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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">I don’t know a lot about the private string contention resolution issues, but it seems that Sarah’s “silent bid” idea could make sense if the entity that has
entered a silent bid is publicly known. The reasons it seems this idea may have merit are:<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="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo2"><![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">If the winning entity wants to “sell” the TLD after the award, don’t they have to get ICANN approval for the transfer to another entity? Could the
applicant be asked to represent that its bid is not being financed by another TLD Registry Operator?<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo2"><![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">The point of the TLD program was not to raise auction funds. When private entities don’t agree, it’s clear
<o:p></o:p></span></p>
<p class="MsoListParagraph"><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">I am not saying that I am opposed to private string contention resolution entirely. One drawback I see is that if an entity is going to make several silent
bids, then it is going to have a lot of financial risk out there. What if all of its “silent bids” are accepted? Can it then turn some of them down and ICANN would move on to the next entity that applied with the next highest bid. Or does this “silent bid”
system create a situation where companies will be negotiating with each other because they will be “trading” awards like NFL draft picks? (And if that happens, is that a bad thing?)<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">The private auction proposals still don’t address the financial disadvantage for Community Applications. I had typed in chat that I believe we should discuss
a Community priority round here. I also believe the GAC is going to advise a Community Priority round. If private companies can stay in that because we don’t try to censor the appropriate topics and purposes as long as there is a valid community represented,
then nothing would stop them from participating and thus serving online freedom of expression. This would be a whole lot simpler than assigning a certain multiple to a community application.<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">I think maybe Community Evaluation in a Priority Round would be a whole lot simpler than Community Priority Evaluation in a general round. What do others think?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Anne<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#AF272F">Anne E. Aikman-Scalese</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#323232">_____________________________</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#323232">Lewis Roca Rothgerber Christie LLP</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#323232">Tucson, Arizona 85701-1611</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> Gnso-newgtld-wg [mailto:gnso-newgtld-wg-bounces@icann.org]
<b>On Behalf Of </b>trachtenbergm@gtlaw.com<br>
<b>Sent:</b> Tuesday, October 02, 2018 7:33 PM<br>
<b>To:</b> jeff.neuman@comlaude.com; alexander@schubert.berlin; 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>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Jeff,<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"">I don’t know how to structure this or if an effective structure is even possible that permits private resolutions and avoids or minimizes gaming and am happy to put it out
for comment. However, I am confident that we don’t want ICANN making determinations regarding third party private commercial arrangements that it is not involved in and may not be in any way qualified to evaluate.<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 regards,<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>
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<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:#003359">Marc H. Trachtenberg</span></b><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black"><br>
Shareholder </span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><br>
</span><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black">Greenberg Traurig, LLP | 77 West Wacker Drive | Suite 3100 | Chicago, IL 60601<br>
Tel 312.456.1020 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black">Mobile 773.677.3305<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black"><a href="mailto:trachtenbergm@gtlaw.com"><span style="color:#003359">trachtenbergm@gtlaw.com</span></a> |
<a href="http://www.gtlaw.com/"><span style="color:#003359">www.gtlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="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"><img border="0" width="185" height="30" id="_x0000_i1025" src="cid:image004.jpg@01D45B0E.67EF1AE0" alt="Greenberg Traurig"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""><o:p> </o:p></span></p>
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<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""> Jeff Neuman [<a href="mailto:jeff.neuman@comlaude.com">mailto:jeff.neuman@comlaude.com</a>]
<br>
<b>Sent:</b> Tuesday, October 2, 2018 8:22 PM<br>
<b>To:</b> Trachtenberg, Marc H. (Shld-Chi-IP-Tech) <<a href="mailto:trachtenbergm@gtlaw.com">trachtenbergm@gtlaw.com</a>>;
<a href="mailto:alexander@schubert.berlin">alexander@schubert.berlin</a>; <a href="mailto:gnso-newgtld-wg@icann.org">
gnso-newgtld-wg@icann.org</a><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>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Thanks Marc. To be clear, this was not a proposal of something I want or believe should happen, but just another potential path.<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"">In the scenario of the two United’s in my example, if there was an agreement between the parties to not object to the delegation of the two strings (Assuming that would not
put the strings into contention with others), that would be the type of permissible private resolution agreements.<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 there were other forms of permissible private resolution scenarios, that too can be subject to approval.
<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"">Of course, the proposal I mentioned in the P.S. is full of holes that would need to be filled. But by the same token, I don’t believe it has to be either we allow no private
resolutions or we all allow every form of private resolution (including auctions) which is what others were suggesting.<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"">So, turning the question back to you, how would you structure this?<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>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Jeff Neuman</span></b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Senior Vice President <o:p></o:p></span></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Com Laude | Valideus<br>
</span></b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">1751 Pinnacle Drive
<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Suite 600, McLean<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">VA 22102, USA<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><br>
D: +1.703.635.7514<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">T: +44 (0) 20 7421 8250<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">E:
</span><u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#0563C1"><a href="mailto:jeff.neuman@comlaude.com">jeff.neuman@comlaude.com</a></span></u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><br>
<a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.comlaude.com&d=DwMFAg&c=2s2mvbfY0UoSKkl6_Ol9wg&r=L7MB7eHT-UoCXD4iA3c7Sm3JrKXt7T1dG3NjBzCxm1c&m=sGxLgk0zjvnn7apzDIoqMEmf4W6YaIzyuO1XkKAKalY&s=C96ift1vFS6RzrPlm6Lqi7jg5oCKfumGkw-nX5hzGPo&e=">www.comlaude.com</a></span><u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#0563C1"><o:p></o:p></span></u></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><br>
Liability cannot be accepted for statements made which are clearly the sender’s own and not made on behalf of Com Laude USA or Valideus USA. 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.Com Laude USA and Valideus are trading names of Consonum, Inc.</span><u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#0563C1"><o:p></o:p></span></u></p>
</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 #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:trachtenbergm@gtlaw.com">trachtenbergm@gtlaw.com</a> <<a href="mailto:trachtenbergm@gtlaw.com">trachtenbergm@gtlaw.com</a>>
<br>
<b>Sent:</b> Tuesday, October 2, 2018 7:24 PM<br>
<b>To:</b> Jeff Neuman <<a href="mailto:jeff.neuman@comlaude.com">jeff.neuman@comlaude.com</a>>;
<a href="mailto:alexander@schubert.berlin">alexander@schubert.berlin</a>; <a href="mailto:gnso-newgtld-wg@icann.org">
gnso-newgtld-wg@icann.org</a><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"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Jeff,<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"">I was with you until the P.S. Do you really want to leave it up to ICANN and trust them to make a determination of what are acceptable forms of private resolution? I don’t
even mean deciding <i>which</i> forms are acceptable, which you indicate would be determined by the community. But with all the potential variations of private resolution, you would want ICANN to determine if a particular form is close enough to the acceptable
ones? I see arbitrary decisions, frustrated applicants, and IRPs if we go down that path.<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 regards,<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>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:#003359">Marc H. Trachtenberg</span></b><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black"><br>
Shareholder </span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><br>
</span><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black">Greenberg Traurig, LLP | 77 West Wacker Drive | Suite 3100 | Chicago, IL 60601<br>
Tel 312.456.1020 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black">Mobile 773.677.3305<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Trebuchet MS","sans-serif";color:black"><a href="mailto:trachtenbergm@gtlaw.com"><span style="color:#003359">trachtenbergm@gtlaw.com</span></a> |
<a href="http://www.gtlaw.com/"><span style="color:#003359">www.gtlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="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"><img border="0" width="185" height="30" id="Picture_x0020_1" src="cid:image004.jpg@01D45B0E.67EF1AE0" alt="Greenberg Traurig"><o:p></o:p></span></p>
</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 #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 [<a href="mailto:gnso-newgtld-wg-bounces@icann.org">mailto:gnso-newgtld-wg-bounces@icann.org</a>]
<b>On Behalf Of </b>Jeff Neuman<br>
<b>Sent:</b> Tuesday, October 2, 2018 6:03 PM<br>
<b>To:</b> <a href="mailto:alexander@schubert.berlin">alexander@schubert.berlin</a>;
<a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><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"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Thanks 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"">I AM SENDING THIS E-MAIL AS FOOD FOR THOUGHT AND NOT ADVOCATING A PARTICULAR POSITION. THIS IS NOT A POSITION OF THE LEADERSHIP OF THE WORKING GROUP, BUT RATHER MY OWN THOUGHTS
TO KEEP THE CONVERSATION MOVING.<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" style="margin-bottom:12.0pt"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Before we engage in whether something will be a pointless exercise or whether whatever we create will be non-enforceable or will lead to gaming,
etc., I would like to make sure that this supplemental report from a policy perspective reflects the views of members in the Working Group. Some of these views are expressed below.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">First, unless I am completely misreading the past few months and the discussions that have taken place, there seems to be a general view from many members of the Working
Group that creating a process that allows applicants to generate substantial sums of money from not being selected as the applicant in a contention set does not serve the public interest. Or stated differently, there seems to be a desire to not create incentives
for applicants to apply for strings with the intention of losing contention sets to generate money. [Some have used much stronger language, but I am trying to put it in a more objective way].<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"">Second, although many are not in favor of private auctions, some do believe that certain forms of private resolution of contention sets may actually be constructive and in
the public interest. We have discussed the notion, for example, of two entities applying for the same string, but then after negotiations either allowing one party to use the string, while the other selects a different string or both choosing different strings
(eg., United Airlines and United Van Lines both apply for .united and then agree to change to .unitedair and .unitedvan).<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"">Third, some members of the group discussed the notion that if applicants in a contention set could figure out a way for all of them to be involved in the Registry through
a joint venture, that may not necessarily be a bad thing either.<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"">Perhaps you, Jon and others are right that we may not be able to create the perfect non-gaming solution. Or perhaps after putting this out to the community for comment,
someone will have an idea that will be workable. <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"">I think it is our obligation to put this out for comment and see rather than just giving this up.<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"">P.S. As I could not sleep last night a thought did occur to me that one option may be that any private resolution would need to be approved by ICANN (or its designee) whereby
ICANN would need to see the ultimate agreement between the parties to ensure that any private resolution agreement reached did not contain anything that was deemed to be a prohibited form of resolution. And the registry agreement would have to contain representations
and warranties (with severe penalties) that the agreement reviewed by ICANN contained all of the terms and conditions between the parties (i.e., no side deals or side letters).<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"">So, we could have a policy that stated in short hand:<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" style="margin-left:20.65pt;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><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"">No Private Resolution of contention sets except as otherwise approved by ICANN<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:20.65pt;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><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"">Acceptable forms of Private Resolution that could be approved by ICANN include: [List acceptable forms like the ones mentioned above plus other forms the Working
Group believes are beneficial]<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:20.65pt;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><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"">If parties are found to have engaged in non acceptable forms of private resolution, that will result in (a) withdrawing of an application – if an agreement was
not signed by the time it is discovered, or (b) forfeiture of the registry (if after a contract is signed)<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"">Lots of details to work out if the Working Group were comfortable with that, but I believe that putting this stuff out there for public comment would generate some of those
necessary details.<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 regards,<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>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Jeff Neuman</span></b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Senior Vice President <o:p></o:p></span></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Com Laude | Valideus<br>
</span></b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">1751 Pinnacle Drive
<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">Suite 600, McLean<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">VA 22102, USA<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><br>
D: +1.703.635.7514<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">T: +44 (0) 20 7421 8250<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black">E:
</span><u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#0563C1"><a href="mailto:jeff.neuman@comlaude.com">jeff.neuman@comlaude.com</a></span></u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><br>
<a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.comlaude.com&d=DwMFAg&c=2s2mvbfY0UoSKkl6_Ol9wg&r=L7MB7eHT-UoCXD4iA3c7Sm3JrKXt7T1dG3NjBzCxm1c&m=6Jp5kthmUgqmANJftGI7fJiWiMB0R_I2TT44FKBcplw&s=_1MOr7pmXHFdpoubj6YmvJTMMZaP5CsrNJW2ITitgeI&e=">www.comlaude.com</a></span><u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#0563C1"><o:p></o:p></span></u></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black"><br>
Liability cannot be accepted for statements made which are clearly the sender’s own and not made on behalf of Com Laude USA or Valideus USA. 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.Com Laude USA and Valideus are trading names of Consonum, Inc.</span><u><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#0563C1"><o:p></o:p></span></u></p>
</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 #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 <<a href="mailto:gnso-newgtld-wg-bounces@icann.org">gnso-newgtld-wg-bounces@icann.org</a>>
<b>On Behalf Of </b>Alexander Schubert<br>
<b>Sent:</b> Tuesday, October 2, 2018 10:11 AM<br>
<b>To:</b> <a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><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"><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>
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<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 [<a href="mailto:gnso-newgtld-wg-bounces@icann.org">mailto:gnso-newgtld-wg-bounces@icann.org</a>]
<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 <<a href="mailto:AAikman@lrrc.com">AAikman@lrrc.com</a>><br>
<b>Cc:</b> <a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<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>
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<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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Thanks. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Jon<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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