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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><a name="_MailEndCompose"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Hi,<o:p></o:p></span></a></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>After the gNSO call Monday (not the WT 1 call Tuesday) it seems that we have these variables:<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l2 level1 lfo2'><![if !supportLists]><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Application related effective costs (incl. reimbursed fees etc.)<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l2 level1 lfo2'><![if !supportLists]><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Number of applications that ICANN can process annually<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l2 level1 lfo2'><![if !supportLists]><span style='font-size:11.0pt;font-family:Symbol;color:#1F497D'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Number of applications submitted by<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>We can influence ICANN to a degree and make them processing say 1,000 or probably max 2,000 applications annually (in the last round that number was WAY lower). The number of incoming applications is likely simply a function of the cost: The less expensive the more avalanche. If for a company their own gTLD is cheaper than a three letter .com domain: Well, let’s go for a gTLD instead of feeding “Domain Investors”. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>In the same time we discuss the application submission method for AFTER the 2<sup>nd</sup> round. Some want a short period between rounds to fix minor problems. Others want to “open the floodgates” just a few month after the 2<sup>nd</sup> round application window closed.<br><br>If we get 10k applications and ICANN can process 2k (or we get 2k applications and ICANN can process 1k annually) we have clocked up the system for 2 to 5 years. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><br>If we take this as a basis I think a few things become instantly clear:<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l4 level1 lfo4'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>It doesn’t make ANY sense to reduce the effective application fees in the 2<sup>nd</sup> round: it leads to a big delay of the 3<sup>rd</sup> round (or whatever follows the 2<sup>nd</sup> round). We shouldn’t make ourselves slaves of a mantra called “Cost Recovery”. <o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l4 level1 lfo4'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Instead it would make GREAT sense to double or even triple the application fees in the next round: To reduce the “load”. (I know: there are arguments to the counter; and what would be the justification; and what to do with all the excess fees? If not money: what other “hurdle” could we install?)<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l4 level1 lfo4'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Once ICANN publishes the application roster we know exactly how long it takes until ICANN could process new applications: number of apps divided by ICANN’s annual processing speed. We could already now include a provision in the new AG that states that the next submission opportunity (ongoing or round is another discussion) starts after the X years – with X being a function from the calculation once the roster has been published! That creates predictability – yet preserves flexibility as it includes the unknown number of applications submitted in the solution! If we get 3k applications, and ICANN promises to process 1.5k annually – the next round starts 2 years later. It would be set in stone – and the next applicants could prepare themselves. <o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-18.0pt;mso-list:l4 level1 lfo4'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>4.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>At US $500k (or better $1 Million) application fee that period would likely be one year or less – and just in case we had only 200 applications at that application fee point; so what: The next round we drop the fee by 50%. This way we have a very smooth introduction of TLDs – and a very predictable schedule. Neither geos nor brands have anything to fear at all (as their names are unique – and objection phases exist: so if they deem it too expensive they just wait a little) and generic term based gTLDs: well, all the better if someone thinks he can recover higher costs they will have to work harder.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>In any case: Once it is foreseeable that the ICANN system is clocked up for “X” years (e.g. 2 to 5 years) – accepting new applications right away doesn’t make any sense. Especially not if this would be conducted in a “first come first serve” manner. Instead we should use the time to identify flaws and injustices – fix these WHILE ICANN processes the applications and let demand pent up. Competition is the fuel that drove the Internet after all – I do not think it is ICANN’s mission to eliminate competition. Pent up demand is not a flaw; it is a feature. At least in the United States of America and Europe.<br><br>Nutshell: Higher applications fees in the 2<sup>nd</sup> round; the 3<sup>rd</sup> round window already defined in the AG as a function of app number divided by application processing speed of ICANN, pent-up demand instead of 1<sup>st</sup> come 1<sup>st</sup> serve. Once we see a round WITHOUT much contention we can “open the floodgates”.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Thanks,<br><br>Alexander <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><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>Sara Bockey<br><b>Sent:</b> Montag, 7. August 2017 23:38<br><b>To:</b> Vanda Scartezini <vanda@scartezini.org>; Austin, Donna <Donna.Austin@team.neustar>; Rubens Kuhl <rubensk@nic.br><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<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'>Thank you, Donna, Vanda and Rubens for your feedback on this. You’ve all made some excellent points and suggestions. We look forward to discussing this further and additional input during our next call in a few hours.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'>Best,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'>Sara<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'><o:p> </o:p></span></p><div><p class=MsoNormal style='margin-bottom:1.0pt'><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#02C54C'>sara bockey</span></b><span style='font-family:"Calibri",sans-serif;color:black'><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:1.0pt'><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'>policy manager | </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";color:black'>Daddy<sup>™</sup></span></b><span style='font-family:"Calibri",sans-serif;color:black'><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:1.0pt'><a href="mailto:sbockey@godaddy.com"><b><span style='font-size:9.0pt;font-family:"GD Boing"'>sbockey@godaddy.com</span></b></a><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'> 480-366-3616</span></b><span style='font-family:"Calibri",sans-serif;color:black'><o:p></o:p></span></p><div><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'>skype: sbockey</span></b><span style='font-size:10.5pt;font-family:"GT Walsheim Light";color:black'><o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:10.5pt;font-family:"GT Walsheim Light";color:black'><o:p> </o:p></span></p></div><p class=MsoNormal><i><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:black;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><span style='font-family:"GT Walsheim Light"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"GT Walsheim Light"'><o:p> </o:p></span></p><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span style='color:black'>From: </span></b><span style='color:black'>Vanda Scartezini <</span><a href="mailto:vanda@scartezini.org">vanda@scartezini.org</a><span style='color:black'>><br><b>Date: </b>Monday, August 7, 2017 at 1:06 PM<br><b>To: </b>"Austin, Donna" <</span><a href="mailto:Donna.Austin@team.neustar">Donna.Austin@team.neustar</a><span style='color:black'>>, Rubens Kuhl <</span><a href="mailto:rubensk@nic.br">rubensk@nic.br</a><span style='color:black'>><br><b>Cc: </b>Sara Bockey <</span><a href="mailto:sbockey@godaddy.com">sbockey@godaddy.com</a><span style='color:black'>>, "</span><a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a><span style='color:black'>" <</span><a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a><span style='color:black'>><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><div><div><p class=MsoNormal>Thanks for your feedback Donna. I understand having string conflict will be difficult to postpone but I was thinking only for cities ( government) which can face some pontual difficulty depends on the election calendar of each region. In general I would follow the idea to stick with same price for this next round. May be will be some surplus with such value but we can use as reserve to face any litigation, as suggested by Rubens or well as to define some alternative for reimbursement. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><div id="MAC_OUTLOOK_SIGNATURE"><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>Vanda Scartezini</span></i></b><o:p></o:p></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>Polo Consultores Associados</span></i></b><o:p></o:p></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>Av. Paulista 1159, cj 1004</span></i></b><o:p></o:p></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>01311-200- Sao Paulo, SP, Brazil</span></i></b><o:p></o:p></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>Land Line: +55 11 3266.6253</span></i></b><o:p></o:p></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>Mobile: + 55 11 98181.1464 </span></i></b><o:p></o:p></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#009193'>Sorry for any typos. </span></i></b><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Century Gothic",sans-serif;color:black'> </span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span lang=PT-BR style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:black'> </span><o:p></o:p></p></div></div></div><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p></div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span style='font-family:"Calibri",sans-serif;color:black'>From: </span></b><span style='font-family:"Calibri",sans-serif;color:black'>"Austin, Donna" <</span><a href="mailto:Donna.Austin@team.neustar"><span style='font-family:"Calibri",sans-serif'>Donna.Austin@team.neustar</span></a><span style='font-family:"Calibri",sans-serif;color:black'>><br><b>Date: </b>Monday, August 7, 2017 at 15:10<br><b>To: </b>Rubens Kuhl <</span><a href="mailto:rubensk@nic.br"><span style='font-family:"Calibri",sans-serif'>rubensk@nic.br</span></a><span style='font-family:"Calibri",sans-serif;color:black'>>, Vanda Scartezini <</span><a href="mailto:vanda@scartezini.org"><span style='font-family:"Calibri",sans-serif'>vanda@scartezini.org</span></a><span style='font-family:"Calibri",sans-serif;color:black'>><br><b>Cc: </b>Sara Bockey <</span><a href="mailto:sbockey@godaddy.com"><span style='font-family:"Calibri",sans-serif'>sbockey@godaddy.com</span></a><span style='font-family:"Calibri",sans-serif;color:black'>>, "</span><a href="mailto:gnso-newgtld-wg-wt1@icann.org"><span style='font-family:"Calibri",sans-serif'>gnso-newgtld-wg-wt1@icann.org</span></a><span style='font-family:"Calibri",sans-serif;color:black'>" <</span><a href="mailto:gnso-newgtld-wg-wt1@icann.org"><span style='font-family:"Calibri",sans-serif'>gnso-newgtld-wg-wt1@icann.org</span></a><span style='font-family:"Calibri",sans-serif;color:black'>><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;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p></div><blockquote style='border:none;border-right:solid #B5C4DF 4.5pt;padding:0cm 0cm 0cm 0cm;margin-left:3.75pt;margin-top:5.0pt;margin-right:0cm;margin-bottom:5.0pt' id="MAC_OUTLOOK_ATTRIBUTION_BLOCKQUOTE"><div><div><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 0cm 0cm 0cm'><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 [</span><a href="mailto:rubensk@nic.br"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>mailto:rubensk@nic.br</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>] <br><b>Sent:</b> Sunday, August 06, 2017 3:23 PM<br><b>To:</b> Austin, Donna <</span><a href="mailto:Donna.Austin@team.neustar"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Donna.Austin@team.neustar</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>><br><b>Cc:</b> Sara Bockey <</span><a href="mailto:sbockey@godaddy.com"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>sbockey@godaddy.com</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>>; </span><a href="mailto:gnso-newgtld-wg-wt1@icann.org"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>gnso-newgtld-wg-wt1@icann.org</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><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:36.0pt'><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:36.0pt'><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:36.0pt'><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:36.0pt'><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:36.0pt'><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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><p class=MsoNormal style='text-indent:-18.0pt;background:white'><span style='font-size:11.0pt;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:36.0pt'><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 0cm 0cm 0cm'><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><a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>gnso-newgtld-wg-wt1-bounces@icann.org</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> [</span><a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>mailto:gnso-newgtld-wg-wt1-bounces@icann.org</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>]<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></span><a href="mailto:gnso-newgtld-wg-wt1@icann.org"><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>gnso-newgtld-wg-wt1@icann.org</span></a><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><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:0cm' start=1 type=1><li class=MsoNormal style='mso-list:l5 level1 lfo7;background:white'><span style='font-family:"GT Walsheim Regular"'>Welcome & Agenda Overview</span><o:p></o:p></li><li class=MsoNormal style='mso-list:l5 level1 lfo7;background:white'><span style='font-family:"GT Walsheim Regular"'>SOIs</span><o:p></o:p></li><li class=MsoNormal style='mso-list:l5 level1 lfo7;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:0cm' start=3 type=1><ol style='margin-top:0cm' start=1 type=1><li class=MsoNormal style='mso-list:l5 level2 lfo7;background:white'><span style='font-family:"GT Walsheim Regular"'>Application Fees</span><o:p></o:p></li><li class=MsoNormal style='mso-list:l5 level2 lfo7;background:white'><span style='font-family:"GT Walsheim Regular"'>Systems</span><o:p></o:p></li></ol></ol><ol style='margin-top:0cm' start=4 type=1><li class=MsoNormal style='mso-list:l5 level1 lfo7;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: </span><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='font-family:"GT Walsheim Regular";color:#954F72'>https://docs.google.com/spreadsheets/d/1427pgTCkguOj2NZZzMnz_H_lPe54dtvUErSJd9uhkZw/edit#gid=1442059046</span></a><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"'> </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'><a href="mailto:sbockey@godaddy.com"><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#954F72'>sbockey@godaddy.com</span></b></a><b><span style='font-size:9.0pt;font-family:"GD Boing";color:#111111'> 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><a href="mailto:Gnso-newgtld-wg-wt1@icann.org"><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif;background:white'>Gnso-newgtld-wg-wt1@icann.org</span></a><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'><br></span><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="><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif;background:white'>https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg-wt1</span></a><o:p></o:p></p></div></blockquote></div><p class=MsoNormal> <o:p></o:p></p></div></div></div></blockquote></div></body></html>