<div dir="ltr"><div><div>it is amazing how much time and efforts human beings can spend in finding the stable platform to prove the things they do. Resulting in million dollars spent on legal, meetings, travel etc. :)<br></div>ICANN exists, it runs domains. Business practices established many years ago and world accepted it. I think this is a good explanation what ICANN is.<br><br></div>Yours, --andrei<br><br></div><div class="gmail_extra"><br><div class="gmail_quote">2017-05-01 9:06 GMT+03:00 Kan Kaili <span dir="ltr"><<a href="mailto:kankaili@gmail.com" target="_blank">kankaili@gmail.com</a>></span>:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><u></u>
<div bgcolor="#ffffff" text="#000000">
<div><font size="2" face="宋体">Hi,</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Thank you for your response and comment.</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Indeed, now ICANN is fully independent of the US
DOC, clearly defining ICANN's functions becomes even more important than
before. Otherwise, it may well become a trade association. This is
shown from GNSO's discussion of using surplus from the new gTLD program to
"promote awareness" of new G. That is, marketing for
registries/registrars.</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">In addition, now the overall environment is quite
different from a decade ago. At least, I believe the US Government would
not be against the idea of "regulator".</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Thus, I wonder if the At-Large community should again
begin to advocate ICANN as a "de facto regulator of the cyber
world".</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Thank you again.</font></div><span class="HOEnZb"><font color="#888888">
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Kaili</font></div></font></span><div><div class="h5">
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体"></font> </div>
<blockquote style="BORDER-LEFT:#000000 2px solid;PADDING-LEFT:5px;PADDING-RIGHT:0px;MARGIN-LEFT:5px;MARGIN-RIGHT:0px" dir="ltr">
<div style="FONT:9pt 宋体">----- Original Message ----- </div>
<div style="FONT:9pt 宋体;BACKGROUND:#e4e4e4"><b>From:</b>
<a title="jjs@dyalog.net" href="mailto:jjs@dyalog.net" target="_blank">JJS</a> </div>
<div style="FONT:9pt 宋体"><b>To:</b> <a title="kankaili@gmail.com" href="mailto:kankaili@gmail.com" target="_blank">KAN Kaili</a> </div>
<div style="FONT:9pt 宋体"><b>Cc:</b> <a title="ocl@gih.com" href="mailto:ocl@gih.com" target="_blank">Olivier CREPIN-LEBLOND</a> ; <a title="alac@atlarge-lists.icann.org" href="mailto:alac@atlarge-lists.icann.org" target="_blank">ALAC working list</a> </div>
<div style="FONT:9pt 宋体"><b>Sent:</b> Monday, May 01, 2017 1:19 PM</div>
<div style="FONT:9pt 宋体"><b>Subject:</b> Re: [ALAC] ICANN as a 501(c)(3)
Organisation</div>
<div><br></div>
<p dir="ltr">Kaili is quite right in pointing out the fundamental importance of
ICANN being truthfully described.</p>
<p dir="ltr">A decade ago, and less, this came up in Board discussions every now
and then, the majority swatting down anything suggestive of "regulation". The
closest we got to accurately naming ICANN's function was "quasi regulation",
but this expression was then redacted from reports. Among the arguments put
forward by opponents to such a designation, the fear of aggravating Washington
was uppermost. Who were we to dare question a tenet of Reagonomics and
Thatcherism, i.e. "Only self-regulation can lead to prosperity"? And never
mind if the 2008 financial meltdown proved that self-regulation had failed,
common wisdom would not accept the evidence.</p>
<p dir="ltr">This debate is not neutral, especially at a time when we see a
perilous convergence between some democracies and the régimes they used to
(rightly) criticize. When democracies resort to doctoring facts and smothering
free debate, the public interest is in peril.</p>
<p dir="ltr">This may be the right time to put forward, once again, the term
"quasi regulatory" to describe ICANN's main function. As in the time of
Copernic, calling out reality may not be without risk, but remains essential
for human development.</p>
<p dir="ltr">Jean-Jacques.<br><br><br></p>
<div class="gmail_quote">Le 1 mai 2017, à 03:29, Kan Kaili <<a href="mailto:kankaili@gmail.com" target="_blank">kankaili@gmail.com</a>> a
écrit:
<blockquote style="BORDER-LEFT:rgb(204,204,204) 1px solid;MARGIN:0pt 0pt 0pt 0.8ex;PADDING-LEFT:1ex" class="gmail_quote">
<div><font size="2" face="宋体">Hi,</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">As ICANN CEO visited China last week, I raised a
question during the meeting: Exactly what is ICANN?</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">According to what ICANN does, it is a de facto
REGULATOR serving the public interest by regulating the DNS
industry. </font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">However, he flatly denied that, saying ICANN is a
"stock exchange".</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">As I see it, this is a fundamental undefined
question of ICANN. Even during the openning speech in Copenhagen,
Steve Croker said "whatever ICANN is ..." </font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">However, this question leads to the position and
weight of ALAC, and the consumers'/end-users' interests, within ICANN,
including the number of seats on the Board, budget allocation,
etc.</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Thus, I hope this question at least could be
clarified within the At-Large community, before we can make it clear in
ICANN.</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Thank you.</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体">Kaili</font></div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体"></font> </div>
<div><font size="2" face="宋体"></font> </div>
<blockquote style="BORDER-LEFT:#000000 2px solid;PADDING-LEFT:5px;PADDING-RIGHT:0px;MARGIN-LEFT:5px;MARGIN-RIGHT:0px">
<div style="FONT:9pt 宋体">----- Original Message ----- </div>
<div style="FONT:9pt 宋体;BACKGROUND:#e4e4e4"><b>From:</b>
<a title="ocl@gih.com" href="mailto:ocl@gih.com" target="_blank">Olivier MJ
Crepin-Leblond</a> </div>
<div style="FONT:9pt 宋体"><b>To:</b> <a title="alac@atlarge-lists.icann.org" href="mailto:alac@atlarge-lists.icann.org" target="_blank">ALAC Working List</a> </div>
<div style="FONT:9pt 宋体"><b>Sent:</b> Tuesday, April 25, 2017 2:10
PM</div>
<div style="FONT:9pt 宋体"><b>Subject:</b> [ALAC] ICANN as a 501(c)(3)
Organisation</div>
<div><br></div>Dear Alan,<br><br>as a follow-up to my explanation on the
ALAC mailing list about ICANN being a 501(c)(3) organisation, the relevant
Article of Incorporation paragraph is:<br>(Ref: <a class="m_3968875922633185118moz-txt-link-freetext" href="https://www.icann.org/resources/pages/governance/articles-en" target="_blank">https://www.icann.org/<wbr>resources/pages/governance/<wbr>articles-en</a>
)<br><br><i><font color="#3366ff">Article 2.I.II:<br>This Corporation is a
nonprofit public benefit corporation and is not organized for the private
gain of any person. It is organized under the Nonprofit Public Benefit
Corporation Law for charitable and public purposes. The Corporation is
organized, and will be operated, exclusively for charitable, educational,
and scientific purposes within the meaning of § 501(c)(3) of the Internal
Revenue Code of 1986, as amended (the “<strong>Code</strong>”), or the
corresponding provision of any future United States tax code. Any
reference in these Articles to the Code shall include the corresponding
provisions of any future United States tax code. In furtherance of the
foregoing purposes, and in recognition of the fact that the Internet is an
international network of networks, owned by no single nation, individual
or organization, the Corporation shall, except as limited by <u>Article
IV</u> hereof, pursue the charitable and public purposes of <b>lessening
the burdens of government and promoting the global public interest </b>in
the operational stability of the Internet by carrying out the mission set
forth in the bylaws of the Corporation (“<strong>Bylaws</strong>”). Such
global public interest may be determined from time to time. Any
determination of such global public interest shall be made by the
multistakeholder community through an inclusive bottom-up multistakeholder
community process.<br><br>Article 2.IV:<br>Notwithstanding any other
provision of these Articles: <br>a. The Corporation shall not carry on any
other activities not permitted to be carried on (i) by a corporation
exempt from United States income tax under § 501(c)(3) of the Code or (ii)
by a corporation, contributions to which are deductible under § 170(c)(2)
of the Code.<br>b. No substantial part of the activities of the
Corporation shall be the carrying on of propaganda, or otherwise
attempting to influence legislation, and the Corporation shall be
empowered to make the election under § 501 (h) of the Code.</font></i>
<p>So what does the § 501(c)(3) tax code say? <a class="m_3968875922633185118moz-txt-link-freetext" href="http://bit.ly/1Va1vVt" target="_blank">http://bit.ly/1Va1vVt</a></p>
<p>To be tax-exempt under section 501(c)(3) of the Internal Revenue Code,
an organization must be <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/organizational-test-internal-revenue-code-section-501c3" target="_blank">organized</a>
and <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/operational-test-internal-revenue-code-section-501c3" target="_blank">operated</a>
exclusively for <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3" target="_blank">exempt
purposes</a> set forth in section 501(c)(3), and none of its earnings may
<a href="https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations" target="_blank">inure</a>
to any private shareholder or individual.</p>
<p><br></p>
<p>Exempt purposes:</p>
<p><a class="m_3968875922633185118moz-txt-link-freetext" href="https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3" target="_blank">https://www.irs.gov/charities-<wbr>non-profits/charitable-<wbr>organizations/exempt-purposes-<wbr>internal-revenue-code-section-<wbr>501c3</a></p>
<p><i><font color="#3366ff">The exempt purposes set forth in section
501(c)(3) are charitable, religious, educational, scientific, literary,
testing for public safety, fostering national or international amateur
sports competition, and preventing cruelty to children or animals.
The term <em>charitable</em> is used in its generally accepted legal sense
and includes relief of the poor, the distressed, or the underprivileged;
advancement of religion; advancement of education or science; erecting or
maintaining public buildings, monuments, or works; <b>lessening the
burdens of government</b>; lessening neighborhood tensions; eliminating
prejudice and discrimination; defending human and civil rights secured by
law; and combating community deterioration and juvenile
delinquency.</font></i></p>
<p><font color="#3366ff"><font color="#000000">So "lessening the burdens of
government" is clearly the key reason for ICANN to operate as 501(c)(3),
but as you can see there are other possible purposes. (As a side track, it
is particularly important to note the "global public interest" part of the
mission which is still undefined and unresolved.)</font></font></p>
<p><font color="#3366ff"><font color="#000000">With the new gTLD program
generating a large income, ICANN needs to be very careful and show
sustained support for "lessening the burdens of government" - thus support
all sorts of Internet-related activities outside of ICANN. Not doing so,
it could be accused of "excess benefit transactions" <a class="m_3968875922633185118moz-txt-link-freetext" href="https://www.irs.gov/charities-non-profits/charitable-organizations/intermediate-sanctions-excess-benefit-transactions" target="_blank">https://www.irs.gov/charities-<wbr>non-profits/charitable-<wbr>organizations/intermediate-<wbr>sanctions-excess-benefit-<wbr>transactions</a>
and be sanctioned. ICANN needs to walk a very fine line on this. I am not
a US tax attorney and have very little knowledge of the matter, but it is
my understanding that if ICANN was to stop supporting initiatives in the
wider Internet ecosystem space, activities related to ICANN but not
*strictly* relating to Names and Numbers, it would risk losing its
501(c)(3) status.<br></font></font></p>
<p><font color="#3366ff"><font color="#000000">This loss of 501(c)(3) status
is completely independent of the point of view that some are holding that
ICANN is spending too much money outside ICANN core activities.
<br></font></font></p>
<p><font color="#3366ff"><font color="#000000">It is also worth noting that
adhering to the conditions for retaining 501(c)(3) status will be a key
issue for the allocation of Auction funds.<br></font></font></p>
<p><font color="#3366ff"><font color="#000000">I really think that we should
fully play this card when it comes down to use of funds in ICANN. The
At-Large Community is part of this "promoting the global public interest"
and we need to remind everyone about this regularly.</font></font></p>
<p><font color="#3366ff"><font color="#000000"><br></font></font></p>
<p><font color="#3366ff"><font color="#000000">Kindest
regards,</font></font></p>
<p><font color="#3366ff"><font color="#000000"><br></font></font></p>
<p><font color="#3366ff"><font color="#000000">Olivier<br></font></font></p>
<p><font color="#3366ff"><font color="#000000"></font><br></font></p>
<p></p>
<hr>
<p></p>______________________________<wbr>_________________<br>ALAC mailing
list<br><a href="mailto:ALAC@atlarge-lists.icann.org" target="_blank">ALAC@atlarge-lists.icann.org</a><br><a href="https://atlarge-lists.icann.org/mailman/listinfo/alac" target="_blank">https://atlarge-lists.icann.<wbr>org/mailman/listinfo/alac</a><br><br>At-Large
Online: <a href="http://www.atlarge.icann.org" target="_blank">http://www.atlarge.icann.org</a><br>ALAC Working Wiki:
<a href="https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)" target="_blank">https://community.icann.org/<wbr>display/atlarge/At-Large+<wbr>Advisory+Committee+(ALAC)</a></blockquote><pre class="m_3968875922633185118blue"><hr><br>ALAC mailing list<br><a href="mailto:ALAC@atlarge-lists.icann.org" target="_blank">ALAC@atlarge-lists.icann.org</a><br><a href="https://atlarge-lists.icann.org/mailman/listinfo/alac" target="_blank">https://atlarge-lists.icann.<wbr>org/mailman/listinfo/alac</a><br><br>At-Large Online: <a href="http://www.atlarge.icann.org" target="_blank">http://www.atlarge.icann.org</a><br>ALAC Working Wiki: <a href="https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)" target="_blank">https://community.icann.org/<wbr>display/atlarge/At-Large+<wbr>Advisory+Committee+(ALAC)</a></pre></blockquote></div></blockquote></div></div></div>
<br>______________________________<wbr>_________________<br>
ALAC mailing list<br>
<a href="mailto:ALAC@atlarge-lists.icann.org">ALAC@atlarge-lists.icann.org</a><br>
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<br>
At-Large Online: <a href="http://www.atlarge.icann.org" rel="noreferrer" target="_blank">http://www.atlarge.icann.org</a><br>
ALAC Working Wiki: <a href="https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)" rel="noreferrer" target="_blank">https://community.icann.org/<wbr>display/atlarge/At-Large+<wbr>Advisory+Committee+(ALAC)</a><br></blockquote></div><br><br clear="all"><br>-- <br><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div>Andrey Kolesnikov<br></div><div><a href="http://RIPN.NET" target="_blank">RIPN.NET</a><br></div><div><br></div></div></div></div></div></div></div>
</div>