<div dir="ltr"><div dir="ltr"><div class="gmail_default" style="font-family:tahoma,sans-serif">When I was intimately involved with this question, the lawyers argued against a ban on private post-application resolution of contention sets by focusing on principles of [California] contract and U.S. antitrust law. Very interesting indeed.</div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">They threw everything at it that they thought could stick to the wall, including some fairly learned treatises on use of the English language; the singular/plural situation,homophones et. al. Think mud wrestling but with words and lawyers.</div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">They built a head of steam going on about the principle of the freedom of contract, daring everybody to finger any statutory law violated or the public policy that was fettered. I can recall one high-priced legal eagle labeling any such action a paternalistic interference from ICANN. And you know charges of paternalism are emotive to those of us from the edge of empire!</div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">You heard that a private post-application resolution is actually a better indicator of the domainers interest and intentions than a mandated process. They are both more amicable and efficient. And, inure to the free market commitments to which ICANN has variously committed. They placed a big value on the optics with decreased litigation risk, reduced overall costs for the parties and avoided delays. Then they added the kicker. This way avoided ICANN being labeled a regulator, but this time with facts on the ground.</div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">You heard them invoke the 'rule of reason' that private resolutions in this instance are not anti-competitive nor a restraint on their trade but a voluntary enhancement of competition by allowing pooling of resources and encouraging market innovation. </div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">Take the nuanced approach, they say. Evaluate on a case-by-case basis. Soon as we tell you about it.</div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">It's great to watch these things in play. The intellectual stimulation alone is a downpayment for me being here. </div><div class="gmail_default" style="font-family:tahoma,sans-serif"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif">Carlton</div><div class="gmail_default" style="font-family:tahoma,sans-serif;font-size:large"><br></div><div class="gmail_default" style="font-family:tahoma,sans-serif;font-size:large"><br></div><div><div dir="ltr" class="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><br>==============================<br><i><font face="comic sans ms, sans-serif">Carlton A Samuels</font></i><br><font face="comic sans ms, sans-serif"><i>Mobile: 876-818-1799<br><font color="#33CC00">Strategy, Process, Governance, Assessment & Turnaround</font></i></font><br>=============================</div></div></div></div></div></div><br></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Tue, 18 Jun 2024 at 17:01, Justine Chew via ALAC <<a href="mailto:alac@atlarge-lists.icann.org">alac@atlarge-lists.icann.org</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir="auto"><div><div>There are some errors in the second last paragraph. It should read, </div><div dir="auto"><div dir="auto"><br></div><div dir="auto">In other words, the ALAC supports the overall intention of the Subsequent Procedures PDP Recommendation 35.4 which the GNSO Council chose not to submit to the ICANN Board for adoption, EXCEPT FOR (a) the provision allowing participation in various forms of private resolution; (b) the allowance for applicants whose applications are caught or are added to any contention sets that are expanded as a result of other application procedures to submit a fresh bid; and (c) the provision that ICANN Auctions must only take place after all the other evaluation procedures, and objections are completed. </div></div><div><br>Kind regards,<br>Justine<br>---------</div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Tue, 18 Jun 2024, 23:21 ICANN At-Large Staff via ALAC, <<a href="mailto:alac@atlarge-lists.icann.org" rel="noreferrer noreferrer" target="_blank">alac@atlarge-lists.icann.org</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
<div lang="EN-US" style="overflow-wrap: break-word;">
<div>
<p class="MsoNormal">Dear All, <u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">On behalf of Jonathan Zuck, ALAC Chair, this is a three-day Consensus call for the 15 members of the ALAC on the ALAC Advice to the ICANN Board on New gTLD Contention Resolution.
<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">The Consensus call will close on Friday, 21 June at 23:59 UTC.<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><span style="font-size:12pt;color:black">Please let us know if you have any significant comments or concerns on the ALAC Advice.</span><u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">**<u></u><u></u></p>
<p style="margin:0in"><b><span style="font-family:Arial,sans-serif;color:black">At-Large Advisory Committee Advice to the ICANN Board on New gTLD Contention Resolution </span></b><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"> <u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="font-family:Arial,sans-serif;color:black">In her 3 June 2024 Blog <<a href="https://www.icann.org/en/blogs/details/board-discusses-auctions-of-last-resort-private-resolution-of-contention-sets-03-06-2024-en" title="https://www.icann.org/en/blogs/details/board-discusses-auctions-of-last-resort-private-resolution-of-contention-sets-03-06-2024-en" rel="noreferrer noreferrer noreferrer" target="_blank">https://www.icann.org/en/blogs/details/board-discusses-auctions-of-last-resort-private-resolution-of-contention-sets-03-06-2024-en</a>>,
the ICANN Board Chair reiterated that<span> </span><i>“the Board is not inclined to sanction a repeat of the 2012 process when private resolutions were encouraged in the Applicant Guidebook.”</i></span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"> <u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="font-family:Arial,sans-serif;color:black">The ALAC strongly supports this statement by the ICANN Board Chair.</span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"> <u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="font-family:Arial,sans-serif;color:black">The ALAC agrees with the National Economic Research Associates (NERA) which said in its report of 17 May 2024 <<a href="https://www.icann.org/en/system/files/files/addressing-monetary-means-private-resolution-final-report-17may24-en.pdf" title="https://www.icann.org/en/system/files/files/addressing-monetary-means-private-resolution-final-report-17may24-en.pdf" rel="noreferrer noreferrer noreferrer" target="_blank">https://www.icann.org/en/system/files/files/addressing-monetary-means-private-resolution-final-report-17may24-en.pdf</a>>
that attempting to eliminate private auctions or comparable monetary resolutions while allowing legitimate post-application “joint ventures” would be difficult or impossible, and its conclusion that a ban on private resolutions would have to include all forms,
including joint ventures. While also noting the lack of such post-application joint ventures being formed to as a means to resolve contention sets in the 2012 round, the ALAC now reiterates and expands upon its previous advice.</span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"><u></u> <u></u></span></p>
<p style="margin:0in"><span style="font-family:Arial,sans-serif;color:black">The ALAC advises the ICANN Board to ban all forms of post-application private resolution of contention sets, including joint-ventures regardless of claims as good-faith joint ventures.</span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"> <u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="font-family:Arial,sans-serif;color:black">Furthermore, the ALAC advises the ICANN Board to adjust the ICANN Auction of Last Resort to an auction process a methodology comparable to a Vickrey Auction (sealed-bid second-price auction -<span> </span><a href="https://urldefense.com/v3/__https:/en.wikipedia.org/wiki/Vickrey_auction__;!!PtGJab4!5_mw9p8LH53CKdy0Qa_hrpCzu8E1QHSvqcPQXg2ciD8heLDDYij8iwoB84wIWYX3tF4wmVe1bIwygRGX6pzj3IQ97DuyOttfCiK2HA$" title="https://urldefense.com/v3/__https:/en.wikipedia.org/wiki/Vickrey_auction__;!!PtGJab4!5_mw9p8LH53CKdy0Qa_hrpCzu8E1QHSvqcPQXg2ciD8heLDDYij8iwoB84wIWYX3tF4wmVe1bIwygRGX6pzj3IQ97DuyOttfCiK2HA$" rel="noreferrer noreferrer noreferrer" target="_blank">https://en.wikipedia.org/wiki/Vickrey_auction
[en.wikipedia.org]</a>) requiring each gTLD string application to be accompanied by an auction bid at the time the application is submitted, and prior to any indication of possible contention sets being formed.</span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"><u></u> <u></u></span></p>
<p style="margin:0in"><span style="font-family:Arial,sans-serif;color:black">Firstly, requiring an applicant to submit an accompanying auction bid with its application - and if more than one application, a bid with each of its applications - helps the applicant
demonstrate the<span> </span><i>bona fide<span> </span></i>intention of operating a TLD that it affirmatively attests to.</span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"><u></u> <u></u></span></p>
<p style="margin:0in"><span style="font-family:Arial,sans-serif;color:black">Secondly, Vickrey auctions mitigate, if not eliminate, any ability to abuse or game the application process since bids are submitted prior to knowing if there are any competitors
and who they may be.<span> </span></span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in"><span style="color:black"><u></u> <u></u></span></p>
<p style="margin:0in"><span style="font-family:Arial,sans-serif;color:black">Thirdly, ICANN may be able to capitalize on opportunities to reduce application evaluation costs, for both ICANN org and applicants, in cases where there are multiple contenders
for the same string, by strategically positioning the ICANN Auction as a process of elimination earlier in the evaluation cycle, rather than as a contention set resolution mechanism of last resort, thereby foregoing the need for evaluation processes which
can reasonably be avoided. However, this consideration must not displace the option for Community Priority Evaluation (CPE) by Community-based TLD applicants that opts for the CPE in an attempt to prevail out of a contention set.<u></u><u></u></span></p>
<p style="margin:0in"><span style="color:black"><u></u> <u></u></span></p>
<p style="margin:0in"><span style="font-family:Arial,sans-serif;color:black">In other words, the ALAC supports the overall intention of the Subsequent Procedures Recommendation 35.4 which the GNSO Council chose not to submit to the ICANN Board for adoption,<span> </span><u>EXCEPT
FOR</u><span> </span>(a) the provision allowing participation in various forms of private resolution; (b) the allowance for applicants whose applications that are caught or are added to any contention sets that are expanded as
a result of other application procedures to<span> </span>as a result of other application procedures; and (c) the provision that ICANN Auctions would only take place after all the other evaluation procedures, and objections are
completed. </span><span style="color:black"><u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="color:black"> <u></u><u></u></span></p>
<p style="margin:0in;font-variant-caps:normal;text-align:start;word-spacing:0px">
<span style="font-family:Arial,sans-serif;color:black">The ALAC would be pleased to enter into further dialogue with the Board on any of these issues.</span><span style="color:black"><u></u><u></u></span></p>
<p class="MsoNormal">**<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">Kind regards,<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<div>
<p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:black">At-Large Staff</span><span style="font-size:12pt;color:black"><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:black">ICANN Policy Staff in support of the At-Large Community</span><span style="font-size:12pt;color:black"><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:black">Website: <a href="https://atlarge.icann.org/" title="https://atlarge.icann.org/" rel="noreferrer noreferrer noreferrer" target="_blank"><span style="color:rgb(5,99,193)">atlarge.icann.org</span></a></span><span style="font-size:12pt;color:black"><u></u><u></u></span></p>
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