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    Thanks Greg for putting together this variant.<br>
    <br>
    I don't see this as the return of the Contract Co model which was a
    completely separate structure - this variation of the legally
    separated affiliate model offers far greater predictability and
    certainty.  <br>
    <br>
    I support further consideration of this variation by our legal
    advisers and also wanted to highlight two key points at the end of
    Greg's e-mail:<br>
    <br>
    <i><span id="OLK_SRC_BODY_SECTION">While structural separation of
        the IANA Functions operations does make a certain kind of future
        total separation easier (spinning off the current IANA Functions
        Operator within ICANN), this is really the less likely form of
        total separation.  The more likely form of total separation
        would be the selection of a new IANA Functions Operator, and
        that right would be structurally separated from ICANN. 
        <br>
        <br>
        More importantly from an operational perspective, the oversight
        and stewardship over the operations of the IANA Functions would
        be structurally separated from ICANN.  It would be firmly in the
        CSC, the PRT and the multistakeholder board.  This would be the
        primary job of the Affiliate, putting service accountability
        front and center.  Yet, it does not slight separability.</span></i><br>
    <br>
    Matthew<span id="OLK_SRC_BODY_SECTION"></span><br>
    <br>
    <div class="moz-cite-prefix">On 4/14/2015 8:59 AM, Client Committee
      List for CWG wrote:<br>
    </div>
    <blockquote cite="mid:D1528670.1097D%25maarten.simon@sidn.nl"
      type="cite">
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      <div>Hi Greg (and Paul),</div>
      <div><br>
      </div>
      <div>Isn’t this this simply the return of contract co ? And didn’t
        we in Istanbul decide to leave this further aside a it was quit
        clear that there was not much of support for it?</div>
      <div><br>
      </div>
      <div>Maarten</div>
      <div><br>
      </div>
      <span id="OLK_SRC_BODY_SECTION">
        <div style="font-family:Calibri; font-size:11pt;
          text-align:left; color:black; BORDER-BOTTOM: medium none;
          BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; PADDING-LEFT:
          0in; PADDING-RIGHT: 0in; BORDER-TOP: #b5c4df 1pt solid;
          BORDER-RIGHT: medium none; PADDING-TOP: 3pt">
          <span style="font-weight:bold">From: </span>Client Committee
          List for CWG &lt;<a moz-do-not-send="true"
            href="mailto:cwg-client@icann.org">cwg-client@icann.org</a>&gt;<br>
          <span style="font-weight:bold">Reply-To: </span>"<a
            moz-do-not-send="true" href="mailto:cwg-client@icann.org">cwg-client@icann.org</a>"
          &lt;<a moz-do-not-send="true"
            href="mailto:cwg-client@icann.org">cwg-client@icann.org</a>&gt;<br>
          <span style="font-weight:bold">Date: </span>Tuesday 14 April
          2015 07:41<br>
          <span style="font-weight:bold">To: </span>"<a
            moz-do-not-send="true"
            href="mailto:cwg-stewardship@icann.org">cwg-stewardship@icann.org</a>"
          &lt;<a moz-do-not-send="true"
            href="mailto:cwg-stewardship@icann.org">cwg-stewardship@icann.org</a>&gt;,
          Client &lt;<a moz-do-not-send="true"
            href="mailto:cwg-client@icann.org">cwg-client@icann.org</a>&gt;<br>
          <span style="font-weight:bold">Subject: </span>[client com]
          The Reverse Hybrid Model<br>
        </div>
        <div><br>
        </div>
        <div>
          <div>
            <div dir="ltr">
              <div class="gmail_default"
                style="font-family:verdana,sans-serif">All,<br>
                <br>
              </div>
              <div class="gmail_default"
                style="font-family:verdana,sans-serif">Paul Kane among
                others has suggested a variation on the current
                "internal" models.  Rather than quashing it, I thought
                it was proper to give it appropriate consideration.  As
                Paul is traveling, I thought I would put this together
                so that it could be given such consideration. 
                <br>
                <br>
                For the sake of convenience, I'm calling it the "Reverse
                Hybrid Model."<br>
                <br>
                In this model, ICANN would still be the source of the
                right to perform the IANA Functions, as in the current
                internal model.  However, ICANN  would enter into an
                irrevocable agreement with the Affiliate for the IANA
                Functions.  Rather than having the right to perform the
                IANA Functions itself, the Affiliate would be given the
                right to contract for an entity to act as IANA Functions
                Operator.  (Thus, the Affiliate would be set up as a
                supervisor, not as an operator.)  Initially (but not
                perpetually), that subcontracted entity would be ICANN,
                the current IANA Functions Operator.  However, the
                Affiliate would have the option, under the circumstances
                designated by the CWG, to separate the performance of
                the IANA Functions from ICANN (e.g., by issuing an RFP
                and enter into an agreement with a third party).<br>
                <br>
                As with the current internal models, ICANN Corporate
                would be the only member of the Affiliate. The
                multi-stakeholder community would (s)elect the
                independent Board of the Affiliate, which would have a
                limited (and defined) scope.<br>
                <br>
                It may appear that ICANN is granting a right to itself,
                through the Affiliate.  However, the key is that the
                Affiliate would have the oversight and stewardship
                responsibility over the IANA Functions, by exercising
                the rights and powers it has under the agreement with
                the IANA Functions Operator.  In other words, the
                Affiliate would be the contractor with oversight of
                ICANN-as-IANA Functions Operator, and would also have
                the right to exercise escalation rights, up to and
                including issuing an RFP and potentially a contract to a
                third party if the designated triggers warranted it. 
                The CSC and the PRT would be activities of the
                Affiliate, created by bylaws of the Affiliate, with a
                multistakeholder board providing oversight over the CSC
                and the PRT and ultimately over the IANA Functions
                Operator (initially, ICANN-as-IANA).  <br>
                <br>
                Under the irrevocable agreement, ICANN would retain
                "ownership" of the IANA Function Operator rights but the
                Affiliate would (irrevocably) hold the right to
                subcontract for the performance of those services. 
                Although ICANN would be the only member, we would need
                to insure that its rights as the member to override the
                Board were as limited as possible.<br>
                <div class="gmail_default"
                  style="font-family:verdana,sans-serif"><br>
                  While this does not structurally separate the IANA
                  Function operations from the rest of ICANN, it does
                  separate the stewardship and the decision-making
                  rights regarding the performance of the operations
                  from ICANN.  As with the second option under the
                  current hybrid proposal, there would be functional
                  separation of the IANA Function operations from the
                  rest of ICANN.
                  <br>
                  <br>
                  While structural separation of the IANA Functions
                  operations does make a certain kind of future total
                  separation easier (spinning off the current IANA
                  Functions Operator within ICANN), this is really the
                  less likely form of total separation.  The more likely
                  form of total separation would be the selection of a
                  new IANA Functions Operator, and that right would be
                  structurally separated from ICANN. 
                  <br>
                  <br>
                  More importantly from an operational perspective, the
                  oversight and stewardship over the operations of the
                  IANA Functions would be structurally separated from
                  ICANN.  It would be firmly in the CSC, the PRT and the
                  multistakeholder board.  This would be the primary job
                  of the Affiliate, putting service accountability front
                  and center.  Yet, it does not slight separability.<br>
                  <br>
                </div>
                <div class="gmail_default"
                  style="font-family:verdana,sans-serif">I believe this
                  proposal has sufficient merit to warrant due
                  consideration.   One of the reasons we have engaged
                  Sidley is so that we can understand the viability and
                  desirability of various models and mechanisms (and so
                  I and other don't have to "play lawyer").  In that
                  spirit, I am forwarding this model to both the CCWG
                  and the Client Committee so that this "Reverse Hybrid"
                  model can be appropriately considered.<br>
                  <br>
                </div>
                <div class="gmail_default"
                  style="font-family:verdana,sans-serif">Speak to you
                  all in a few hours, as dawn rises over New York City.<br>
                </div>
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                  style="font-family:verdana,sans-serif"><br>
                </div>
                <div class="gmail_default"
                  style="font-family:verdana,sans-serif">Greg<br>
                </div>
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                <br>
                <br>
                <br>
                Kind regards to both<br>
                <br>
                Best<br>
                <span><font color="#888888"><br>
                    Paul<br>
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      <br>
      <pre wrap="">_______________________________________________
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</pre>
    </blockquote>
    <br>
    <pre class="moz-signature" cols="72">-- 
Matthew Shears
Global Internet Policy and Human Rights
Center for Democracy &amp; Technology (CDT)
+ 44 (0)771 247 2987</pre>
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