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<FONT face=Tahoma size=2><B>From:</B> Neuman, Jeff [] <BR><B>Sent:</B>
Wednesday, July 27, 2005 7:06 PM<BR><B>Subject:</B> RE: <BR></FONT></DIV>
<DIV></DIV>
<DIV class=Section1>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">All,<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">I would like to respond
to some of the items I have observed on the Council list and in particular the
comments by Philip and Marilyn. Again, please feel free to
post.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Let me first state that
none of us like the position we are in. As Bruce could probably tell
you, when the whole topic of Registry Services came up a year or so ago, I was
the one who submitted a draft process that was used as a model for the current
process proposed by the Council in the final report.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">That said, let me point
out a couple a facts.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<OL style="MARGIN-TOP: 0in" type=1>
<LI class=MsoNormal style="COLOR: navy; mso-list: l0 level1 lfo1"><FONT
face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">One of ICANN’s core missions is
the promotion of competition, including competition amongst registries.
It is my <U>personal</U> belief that adopting one set of procedures for some
registries and not others is a violation of that core mission.
<o:p></o:p></SPAN></FONT>
<LI class=MsoNormal style="COLOR: navy; mso-list: l0 level1 lfo1"><FONT
face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When looking at the .net
agreement, one needs to ask themselves, why did VeriSign put in a 3 year
restriction on changing the process? I will give you my theory and leave
it to you all to assess. Three years from now will be 2008. The
.com agreement comes up for renewal in 2007 (before the 2008 date). The
.com agreement clearly provides that any new agreement with VeriSign for .com
contain terms that “</SPAN></FONT><FONT face=Arial color=black><SPAN
style="COLOR: windowtext; FONT-FAMILY: Arial">shall be in substantial
conformity with the terms of registry agreements between ICANN and operators
of other open TLDs then in effect.”</SPAN></FONT><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> The words “then in effect” is
critical. At the time the .com agreement is renegotiated, the terms of
the .net agreement “then in effect” will be the process for new registry
services set forth in the .net agreement (despite whatever “consensus policy”
we all come up with). Although the ICANN staff could argue that all of
the other agreements other than .net must follow the consensus process, and
therefore the new .com agreement should reflect the consensus process, if I
were the attorney for VeriSign, I would make the legal argument that the .com
agreement could not contain any process other than what is set forth in .net.
This would set up yet another legal battle and as we all know, Verisign is not
afraid to sue the ICANN and waste a plethora of ICANN resources on and end up
with a settlement on the subject (one which again would ignore the conditions
applicable to other registries). I admit this is my theory and I would love a
written commitment by verisign that this is not the case and that they would
agree to abide with whatever the consensus policy is at the time, but somehow
I doubt that will happen.<o:p></o:p></SPAN></FONT>
<LI class=MsoNormal style="COLOR: navy; mso-list: l0 level1 lfo1"><FONT
face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">For several years now, we have
allowed ICANN staff to continually treat all of the registries other than
those controlled by the largest (some would argue monopoly) registry operator
more favorably than the other registries. As one example, the .com (and
now .net) agreement has a presumptive renewal clause, while .info, .biz, .org,
.pro, .name, .museum, .aero and .coop do not. A request to equalize
those terms was flatly rejected by the ICANN CEO. When asked why
VeriSign was allowed to have such a clause and the others were not, the
response was basically that VeriSign in 2001 had significant market power to
get that clause, while we did not. In addition, other terms and
conditions, involving different arbitration clauses, definitions of “Registry
Services”, etc. have also favored VeriSign.<o:p></o:p></SPAN></FONT>
<LI class=MsoNormal style="COLOR: navy; mso-list: l0 level1 lfo1"><FONT
face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">I challenge the ICANN staff to get
a written commitment from VeriSign that it will agree to change the current
.net Agreement and their future .com agreement to reflect the Consensus
process set forth in the proposed final report. If the ICANN staff is
able to get this signed written commitment from VeriSign, I will withdraw my
opposition of the recommendation.<o:p></o:p></SPAN></FONT> </LI></OL>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">None of us like the
situation we have been put in, but we cannot ignore it because we do not like
it. The ICANN regulatory regime is governed by contract whether we like it
or not. Our contract states that there will be no disparate treatment of
the .biz registry and we fully expect that ICANN honor its contractual
commitments to us just as we have continually honored our obligations to
them.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Please keep in mind
that the .net agreement is fully executed. It cannot change without the
express written consent of both VeriSign and ICANN no matter how much the
Council, the community or even the ICANN Board would like to change the
terms. Given this reality, we have no choice but to insist on being
treated equitably.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Jeff
Neuman<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">DISCLAIMER: Some
of the opinions expressed herein represent my own personal opinions and may not
necessarily be the opinion of NeuStar and/or
NeuLevel.<o:p></o:p></SPAN></FONT></P>
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