exceptions and be considered on a case by 
case basis. Exceptions would be granted conservatively to a narrow set of cases 
where the applicant can demonstrate that the new gTLD will be established and 
used inline with a set of guidelines whose goal is to address public interest 
needs.


1. The default policy:

a. RACK+

b. This policy will apply to all applicants except those requesting evaluation 
under and successfully passing the exception critirea.


2. The proposed guidelines:

a. The gTLD will be used by/for a specific, narrowly defined community that may 
otherwise go relatively unserved (e.g. a UNESCO endangered language group, a 
World Bank low or lower-middle economy, small indigenous groups).

b. The purpose of the entity applying is primarily non-commercial, including 
the entities current activities if any (this is not intended to extend to the 
purpose of second level registrations within the gTLD).

c. The string applied for must have a specific and unique association with the 
community being served.


3. The proposed exception may include any or all of the following:

a. The entity applying may serve as, own, or control both the Registry Operator 
and an Accredited Registrar (an Affiliated Registrar) for its gTLD, but must 
maintain structural and administrative separation.

b. No restriction on the use of backend service providers that may be owned, 
controlled, or affilated with Accredited Registrar(s) but those Accredited 
Registrar(s) will not be allowed to distribute that gTLD.

c. The applicant may define criteria reasonably related to the purpose of its 
gTLD as conditions for Accredited Registrar participation, but may not 
otherwise discriminate or restrict Accredited Registrar access.

d. Once the registry reaches 30,000 second level registrations the Affiliated 
Registrar may no longer serve as a registrar for new registrations or for 
gaining transfers in the gTLD as long as there are at least two other 
Accredited Registrars meeting the defined criteria willing to participate in 
distribution.

e. Reaching the threshold defined in d. above has no affect on the Registry 
Operator's choice of backend service providers.

There should be no additional cost to the applicant for requesting the 
exception or for being evaluated for it. The evaluation will take place at an 
appropriate point following the Initial Evaluation. If the request is denied, 
the applicant may withdraw and receive the appropriate pro-rated refund.