<html><body bgcolor="#FFFFFF"><div><span class="Apple-style-span" style="-webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); ">I wonder what surprises are in store within the new AG.</span><br><br>Sent from +1(415)606-3733</div><div><br>On Nov 10, 2010, at 8:16 AM, "<a href="mailto:martinsutton@hsbc.com">martinsutton@hsbc.com</a>" <<a href="mailto:martinsutton@hsbc.com">martinsutton@hsbc.com</a>> wrote:<br><br></div><div></div><blockquote type="cite"><div>
<br><a href="http://www.icann.org/en/announcements/announcement-09nov10-en.htm"><font size="2" face="sans-serif">http://www.icann.org/en/announcements/announcement-09nov10-en.htm</font></a>
<br>
<br><font size="3">ICANN's Board of Directors voted to allow new gTLD registries
to own registrars, opting not to create new rules prohibiting registrars
from applying for or operating new gTLD registries.</font>
<p><font size="3">Following over two years of community discussions, which
had not resulted in consensus, the Board carefully considered expert economic
advice, community comments, and numerous proposed approaches to registry-registrar
cross-ownership.</font>
</p><p><font size="3">"<i>In the absence of existing policy or new bottom-up
policy recommendations, the Board saw no rationale for placing restrictions
on cross-ownership</i>;" said Peter Dengate Thrush, Chairman of the
Board. "<i>Any possible abuses can be better addressed by properly
targeted mechanisms. Co-ownership rules are not an optimal technique in
this area."</i></font>
</p><p><font size="3">Under the Board resolution additional enforcement mechanisms
have been added. New gTLD registry agreements are to include: (1) a Code
of Conduct prohibiting any misuse of data or other abusive conduct arising
out of registry-registrar cross-ownership; (2) robust auditing requirements;
(3) graduated sanctions up to and including contractual termination and
punitive damages; and (4) ICANN's right to refer competition issues to
appropriate government competition authorities.</font>
</p><p><font size="3"><u>Background</u>: The cross-ownership provisions have
varied over time and no formal "policy" on this topic has ever
been recommended or adopted by ICANN. (For example, each of the seven new
gTLDs delegated by ICANN in the 2000-2001 proof-of-concept introduced by
ICANN in 2000 have featured some degree of registry-registrar cross-operation
or cross-ownership.)</font>
</p><p><font size="3">The ICANN community has been discussing whether to continue,
expand or remove the restrictions in current registry agreements that limit
the existing registries from owning more than 15% of a registrar. Some
have urged the creation of new rules that would for the first time prohibit
registrars from applying for or operating new gTLDs.</font>
</p><p><font size="3">The ICANN Board had previously attempted to spur a consensus
view, asking ICANN's GNSO to resolve the registry-registrar cross-ownership
question. In May 2010, the ICANN Board encouraged the GNSO to develop a
consensus based policy on this issue, but indicated that the Board would
review the issue if no consensus position was reached. The GNSO recently
reported that it has been unable to reach consensus.</font><font size="2" face="sans-serif"><br>
</font>
<br><font size="2" color="red" face="Arial"><b>Martin C SUTTON</b> </font>
<br><font size="2" color="red" face="Arial">Group Risk </font>
<br><font size="1" face="Arial">Manager, Group Fraud Risk and Intelligence
| HSBC HOLDINGS PLC HGHQ<br>
Group Security & Fraud Risk<br>
8 Canada Square,Canary Wharf,London,E14 5HQ,United Kingdom</font>
<br><font size="1" color="red" face="Arial">________________________________________________________________<br>
</font>
<br><font size="1" color="#4f4f4f" face="Arial">Phone. +44 (0)20
7991 8074 / 7991 8074</font>
<br><font size="1" color="#4f4f4f" face="Arial">Mobile. +44 (0)
7774556680</font>
<br><font size="1" color="#4f4f4f" face="Arial">Email.
</font><a href="mailto:martinsutton@hsbc.com"><font size="1" color="red" face="Arial"><u>martinsutton@hsbc.com</u></font></a>
<br><font size="1" color="red" face="Arial">________________________________________________________________</font>
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