<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=""><br class=""><div><br class=""><blockquote type="cite" class=""><div class="">On 13 Jul 2020, at 20:42, McGrady, Paul D. <<a href="mailto:PMcGrady@taftlaw.com" class="">PMcGrady@taftlaw.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: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Hi Jim,<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">I’m not opposed to transparency. I’m opposed to your proposal. As I said in my response, I think the transparency proposal Jeff made is best taken up within the discussion of the Guardrails, not in the context of your latest attempt to push everyone into early Vickrey auctions. As for your suggestion that I was “overwhelmed” by your proposal, I assure you I was not. I didn’t throw up my arms and say I was overwhelmed – I spent hours going through your proposal and came back with detailed comments which need to be addressed substantively. Suggesting that was somehow “overwhelmed” by giving detailed, substantive questions and comments to your various repackaged elements is a non sequitur. Yes, your proposal would allow payouts to those who end up in auctions, but many of those auctions would be unnecessary since there is little doubt that many contention sets would be eliminated by Objection processes, GAC Early Warnings, etc. etc. Your proposal does far more harm than good to the entire new gTLD process. <span class="Apple-converted-space"> </span></span></div></div></div></blockquote><div><br class=""></div>Paul,</div><div><br class=""></div><div>It seems you are questioning the starting trigger for the process, not the process. What it would look like if that proposal clock would start at the end of objection deadline for contention sets with no objections, or after objection decision ? </div><div>The same could apply to GAC Early Warning and/or timely GAC Advice. <br class=""><blockquote type="cite" class=""><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: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Let’s build the Guardrails around the status quo and get this final report out.</span></div></div></div></blockquote><div><br class=""></div>Do you mean guardrails and transparency ? </div><div><br class=""></div><div><br class=""></div><div>Rubens</div><div><br class=""><blockquote type="cite" class=""><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: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Best,<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Paul<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" 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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" class=""><span class="Apple-converted-space"> </span>Jim Prendergast <<a href="mailto:jim@GALWAYSG.COM" style="color: purple; text-decoration: underline;" class="">jim@GALWAYSG.COM</a>><span class="Apple-converted-space"> </span><br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Monday, July 13, 2020 4:41 PM<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>>; Pruis, Elaine <<a href="mailto:epruis@verisign.com" style="color: purple; text-decoration: underline;" class="">epruis@verisign.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] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes<o:p class=""></o:p></span></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Paul – I’m really stumped by your objection to adding more transparency to a portion of the program that not only concerns the Board, but the GAC, ALAC and several others. <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">I’m sorry you were overwhelmed by the compromise proposal but compared the discussions we had the last few weeks on SPIRT, it’s quite simple. <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Since you have mischaracterized a key portion of it a few times, let me make it abundantly clear. <span class="Apple-converted-space"> </span><b class=""><u class="">My proposal still allows for your clients to get paid if they lose an auction. There is no ban.</u></b> <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Jim Prendergast<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">The Galway Strategy Group<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">+1 202-285-3699<o:p class=""></o:p></span></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" 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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" 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>McGrady, Paul D.<br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Monday, July 13, 2020 4:07 PM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>Pruis, Elaine <<a href="mailto:epruis@verisign.com" style="color: purple; text-decoration: underline;" class="">epruis@verisign.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] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes<o:p class=""></o:p></span></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Hi Elaine,<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">I wish there was a way to make the issues list shorter. Jim’s proposal touches on so many issues and undoes so much of the work of this WG over the last 4 years on so many sections of the AGB that there is no way to boil it down to an easy soundbite. If we are going to discuss, again, the rejected ideas of banning private auctions and Vickrey auctions before evaluation (and I see no reason why we would since these ideas are long dead in this WG), we will have to go through – in detail – the list of questions and concerns that I presented and any other questions and concerns raised by others. We should also go line by line through the draft report to see what other sections would have to be amended and then go through the 2012 AGB again to look for other consequences – intended or not. There isn’t any shortcut here I am afraid. <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Best,<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Paul<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" 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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" class=""><span class="Apple-converted-space"> </span>Pruis, Elaine <<a href="mailto:epruis@verisign.com" style="color: purple; text-decoration: underline;" class="">epruis@verisign.com</a>><span class="Apple-converted-space"> </span><br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Monday, July 13, 2020 10:33 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:jeff@jjnsolutions.com" style="color: purple; text-decoration: underline;" class="">jeff@jjnsolutions.com</a>;<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: RE: Re: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes<o:p class=""></o:p></span></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Forgive me. Today I’m a bit overwhelmed by so many words.<span class="Apple-converted-space"> </span><o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">I’m hearing <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">-90 days is too short<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">120 days</b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">-you don’t want ICANN involved in contention resolution<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Community selected auction provider</b> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">-You don’t want the private resolution to have transparency requirements <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">This is a either or and I think transparency is important</b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">-You don’t want 200 competition authorities to review every deal<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Ok let’s have one or two then</b><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">What else? Could you sum up any concerns I missed with a few bullet points please?<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">No need to repeat “sweeping last minute proposal.”<o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Thanks <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Elaine <o:p class=""></o:p></div></div><div class=""><div class=""><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><o:p class=""> </o:p></p><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;">On Jul 12, 2020, at 8:09 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></p></blockquote></div><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span class="Apple-converted-space"> </span><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; background-color: yellow;" class="">Thanks Elaine.</span><span style="font-family: "Times New Roman", serif;" class=""> I’m sorry, but I am not going to be able to buy the fiction that there is a problem. I know that those proposing to eliminate private auctions really, really need those of us who do not see the need to do so to buy into the unnamed, undocumented, non-data supported non-problem. But, we just can’t do so. But, that has not stopped me from proposing very reasonable guardrails for applications. The Guardrail Compromise has been what this WG has been working on for the last 3-4 weeks, as Jeff informed the GAC. Let’s focus on getting to a real compromise. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; background-color: yellow;" class="">Jeff & Cheryl</span><span style="font-family: "Times New Roman", serif;" class="">, the bottom line on the new, sweeping, and invasive proposal is that it is merely a repackaged and rebranded attempt to eliminate private auctions and force everyone into early Vickrey auctions. It is not, as advertised, a compromise proposal at all. The proposal has especially deleterious consequences for .brand applicants, community based applicants, applicants with limited funds that might not even have to face an auction if a competitive string was eliminated by evaluation, anyone who still takes public comments seriously, the GAC Early Warning mechanism’s meaningfulness, the list goes on and on. <span class="Apple-converted-space"> </span></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Below are some initial questions raised by the new, sweeping proposal. These are all serious questions and concerns and if the WG is actually going to go down the path of discussing, again, the elimination of private auctions and the forcing of everyone into early Vickrey auctions (both ideas that have been rejected over and over again by this WG), these questions and concerns need to be given adequate time to be discussed (again). </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">_______________</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Objective: <br class=""></span></b><span style="font-family: "Times New Roman", serif; color: red;" class="">Increase transparency and accountability in contention resolution to improve the perception of ICANN and the new gTLD program.</span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">“Perception” by who?</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">Is the “perception” of ICANN a GNSO WG function, or is that better left to ICANN Org?</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">Will ICANN’s invasion into private sector affairs “improve the perception of ICANN”? (I think there is a sweeping assumption in the sweeping proposal – one which I do not share – namely that by making it difficult/impossible for private resolutions to occur resulting in filling ICANN’s coffers with more money that have and will raid/use to influence pet projects, will somehow “improve the perception of ICANN.” I think when a GC finds out unless her company can run the tight 90-day gauntlet below she will be forced into another $300 million + round of ICANN-controlled auctions, her reaction is not going to be “well, not being able to work things out between parties is terrific! Hooray ICANN.”</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">Have we taken in any advice from ICANN Org’s public relations department that changing the status quo in a manner that gives ICANN even more influence on private sector actors in the DNS (including a already proposed and now re-proposed capital punishment right) will, in fact, “improve the perception of ICANN”? </span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">Where is the “perception” concern coming from? The ICANN Board comments, which some are relying upon to try to ban private auctions as the sweeping proposal does, doesn’t mention anything about the Board feeling that ICANN was being mal-perceived by anyone nor did it task us with fixing any PR problems for them.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">“Transparency and Accountability” to who?</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class="">Do we really want to expand ICANN’s ability to open up the full books, trade secrets, and business plans of all contracted and accredited parties? One could<span class="Apple-converted-space"> </span><i class="">almost</i><span class="Apple-converted-space"> </span>see this idea having<span class="Apple-converted-space"> </span><i class="">some tiny little legs</i><span class="Apple-converted-space"> </span>if ICANN were still a government contractor. But now that ICANN is a private sector actor acting in conjunction with non-governmental contracts with other private sector actors, there is no rational basis to force the kinds of invasions that the sweeping proposal suggests. <span class="Apple-converted-space"> </span></span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Proposed process:</span></b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">String Similarity evaluation completed</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">On Reveal Day, all contention sets are announced (number and entities are revealed)</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">A 90-day Resolution Period begins</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">From where did the 90-day deadline come? On its face it seems completely arbitrary.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Was this based on an average of how long it took private sector actors to privately resolve contention sets in the last round? I don’t recall seeing any survey data on this or even hearing any anecdotal stories that would indicate that 90 days is sufficient.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Was this based on a survey of likely future applicants? I don’t recall seeing any such survey results.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Do we want to adopt a proposal that seems to help small, nimble players (private equity firms) or very large players in the domain name industry at the expense of any medium-large companies who happen to have adequate corporate governance? 90 days doesn’t even seem like enough time to identify and conduct due diligence on a JV or the like, much less get a deal to close (remember, once an application is withdrawn, it can’t be re-filed, so we are only talking about deals that can be identified, papered, pass corporate governance, be funded, and closed in 90 days). The timeframe suggested is highly unrealistic. </span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">What about GAC Early warnings, GAC Advice, public comments, various objections, etc.? Will all of those be in and resolved within the 90 days of reveal? That is not how things worked last time and I don’t see anything in the draft report so far that indicates that this is how it will work in future rounds. To even consider this sweeping proposal, we would have to take a look at all of the other timelines or just reject the idea generally that the objection processes have any meaning. <span class="Apple-converted-space"> </span></span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">This deadline excludes .brand applicants from using the Legal Rights Objection. It seems very unlikely that a .brand applicant that is in the middle of a trademark dispute triggered by reveal (and which would normally proceed to a Legal Rights Objection) (which has ZERO possibility of being resolved within the 90 days by the way) would, at the same time be negotiating a JV with a party that it believes is a top level squatter. All of this appears to be a last minute attack on .brand applicants. </span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">What other objection processes would the sweeping proposal render void? There doesn’t seem to be any concern whatsoever about those in this last minute proposal. We would need to study each objection process to see how the 90 day deadline would affect them.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 74.55pt; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Leaves no time to address wrong outcomes for string similarity</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Members of a contention set may </span><o:p class=""></o:p></li></ul></ul><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">“…May…” Overarching question: where in the bylaws is ICANN granted such sweeping powers to insist on imposing itself into the private affairs, plans, and trade secrets of applicants and to limit their range of options? This is Mission creep writ large. </span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Form a JV</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">This is a non-option for .brands whose trademarks are being squatted upon by another applicant</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">This may be a non-option for non-profit entity applicants who may or may not be able to form JVs with other entities, non-profit or otherwise</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">This will not be an option for large sophisticated companies when the other party in the contention set is a small time actor or unknown or otherwise has a business model that is unappealing or shady. <span class="Apple-converted-space"> </span></span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">“Form a JV” may solve some problems, but it is not a one size fits all</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Withdraw</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Not a solution. Partial ICANN refund does not return all of your sunk costs (lawyers, advisors, time to develop use cases, etc.). May sound great to large corporations with limitless resources, but not so great for medium/small entities with an innovative use case or for large corporations with good governance.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Find a creative private resolution</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Glad to see this idea here, but what does it mean? How does it interact with the new power that is being proposed below for ICANN that enables ICANN to preclude private auctions or auction like mechanisms?</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Fail to resolve</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">This may sound benign, but instead of giving the entire runway prior to auction of final resort to find a solution that was given in the 2012, the parties are put into a 90 day pressure cooker. This appears to be designed to calcify contention sets to ensure more end up in ICANN last resort auctions (since not everyone will be OK with the heavy-handed “3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Sealed Bid” auction (a completely new concept suggested at the very end of this PDP by the way) suggested below. <span class="Apple-converted-space"> </span></span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Members of a contention set may NOT </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Participate in a private auction or auction like mechanism.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Here is the heart of it. We have spent 4 years not reaching consensus on eliminating private auctions. Yet, here it is again, surrounded by lots of other confusing elements. But, it is here. And, it is not supported.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">What is an “auction like mechanism”? What is its scope? If a .brand applicant sends a demand letter to another entity in a contention set and they settle the matter with a settlement agreement in which the other entity withdraws its application and the .brand applicant pays some amount, is that an “auction like mechanism”? Why would we invite ICANN into private settlements of disputes? Why would we compromise our trademarks by agreeing to this? This is the second apparent attack on .brand applicants I’ve noted in this sweeping proposal. Is that a coincidence?</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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:</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Agree to participate in a sealed bid “3<sup class="">rd</sup>Party Auction” which is overseen by ICANN. Proceeds are distributed amongst the losing applicants in the contention set.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Agree to participate in an ICANN Auction of Last Resort using the sealed bids. Proceeds go to ICANN Auctions Proceeds fund.</span><o:p class=""></o:p></li></ul></ul><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">This section appears to be a repackaging of the prior section, so my questions and comments should be brought down into this section as well, including but not limited to pointing out that the timing involved is wildly impractical for any business with any sort of corporate governance in place. The timing also appears to misunderstand completely the role of public comment, GAC Early Warnings, Community Evaluation, and the Objection mechanisms that we have all worked so hard on these past 4 years. This single-minded distaste for private auctions is truly a tail that looks to upend the dog. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Auctions of Last Resort and 3<sup class="">rd</sup> Party Auctions will take place immediately after the 90 day Private Resolution Period </span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">For all the reasons mentioned above, advancing the timeline on the historic ICANN auction of last resort and the completely new 3<sup class="">rd</sup> Party Auctions simply doesn’t work. This is appears to be a final stab at advancing the timeline for the auctions of last resort adding a Vickrey element (an idea that has already been rejected by the WG) while throwing in the new 3<sup class="">rd</sup> Party Auctions concept (which itself is just a form of the accelerated Vickrey option). There simply isn’t bandwidth to re-litigate everything that the proponents of this last minute, sweeping proposal were unable to accomplish over the last four years. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">For 3<sup class="">rd</sup> Party Auctions </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">This is, essentially, a renamed version of the early “vickrey auction” which was rejected by the WG. The fact that the funds are dispersed to the losers who were forced into this option by a 90 day, arbitrary deadline (which essentially eliminates any real possibility of private solutions) is of little comfort. Further, how would an auction provider “attest” these requirements? What information is “all information”? Would this require the turning over of trade secrets to the auction vendor and the opposing party? </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">“May be delayed…” is of little comfort since public comment, GAC Early Warnings, Community Evaluations, and the outcome of Objection processes all have a bearing on the value of the TLD string and, in fact, whether or not a contention set even survives to auction. This latest forced Vickrey model (no matter what it is euphemistically named or marketed as) is in its essence the early Vickrey model that did not get consensus. <span class="Apple-converted-space"> </span></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">All auctions are to be conducted in an identical fashion using publicly available procedures.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">I have no idea what this means. What are the publicly available procedures and where can we find them? Is there a link? What is it that we are being asked to agree to? Does “identical fashion” mean at the same time on the same day? All of this last minute stuff is incredibly vague.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">All auctions should be finalized as quickly as possible after the 90-day deadline.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Why not? Everything else about this proposal is a ridiculous forced march.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Not only does this ignore all of the problems with the forced 90-day timing, this is also a giant leap from the suggestion Jeff made a few days ago about perhaps requiring disclosure of the financial results from private auctions. I wouldn’t mind seeing that chiseled away from this otherwise sweeping proposal and discussed in the context of guardrails, but discussing it in the context of the 90 day forced march is fruitless.</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 2in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Does the losing applicant get a refund? If so, how much? If no, why not?</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Auctions of Last Resort </span><o:p class=""></o:p></li></ul></ul><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">On the auction date, the applicant that submitted the highest sealed bid amount pays the second-highest bid amount.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Once payment is received, the applicant may proceed to evaluation and eventually the Transition to Delegation.</span><o:p class=""></o:p></li></ul></ul></ul><div style="margin: 0in 0in 0.0001pt 1.25in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">This paragraph clearly evidences why the sweeping proposal is nothing but an elimination of private auctions and a clever attempt to force everyone into an early Vickery auction. The only differences between the “3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction” and the Auction of Las Resort is who gets the money, with one exception. There appears to be a veiled threat in not choosing auction of last resort as the auction of last resort winner<span class="Apple-converted-space"> </span></span><span style="font-family: "Times New Roman", serif;" class="">“may proceed to evaluation and eventually the Transition to Delegation<span style="color: red;" class="">.</span><span style="" class="">” There is no mention of this next step for the “3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction” winner, so it appears that those applications go into some sort of limbo?</span></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.25in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li></ul><p class="MsoListParagraph" style="margin-right: 0in; margin-left: 0.5in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 0.0001pt;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></p><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">What happens in the event of non-payment by the winner of either of the two versions of the resubmitted early Vickrey auctions?</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Bottom line is that this is all just a repackaging of the early vickrey option that the WG has already rejected. It is very late in the day to entertain a repackaging and rebranding of long rejected ideas. The WG should spend its time refining my proposed Guardrails. While I do not believe there is a problem to be solved here, my guardrails will ensure that anyone who might be applying without an intent to operate the registry is on notice not to do so.</span><o:p class=""></o:p></div><p class="MsoListParagraph" style="margin-right: 0in; margin-left: 0.5in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 0.0001pt;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></p><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Requirements:</span></b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">Add T&Cs warning applicants that they may not participate in any of the following activities (Prohibited Application Activities):</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">They shall not submit applications largely for the purpose of financially benefiting from the resolution of contention sets</span><o:p class=""></o:p></li></ul></ul><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">This is essentially another way to rephrase my Guardrail #2. I have no problem with the concept, of course, but I do not think it functions well in the heavy-handed context that is being proposed.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li></ul></ul><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Please see my comments above about how this would cripple settlement between a .brand applicant and another entity that the .brand applicant believes is a top level squatter</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">Why would someone become a JV partner with someone else if there was no financial benefit in doing so? This new requirement vitiates even the JV option (which while not useful for many applicants, at least it was something).</span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1.5in; font-size: 12pt; font-family: Calibri, sans-serif; text-indent: -0.25in;" class=""><span style="font-size: 11pt; font-family: Wingdings;" class=""><span class="">Ø<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-family: "Times New Roman", serif;" class="">What does financial benefit mean? If the applicant withdraws because it knows it will lose the forced-march-early-Vickrey-auction, doesn’t it financially benefit from cutting its losses early? <span class="Apple-converted-space"> </span></span><span style="font-size: 11pt;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">The Registry Agreement must include a mandatory Public Interest Commitment stating that the registry:</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">has not submitted applications for the purpose of financially benefiting from the resolution of contention sets.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">has not participated in an auction or auction like mechanisms outside of the ICANN 3<sup class="">rd</sup>party and ICANN Auction of Last Resort.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">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.</span><o:p class=""></o:p></li></ul></ul><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">These are the very same ridiculous punishments – capital punishment for registries - that the WG has already reviewed and rejected. Why are we even seeing this again? There is no way to repackage and rebrand these to make them palatable. These would also steep ICANN in litigation should it try to kill a registry operator. Even if this WG were inclined to grant ICANN the right to kill off registries for allegedly violating these requirements, we would need to spend weeks fleshing out what the punishments are and what the process (trial and appeal) would look like. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt 1in; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class=""> </span><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">The auction provider must agree to fully disclose all information about the auctions</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">The auction provider must assert that all rules were followed before releasing auction funds</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; color: red;"><span style="font-family: "Times New Roman", serif;" class="">All contention set resolutions including creative resolutions, 3<sup class="">rd</sup> Party Auction and ICANN Auctions of last resort must be submitted by ICANN to relevant competition authorities for review.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">This would bring the next round to a halt. Not only is this extreme overkill by any imagination, how long do the evaluators have to wait to hear back from 200+ competition authorities?</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Benefits:</span></b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Full transparency, ICANN oversight and competition authority review mitigate community concerns about nefarious activity.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Many others and myself do not agree that giving more power to ICANN to interfere in private matters of its contracted parties is automatically a benefit. I certainly do not agree that the brand new idea of grinding future rounds to a halt while 200+ competition authorities fail to respond to inquiries is a benefit to anyone except registries already in existence. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Unlike the 2012 round, access to data from this point forward can inform future policy making efforts in the program.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">At least the proponents of this late entry admit that they have no data from the last round to support their policy-making effort. We should at least attempt the Guardrails and, should an actual problem come into existence, then consider other options at that time. A heavy-handed solution for a non-problem based on non-data is not only misguided, it is obviously premature.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Private auctions are eliminated but applicants can still receive proceeds from a 3<sup class="">rd</sup> Party Auction if all applicants in a contention set agree.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">At least the proponents of this late entry come clean and admit that it eliminated private auctions and that it is not somehow another form of them.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Sealed bids tend to result in lower auction prices so decreased auctions proceeds to ICANN fund.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">All of this regulation and red tape is a very high price to pay for *possible* lower auction prices. A party involved in a private auction is free to walk away at any price point it likes. It doesn’t need an ICANN nanny to help it not bid too much.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; color: red;" class="">Speeds up the process allowing more applicants to withdraw applications prior to evaluations resulting in greater refund amounts and faster processing of remaining applications.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">It may speed up the process, but at great cost to actually creating more entries, and therefore, competition in the domain name space. It also undoes all of our work on objections, GAC Early Warnings, etc. <span class="Apple-converted-space"> </span></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" class=""><span class="Apple-converted-space"> </span>Pruis, Elaine <<a href="mailto:epruis@verisign.com" style="color: purple; text-decoration: underline;" class="">epruis@verisign.com</a>><span class="Apple-converted-space"> </span><br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Saturday, July 11, 2020 9:26 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>>;<span class="Apple-converted-space"> </span><a href="mailto:jeff@jjnsolutions.com" style="color: purple; text-decoration: underline;" class="">jeff@jjnsolutions.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: Re: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Paul,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">I’m surprised by your comments. Especially surprising because of your concern that the WG conversation on closed generics was shut down prematurely, and you’ve been pushing for more conversation on that topic. What’s the hurry now with contention resolution?<span class="Apple-converted-space"> </span></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">We’ve got a reasonable proposal to consider and discuss. It was sent to the list and introduced to the WG on the 11pm July 1<sup class="">st</sup>, where we agreed to table the conversation until Jeff was back and we would have enough time to dig into the details. Folks have had 10 days to study it, and many people prepared for the discussions that have been scheduled and delayed twice.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">The “discussed for months” aspects are the compromise positions proposed. It wraps in Kristina’s ask for creative resolution, Donna’s proposal to allow for auctions, your proposal for guardrails, Jeff’s proposal for transparency, the sealed bid auction proposal. It is not “last minute” any more than your guardrails are last minute. There not “rearranged”, they’re all included. We’re not forced to pick one, we can have them all.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Continuing to deny there is a problem ignores the Board statement, CCTRT recommendations, and the GAC advice on the topic.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Please let’s try to get to a compromise on this issue.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 10pt; font-family: Helvetica, sans-serif; color: rgb(68, 114, 196);" class="">Elaine Pruis</span></b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; line-height: 10.5pt;" class=""><span style="font-size: 9pt; font-family: Helvetica, sans-serif; color: rgb(107, 109, 113);" class="">Senior Director Naming Operations and Policy</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; line-height: 10.5pt;" class=""><span style="font-size: 9pt; font-family: Helvetica, sans-serif; color: rgb(107, 109, 113);" class=""><a href="mailto:epruis@verisign.com" style="color: purple; text-decoration: underline;" class="">epruis@verisign.com</a></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; line-height: 10.5pt;" class=""><span style="font-size: 9pt; font-family: Helvetica, sans-serif; color: rgb(127, 127, 127);" class="">703.948.4672</span><o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt; font-family: "Times New Roman", serif;" class=""><image003.png><o:p class=""></o:p></span></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="border-style: solid none none; border-top-width: 1pt; border-top-color: rgb(181, 196, 223); padding: 3pt 0in 0in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class="">From:<span class="Apple-converted-space"> </span></span></b><span style="" 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>> on behalf of "McGrady, Paul D." <<a href="mailto:PMcGrady@taftlaw.com" style="color: purple; text-decoration: underline;" class="">PMcGrady@taftlaw.com</a>><br class=""><b class="">Date:<span class="Apple-converted-space"> </span></b>Friday, July 10, 2020 at 9:27 AM<br class=""><b class="">To:<span class="Apple-converted-space"> </span></b>Jeff Neuman <<a href="mailto:jeff@jjnsolutions.com" style="color: purple; text-decoration: underline;" class="">jeff@jjnsolutions.com</a>><br class=""><b class="">Cc:<span class="Apple-converted-space"> </span></b>"<a href="mailto:gnso-newgtld-wg@icann.org" style="color: purple; text-decoration: underline;" class="">gnso-newgtld-wg@icann.org</a>" <<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:<span class="Apple-converted-space"> </span></b>[EXTERNAL] Re: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Thanks Jeff,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">The issue became moot because we ran out of time on the last call. Good job putting the finishing touches on the SPIRT!</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Regarding your email below, I was puzzled by Jim’s assertion that all of the substantive elements of his second version of his last minute proposal “are the same and have been discussed by this group for months.” I am not at all sure that this statement is accurate (as far as I know, the new ICANN-controlled-not-“auction of last resort”-mechanism appears to be new, sweepingly invasive, and suggested just a few days ago right as this PDP is winding down). Even so, if all of the substantive elements in Jim’s second version of the last minute proposal have been discussed by this group for months as Jim suggests, why are we taking this up again? </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">While I will have more to say on the list regarding the flaws in Jim’s last minute plan (stay tuned), if what Jim says is accurate, discussing a mere repackaging of elements that “have been discussed by this group for months” and rejected doesn’t seem like a good use of anyone’s time. Bringing back old rejected ideas, rearranging them, and then presenting them as new, especially at the last minute, runs the risk of derailing our progress to tweaks to the status quo to address presumptive concerns about abusive applications.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">We will be far better served to continue our progress of the last several weeks and spend the majority of what time remains to look over and refine the guardrails to the status quo that I have suggested as a compromise position. And, it is a compromise position because many, many of us simply have yet to hear of a compelling problem that needs to be solved and believe the status quo is just fine. But, my guardrails are an olive branch to try to address whatever it is that a portion in this WG seem worried about. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Best,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Paul</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" class=""><span class="Apple-converted-space"> </span>Jeff Neuman <<a href="mailto:jeff@jjnsolutions.com" style="color: purple; text-decoration: underline;" class="">jeff@jjnsolutions.com</a>><span class="Apple-converted-space"> </span><br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Thursday, July 9, 2020 11:43 AM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>Jim Prendergast <<a href="mailto:jim@GALWAYSG.COM" style="color: purple; text-decoration: underline;" class="">jim@GALWAYSG.COM</a>><br class=""><b class="">Cc:</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>>; Julie Hedlund <<a href="mailto:julie.hedlund@icann.org" style="color: purple; text-decoration: underline;" class="">julie.hedlund@icann.org</a>>;<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: Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Thanks Jim. Paul – given Jim’s statements that his changes were for clarity and not substantive, I believe we can discuss it on the call in a few hours.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt; font-family: "Times New Roman", serif;" class=""><image004.png><o:p class=""></o:p></span></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; background-color: white;" class=""><span style="font-size: 13.5pt; font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17);" class="">Jeff Neuman</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 14pt; font-family: "Book Antiqua", serif; color: rgb(0, 112, 192); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">JJN Solutions, LLC</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">Founder & CEO<br class="">+1.202.549.5079<br class="">Vienna, VA 22180</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17); background-color: white; background-position: initial initial; background-repeat: initial initial;" class=""><a href="mailto:Jeff@JJNSolutions.com" style="color: purple; text-decoration: underline;" class="">Jeff@JJNSolutions.com</a></span><span style="font-size: 10pt; font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17);" class=""><br class=""></span><span style="font-size: 11pt;" class=""><a href="http://jjnsolutions.com/" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="font-size: 12pt; font-family: "Trebuchet MS", sans-serif; color: rgb(9, 117, 122); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">http://jjnsolutions.com</span></a></span><o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" class=""><span class="Apple-converted-space"> </span>Jim Prendergast <<a href="mailto:jim@GALWAYSG.COM" style="color: purple; text-decoration: underline;" class="">jim@GALWAYSG.COM</a>><span class="Apple-converted-space"> </span><br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Thursday, July 9, 2020 12:38 PM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>Jeff Neuman <<a href="mailto:jeff@jjnsolutions.com" style="color: purple; text-decoration: underline;" class="">jeff@jjnsolutions.com</a>><br class=""><b class="">Cc:</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>>; Julie Hedlund <<a href="mailto:julie.hedlund@icann.org" style="color: purple; text-decoration: underline;" class="">julie.hedlund@icann.org</a>>;<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: Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">No substantive differences Jeff. Edits for clarity and more logical ordering. All the substantive elements are the same and have been discussed by this group for months. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">The new text is the compromises contained because that it what you asked the group to do. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Original email from July 1 is posted immediately below. <o:p class=""></o:p></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div></div><div class=""><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><div class=""><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><b class=""><span style="" class="">From:</span></b><span style="" class=""> Jim Prendergast <<a href="mailto:jim@GALWAYSG.COM" style="color: purple; text-decoration: underline;" class="">jim@GALWAYSG.COM</a>><br class=""><b class="">Date:</b> July 1, 2020 at 4:26:50 PM EDT<br class=""><b class="">To:</b> "<a href="mailto:gnso-newgtld-wg@icann.org" style="color: purple; text-decoration: underline;" class="">gnso-newgtld-wg@icann.org</a>" <<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> <b class="">[Gnso-newgtld-wg] Compromise proposal on Auctions</b></span><o:p class=""></o:p></p></div></blockquote><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">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><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">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.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class=""> </span></b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class="">Objective: <br class=""></span></b><span style="" class="">Increase transparency and accountability in contention resolution to improve the perception of ICANN and the new gTLD program.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class="">Proposed process:</span></b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">String Similarity evaluation completed</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">On Reveal Day, all contention sets are announced (number and entities are revealed)</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">A 90-day Resolution Period begins </span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Members of a contention set may </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Form a JV</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Withdraw</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Find a creative private resolution</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Fail to resolve</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Members of a contention set may NOT </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Participate in a private auction or auction like mechanism.</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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:</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Agree to participate in a sealed bid “3<sup class="">rd</sup>Party Auction” which is overseen by ICANN. Proceeds are distributed amongst the losing applicants in the contention set.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Agree to participate in an ICANN Auction of Last Resort using the sealed bids. Proceeds go to ICANN Auctions Proceeds fund.</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Auctions of Last Resort and 3<sup class="">rd</sup> Party Auctions will take place immediately after the 90 day Private Resolution Period </span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">For 3<sup class="">rd</sup> Party Auctions </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">All auctions are to be conducted in an identical fashion using publicly available procedures.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">All auctions should be finalized as quickly as possible after the 90 day deadline.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Auctions of Last Resort </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">On the auction date, the applicant that submitted the highest sealed bid amount pays the second-highest bid amount.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Once payment is received, the applicant may proceed to evaluation and eventually the Transition to Delegation.</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li></ul><p class="MsoListParagraph" style="margin-right: 0in; margin-left: 0.5in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 0.0001pt;"><span style="" class=""> </span><o:p class=""></o:p></p><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class="">Requirements:</span></b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Add T&Cs warning applicants that they may not participate in any of the following activities (Prohibited Application Activities):</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">They shall not submit applications largely for the purpose of financially benefiting from the resolution of contention sets</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The Registry Agreement must include a mandatory Public Interest Commitment stating that the registry:</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">has not submitted applications for the purpose of financially benefiting from the resolution of contention sets.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">has not participated in an auction or auction like mechanisms outside of the ICANN 3<sup class="">rd</sup>party and ICANN Auction of Last Resort.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The auction provider must agree to fully disclose all information about the auctions</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The auction provider must assert that all rules were followed before releasing auction funds</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">All contention set resolutions including creative resolutions, 3<sup class="">rd</sup> Party Auction and ICANN Auctions of last resort must be submitted by ICANN to relevant competition authorities for review.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class=""> </span></b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="" class="">Benefits:</span></b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">Full transparency, ICANN oversight and competition authority review mitigate community concerns about nefarious activity.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">Unlike the 2012 round, access to data from this point forward can inform future policy making efforts in the program.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">Private auctions are eliminated but applicants can still receive proceeds from a 3<sup class="">rd</sup> Party Auction if all applicants in a contention set agree.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">Sealed bids tend to result in lower auction prices so decreased auctions proceeds to ICANN fund.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class="">Speeds up the process allowing more applicants to withdraw applications prior to evaluations resulting in greater refund amounts and faster processing of remaining applications.</span><o:p class=""></o:p></div></div></div></blockquote><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="" class=""> </span><o:p class=""></o:p></div></blockquote></div><div class=""><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"> <o:p class=""></o:p></p><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;">On Jul 9, 2020, at 12:08 PM, Jeff Neuman <<a href="mailto:jeff@jjnsolutions.com" style="color: purple; text-decoration: underline;" class="">jeff@jjnsolutions.com</a>> wrote:<o:p class=""></o:p></p></blockquote></div><blockquote style="margin-top: 5pt; margin-bottom: 5pt;" class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Jim,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Can you highlight what differences (if any) are in your more refined proposal?</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Thanks.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><image001.png></span><o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; background-color: white;" class=""><span style="font-size: 13.5pt; font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17);" class="">Jeff Neuman</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 14pt; font-family: "Book Antiqua", serif; color: rgb(0, 112, 192); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">JJN Solutions, LLC</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">Founder & CEO<br class="">+1.202.549.5079<br class="">Vienna, VA 22180</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17); background-color: white; background-position: initial initial; background-repeat: initial initial;" class=""><a href="mailto:Jeff@JJNSolutions.com" style="color: purple; text-decoration: underline;" class="">Jeff@JJNSolutions.com</a></span><span style="font-size: 10pt; font-family: "Trebuchet MS", sans-serif; color: rgb(17, 17, 17);" class=""><br class=""></span><span style="font-size: 11pt;" class=""><a href="http://jjnsolutions.com/" target="_blank" style="color: purple; text-decoration: underline;" class=""><span style="font-size: 12pt; font-family: "Trebuchet MS", sans-serif; color: rgb(9, 117, 122); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">http://jjnsolutions.com</span></a></span><o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" 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>McGrady, Paul D.<br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Thursday, July 9, 2020 11:34 AM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>Jim Prendergast <<a href="mailto:jim@GALWAYSG.COM" style="color: purple; text-decoration: underline;" class="">jim@GALWAYSG.COM</a>>; Julie Hedlund <<a href="mailto:julie.hedlund@icann.org" style="color: purple; text-decoration: underline;" class="">julie.hedlund@icann.org</a>>;<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] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Thanks Jim. Your first proposal was a very complex 11<sup class="">th</sup>hour “solution” to a problem that has yet to be identified. Now, there is another version of the 11<sup class="">th</sup><span class="Apple-converted-space"> </span>hour submission. Respectfully, all of this proposed reengineering should have been introduced months ago instead of all the digging in that was done by opponents of private resolutions. The ideas in here are sweeping and we are trying to get a final report out of the door. <span class="Apple-converted-space"> </span></span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Co-chairs, if there is an intention to take up version 2 of Jim’s proposal in the next call, I really must ask for more time than just a few hours before the call to dig through it. No one has time to unpack what the proposed changes to the last minute ideas here are, much less have time to understand the consequences and unintended consequences of the second last minute proposal. Since my additional safeguards build on the last 3-4 weeks of work by the WG, I am happy to address those on the next call if the agenda permits, but I don’t think it is fair to force a discussion of this new submission from Jim within less than 24 hours of it going out on the list.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Best,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class="">Paul</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><p style="margin-right: 0in; margin-left: 0in; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-family: Arial, sans-serif; color: rgb(151, 153, 155);" class="">To receive regular COVID-19 updates from Taft, </span><span style="font-family: Arial, sans-serif; color: rgb(162, 40, 49);" class=""><a href="https://www.taftlaw.com/general/subscribe" style="color: purple; text-decoration: underline;" class=""><span style="color: rgb(162, 40, 49);" class="">subscribe here</span></a></span><span style="font-family: Arial, sans-serif; color: rgb(151, 153, 155);" class="">. For additional resources, visit Taft's COVID-19<span class="Apple-converted-space"> </span></span><span style="font-family: Arial, sans-serif; color: rgb(162, 40, 49);" class=""><a href="https://www.taftlaw.com/general/coronavirus-covid-19-resource-toolkit" style="color: purple; text-decoration: underline;" class=""><span style="color: rgb(162, 40, 49);" class="">Resource Toolkit</span></a></span><span style="font-family: Arial, sans-serif; color: rgb(151, 153, 155);" class="">.</span><span style="font-size: 10pt; font-family: Arial, sans-serif; color: rgb(151, 153, 155);" class=""><br class=""><br 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.</span><o:p class=""></o:p></p><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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" 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>Jim Prendergast<br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Wednesday, July 8, 2020 8:21 PM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>Julie Hedlund <<a href="mailto:julie.hedlund@icann.org" style="color: purple; text-decoration: underline;" class="">julie.hedlund@icann.org</a>>;<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] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">In the event we get to Agenda Item 3 tomorrow, below is a more refined version of the Compromise Proposal I circulated on July 1. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">I’d like to ask the Co-Chairs and Staff to add it to the working document so it is more easily displayed to those participating in the Zoom call tomorrow. </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Objective:<span class="Apple-converted-space"> </span><br class=""></b>Increase transparency and accountability in contention resolution to improve the perception of ICANN and the new gTLD program.<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Compromises contained</b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""> </b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Some WG participants wanted an opportunity for creative resolutions to contentions via JVs and other corporate structuring.<o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">90-day window to negotiate and announce those to ICANN.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Some WG participants expressed a strong desire for losers in auctions to get paid. Others were concerned ICANN would “line its pockets” if all auctions were auctions of Last Resort.<o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Parties in a contention set may opt for an ICANN administered 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction where losers get paid as opposed to ICANN. </span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Advocates for Vickery Auction wanted sealed bids submitted at time of application to eliminate possibility of collusion. Others raised concerns about the burden on applicants who would not be in a contention set.<o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Only parties in contention sets will have to submit a sealed bid. Bids will be submitted 30 days into the 90 Day Resolution Period. </span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">While this does not eliminate the collusion concerns, it does narrow the window for that type of activity to occur.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class="">Advocates for “applicant support” applicants and single TLD applicants were concerned with the 2012 practice of rolling private auctions proceeds from one auction to another to overwhelm a single applicant or applicants who receive applicant support.<o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Conducting all 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>party Auctions at the same time eliminates this.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Benefits of the Compromise Proposal:</b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Full transparency, ICANN oversight and competition authority review mitigate community concerns about nefarious activity and add legitimacy to the process.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Unlike the 2012 round, access to data from this point forward can inform future policy making efforts in the program.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Private Auctions are eliminated but applicants can still receive proceeds from a 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction if all applicants in a contention set agree.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Research shows sealed bids result in lower auction prices so decreased auctions proceeds to ICANN in Last Resort auctions.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The compromise position increases efficiency and speeds up the process allowing more applicants to withdraw applications prior to evaluations resulting in greater refund amounts and faster processing of remaining applications. In 2012 millions of dollars were wasted on evaluations of applications that never had a chance of operating a TLD and those applicants had to wait years to get significantly reduced refunds from withdrawing.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Proposed process:</b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">String Similarity evaluation completed</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">On Reveal Day, ICANN announces contention sets including names of applicants.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">A 90-day Resolution Period begins</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Members of a contention set may</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Form a JV or other corporate structure</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Find a different creative resolution</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Withdraw</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Fail to resolve</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Members of a contention set may not</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Participate in a private auction or auction like mechanism.</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">30 days into the Resolution Period, all parties in a contention set will be required to submit a sealed bid for each string for which they are in a contention set.</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in;" class=""><ul type="circle" style="margin-bottom: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">If a JV, other corporate structure, or different creative resolution process is utilized, bids are destroyed and never revealed.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">If at the end of the 90-day Resolution Period, parties chose one of the two auction paths, bids submitted will be used for the auction the contention set decides to participate in.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">As part of AGB and communications plan, ICANN must make potential applicants aware that they should be considering these bids, including securing financing where necessary, as part of their business planning and application process. <span class="Apple-converted-space"> </span></span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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:<span class="Apple-converted-space"> </span></span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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 and ICANN would have to approve.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Agree to participate in a sealed bid “3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction” which is overseen by ICANN. Proceeds are distributed amongst the losing applicants in the contention set.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">If parties are unable to agree to either of the two previous options, an ICANN Auction of Last Resort will be conducted using the sealed bids. Proceeds go to ICANN Auctions Proceeds fund.</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Auctions of Last Resort and 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auctions will take place as soon as possible after the 90 day Private Resolution Period and before application evaluation takes place.<span class="Apple-converted-space"> </span></span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">For 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auctions</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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 and ICANN must attest that the participants fully disclosed all required information and followed the rules before the funds are released to the losers.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">As discussed previously, 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. </span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">All auctions are to be conducted in an identical fashion using publicly available procedures.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">All results are disclosed on a similar timeline as ICANN auctions of last resort from 2012 round, which was typically 72 hours. All parties partaking in the auction as well as winning bidder and amount paid are disclosed.</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Auctions of Last Resort </span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="square" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">If parties fail to form a JV or other Corporate structure, find a different creative resolution, or participate in a 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction, bids submitted during the 90 Day Resolution Period will be used. 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.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">On the auction date, the applicant that submitted the highest sealed bid amount pays the second-highest bid amount.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Once payment is received, the applicant may proceed to evaluation and eventually the Transition to Delegation.</span><o:p class=""></o:p></li></ul></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">In the unlikely event that a winning bidder in either auction format does not pass evaluation (none failed in 2012), of fails because of a CPE determination or outstanding accountability challenge, the next highest bidder is selected for evaluation.</span><o:p class=""></o:p></li></ul><p class="MsoListParagraph" style="margin-right: 0in; margin-left: 0.5in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 0.0001pt;"> <o:p class=""></o:p></p><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class="">Requirements:</b><o:p class=""></o:p></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Add T&Cs warning applicants that they may not participate in any of the following activities (Prohibited Application Activities):</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">They shall not submit applications largely for the purpose of financially benefiting from the resolution of contention sets</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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 and not participate in the operation of the TLD.</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The Registry Agreement must include a mandatory Public Interest Commitment stating that the registry:</span><o:p class=""></o:p></li></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><ul type="circle" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">has not submitted applications for the purpose of financially benefiting from the resolution of contention sets.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">has not participated in an auction or auction like mechanisms outside of the ICANN 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party and ICANN Auction of Last Resort.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">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.</span><o:p class=""></o:p></li></ul></ul><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The auction provider must agree to fully disclose all information about the auctions as requested by ICANN.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">The auction provider and ICANN must assert that all rules were followed before releasing auction funds.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">All contention set resolutions including JVs, creative resolutions, 3<sup class="">rd</sup><span class="Apple-converted-space"> </span>Party Auction and ICANN Auctions of last resort must be referred by ICANN to relevant competition authorities for review.</span><o:p class=""></o:p></li></ul><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""> </b><o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Jim Prendergast</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">The Galway Strategy Group</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">+1 202-285-3699</span><o:p class=""></o:p></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></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: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 11pt;" class="">From:</span></b><span style="font-size: 11pt;" 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>Julie Hedlund<br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Monday, July 6, 2020 2:50 PM<br class=""><b class="">To:</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>[Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 09 July at 20:00 UTC for 90 Minutes</span><o:p class=""></o:p></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Dear WG Members,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; caret-color: rgb(0, 0, 0); word-spacing: 0px;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; caret-color: rgb(0, 0, 0); word-spacing: 0px;" class=""><span style="font-size: 11pt;" class="">Please find below the proposed agenda for<span class="apple-converted-space"> </span>the WG meeting on<span class="apple-converted-space"> </span></span><b class=""><span style="font-size: 11pt;" class="">Thursday, 09<span style="" class=""><span class="Apple-converted-space"> </span>July<span class="apple-converted-space"> </span>2020 at<span class="apple-converted-space"> </span></span>20<span style="" class="">:00 UTC for 90 minutes.</span></span></b><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class="">Proposed Agenda:</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><ol start="1" type="1" style="margin-bottom: 0in; margin-top: 0in; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Review Agenda/Updates to Statements of Interest</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">Review the updated Predictability Framework, see: <a href="https://docs.google.com/document/d/1vBckhFQCCQ-zyvfGGcDB3NWQhodVsffdqbyb6kTwXL4/edit?usp=sharing" style="color: purple; text-decoration: underline;" class="">https://docs.google.com/document/d/1vBckhFQCCQ-zyvfGGcDB3NWQhodVsffdqbyb6kTwXL4/edit?usp=sharing</a>. Also attached, please find the updated concerns/mitigation document and process flow.</span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt; color: windowtext;" class="">R</span><span style="font-size: 11pt;" class="">eview Private Resolutions/Auctions: Hybrid Proposal 2+ and Proposal 4:<span class="apple-converted-space"> </span><a href="https://docs.google.com/document/d/1X8F8zHkgMzQg2WqGHpuoEP78rhpDkFOjD2qKrZZzjHw/edit?usp=sharing" style="color: purple; text-decoration: underline;" class="">https://docs.google.com/document/d/1X8F8zHkgMzQg2WqGHpuoEP78rhpDkFOjD2qKrZZzjHw/edit?usp=sharing</a></span><o:p class=""></o:p></li><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class="">AOB</span><o:p class=""></o:p></li></ol><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class="">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" style="color: purple; text-decoration: underline;" class="">gnso-secs@icann.org</a>.</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif; caret-color: rgb(0, 0, 0); font-variant-caps: normal; text-align: start; -webkit-text-stroke-width: 0px; word-spacing: 0px;" class=""><span style="font-size: 11pt;" class="">Best,</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Julie</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Julie Hedlund, Policy Director</span><o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""> <o:p class=""></o:p></div><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class=""> </span><o:p class=""></o:p></p></div></blockquote><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><o:p class=""> </o:p></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></span></p></div></blockquote></div><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></p></div><br style="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;" class=""><font face="Arial" color="Gray" size="1" style="font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; text-decoration: none;" class=""><br class=""></font><span style="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; float: none; display: inline !important;" class=""></span></div></blockquote></div><br class=""></body></html>