https://domainnamewire.com/2019/11/15/ica-asks-icann-to-block-org-private-equity-deal-in-damning-letter/

> ICA asks ICANN to block .Org private equity deal in damning letter
> 
> by Andrew Allemann — November 15, 2019 Policy & Law 28 Comments
> 
> Group calls out ICANN’s “terrible blunder”.
> 
> 
> 
> Internet Commerce Association is asking domain overseer ICANN to block the 
> sale of the .Org registry to Ethos Capital.
> 
> It sent a damning letter (pdf) to ICANN today that states what many observers 
> are thinking. In part:
> 
>> Surely you can now appreciate the terrible blunder that you have made. 
>> Crucial policy decisions that have billion-dollar ramifications and which 
>> affect the stability of the Internet must be the subject of robust Board 
>> involvement and not left to ICANN staff.
>> 
>> If you were led to believe that removing price caps on .Org domain names was 
>> a sound approach because the registry would remain in the hands of a 
>> nonprofit foundation, you have clearly been misled. If you were led to 
>> believe that despite being the effective owner of the .org registry, you 
>> were somehow forced to let your service providers tell you how much they can 
>> charge, instead of the other way around, you have been led astray. If you 
>> have been told that .Org does not have market power within the nonprofit 
>> sector, you have been led astray. If you have been told that competition 
>> from other gTLDs will constrain .org prices, you have been led astray.
> 
> Section 7.5 of the registry agreement between Public Interest Registry and 
> ICANN states:
> 
>> Except as set forth in this Section 7.5, neither party may assign any of its 
>> rights and obligations under this Agreement without the prior written 
>> approval of the other party, which approval will not be unreasonably 
>> withheld.
> 
> The question now is: would it be reasonable for ICANN to withold approval of 
> the transfer of the .org registry agreement?
> 
> ICANN has a history of wimping out in fights. But given the blowback it is 
> getting and will get for many years from this deal, it might be one of those 
> times it steps up.
> 
> The letter concludes:
> 
>> If your miscalculation of awarding a perpetual, no-bid agreement – lacking 
>> any price caps whatsoever – was premised on the registry remaining in the 
>> hands of an organization serving the public interest, the pending sale to a 
>> private equity firm should cause you to reconsider your approach. 
>> Fortunately the purported sale of the .Org registry affords you an 
>> opportunity to withhold approval, terminate the Registry Agreement in 
>> respect of any consummated transaction, and put the contract out for 
>> competitive bid.
>> 
>> Where is the ICANN Board when it comes to safeguarding the interests of 
>> nonprofit registrants?

-- 
Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:[email protected]  aim://kimholburn
skype://kholburn - PGP Public Key on request 




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