[Gnso-newgtld-wg] Auction of last resort and Private Resolutions

Mon Jun 29 22:59:18 UTC 2020

Hi Jim all

For clarity. I did provide a tweak to the Vickery model, but I also said that private resolution, including private auctions, should still be on the table. I’ve included the relevant email.

Thanks

Donna

From: Gnso-newgtld-wg [mailto:gnso-newgtld-wg-bounces at icann.org] On Behalf Of Jim Prendergast
Sent: Monday, June 29, 2020 7:01 AM
To: Jean Guillon <jean at guillon.com>; Pruis, Elaine <epruis at verisign.com>
Cc: gnso-newgtld-wg at icann.org
Subject: Re: [Gnso-newgtld-wg] Auction of last resort and Private Resolutions

After all is said and done - the Vickery auction is the most elegant solution.

It results in far fewer required evaluations, allowing greater refunds to more applicants.  If you are the 3rd or lower bidder for a string, you don’t have to pay of a useless evaluation of an application that will not proceed.
It eliminates possibility of collusion between applicants in contention sets and eliminates the concerns about what may or may not happen with JVs.
Treats every TLD as its own asset and doesn’t provide any advantage to large portfolio applicants over single string applicants.
It’s clean, fast and in almost every case, can be settled in weeks, not years.

Are there corner cases that will require an adjustment for community and other one off scenarios with objections?  Yes – but for 95+% of applicants in a contention set, it just works.

Unless of course you are in this process to make $$$ from losing auctions, whether to walk away or roll it into other auctions.  But making life easier or more efficient for those applicants is not the purpose of this program.

Fair and transparent distribution of critical internet infrastructure is.

We had really good discussions about this months ago, including a tweak from Donna on Vickery that seemed to have broad support, including from me.  I’m not sure how we are back at this again.

Jim Prendergast
The Galway Strategy Group
+1 202-285-3699

From: Gnso-newgtld-wg <gnso-newgtld-wg-bounces at icann.org<mailto:gnso-newgtld-wg-bounces at icann.org>> On Behalf Of Jean Guillon
Sent: Sunday, June 28, 2020 4:30 PM
To: Pruis, Elaine <epruis at verisign.com<mailto:epruis at verisign.com>>
Cc: gnso-newgtld-wg at icann.org<mailto:gnso-newgtld-wg at icann.org>
Subject: Re: [Gnso-newgtld-wg] Auction of last resort and Private Resolutions

I read things such as :"a “key person” whose expertise is desirable  and who serves on the Board or the Advisory Board at a certain consulting fee" and

"the possibility of the “losing” applicant being required to pay a fee into an Applicant Support fund upon withdrawal of its application"
These are good ideas but from an applicant perspective it complexifies greatly the application procedure.

I don't think that applicants should have to deal with more complex (and costly) procedures that only Icann insiders are able to explain.

The only thing missing in the next guidebook is a clear and simplified procedure for .BRANDs

The next AGB should be more simple, not more complex.

Jean Guillon

Le dim. 28 juin 2020 à 20:47, Pruis, Elaine via Gnso-newgtld-wg <gnso-newgtld-wg at icann.org<mailto:gnso-newgtld-wg at icann.org>> a écrit :
Hi,
The “auction of last resort” in 2012 was aptly named. Private resolution was encouraged. ICANN auctions were the very last possible remedy for contention sets. So it’s not surprising that 90% of contention sets were resolved privately. That was intentional.
Keeping the option for private resolutions is reasonable- it’s the gaming and buyouts we’ve been asked by the board to try to prevent.
If we want to avoid any of it, let’s do the Vickrey auction - put in a sealed bid with your application. Parties can try to make whatever deals they want after the TLD is delegated.  This eliminates horse trading or gaming or disadvantaging single applicants by paying portfolio applicants to lose.
Elaine

On Jun 26, 2020, at 11:32 AM, Aikman-Scalese, Anne <AAikman at lrrc.com<mailto:AAikman at lrrc.com>> wrote:

Dear WG Members,
Re: private resolution of contention sets, I just wanted to mention again (as I did in chat on the last call) that apparently 90% of string contention sets were resolved before auction of last resort in the 2012 round.  (My source for this is the CCWG Auction Proceeds group so let me know if you disagree on this statistic.)  This means private resolution is by far “the rule” in resolving string contention.

It seems to me that promoting “joint ventures” of 2 or more applicants for the string will very easily result in “buy-outs” and “horse trading”.  An applicant who really wants to win will need only to structure a revised “change request” application in which (a) the other party becomes a “silent partner” or (b) is named a “key person” whose expertise is desirable  and who serves on the Board or the Advisory Board at a certain consulting fee.  The “silent partner” and/or Advisory Board member agrees in exchange to withdraw the competing application.  We should be thinking of ways to address this.  I had suggested the possibility of the “losing” applicant being required to pay a fee into an Applicant Support fund upon withdrawal of its application if it (or one of its principals) participates in the so-called “joint venture” revised application.

Separately, loose references to the organizational structure known as Joint Venture are probably ill-advised.  That form of corporate structure is rarely pursued in this day owing to the high degree of risk of liability taken on by each joint venturer for the acts or omissions of the other joint venturer(s).  Whatever we recommend as a matter of policy, it might be better to adopt some sort of neutral terminology such as “ revised business combination applicant” terminology.
Anne

Anne E. Aikman-Scalese
Of Counsel
520.629.4428 office
520.879.4725 fax
AAikman at lrrc.com<mailto:AAikman at lrrc.com>
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Subject: Re: [Gnso-newgtld-wg] Donna Austin Proposal and Paul McGrady Question re: Sealed Bid Auction
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