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    Monetary "penalties" on registrants, and any recovery of costs
    beyond the arbitration itself, are beyond the scope of URS, UDRP, or
    indeed any ICANN policy. Those are matters for national courts.
    Aside from being a vast expansion of these dispute resolution
    policies, what Georges proposes is unworkable in practice. How would
    "penalties" and second- and third-order costs be collected from
    registrants? Would registrars have to sue their customers to collect
    these funds on behalf of trademark holders? Or would every
    registrant have to submit to potentially unbounded contractual
    liability to unknown third parties as a condition of registration?<br>
    <br>
    Establishing a workable fee structure for URS (and UDRP)
    arbitrations is one thing. Expanding these policies to become
    systems for punishment of bad actors and broadly defined cost
    recovery is quite another—that's the domain of courts and trademark
    law, not ICANN policies.<br>
    <br>
    <pre class="moz-signature" cols="72">Mitch Stoltz
Senior Staff Attorney, EFF | 415-436-9333 x142
<a class="moz-txt-link-freetext" href="https://www.eff.org/donate">https://www.eff.org/donate</a> | <a class="moz-txt-link-freetext" href="https://act.eff.org/">https://act.eff.org/</a> 
</pre>
    <div class="moz-cite-prefix">On 9/5/18 2:55 PM, Paul Tattersfield
      wrote:<br>
    </div>
    <blockquote type="cite"
cite="mid:CAF5NKX5RKkneH=4ekfqjR3f-NcVaNypHzHuhjWS4TV3NwFZegg@mail.gmail.com">
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        <div dir="ltr">Georges I tend to agree....<br>
          <br>
        </div>
        <div>If this is going to be considered further then I think we
          need to look at <br>
          <br>
        </div>
        <div dir="ltr">1) if some registrars are suffering a
          disproportionate amount of costs in proportion to the total
          number of domains they have under management? and<br>
          <br>
          2) if there any is correlation between the age of the domain
          and the number of complaints?<br>
        </div>
      </div>
      <br>
      <div class="gmail_quote">
        <div dir="ltr">On Wed, Sep 5, 2018 at 8:31 PM Nahitchevansky,
          Georges <<a href="mailto:ghn@kilpatricktownsend.com"
            moz-do-not-send="true">ghn@kilpatricktownsend.com</a>>
          wrote:<br>
        </div>
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              <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1f497d">Will
                  this not raise the cost of URS and UDRP proceedings. 
                  If so, who pays that?  The problem is that what is
                  being proposed is just another cost shifting.  The
                  basic cost issue arises from the fact that there
                  exists a sub-group of bad actor domain name
                  registrants who register infringing domain names at a
                  fairly low cost and use such in often nefarious ways
                  (including in deceiving and defrauding consumers),
                  which then forces brand owners to expend large amounts
                  of money to enforce and protect their rights (staff
                  time, investigator and attorney’s fees, filing fees,
                  responding at times to government agencies, post URS
                  and UDRP fees to secure a suspension or a transfer of
                  a domain name etc.).  All of this is further
                  complicated by the GDRP, which just adds more costs. 
                  So the question in regards to registrar and registry
                  costs ignores the question about the brand owner
                  costs?  Typically the view espoused is that
                  enforcement is part of the brand owners cost of doing
                  business, so the question is why isn’t this cost to
                  registrar and registries not the cost of doing
                  business. Registrars and registries, after all,
                  basically promote the registration (sale) of domain
                  names for profit (registration of domain names is the
                  service/ product being sold, just like a brand owner
                  sells a product or service).  Registrar and registries
                  are not akin to a provider such as WIPO or NAF.  If we
                  start going down the path of costs, what about the
                  added costs that result when registrars, for example,
                  promote the sales of infringing domain names or
                  unnecessarily complicate transfers of domains names
                  after a successful UDRP, or otherwise act in other
                  ways that are prejudicial to the brand owner
                  constituency.  Perhaps what should be looked at in a
                  more focused way is the sub-group of domain name
                  registrants that engage in actual and clear
                  cybersquatting and then figuring out some meaningful
                  penalty that can compensate everyone who bears a cost
                  (i.e., brand owners, providers, registrars and
                  registrants).  It just seems that cost shifting
                  arguments miss the point that someone can waltz in,
                  register an infringing domain name for often less than
                  $20 USD and create significantly higher costs for a
                  number of parties that in the aggregate are quite
                  significant.  My point here is that yes there are
                  costs, but they should not fall disproportionately on
                  one constituency.  So if we start going down this
                  path, then we should look at everyone’s costs and
                  discuss what is fair and appropriate, as well as what
                  penalties should be placed on bad actors. </span></p>
              <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1f497d"> </span></p>
              <p class="MsoNormal"><span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:gray"><br>
                  <br>
                </span><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1f497d"></span></p>
              <p class="MsoNormal"><b><span
                    style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif">
                  gnso-rpm-wg <<a
                    href="mailto:gnso-rpm-wg-bounces@icann.org"
                    target="_blank" moz-do-not-send="true">gnso-rpm-wg-bounces@icann.org</a>>
                  <b>On Behalf Of </b>Jonathan Frost<br>
                  <b>Sent:</b> Wednesday, September 5, 2018 2:39 PM<br>
                  <b>To:</b> <a class="moz-txt-link-abbreviated" href="mailto:Doug@giga.law">Doug@giga.law</a><br>
                  <b>Cc:</b> gnso-rpm-wg <<a
                    href="mailto:gnso-rpm-wg@icann.org" target="_blank"
                    moz-do-not-send="true">gnso-rpm-wg@icann.org</a>><br>
                  <b>Subject:</b> Re: [gnso-rpm-wg] URS / UDRP proposals
                  -- data on registrar/registry compliance costs</span></p>
              <p class="MsoNormal"> </p>
              <div>
                <p class="MsoNormal">I agree that it's not an issue that
                  will arise with frequency, however these types of
                  issues do arise, they do create costs for the
                  Registries/Registrars.  In fact, like George pointed
                  out, it arises when a TM Holder prevails in URS, then
                  decides that it actually wants possession of the
                  domain, and subsequently files a UDRP.</p>
                <div>
                  <p class="MsoNormal"> </p>
                </div>
                <div>
                  <p class="MsoNormal">My main point was that, in
                    addition to the day to day time commitments, there
                    are unpredictable legal costs associated with the
                    administration of URS/UDRP (in part because rule
                    sets laws or contracts cannot cover all scenarios
                    without being inefficiently burdensome).  </p>
                </div>
                <div>
                  <p class="MsoNormal"> </p>
                </div>
                <div>
                  <p class="MsoNormal">That's why it makes sense for
                    there to be a cost-recovery mechanism, so that the
                    Registries/Registrars can be compensated costs
                    related to administration overhead in the same way
                    that NAF/WIPO are compensated.</p>
                </div>
                <div>
                  <p class="MsoNormal"> </p>
                </div>
                <div>
                  <p class="MsoNormal">Jonathan</p>
                </div>
              </div>
              <p class="MsoNormal"> </p>
              <div>
                <div>
                  <p class="MsoNormal">On Wed, Sep 5, 2018 at 2:19 PM
                    Doug Isenberg <<a href="mailto:Doug@giga.law"
                      target="_blank" moz-do-not-send="true">Doug@giga.law</a>>
                    wrote:</p>
                </div>
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                    <div>
                      <p class="MsoNormal">Thanks, Jonathan, this seems
                        like a very discrete issue that is unlikely to
                        arise with any frequency.  (Actually, now that I
                        reread your email, I’m not even sure what a
                        “lifetime lock” is in the context of a URS
                        proceeding – can you explain?)  I’d love to know
                        of any real-life disputes that fit the situation
                        you’ve described.</p>
                      <p class="MsoNormal"> </p>
                      <p class="MsoNormal">Doug</p>
                      <p class="MsoNormal"> </p>
                      <p class="MsoNormal"> </p>
                      <p class="MsoNormal"><b>From:</b> Jonathan Frost
                        <<a href="mailto:jonathan@get.club"
                          target="_blank" moz-do-not-send="true">jonathan@get.club</a>>
                        <br>
                        <b>Sent:</b> Wednesday, September 5, 2018 1:59
                        PM<br>
                        <b>To:</b> <a href="mailto:Doug@giga.law"
                          target="_blank" moz-do-not-send="true">Doug@giga.law</a><br>
                        <b>Cc:</b> gnso-rpm-wg <<a
                          href="mailto:gnso-rpm-wg@icann.org"
                          target="_blank" moz-do-not-send="true">gnso-rpm-wg@icann.org</a>><br>
                        <b>Subject:</b> Re: [gnso-rpm-wg] URS / UDRP
                        proposals -- data on registrar/registry
                        compliance costs</p>
                      <p class="MsoNormal"> </p>
                      <div>
                        <p class="MsoNormal">For instance, there is
                          ambiguity about what action a registry should
                          take when a domain which is already the
                          subject of a URS judgement & lifetime lock
                          receives a UDPR judgement that requires unlock
                          & transfer.  The URS rules don't account
                          for this situation, and by their letter,
                          require that the domain not be unlocked. 
                          However, the registries are also required to
                          comply with consensus policies (such as UDRP).</p>
                        <div>
                          <p class="MsoNormal"> </p>
                        </div>
                        <div>
                          <p class="MsoNormal">Jonathan</p>
                        </div>
                      </div>
                      <p class="MsoNormal"> </p>
                      <div>
                        <div>
                          <p class="MsoNormal">On Wed, Sep 5, 2018 at
                            1:47 PM Doug Isenberg <<a
                              href="mailto:Doug@giga.law"
                              target="_blank" moz-do-not-send="true">Doug@giga.law</a>>
                            wrote:</p>
                        </div>
                        <blockquote style="border:none;border-left:solid
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                            <div>
                              <p class="MsoNormal">What are some of the
                                “ambiguities in complying with the
                                rules”?</p>
                              <p class="MsoNormal"> </p>
                              <p class="MsoNormal">Doug</p>
                              <p class="MsoNormal"> </p>
                              <p class="MsoNormal"> </p>
                              <p class="MsoNormal"><b>From:</b>
                                gnso-rpm-wg <<a
                                  href="mailto:gnso-rpm-wg-bounces@icann.org"
                                  target="_blank" moz-do-not-send="true">gnso-rpm-wg-bounces@icann.org</a>>
                                <b>On Behalf Of </b>Jonathan Frost<br>
                                <b>Sent:</b> Wednesday, September 5,
                                2018 1:15 PM<br>
                                <b>To:</b> <a
                                  href="mailto:icann@leap.com"
                                  target="_blank" moz-do-not-send="true">icann@leap.com</a><br>
                                <b>Cc:</b> gnso-rpm-wg <<a
                                  href="mailto:gnso-rpm-wg@icann.org"
                                  target="_blank" moz-do-not-send="true">gnso-rpm-wg@icann.org</a>><br>
                                <b>Subject:</b> Re: [gnso-rpm-wg] URS /
                                UDRP proposals -- data on
                                registrar/registry compliance costs</p>
                              <p class="MsoNormal"> </p>
                              <div>
                                <div>
                                  <p class="MsoNormal">I agree that
                                    Registries and Registrars need to be
                                    able to recover the cost of
                                    administering the URS/UDRPs, as part
                                    of the filing fee.    </p>
                                </div>
                                <div>
                                  <p class="MsoNormal"> </p>
                                </div>
                                <div>
                                  <p class="MsoNormal">The costs that
                                    the Registries/Registrars bear
                                    actually goes beyond what Reg has
                                    said.  There are situations where we
                                    have to go to outside counsel or
                                    even ICANN to resolve ambiguities in
                                    complying with the rules.   
                                    Additionally, the 24 hour action
                                    requirement on locking a domain that
                                    has received a URS complaint
                                    actually increases the resources
                                    that have to be dedicated, beyond
                                    the actual number of minutes per
                                    complaint, because compliance
                                    personal has to allocate/reserve a
                                    certain time per day to perform the
                                    tasks, even if no complaint is
                                    received that day.</p>
                                </div>
                                <div>
                                  <p class="MsoNormal"> </p>
                                </div>
                                <div>
                                  <p class="MsoNormal">Just like the
                                    arbitration administrators charge a
                                    cost recovery fee for administration
                                    as part of the filing fee, it's just
                                    common since that the
                                    Registries/Registrars would too.  </p>
                                </div>
                                <div>
                                  <p class="MsoNormal"> </p>
                                </div>
                                <div>
                                  <p class="MsoNormal">Jonathan Frost</p>
                                </div>
                              </div>
                            </div>
                          </div>
                          <p class="MsoNormal">_______________________________________________<br>
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                        </blockquote>
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                  <p class="MsoNormal">_______________________________________________<br>
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                </blockquote>
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      <pre wrap="">_______________________________________________
gnso-rpm-wg mailing list
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