[Ws2-jurisdiction] [EXTERNAL] issues on applicable law

Greg Shatan gregshatanipc at gmail.com
Mon Sep 11 21:13:19 UTC 2017


It would be really helpful if some of the* registrars and gTLD registry
operators *in this group could provide their perspective on the issue of
choice of governing law and venue in ICANN contracts!  If need be, I will
send the request to the CCWG Plenary and/or the RrSG and RySG, but it makes
sense to start within the Subgroup.  I look forward to responses.

Greg

On Mon, Sep 11, 2017 at 4:59 PM, Mike Rodenbaugh <mike at rodenbaugh.com>
wrote:

> Note that ICANN already has assumed potential contractual liability in --
> at least -- every country of any Registry Operator, since no Registry
> Agreement requires any forum for dispute, nor choice of law.  So far, there
> has been no chaos, and afaik only two lawsuits by Registry Operators (both
> in the US - .Africa and Donuts).
>
> So, maybe it is best to leave it open in ICANN's contracts, allowing them
> to be sued (at least) in both the US and/or the RO's country.
>
>
> Mike Rodenbaugh
> RODENBAUGH LAW
> tel/fax:  +1.415.738.8087 <(415)%20738-8087>
> http://rodenbaugh.com
>
> On Mon, Sep 11, 2017 at 1:52 PM, Phil Corwin <psc at vlaw-dc.com> wrote:
>
>> Well put -- especially " ambiguity and uncertainty are the enemy of
>> accountability".
>>
>> Philip S. Corwin, Founding Principal
>> Virtualaw LLC
>> 1155 F Street, NW
>> Suite 1050
>> Washington, DC 20004
>> 202-559-8597/Direct
>> 202-559-8750/Fax
>> 202-255-6172/Cell
>>
>> Twitter: @VlawDC
>>
>> "Luck is the residue of design" -- Branch Rickey
>>
>>
>> -----Original Message-----
>> From: ws2-jurisdiction-bounces at icann.org [mailto:ws2-jurisdiction-bounc
>> es at icann.org] On Behalf Of Paul Rosenzweig
>> Sent: Monday, September 11, 2017 2:51 PM
>> To: 'Nigel Roberts'; ws2-jurisdiction at icann.org
>> Subject: Re: [Ws2-jurisdiction] [EXTERNAL] issues on applicable law
>>
>> All
>>
>> This is a fascinating discussion at any number of levels.
>>
>> I begin with the proposition that in general the parties to a contract
>> are free to choose the manner and forum within which to resolve any
>> disputes that might arise.  They may choose arbitration or litigation.
>> They may specify a venue and they may specify a choice of law.  I have even
>> seen cases in which they pre-specify the arbitrator by name.  We might say
>> that ICANN's choice not to choose (and the RAs agreement to that) is just
>> the nature of contracts.
>>
>> That, however, would be incomplete since, in this instance, ICANN
>> operates as a monopoly (technically a monopsony, but that's not really
>> relevant) and thus, RAs have essentially no negotiating power.  We may
>> infer from ICANNs choice that it views the current ambiguous state of
>> affairs as to its benefit.  But ambiguity and uncertainty are the enemy of
>> accountability and thus, I support the idea, generally, of pushing ICANN to
>> specify how and under what law disputes with it will be resolved.
>>
>> That then leads us to the hard question  -- which law?  We cannot
>> reasonably ask ICANN to assume potential liability under 190+ different
>> legal systems for contractual disputes.  And we cannot, from an
>> accountability perspective, want a world in which there are inconsistent
>> results and how a contract provision is enforced depends on whether the
>> suit is brought in Europe or in Asia.  That type of uncertainty is also the
>> enemy of accountability.  Thus, I disagree with the submission that the
>> presumption should be that the law of the registry apply to the agreement.
>> That way lies chaos.
>>
>> But we also cannot expect, at least not in this forum, to agree on which
>> law should apply.  It strikes me that the reasonable compromise answer is
>> for this subgroup and CCWG to recommend that ICANN develop a menu of
>> options for choice of law and choice of arbiter.  With a broad enough group
>> (of say 4-6) we might minimize divergence while allowing registries some
>> choice in how their contracts will be judged.
>>
>> Paul
>>
>> Paul Rosenzweig
>> paul.rosenzweig at redbranchconsulting.com
>> O: +1 (202) 547-0660
>> M: +1 (202) 329-9650
>> VOIP: +1 (202) 738-1739
>> www.redbranchconsulting.com
>> My PGP Key:
>> https://keys.mailvelope.com/pks/lookup?op=get&search=0x9A830097CA066684
>>
>> -----Original Message-----
>> From: ws2-jurisdiction-bounces at icann.org
>> [mailto:ws2-jurisdiction-bounces at icann.org] On Behalf Of Nigel Roberts
>> Sent: Monday, September 11, 2017 6:19 AM
>> To: ws2-jurisdiction at icann.org
>> Subject: Re: [Ws2-jurisdiction] [EXTERNAL] issues on applicable law
>>
>> I see no reason whatsoever to limit the forum. Admiralty/maritime cases
>> have a shopping list of jurisdictions that are well-versed in marine cases
>> which are (I think)
>>
>> New York
>> London
>> Cairo
>>
>> and maybe a couple of others.
>>
>> And the parties can choose.
>>
>> As ICANN is better placed to handle other fora, the other party should
>> have a free choice.
>>
>>
>> On 11/09/17 09:46, Raphaël BEAUREGARD-LACROIX wrote:
>> > Kavouss,
>> >
>> > I believe that was Becky was suggesting was an adaptation of
>> > applicable law according to pre-defined regions in the worldYou
>> >
>> > For example, all registries in Europe could enter into a RA whose
>> > governing law would be Dutch law while North American registries would
>> > have US law as governing law, and then the community could provide
>> > input on which governing law they would want to have on a regional
>> basis.
>> >
>> > The same could go with courts, as I and Eric mentioned as well.
>> >
>> > Obviously defining regions is somewhat arbitrary, but the community
>> > could also provide input on that.
>> >
>> > I still think that the RAs are drafted accoding to an American style
>> > and would be better served by California law governing, while there
>> > could be more flexibility on the choice of forum.
>> >
>> > Best,
>> >
>> > 2017-09-11 7:19 GMT+02:00 Schweighofer Erich
>> > <erich.schweighofer at univie.ac.at
>> <mailto:erich.schweighofer at univie.ac.at>>:
>> >
>> >     Dear all,
>> >
>> >     __ __
>> >
>> >     I would support Beck Burr. It makes good sense to recommand regional
>> >     arbitration courts that know the ICANN system and are established in
>> >     jurisdictions with only necessary interference in arbitation (e.g.
>> >     due process, transparency, rule of law).
>> >
>> >     __ __
>> >
>> >     Best,
>> >
>> >     Erich
>> >
>> >     __ __
>> >
>> >     *Von: *Kavouss Arasteh <mailto:kavouss.arasteh at gmail.com>
>> >     *Gesendet: *Montag, 11. September 2017 07:12
>> >     *An: *Burr, Becky <mailto:Becky.Burr at team.neustar>;
>> ws2-jurisdiction
>> >     <mailto:ws2-jurisdiction at icann.org>
>> >     *Betreff: *Re: [Ws2-jurisdiction] [EXTERNAL] issues on applicable
>> > law
>> >
>> >     __ __
>> >
>> >     Dear Beckie
>> >     Thanks for your views to which I totally disagree as a) thgere is no
>> >     regional jurisdiction and b) there is no agreed definition of
>> >     region. It is Strange that such a competent person like you taking
>> >     about Something which does  not  exist t and can not exist as region
>> >     is a term totally subjdective and can in no way be used for
>> jurisdiction
>> >     Kavouss
>> >
>> >     On Thu, Sep 7, 2017 at 1:55 PM, Burr, Becky via Ws2-jurisdiction
>> >     <ws2-jurisdiction at icann.org <mailto:ws2-jurisdiction at icann.org>>
>> wrote:
>> >
>> >         FWIW, punitive damages are not usually permitted in contract
>> >         disputes - I wonder why ICANN includes them at all.
>> >
>> >         Also, rather than requiring ICANN to agree to submit to the
>> >         jurisdiction of every country where it has a relationship with a
>> >         registry or registrar, is it worth considering regional
>> >         jurisdiction?  Contracts with European registries and registrars
>> >         could specify Swiss or Dutch or some other law, etc.?
>> >
>> >         *J. Beckwith Burr****
>> >         **Neustar, Inc.***/**Deputy General Counsel & Chief Privacy
>> Officer
>> >         1775 Pennsylvania Avenue NW DC 20006
>> >         *Office:***+1.202.533.2932  *Mobile:***+1.202.352.6367____
>> >
>> >
>> >         *Follow Neustar:*LinkedIn*/* Twitter
>> >         Reduceyour environmental footprint. Print only if necessary.
>> >         ____
>> >
>> >
>> ------------------------------------------------------------------------
>> >
>> >         The information contained in this email message is intended only
>> >         for the use of the recipient(s) named above and may contain
>> >         confidential and/or privileged information. If you are not the
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>> >         and any review, dissemination, distribution, or copying of this
>> >         message is strictly prohibited. If you have received this
>> >         communication in error, please notify us immediately and delete
>> >         the original message.____
>> >
>> >
>> >         From: <ws2-jurisdiction-bounces at icann.org
>> >         <mailto:ws2-jurisdiction-bounces at icann.org>> on behalf of
>> >         "Jorge.Cancio at bakom.admin.ch
>> >         <mailto:Jorge.Cancio at bakom.admin.ch>"
>> >         <Jorge.Cancio at bakom.admin.ch <mailto:Jorge.Cancio at bakom.adm
>> in.ch>>
>> >         Date: Wednesday, September 6, 2017 at 4:19 PM
>> >         To: "ws2-jurisdiction at icann.org
>> >         <mailto:ws2-jurisdiction at icann.org>" <
>> ws2-jurisdiction at icann.org
>> >         <mailto:ws2-jurisdiction at icann.org>>
>> >         Subject: [EXTERNAL] [Ws2-jurisdiction] issues on applicable
>> > law
>> >
>> >         Dear all,____
>> >
>> >         __ __
>> >
>> >         Here are, for your convenience, the two issues I have tried to
>> >         briefly explain during today's conference call, for your
>> >         consideration. ____
>> >
>> >         __ __
>> >
>> >         As said, the main thought is to reduce uncertainty, and clarify
>> >         that the parties to the registry agreements have an effective
>> >         freedom to choose the applicable law and to apply a principle of
>> >         subsidiarity that may reduce potential conflicts with the
>> >         national laws where they are based.____
>> >
>> >         __ __
>> >
>> >         ==____
>> >
>> >         __ __
>> >
>> >         1.    _Issue: _The law applicable to the Registry Agreement has
>> >         been identified as being the main issue: ____
>> >
>> >         __ __
>> >
>> >         The Registry Agreement contains no provision relative to the
>> >         choice of jurisdiction, the applicable law consequently not
>> >         being defined by the Agreement. ____
>> >
>> >         This creates great legal uncertainty and a potential issue as
>> >         regards the jurisdiction given that it would be the prerogative
>> >         of the arbitrators or the judges having jurisdiction -who could
>> >         come from a US Court- to determine what law governs the
>> >         relationship between ICANN and the registry. ____
>> >
>> >         Pursuant to the current business practice, the applicable law is
>> >         that of the party that provides the service in question, i.e.
>> >         ICANN, a priori. A registry should therefore expect the
>> >         potentially applicable law to be the law of the State of
>> >         California.____
>> >
>> >         The applicable law further determines the faculty of ICANN to
>> >         claim punitive or exemplary damages (i.e. under US law, damages
>> >         highly surpassing the damage actually suffered, in order to
>> >         punish a behavior), in the event the registry were to breach the
>> >         contract in a deliberate and repeated manner (section 5.2 of the
>> >         Registry Agreement.) This well-established institution of Common
>> >         Law is non-existent under Swiss law, which follows the principle
>> >         of compensation (damages are used to repair the damage but
>> >         cannot enrich the claimant,) and should be considered to be
>> >         contrary to public order. Were the Swiss law to apply to the
>> >         Agreement, such damages would not be granted. Following the
>> >         principles of the institutions typical to the Common Law
>> >         provided for in the Registry Agreement poses issues of
>> >         compatibility with other legal orders and suggests that
>> >         Californian law would -a priori- apply to the Registry
>> >         Agreement.____
>> >
>> >         __ __
>> >
>> >         _Possible solutions:_____
>> >
>> >         __ __
>> >
>> >         The applicable law should be determined on the basis of the
>> >         legitimate expectations which the parties may have in terms of
>> >         applicable law. It is understandable and appropriate that the
>> >         fundamental provisions or duties contained in the Registry
>> >         Agreement should apply equally to all registries around the
>> >         world and be therefore interpreted in a uniform way. ____
>> >
>> >         __ __
>> >
>> >         Beyond a few provisions and duties which are absolutely
>> >         fundamental, it would be judicious and consistent with a
>> >         legitimate expectation that the contractual relationship between
>> >         ICANN and a registry be subject to the national law of the
>> >         latter. The foregoing is all the more reasonable given that the
>> >         manager of a generic domain (TLD) is delegated broad powers, as
>> >         it is within its scope to establish the purpose of the domain,
>> >         the eligibility, or the terms of the assignment of domain names,
>> >         not to mention that it has great freedom as to the way in which
>> >         a domain is actually managed.____
>> >
>> >         __ __
>> >
>> >         There already exist special provisions for registries that are
>> >         IGO/Governmental entities (section 7.16 registry agreement): if
>> >         international law is at stake, there is a procedure (mediation
>> >         and arbitration ex 5.2.) to resolve disputes between the
>> >         registry and ICANN - this special provision could be
>> > extended:____
>> >
>> >         -           To other registries that are not IGOs/Public
>> >         authorities____
>> >
>> >         -           To cover not only "international law obligations"
>> >         but also national law obligations____
>> >
>> >         __ __
>> >
>> >         *___ ___*
>> >
>> >         2.    _Issue: __arbitration clause_______
>> >
>> >         ___ ___
>> >
>> >         With regard to territorial jurisdiction, the arbitration clause
>> >         (section 5.2 of the Registry Agreement entitled "Arbitration
>> >         text for intergovernmental organizations or governmental
>> >         entities") has allowed the ".swiss" registry to submit itself to
>> >         the arbitration of the International Court of Arbitration of the
>> >         International Chamber of Commerce in Geneva, Switzerland. This
>> >         provision also provides for some flexibilities restricted to
>> >         IGOs or governmental entities as regards the competent
>> > court.____
>> >
>> >         __ __
>> >
>> >         However these flexibilities are not open to all registry
>> >         operators. ____
>> >
>> >         __ __
>> >
>> >         _Possible solutions:_____
>> >
>> >         __ __
>> >
>> >         It would be wise in our opinion: ____
>> >
>> >         - to also allow private registries to decide on the choice of
>> >         their arbitration/competent court; ____
>> >
>> >         - to broaden the possibilities of choice for all registries (by
>> >         principle, to choose an arbitration recognized in each country.)
>> >         ____
>> >
>> >         __ __
>> >
>> >         __ __
>> >
>> >         ==____
>> >
>> >         __ __
>> >
>> >         Hope this may be considered.____
>> >
>> >         __ __
>> >
>> >         Regards____
>> >
>> >         __ __
>> >
>> >         Jorge ____
>> >
>> >          ____
>> >
>> >         __ __
>> >
>> >         __ __
>> >
>> >         __ __
>> >
>> >         *Jorge Cancio ____*
>> >
>> >         *__ __*
>> >
>> >         International Relations____
>> >
>> >         Federal Department of the Environment,
>> >         Transport, Energy and Communications DETEC ____
>> >
>> >         Federal Office of Communications OFCOM____
>> >
>> >         Zukunftstrasse 44, CH 2501 Biel ____
>> >
>> >         Tel. +41 58 460 54 58 <+41%2058%20460%2054%2058> (direct) ____
>> >
>> >         Tel. +41 32 327 55 11 <+41%2032%20327%2055%2011> (office) ____
>> >
>> >         Fax +41 58 460 54 66 <+41%2058%20460%2054%2066> ____
>> >
>> >         mailto: jorge.cancio at bakom.admin.ch
>> >         <mailto:mailto:%20jorge.cancio at bakom.admin.ch>____
>> >
>> >         www.bakom.admin.ch
>> >
>> <https://urldefense.proofpoint.com/v2/url?u=http-3A__www.
>> bakom.admin.ch_&d=D
>> wMFAg&c=MOptNlVtIETeDALC_lULrw&r=62cJFOifzm6X_GRlaq8Mo8TjDmr
>> xdYahOP8WDDkMr4k
>> &m=WCjv7z0Nza1tNJQJiHnGUpHMklTqTn52IfIOcBKzBtw&s=3nEqt43-
>> 48p3-o5fgYdwVLwTOmy
>> BSWh5nAGRz6Iegyo&e=
>> <https://urldefense.proofpoint.com/v2/url?u=http-3A__www.bakom.admin.ch_&d=DwMFAg&c=MOptNlVtIETeDALC_lULrw&r=62cJFOifzm6X_GRlaq8Mo8TjDmrxdYahOP8WDDkMr4k&m=WCjv7z0Nza1tNJQJiHnGUpHMklTqTn52IfIOcBKzBtw&s=3nEqt43-48p3-o5fgYdwVLwTOmyBSWh5nAGRz6Iegyo&e=>
>> >____
>> >
>> >         __ __
>> >
>> >         cid:image001.png at 01D2F585.7A604270____
>> >
>> >         __ __
>> >
>> >         Igf2017.swiss
>> >
>> <https://urldefense.proofpoint.com/v2/url?u=https-3A__
>> igf2017.swiss_&d=DwMFA
>> g&c=MOptNlVtIETeDALC_lULrw&r=62cJFOifzm6X_GRlaq8Mo8TjDmrxdYa
>> hOP8WDDkMr4k&m=W
>> Cjv7z0Nza1tNJQJiHnGUpHMklTqTn52IfIOcBKzBtw&s=0es-R80LxKqpCDN
>> cQ2Rk6O0ALSAJloN
>> eMjjkepYX-Qk&e=
>> <https://urldefense.proofpoint.com/v2/url?u=https-3A__igf2017.swiss_&d=DwMFAg&c=MOptNlVtIETeDALC_lULrw&r=62cJFOifzm6X_GRlaq8Mo8TjDmrxdYahOP8WDDkMr4k&m=WCjv7z0Nza1tNJQJiHnGUpHMklTqTn52IfIOcBKzBtw&s=0es-R80LxKqpCDNcQ2Rk6O0ALSAJloNeMjjkepYX-Qk&e=>
>> >____
>> >
>> >         info at igf2017.swiss <mailto:info at igf2017.swiss>____
>> >
>> >         __ __
>> >
>> >
>> >         _______________________________________________
>> >         Ws2-jurisdiction mailing list
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>> >         https://mm.icann.org/mailman/listinfo/ws2-jurisdiction
>> >         <https://mm.icann.org/mailman/listinfo/ws2-jurisdiction>
>> >
>> >
>> >
>> >     _______________________________________________
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>> >
>> >
>> >
>> > --
>> > Raphaël Beauregard-Lacroix
>> > LinkedIn
>> > <https://www.linkedin.com/in/rapha%C3%ABl-beauregard-lacroix-88733786/
>> > >-
>> > @rbl0012 <https://twitter.com/rbl0112> - M: +33 7 86 39 18 15
>> >
>> >
>> >
>> >
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