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<p class="MsoNormal">All,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank you all for your thoughtful comments on the previous proposals for the processing of applications. I have assembled the comments and offer this as proposed text for the draft final report. I first lay out what the existing section
states followed by the proposed new language:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt">EXISTING LANGUAGE<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><u><span style="color:black">No Agreement:</span></u><span style="color:black"> The Working Group notes that in the 2012 round a decision was made by ICANN Org to prioritize applications for IDN strings. Although there was a 30-day public
comment period, the decision to prioritize IDN strings was never subject to policy review. Although the Working Group received a number of comments on this issue (both in support and against), the Working Group was not able to come to agreement as to whether
IDN applications should receive any priority in subsequent rounds. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">PROPOSED NEW LANGUAGE<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><u><span style="color:black">Affirmation with modification (Rationale xx)</span></u><span style="color:black">:
</span>If the volume of applications received significantly exceeds 500, applications will be processed in batches of 500.*<o:p></o:p></p>
<p class="MsoNormal">*In the 2012 round, the Section 1.1.2.5 of the Applicant Guidebook provided that the first batch would consist of 500 applications, but each subsequent batch was to be only 400 applications. For ease, the Working Group has modified this
to an even 500 applications per batch. (See Applicant Guidebook, page I-9).<o:p></o:p></p>
<p class="MsoNormal"><u><span style="color:black"><o:p><span style="text-decoration:none"> </span></o:p></span></u></p>
<p class="MsoNormal"><u><span style="color:black">Recommendation</span></u><span style="color:black"> (Rationale xx): The Working Group notes that in the 2012 round a decision was made by ICANN Org to prioritize applications for IDN strings. Although there
was a 30-day public comment period, the decision to prioritize IDN strings was never subject to policy review. For Subsequent rounds, the Working Group recommends that the following formula must be used with respect to giving priority to Internationalized
Domain Name applications:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<ol style="margin-top:0in" start="1" type="a">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1"><u>First Batch of 500</u><o:p></o:p></li><ol style="margin-top:0in" start="1" type="a">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">If there are more than 125 applications for IDN strings that elect to participate in the prioritization draw, the first 25% of applications processed in the first batch shall be those
applications for IDN strings that elect to participate in the prioritization draw. The remaining 75% of applications in the first batch shall consist of both IDN and non-IDN applications that elect to participate in the prioritization draw. <o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">If there are less than 125 applications for IDN strings that elect to participate in the prioritization draw, then all such applications shall be processed in the first batch prior
to any non-IDN application.<o:p></o:p></li></ol>
</ol>
<p class="MsoListParagraph" style="margin-left:1.0in"><o:p> </o:p></p>
<ol style="margin-top:0in" start="2" type="a">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1"><u>Each Subsequent Batch of those electing to participate in the Prioritization Draw</u><o:p></o:p></li><ol style="margin-top:0in" start="1" type="a">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">For each subsequent batch. the first 10% of each batch of applications must consist of IDN applications until there are no more IDN applications.
<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">The remaining applications in each batch shall be selected at random out of the pool of IDN and non-IDN applications that remain.<o:p></o:p></li></ol>
</ol>
<p class="MsoListParagraph" style="margin-left:1.0in"><o:p> </o:p></p>
<ol style="margin-top:0in" start="3" type="a">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1"><u>Processing of Applications which do not elect to participate in the Prioritization Draw</u><o:p></o:p></li><ol style="margin-top:0in" start="1" type="a">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">When all of the applications that have elected to participate in the Prioritization Draw have been processed, ICANN shall process the remaining applications is batches of 500 applications.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">The first 10% of each batch of applications must consist of IDN applications until there are no more IDN applications.
<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level2 lfo1">The remaining applications in each batch shall be selected at random out of the pool of IDN and non-IDN applications that remain.<o:p></o:p></li></ol>
</ol>
<p class="MsoListParagraph" style="margin-left:1.0in"><o:p> </o:p></p>
<p class="MsoNormal"> <i>Example: Assume ICANN receives 3,000 applications. There are 1,200 applications for IDN strings and 1,800 applications for non-IDN strings. 1,000 of the IDN strings and 1,000 of the non-IDN strings elect to participate in the prioritization
draw. The remaining 200 IDN string and 800 non-IDN strings have declined to participate in the Prioritization Draw. ICANN shall place the applications in 6 batches of 500 applications in the following manner:<o:p></o:p></i></p>
<p class="MsoNormal"><i><o:p> </o:p></i></p>
<p class="MsoNormal"><i><u>Batch 1</u>:</i><o:p></o:p></p>
<p class="MsoNormal"><i>125 of the 1,000 IDN applications (selected during the prioritization draw) shall be processed first. The remaining 750 IDN-applications shall be combined with the 1,000 non-IDN applications. Of those 1,750 applications, 375 of them
shall be selected at random to be processed in the first batch.</i><o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.5in"><o:p> </o:p></p>
<p class="MsoNormal"><i><u>Batch 2</u>:</i><u><o:p></o:p></u></p>
<p class="MsoNormal"><i>Assume there are 700 IDN applications and 800 non-IDN applications remaining that have elected to participate in the prioritization draw. In the second batch, the first 50 applications processed shall be for IDN strings selected at
random. The remaining 450 applications processed in the second batch shall be selected at random from the pool of both the 800 non-IDN applications and the remaining 650 IDN applications.</i><o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.5in"><o:p> </o:p></p>
<p class="MsoNormal"><i><u>Batch 3</u>:<u><o:p></o:p></u></i></p>
<p class="MsoNormal"><i>Assume that there are now 400 IDN applications and 600 non-IDN applications that have elected to participate in the prioritization draw.</i>
<i>In the third batch, the first 50 applications processed shall be for IDN strings selected at random. The remaining 450 applications processed in the second batch shall be selected at random from the pool of both the 600 non-IDN applications and the remaining
400 IDN applications.</i><o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.5in"><o:p> </o:p></p>
<p class="MsoNormal"><i><u>Batch 4</u></i><u><o:p></o:p></u></p>
<p class="MsoNormal"><i>Assume there are now only 25 IDN applications and 475 non-IDN applications for the last batch that has elected to participate in the prioritization draw.</i>
<i>In this case only 5% of the last batch is comprised of IDN applications. Therefore all of the remaining IDN applications will be processed in the last batch prior to the remaining 475 non-IDN strings.</i><o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in"><o:p> </o:p></p>
<p class="MsoNormal"><u>Batch 5</u>: <o:p></o:p></p>
<p class="MsoNormal">There are now 200 IDN strings and 800 non-IDN strings that have elected not to participate in the prioritization draw. The first 50 applications process in Batch 5 shall be IDN strings. The remaining 450 applications process shall be selected
at random from the pool of both the 800 non-IDN applications and the remaining 150 IDN applications.<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.5in"><o:p> </o:p></p>
<p class="MsoNormal"><u>Batch 6:</u><o:p></o:p></p>
<p class="MsoNormal">Assume of the remaining 500 applications, 30 of them are for IDN strings and 470 of them are for non-IDN strings. In this case only 7.5% of the last batch is comprised of IDN applications. Therefore all of the remaining IDN applications
will be processed in the last batch prior to the remaining 470 non-IDN strings.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Jeff Neuman</span></b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Senior Vice President <o:p></o:p></span></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Com Laude | Valideus<br>
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<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Suite 600, McLean<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">VA 22102, USA<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black"><br>
M: +1.202.549.5079<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">D: +1.703.635.7514<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">E:
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<p class="MsoNormal"><o:p> </o:p></p>
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