[Gnso-newgtld-wg] Auction of last resort "Option 2"

Mon May 4 17:46:12 UTC 2020

Hi group,

To clarify my suggestions that I made during the call to the “option 2”:

Option 2 as it is currently suggested:

*         The application submission window closes

*         ICANN reveals all strings – but not the identity of the applicants

*         Contention sets are identified by ICANN (but no string similarity objection etc. at this stage)

*         All members of contention sets are invited to submit their bid for a potential auction of last resort (if they don’t want to participate in such auction: the obviously do not have to bid)

*         The bids are “sealed”: nobody knows who or how much others have bit.

*         Thereafter everything continues pretty much like in 2012: Full reveal day, etc.

*         In the few cases that make an auction of last resort necessary: the bids are already in!

My suggestion of slight changes to Option 2:

*         We require all those who would like to join a potential “auction of last resort” to submit their auction bid prior to the end of the submission period. Obviously the bid is and remains “sealed”.

*         The “limited reveal” (of all strings) is then obsolete. We can directly move to the “proper” reveal day.

*         In case that we require an auction “deposit”:

o   Such deposit would obviously NOT have to be paid during the submission period

o   In fact it could be paid  precisely at the point of time it was required in 2012: about 2 weeks prior to any potential auction of last resort, and of course ONLY if you want to participate in said auction!

o   So during the application submission you could bid what you think would be feasible to obtain the TLD – it doesn’t cost you a dime. Only if ICANN calls the contention set members for an auction of last resort and you want to participate: you THEN need to come up with the required percentage of your bid (last time 10%). No difference to 2012 here.

o   Remember: The deposit is a penalty that ensures that nobody goes crazy during the auction. The deposit will only not be refunded in case you fail to come up with the amount due should you win the auction (usually the 2nd highest bid). Hence the deposit is mainly a way to keep the bidding “serious”.  Deposits will only be held for a short time: everybody gets it back after he auction.

*         Actually with my suggested “tweak” Option 2 would be almost identical to the 2012 procedure with the main difference that you submit your auction of last resort bid prior to the end of the submission period.

With the suggested tweak we solve most problems that Option 2 presents. The only caveat is that we force folks to decide about the “value” of their application(s) before they gain knowledge about the application roster. Singular applicants won’t have a problem with that. And the deposit situation is identical to 2012: due immediately prior to the auction only. The ones who get problems are portfolio applicants. And that is “by design”. 

Thanks,

Alexander

From: Gnso-newgtld-wg [mailto:gnso-newgtld-wg-bounces at icann.org] On Behalf Of Alexander Schubert
Sent: Saturday, May 02, 2020 1:13 AM
To: gnso-newgtld-wg at icann.org
Subject: Re: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Monday, 04 May at 15:00 UTC for 120 Minutes

Hi there,

Regarding the attached PDF “Auction discussion points”:

In Option 2 we have two reveals: one is revealing only the strings, the second the applicants as well. Prior to the reveal of applicants we establish the contention sets – and require contention set members to place an “auction of last resort” sealed bid.

My question is: How are the “contention sets” being established? 

*         Like in the 2012 round? 

*         Or “automatically”: only identical strings? 

If we strive to establish contention sets like in 2012 – we run into a big problem: that process took many years. Think “string similarity objection”. 

Thanks,

Alexander

From: Gnso-newgtld-wg [mailto:gnso-newgtld-wg-bounces at icann.org] On Behalf Of Julie Hedlund
Sent: Friday, May 01, 2020 10:09 PM
To: gnso-newgtld-wg at icann.org <mailto:gnso-newgtld-wg at icann.org> 
Subject: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Monday, 04 May at 15:00 UTC for 120 Minutes

Dear all,

Please find below the proposed agenda for the call on Monday, 04 May 2020 at 15:00 UTC for 120 minutes.

Proposed Agenda:

Note that for agenda item 2 below, for the purposes of stimulating discussion on the Private Resolution/Auctions: Mechanism of Last Resort topics, the WG Co-Chairs have taken what we believe to be the majority positions and converted them into the attached proposal. We understand that the substance remains under discussion, but after taking into account all of the comments, and the many deliberations of the Working Group, this proposal will hopefully represent something that WG members can all live with.

1.	Review Agenda/Updates to Statements of Interest
2.	Discussion of Final Report Topics: https://docs.google.com/document/d/1kUlmZH8nxWTgfcRluA5FxLheMm4XhhOwkRt7om52aQU/edit?usp=sharing -- 2.1 Auctions: Mechanisms of Last Resort & 2.2 Private Resolution of Contention Sets (including Private Auctions), page 1
3.	AOB

If you need a dial out or would like to submit an apology, please email gnso-secs at icann.org <mailto:gnso-secs at icann.org> .

Kind regards,

Julie

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mm.icann.org/pipermail/gnso-newgtld-wg/attachments/20200504/f3d77454/attachment-0001.html>