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    Dear Milton,<br>
    <br>
    Thank you kindly for forwarding this.<br>
    <br>
    It raises 2 points, I think. First, if the explanatory note says
    something very different from the actual provision, then that should
    be an easy fix. It should say that ICANN can use its regulatory
    infrastructure to enforce contracts entered into between registrars
    and other parties even if those contracts regulate content in some
    manner. Leaving it as is can lead to problems down the road.<br>
    <br>
    But second of course is the question of whether it's appropriate for
    ICANN to do so, or whether such disputes are best left to other
    regulatory mechanisms. I can see arguments on either side, but much
    of it would depend on the scope of the intended exception. Take the
    relatively innocuous .bank example. Are we saying that ICANN can
    prevent registrars from pulling the rug out from under regsitrants
    through a contract change that affects content? (After 10 years of
    operation, .bank removes the obligation on registrants to be
    financial institutions). That might be ok, and doesn't really get
    too deep into content issues. But are we also saying that ICANN can
    adjudicate on Registrar-registrant contracts that affect content? Ie
    can I complain to ICANN that my bitcoin.bank was refused? Can Bank
    of America complain to it because my bitcoin.bank was accepted? Can
    states have ICANN ban questionable payment intermediaries from .bank
    because these states believe are funding rogue operations like
    wikileaks? The latter seems potentially more problematic, because
    then we're leaving it to ICANN arb panels to determine what a 'bank'
    is, which is precisely what the prohibition on content is trying to
    avoid.<br>
    <br>
    Not sure where this process is at, but I think it might be
    worthwhile to get some clarification on these points.<br>
    <br>
    Best,<br>
    Tamir<br>
    <br>
    <br>
    <div class="moz-cite-prefix">On 8/20/2015 4:45 PM, Mueller, Milton L
      wrote:<br>
    </div>
    <blockquote
cite="mid:BY2PR07MB58219D003DADC65C70C7372AC660@BY2PR07MB582.namprd07.prod.outlook.com"
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        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">See
            Malcolm’s discussion below, which clarifies a lot.
            <o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">However,
            I do not agree that we can rely entirely on the proposed
            bylaw change (which is actually paragraph 187 in the
            proposal, not paragraph 188).  <o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">I
            think we should make an issue of this in our comments and
            insist that the language “</span>"provided,<br>
          of course, that the policy itself being enforced contractually
          is one that lies within ICANN's Mission"<a
            moz-do-not-send="true" name="_MailEndCompose"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">
              be included in the final proposal<o:p></o:p></span></a></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">--MM<o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
        <p class="MsoNormal"><b><span
              style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span
style="font-size:11.0pt;font-family:"Calibri",sans-serif">
            Milton Mueller [<a class="moz-txt-link-freetext" href="mailto:mueller.syr.edu@gmail.com">mailto:mueller.syr.edu@gmail.com</a>]
            <br>
            <b>Sent:</b> Thursday, August 20, 2015 3:34 PM<br>
            <b>To:</b> Mueller, Milton L
            <a class="moz-txt-link-rfc2396E" href="mailto:milton.mueller@pubpolicy.gatech.edu"><milton.mueller@pubpolicy.gatech.edu></a><br>
            <b>Subject:</b> Fwd: FW: "Limitations on ICANN's contracting
            authority."<o:p></o:p></span></p>
        <p class="MsoNormal"><o:p> </o:p></p>
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          <p class="MsoNormal"><o:p> </o:p></p>
          <div>
            <p class="MsoNormal" style="margin-bottom:12.0pt">----------
              Forwarded message ----------<br>
              From: <b>Malcolm Hutty</b> <<a moz-do-not-send="true"
                href="mailto:malcolm@linx.net">malcolm@linx.net</a>><br>
              Date: Wed, Aug 19, 2015 at 2:04 PM<br>
              Subject: Re: FW: "Limitations on ICANN's contracting
              authority."<br>
              To: Paul Rosenzweig <<a moz-do-not-send="true"
                href="mailto:paul.rosenzweig@redbranchconsulting.com">paul.rosenzweig@redbranchconsulting.com</a>><br>
              Cc: Milton L Mueller <<a moz-do-not-send="true"
                href="mailto:mueller@syr.edu">mueller@syr.edu</a>><br>
              <br>
              <br>
              <br>
              <br>
              On 19/08/2015 17:50, Paul Rosenzweig wrote:<br>
              ><br>
              > I’ve exceeded my understanding of this issue – do you
              have anything to<br>
              > add that might assist in the discussion.<br>
              <br>
              I can explain the history of this text, if you like.<br>
              <br>
              <br>
              As Milton says, the language<br>
                        "Without in any way limiting the foregoing
              absolute<br>
                         prohibition, ICANN shall not engage in or use
              its powers to<br>
                         attempt the regulation of services that use the
              Internet's<br>
                         unique identifiers, or the content that they
              carry or<br>
                         provide."<br>
              <br>
              was inserted precisely to make clear that ICANN could not
              use its<br>
              contracting power with Registries and Registrars as a
              lever to engage in<br>
              general regulation of Internet content and services.<br>
              <br>
              The concern that ICANN might one day try to do this, and
              should be<br>
              restrained from doing it, was recorded in Stress Test #23.<br>
              <br>
              When this proposal was put out for the First Public
              Comment, the CCWG<br>
              received input from some commercial stakeholders that
              expressed concern<br>
              that this would interfere with the existing Contract
              Compliance<br>
              programme. From memory, the stakeholders who raised this
              concern were<br>
              members of the Business and Intelletual Property
              constituencies, and the<br>
              Business Constituency itself supported this intervention.<br>
              <br>
              This prompted a discussion within the working party: what
              exactly were<br>
              these stakeholders worried about? Did this intervention
              mean that they<br>
              wanted ICANN to be able to regulate content and services
              generally?<br>
              <br>
              Steve Delbianco, on behalf of the Business Constituency,
              offered the<br>
              example of .bank: as part of the creation of that TLD, it
              was proposed<br>
              by the prospective registry that only registered banks
              would be allowed<br>
              to register within that domain. This would form part of
              the Registry<br>
              agreement, and the successful Registry would not be
              allowed to change<br>
              their policy later and turn .bank into a free-for-all open
              registration<br>
              policy domain. Should they try to do so, ICANN would
              enforce the<br>
              Registry agreement, even though the restriction on
              registration in .bak<br>
              originated not in an ICANN PDP policy, but in the
              voluntary proposal of<br>
              the gTLD applicant. Steve said that the Business
              Constituency wanted to<br>
              ensure that this enforcement would continue, and that the
              abovementioned<br>
              text in the Bylaws should not prevent ICANN from stopping
              the Registry<br>
              from changing its policy on registration after the TLD's
              initial delegation.<br>
              <br>
              (Some of) those that had proposed the abovementioned text
              responded that<br>
              this was not intended to interfere with that behaviour by
              ICANN. They<br>
              drew a distinction between using the Registry contract to
              enforce the<br>
              terms on which the initial delegation was made, and
              introducing new<br>
              policies intended to regulate the behaviour of end-user
              registrants.<br>
              They (we) argued that defining the purpose of each gTLD,
              and creating<br>
              policies so that those gTLDs achieved their purpose, was
              clearly within<br>
              the scope of ICANN's proper Mission. Accordingly,
              enforcing those<br>
              policies through ICANN's contracting power remains within
              ICANN's<br>
              authorised powers. By contrast, if it were to create new
              policies to<br>
              which registrants must aide, not for the purpose of
              defining the scope<br>
              of a given domain, but with the intention of controlling
              user behaviour<br>
              generally - that is, justified not by the need to ensure
              an open,<br>
              interoperable, reliable and secure DNS but by its
              conception of the<br>
              public interest more broadly, then that would indeed be
              outside ICANN's<br>
              Mission and this clause would indeed restain ICANN from
              using its<br>
              contracting authority in that manner.<br>
              <br>
              Accordingly, we argued, the concern raised by the Business
              Constituency<br>
              was unwarranted: this clause would not act as a restain on
              ICANN's<br>
              contracting authority as a means of enforcing ICANN's
              policy - provided,<br>
              of course, that the policy itself is one that lies within
              ICANN's<br>
              Mission. It was agreed that a note to this effect would be
              made in the<br>
              Second Public Comment draft, and that this would be given
              as the reason<br>
              why we had not changed the text to which some stakeholders
              objected.<br>
              <br>
              That is how paragraph 158 came about.<br>
              <br>
              In my view the omission of this last qualification in
              paragraph 158 of<br>
              the public comment is indeed confusing (i.e. the omission
              of "provided,<br>
              of course, that the policy itself being enforced
              contractually is one<br>
              that lies within ICANN's Mission"). I can see how, lacking
              this<br>
              qualification, the paragraph gave rise to Milton's "WTF
              moment".<br>
              However, this is only explanatory text: the draft bylaw
              language is<br>
              paragraph 188. The only real concern I would have would be
              if the<br>
              lawyers, working from paragraph 158, sought to redraft
              paragraph 188.<br>
              <br>
              I hope that helps,<br>
              <br>
              Kind Regards,<br>
              <br>
              Malcolm.<br>
              <br>
              <span class="hoenzb"><span style="color:#888888">--</span></span><span
                style="color:#888888"><br>
                <span class="hoenzb">            Malcolm Hutty | tel: <a
                    moz-do-not-send="true"
                    href="tel:%2B44%2020%207645%203523">
                    +44 20 7645 3523</a></span><br>
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                  the LINX Public Affairs blog</span><br>
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