[Gnso-newgtld-wg] String Contention Proposal

Wed Oct 23 19:32:08 UTC 2019

Mike - It’s definitely about avoiding a secondary market in TLDs on a “buy low, sell high” basis.  The prices for TLDs will come down – especially for “cookie cutter” applications listing only pre-approved services.  The policy being made now will affect how this goes into the distant future.  Right now there is plenty of speculation/secondary market making in domain names at the second level.  Many registrars are fully engaged in that business.  When application fees come down, there is a danger that this practice will spread to TLDs themselves.

Kristine – my hypo assumed that financial and technical evaluation would proceed on applications in the regular schedule, especially since there may be pre-qualified RSPs etc.  I was definitely trying to avoid triggering a deadline to file Objections on applications that “lose” the bid (or lose out after private resolution of a contention set) because that would mean numerous wasteful Objection filings.  In other words, the Objection deadline should only be triggered when the winner is identified.  If the Objection succeeds and is upheld on appeal, then move on to the next highest bidder and trigger the Objection deadline as to that bidder.  It doesn’t make sense for Sam’s Club to file four LROs in the case of string contention where there will ultimately be only be one winner.

Trademark holders (and other Objectors) shouldn’t have to file against every string in the contention set .  That wastes everyone’s resources.  And depending on the purpose of the TLD, an LRO may not be justified on grounds of likelihood of confusion.   In this regard, I tried to give three examples that would be unlikely candidates for LRO, but in any case, it makes no sense to trigger Objection deadlines for strings that will never go beyond the initial valuation stage.  This was a flaw in the 2012 system.

Anne

From: Mike Rodenbaugh <mike at rodenbaugh.com>
Sent: Tuesday, October 22, 2019 5:27 PM
To: Dorrain, Kristine <dorraink at amazon.com>
Cc: Aikman-Scalese, Anne <AAikman at lrrc.com>; gnso-newgtld-wg at icann.org
Subject: Re: [Gnso-newgtld-wg] String Contention Proposal

[EXTERNAL]
________________________________
Thanks Kristine.  You refer to the purported problem as " to Avoid Speculation in TLDs."

I don't know how we mean to define "speculation" and whether that is a bad thing.  Until you define the thing it is you are trying to prevent, and why it is such a bad thing that we should try to prevent it, it is impossible to try to solve against it.

Mike Rodenbaugh
RODENBAUGH LAW
tel/fax:  +1.415.738.8087
http://rodenbaugh.law

On Tue, Oct 22, 2019 at 5:09 PM Dorrain, Kristine via Gnso-newgtld-wg <gnso-newgtld-wg at icann.org<mailto:gnso-newgtld-wg at icann.org>> wrote:
Hi Anne,

Donna clarified, and I seconded (but only to the extent that we’re entertaining ideas ahead of Kurt, and Mike ,and others’, entirely reasonable request for more clarity around the problem we’re solving for because I agree we’re all guessing), the idea that the bidding plays no role until the applicants are ready for an auction of last resort.

So, to my mind, it looks like this instead -

String Contention Proposal to Avoid Speculation in TLDs

4 applications for .sam  string – contention set and parties not revealed on application date.

Per Donna's suggestion, parties are all 4 notified of string contention and asked to submit sealed bids.  Sealed bids received.  (Some may drop out.)

Application 1 is a Community Application for .sam for the "Society for Aviation Maintenance".  All worldwide aviation maintenance unions back this application.  Public comment is sought.  At this point, the other applicants know there is a CPE application but their bids are already in.  Should private resolution be permitted at this point or not? Only if all four parties agree, but it’s looking good for applicant 1, so they’ll probably stick it out and take their chances with evaluation.

A. CPE Pass leads to Appeal.  If sustained, Application 1 wins.  If overturned, move to highest bidder and seek public comment on that application.  (It's still possible for this application to be the highest bidder even if it fails CPE.)  continue evaluating 3 non-Community applications.

B. CPE Fail leads to Appeal.  If overturned, Application 1 wins. If CPE Fail is sustained, move to highest bidder and seek public comment on that application. continue evaluating 3 non-Community applications

Application 2 for .sam Purpose: Dedicated to domains for those interested in the Samurai arts.

Application 3 for .sam Purpose: Free speech on the pros and cons of Uncle Sam (USG)

Application 4 for .sam Purpose: Retail sales (is Sam’s Club the applicant?).  Assume CPE for Application 1 fails and that Application 4 submitted the highest sealed bid.  Solicit public comment on Application 4 and the Objection deadline is triggered. And that all other applications pass initial evaluation.

  Sam's Club files Legal Rights Objection against the Application 4 winner.any or all of the other three applications until the appeals are concluded.

A.LRO Success leads to Appeal.  If successful LRO upheld on appeal, move to the next highest bidder not withdrawn, solicit public comment, and trigger Objection deadline.  If LRO success is overturned, Application 4 wins .sam.

B. LRO Failure leads to Appeal.  If failed LRO upheld on appeal, Application 4 wins .sam.  If failed LRO is overturned, move to the next highest bidder not withdrawn, solicit public comment, and trigger Objection deadline.

All surviving applicants have the opportunity to privately resolve their contention set.  If any applicant does not wish to privately resolve the contention set , then we move to the auction of last resort (or “instant resolution”).  ICANN opens the bids and awards the TLD to the highest bidding remaining application, who pays the amount bid by the remaining applicant  with the second highest bid.

From: Gnso-newgtld-wg <gnso-newgtld-wg-bounces at icann.org<mailto:gnso-newgtld-wg-bounces at icann.org>> On Behalf Of Aikman-Scalese, Anne
Sent: Tuesday, October 22, 2019 2:22 PM
To: gnso-newgtld-wg at icann.org<mailto:gnso-newgtld-wg at icann.org>
Subject: [Gnso-newgtld-wg] FW: String Contention Proposal

________________________________
Regarding Tuesday’s call (Monday night in the US), I am offering the following hypothetical based on Donna’s suggestion to collect sealed bids prior to a reveal of the contention set.

String Contention Proposal to Avoid Speculation in TLDs

4 applications for .sam  string – contention set and parties not revealed on application date.

Per Donna's suggestion, parties are all 4 notified of string contention and asked to submit sealed bids.  Sealed bids received.  (Some may drop out.)

Application 1 is a Community Application for .sam for the "Society for Aviation Maintenance".  All worldwide aviation maintenance unions back this application.  Public comment is sought.  At this point, the other applicants know there is a CPE application but their bids are already in.  Should private resolution be permitted at this point or not?

A. CPE Pass leads to Appeal.  If sustained, Application 1 wins.  If overturned, move to highest bidder and seek public comment on that application.  (It's still possible for this application to be the highest bidder even if it fails CPE.)

B. CPE Fail leads to Appeal.  If overturned, Application 1 wins. If CPE Fail is sustained, move to highest bidder and seek public comment on that application.

Application 2 for .sam Purpose: Dedicated to domains for those interested in the Samurai arts.

Application 3 for .sam Purpose: Free speech on the pros and cons of Uncle Sam (USG)

Application 4 for .sam Purpose: Retail sales.  Assume CPE for Application 1 fails and that Application 4 submitted the highest sealed bid.  Solicit public comment on Application 4 and the Objection deadline is triggered.

  Sam's Club files Legal Rights Objection against the Application 4 winner.

A.LRO Success leads to Appeal.  If successful LRO upheld on appeal, move to the next highest bidder not withdrawn, solicit public comment, and trigger Objection deadline.  If LRO success is overturned, Application 4 wins .sam.

B. LRO Failure leads to Appeal.  If failed LRO upheld on appeal, Application 4 wins .sam.  If failed LRO is overturned, move to the next highest bidder not withdrawn, solicit public comment, and trigger Objection deadline.

________________________________

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