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ICANN “intervention” needed on TLD ownership rules

Kevin Murphy, October 28, 2010, 12:48:56 (UTC), Domain Registries

ICANN’s board of directors is today likely to step in to create rules on which kinds of companies should be able to apply for new top-level domains.

Chairman Peter Dengate Thrush now says “intervention appears to be required” on the issue of registry-registrar cross-ownership, after a GNSO working group failed to create a consensus policy.

In an email to the vertical integration working group yesterday, Dengate Thrush thanked particpants for their efforts and added:

The board is faced, in the face of absence of a GNSO position, to examine what should be done. This is a matter we are actively considering.

My sense is that, while reluctant to appear to be making policy, the Board is unwilling to allow stalemate in the GNSO policy development process to act as an impediment to implementing other major policy work of the GNSO, which calls for the introduction of new gTLDS. Some kind of Board intervention appears to be required, and we are considering that.

Currently, placeholder text in the new TLD Draft Applicant Guidebook calls for a 2% cross-ownership cap and effectively bans registrars from applying to become registries.

Such a scenario would very likely make single-registrant “.brand” TLDs unworkable. Canon, for example, would be forced to pay a registrar every time it wanted to create a new domain in .canon.

It would also put a serious question mark next to the viability of geographical and cultural TLDs that may be of limited appeal to mass-market registrars.

Many in the VI working group are in favor of more liberal ownership rules, with larger ownership caps and carve-outs for .brands and “orphan” TLDs that are unable to find registrars to partner with.

But others, notably including Go Daddy and Afilias, which arguably stand to gain more economically from the status quo, favor a stricter separation of powers.

This latter bloc believes that allowing the integration of registry and registrar functions would enable abusive practices.

Dengate Thrush’s email has already raised eyebrows. ICANN is, after all, supposed to create policies using a bottom-up process.

Go Daddy’s policy point man, Tim Ruiz, wrote:

I am hopeful that you did not intend to imply that if the bottom up process does not produce the reults that some of the Board and Staff wanted then the Board will just create its own policy top down.

I hope that the Board keeps its word regarding VI as it was given to the GNSO. To not do so would make it difficult to have any confidence in the Board whatsoever.

It’s a tightrope, and no mistake.

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Comments (4)

  1. JSL says:

    excellent piece

  2. This is all slightly ridiculous. It’s a tightrope if the ICANN Board thinks that it’s job is to please all of the people all of the time.

    The Working Group, possibly the most well-attended ever, could hardly agree on anything. Someone has to make the rules about vertical integration. If not the Board, then who?

  3. […] A vertical integration working group which set out to create a bottom-up consensus policy earlier this year managed to find only deadlock. […]

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