<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style><![endif]--><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Verdana;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0cm;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.msonormal0, li.msonormal0, div.msonormal0
{mso-style-name:msonormal;
mso-margin-top-alt:auto;
margin-right:0cm;
mso-margin-bottom-alt:auto;
margin-left:0cm;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
span.gmaildefault
{mso-style-name:gmail_default;}
span.EmailStyle19
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-family:"Calibri",sans-serif;
mso-fareast-language:EN-US;}
@page WordSection1
{size:612.0pt 792.0pt;
margin:72.0pt 72.0pt 72.0pt 72.0pt;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-CA" link="blue" vlink="purple">
<div class="WordSection1">
<p class="MsoNormal"><span style="mso-fareast-language:EN-US">Regarding the question of whether “a transfer” is occurring, as I set out in my email to this list of Monday, November 18, 2019 (appended below for your ease of reference), Section 7.5 deems any
change of control of the registry, to be an “assignment”. Ethos is taking control of PIR. That is therefore an assignment. ICANN has the contractual right to reasonably withhold its consent to any assignment.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US">What could be a reasonable basis to withhold consent? Amongst possible other reasons, it could be that;
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US">a) there are important policy and practical reasons why the .org registry should continue to be operated by a nonprofit;
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US">b) the original basis and presumption for awarding the .org registry was because it was being operated by a nonprofit (see
</span><a href="https://twitter.com/bretfausett/status/1195092498395357184">https://twitter.com/bretfausett/status/1195092498395357184</a>; From 2002 “ISOC’s global membership and heritage and PIR’s non-profit status will ensure the registry remains sensitive
to non-commercial concerns.”);<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">c) without disclosure and approval of the funders/shareholder of the new owner and them being found to be satisfactory, there is no reasonable basis for entrusting the registry to a new and unknown for-profit company; and<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">d) the renewal of the agreement just a few months ago, wherein price caps were removed, was premised on a public-minded non-profit continuing to control and operate the registry.<span style="mso-fareast-language:EN-US"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US">Zak Muscovitch<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US">General Counsel, ICA<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal">Muscovitch Law P.C.<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:zak@muscovitch.com"><span style="color:#0563C1">zak@muscovitch.com</span></a><o:p></o:p></p>
<p class="MsoNormal">1-866-654-7129<o:p></o:p></p>
<p class="MsoNormal">416-924-5084<o:p></o:p></p>
<p class="MsoNormal"><a href="http://www.trademarks-canada.com/"><span style="color:#0563C1">http://www.trademarks-canada.com/</span></a><o:p></o:p></p>
<p class="MsoNormal"><a href="https://www.muscovitch.com/"><span style="color:#0563C1">https://www.muscovitch.com/</span></a><o:p></o:p></p>
<p class="MsoNormal"><a href="https://dnattorney.com/"><span style="color:#0563C1">https://dnattorney.com/</span></a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">From: <strong><span style="font-family:"Calibri",sans-serif">Zak Muscovitch</span></strong> <<a href="mailto:zak@muscovitch.com">zak@muscovitch.com</a>><br>
Date: Mon, Nov 18, 2019 at 11:07 AM<br>
Subject: Re: [CPWG] [registration-issues-wg] [GTLD-WG] Fwd: ISOC sells PIR<br>
To: <a href="mailto:cpwg@icann.org">cpwg@icann.org</a> <<a href="mailto:cpwg@icann.org">cpwg@icann.org</a>><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><o:p> </o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt">Alan, while it is certainly an open question whether ICANN will take any action in response to the announced sale of PIR, it doesn’t appear to be
debateable whether or not selling PIR would constitute a “change of control” under the .Org Registry Agreement.
</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt">Pursuant to Section 2.9(b) of the .org Registry Agreement:</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:36.0pt">
<span style="font-size:12.0pt">“For the purposes of this Agreement…</span><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black">“control” (including the terms “controlled by” and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a person or entity, whether through the ownership of securities, as trustee or executor, by serving as an employee or a member of a board of directors or equivalent
governing body, by contract, by credit arrangement or otherwise.”</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">ISOC clearly stated in its Press Release that “<span style="color:#0C1C2C;background:white">Ethos Capital will
acquire PIR and all of its assets from the Internet Society”, and obviously such a sale wherein Ethos would take over PIR is a change of control, as understood by both Section 2.9(b) and as this term is widely understood in business and in law. For example,
this is how the Corporate Finance Institute defines a change of control:</span></span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:36.0pt">
<span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black;background:white">“In finance, a Change of Control occurs when there is a material change in the ownership of a company. The exact criteria that determine such a change can vary and
are defined by law and through contractual agreements. A change of control clause is often included in <a href="https://corporatefinanceinstitute.com/resources/templates/financial-modeling/debt-schedule/" target="_blank"><span style="color:black;text-decoration:none">creditor
pacts</span></a> and executive employment agreements to protect <a href="https://corporatefinanceinstitute.com/resources/knowledge/accounting/stockholders-equity-guide/" target="_blank"><span style="color:black;text-decoration:none">investors</span></a> and
managers from major changes in how the company is run.” (see : </span><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><a href="https://corporatefinanceinstitute.com/resources/knowledge/deals/change-of-control/" target="_blank"><span style="color:windowtext">https://corporatefinanceinstitute.com/resources/knowledge/deals/change-of-control/</span></a>)
</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black;background:white">Indeed the change of control provision in the .Org Registry Agreement was ostensibly
included precisely to provide ICANN with protection in the event that ISOC purported to sell the .Org registry, i.e. a change of control. Section 7.5, as you pointed out below, specifically prohibits any assignment of the agreement, and deems any direct or
indirect “change of control” to be an assignment. The Agreement does however, only enable ICANN to “reasonably” withhold its approval. In the circumstances, it would be eminently reasonable to withhold approval, given the facts that; a) this sale was apparently
unknown at the time of the recent renewal of the Registry Agreement which inter alia, removed price caps and imposed URS despite it not being a Consensus Policy; and b) selling the .Org registry to a private capital company would appear to be contrary to the
original intention in awarding the .Org registry, home of nonprofits, to ISOC.</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black;background:white">Zak Muscovitch</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black;background:white">General Counsel, ICA</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black;background:white">InternetCommerce.org</span><o:p></o:p></p>
<p class="MsoNormal"><span style="mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span lang="EN-US">From:</span></b><span lang="EN-US"> CPWG <cpwg-bounces@icann.org>
<b>On Behalf Of </b>Eduardo Diaz<br>
<b>Sent:</b> November-20-19 3:22 PM<br>
<b>To:</b> John Laprise <jlaprise@gmail.com><br>
<b>Cc:</b> CPWG <cpwg@icann.org>; Alan Greenberg <alan.greenberg@mcgill.ca><br>
<b>Subject:</b> Re: [CPWG] [GTLD-WG] Fwd: Re: [registration-issues-wg] Fwd: ISOC sells PIR<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif">I believe that there is no transfer of the .ORG domain to a new entity since it belongs to PIR and PIR is what is being sold, hence nothing you can do in that account. However,
the issue may come up if PIR is turned into a for-profit company which may have contract consequences with ICANN since PRI is a registry for all purposes. <o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif">-ed<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Wed, Nov 20, 2019 at 4:05 PM John Laprise <<a href="mailto:jlaprise@gmail.com">jlaprise@gmail.com</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<p class="MsoNormal">See 7.6.j.iv<o:p></o:p></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt">We may not be able to stop the transfer but may be able to make the case that the transfer is not on the public interest and get the board to amend the contract.<o:p></o:p></p>
<div>
<p class="MsoNormal">Sent from my Pixel 3XL<br>
<br>
John Laprise, Ph.D.<o:p></o:p></p>
</div>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Wed, Nov 20, 2019, 12:43 PM Kaili Kan <<a href="mailto:kankaili@gmail.com" target="_blank">kankaili@gmail.com</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<div>
<p class="MsoNormal">Very interesting indeed. Exactly what At-Large is for !<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal">However, sorry that have to apologize for this meting, having a bad cold. :(<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal">Kaili<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Thu, Nov 21, 2019 at 1:13 AM Maureen Hilyard <<a href="mailto:maureen.hilyard@gmail.com" target="_blank">maureen.hilyard@gmail.com</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<p class="MsoNormal">Sounds like an interesting CPWG meeting coming up :)<o:p></o:p></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal">M<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Wed, Nov 20, 2019 at 5:39 AM Bartlett Morgan <<a href="mailto:me@bartlettmorgan.com" target="_blank">me@bartlettmorgan.com</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt">Imagine ICANN getting the pants sued off of it if it does...<o:p></o:p></p>
<div id="gmail-m_-120197159425426073m_-1215888329019664440gmail-m_-7335203051679863822gmail-m_2859570185894227996AppleMailSignature">
<div>
<p class="MsoNormal">-<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal">Bart <o:p></o:p></p>
</div>
<p class="MsoNormal">Sent from my mobile<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt"><br>
On 20 Nov 2019, at 11:28, Evan Leibovitch <<a href="mailto:evan@telly.org" target="_blank">evan@telly.org</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<div>
<div>
<p class="MsoNormal">That's what I mean, re-delegating it from PIR to a real nonprofit. <o:p></o:p></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal">I will check, and maybe others can help.... but I believe that there is a clause in the registry agreement that allows ICANN to terminate if there is a major change in the status of the owner (in this case, PIR changing from nonprofit to
for-profit). <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt">Of course ICANN has rarely if ever acted on this capability, but I believe it exists. <o:p></o:p></p>
<div>
<p class="MsoNormal">___________________<br>
Evan Leibovitch, Toronto<br>
@evanleibovitch/@el56<o:p></o:p></p>
</div>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Wed., Nov. 20, 2019, 9:26 a.m. Eduardo Diaz, <<a href="mailto:eduardodiazrivera@gmail.com" target="_blank">eduardodiazrivera@gmail.com</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif">Evan:<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif">How .ORG can be re-delegated if it does not belong to ISOC but PIR?<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Verdana",sans-serif">-ed<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Wed, Nov 20, 2019 at 8:34 AM Evan Leibovitch <<a href="mailto:evan@telly.org" target="_blank">evan@telly.org</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">Or there could be totally new advice asking ICANN to re-delegate .ORG back to a nonprofit.<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">It has that authority.<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><a href="https://gizmodo.com/private-equity-ghouls-buy-non-profit-that-handles-org-1839860118" target="_blank">https://gizmodo.com/private-equity-ghouls-buy-non-profit-that-handles-org-1839860118</a><o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Tue, 19 Nov 2019 at 17:25, John Laprise <<a href="mailto:jlaprise@gmail.com" target="_blank">jlaprise@gmail.com</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt">On the advice we issued on the change in contractual terms. It's within ALAC's remit to issue advice on anything and this is exactly the kind of situation that allows us to nimbly address a situation. George
Kirikos mentioned the s contingency in the list but by that time I'm pretty sure he had established himself as shrill and was in the process of being report to the ombudsman. We can ask the board to examine options here because we issued advice in good faith
and expectation of ISOC being a good Steward of .org. selling it off to a VC firm was not something I considered likely and had I, would not have advocated in the way I did.<o:p></o:p></p>
<div>
<p class="MsoNormal">Sent from my Pixel 3XL<br>
<br>
John Laprise, Ph.D.<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Tue, Nov 19, 2019, 1:22 PM Alan Greenberg <<a href="mailto:alan.greenberg@mcgill.ca" target="_blank">alan.greenberg@mcgill.ca</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt">On what issue John?<br>
<br>
Alan<br>
-- <br>
Sent from my mobile. Please excuse brevity and typos.<o:p></o:p></p>
<div>
<p class="MsoNormal">On November 19, 2019 1:31:18 PM EST, John Laprise <<a href="mailto:jlaprise@gmail.com" target="_blank">jlaprise@gmail.com</a>> wrote:
<o:p></o:p></p>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<div>
<p class="MsoNormal"><span style="font-size:9.5pt;font-family:"Arial",sans-serif">I agree with Evan. This is an astounding sort sighted deal by ISOC which essentially squandered the trust of it's membership for financial gain. Trust is the most precious commodity
of any non profit and hard to regain once lost.<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:9.5pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:9.5pt;font-family:"Arial",sans-serif">Furthermore, ALAC and CPWG should urgently amend our advice on the contractual issue to reflect new situation. I am no longer in support on this issue.<o:p></o:p></span></p>
</div>
<div>
<div style="margin-top:12.0pt;margin-bottom:12.0pt">
<div>
<div>
<p class="MsoNormal"><span style="font-size:9.5pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:9.5pt;font-family:"Arial",sans-serif">Sent from my Pixel 3XL<br>
<br>
John Laprise, Ph.D.<o:p></o:p></span></p>
</div>
</div>
<div>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#4285F4">Show quoted text<o:p></o:p></span></p>
</div>
</div>
</div>
</div>
<p class="MsoNormal" style="margin-bottom:12.0pt"><o:p> </o:p></p>
<div>
<p class="MsoNormal">Sent from my Pixel 3XL<br>
<br>
John Laprise, Ph.D.<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div>
<p class="MsoNormal">On Tue, Nov 19, 2019, 3:58 AM Evan Leibovitch <<a href="mailto:evan@telly.org" target="_blank">evan@telly.org</a>> wrote:<o:p></o:p></p>
</div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<div>
<div>
<div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">On Mon, 18 Nov 2019 at 09:16, Hadia Abdelsalam Mokhtar EL miniawi <<a href="mailto:Hadia@tra.gov.eg" target="_blank">Hadia@tra.gov.eg</a>> wrote:<o:p></o:p></span></p>
</div>
</div>
<div>
<blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0cm 0cm 0cm 6.0pt;margin-left:4.8pt;margin-right:0cm">
<p class="MsoNormal">I would certainly assume that ISOC got a very decent amount of money from Ethos for the deal to go forward. At this point I would assume that ISOC has insured its way forward. However, what is still to be seen is the effect on the .org
prices, hopefully going forward they would have special prices for non profits.<o:p></o:p></p>
</blockquote>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">Two factors come to mind in considering the long term effects of the sale, over and above the financial-stability component of which we are all aware. Consider:<o:p></o:p></span></p>
</div>
<div>
<div>
<div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Tahoma",sans-serif;color:#0B5394">The substance:</span></b><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">PIR was more than just an ISOC asset. The Internet Society was custodian of the only global <span class="gmaildefault">top-level domain</span> that was, by nature and its very
name, acting in the public interest. In a sea of<span class="gmaildefault"> TLD </span>
sharks<span class="gmaildefault">,</span> dot-org could be seen as a body that brought both financial stability to ISOC and social responsibility among the registries. It<span class="gmaildefault">s size and
</span>nonprofit <span class="gmaildefault">status</span> would keep costs down and corporate direction serving a social mission.<span class="gmaildefault"> Its competitive presence could tamp down the excesses of the industry.</span><o:p></o:p></span></p>
</div>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">And now that's gone. More important than the divestment of PIR is its change from nonprofit to Just Another Shareholder-Value-Maximizing part of the domain ecosystem, its uniqueness
vanished in a<span class="gmaildefault">n</span> instant. In the aim of maximizing its own revenue ISOC has
<span class="gmaildefault">eliminated from</span> the <span class="gmaildefault">
the Internet the only publicly-accessible </span>nonprofit <span class="gmaildefault">
gTLD</span>. Gone is th<span class="gmaildefault">is</span> <span class="gmaildefault">
substantial </span>voice of public-interest sanity within the registry community, replaced by an entity barely more ethically motivated than Donuts. As a dot-org
<span class="gmaildefault">"</span>owner<span class="gmaildefault">"</span>, this hurts personally. But as someone trying to advance Internet domains as a component of progress, this hurts on a global scale.<o:p></o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">Stewardship of</span></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"> a socially-motivated registry was one of ISOC's
<span class="gmaildefault">core</span> global functions IMO. With that gone<span class="gmaildefault">,</span>
<span class="gmaildefault">so is </span>part of ISOC's value.<o:p></o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span class="gmaildefault"><b><span style="font-family:"Tahoma",sans-serif;color:#0B5394">The process:</span></b></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">The path that led to the
<span class="gmaildefault">divestment of PIR</span>, both before and after<span class="gmaildefault"> the decision had been made</span>, has laid bare a core ISOC culture that is the opposite of the openness it asks the world to embrace.<span class="gmaildefault">
At a level of fiscal responsibility, ISOC's action was exactly what one would expect any for-profit entity to do. Maximize benefit through a secretive process that catches everyone unaware -- not just of the transaction but of the urgency to do it,</span><o:p></o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal" style="margin-bottom:12.0pt"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">Except ISOC is not a for-profit entity. It displays itself to the world as a community body that encourages involvement
at a personal, regional, institutional or national scale. It has carefully crafted and evolved a Chapters Advisory Council explicitly designed to provide management with the view from the grassroots, alongside a parallel Council for corporate participants.
This was combined with global virtual events such as InterCommunity that were created to give ISOC a global awareness of what was needed to promote a more-open Internet. And it has always had an individual-membership program, which isn't really talked about
these days as these "members" have neither any costs nor any benefits.</span></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">None of these mechanisms were employed, none of these entities consulted, before or after the decision, even under NDA. The community wasn't even aware
that PIR was being shopped around. As a result, there was no open solicitation, no publicly-competitive process, no opportunity for any other firm to make a counter-offer that might keep PIR nonprofit. We'll never know. Or maybe it wasn't shopped around and
someone just made ISOC an offer it couldn't refuse. But ISOC isn't Jack Woltz. The community had no idea of any sense of urgency to sell PIR, and certainly was never consulted about the ethics or consequences of turning PIR for-profit. The common nonprofit
practice of having major decisions ratified by stakeholders at an AGM is also nowhere in sight.
</span></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div style="margin-left:30.0pt">
<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">So now we know the reality of ISOC's corporate culture. Promote openness and consultation when convenient, but be opaque when it matters.</span></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">I don't know if ISOC considers me a stakeholder, or for that matter anyone else on this list, any Chapter or any Organization Member. In fact right now
I have no idea who ISOC considers its stakeholders to be; it certainly didn't consult any before the fact or ask for any blessings afterwards. Not even informally. So who shows up at the AGM? Just the Trustees?</span></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">In any case, the deal is essentially done. ISOC clearly appears to have assured its financial stability, which is certainly a Good Thing. But with a
crown jewel of the Internet fading away and the shallowness of its commitment to openness and community exposed in the process, it is legitimate to ask whether ISOC has sold more than a registry.</span></span><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span class="gmaildefault"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">We won't know the answer to that for a while
</span><o:p></o:p></span></p>
<div>
<div id="gmail-m_-120197159425426073m_-1215888329019664440gmail-m_-7335203051679863822gmail-m_2859570185894227996m_-8517695173378814026gmail-m_-216138766633725910gmail-m_372308740456146840gmail-m_-4809417601714735646m_-3062781364984342673m_8710949781124309624gmail-:bru">
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394"><img border="0" id="_x0000_i1025" src="https://ssl.gstatic.com/ui/v1/icons/mail/images/cleardot.gif"></span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif;color:#0B5394">- Evan<o:p></o:p></span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</blockquote>
</div>
</blockquote>
</div>
</div>
</blockquote>
</div>
</blockquote>
</div>
<p class="MsoNormal"><br clear="all">
<br>
-- <o:p></o:p></p>
<div>
<div>
<div>
<div>
<div>
<p class="MsoNormal">Evan Leibovitch, <span style="font-size:9.5pt">Toronto Canada</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:9.5pt">@evanleibovitch or @el56</span><o:p></o:p></p>
</div>
</div>
</div>
</div>
</div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</blockquote>
</div>
<p class="MsoNormal"><br clear="all">
<o:p></o:p></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<p class="MsoNormal">-- <o:p></o:p></p>
<div>
<p class="MsoNormal"><b><span style="font-family:"Verdana",sans-serif">NOTICE:</span></b> This email may contain information which is confidential and/or subject to legal privilege, and is intended for the use of the named addressee only. If you are not the
intended recipient, you must not use, disclose or copy any part of this email. If you have received this email by mistake, please notify the sender and delete this message immediately.<o:p></o:p></p>
</div>
</blockquote>
</div>
</div>
</blockquote>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</div>
</blockquote>
</div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</blockquote>
</div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</blockquote>
</div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</blockquote>
</div>
<p class="MsoNormal">_______________________________________________<br>
CPWG mailing list<br>
<a href="mailto:CPWG@icann.org" target="_blank">CPWG@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/cpwg" target="_blank">https://mm.icann.org/mailman/listinfo/cpwg</a><br>
<br>
_______________________________________________<br>
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style
delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p></o:p></p>
</blockquote>
</div>
<p class="MsoNormal"><br clear="all">
<o:p></o:p></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<p class="MsoNormal">-- <o:p></o:p></p>
<div>
<p class="MsoNormal"><b><span style="font-family:"Verdana",sans-serif">NOTICE:</span></b> This email may contain information which is confidential and/or subject to legal privilege, and is intended for the use of the named addressee only. If you are not the
intended recipient, you must not use, disclose or copy any part of this email. If you have received this email by mistake, please notify the sender and delete this message immediately.<o:p></o:p></p>
</div>
</div>
</body>
</html>