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--></style></head><body bgcolor=white lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Dear Jim, all,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>You may recall that in 2008, ICANN performed an analysis of the cost considerations of the new gTLD program (and later updated in 2009), which discussed the historical/development costs (available here: <a href="https://archive.icann.org/en/topics/new-gtlds/cost-considerations-04oct09-en.pdf">https://archive.icann.org/en/topics/new-gtlds/cost-considerations-04oct09-en.pdf</a>). See section 3.1 of the paper, where it provides a summary of the development costs. It also discusses the appropriate starting point for accruing costs. Hopefully this is helpful, at least as a starting point.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Best,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Steve<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='color:black'>From: </span></b><span style='color:black'><gnso-newgtld-wg-wt1-bounces@icann.org> on behalf of Jim Prendergast <jim@GALWAYSG.COM><br><b>Date: </b>Tuesday, August 8, 2017 at 9:51 AM<br><b>To: </b>Ashley Roberts <ashley.roberts@valideus.com>, "Austin, Donna" <Donna.Austin@team.neustar>, Rubens Kuhl <rubensk@nic.br>, "vanda@scartezini.org" <vanda@scartezini.org><br><b>Cc: </b>"gnso-newgtld-wg-wt1@icann.org" <gnso-newgtld-wg-wt1@icann.org><br><b>Subject: </b>Re: [Gnso-newgtld-wg-wt1] [EXTERNAL] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>To Ashely’s last point and something I mentioned on the call last night. Is it possible to get from the Finance team at ICANN an accounting of everything that went into the “historical costs” to help us assess what might feed into a “cost recovery model” for this next process? </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Thanks</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Jim Prendergast</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>The Galway Strategy Group</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>+1 202 285 3699</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>@jimpren</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> gnso-newgtld-wg-wt1-bounces@icann.org [mailto:gnso-newgtld-wg-wt1-bounces@icann.org] <b>On Behalf Of </b>Ashley Roberts<br><b>Sent:</b> Tuesday, August 08, 2017 12:45 PM<br><b>To:</b> Austin, Donna <Donna.Austin@team.neustar>; Rubens Kuhl <rubensk@nic.br>; vanda@scartezini.org<br><b>Cc:</b> gnso-newgtld-wg-wt1@icann.org<br><b>Subject:</b> Re: [Gnso-newgtld-wg-wt1] [EXTERNAL] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Hi Donna,</span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Thanks for getting the ball rolling on this. I agree that the general trend from the CC2 comments and from our work track seems to support application fees being based on cost recovery. I also agree that the CC2 comments don’t seem to support maintaining the fee of $185,000, so I don’t think we should be making a recommendation for a fee of $185,000 for future application windows. Aside from the CC2 comments not seeming to support such a fee, the fact that there was such a large fee surplus from the 2012 round ($96 mil) coupled with the likelihood of improved efficiencies in the evaluation process (e.g. through aggregating back-end evaluation, as Rubens pointed out, and lower development costs, etc.) suggests a cost-recovery based estimate would be lower than $185,000. </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>I also agree with Rubens that we don’t need to tie ourselves to the same fee out of a concern over competition and fairness. The first mover advantage for 2012 applicants was significant (as much as 4 years and counting), plus I don’t think anything in the original policy suggested the fee couldn’t or wouldn’t change in future rounds. </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>While we are probably not currently in a position to put forward a specific amount for the fee, we could recommend that ICANN carry out a fresh cost estimate based upon parameters that we could help define, and upon the information they have from the 2012 costs.</span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Thanks,</span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Ashley</span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><div><p class=MsoNormal><b><span lang=EN-GB style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#667711'>Ashley Roberts</span></b><o:p></o:p></p><p class=MsoNormal><b><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#667711'>Senior Manager</span></b><b><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#0F9347'> </span></b><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4F4F4F'>| </span><b><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#C39209'>Valideus Ltd</span></b><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4F4F4F'>E: </span><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#538135'><a href="mailto:ashley.roberts@valideus.com"><span style='color:#538135'>ashley.roberts@valideus.com</span></a></span><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4F4F4F'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4F4F4F'>D: +44 20 7421 8264</span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4F4F4F'> </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:7.5pt;font-family:"Verdana",sans-serif;color:#6D6E68'>Liability cannot be accepted for statements made which are clearly the sender’s own and not made on behalf of Valideus. </span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:7.5pt;font-family:"Verdana",sans-serif;color:#6D6E68'>This message is intended solely for the addressee and may contain confidential information. If you have received this message in error, please send it back to us, and immediately and permanently delete it. Do not use, copy or disclose the information contained in this message or in any attachment.</span><o:p></o:p></p><p class=MsoNormal><span lang=EN-GB style='font-size:7.5pt;font-family:"Verdana",sans-serif;color:#6D6E68'>Valideus Ltd is registered in England and Wales with company number 06181291 and VAT number 987 7551 49. Our registered office is at 28-30 Little Russell Street, London, WC1A 2HN.</span><o:p></o:p></p></div><p class=MsoNormal><span lang=EN-GB style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> <a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">gnso-newgtld-wg-wt1-bounces@icann.org</a> [<a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">mailto:gnso-newgtld-wg-wt1-bounces@icann.org</a>] <b>On Behalf Of </b>Austin, Donna via Gnso-newgtld-wg-wt1<br><b>Sent:</b> 07 August 2017 19:10<br><b>To:</b> Rubens Kuhl <<a href="mailto:rubensk@nic.br">rubensk@nic.br</a>>; <a href="mailto:vanda@scartezini.org">vanda@scartezini.org</a><br><b>Cc:</b> <a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a><br><b>Subject:</b> Re: [Gnso-newgtld-wg-wt1] [EXTERNAL] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC</span><o:p></o:p></p></div></div><p class=MsoNormal><span lang=EN-GB> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Hi Rubens and Vanda, comments inline below.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> Rubens Kuhl [<a href="mailto:rubensk@nic.br">mailto:rubensk@nic.br</a>] <br><b>Sent:</b> Sunday, August 06, 2017 3:23 PM<br><b>To:</b> Austin, Donna <<a href="mailto:Donna.Austin@team.neustar">Donna.Austin@team.neustar</a>><br><b>Cc:</b> Sara Bockey <<a href="mailto:sbockey@godaddy.com">sbockey@godaddy.com</a>>; <a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a><br><b>Subject:</b> Re: [Gnso-newgtld-wg-wt1] [EXTERNAL] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Donna,<o:p></o:p></p><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>I believe the data points you mentioned do exist, in the form of the actual expenses incurred by ICANN in the 2012-round. And considering the gains of scale foreseen by aggregating technical evaluation per back-end, with or without RSP program, the actual cost for further rounds is clearly expected to be lower. <o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>DA: I agree that there is data available from 2012 that could be helpful to our discussion and to that end, we should ask Trang if she can provide an overview of the costs associated with the 2012 round, but we would need to define the cost parameters. I agree that an RSP program could reduce the costs associated with the technical evaluation, but current discussions suggest that the technical evaluation could still occur during the application process.</span><o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>But we could adopt something in between specifying a new application fee and the reimbursement idea, like this:<o:p></o:p></p></div><div><p class=MsoNormal>- Application fee will be no less than 50% of the 2012-round fee, and designed to be of a cost-recovery target; in the event it generates more surplus than expected, the reimbursement will be available either as credit towards registry fees for successful applicants or reimbursement for non-approved or drop-out applicants. <o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>DA: I have no objection to the concept, but 50% seems to be a large reduction in terms of fairness and competition for 2012 applicants, but I accept your note below that 2012 applicants will have a time-to-market advantage over future entrants. Any number we come up will largely be arbitrary at this point so the challenge is to come up with a reasoned rationale. We should also look for options to address Vanda’s point about not making the upfront fee too prohibitive, or finding a mechanism that would allow applicants from underserved regions to pay post-evaluation. This would become complicated where there is contention for the string, but if there was no competition for the string then perhaps this would be a little easier.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>It’s also important to decide whether the application fee would change over time. I must admit that when I was thinking about this, it was only from the perspective of the next application window and not beyond that. It would be fair to assume that a lot of the setup costs for the next application window will not be repeated for processes beyond that, particularly as it relates to infrastructure or software development. The outcome of the rounds v first-come-first-serve discussion will be important to this one.</span><o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>One issue to calculate the reimbursement is how much does the legal reserves need to be; the 2012-round proved that litigation either thru internal accountability or legal courts will happen, but how much ? If someone from the work track, or someone from ICANN Board risk committee, could provide an actuary's point of view would be interesting. <o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>DA: Agree that a % of the application fee should be set aside for legal reserves, on the condition that the reserves are set aside for a designated period of time.</span><o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>We should note that 2012-round applicants got a 4 to 6 years time-to-market advantage, and that could be worth much more than the application fee difference. <o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>Rubens<o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal>On Aug 4, 2017, at 7:13 PM, Austin, Donna via Gnso-newgtld-wg-wt1 <<a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a>> wrote:<o:p></o:p></p></div><p class=MsoNormal> <o:p></o:p></p><div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Hi Sara, all</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>I’ve had a look at the responses to the CC2 responses as they relate to Application Fees and believe that the responses are largely consistent with the discussions we have already had within the working group on this topic.<span class=apple-converted-space> </span></span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>My rudimentary analysis of the comments suggest the following:</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Based on the CC2 responses it would appear that most of the respondents support the principle of an application fee that is cost neutral or break even, which is consistent with the cost-recovery model that was developed for the 2012 round. However, many of the responses acknowledge that the assumptions of the 2012 round was off the mark because the number of applications exceeded expectations and resulted in a considerable surplus of funds (approximately $100M).</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>It would appear from the responses that there is little support for maintaining the $185,000 application fee into the future, with many responses suggesting a reduction, with the exception of John Poole who recommended that each applicant require a $1m deposit. However, there was support for the principle that the application fee should maintain a bar sufficient to ensure that applications are worth dedicating resources to evaluation and processing; and fees should not be too low as to be detrimental to security and stability and competition between rounds.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>It would also appear that there is support for the WG providing direction on the use of excess funds, in the event that future rounds result in a surplus of funds.</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Some suggested considerations for moving this conversation forward:</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>While it appears that there is consensus around the concept of an application that achieves the principle of cost-recovery, it is impossible for this group to come up with an actual number for any future round because we have no way to predict how many applications there will be.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>The number of applications for a future application window will depend on a range of factors, including the amount of the application fee.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>We could ask ICANN to provide estimates for costs associated with preparing for the next application window, but I don’t believe we are far along in deciding some of the core issues to provide them with enough guidance on which to base any estimates or predictions.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>What we do have from the 2012 application round is an application fee of $185,000 that resulted in 1930 applications—some 1400 more than was predicted.</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>The policy for the WG could potentially be something along the lines of:</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>The application fee should be based on the principle of cost recovery.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Based on the principles of fairness and competition to 2012 new gTLD applications, $185,000 will be the application fee for any future application window.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>In the event of surplus application fees, ICANN will provide all applicants (successful/unsuccessful?) with a reimbursement of an equal share of the surplus application fees; or</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>In the event of surplus applications fees, ICANN will provide all applicants a reimbursement up to an amount of $50,000/$80,000/$100,000 (successful applicants may choose this reimbursement as a contribution to ICANN’s annual fee); and</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>The remainder of the surplus application fees will be used to support ICANN’s efforts in Universal Awareness and Universal Acceptance (or some other designated activity)</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Some exemptions/exceptions:</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Applications from underserved regions would/could (depending on the policy) have the application fee waived so that it is not considered a barrier to entry.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>There may be other exclusions or exemptions from the application fee that could be developed to remove other possible barriers to entry perceived by some as being too high.</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Rationale:</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='text-indent:-.25in;background:white'><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'>·</span><span style='font-size:7.0pt;color:#1F497D'> <span class=apple-converted-space> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>We have a principle of cost recovery, but rather than requiring complex economic modelling (or somebody’s best guess) to arrive at the amount of the application fee, we achieve the principle in an order of reverse by providing a reimbursement of a portion of the application fee equal to the distribution of excess funds.</span><o:p></o:p></p></div><div style='margin-left:.5in'><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>I don’t believe we can solve this problem absent a considerable amount of data that at this point in time simply doesn’t exist, so I offer this as a possible way to enable us to move forward and certainly to encourage discussion.</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Donna</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><o:p></o:p></p></div><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><div><p class=MsoNormal style='background:white'><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span class=apple-converted-space><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">gnso-newgtld-wg-wt1-bounces@icann.org</a> [<a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">mailto:gnso-newgtld-wg-wt1-bounces@icann.org</a>]<span class=apple-converted-space> </span><b>On Behalf Of<span class=apple-converted-space> </span></b>Sara Bockey<br><b>Sent:</b><span class=apple-converted-space> </span>Thursday, August 03, 2017 9:31 AM<br><b>To:</b><span class=apple-converted-space> </span><a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a><br><b>Subject:</b><span class=apple-converted-space> </span>[EXTERNAL] [Gnso-newgtld-wg-wt1] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC</span><o:p></o:p></p></div></div></div><div><p class=MsoNormal style='background:white'><span style='font-family:"Calibri",sans-serif'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'>Dear All,</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'>The next call for the New gTLD Subsequent Procedures Sub Team – Track 1 - Overall Process/Support/Outreach Issue will take place on <b>Tuesday, 8 August 2017 at 3:00 UTC.</b></span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'>The proposed agenda is as follows:</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><ol style='margin-top:0in' start=1 type=1><li class=MsoNormal style='margin-left:0in;mso-list:l0 level1 lfo3;background:white'><span style='font-family:"GT Walsheim Regular"'>Welcome & Agenda Overview</span><o:p></o:p></li><li class=MsoNormal style='margin-left:0in;mso-list:l0 level1 lfo3;background:white'><span style='font-family:"GT Walsheim Regular"'>SOIs</span><o:p></o:p></li><li class=MsoNormal style='margin-left:0in;mso-list:l0 level1 lfo3;background:white'><span style='font-family:"GT Walsheim Regular"'>Review of CC2 responses to WT1 questions</span><o:p></o:p></li></ol><ol style='margin-top:0in' start=3 type=1><ol style='margin-top:0in' start=1 type=1><li class=MsoNormal style='margin-left:0in;mso-list:l0 level2 lfo3;background:white'><span style='font-family:"GT Walsheim Regular"'>Application Fees</span><o:p></o:p></li><li class=MsoNormal style='margin-left:0in;mso-list:l0 level2 lfo3;background:white'><span style='font-family:"GT Walsheim Regular"'>Systems</span><o:p></o:p></li></ol></ol><ol style='margin-top:0in' start=4 type=1><li class=MsoNormal style='margin-left:0in;mso-list:l0 level1 lfo3;background:white'><span style='font-family:"GT Walsheim Regular"'>AOB</span><o:p></o:p></li></ol><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'>The CC2 responses we will be covering may be review in the google document: <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__docs.google.com_spreadsheets_d_1427pgTCkguOj2NZZzMnz-5FH-5FlPe54dtvUErSJd9uhkZw_edit-23gid-3D1442059046&d=DwMGaQ&c=MOptNlVtIETeDALC_lULrw&r=CwipU91YB6EkpFXK9ynnT_QUef4yC5p7jpsDm8cU97g&m=KxXpBeMo6gbRQ-BqdZ0TqFv_TRF2rGQiCdN-DB_qN84&s=4vy3M-5mmpfeBvqqyXWRPSI-t6ZrUwBiYzDw4G8yxqQ&e="><span style='color:#954F72'>https://docs.google.com/spreadsheets/d/1427pgTCkguOj2NZZzMnz_H_lPe54dtvUErSJd9uhkZw/edit#gid=1442059046</span></a>. </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'>Chat soon!</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'>Sara</span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><span style='font-family:"GT Walsheim Regular"'> </span><o:p></o:p></p></div><p class=MsoNormal style='margin-bottom:1.0pt;background:white'><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#02C54C'>sara bockey</span></b><o:p></o:p></p><p class=MsoNormal style='margin-bottom:1.0pt;background:white'><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'>policy manager |<span class=apple-converted-space> </span></span></b><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#02C54C'>Go</span></b><b><span style='font-size:9.0pt;font-family:"GD Boing"'>Daddy<sup>™</sup></span></b><o:p></o:p></p><p class=MsoNormal style='margin-bottom:1.0pt;background:white'><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'><a href="mailto:sbockey@godaddy.com"><span style='color:#954F72'>sbockey@godaddy.com</span></a> 480-366-3616</span></b><o:p></o:p></p><div><div><p class=MsoNormal style='background:white'><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'>skype: sbockey</span></b><o:p></o:p></p></div></div><div><p class=MsoNormal style='background:white'><span style='font-size:10.5pt;font-family:"GT Walsheim Light"'> </span><o:p></o:p></p></div><div><p class=MsoNormal style='background:white'><i><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;background:white'>This email message and any attachments hereto is intended for use only by the addressee(s) named herein and may contain confidential information. If you have received this email in error, please immediately notify the sender and permanently delete the original and any copy of this message and its attachments.</span></i><o:p></o:p></p></div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif;background:white'>_______________________________________________</span><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'><br><span style='background:white'>Gnso-newgtld-wg-wt1 mailing list</span><br><span style='background:white'><a href="mailto:Gnso-newgtld-wg-wt1@icann.org">Gnso-newgtld-wg-wt1@icann.org</a></span><br><span style='background:white'><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__mm.icann.org_mailman_listinfo_gnso-2Dnewgtld-2Dwg-2Dwt1&d=DwMFaQ&c=MOptNlVtIETeDALC_lULrw&r=CwipU91YB6EkpFXK9ynnT_QUef4yC5p7jpsDm8cU97g&m=Bdo0YPBPXCMV4oPzXW_8oGk9gquzou0maBmme5RbyNA&s=p4hxlu8rLGQN6CfZQEb5ZXdfFayWwy9qK6ooinj_0PQ&e=">https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg-wt1</a></span></span><o:p></o:p></p></div></blockquote></div><p class=MsoNormal> <o:p></o:p></p></div></div></body></html>