<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class="">Thanks for your comments Kristine. <div class=""><br class=""></div><div class="">I did purposefully leave off the “paid to ICANN” part as that is a separate policy question I think. I don’t think we need to assume that the money would go to ICANN: </div><div class=""><ul class="MailOutline"><li class="">as that did not go so well the first time, and</li><li class="">we should consider what a “cost neutral” application process really means.</li></ul><div class=""><br class=""></div><div class="">If we think the process should be cost neutral to ICANN, then I think / suppose that placing the auction funds aside in a foundation of sorts would satisfy the neutrality requirement. (Although, the lie might have been put to that when ICANN replenished its reserve out of the auction funds.)</div><div class=""><br class=""></div><div class="">If we think the process should be cost neutral to ICANN AND the applicants, then should not the money go back to the applicants in some way? Isn’t that truly cost neutral? </div><div class=""><br class=""></div><div class="">Additionally, as a question of policy, maybe the money can be placed in some more effective foundation than one that is taking years to establish. </div><div class=""><br class=""></div><div class="">I think these are policy choices for us. </div><div class=""><br class=""></div><div class="">Finally, to me it seems that Vickrey is probably preferable to a highest price auction but, as I said in an earlier email, it is a complex economics issue. For example, can the Vickrey scheme be gamed in someway where there are well-off and not-well-off applicants? Or does the Vickrey scheme tend to defeat that gaming? We should tell ICANN what our policy goals are for this and ask them to figure it out in implementation, which will be reviewed by the community. </div><div class=""><br class=""></div><div class="">Whew, sorry,</div><div class=""><br class=""></div><div class="">Kurt</div><div class=""><br class=""></div><div><br class=""><blockquote type="cite" class=""><div class="">On Dec 12, 2019, at 11:56 AM, Dorrain, Kristine <<a href="mailto:dorraink@amazon.com" class="">dorraink@amazon.com</a>> wrote:</div><br class="Apple-interchange-newline"><div class=""><div class="WordSection1" style="page: WordSection1; caret-color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none;"><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">I fully support Paul’s choice model and have added a few more pros and cons to the table. In the interest of equity, I even included a “pro” in the ICANN Auction of Last Resort category because I know some folks on here believe there is a hypothetical problem with “applicants being paid to lose.” The Auction of Last Resort can be effective against any perception that this might be a problem because applicants must ALL agree to any other mechanism.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">I generally support Kurt’s additions, with a few questions/suggestions in red.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">I’m going to be late for the call that starts shortly…<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">Kristine<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div class=""><div style="border-style: solid none none; border-top-width: 1pt; border-top-color: rgb(225, 225, 225); padding: 3pt 0in 0in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif;" class="">From:</span></b><span style="font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span class="Apple-converted-space"> </span>Gnso-newgtld-wg <<a href="mailto:gnso-newgtld-wg-bounces@icann.org" style="color: purple; text-decoration: underline;" class="">gnso-newgtld-wg-bounces@icann.org</a>><span class="Apple-converted-space"> </span><b class="">On Behalf Of<span class="Apple-converted-space"> </span></b>Kurt Pritz<br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Thursday, December 12, 2019 11:35 AM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>McGrady, Paul D. <<a href="mailto:PMcGrady@taftlaw.com" style="color: purple; text-decoration: underline;" class="">PMcGrady@taftlaw.com</a>><br class=""><b class="">Cc:</b><span class="Apple-converted-space"> </span><a href="mailto:gnso-newgtld-wg@icann.org" style="color: purple; text-decoration: underline;" class="">gnso-newgtld-wg@icann.org</a><br class=""><b class="">Subject:</b><span class="Apple-converted-space"> </span>Re: [Gnso-newgtld-wg] Notes and Action Items - New gTLD Subsequent Procedures PDP WG - 02 December 2019<o:p class=""></o:p></span></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">I think the table is a great idea. <o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">If it helps clarify the discussion, under ‘Auction Type,’ I think the options could be:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><blockquote style="margin-left: 30pt; margin-right: 0in;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Sealed Bid - winner pays highest price bid<span style="color: rgb(31, 73, 125);" class=""><span class="Apple-converted-space"> </span></span><span style="color: red;" class="">to ICANN (why would the winner not pay the second highest price…did I miss something? I think this option is more about timing, not any other change to the Vickrey model</span><span style="color: rgb(31, 73, 125);" class="">) </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Sealed Bid - Vickrey (winner pays second highest price bid<span style="color: rgb(31, 73, 125);" class=""><span class="Apple-converted-space"> </span></span><span style="color: red;" class="">to ICANN</span>)<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Ascending auctions<span style="color: rgb(31, 73, 125);" class=""><span class="Apple-converted-space"> </span>(</span><span style="color: red;" class="">paid to ICANN</span><span style="color: rgb(31, 73, 125);" class="">)</span><span class="Apple-converted-space"> </span>- similar to the previous round<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Private resolution <span style="color: red;" class="">(fully private...notably, participants<span class="Apple-converted-space"> </span><u class="">coul</u>d self-select a sealed bid auction as their private auction mechanism of choice)</span><o:p class=""></o:p></div></div></blockquote><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Additionally, under ‘Auction Type’ or ‘Auction Timing' as a separate table the options would be:<span style="color: rgb(31, 73, 125);" class=""><span class="Apple-converted-space"> </span></span><span style="color: red;" class="">(I do like the idea of making this clear in the chart)</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><blockquote style="margin-left: 30pt; margin-right: 0in;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Timing - bids submitted at time of TLD application<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Timing - bids submitted at near time of TLD award (after evaluation, clearing of objectionsetc) <o:p class=""></o:p></div></div></blockquote><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">I think breaking it out this way would make the identification of strengths and weaknesses easier and clearer. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Best regards,<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Kurt<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><br class=""><br class=""><o:p class=""></o:p></div><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">On Dec 10, 2019, at 2:25 PM, McGrady, Paul D. <<a href="mailto:PMcGrady@taftlaw.com" style="color: purple; text-decoration: underline;" class="">PMcGrady@taftlaw.com</a>> wrote:<o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Hi All! <span class="apple-converted-space"> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">I have really enjoyed the conversation on the calls and on this list regarding auctions. It is a great reminder of how rich in talent our community is. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Below I have summarized some of the pros and cons of each process discussed (these are not meant to be exhaustive or dismissive, just my own thoughts which I encourage others to supplement). I’ve also proposed a possible way forward that could disrupt the current default status quo (ICANN Last Resort auction found in 2012 AGB, but which in my opinion is based on the false premise that ICANN “owns” all the undelegated gTLD space) but not force everyone into a one-sized-fits-all solution. I hope that the below encourages communication and helps us reach a consensus position that everyone in the WG can stand behind.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-family: Calibri, sans-serif;" class=""> </span><o:p class=""></o:p></div></div><table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse;"><tbody class=""><tr class=""><td width="208" valign="top" style="width: 155.8pt; border: 1pt solid windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><a name="_GoBack" class=""></a>Auction Type<o:p class=""></o:p></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; border-style: solid solid solid none; border-top-color: windowtext; border-right-color: windowtext; border-bottom-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Strengths<o:p class=""></o:p></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; border-style: solid solid solid none; border-top-color: windowtext; border-right-color: windowtext; border-bottom-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Weaknesses<o:p class=""></o:p></div></div></td></tr><tr class=""><td width="208" valign="top" style="width: 155.8pt; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Vickrey (place maximum bid amount at the time application is filed)<o:p class=""></o:p></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Straightforward.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Eliminates significant delays caused by contention sets<span style="color: rgb(31, 73, 125);" class="">.<o:p class=""></o:p></span></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Favors single TLD applicants.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Favors deep pockets.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Bad for .brand applicants who could end up paying significantly more<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Enriches ICANN (which has never justified why it thinks it “owns” the undelegated TLD resource).<span style="color: rgb(31, 73, 125);" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol; color: rgb(31, 73, 125);" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";" class=""> <span class="Apple-converted-space"> </span></span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: red;" class="">Assumes no changes in the round/procedures/ other circumstances between filing of the application and the auction.</span><span style="color: rgb(31, 73, 125);" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol; color: rgb(31, 73, 125);" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";" class=""> <span class="Apple-converted-space"> </span></span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: red;" class="">Assumes money is the only way to solve a contention.</span><span style="color: rgb(31, 73, 125);" class=""><o:p class=""></o:p></span></div></div></td></tr><tr class=""><td width="208" valign="top" style="width: 155.8pt; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Modified Vickrey (place maximum bid amount at the time contention sets are formed)<o:p class=""></o:p></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Straightforward.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Eliminates much of the delay caused by contention sets<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Eliminates ICANN Last Resort auctions.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Allows multiple TLD applicants to use resources more efficiently.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Favors deep pockets.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Enriches ICANN (which has never justified why it thinks it “owns” the undelegated TLD resource).<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Symbol; color: rgb(31, 73, 125);" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";" class=""> <span class="Apple-converted-space"> </span></span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: red;" class="">Assumes money is the only way to solve a contention.</span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""></o:p></span></div></div></td></tr><tr class=""><td width="208" valign="top" style="width: 155.8pt; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Private Resolution (could be dollar amounts, acquisitions, other consideration, etc.)<o:p class=""></o:p></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Allows for full creativity to resolve contention sets.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Doesn’t enrich ICANN (which has never justified why it thinks it “owns” the undelegated TLD resource).<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>The parties may agree on an auction process to resolve the contention set or they may agree instead to negotiate toward a mutually rewarding outcome. <span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>There have been rumors of gaming in the last round.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Favors deep pockets.<span style="color: red;" class="">Amend to say: may favor deep pockets…private resolutions do not require the expenditure of ANY cash.</span><span style="font-family: Calibri, sans-serif; color: red;" class=""><o:p class=""></o:p></span></div></div></td></tr><tr class=""><td width="208" valign="top" style="width: 155.8pt; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">ICANN Last Resort (status quo from 2012 AGB)<o:p class=""></o:p></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">None.<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Symbol; color: rgb(31, 73, 125);" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";" class=""> <span class="Apple-converted-space"> </span></span></span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: red;" class="">No applicant “gets paid to lose.”</span><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""></o:p></span></div></div></td><td width="208" valign="top" style="width: 155.85pt; border-style: none solid solid none; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0in 5.4pt;" class=""><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Favors deep pockets.<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div><div style="margin-left: 0.5in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; text-indent: -0.25in;" class=""><span style="font-family: Symbol;" class="">·</span><span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Enriches ICANN (which has never justified why it thinks it “owns” the undelegated TLD resource).<span style="font-family: Calibri, sans-serif;" class=""><o:p class=""></o:p></span></div></div></td></tr></tbody></table><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">A possible way forward:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Choice. Let each applicant choose how they would like to proceed. If all of the other members in the contention set make the same choice, that is the method that will be used. If, however, the members of the contention set do not agree, then ICANN Last Resort (status quo) will be default. There is no harm to the pro-Vickrey applicants in this option since whatever dollar amount they designated in their applications can, if they so choose, become their maximum dollar amount in an ICANN Last Resort if need be. Since an applicant submitting a Vickrey auction preference might be compromised in an ICANN Last Resort, the maximum dollar amount they are prepared to spend should be lodged with a third party under strict confidentiality obligations, e.g. with one of the large accounting firms. <span class="apple-converted-space"> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">The same is true for the pro-Modified Vickrey applicants. Whatever maximum dollar amount that they would have bid once contention sets were finalized can become their maximum bid in an ICANN Last Resort if need be. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Likewise, if an applicants selected Private Resolution and the other member(s) of the contention set did not, they would simply bid in the ICANN Last Resort whatever they were prepared to pay in a private auction. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Because Private Resolution opens up the door to creative problem solving between members of a contention set, the applicants in that contention set should be allowed to select – after contention sets are formed – to try Private Resolution. Such a selection should be unanimous and if it doesn’t lead to resolution (e.g. negotiations are attempted and fail instead of the parties using a private auction), then the ICANN Last Resort option would kick in. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">I hope the above is helpful and moves us a bit closer to a consensus position. Thanks.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Best,<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Paul<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 9pt; font-family: Helvetica, sans-serif;" class=""><br style="caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><br class=""></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 10pt; font-family: Arial, sans-serif; color: rgb(129, 109, 92);" class="">This message may contain information that is attorney-client privileged, attorney work product or otherwise confidential. If you are not an intended recipient, use and disclosure of this message are prohibited. If you received this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments.<o:p class=""></o:p></span></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif;" class="">From:</span></b><span class="apple-converted-space"><span style="font-size: 11pt; font-family: Calibri, sans-serif;" class=""> </span></span><span style="font-size: 11pt; font-family: Calibri, sans-serif;" class="">Gnso-newgtld-wg <<a href="mailto:gnso-newgtld-wg-bounces@icann.org" style="color: purple; text-decoration: underline;" class="">gnso-newgtld-wg-bounces@icann.org</a>><span class="apple-converted-space"> </span><b class="">On Behalf Of<span class="apple-converted-space"> </span></b>Justine Chew<br class=""><b class="">Sent:</b><span class="apple-converted-space"> </span>Monday, December 9, 2019 6:49 PM<br class=""><b class="">To:</b><span class="apple-converted-space"> </span>Austin, Donna <<a href="mailto:Donna.Austin@team.neustar" style="color: purple; text-decoration: underline;" class="">Donna.Austin@team.neustar</a>><br class=""><b class="">Cc:</b><span class="apple-converted-space"> </span><a href="mailto:gnso-newgtld-wg@icann.org" style="color: purple; text-decoration: underline;" class="">gnso-newgtld-wg@icann.org</a><br class=""><b class="">Subject:</b><span class="apple-converted-space"> </span>Re: [Gnso-newgtld-wg] Notes and Action Items - New gTLD Subsequent Procedures PDP WG - 02 December 2019</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-family: Arial, sans-serif;" class="">Thank you, Donna, for picking this up. <br class=""><br class="">Just in relation to Goal No. 1, on reflection, I think the text "<i class="">...in which the winner ultimately overpays for the TLD</i>" should be omitted or reworded, firstly as Donna has explained, we don't know what "overpays" actually means. Secondly, even if that is the case, why should we be concerned if an applicant chooses to "overpay". Thirdly, At-Large's concerns had to do with the situation of wealthier applicants outbidding less-wealthy applicants, thereby potentially stifling competition. <br class=""><br class="">So, perhaps the goal should be re-stated as "Reduce the risk of unintended outcomes from “bidding wars".<br class=""><br class="">As for the remaining texts, I would like to be able to review the flowcharts for the 3 Alternatives before making further comments. </span><o:p class=""></o:p></div></div></div><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div></div><div class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-family: Arial, sans-serif;" class="">Thanks,</span><o:p class=""></o:p></div></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><br class=""><b class=""><span style="font-family: "Trebuchet MS", sans-serif;" class="">Justine Chew</span></b><br class="">-----<o:p class=""></o:p></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">On Sat, 7 Dec 2019 at 04:57, Austin, Donna via Gnso-newgtld-wg <<a href="mailto:gnso-newgtld-wg@icann.org" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">gnso-newgtld-wg@icann.org</span></a>> wrote:<o:p class=""></o:p></div></div></div><blockquote style="border-style: none none none solid; border-left-width: 1pt; border-left-color: rgb(204, 204, 204); padding: 0in 0in 0in 6pt; margin: 5pt 0in 5pt 4.8pt;" class=""><div class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">Thanks for the notes Julie, these are particularly helpful as I wasn’t able to attend the call.</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">I have listened to the recording and I wanted to address a couple of issues that were discussed and are captured in your notes.</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">I don’t agree that Alternative 1 addresses the following goal:</span><o:p class=""></o:p></div></div><ol start="1" type="1" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Reduce the risk of “bidding wars” in which the winner ultimately overpays for the TLD.<o:p class=""></o:p></li></ol><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">a.<span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Tentative, related goal for discussion: encourage applicants to bid their true value for a TLD.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">I personally struggle with this as a goal because it’s a subjective assessment that applicants from 2012 overpaid for a TLD. Only the successful applicant can make that judgement and if the applicant willingly entered into a private or ICANN auction of last resort they didn’t do so blindly: they had an opportunity to assess the market and combined with their own personal objectives for wanting a string made a judgement about how much they were willing to pay for the string.<span class="apple-converted-space"> </span></span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">As I noted previously, my main issue with Alternative 1 is that the sealed bid has to be provided at the time of application, which is unfair to any applicant that ultimately finds themselves in a contention set. No-one can predict how many applications will be received and how many strings will end up in a contention set so the applicant has no information available at the time of submitting their application on which to assess the value of the TLD to them.<span class="apple-converted-space"> </span></span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">It would be eminently fairer to all applicants to submit sealed bids at a time when more information is available that would allow them to make a more informed decision about the value of the TLD to them, which is ultimately why I proposed Alternative 2 originally.</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class="">Donna</span><o:p class=""></o:p></div></div><p class="MsoNormal" style="margin: 12pt 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;"><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(51, 62, 72);" class="">Donna Austin</span></b><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(51, 102, 255);" class=""><br class=""></span></b><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(5, 204, 122);" class="">Neustar, Inc.</span></b><span class="apple-converted-space"><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(6, 134, 88);" class=""> </span></b></span><span lang="EN-AU" style="font-size: 9pt; color: rgb(125, 125, 125);" class="">/</span><span class="apple-converted-space"><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(6, 134, 88);" class=""> </span></b></span><span lang="EN-AU" style="font-size: 9pt; color: rgb(125, 125, 125);" class="">Senior Policy Manager, Registry Solutions<br class=""></span><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(5, 204, 122);" class="">Mobile:</span></b><span class="apple-converted-space"><b class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(125, 125, 125);" class=""> </span></b></span><span lang="EN-AU" style="font-size: 9pt; color: rgb(125, 125, 125);" class="">+1 310 890 9655<br class=""></span><u class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(0, 124, 231);" class=""><a href="mailto:donna.austin@team.neustar" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">donna.austin@team.neustar</span></a></span></u><span class="apple-converted-space"><span lang="EN-AU" style="font-size: 9pt; color: rgb(125, 125, 125);" class=""> </span></span><span lang="EN-AU" style="font-size: 9pt; 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color: rgb(0, 124, 231); border: 1pt none windowtext; padding: 0in;" class="">Follow Neustar:</span></b><span class="apple-converted-space"><span lang="EN-AU" style="font-size: 9pt; color: rgb(0, 124, 231);" class=""> </span></span><span lang="EN-AU" style="font-size: 9pt; color: rgb(0, 124, 231);" class=""><a href="http://www.linkedin.com/company/5349" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: rgb(0, 124, 231);" class="">LinkedIn</span></a><span class="apple-converted-space"> </span><b class="">/</b><span class="apple-converted-space"> </span><a href="http://www.twitter.com/neustar" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: rgb(0, 124, 231);" class="">Twitter</span></a></span><u class=""><span lang="EN-AU" style="font-size: 9pt; color: rgb(0, 134, 86); border: 1pt none windowtext; padding: 0in;" class=""><br class=""></span></u><span lang="EN-AU" style="font-size: 9pt; color: rgb(125, 125, 125); border: 1pt none windowtext; padding: 0in;" class="">Reduce your environmental footprint. Print only if necessary.</span><o:p class=""></o:p></div></div><div class=""><div class=""><div class=""><div class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; line-height: 9.2pt;"><span lang="EN-AU" style="font-size: 8pt; color: rgb(125, 125, 125);" class=""><hr size="1" width="100%" noshade="" align="left" style="color: rgb(150, 150, 150);" class=""></span></div></div></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif; line-height: 13.8pt;" class=""><span lang="EN-AU" style="font-size: 8.5pt; color: rgb(125, 125, 125);" class="">The information contained in this email message is intended only for the use of the recipient(s) named above and may contain confidential and/or privileged information. If you are not the intended recipient you have received this email message in error and any review, dissemination, distribution, or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately and delete the original message.</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="color: rgb(31, 73, 125);" class=""> </span><o:p class=""></o:p></div></div><div class=""><div style="border-style: solid none none; border-top-width: 1pt; border-top-color: rgb(225, 225, 225); padding: 3pt 0in 0in;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class="">From:</b><span class="apple-converted-space"> </span>Gnso-newgtld-wg [mailto:<a href="mailto:gnso-newgtld-wg-bounces@icann.org" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">gnso-newgtld-wg-bounces@icann.org</span></a>]<span class="apple-converted-space"> </span><b class="">On Behalf Of<span class="apple-converted-space"> </span></b>Julie Hedlund<br class=""><b class="">Sent:</b><span class="apple-converted-space"> </span>Monday, December 02, 2019 8:52 AM<br class=""><b class="">To:</b><span class="apple-converted-space"> </span><a href="mailto:gnso-newgtld-wg@icann.org" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">gnso-newgtld-wg@icann.org</span></a><br class=""><b class="">Subject:</b><span class="apple-converted-space"> </span>[Gnso-newgtld-wg] Notes and Action Items - New gTLD Subsequent Procedures PDP WG - 02 December 2019<o:p class=""></o:p></div></div></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Dear Working Group members,<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Please see below the notes from the meeting on 02 December 2019.<span class="apple-converted-space"> </span><b class=""><i class="">These high-level notes are designed to help WG members navigate through the content of the call and are not a substitute for the recording, transcript, or the chat,</i></b><span class="apple-converted-space"> </span>which will be posted at:<span class="apple-converted-space"> </span><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_display_NGSPP_2019-2D12-2D02-2BNew-2BgTLD-2BSubsequent-2BProcedures-2BPDP&d=DwMGaQ&c=MOptNlVtIETeDALC_lULrw&r=CwipU91YB6EkpFXK9ynnT_QUef4yC5p7jpsDm8cU97g&m=JoTKufMJCg61DXDXCrwRY_MAaLTb_ZSrDH7Fzgwjrls&s=_51UB1f5GcK4eSMvs-LveU9QVE2_2nruA-sSl33kYfs&e=" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">https://community.icann.org/display/NGSPP/2019-12-02+New+gTLD+Subsequent+Procedures+PDP</span></a>.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Kind regards,<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Julie<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Julie Hedlund, Policy Director<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class="">Notes and Action Items:</b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class=""> </b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class="">Actions:</b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">ACTION ITEM 1: Add a third alternative.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">ACTION ITEM 2: Add another goal (#7): “Increase efficiencies in application evaluation by way of understanding the contention set?”<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">ACTION ITEM 3: Create a flow chart with a fictional string to show how alternative 1 would work.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">ACTION ITEM 4: Update the list of goals.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class="">Notes:</b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">1. Review Agenda/Statements of Interest: Susan Payne was reappointed IPC Secretary for another year.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">2. String Contention Mechanisms of Last Resort:<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__docs.google.com_document_d_16qDoiK6vydQp6a0v9tMvU2l5fcypJY24hCzTIVTjKwk_edit-3Fusp-3Dsharing&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=adDIs0WEx_lLwFfrsdovxTYY8GkRHo5ibc8SR3Npdh8&m=CQEth_7agzL4nstv-7WTuaAuI6d1I-2inhjqcYiT46I&s=A3JYJRT5C06hqUQZ-Zi8neK99f2OkoiaMb6s-dNpcAk&e=" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">https://docs.google.com/document/d/16qDoiK6vydQp6a0v9tMvU2l5fcypJY24hCzTIVTjKwk/edit?usp=sharing [docs.google.com]</span></a><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">What is the issue we are trying to address:</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- The Working Group has discussed a number of potential issues with the mechanisms of last resort used in the 2012 New gTLD Round. These issues are captured in the Supplemental Initial Report. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Although the Working Group ultimately believes that when there is string contention, an auction process should be used to select the Registry Operator invited to enter into a Registry Agreement with ICANN, the Working Group is still discussing what forms of private resolution should be allowed (if any), the specific type of auction to be used, and the timing of such an auction. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">Policy Goals / What the WG is Seeking to Accomplish:</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- The WG is largely supportive of existing Implementation Guideline F:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class=""><u class="">Implementation Guideline F:</u></i><span class="apple-converted-space"><i class=""> </i></span><i class="">If there is contention for strings, applicants may:</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">i) resolve contention between them within a pre-established timeframe</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">ii) if there is no mutual agreement, a claim to support a community by one party will be a reason to award priority to that application. If there is no such claim, and no mutual agreement a process will be put in place to enable efficient resolution of contention and;</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">iii) the ICANN Board may be used to make a final decision, using advice from staff and expert panels.</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Other goals include:<o:p class=""></o:p></div></div><ol start="1" type="1" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Reduce the risk of “bidding wars” in which the winner ultimately overpays for the TLD.<o:p class=""></o:p></li></ol><ol start="1" type="1" style="margin-bottom: 0in; margin-top: 0in;" class=""><ol start="1" type="1" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Tentative, related goal for discussion: encourage applicants to bid their true value for a TLD.<o:p class=""></o:p></li></ol></ol><ol start="2" type="1" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Reduce collusion, profiteering, and/or speculation, especially as it relates to financial transactions external to the program (Note, while this is not an explicit goal for the mechanisms of last resort, it has been discussed as a motivation for altering the auction mechanism).<o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Increase transparency.<o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Resolve contention more quickly.<o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Increase predictability.<o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;">Encourage new entrants into the field.<o:p class=""></o:p></li></ol><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">b.<span style="font-size: 7pt;" class=""> <span class="apple-converted-space"> </span></span>Which could include, making it easier to implement “multipliers” for certain types of applicants, such as those eligible for Applicant Support.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Note that some of the terminology may need to be further defined if the above goals are adopted. In order to ensure that recommendations align with goals, it is important for the Working Group to agree on specific objectives.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><u class="">Discussion:</u><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Do we still need iii)? An alternative may be, "The ICANN Board may use expert panels to make Community Priority Evaluation determinations." This may also be dependent on recommendations on the new appeals mechanism.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- ICANN Board says it does not make policy. Its decision would be subject to RFR and IRP - very messy so it may be better to stick with what we developed earlier.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- This isn’t about the Board making policy, but making it clear that it’s an auction process rather than the Board making a decision.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- There should be a reference instead to Auction of last resort.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Agree they are good goals so suggest removing possible description<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">What are we Proposing?</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- The Working Group is leaning towards recommending a sealed-bid auction as the ultimate form of auction used as a mechanism to resolve string contention. When a sealed-bid auction is held where bids are submitted without knowing the bid of others in the auction (e.g., prior to evaluating any of the applications) it is also called a Vickrey Auction. A sealed-bid auction can also be used as a mechanism of last resort and at the end of the process. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- With a sealed-bid auction, each applicant submits a sealed bid, stating the amount that they are willing to pay for the TLD. The ultimate “winner” pays the amount submitted by the second-highest bidder..<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Regardless of when the sealed bid auction is held, if there are one or more Community-based Applications, that/those application(s) would need to be processed first through Community Priority Evaluation before looking at the auction bids.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Alternative 1 - Vickrey Auction (No Private Resolution)<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Addresses goals 1, 2, 4, and 6.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- The principle pro here is the seemingly near elimination of private resolution. However, the principle con is the substantial complications this approach introduces (see Additional Considerations, Mostly For Alternative 1 below). Other cons are that other forms of private resolution might be impacted (e.g., joint ventures, string change, etc.) in seeking to eliminate private resolution for financial benefit and that bids are submitted with no contextual information.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Alternative 2 - Sealed-Bid Auction allowing Private Resolution <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- It seems to be supportive of, or at least not impede, 1, 2, and 6, but in a less pronounced manner as it relates to Alternative 1; the maker of this Alternative has acknowledged that it does not fully address concerns around potential collusion and profiteering on application withdrawals. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- However, some benefits are likely derived by obtaining sealed bids (which can reduce the incentive for all parties to agree to private resolution, if an applicant already knows they have the highest bid). The other main pro here is simplicity - most other processes remain unaffected.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><u class="">Discussion</u>:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Re: Alternative 2: First bullet point and third bullet point seem incompatible. Third bullet point: “Applicants would still have an opportunity to resolve the contention set through other means such as private auction, a joint venture arrangement or to choose another string as was suggested for ‘brands’ of the same name.”<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Assuming you stayed in only those applicants who stayed in would be revealed on reveal day. So you could still have private resolution.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- For clarity, the third bullet could be swapped with the fourth bullet and add “post reveal day”. In third bullet point, after "opportunity", you would need to insert "after reveal day" or something to clarify that parties become known.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Question: Wasn’t one of the proposals to outlaw private auctions? So not sure why we are still allowing private resolution. Answer: If we went with alternative 1 we would eliminate private resolution, but not for alternative 2. So that is one of the drawbacks with alternative 2.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Thought alternative 2 was to allow participants to know how many contention sets there are. Add as a third alternative: Alternative three could remove some of the elements about private resolution.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- They may not resolve privately and should only have a limited period to resolve. If not resolved in a limited period, it should proceed to the sealed bid winner. I am not seeing the time limit in alternative 2 though. Is it there?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Question: How would the timing work with a string contention objection process?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- How could private auctions be prevented?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Objections should not be triggered until a winner (or a private resolution winner) is identified.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Re: Alternative 2 there should be a limited time for private resolution.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Helpful to put these alternatives out for public comment and indicate whether the WG has a preference.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Re: Alternative 2 -- Question: For string confusion objections those would have to be heard right away.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Additional Considerations:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">Public Comment: Comments from the public are solicited on all applications regardless of where they are placed in the queue. To do it otherwise would mean opening up separate public comment periods depending on whether there is a need to go to the second bidder, and that would be impossible to monitor.</i> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><u class="">Discussion</u>:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Strongly support 1 public comment period, for the exact same length of time for all.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Impractical to have multiple public comments.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">String Similarity Evaluation:</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><u class="">Discussion:</u><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Don’t see how this fits with the notion of closed bids and timing. You have a scenario where you have some who know who they are bidding against and everyone else doesn’t. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- In the scenario where the result of a string similarity evaluation is that some would have insight into who is in the set -- this is an unfair result.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Which is why getting every applicant to submit a bid at the point of application is something to consider, even though it may be cumbersome for many.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- What if this fact situation should default to sealed bid only?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Why would they not be all announced at the same time?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- So we are proposing to treat some applicants differently from others? That does not seem to be in line with the Bylaws.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Wouldn’t alternative 1 solve this issue?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- What about plurals?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- There was only one case in 2012 that was found to be similar (unicorn/unicom). <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Why string similarity evaluation after reveal day? Why not make it before reveal day? That is a possibility.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- is string similarity not subject to accountability mechanisms and appeals?<span style="font-family: "MS Gothic";" class="">
</span>would that not “reveal” it in some manner?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Agree with that suggestion re string similarity evaluation occurring first and before reveal day. bids would have to be in before appeal.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">Objections:<span class="apple-converted-space"><b class=""> </b></span><i class="">Objections on the highest bidder’s application must be filed within the objection period. With respect to objections to the other applications, ICANN would create a system for the filing of “an intent to file an objection.” </i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><u class="">Discussion:</u><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Question: What happens when someone indicates that they are filing a community objection and they are filing it against all of the applicants for a string. Answer: All applicants should have a chance to respond. Add text to relay your comment on "can indicate that an objection will apply to all applications for same string"?<span style="font-family: "MS Gothic";" class="">
</span> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Objections should not come into full proceedings unless and until there is a winner - it's a huge waste of time and money if it does proceed but private parties need to know what the value of the string may be.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Some concern about not having to submit the objections on a standard timeline, although support not engaging fees or panels until the objection is necessary, based on bidder ordering<span style="font-family: "MS Gothic";" class="">
</span>.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- “time” may benefit some as they build their case. Or could the “intent to file” require some key points that will be included in the objection filing?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Question: We are agreeing on the principle that the intent to object is a good idea, but when would that happen? Would one party have to state the type of objection and the grounds? Could it just be a party filing very general intent to objection concerning a risk associated with that application. Would there be a panel for an intent to object process? Answer: Proposal was that the objection would be “bare bones”. There would be no panel if it was just an intent to object to one application, but if for all applications (to the string) then one could request a panel. You file your objection against the applicant first in the queue and an intent to file against the others in the queue. Or, you could say I have the same objection to all of the applicants/string.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Important for private parties in resolution to know that there is an intent to object (but that doesn’t pertain to alternative 1 as there is no private resolution).<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- The objection should be submitted within a certain time period.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- The nature of the applicant is important. It's not just the existence of the string. It depends on who is operating it and what the purpose of the tld as stated in the application in Question 18 answers and services to be provided in answer to Question 23. There should be an intent to object process prior to determining the order of the queue with no panel convened.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">Other complications:</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">Objections if there is more than one Community Application</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">String Confusion Objection Results in the Creation of a New Contention Set or Adds to an Existing Contention Set</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">Appeals/Accountability Mechanisms</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><i class="">Applicant Support Program</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><u class="">Discussion</u>:<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Seems that these are all related to the attempt to gain efficiencies to know the order of the contention sets. If you don’t need to know the order then you could leave the program untouched. If you go back to the goals knowing the order of the contention sets goes to goals 3, 4, and 5.<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Add a goal: “Increase efficiencies in application evaluation by way of understanding the contention set?”<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">-- Note that alternative 1 would eliminate the goal to allow contention resolution. <span class="apple-converted-space"> </span><i class="">“If there is contention for strings, applicants may: i) resolve contention between them within a pre-established timeframe”</i><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""> <o:p class=""></o:p></div></div></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class="">_______________________________________________<br class="">Gnso-newgtld-wg mailing list<br class=""><a href="mailto:Gnso-newgtld-wg@icann.org" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">Gnso-newgtld-wg@icann.org</span></a><br class=""><a href="https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg</span></a><br class="">_______________________________________________<br class="">By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">https://www.icann.org/privacy/policy</span></a>) and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="color: purple;" class="">https://www.icann.org/privacy/tos</span></a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on.<o:p class=""></o:p></div></div></blockquote></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 9pt; font-family: Helvetica, sans-serif;" class=""><br class=""></span><span style="font-size: 7.5pt; font-family: Arial, sans-serif; color: gray;" class=""><br class=""></span><span style="font-size: 9pt; font-family: Helvetica, sans-serif;" class="">_______________________________________________<br class="">Gnso-newgtld-wg mailing list<br class=""><a href="mailto:Gnso-newgtld-wg@icann.org" style="color: purple; text-decoration: underline;" class="">Gnso-newgtld-wg@icann.org</a><br class=""><a href="https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg" style="color: purple; text-decoration: underline;" class="">https://mm.icann.org/mailman/listinfo/gnso-newgtld-wg</a><br class="">_______________________________________________<br class="">By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" style="color: purple; text-decoration: underline;" class="">https://www.icann.org/privacy/policy</a>) and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" style="color: purple; text-decoration: underline;" class="">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on.</span></div></div></blockquote></div></div></div></div></blockquote></div><br class=""></div></body></html>