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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'> </span>Dear Jeff,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>As discussed on the call yesterday here a brief suggestion regarding a “use requirement”. First a summary of my suggestion:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'><b>The new RA (Registry Agreement) should contain a clause that denies contract renewal if registries have not had a Sunrise registration phase (Spec-13 Brand Registries would be exempted from this clause).<o:p></o:p></b></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Here my rationale for this:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'>Obviously the 2007 PDP demanded a use requirement. Hence currently registries face steep penalties for not contracting (application will be withdrawn) and not testing/entering the root (cancelation of the contract). <o:p></o:p></p><p class=MsoNormal style='margin-left:36.0pt'><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'>Let’s be cognizant of the 3 gTLD categories that emerged in 2012:<o:p></o:p></p><p class=MsoListParagraph style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>Spec 13 gTLDs (Brands)<o:p></o:p></p><p class=MsoListParagraph style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>Geo gTLDs (mainly cities)<o:p></o:p></p><p class=MsoListParagraph style='margin-left:72.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>All others <o:p></o:p></p><p class=MsoNormal style='margin-left:36.0pt'><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'>We can’t always find “one size fits all” solutions – and claim that in absence of a global solution we will not create ANY solution at all. That said: I can’t speak for the category 1. And as Martin Sutton said on the Monday GNSO call: if “use” was defined by “number of domains”: nothing more easy than registering a number of domains. So yes: for brand gTLDs it’s nifty to “define” a “use requirement” – maybe someone else can come up with a solution for Spec-13 registries.<o:p></o:p></p><p class=MsoNormal style='margin-left:36.0pt'><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'>BUT: For categories 2 and 3 I think the solution is simple! We already steeply penalize if the prospective registry doesn’t contract or engage in testing. There are grace periods to do so (I think 9 month). We could use the same grace period for “startup” – which is opening the string up for registrations in Sunrise!<o:p></o:p></p><p class=MsoNormal style='margin-left:36.0pt'><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'>At BARE minimum we should put into the new RA (Registry Agreement) that failure for categories 2 and 3 (non-Spec-13 registries) to startup (start sunrise) WILL be a reason to deny contract renewal! A DECADE of not starting up should be a clear sign of failure. <o:p></o:p></p><p class=MsoNormal style='margin-left:36.0pt'><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'>This solution is NOT impacting Spec 13 applicants. We can discuss separately whether or not we wish to add a “use requirement” for them as well. This solution would also NOT impact 2012 round new gTLDs.<o:p></o:p></p><p class=MsoNormal style='margin-left:36.0pt'><o:p> </o:p></p><p class=MsoNormal style='margin-left:36.0pt'><o:p> </o:p></p><p class=MsoNormal>Thanks,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Alexander.berlin<o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p></div></body></html>