[Gnso-newgtld-wg] Proposed agenda - New gTLD Subsequent Procedures PDP WG - 8 October 2018 at 15:00 UTC

Tue Oct 9 16:10:58 UTC 2018

Many thanks Jeff 

Very helpful.

Liz

….
Dr Liz Williams | Internet Governance
M: +44 7824 877757 :: +61 436 020 595
W: www.lizwilliams.net
S:  lizwilliams1963

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> On 9 Oct 2018, at 5:08 pm, Jeff Neuman <jeff.neuman at comlaude.com> wrote:
> 
> Liz,
>  
> Please see responses below your questions in red.
>  
> Jeff Neuman
> Senior Vice President 
>  
> Com Laude | Valideus
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> From: Gnso-newgtld-wg <gnso-newgtld-wg-bounces at icann.org <mailto:gnso-newgtld-wg-bounces at icann.org>> On Behalf Of Liz Williams via Gnso-newgtld-wg
> Sent: Tuesday, October 9, 2018 6:54 AM
> To: Jon Nevett <jon at donuts.email <mailto:jon at donuts.email>>
> Cc: gnso-newgtld-wg at icann.org <mailto:gnso-newgtld-wg at icann.org>
> Subject: Re: [Gnso-newgtld-wg] Proposed agenda - New gTLD Subsequent Procedures PDP WG - 8 October 2018 at 15:00 UTC
>  
> Hello everyone
>  
> I was listening carefully to the conversation yesterday about the use of auctions (private or ICANN last resort) yesterday and thought it may be useful to consider a few other elements.
>  
> 1.  If there are no auctions, how does one objectively resolve contention sets? As we know, auctions are used widely to resolve "contention sets” for everything from Banksy artworks, racehorses and houses.  They are an effective and quick mechanism that demonstrates immediate clarity about who is a winner.   If we don’t have an auction option, we are left with a rather big mess to sort out because there will be contention again.
>  
> [Jeff] In Sections 1.1 and 1.2 of the draft Supplemental Initial Report (a new version to come out shortly), you will see that there are a number of mechanisms that are options.  Rather than engage in a new substantive dialogue on this issue now, please refer to the draft and let us know if there are additional questions that need to be added.
>  
> 2.  Are we being cautious because we weren’t/aren’t satisfied with the use of auction proceeds and that rather large amount of cash sitting on ICANN’s balance sheet?  Likely yes but that doesn’t mean that auctions are a bad thing.  It means we have to improve  the distribution for last resort auction proceeds.
>  
> [Jeff]  Though there is a reference in section 1.1 of the Supplemental Initial Report to the Cross Community Working Group on Auction Proceeds and wanting to see those recommendations before opining on future ICANN Auctions, most of Sections 1.1 and 1.2 on Auctions are not really aimed at being satisfied at the use of auction proceeds, but rather on the processes involved, the tendency to favor big players, the use of private auctions to fund other applications, etc.  Other than that, the distribution of funds is not really an issue we are considering in this group.
>  
> 3.  Are we worried about “big bucks squashing out smaller players”?  Again, likely yes but we don’t have a reasonable alternative that solves the issue of contention.  Some suggested that applicants “gamed” a contention set.  That was impossible until the reveal of potentially competing strings.  Should there be a reveal at all in the early stages?  Likely yes because we want to give applicants the option of opting out early in the process if they see who their competitors are and the likelihood of winning a bi/multi lateral negotiation or an auction.
>  
> [Jeff] One of the concerns expressed is consistent with your comments, but there are a number of other concerns that are listed in Supplemental Initial Report. In addition, there are also other options presented which we should not yet jump to the conclusion (prior to any public comment) that they are not “reasonable alternatives”. 
>  
> The group has not discussed the possibility of “not revealing” the applications at the early stage.  In addition to the reason against not disclosing applications that you indicate, if we did not reveal the strings or the applicants, then objecting or filing disputes, along with public comments would not be possible.
>  
> 4.  Some have suggested that some applicants “profited” from auctions.  Yes, that is the nature of auctions.  But what wasn’t anticipated that “losing” at auction became a windfall of operating cash for some applicants and were, in some cases, the only way an applicant recouped any of the investment in their application.   Not sure how we deal with this or if we should even be concerned about it as long as applicants know what they are in for at the beginning of the process.
>  
> [Jeff]  The purpose of putting these alternatives out for comment in the Supplemental Initial Report is to test whether the community is concerned and whether or not there are alternatives to the use of private auctions / private resolution.  We will have much more information after the public comment period to determine whether there are concerns or not and how we can reasonably deal with the concerns (if any).
>  
> Looking forward to hearing other’s views.
>  
> Liz
> 
> ….
> Dr Liz Williams | Internet Governance
> M: +44 7824 877757 :: +61 436 020 595
> W: www.lizwilliams.net <http://www.lizwilliams.net/>
> S:  lizwilliams1963
>  
> Important Notice
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> 
> On 9 Oct 2018, at 4:56 am, Jon Nevett <jon at donuts.email <mailto:jon at donuts.email>> wrote:
>  
> <jnNew gTLD Subsequent Procedures Additional Topics_5Oct2018.docx>
>  

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