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<p class="MsoNormal">In the interest of compromise and in hopes of not reverting to the 2012 rules and thereby ignoring the Board’s request that we make a recommendation on this issue, please consider this proposal to allow contention resolution via creative
 means as well as auctions, with guardrails and tweaks made to the well-received hybrid proposal.
<span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">It is a blend of many of the compromise solutions proposed. It also accommodates those who do not want ICANN to end up with all auction proceeds but at the same time minimizes the entire pool of money committed, thereby not disadvantaging
 single applicants.<o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Objective: <br>
</b>Increase transparency and accountability in contention resolution to improve the perception of ICANN and the new gTLD program.<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><b>Proposed process:</b><o:p></o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level1 lfo4">
String Similarity evaluation completed<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level1 lfo4">
On Reveal Day, all contention sets are announced (number and entities are revealed)<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level1 lfo4">
A 90-day Resolution Period begins <o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
Members of a contention set may <o:p></o:p></li><ul style="margin-top:0in" type="square">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
Form a JV<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
Withdraw<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
Find a creative private resolution<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
Fail to resolve<o:p></o:p></li></ul>
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
Members of a contention set may NOT <o:p></o:p></li><ul style="margin-top:0in" type="square">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
Participate in a private auction or auction like mechanism.<o:p></o:p></li></ul>
</ul>
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level1 lfo4">
No later than the close of the 90-day Resolution Period, remaining contention sets will be required to provide ICANN with their decision on how to resolve the contention. They will have decided to:
<o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
Agree to create a partnership or other form of joint venture that would allow two or more applicants within a contention set to jointly run and/or operate the applied for string.  Application Change Request requirements will apply, including public comment
 period.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
Agree to participate in a sealed bid “3<sup>rd</sup> Party Auction” which is overseen by ICANN.  Proceeds are distributed amongst the losing applicants in the contention set.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
Agree to participate in an ICANN Auction of Last Resort using the sealed bids.  Proceeds go to ICANN Auctions Proceeds fund.<o:p></o:p></li></ul>
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level1 lfo4">
Auctions of Last Resort and 3<sup>rd</sup> Party Auctions will take place immediately after the 90 day Private Resolution Period 
<o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
For 3<sup>rd</sup> Party Auctions <o:p></o:p></li><ul style="margin-top:0in" type="square">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
All auctions are conducted as sealed bids by the same auction provider ICANN chooses for Last Resort auctions.  The applicant that submitted the highest sealed bid amount pays the second-highest bid amount. The auction provider must attest that the participants
 fully disclosed all information and followed the rules before the funds are released to the losers.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
All bids for all unresolved contention sets are due on the same date, no more than 30 days after reveal of contention sets/into the resolution period.  Auctions for contention sets involving objections, CPE or other outstanding accountability challenges may
 be delayed but bids are still due no more than 30 days after reveal of contention sets/into the resolution period.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
All auctions are to be conducted in an identical fashion using publicly available procedures.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
All auctions should be finalized as quickly as possible after the 90 day deadline.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
All results are disclosed on a similar timeline as ICANN auctions of last resort from 2012 round, which was usually 72 hours. All parties partaking in the auction as well as winning bidder and amount paid are disclosed.<o:p></o:p></li></ul>
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level2 lfo4">
Auctions of Last Resort   <o:p></o:p></li><ul style="margin-top:0in" type="square">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
All bids for all unresolved contention sets are due on the same date, no more than 30 days after reveal of contention sets/into the resolution period.  Auctions for contention sets involving objections, CPE or other outstanding accountability challenges may
 be delayed but bids are still due no more than 30 days after reveal of contention sets/into the resolution period.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
On the auction date, the applicant that submitted the highest sealed bid amount pays the second-highest bid amount.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level3 lfo4">
Once payment is received, the applicant may proceed to evaluation and eventually the Transition to Delegation.<o:p></o:p></li></ul>
</ul>
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l0 level1 lfo4">
In the unlikely event that a winning bidder in either auction format does not pass evaluation (none failed in 2012), the next highest bidder is selected for evaluation.<o:p></o:p></li></ul>
<p class="MsoListParagraph" style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt">
<o:p> </o:p></p>
<p class="MsoNormal"><b>Requirements:</b><o:p></o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level1 lfo5">
Add T&Cs warning applicants that they may not participate in any of the following activities (Prohibited Application Activities):
<o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level2 lfo5">
They shall not submit applications largely for the purpose of financially benefiting from the resolution of contention sets<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level2 lfo5">
During the 90-day Resolution Period, they will not participate in the resolution of contention sets where non-winning applicants receive financial benefit to withdraw.<o:p></o:p></li></ul>
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The Registry Agreement must include a mandatory Public Interest Commitment stating that the registry:
<o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level2 lfo5">
has not submitted applications for the purpose of financially benefiting from the resolution of contention sets.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level2 lfo5">
has not participated in an auction or auction like mechanisms outside of the ICANN 3<sup>rd</sup> party and ICANN Auction of Last Resort.<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level2 lfo5">
agrees to punitive measures for violations listed above, which may include the potential loss of the registry as well as a bar on participation in any future rounds (both for the individuals as well as the entities (and their affiliates) involved.<o:p></o:p></li></ul>
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The auction provider must agree to fully disclose all information about the auctions<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level1 lfo5">
The auction provider must assert that all rules were followed before releasing auction funds<o:p></o:p></li><li class="MsoListParagraph" style="margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l2 level1 lfo5">
All contention set resolutions including creative resolutions, 3<sup>rd</sup> Party Auction and ICANN Auctions of last resort must be submitted by ICANN to relevant competition authorities for review.<o:p></o:p></li></ul>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Benefits:</b><o:p></o:p></p>
<p class="MsoNormal">Full transparency, ICANN oversight and competition authority review mitigate community concerns about nefarious activity.<o:p></o:p></p>
<p class="MsoNormal">Unlike the 2012 round, access to data from this point forward can inform future policy making efforts in the program.<o:p></o:p></p>
<p class="MsoNormal">Private auctions are eliminated but applicants can still receive proceeds from a 3<sup>rd</sup> Party Auction if all applicants in a contention set agree.<o:p></o:p></p>
<p class="MsoNormal">Sealed bids tend to result in lower auction prices so decreased auctions proceeds to ICANN fund.<o:p></o:p></p>
<p class="MsoNormal">Speeds up the process allowing more applicants to withdraw applications prior to evaluations resulting in greater refund amounts and faster processing of remaining applications.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt">Jim Prendergast<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">The Galway Strategy Group<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">+1 202-285-3699<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt"> Gnso-newgtld-wg <gnso-newgtld-wg-bounces@icann.org>
<b>On Behalf Of </b>Steve Chan<br>
<b>Sent:</b> Tuesday, June 30, 2020 8:44 PM<br>
<b>To:</b> gnso-newgtld-wg@icann.org<br>
<b>Subject:</b> [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 02 July at 03:00 UTC for 90 Minutes<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Dear WG Members,<o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black">Please find below the proposed agenda for<span class="apple-converted-space"> </span>the WG meeting on<span class="apple-converted-space"> </span><b>Thursday, 02 July<span class="apple-converted-space"> </span>2020
 at<span class="apple-converted-space"> </span>03:00 UTC for 90 minutes.</b><o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black">Proposed Agenda:<o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
<ol style="margin-top:0in;caret-color: rgb(0, 0, 0);font-variant-caps: normal;orphans: auto;text-align:start;widows: auto;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px;word-spacing:0px" start="1" type="1">
<li class="MsoNormal" style="color:black;mso-list:l3 level1 lfo3"><span style="font-size:11.0pt">Review Agenda/Updates to Statements of Interest<o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-list:l3 level1 lfo3"><span style="font-size:11.0pt">Complete review of "Can't Live With" comments on Work Track 5 – see attached document.<o:p></o:p></span></li><li class="MsoListParagraph" style="color:black;margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l3 level1 lfo3">
Continue to review Private Resolutions: Hybrid Proposal 2+ and Proposal 4:<span class="apple-converted-space"> </span><a href="https://docs.google.com/document/d/1X8F8zHkgMzQg2WqGHpuoEP78rhpDkFOjD2qKrZZzjHw/edit?usp=sharing">https://docs.google.com/document/d/1X8F8zHkgMzQg2WqGHpuoEP78rhpDkFOjD2qKrZZzjHw/edit?usp=sharing</a><o:p></o:p></li><li class="MsoListParagraph" style="color:black;margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l3 level1 lfo3">
Review the updated Predictability Framework, see: <a href="https://docs.google.com/document/d/1vBckhFQCCQ-zyvfGGcDB3NWQhodVsffdqbyb6kTwXL4/edit?usp=sharing">https://docs.google.com/document/d/1vBckhFQCCQ-zyvfGGcDB3NWQhodVsffdqbyb6kTwXL4/edit?usp=sharing</a>.
 Also attached, please find the updated concerns/mitigation document and process flow.<o:p></o:p></li><li class="MsoListParagraph" style="color:black;margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;mso-list:l3 level1 lfo3">
AOB<o:p></o:p></li></ol>
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<span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black">If you need a dial out or would like to submit an apology, please email <a href="mailto:gnso-secs@icann.org" title="mailto:gnso-secs@icann.org">gnso-secs@icann.org</a>.<o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
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<span style="font-size:11.0pt;color:black">Best,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Steve<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt">Steven Chan</span></b><b><span style="font-size:11.0pt;font-family:"MS Gothic"">
</span></b><b><span style="font-size:11.0pt"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Policy Director, GNSO Support<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Internet Corporation for Assigned Names and Numbers (ICANN) </span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">12025 Waterfront Drive, Suite 300<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Los Angeles, CA 90094-2536</span><span style="font-size:11.0pt;font-family:"MS Gothic"">
</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">                                                                  
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Email: <a href="mailto:steve.chan@icann.org">
steve.chan@icann.org</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Skype: steve.chan55<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Mobile: +1.310.339.4410<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Find out more about the GNSO by visiting: <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__learn.icann.org_&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=DRa2dXAvSFpCIgmkXhFzL7ar9Qfqa0AIgn-H4xR2EBk&m=jLNFXvpu9gNdUeHi-G6sjWNCF9w4_AwhzzUDFZy2elE&s=o7Auz997kA-HPv9PHJCjFVZw7Pgo8krw4MxfqCwBrIU&e=" title="https://urldefense.proofpoint.com/v2/url?u=https-3A__learn.icann.org_&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=DRa2dXAvSFpCIgmkXhFzL7ar9Qfqa0AIgn-H4xR2EBk&m=jLNFXvpu9gNdUeHi-G6sjWNCF9w4_AwhzzUDFZy2elE&s=o7Auz997kA-HPv9PHJCjFVZw7Pgo8krw4Mxf">https://learn.icann.org/</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Follow @GNSO on Twitter: <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__twitter.com_ICANN-5FGNSO&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=DRa2dXAvSFpCIgmkXhFzL7ar9Qfqa0AIgn-H4xR2EBk&m=jLNFXvpu9gNdUeHi-G6sjWNCF9w4_AwhzzUDFZy2elE&s=kWw4fQPNjw2lVKy1UjTxS2F0BmjEAzaDFWNmsYywbmE&e=" title="https://urldefense.proofpoint.com/v2/url?u=https-3A__twitter.com_ICANN-5FGNSO&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=DRa2dXAvSFpCIgmkXhFzL7ar9Qfqa0AIgn-H4xR2EBk&m=jLNFXvpu9gNdUeHi-G6sjWNCF9w4_AwhzzUDFZy2elE&s=kWw4fQPNjw2lVKy1UjTxS2F0BmjE">https://twitter.com/ICANN_GNSO</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Transcripts and recordings of GNSO Working Group and Council events are located on the <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__gnso.icann.org_en_group-2Dactivities_calendar&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=DRa2dXAvSFpCIgmkXhFzL7ar9Qfqa0AIgn-H4xR2EBk&m=jLNFXvpu9gNdUeHi-G6sjWNCF9w4_AwhzzUDFZy2elE&s=-L6chFfv0OperrXHHpTF722WnH3FZIutn4cS16IvpOg&e=">GNSO
 Master Calendar<span style="color:#954F72"> </span></a></span><o:p></o:p></p>
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