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<p class="MsoNormal"><span style="color:#993366">Hi Alexander – I included the CPE to show what would happen with applicants if CPE fails. If so, all 4 applicants could potentially go into private resolution OR the highest bidder would proceed to the Objection
phase. Again, no objection deadline should be triggered unless and until there is a winner. The 2012 process was highly wasteful where string contention existed.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#993366"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#993366">I have questions similar to yours as to the funds going to ICANN, but the “horse is out of the barn” on that one.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#993366">Anne<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#993366"><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 <gnso-newgtld-wg-bounces@icann.org>
<b>On Behalf Of </b>Alexander Schubert<br>
<b>Sent:</b> Tuesday, October 22, 2019 4:48 PM<br>
<b>To:</b> gnso-newgtld-wg@icann.org<br>
<b>Subject:</b> Re: [Gnso-newgtld-wg] FW: String Contention Proposal<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><strong><span style="font-size:9.0pt;font-family:"Helvetica",sans-serif;color:black">[EXTERNAL]</span></strong><span style="font-size:9.0pt;font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Hi Anne,<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">First: Congrats on the fantasy you developed here (in a positive meaning).
<br>
<br>
Simple question: Like in Jeff’s example it seems to not leave any room for private contention resolution. If there was a community priority applicant – and they triggered the CPE (which they WILL – why else agreeing to all the restrictions in the first place)
– and they win CPE and no appeal or objection stops them: the case is obviously simple. So that case doesn’t need any discussion.<br>
<br>
We need to discuss contention sets where community priority doesn’t play (anymore) a role (and that’s the overwhelming majority of contention sets).<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">Two main scenarios:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><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">Private contention set resolution:<br>
The contentions set would sit together and resolve contention (in whatever way). Once they are done resolving contention all but the winner would have to withdraw their application (and usually SPEEDY – within days). But the winner would want to be sure that
they pass the initial evaluation. So in 100 out of 100 cases the entire contention set WILL ask to be evaluated BEFORE they enter private contention set resolution. This WILL lead to delays – and that’s good: It creates an incentive for one of the contention
set members to reject private contention (which in 2012 was in almost all cases a cash payment to the others)<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><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">ICANN Sealed Second-Price Auction (Vickery):<br>
Once scenario 1 doesn’t work out (the contention set doesn’t ask for evaluation) one of the contention set members can immediately after the reveal day (or once a CPE is lost in the rare cases a community priority applicant is involved) ask for the ICANN “Instant
Resolution” (it’s not anymore “last resort”) – and the winner can start trading after being evaluated! This will b SO MUCH faster than waiting for all contentions set members to be evaluated – then entering in a private auction (which takes quite a bit of
time and preparation). As an additional “perk” ICANN could offer the winner of any Vickery auction an instant evaluation – as further incentive!<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">Private contention set resolution translates in almost 100% of all cases to a monetary compensation for the “loss of the asset” (application withdrawal).
The easier and quicker an ICANN “Instant Resolution” is – the less entities would entertain speculative applications. When we created the policies for the first round there was the dreamy vision of applicants sitting around a fire and smoking a peace pipe
– then hugging each other for prolonged periods of time before walking hand in hand into the sundown – being a happy new patchwork gTLD family. Never happened. I am not sure why we are STILL calling it “ICANN LAST RESORT” mechanism. I would rather rephrase
it to “ICANN Instant Resolution”. <br>
<br>
Also: I just don’t understand why the money always has to go to ICANN. If a community owned, funded and governed effort tries to secure for example a city: they came up with the auction funds (and not some “VC”). They might not be able to go for community priority
– take Oakland as example (too many Oaklands – not clearly delineated). If all the money comes from city constituents – why should ICANN pocket it? Why can’t it go to a couple of non-profits in the community that sourced the cash in the first place? This way
if a couple of wealthy people in the community fund the effort – and the auction ends at 5 Million – they know at least it’s staying WITHIN THEIR community – and doesn’t go to “some” cause that is unrelated. It’s inherently unfair for ICANN to extract cash
out of a community – just so they can run “their” string (again: do not conflate “community” and “community priority applicant” – these are two different things altogether: only very few communities qualify as community priority applicant!). Thoughts?<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>Aikman-Scalese, Anne<br>
<b>Sent:</b> Wednesday, October 23, 2019 12:22 AM<br>
<b>To:</b> <a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a><br>
<b>Subject:</b> [Gnso-newgtld-wg] FW: String Contention Proposal<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="color:#1F497D">Regarding Tuesday’s call (Monday night in the US), I am offering the following hypothetical based on Donna’s suggestion to collect sealed bids prior to a reveal of the contention set.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Lucida Console"">String Contention Proposal to Avoid Speculation in TLDs</span></b><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console"">4 applications for .sam<span style="color:#1F497D">
</span>string <span style="color:#1F497D">– contention set and</span> parties not revealed on application date.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console"">Per Donna's suggestion, parties are all 4 notified of string contention and asked to submit sealed bids. Sealed bids received. (Some may drop out.)<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Lucida Console"">Application 1 is a Community Application for .sam for the "Society for Aviation Maintenance". All worldwide aviation maintenance unions back this application. Public comment
is sought.<i><span style="color:#1F497D"> At this point, the other applicants know there is a CPE application but their bids are already in. Should private resolution be permitted at this point or not?</span></i></span></b><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console"">A. CPE Pass<span style="color:#1F497D">
</span>leads to Appeal. If sustained, Application 1 wins. If overturned, move to highest bidder and seek public comment on that application. (It's still possible for this application to be the highest bidder even if it fails CPE.)<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console"">B. CPE Fail leads to Appeal. If overturned, Application 1 wins. If CPE Fail is sustained, move to highest bidder and seek public comment on that application.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Lucida Console"">Application 2 for .sam Purpose: Dedicated to domains for those interested in the Samurai arts.</span></b><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Lucida Console"">Application 3 for .sam Purpose: Free speech on the pros and cons of Uncle Sam</span></b><span style="font-size:10.0pt;font-family:"Lucida Console""> (USG)<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Lucida Console"">Application 4 for .sam Purpose: Retail sales.</span></b><span style="font-size:10.0pt;font-family:"Lucida Console""> Assume CPE for Application 1 fails and that Application
4 submitted the highest sealed bid. Solicit public comment on Application 4 and the Objection deadline is triggered.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""> Sam's Club files Legal Rights Objection against the Application 4 winner.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console"">A.LRO Success leads to Appeal. If successful LRO upheld on appeal, move to the next highest bidder not withdrawn, solicit public comment, and trigger Objection deadline. If LRO
success is overturned, Application 4 wins .sam.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Lucida Console"">B. LRO Failure leads to Appeal. If failed LRO upheld on appeal, Application 4 wins .sam. If failed LRO is overturned, move to the next highest bidder not withdrawn, solicit public
comment, and trigger Objection deadline. <o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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