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<p>As others have noted - this makes a lot of sense. I very much
agree with the following:<br>
</p>
<i>So in my view it makes practical sense as well as analytical
sense (as performed by the CCWG) for the location issue to be out
of scope in WS2 other than as it relates, if at all, to settlement
of disputes.</i><i><br>
</i><br>
I also noted as such in my responses to Greg's e-mail of the 19th
entitled: [Ws2-jurisdiction] Items for CCWG-Plenary: (1) Place of
Incorporation<br>
<br>
Matthew<br>
<br>
<div class="moz-cite-prefix">On 24/09/2016 09:59, McAuley, David
wrote:<br>
</div>
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<div class="WordSection1">
<p class="MsoNormal">I would like to respond to Greg’s
suggestion in the call earlier this week. On the call we
discussed the meaning of gap analysis and its possible
implications. Greg asked if Pedro and I would separately note
on list the points we each had been attempting to make on the
call. What follows are my personal views.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The sub-team was addressing the phrase in
paragraph 30 of Annex 12 of the CCWG Final Report asking that
we give consideration to, “Confirming and assessing the gap
analysis, clarifying all concerns regarding the multi-layer
jurisdiction issue.” <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I was/am of the view that the concept of
“confirming” recognized that WS1 had in effect performed a gap
analysis – the potential gap being whether the accountability
measures that were proposed could or could not be applied to,
and ultimately enforced against, ICANN. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">For example, when we decided in WS1 that we
wanted the ability to remove board members we asked
Sidley/Adler if that was possible within the California form
we were analyzing - designator, not membership. If the answer
had been that we could not then a gap would have existed. If
it was that we could then we asked counsel to put the
provision into appropriate legal language.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">We did the same for all accountability
measures we wished to put in place, specifically revising the
ICANN Mission, enhancing the IRP, and giving the community
power/right to:<o:p></o:p></p>
<p class="MsoListParagraphCxSpFirst"><o:p> </o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Reject ICANN budgets,
IANA budgets, or strategic/operating plans;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Reject changes to
ICANN’s standard bylaws;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Approve changes to new
fundamental bylaws, Articles, and ICANN’s sale or disposition;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Remove a director;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Recall the entire
board;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Initiate binding IRP;<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Reject ICANN Board
decisions relating to reviews of the IANA functions, including
the triggering of Post-Transition IANA separation; and<o:p></o:p></p>
<p class="MsoListParagraphCxSpLast"
style="text-indent:-.25in;mso-list:l1 level1 lfo1">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Right of inspection,
investigation. <o:p></o:p></p>
<p class="MsoNormal">That, to me, was a gap analysis.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In fact, Annex 12, paragraph 26, noted that
WS1 might well have encountered gaps along the way – it
recognized the fact that California law does have limits with
respect to accountability mechanisms that might be imposed on
ICANN. It is that recognition in paragraph 26 that admits a
possible gap that we in the sub-team are meant to assess, as I
see it.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">It is also important to note that our remit
to confirm/assess the gap analysis is given to us with two
qualifiers in paragraph 30:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoListParagraphCxSpFirst"
style="text-indent:-.25in;mso-list:l0 level1 lfo2">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->First, that the main
issues that we need to investigate in WS2 “…relate to the
influence that ICANN´s existing jurisdiction may have on the
actual operation of policies and accountability mechanisms.
This refers primarily to the process for the settlement of
disputes within ICANN, involving the choice of jurisdiction
and of the applicable laws, but not
<u>necessarily </u>the location where ICANN is incorporated:”
(emphasis added) and<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle"><o:p> </o:p></p>
<p class="MsoListParagraphCxSpLast"
style="text-indent:-.25in;mso-list:l0 level1 lfo2">
<!--[if !supportLists]--><span style="font-family:Symbol"><span
style="mso-list:Ignore">·<span style="font:7.0pt
"Times New Roman"">
</span></span></span><!--[endif]-->Second, our
consideration in WS2 “will focus on the settlement of dispute
jurisdiction issues and include…” the act of
confirming/assessing the gap analysis that we are engaged in,
along with identifying potential alternatives.
<o:p></o:p></p>
<p class="MsoNormal">I underscored the word “necessarily” in the
first qualifier above because it appears consistent with the
notion of being contingent – on us closing any potential gap.
Our sub-team job is relatively straightforward: have we (WS1)
managed to avoid or close such gaps; in other words, are the
accountability mechanisms we chose applicable and enforceable?
If we have succeeded then I submit that our work is limited to
analyzing jurisdiction only insofar as it relates to
settlement of disputes.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">And that is why our remit to “identify”
potential alternatives, also bounded by the two qualifiers, is
to examine potential alternatives with our focus being on
settlement of dispute jurisdiction.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">During the call, Jorge listed in the chat
certain portions from the CCWG Second Report mentioning gap
analysis (addressing such things as ability to sue/be sued to
enforce bylaws and other accountability mechanisms;
binding-ness of IRP decisions, and more) and which called for
more analysis. I believe that further analysis was done and
reflected in the Final Report, which gave us the language we
are now addressing.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">It is important to look at the sub-team
work in context. In my view, incorporation in California has
one distinct advantage over other locations as concerns ICANN
– for over 18 years it has worked. It would be imprudent to
consider a location change absent a material problem stemming
from jurisdiction that is incapable of resolution.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Moreover, consideration of an alternative
for ICANN’s location would entail, per jurisdiction
considered, roughly the same investment in time and lawyers’
attention that WS1 expended on legal fees. If this sub-team
intends to go down that path, something I recommend against,
then we need to make sure that we have budget to support such
efforts.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">So in my view it makes practical sense as
well as analytical sense (as performed by the CCWG) for the
location issue to be out of scope in WS2 other than as it
relates, if at all, to settlement of disputes. As Göran Marby
said in last week’s hearing , ICANN is committed to remaining
domiciled in the US, where it has operated successfully and,
among other things, put in place thousands of contracts.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">David<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">David McAuley<o:p></o:p></p>
<p class="MsoNormal">International Policy Manager<o:p></o:p></p>
<p class="MsoNormal">Verisign Inc.<o:p></o:p></p>
<p class="MsoNormal">703-948-4154<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
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</pre>
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<br>
<pre class="moz-signature" cols="72">--
--------------
Matthew Shears
Global Internet Policy and Human Rights
Center for Democracy & Technology (CDT)
+ 44 771 2472987</pre>
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