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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Well,<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'>If you would just ban chocolate ice-cream, then that would do the trick for me personally.<br><br>But Jon is right:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>For the overwhelming portion of applicants their new gTLD applications represent some sort of “financial asset”. If just one entity within a given contention set is driven by commercial aspects (creating profits for example) then they will NOT be willing to give up their “position” without a fair “compensation”. Which in our world is usually “cash”. That might be different if for example the European and the U.S. board of pharmacies had each applied for a non-profit registry “.pharmacy” – with the aim to make online commerce for pharmaceutical products safer. They might come up with an agreement – and for example join forces to operate the string jointly. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><br>So in other words: In the overwhelming majority of cases “private contention resolution” equals: A way to determine the fair value of and then processing a compensation for those who have to withdraw their applications. And obviously the different “private” auction models have proven to be reliable to achieve that. But Jon is right: If not an “auction”: it would be always a way to COMPENSATE THE APPLICANTS WHO GIVE UP THEIR APPLICATION. And who pays for that? Nobody has any motivation but the applicant who will remain the only contention set member. Who else would come up with that “compensation”?<br><br>So in this respect: If we want to foster “private contention set resolution” – then “denying auctions” is pointless.<br><br>I have always been very outspoken AGAINST auctions – because these invite speculative registrations and “extortion” of other applicants. But this isn’t tied to the contention set resolution mechanism “auction” – but rather to the nature of “compensation”. And private contention set resolution is usually synonym to just that: fair compensation for those who withdraw; paid for by the prevailing applicant. <br><br>So I am in agreement with Jon on this: We either scrap the “private contention resolution” – or we leave it in the AGB. If we leave it in the AGB – then any attempts to “regulate it” would create an ad absurdum. In my eyes this is btw another argument why we should keep (or even raise) the entry barrier into new gTLD applications. One entry barrier could be the application cost: Keep it at the 2012 level or raise it even. At least for the next round(s) – until “contention” doesn’t anymore play a role.<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'>Thanks,<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'>Alexander<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><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 [mailto:gnso-newgtld-wg-bounces@icann.org] <b>On Behalf Of </b>Jon Nevett<br><b>Sent:</b> Tuesday, October 02, 2018 5:06 AM<br><b>To:</b> Aikman-Scalese, Anne <AAikman@lrrc.com><br><b>Cc:</b> gnso-newgtld-wg@icann.org<br><b>Subject:</b> Re: [Gnso-newgtld-wg] Proposed agenda - New gTLD Subsequent Procedures PDP WG - 2 October 2018 at 03:00 UTC<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I have significant suggested changes to the private auction section in the attached. There appears to be a fundamental misunderstanding of private auctions vs. other types of private resolutions in the 2012 round. If the WG wants to forbid all private resolutions and require an auction of last resort, it could do so as a matter of policy. <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I don't see how, however, the WG could bad one form of private resolution and not any others. If just private auctions are banned, then the applicants will come up with another way to pay each other. In a simple example take a contention set with only two applicants, the parties could simply negotiate a sale; could flip a coin with the loser to pay a pre-determined amount; could do a cut and choose option; could do a swap if there were more than one TLDs in contention between the parties, etc. There are dozens of creative ways to resolve contention sets without a private auction. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>In other words, if the WG wants all the money to go to ICANN or charity, it needs to ban all private resolutions (not just private auctions). Just banning private auctions would be like just banning one flavor of ice cream.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>The question is whether the WG has a consensus to ban private resolution and force auctions of last resort or some other means to resolve contention. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Thanks. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Jon<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>