Comment on EOI Report

["Hammock, Statton" <shammock@xxxxxxxxxxxxxxxxxxxx>]

I commend the participants in the EOI Working Group for producing their Report, 
and in particular, for meeting a short deadline yet still developing a document 
that moves the discussion forward and identifies many issues and concerns as 
well as presents solutions.   

One issue, however, that was not sufficiently addressed was the impact a 
potential change in DAG requirements may have on the eligibility of applicants 
to participate in the EOI process.  For example, in Section 2.9 of the new gTLD 
Agreement (the "Registry Agreement") in DAG v3, there is no provision 
restricting registrars from applying for new gTLDs, themselves, and selling 
them.  However, this right to apply remains a matter of debate (the "Vertical 
Separation Issue") undecided by ICANN.  If Section 2.9 remains as currently 
drafted at the opening of the EOI submission window, then registrars would be 
eligible, and also be required, to participate in the EOI process in order to 
get their gTLDs.  However, if after the EOI submission window opens, ICANN 
later changes Section 2.9 and imposes a restriction against registrars selling 
their own names, registrars then will be disqualified from the EOI process; 
they will lose their EOI fee; and they will have exposed their potential new 
gTLD to a grab by other applicants who are eligible.  

Without having the DAG finalized, registrars cannot evaluate how to proceed. If 
ICANN can be pressed to resolve this particular issue related to applicant 
eligibility, then the EOI process makes better sense. 

Statton Hammock