[Gnso-newgtld-wg-wt5] applicant contractual obligations

Alexander Schubert alexander at schubert.berlin
Fri Nov 16 19:12:53 UTC 2018

Hi Marita,

Please clarify your question. "Domain name holder" - what is that supposed
to be? Sounds like a "registrant" of a 2nd level domain? But as we are only
discussing gTLDs on top level you probably mean the "registry operator"?

After the 2012 round I am very sure that EVERY SINGLE APPLICATION will be
applied for  by using a separate, unique legal entity: "Legal entities" can
be minted by the dozen in no time in most jurisdictions.

So in other words: You can bet that an applicant entity (and subsequently
registry operator) has a unique legal entity as owner of the gTLD (a legal
entity that is not involved in ANY other business operation but that gTLD).
So there is no real need to "sell the name" (I suppose you mean "the gTLD")
- you can simply sell the LEGAL ENTITY; or its shares! If cleverly done that
doesn't even need to be reported to ICANN: Only if shares of larger than 15%
are being sold, ICANN would look into it (not even sure if that is true
AFTER delegation - please if somebody knows: let us know). So you COULD in
theory at ANY point of time after the submission of your application "sell
the gTLD" (application, applicant, registry operator, whatever stage it is
in) to others, if it's being done in 15% share packages to 7 entities e.g. 6
times 15% and one time 10% each to different "owners"). Please correct me if
I am wrong! 

So if you plan to apply for ".shanghai": Just don't designate it as geo-TLD,
DO NOT MENTION the word "city" or "China" at all. Then you do NOT need to
provide a "letter of non-objection". Once you are sure you are the "winner"
(e.g. you where the only applicant, or you won a private auction) you can
now approach the biggest real estate magnate in Shanghai, or the biggest
media conglomerate: and sell the application by transferring ownership of 7
share packages! It's really THAT simple.  I am warning of this since MONTH.
Again: if I am mixing facts here: point it out to me. 



-----Original Message-----
From: Gnso-newgtld-wg-wt5 [mailto:gnso-newgtld-wg-wt5-bounces at icann.org] On
Behalf Of Marita Moll
Sent: Friday, November 16, 2018 6:35 PM
To: gnso-newgtld-wg-wt5 at icann.org
Subject: [Gnso-newgtld-wg-wt5] applicant contractual obligations

Hello. I am wondering whether there is anything in the contract of a domain
name holder that prevents that holder from selling the name to a higher
bidder. I am asking this as it came up in a recent conversation in our
community and, given our lengthy discussions here about domain name
parking/scalping of city or other geo-names, I have assumed that there were
no such restrictions. But, being fairly new here, I was unable to confirm or
deny this idea.

Thanks for any clarification

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