<html><body style="font-family: 'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 12px;"><<it’s the gaming and buyouts we’ve been asked by the board to try to prevent.
<div>If we want to avoid any of it, let’s do the Vickrey auction - put
in a sealed bid with your application. Parties can try to make whatever
deals they want after the TLD is delegated. This eliminates horse
trading or gaming or disadvantaging single applicants
by paying portfolio applicants to lose. >></div><div><br /></div><div>+1
Elaine. When we speak discussed this at length, I thought we had
arrived at the conclusion that the Vickrey auctions and the sealed bid
at application were the fairest process for moving forward. That this
would encourage applicants to submit the bid closest to the value of the
gTLD to them, and encourage the widest diversity of applicants to apply
for - and achieve - new gTLDs.</div><div><br /></div><div>Best, Kathy<br /></div> <br /><br /><br /><blockquote><br />----- Original Message -----<br /><div style="width:100%;background:rgb(228,228,228);"><div style="font-weight:bold;">From:</div> "Pruis Elaine" <epruis@verisign.com></div><br /><div style="font-weight:bold;">To:</div>"Aikman-Scalese Anne" <AAikman@lrrc.com><br /><div style="font-weight:bold;">Cc:</div>"gnso-newgtld-wg@icann.org" <gnso-newgtld-wg@icann.org><br /><div style="font-weight:bold;">Sent:</div>Sun, 28 Jun 2020 18:47:34 +0000<br /><div style="font-weight:bold;">Subject:</div>Re: [Gnso-newgtld-wg] Auction of last resort and Private Resolutions<br /><br /><br />
Hi,
<div>The “auction of last resort” in 2012 was aptly named. Private resolution was encouraged. ICANN auctions were the very last possible remedy for contention sets. So it’s not surprising that 90% of contention sets were resolved privately. That was intentional. </div>
<div>Keeping the option for private resolutions is reasonable- it’s the gaming and buyouts we’ve been asked by the board to try to prevent. </div>
<div>If we want to avoid any of it, let’s do the Vickrey auction - put in a sealed bid with your application. Parties can try to make whatever deals they want after the TLD is delegated. This eliminates horse trading or gaming or disadvantaging single applicants
by paying portfolio applicants to lose. </div>
<div>Elaine </div>
<div><br /><div dir="ltr"><br /><blockquote>On Jun 26, 2020, at 11:32 AM, Aikman-Scalese, Anne <AAikman@lrrc.com> wrote:<br /><br /></blockquote>
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<p class="MsoNormal"><span style="color:#1F497D;">Dear WG Members,</span></p><p></p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;">Re: private resolution of contention sets, I just wanted to mention again (as I did in chat on the last call) that apparently 90% of string contention sets were resolved before auction of last resort in the 2012
round. (My source for this is the CCWG Auction Proceeds group so let me know if you disagree on this statistic.) This means private resolution is by far “the rule” in resolving string contention.</span></p><p></p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;"></span></p><p> </p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;">It seems to me that promoting “joint ventures” of 2 or more applicants for the string will very easily result in “buy-outs” and “horse trading”. An applicant who really wants to win will need only to structure
a revised “change request” application in which (a) the other party becomes a “silent partner” or (b) is named a “key person” whose expertise is desirable and who serves on the Board or the Advisory Board at a certain consulting fee. The “silent partner”
and/or Advisory Board member agrees in exchange to withdraw the competing application. We should be thinking of ways to address this. I had suggested the possibility of the “losing” applicant being required to pay a fee into an Applicant Support fund upon
withdrawal of its application if it (or one of its principals) participates in the so-called “joint venture” revised application.</span></p><p></p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;"></span></p><p> </p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;">Separately, loose references to the organizational structure known as Joint Venture are probably ill-advised. That form of corporate structure is rarely pursued in this day owing to the high degree of risk of
liability taken on by each joint venturer for the acts or omissions of the other joint venturer(s). Whatever we recommend as a matter of policy, it might be better to adopt some sort of neutral terminology such as “ revised business combination applicant”
terminology. </span></p><p></p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;">Anne</span></p><p></p><p></p>
<p class="MsoNormal"><span style="color:#1F497D;"></span></p><p> </p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><a></a><b><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#AF272F;">Anne E. Aikman-Scalese</span></b><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">Of Counsel</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">520.629.4428 office</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">520.879.4725 fax</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#1F497D;"><a href="mailto:AAikman@lrrc.com" title="Email User"><span style="color:#AF272F;">AAikman@lrrc.com</span></a></span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">_____________________________</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">Lewis Roca Rothgerber Christie LLP</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">One South Church Avenue, Suite 2000</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">Tucson, Arizona 85701-1611</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:9pt;line-height:105%;font-family:Arial, sans-serif;color:#1F497D;"><a href="http://lrrc.com/" title="Lewis Roca Rothgerber Christie Webpage"><span style="color:#AF272F;">lrrc.com</span></a></span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="margin-top:2pt;line-height:105%;"><span style="font-size:10pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">Because what matters</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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<p class="MsoNormal" style="line-height:105%;"><span style="font-size:10pt;line-height:105%;font-family:Arial, sans-serif;color:#323232;">to you, matters to us.™</span><span style="color:#1F497D;"></span></p><p></p><p></p>
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