[Gnso-newgtld-wg] proposed Language for those Getting Applicant Support

Mon Jun 8 20:17:37 UTC 2020

Good evening:

I have several concerns, not least that we have so little data about successful ASP applications that we are navigating blind.

1.  The sole ASP discount on the application fee is such a minor element in the total investment cost of launching a new gTLD that I doubt that ASP alone creates sufficient leverage to influence the applicant's behaviour one way or another.

2. I have recommended several times that ICANN staff investigate and promote third party financing of ASP beneficiaries. I trust that is being done.

3. In the event that an ASP applicant is successful on the basis, also, of third party funding, then it should be absolutely out of the question to expose the parties to an 'auction'. That might be perceived as ICANN-esque institutional sabotage of the project. Not a good look.

Thus, until these issues have been addressed and resolved I have no further comments and reserve my position entirely.

Best regards to you all

CW

El 8 de junio de 2020 a las 20:43 Jeff Neuman <jeff.neuman at comlaude.com> escribió:

> 
>     All,
> 
>      
> 
>     On the call today, Susan raised a good point about applicants that get Applicant Support trying to “game the system” by immediately flipping their registries to a third party to make a profit.  Although we would hope that those that take the time to go through the Applicant Support Program (ASP) and get approved would alone demonstrate that this is unlikely to happen.  The process to get support is supposed to be vigorous and try to root out potential gaming.  That said, I worked with Susan to draft the following language.  Would this be acceptable as a Recommendation?
> 
>      
> 
>     “If the Applicant getting Applicant Support prevails in an auction, there should be restrictions placed on the Applicant from assigning the Registry Agreement, and/or from any Change of Control for a period of no less than five (5) years.  This restriction is in place to prevent gaming of the applicant support program whereby an applicant immediately transfers its ownership of a registry to a third party in exchange for any form of financial gain.  However, legitimate assignments (e.g., changing of ownership due to death or retirement, etc., assignments to subsidiaries, etc.).  All assignments must have ICANN's consent, which consent may be reasonably withheld. In the event of a change of control after the first five (5) years but during the remaining first term of the registry agreement, the applicant should be required to repay the financial support that they received.”
> 
>      
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>     Note:  We would add this to Agreements for all that get Applicant Support, not just those that prevail at an auction (with the multiplier or other form of bid credit).
> 
>      
> 
>     Discuss………..
> 
>      
> 
>     Jeff Neuman
> 
>     Senior Vice President 
> 
>      
> 
>     Com Laude | Valideus
>     1751 Pinnacle Drive
> 
>     Suite 600, McLean
> 
>     VA 22102, USA
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>     M: +1.202.549.5079
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>     D: +1.703.635.7514
> 
>     E: jeff.neuman at comlaude.com mailto:jeff.neuman at comlaude.com
>     www.comlaude.com http://www.comlaude.com/
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> 
>      
> 
> 
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