Perhaps someone can explain this seeming paradox:

Amendment 11
<http://www.ntia.doc.gov/ntiahome/domainname/proposals/docnsi100698.htm>
states:

"NSI also will by February 1, 1999, employ appropriate safeguards, approved
by the USG, to ensure that revenues and assets of the registry are not
utilized to financially advantage NSI's registrar activities to the
detriment of other registrars."

>From the Registrar License and Agreement:
http://www.ntia.doc.gov/ntiahome/domainname/rla42199.htm

"Registrar's dispute policy shall require the SLD holder to indemnify,
defend and hold harmless NSI, and its directors, officers, employees and
agents from
and against any and all claims, damages, liabilities, costs and expenses,
including reasonable legal fees and expenses arising out of or relating to
the SLD holder's domain name registration."

"2.14 Registrar agrees to comply with the policies of NSI as Registry that
will be applicable to all registrars"
________________________________________

So, my query is this:  Will NSI in its registrar capacity be required to
indemnify itself (as registry), which takes it off the hook against any and
all claims, damages, liabilities, costs and expenses, including reasonable
legal fees and expenses arising out of or relating to the SLD holder's
domain name registration.  If so, doesn't that advantage (in unreasonable
and inequitable ways) NSI over the other registrars by insulating it from
potential lawsuits?


Ellen Rony                                                     Co-author
The Domain Name Handbook                   http://www.domainhandbook.com
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