<html><head></head><body>Hi,<br class=""/><div><br class=""/><blockquote type="cite" class=""><div class="">On Nov 14, 2019, at 4:49 PM, Michael Karanicolas <<a href="mailto:mkaranicolas@GMAIL.COM" class="">mkaranicolas@GMAIL.COM</a>> wrote:</div><br class="Apple-interchange-newline"/><div class="">
<div dir="ltr" class="">Given how catastrophic the invocation of art. 7.5 would be for both PIR and for ISOC, I would be amazed if they'd made a mistake like failing to inform ICANN of the purchase. Indeed, I would assume they consulted extensively with ICANN in laying the groundwork for this sale, and got organizational buy-in from the earliest stages of the discussions. I doubt very much ICANN is going to invalidate the registry agreement.</div></div></blockquote><div><br class=""/></div><div>I’m not so sure of that. Would be more ideal, I think, if we requested more information on this and how 7.5 might come in to play.</div><div><br class=""/></div><div>My understanding is that the acquisition hasn’t been finalized, but rather that ISOC and Ethos Capital have reached an agreement on the sale, which will be finalized at some point within the first quarter of 2020. I suppose this gives ISOC the required 30-day window to inform ICANN of the details it requires ISOC to share. I say this not having any personal insight in to when the notification to ICANN as per 7.5 is required. So is it required before the agreement is actually made, or is it required before the completion of the transaction itself? I really don’t know, and absent practical experience with this contractual clause, we’re all just speculating (does anybody here know more about this?).</div><div><br class=""/></div><div>Having said that, the NCSG might want to consider if or how it might want to engage with ICANN on this. I’ve voiced my disagreement with many of our members on advocating for ICANN to regulate domain name registration or renewal pricing. As things stand, I personally also see no issue with the sale itself, nor the parties involved. I say this suspecting that many of our members will take issue with this view.</div><div><br class=""/></div><div>The one thing I do find disturbing, however, is the change of status of PIR from a not-for-profit corp to a for-profit one. I’m not sure what the circumstances were when .org was assigned to ISOC, and PIR was established. I’m also not sure to what extent these circumstances might have or have not required ISOC to operate the .org Registry Operator as a NFP. We might want to look in to that, and to what extent the original assignment might be relevant to PIR’s change in status now.</div><div><br class=""/></div><div>In the meantime, let’s not make assumptions, which might very well be incorrect ones, and develop positions based on them. Doesn’t hurt to ask for more info. Doesn’t cost us anything either, but we should probably move quickly on this.</div><div><br class=""/></div><div>My suggestion would be to direct a number of questions to ICANN including:</div><div>1. How does ICANN Compliance enforce Article 7.5 of the Registry Agreement?</div><div>2. When did ISOC provide notice to ICANN on its intent to sell PIR to Ethos Capital?</div><div>3. What were the governing documents when .org was assigned to ISOC?</div><div><br class=""/></div><div>I suspect some of our members who were present at the time the subject of the third question was taking place might be able to provide insight, and point us to resources. If not, let’s ask for them?</div><div><br class=""/></div><div>Thanks.</div><div><br class=""/></div><div>Amr</div><br class=""/><blockquote type="cite" class=""><div class=""><div dir="ltr" class=""><div class=""><br class=""/></div><div class="">That said, and as Stephanie noted at the outset, all of this casts the previous discussion over the new contract in a different light, given that ICANN almost certainly knew that a sale was being discussed. I seem to recall that they leaned heavily on past precedent, and that PIR had not previously utilized the price increases available to it, in arguing that they could be trusted with the pricing change. If they knew that a sale to new (and likely more financially demanding) ownership was just over the horizon, that whole line of argument seems very disingenuous.</div><div class=""><br class=""/></div><div class="">Michael Karanicolas</div><div class="">Resident Fellow</div><div class="">Yale Law School</div></div><br class=""/><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Thu, Nov 14, 2019 at 9:08 AM Joan Kerr <<a href="mailto:joankerr@fbsc.org" class="">joankerr@fbsc.org</a>> wrote:<br class=""/></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="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div class="gmail_default" style="font-family: verdana, sans-serif; font-size: small;">Hi Caleb,</div><div class="gmail_default" style="font-family: verdana, sans-serif; font-size: small;"><br class=""/></div><div class="gmail_default" style="font-family: verdana, sans-serif; font-size: small;">I am not sure that ISOC/PIR gave notice to ICANN, I am sure they have. The Chief Purpose Officer, Nora Abusitta-Ouri previously worked at ICANN, so would know the rules and requirements to be addressed.</div><div class="gmail_default" style="font-family: verdana, sans-serif; font-size: small;"><br class=""/></div><div class="gmail_default" style="font-family: verdana, sans-serif; font-size: small;">Regards,</div><div class="gmail_default" style="font-family: verdana, sans-serif; font-size: small;"><br class=""/></div></div></div></div></div><br class=""/><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Nov 13, 2019 at 11:40 PM Caleb Olumuyiwa Ogundele <<a href="mailto:muyiwacaleb@gmail.com" target="_blank" class="">muyiwacaleb@gmail.com</a>> wrote:<br class=""/></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" class="">And here is the first red flag raised and quoted by @IGPAlert on twitter.<div dir="auto" class=""><br class=""/></div><div dir="auto" class=""><span style="background-color:rgb(255,224,130)" class=""><b class="">Re: the sellout of .org, under art. 7.5 of the PIR contract, PIR has to provide ICANN with 30 days’ notice of any change in control, and ICANN can respond by terminating the agreement #PIR #ORG #ICANN</b></span></div><div dir="auto" class=""><br class=""/></div><div dir="auto" class=""><br class=""/></div><div dir="auto" class="">Was ICANN notified and was there any notice to critical stakeholders SO /AC? </div></div><br class=""/><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Thu, Nov 14, 2019, 2:19 AM James Gannon <<a href="mailto:lists@icann.guru" class="">lists@icann.guru</a>> wrote:<br class=""/></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">The purchasing entity is ethos capital a Delaware corporation formed 4 months ago with many familiar faces involved.<br class=""/>
<a href="https://ethoscapital.com/" rel="noreferrer noreferrer" target="_blank" class="">https://ethoscapital.com/</a><br class=""/>
<br class=""/>
---<br class=""/>
James Gannon<br class=""/>
<br class=""/>
On 14.11.19, 02:00, "Carlos Afonso" <<a href="mailto:ca@cafonso.ca" rel="noreferrer" target="_blank" class="">ca@cafonso.ca</a>> wrote:<br class=""/>
<br class=""/>
Yes, they are the same: Ethos and Ethos Capital are from the same group.<br class=""/>
Even the web pages are almost identical, and several officers sit on<br class=""/>
both. As if this would make a significant difference, but...:<br class=""/>
<br class=""/>
<a href="http://www.ethos.co.za/" rel="noreferrer noreferrer" target="_blank" class="">http://www.ethos.co.za/</a><br class=""/>
<a href="https://ethoscapital.mu/" rel="noreferrer noreferrer" target="_blank" class="">https://ethoscapital.mu/</a><br class=""/>
<br class=""/>
fraternal regards<br class=""/>
<br class=""/>
--c.a.<br class=""/>
<br class=""/>
On 13/11/2019 22:53, James Gannon wrote:<br class=""/>
> Ethos the South African firm is not the same firm that has aquired PIR.<br class=""/>
> <br class=""/>
> ---<br class=""/>
> James Gannon<br class=""/>
> <br class=""/>
> On 14.11.19, 01:48, "NCSG-Discuss on behalf of Carlos Afonso" <<a href="mailto:NCSG-DISCUSS@LISTSERV.SYR.EDU" rel="noreferrer" target="_blank" class="">NCSG-DISCUSS@LISTSERV.SYR.EDU</a> on behalf of <a href="mailto:0000103799ed46a9-dmarc-request@LISTSERV.SYR.EDU" rel="noreferrer" target="_blank" class="">0000103799ed46a9-dmarc-request@LISTSERV.SYR.EDU</a>> wrote:<br class=""/>
> <br class=""/>
> Also, the official statement from ISOC mentions that Ethos Capital is "a<br class=""/>
> strong strategic partner that understands the intricacies of the domain<br class=""/>
> industry and has the expertise, experience and shared values to further<br class=""/>
> advance the goals of .ORG into the future".<br class=""/>
> <br class=""/>
> Just checked their two main websites (Ethos Capital and Ethos) - there<br class=""/>
> is no trace of former experience in dealing with domain names (the<br class=""/>
> acquisition of a South African service provider in 2018<br class=""/>
> notwithstanding). "Shared values" with a financial speculator whose aim<br class=""/>
> is just profit?<br class=""/>
> <br class=""/>
> But, let us face it, everyone knows that PIR was as flexible as any<br class=""/>
> other registry in accepting anyone with a valid international credit<br class=""/>
> card for .org. When the domain was auctioned, APC was the other<br class=""/>
> contender, with a clear proposal to keep the domain as the lair of<br class=""/>
> non-profits. Pity it did not win...<br class=""/>
> <br class=""/>
> fraternal regards<br class=""/>
> <br class=""/>
> --c.a.<br class=""/>
> <br class=""/>
> On 13/11/2019 15:55, Sam Lanfranco wrote:<br class=""/>
> > Thanks Stephanie, <br class=""/>
> > While PIR said, as recently as last week to me, that PIR was not<br class=""/>
> > considering raising .org registration fees, <br class=""/>
> > <br class=""/>
> > I suspect that the new owners will feel that they are under no obligations<br class=""/>
> > to observe the PIR position. <br class=""/>
> > Oddly, the Ethos website misspells the title of the CEO: Peter<br class=""/>
> > Hayward-Butt, CHEIF EXECUTIVE OFFICER<br class=""/>
> > We shall see.<br class=""/>
> > Sam Lanfranco<br class=""/>
> > ---- Original Message ----From: Stephanie Perrin <br class=""/>
> > To: <a href="mailto:NCSG-DISCUSS@LISTSERV.SYR.EDU" rel="noreferrer" target="_blank" class="">NCSG-DISCUSS@LISTSERV.SYR.EDU</a><br class=""/>
> > Sent: Wed, Nov 13, 2019, 12:41 PM<br class=""/>
> > Subject: ISOC sells PIR<br class=""/>
> > I must say, this casts the decision to drop price caps for .org in a<br class=""/>
> > slightly different light. I will keep you posted as I learn more. <br class=""/>
> > <br class=""/>
> > <a href="https://www.businesswire.com/news/home/20191113005661/en/Ethos-Capital-Acquire-Public-Interest-Registry-Internet" rel="noreferrer noreferrer" target="_blank" class="">https://www.businesswire.com/news/home/20191113005661/en/Ethos-Capital-Acquire-Public-Interest-Registry-Internet</a><br class=""/>
> > (<a href="https://www.businesswire.com/news/home/20191113005661/en/Ethos-Capital-Acquire-Public-Interest-Registry-Internet" rel="noreferrer noreferrer" target="_blank" class="">https://www.businesswire.com/news/home/20191113005661/en/Ethos-Capital-Acquire-Public-Interest-Registry-Internet</a>)<br class=""/>
> > <br class=""/>
> > <br class=""/>
> > Stephanie Perrin <br class=""/>
> > <br class=""/>
> > NCSG Chair<br class=""/>
> > <br class=""/>
> > <br class=""/>
> <br class=""/>
> -- <br class=""/>
> <br class=""/>
> Carlos A. Afonso<br class=""/>
> [emails são pessoais exceto quando explicitamente indicado em contrário]<br class=""/>
> [emails are personal unless explicitly indicated otherwise]<br class=""/>
> <br class=""/>
> Instituto Nupef - <a href="https://nupef.org.br/" rel="noreferrer noreferrer" target="_blank" class="">https://nupef.org.br</a><br class=""/>
> ISOC-BR - <a href="https://isoc.org.br/" rel="noreferrer noreferrer" target="_blank" class="">https://isoc.org.br</a><br class=""/>
> <br class=""/>
> <br class=""/>
<br class=""/>
-- <br class=""/>
<br class=""/>
Carlos A. Afonso<br class=""/>
[emails são pessoais exceto quando explicitamente indicado em contrário]<br class=""/>
[emails are personal unless explicitly indicated otherwise]<br class=""/>
<br class=""/>
Instituto Nupef - <a href="https://nupef.org.br/" rel="noreferrer noreferrer" target="_blank" class="">https://nupef.org.br</a><br class=""/>
ISOC-BR - <a href="https://isoc.org.br/" rel="noreferrer noreferrer" target="_blank" class="">https://isoc.org.br</a><br class=""/>
<br class=""/>
<br class=""/>
<br class=""/>
</blockquote></div>
</blockquote></div><br clear="all" class=""/><div class=""><br class=""/></div>-- <br class=""/><div dir="ltr" class=""><div dir="ltr" class=""><div class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><div dir="ltr" class=""><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">Joan
Kerr, Entrepreneur, Artist, Humanitarian</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">_____________________________________</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">Chair,
Climate Smart Victory Garden Team</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">Chair,
ICANN, Not for Profit Operations Constituency</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">Chair,
IEEE Sustainable Agriculture Working Group</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">Chair, Science for Peace, Climate Smart Victory Gardens</font></p><p style="margin-bottom:0cm;line-height:13px" class=""><font size="1" class="">Advisor, IEEE Humanitarian Initiatives Committee</font></p><p style="margin-bottom:0cm;line-height:13px" class=""><font size="1" class="">Advisor, Climate Smart Agriculture Youth Network, (CSAYN) Canada</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">UN
WSIS Award Recipient, for Content & Creativity</font></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class="">Durham
Region Recipient, Community Partnership Award</font></p><p style="margin-bottom:0in" class=""><span style="font-family:Calibri,sans-serif" class="">Founder,
Foundation for Building Sustainable Communities</span><br class=""/></p><p style="margin-bottom:0in" class=""><font face="Calibri, sans-serif" class=""><a href="http://www.joankerr.ca/" target="_blank" class="">www.joankerr.ca</a>,
<a href="http://www.fbsc.org/" target="_blank" class="">www.fbsc.org</a></font></p><p style="margin-bottom:0in" class=""><span style="font-family:Calibri,sans-serif" class="">Skype:
joankerr_fbsc</span><br class=""/></p><p style="margin-bottom:0in" class=""><span style="font-family:Calibri,sans-serif" class="">1-416-907-0783</span></p>
</div></div></div></div></div></div></div></div></div></div></div></div>
</blockquote></div>
</div></blockquote></div><br class=""/></body></html>