<html 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)">
<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;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Calibri",sans-serif;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:12.0pt;
font-family:"Calibri",sans-serif;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style>
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72">
<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:11.0pt">Dear EPDP team, <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Please see the below note and attached study on legal/natural differentiation from Karen Lentz, Senior Director, Policy Research & Data Services.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eleeza and Dan<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">ICANN org liaisons</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">------<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Dear EPDP Team,</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Attached is the report on risks, costs, and feasibility of differentiation between legal and natural persons, per the EPDP Phase 1 recommendation 17.2. Some key points are summarized below.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">We
were asked to respond to the Phase 1 recommendation 17.2 on evaluating the risks, costs, and feasibility of differentiating between legal and natural persons in registration data directory services.<br>
<br>
<br>
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">The
report is to help inform the policy deliberations, and does not provide policy recommendations. As discussed with the EPDP Team, providing recommendations or normative assessments as to the differentiation between Legal and Natural persons was not in scope
for the study.<br>
<br>
<br>
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">The
report reviews available analysis on this topic, including a review of academic literature and legal advice, as well as inputs from a questionnaire sent to the EPDP Team and ICANN Community with questions on differentiation.<br>
<br>
<br>
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">The
study uses a model that illustrates how risks, costs/benefits and feasibility are affected under different policy scenarios. The aim is to demonstrate how changing a variable at the policy level affects the system as a whole.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">The
report finds that differentiation would, in effect, redistribute the risks and costs associated with processing registration data.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">End-users
of registration data noted a number of risks and costs from having access to fewer data records as a result of the data redaction associated with applicable laws and policies (e.g., decreased cybercrime and/or intellectual property enforcement capabilities).</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">The
model presented illustrates how this redistribution of risks and costs might change under a policy requiring differentiation. In such a scenario, contracted parties would bear many of the costs and risks associated with differentiation, such as the cost of
devising and implementing an accurate and reliable method to differentiate, as well as the risk of legal liability should such a method fail to accurately differentiate. </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">Differentiation
could pose a cost to natural person registrants, if it results in some proportion of natural person registrant data being published as a result of error or negligence. </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in"><span style="font-size:10.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">The
benefits of differentiation, as well as the impact of measures to mitigate the risks and costs of differentiation, may outweigh these risks and costs under a scenario in which differentiation is a policy requirement. It remains for the EPDP Team to determine
the relative balance of these factors as they deliberate on the topic.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">I understand the Phase 2 team is closing with its work plan and will not be addressing the differentiation issue in its Final Report. Nonetheless we wanted to share the information, which can also
be used as a basis for continuing discussion, as the GNSO Council is discussing how to proceed with the priority 2 issues. </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">I also acknowledge that the report delivery is later than we hoped. We appreciate the team’s interest in this and can support further discussion at the relevant phase, and when the Team has had
an opportunity to review.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Best regards,</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Karen</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">-- </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Karen Lentz</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Senior Director, Policy Research & Data Services</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Internet Corporation for Assigned Names and Numbers (ICANN)</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Mobile: +1 310 895 3637</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">www.icann.org</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
</body>
</html>