<span style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12px"><div>The antitrust and competition law risks are going to be there regardless of specific word choice. It is arguable, incorrectly in my view, whether the current structure of ICANN, inclusive of NTIA ties, is compliant with article 101 of the TFEU and I'm sure somebody would argue some of ICANN's actions violate article 102 of the same Treaty ( for those who went to law school back when I did, these are the old articles 85 and 86 of the Treaty of Rome, transposed to the TFEU). None of this would be a slam dunk decision either way. There are many forms of competition law / antitrust statutes in many, sometimes overlapping, jurisdictions. ICANN is exposed to many of them. Hopefully our legal teams are looking not only at the Sherman Act but also at the Cartwright Act, California's antitrust statute that is similar, but not identical, to U.S. federal law. Limiting complete antitrust exposure worldwide would be difficult if not impossible.</div>
<div> </div>
<div>I look forward to hearing from Holly and Rosemary. I believe 'regulation' is a more accurate description of what we are after. To 'control' would at first impulse be even less acceptable on antitrust grounds ( preventing the control of markets by a cartel is pretty much what competition law is designed to stop) than regulate, as well as being less accurate. I question whether the problem is more the wording or what it is we want to do. We should get clarification on that point.</div>
<div> </div>
<div>I look forward to hearing from our lawyers in the hope they can fashion a remedy all are reasonably comfortable with for this quite interesting problem. </div>
<div> </div>
<div>Ed</div>
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<div><span style="font-family: tahoma,arial,sans-serif; font-size: 10pt;"><b>From</b>: "Greg Shatan" <gregshatanipc@gmail.com><br />
<b>Sent</b>: Monday, April 11, 2016 11:48 PM<br />
<b>To</b>: "Silver, Bradley" <Bradley.Silver@timewarner.com><br />
<b>Cc</b>: "Accountability Cross Community" <accountability-cross-community@icann.org><br />
<b>Subject</b>: Re: [CCWG-ACCT] Implementation flaw in Mission section</span>
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<div class="gmail_default" style="font-family:verdana,sans-serif">I agree with Bradley. Would the following work? I haven't thought it through myself, but I throw it out there as a conceptual possibility.</div>
<div class="gmail_default" style="font-family:verdana,sans-serif"> </div>
<div class="gmail_default" style="font-family:verdana,sans-serif"><span style="font-family:arial,sans-serif;font-size:12.8px"><b>ICANN shall not impose <font color="#0000ff">controls</font> on services that use the Internet’s unique identifiers or the content that such services carry or provide.</b></span></div>
<div class="gmail_default" style="font-family:verdana,sans-serif"> </div>
<div class="gmail_default"><span style="font-size:12.8px"><font face="verdana, sans-serif">Since nothing is ever simple, I will also note that I don't believe we came to agreement on what "services" means -- services (such as web services*) that run on e.g., computers and communicate over the Internet, or service businesses that use the internet.</font></span></div>
<div class="gmail_default"> </div>
<div class="gmail_default"><span style="font-size:12.8px"><font face="verdana, sans-serif">Greg</font></span></div>
<div class="gmail_default" style="font-family:verdana,sans-serif"> </div>
<div class="gmail_default" style="font-family:verdana,sans-serif"><span style="font-family:arial,sans-serif;font-size:12.8px">___</span></div>
<div class="gmail_default" style="font-family:verdana,sans-serif"><span style="font-family:arial,sans-serif;font-size:12.8px">* From Wikipedia: </span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">A</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><b style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">Web service</b><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">is a service offered by an electronic device to another electronic device, communicating with each other via the</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/World_wide_web" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="World wide web">World wide web</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">. In a web service, web technology such as the</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/HTTP" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="HTTP">HTTP</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">, originally designed for human-to-machine communication, is utilized for machine-to-machine communication, more specifically for transferring machine readable file formats such as</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/XML" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="XML">XML</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">and</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/JSON" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="JSON">JSON</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">. In practice, the web service typically provides an</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/Object-oriented_database" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="Object-oriented database">object-oriented</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">web based interface to a database server, utilized for example by another web server, or by a</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/Mobile_application" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="Mobile application">mobile application</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">, that provides a user interface to the end user. Another common application offered to the end user may be a</span><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px"> </span><a href="https://en.wikipedia.org/wiki/Mashup_(web_application_hybrid)" style="font-family:sans-serif;font-size:14px;line-height:22.4px;text-decoration:none;color:rgb(11,0,128);background:none" title="Mashup (web application hybrid)">mashup</a><span style="color:rgb(37,37,37);font-family:sans-serif;font-size:14px;line-height:22.4px">, where a web server consumes several web services at different machines, and compiles the content into one user interface.</span></div>
<p style="margin:0.5em 0px;line-height:22.4px;color:rgb(37,37,37);font-family:sans-serif;font-size:14px">The <a href="https://en.wikipedia.org/wiki/W3C" style="text-decoration:none;color:rgb(11,0,128);background:none" title="W3C">W3C</a> defines a Web service generally as:</p>
<div class="gmail_default" style="font-family:verdana,sans-serif;display:inline">? </div>
<span style="line-height:inherit">a software system designed to support</span><span style="line-height:inherit"> </span><a href="https://en.wikipedia.org/wiki/Interoperability" style="line-height:inherit;text-decoration:none;color:rgb(11,0,128);background:none" title="Interoperability">interoperable</a><span style="line-height:inherit"> </span><span style="line-height:inherit">machine-to-machine interaction over a</span><span style="line-height:inherit"> </span><a href="https://en.wikipedia.org/wiki/Computer_network" style="line-height:inherit;text-decoration:none;color:rgb(11,0,128);background:none" title="Computer network">network</a><span style="line-height:inherit">.</span><sup id="cite_ref-W3WSG_1-0" style="line-height:1;white-space:nowrap;font-size:11.2px"><a href="https://en.wikipedia.org/wiki/Web_service#cite_note-W3WSG-1" style="text-decoration:none;color:rgb(11,0,128);background:none">[1]</a></sup>
<p> </p>
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<div class="gmail_quote">On Mon, Apr 11, 2016 at 6:04 PM, Silver, Bradley <span dir="ltr"><<a href="mailto:Bradley.Silver@timewarner.com" target="_blank">Bradley.Silver@timewarner.com</a>></span> wrote:
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">The problem with that solution is that it does not begin from where the report left off. The CCWG was unable to reach agreement on what was meant by the verb "regulate" or what it meant for ICANN to be a "regulator". Rather, agreement was reached on ICANN not "imposing regulations" on services, and the content of such services. It is this concept of "imposing regulations" that needs translation. I see no reason to depart from "imposing", which has a clear meaning, and I am sure the lawyers can find a substitute for the term "regulations". I look forward to seeing what they come back with.
<div>
<div class="h5"><br />
-----Original Message-----<br />
From: <a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a> [mailto:<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a>] On Behalf Of James Gannon<br />
Sent: Monday, April 11, 2016 5:45 PM<br />
To: Gregory, Holly; Mueller, Milton L; Malcolm Hutty; Accountability Cross Community<br />
Subject: Re: [CCWG-ACCT] Implementation flaw in Mission section<br />
<br />
For whats its worth it would work for me also.<br />
<br />
-James<br />
<br />
<br />
<br />
On 11/04/2016, 10:22 p.m., "<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a> on behalf of Gregory, Holly" <<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a> on behalf of <a href="mailto:holly.gregory@sidley.com">holly.gregory@sidley.com</a>> wrote:<br />
<br />
>Good question Milton, I would like to know if that word works.<br />
><br />
>HOLLY J. GREGORY<br />
>Partner and Co-Chair, Global Corporate Governance & Executive<br />
>Compensation Practice<br />
><br />
>SIDLEY AUSTIN LLP<br />
><a href="tel:%2B1%20212%20839%205853" value="+12128395853">+1 212 839 5853</a><br />
><a href="mailto:holly.gregory@sidley.com">holly.gregory@sidley.com</a><br />
>-----Original Message-----<br />
>From: <a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a><br />
>[mailto:<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a>] On Behalf Of<br />
>Mueller, Milton L<br />
>Sent: Monday, April 11, 2016 3:59 PM<br />
>To: Malcolm Hutty; Accountability Cross Community<br />
>Subject: Re: [CCWG-ACCT] Implementation flaw in Mission section<br />
><br />
>What's wrong with the word "control" instead of "regulate"?<br />
><br />
>> -----Original Message-----<br />
>> From: <a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a><br />
>> [mailto:<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a>] On Behalf<br />
>> Of Malcolm Hutty<br />
>> Sent: Monday, April 11, 2016 3:13 PM<br />
>> To: Silver, Bradley <<a href="mailto:Bradley.Silver@timewarner.com">Bradley.Silver@timewarner.com</a>>; Accountability<br />
>> Cross Community <<a href="mailto:accountability-cross-community@icann.org">accountability-cross-community@icann.org</a>><br />
>> Subject: Re: [CCWG-ACCT] Implementation flaw in Mission section<br />
>><br />
>><br />
>><br />
>> On 11/04/2016 19:42, Silver, Bradley wrote:<br />
>> > Thanks Malcom (and Becky). It is important that the implementing<br />
>> > language be clear and unequivocal. The concept we agreed on was<br />
>> > "regulation", which is a specific type of activity. If there are<br />
>> > reasons why we cannot use this term in the context of ICANN's<br />
>> > activities, we the lawyers should therefore seek to approximate<br />
>> > this type of activity that regulators do. Our discussions in the<br />
>> > CCWG were recent enough that we can all remember how carefully<br />
>> > these words were chosen, and how much they were debated, and if we<br />
>> > had wanted to<br />
>> impose<br />
>> > some sort of limitation on the terms of the RA or RAA that was not<br />
>> > already encompassed by the description of ICANN's mission, we<br />
>> > could have said so - and we did not. The concept was one of ICANN<br />
>> > attempting to exert a power to impose rules/conditions on third<br />
>> > party services and content, and I think it's important to stay<br />
>> > faithful to that, without reopening the debate we had in the CCWG.<br />
>><br />
>> Bradley, I think we're in complete agreement as to what we should be<br />
>> trying to do, and almost completely agreed on how to express it as well.<br />
>><br />
>> You mention "what regulators do". Certainly in my experience they<br />
>> don't only rely on imposing terms and conditions, but use a variety<br />
>> of mechanisms to achieve their goals, from formal law to seeking to<br />
>> cajole corporate representatives and leadership. So I think that<br />
>> reasoning also supports a broader definition.<br />
>><br />
>> But perhaps we should stick more closely to the verb "regulate" than<br />
>> the actor "regulator", to match the language of the report.<br />
>><br />
>> When I type "define: regulate" into Google, the definition given<br />
>> reads<br />
>><br />
>> (1) control or maintain the rate or speed of (a machine or process)<br />
>> so that it operates properly.<br />
>> (2) control or supervise (something, especially a company or business<br />
>> activity) by means of rules and regulations.<br />
>> (3) set (a clock or other apparatus) according to an external standard.<br />
>><br />
>> The second seems to me entirely consistent with my understanding of<br />
>> the Report's provision. Other dictionaries will no doubt offer<br />
>> slightly different definition, and I assume the implementation team will look at a few.<br />
>><br />
>> Anyway, this isn't easy, and we're fumbling for the right works, in<br />
>> the dark together, hand-in-hand.<br />
>><br />
>> All the best,<br />
>><br />
>> Malcolm.<br />
>><br />
>> > -----Original Message----- From:<br />
>> > <a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a><br />
>> > [mailto:<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a>] On Behalf<br />
>> > Of Malcolm Hutty Sent: Monday, April 11, 2016 2:15 PM To:<br />
>> > Accountability Cross Community Subject: Re: [CCWG-ACCT]<br />
>> Implementation<br />
>> > flaw in Mission section<br />
>> ><br />
>> > I see that Becky has replied to my message in the paper distributed<br />
>> > for this evening's meeting, but the reply was not otherwise copied<br />
>> > to the list. For ease of reference (and reply), here it is.<br />
>> ><br />
>> > Becky Burr wrote:<br />
>> >> Malcolm is correct that proposed text is different from the Report.<br />
>> >> In the course of drafting, the CCWG attorneys pointed out that the<br />
>> >> construct (no regulation of services etc.) could create unintended<br />
>> >> consequences related to the application of antitrust law. This was<br />
>> >> viewed as particularly problematic under the current<br />
>> >> circumstances, where the supervision of the US government (which<br />
>> >> at least arguably provides some protection for ICANN) is being withdrawn.<br />
>> >><br />
>> >> We attempted to eliminate this problem and discussed several<br />
>> >> approaches to doing so. This approach seemed to get at the concern<br />
>> >> that was animating the CCWG in its discussions on this point, use<br />
>> >> of the Registry Agreement and Registrar Accreditation Agreement to<br />
>> >> regulate registrant conduct.<br />
>> >><br />
>> >> Malcolm is correct, of course, that ICANN might attempt to use<br />
>> >> some other vehicle to regulate content. But it is critical to keep<br />
>> >> in mind that the prohibition on regulation is, by nature, a “belt<br />
>> >> and suspenders” approach. Keep in mind that ICANN is prohibited<br />
>> >> from doing exceeding its Mission. See Section 1.1.(b): “ICANN<br />
>> >> shall not act outside its Mission.” So no matter what other<br />
>> >> mechanism ICANN might find to attempt to regulate content, the<br />
>> >> Bylaws simply prohibit that.<br />
>> >><br />
>> >> We are open to other constructs, so long as they don’t raise the<br />
>> >> same antitrust concerns identified by Holly and Rosemary in our<br />
>> >> discussions. At a minimum, that requires us to avoid the term<br />
>> >> “regulation” and to be as concrete as possible.<br />
>> ><br />
>> ><br />
>> ><br />
>> ><br />
>> ><br />
>> ><br />
>> ><br />
>> ><br />
>> > On 08/04/2016 12:28, Malcolm Hutty wrote:<br />
>> >><br />
>> >> I have found a discrepancy between CCWG Final Report and the<br />
>> >> implementation of the draft Bylaws in the Mission section.<br />
>> >><br />
>> >> The Report approved by the Chartering Organisations says:<br />
>> >><br />
>> >> "* Clarify that ICANN’s Mission does not include the regulation of<br />
>> >> services that use the Domain Name System or the regulation of the<br />
>> >> content these services carry or provide." (paragraph 134)<br />
>> >><br />
>> >> The Draft Bylaws implements this as follows: "* ICANN shall not<br />
>> >> use its contracts with registries and registrars to impose terms<br />
>> >> and conditions that exceed the scope of ICANN’s Mission on<br />
>> >> services that use the Internet’s unique identifiers or the content<br />
>> >> that such services carry or provide." (Article I Section 1.1 (c))<br />
>> >><br />
>> >><br />
>> >> Firstly, this draft bylaw would pick on only one means by which<br />
>> >> ICANN might seek to regulate content (through the RA or RAA<br />
>> >> contracts), and prohibits that. There is no such limitation in the<br />
>> >> CCWG Report: our Report prohibits any attempt to regulate content<br />
>> >> by ICANN, whether through the RA/RAA contracts or by any other means.<br />
>> >><br />
>> >> Certainly, the RA/RAA contract is the most likely means by which<br />
>> >> ICANN might seek to regulate content and services. However, if<br />
>> >> ICANN manages to come up with some other means (including means<br />
>> >> that<br />
>> cannot<br />
>> >> now be imagined) then a full implementation of the CCWG Report<br />
>> >> would cover that too.<br />
>> >><br />
>> >> This is a clear and objective discrepancy.<br />
>> >><br />
>> >> Secondly, the CCWG Report expresses this limitation as an<br />
>> >> exclusion from the Mission. That was quite deliberate, and<br />
>> >> significant. We never expressed this section as a bare prohibition<br />
>> >> on some action, it was always considered to be essential that it<br />
>> >> was a Mission limitation.<br />
>> >><br />
>> >> This aspect of the Report's proposal is not reflected in the draft<br />
>> >> bylaw at all. That is also clear discrepancy.<br />
>> >><br />
>> >> The significance of this is that a Mission limitation has a<br />
>> >> broader scope. Excluding regulation of content from the Mission<br />
>> >> means any action aimed at regulating content can be challenged,<br />
>> >> including actions that (if done for some legitimate purpose) would<br />
>> >> be entirely OK. By contrast, a Bylaw that merely prohibits a<br />
>> >> certain class of action is weaker, because it says it's OK for<br />
>> >> ICANN to regulate content if it can find some way of doing so<br />
>> >> within its permitted powers. That's simply not consistent with the<br />
>> >> Report approved by the Chartering Organisations.<br />
>> >><br />
>> >> Finally, in the future there may arise some disagreement as to<br />
>> >> whether a specific activity constitutes "regulation", in<br />
>> >> particular in marginal cases. Before we adopted the Report, our<br />
>> >> lawyers advised us not to seek to tightly define this in every<br />
>> >> particular, but to allow precedent to develop as cases arise. We accepted that advice.<br />
>> >> The implementation team should therefore avoid seeking to resolve<br />
>> >> that deliberate ambiguity in favour of the narrowest possible<br />
>> >> definition of regulation: again, that's not consistent with the<br />
>> >> Report.<br />
>> >><br />
>> >> I therefore propose we transmit the following request to the<br />
>> >> implementation team.<br />
>> >><br />
>> >> "Article I Section 1.1(c) implements paragraph 134 of the CCWG<br />
>> >> Report (prohibition of regulation of content) as a prohibition use<br />
>> >> of its contracts with registries and registrars to regulate<br />
>> >> content. This does not fully implement our Report. Please ensure<br />
>> >> that ICANN is prohibited from regulating content through any<br />
>> >> mechanism, not only through registry and registrar contracts.<br />
>> >> Furthermore, please exclude express this as an exclusion from the<br />
>> >> Mission, not merely a bare prohibition on certain actions, so that<br />
>> >> activities that would otherwise be permitted to ICANN can be<br />
>> >> challenged if they are designed to achieve this prohibited purpose."<br />
>> >><br />
>> >><br />
>> >> I hesitate to offer alternative wording: the lawyers may wish to<br />
>> >> come up with their own, and we should let them. But I will offer<br />
>> >> these observations and a brief suggestion.<br />
>> >><br />
>> >> 1. I understand that the lawyers wished to avoid use of the word<br />
>> >> regulation. Fine. 2. When moving away from the word regulation,<br />
>> >> they also moved away from describing a class of activity<br />
>> >> (regulation) to a specific action (using X contract in Y way). I<br />
>> >> think this is where they went wrong. This in itself limits the<br />
>> >> scope of the restriction. 3. Sticking as closely as possible to<br />
>> >> the text of the Report that Chartering Organisations have approved<br />
>> >> would seem advisable. So if they want to avoid the word<br />
>> >> regulation, look for some synonym.<br />
>> >><br />
>> >> Thus compare our Report: "Clarify that ICANN’s Mission does not<br />
>> >> include the regulation of services that use the Domain Name System<br />
>> >> or the regulation of the content these services carry or provide."<br />
>> >><br />
>> >> with the implementation team's draft bylaw<br />
>> >><br />
>> >> "ICANN shall not use its contracts with registries and registrars<br />
>> >> to impose terms and conditions that exceed the scope of ICANN’s<br />
>> >> Mission on services that use the Internet’s unique identifiers or<br />
>> >> the content that such services carry or provide."<br />
>> >><br />
>> >> and my alternative suggestion for this Bylaw<br />
>> >><br />
>> >> "ICANN's Mission does not include seeking to constrain or impose<br />
>> >> requirements upon the services the use the Domain Name System, nor<br />
>> >> seeking to constrain the content that those services carry or<br />
>> >> provide".<br />
>> >><br />
>> >> That would follow the Report as closely as possible, preserve the<br />
>> >> restriction as a limit on ICANN's Mission as intended, and still<br />
>> >> achieve the lawyers' goal of avoiding the word "regulate".<br />
>> >><br />
>> >><br />
>> >> Kind Regards,<br />
>> >><br />
>> >> Malcolm.<br />
>> >><br />
>> ><br />
>><br />
>> --<br />
>> Malcolm Hutty | tel: +44 20 7645 3523<br />
>> Head of Public Affairs | Read the LINX Public Affairs blog London<br />
>> Internet Exchange | <a href="http://publicaffairs.linx.net/" rel="noreferrer" target="_blank">http://publicaffairs.linx.net/</a><br />
>><br />
>> London Internet Exchange Ltd<br />
>> Monument Place, 24 Monument Street, London EC3R 8AJ<br />
>><br />
>> Company Registered in England No. 3137929<br />
>> Trinity Court, Trinity Street, Peterborough PE1 1DA<br />
>><br />
>><br />
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