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</o:shapelayout></xml><![endif]--></head><body lang=EN-GB link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal><span style='mso-fareast-language:EN-US'>Apologies, I was unable to get to this sooner. <o:p></o:p></span></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal>Bid credits could be gamed by:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><ul style='margin-top:0cm' type=disc><li class=MsoListParagraph style='margin-left:0cm;mso-list:l2 level1 lfo8'>An ASP applicant receives bid credits, multipliers and other features and enters into a joint venture with a non-AS applicant. In turn, the non-ASP applicant receives the financial benefits that otherwise would not have been available to them.<o:p></o:p></li></ul><p class=MsoListParagraph><o:p> </o:p></p><ul style='margin-top:0cm' type=disc><li class=MsoListParagraph style='margin-left:0cm;mso-list:l2 level1 lfo8'>An ASP applicant receives the benefits of the bid credits, multipliers, other and subsequently ‘goes out of business’ and transfers ownership to a friendly party. The third party receives the benefits of the bid credits. As noted, we should clearly define ‘going out of business’ and ideally, provide an overview on how the transfer process is to be administered to avoid any loopholes on transfers to friendly party’s.<o:p></o:p></li></ul><p class=MsoNormal><o:p> </o:p></p><ul style='margin-top:0cm' type=disc><li class=MsoListParagraph style='margin-left:0cm;mso-list:l2 level1 lfo8'>If we haven’t already updated the repayment of bid credits, this would allow a change of control to occur and the ‘applicant to replay the full amount of the financial support received through the ASP program plus an additional ten percent’ without having to repay the value of the bid credits. We need to have include both - the application fee <i><u>and</u></i> the value of the bid credits, multipliers, other.<o:p></o:p></li></ul><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>The value of the auction bid credit, multipliers, other will need to be substantial if it is to be meaningful to the AS applicants. My concern is that we don’t know the maximum value of the bid credits, multiplier, etc. and haven’t defined any type of payback schedule so the value of the benefits could be large which increases the motivation for gaming. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Cheers,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Christa<o:p></o:p></p><p class=MsoNormal><span style='mso-fareast-language:EN-US'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span lang=EN-US>From:</span></b><span lang=EN-US> Gnso-newgtld-wg <gnso-newgtld-wg-bounces@icann.org> <b>On Behalf Of </b>Jeff Neuman<br><b>Sent:</b> December 1, 2020 6:12 AM<br><b>To:</b> gnso-newgtld-wg@icann.org<br><b>Subject:</b> [Gnso-newgtld-wg] Outstanding Final Questions on Applicant Support<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span lang=EN-US>All,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>This is the Second topical E-mail on outstanding questions being “put to the list.” The first was on Predictability. This one covers Applicant Support (Topic 17).<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Remember: We are down to the wire on this, so unless you have a VERY strong objection to these, we will put these into the document. If you do have a big issue with the responses to these (all of which were previously discussed and in emails over the past 1.5 months), please let us know ASAP. Only comments that provide the rationale for the objection with proposed replacement text to address the specific outstanding questions will now be considered.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Lets not let the perfect be the enemy of the good.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><ol style='margin-top:0cm' start=1 type=1><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level1 lfo3'><u><span lang=EN-US style='font-size:10.0pt;font-family:"Arial",sans-serif;color:black'>Define the “Middle Applicant”?</span></u><span lang=EN-US style='font-size:10.0pt;font-family:"Arial",sans-serif;color:black'> </span><span lang=EN-US><o:p></o:p></span></li><ol style='margin-top:0cm' start=1 type=a><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level2 lfo3'><span lang=EN-US style='font-size:12.0pt;color:black'>The GAC highlights the importance of the implementation work as noted in the final report, regarding <b>defining the “middle applicant” and drawing on expertise</b> to develop appropriate program outreach, education and application evaluation.</span><span lang=EN-US><o:p></o:p></span></li></ol></ol><p class=MsoListParagraph style='margin-left:72.0pt'><span lang=EN-US style='font-size:12.0pt'> </span><span lang=EN-US><o:p></o:p></span></p><ol style='margin-top:0cm' start=1 type=1><ol style='margin-top:0cm' start=2 type=a><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level2 lfo3'><span lang=EN-US style='font-size:12.0pt;color:black'>Our recommendation states: </span><i><span lang=EN-US style='font-size:12.0pt'>Outreach efforts should not only target the Global South, but also “middle applicants,” which are located in struggling regions that are further along in their development compared to underserved or underdeveloped regions. In addition, the evaluation criteria for Applicant Support must treat “middle applicants” similar to those currently set forth in Criteria #1, Section 4 (Operation in a developing economy) of the Financial Assistance Handbook.</span></i><span lang=EN-US><o:p></o:p></span></li></ol></ol><p class=MsoListParagraph><span lang=EN-US style='font-size:12.0pt'> </span><span lang=EN-US><o:p></o:p></span></p><ol style='margin-top:0cm' start=1 type=1><ol style='margin-top:0cm' start=3 type=a><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level2 lfo3'><span lang=EN-US style='font-size:12.0pt'>Recommendation: Rather than providing a definition of “middle applicants”, we can remove the term from the recommendation to state<span style='color:#70AD47'>: “Outreach efforts should not only target the Global South, but also <u>those located</u> in struggling regions that are further along in their development compared to underserved or underdeveloped regions. In addition, the evaluation criteria for Applicant Support must treat <u>those applicants</u> similar to those currently set forth in Criteria #1, Section 4 (Operation in a developing economy) of the Financial Assistance Handbook.</span></span><span lang=EN-US><o:p></o:p></span></li></ol></ol><p class=MsoListParagraph><span lang=EN-US style='font-size:12.0pt'> </span><span lang=EN-US><o:p></o:p></span></p><ol style='margin-top:0cm' start=2 type=1><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level1 lfo3'><u><span lang=EN-US style='font-size:12.0pt'>Gaming Bid Credits.</span></u><span lang=EN-US style='font-size:12.0pt'> The RySG stated that they have “<span style='color:black'>Significant concerns on how bid credits, multipliers, and other features may be used in other unintended ways beyond benefiting AS applicants, and how the risk of gaming can be mitigated.’</span></span><span lang=EN-US><o:p></o:p></span></li></ol><p class=MsoListParagraph><span lang=EN-US style='font-size:12.0pt'> </span><span lang=EN-US><o:p></o:p></span></p><ol style='margin-top:0cm' start=2 type=1><ol style='margin-top:0cm' start=1 type=a><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level2 lfo3'><span lang=EN-US style='font-size:12.0pt'>On the Applicant Support call we asked the Registries to provide more information on their concerns on how the credits could be gamed. No examples have been provided.</span><span lang=EN-US><o:p></o:p></span></li><li class=MsoListParagraph style='margin-left:0cm;mso-list:l3 level2 lfo3'><u><span lang=EN-US style='font-size:12.0pt'>Action Item:</span></u><span lang=EN-US style='font-size:12.0pt'> Please provide examples of the types of gaming that you are concerned about and any recommendations to handle those examples. <b>Note: If we do not get any examples, then our recommendations will stay as is.</b></span><span lang=EN-US><o:p></o:p></span></li></ol></ol><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US>Please have your comments (If any) by no later than 23:59:59 UTC on Thursday, December 3, 2020.</span></b><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Jeff & Cheryl<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Co-Chairs, SubPro PDP<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse'><tr><td width=192 valign=bottom style='width:144.3pt;border:none;border-top:solid #06175F 3.0pt;padding:0cm 5.4pt 0cm 5.4pt'><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:black;border:none windowtext 1.0pt;padding:0cm'><img width=178 height=81 style='width:1.8541in;height:.8437in' id="Picture_x0020_1" src="cid:image001.png@01D6CA4E.607BBC30"></span><o:p></o:p></p></td><td width=173 valign=bottom style='width:129.95pt;border:none;border-top:solid #06175F 3.0pt;padding:0cm 5.4pt 0cm 5.4pt'><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:#06175F'>Jeffrey J. Neuman</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:black'>Founder & CEO</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:#06175F'>JJN Solutions, LLC</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:black'>p: +1.202.549.5079</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:black'>E: </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><a href="mailto:jeff@jjnsolutions.com"><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1155CC'>jeff@jjnsolutions.com</span></a><o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial",sans-serif;color:black'><a href="http://jjnsolutions.com">http://jjnsolutions.com</a></span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p></td></tr></table><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p></div></body></html>