<div dir="ltr">Hi everyone.<br><br>Milton, you have a great text, and of course, being a Senator in this community, your actual responsibility is bigger than for most of us. <br><br>But in all honesty I have to point out that while you claim that the ghost of "rapacious capitalism" was partly responsible for the "ideological nonsense." of the decision for no-go from ICANN, your text is also filled with ideological biases and prejudices.<br><br>For example in the same paragraph you cry wolf, you also write "Worldwide, the existence of open competitive markets has done more to support, strengthen and expand access to information and communications than any nonprofit or government program.". <div><br></div><div>You surely know this is not at all fair nor true, </div><div>You surely know that if not for the ARPANET government program, there would be no Internet. </div><div>You surely know that, because there is no such thing as "worldwide", there are many particular and fragile realities, and there are places where the "open competitive markets" do not or cannot exist. </div><div><br></div><div>And this is the fundamental problem you fail to address in your article. While trying to answer the question for the "worldwide", you miss, forget, leave behind the most fragile of the communities. </div><div><br></div><div>And knowing this, still you wrote it and continued in this lane throughout the article.<br><br>I am a computer network scientist. Among my tools I strive to include rigour, balance and as much truth as possible.<br><br>With that paragraph, my dear Senator, I am lost for your argument, which is a pity because I too read the mail from Vint Cerf, and tend to agree with him. <div><br></div><div>Yet, I cannot agree with your particular line of reasoning. And it's a shame, as it may turn out that, after all, you have a good point in your analysis.<br><br>So, to conclude, I think maybe this is what is wrong with the whole process. </div><div><br></div><div>Maybe there are too many ideological barriers, too many biases, and, for the good and for the bad, the system is too big, too complex, has a huge inertia (as we all know), and changing something, even if for the good reasons, has to be done with preliminary caution. For example, before doing things (in this case, things that were hidden from the majority of us, with as you very well acknowledge "shady aspects"), the incumbents / proponents need to amass at least an equal amount of energy to make the system move (being energy here freely interpreted as people / interests / communities). <br><br>And, finally, to change things, we need to have fresh and informed perspectives on things. Preferably as unbiased as possible.<br><br>Hopefully this will be a lesson learned by all of us.<br><br>Warm regards, please stay safe and healthy,<br><br>Nuno Garcia,<br>Portugal<br></div></div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Mon, 4 May 2020 at 18:47, Mueller, Milton L <<a href="mailto:milton@gatech.edu">milton@gatech.edu</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
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<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)">I wrote something about this that puts it into a broader perspective.
<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)">What was accomplished by stopping the sale?
<u></u><u></u></span></p>
<p class="MsoNormal"><a href="https://www.internetgovernance.org/2020/05/01/no-real-winners-in-dot-org-decision/" target="_blank">https://www.internetgovernance.org/2020/05/01/no-real-winners-in-dot-org-decision/</a><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)"><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)"><u></u> <u></u></span></p>
<p class="MsoNormal"><b><span style="font-size:11pt;font-family:Calibri,sans-serif">From:</span></b><span style="font-size:11pt;font-family:Calibri,sans-serif"> NCSG-Discuss <<a href="mailto:NCSG-DISCUSS@LISTSERV.SYR.EDU" target="_blank">NCSG-DISCUSS@LISTSERV.SYR.EDU</a>>
<b>On Behalf Of </b>Joly MacFie<br>
<b>Sent:</b> Friday, May 1, 2020 12:31 AM<br>
<b>To:</b> <a href="mailto:NCSG-DISCUSS@LISTSERV.SYR.EDU" target="_blank">NCSG-DISCUSS@LISTSERV.SYR.EDU</a><br>
<b>Subject:</b> Re: ICANN Board Withholds Consent for a Change of Control of the Public Interest Registry (PIR)<u></u><u></u></span></p>
<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51);background:white">“ This proposed transaction has posed difficult questions to the </span>ICANN<span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51);background:white"> Board
and the community, and the totality of the circumstances supports a denial in this instance. If PIR is able to provide additional information that resolves the concerns raised by the Board, PIR remains able to re-submit or initiate a new Change of Control
Request.”</span><u></u><u></u></p>
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<p class="MsoNormal"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51);background:white">In other words, back to the drawing board.</span><u></u><u></u></p>
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<p class="MsoNormal"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51);background:white">Joly</span><u></u><u></u></p>
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<p class="MsoNormal">On Thu, Apr 30, 2020 at 11:40 PM Caleb Olumuyiwa Ogundele <<a href="mailto:muyiwacaleb@gmail.com" target="_blank">muyiwacaleb@gmail.com</a>> wrote:<u></u><u></u></p>
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<p class="MsoNormal">In case you missed this.<u></u><u></u></p>
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<p class="MsoNormal">______________________________________________________<u></u><u></u></p>
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<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Today, the ICANN Board made the decision to reject the proposed change of control and entity conversion request that Public Interest
Registry (PIR) submitted to ICANN.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">After completing extensive due diligence, the ICANN Board finds that withholding consent of the transfer of PIR from the Internet
Society (ISOC) to Ethos Capital is reasonable, and the right thing to do.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">ICANN's role is to ensure the stable and secure operation of the Internet's unique identifier systems. We are dedicated to making
the right decision, knowing that whatever we decide will be well received by some, and not by others. It is our responsibility to weigh all factors from an ICANN Bylaws and policies perspective, including considering the global public interest. We have done
this diligently, ensuring as much transparency as possible and welcoming input from stakeholders throughout.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">On 13 November 2019, PIR <a href="https://thenew.org/the-internet-society-public-interest-registry-a-new-era-of-opportunity/" target="_blank"><span style="color:rgb(0,152,213)">announced</span></a> that ISOC,
its parent organization, had reached an agreement with Ethos Capital, under which Ethos Capital would acquire PIR and all of its assets from ISOC. Under the agreement, PIR would also be converted from a Pennsylvania not-for-profit corporation to a for-profit
Pennsylvania limited liability company. ISOC created and agreed to the transaction details that are under review.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">On 14 November 2019, PIR formally <a href="https://www.icann.org/en/system/files/correspondence/cimbolic-to-icann-14nov19-en.pdf" target="_blank"><span style="color:rgb(0,152,213)">submitted</span></a> to ICANN a
"Notice of Indirect Change of Control and Entity Conversion" in advance of closing the proposed transaction between Ethos Capital and ISOC. Since 2003, PIR has operated the .ORG generic top-level domain (gTLD) as a not-for-profit organization, as well as six
other gTLDs. Per the gTLD <a href="https://newgtlds.icann.org/sites/default/files/agreements/agreement-approved-31jul17-en.html#article7.5" target="_blank"><span style="color:rgb(0,152,213)">Registry Agreements</span></a>, ICANN must either approve or withhold consent
of a proposed change of control, the deadline for which is 4 May 2020.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">ICANN's role has been to evaluate the reasonableness of PIR's request for indirect change of control and entity conversion. In
doing so, ICANN evaluated an extensive amount and variety of information related to the proposed transaction, including details of the transaction structure, financing, and other funding sources of Ethos Capital, the parties involved, the role of the Pennsylvania
authorities, information related to financial resources and operational and technical capability, how the new for-profit PIR under the control of Ethos Capital would be responsive to the needs of the non-commercial community, what input the .ORG community
had provided to PIR or ISOC on the proposed transaction, and how that community input would be reflected in the operations of PIR following its conversion.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Throughout this process, the ICANN Board has worked thoughtfully and thoroughly to determine if it is reasonable under PIR's Registry
Agreements for ICANN to either approve or withhold consent to the proposed change of control. Before making our determination, the Board, among other things:<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Conducted thorough due diligence<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Received and reviewed hundreds of pages of documentation and responses provided by PIR, ISOC and Ethos Capital following ICANN issuing three requests for more information<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Was briefed extensively by ICANN org<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Received and considered more than 30 letters from stakeholders<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Considered input from an ICANN67 public forum, views of the community and others who weighed in after we received PIR's Public Interest Commitments<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">Considered the opinions expressed in the California Attorney General's Office letter sent to ICANN on 15 April 2020<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">The Board was presented with a unique and complex situation – impacting one of the largest registries with more than 10.5 million
domain names registered. After completing its evaluation, the ICANN Board finds that the public interest is better served in withholding consent as a result of various factors that create unacceptable uncertainty over the future of the third largest gTLD registry.
Factors that were considered in determining reasonableness include, but are not limited to:<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">A change from the fundamental public interest nature of PIR to an entity that is bound to serve the interests of its corporate stakeholders, and which has no meaningful
plan to protect or serve the .ORG community.<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">ICANN is being asked to agree to contract with a wholly different form of entity; instead of maintaining its contract with the mission-based, not-for-profit that has
responsibly operated the .ORG registry for nearly 20 years, with the protections for its own community embedded in its mission and status as a not-for-profit entity.<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">The US$360 million debt instrument forces PIR to service that debt and provide returns to its shareholders, which raises further question about how the .ORG registrants
will be protected or will benefit from this conversion. This is a fundamental change in financial position from a not-for-profit entity.<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">There are additional uncertainties, such as an untested Stewardship Council that might not be properly independent, or why PIR needs to change its corporate form to
pursue new business initiatives.<u></u><u></u></span></p>
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<u></u><span style="font-size:10pt;font-family:Symbol;color:rgb(51,51,51)"><span>·<span style="font:7pt "Times New Roman"">
</span></span></span><u></u><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">The transaction as proposed relies on ICANN as a backstop for enforcement of disputes between the .ORG community and the registry operator in an untested manner.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">The entire Board stands by this decision. After thorough due diligence and robust discussion, we concluded that this is the right
decision to take. While recognizing the disappointment for some, we call upon all involved to find a healthy way forward, with a keen eye to provide the best possible support to the .ORG community.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">The Board would like to thank the global community and stakeholders for their engagement.<u></u><u></u></span></p>
<p style="box-sizing:border-box;line-height:1.4rem;margin:1.25rem"><span style="font-family:Helvetica,sans-serif;color:rgb(51,51,51)">The resolution and rationale document, which expands upon this decision is available, <a href="https://www.icann.org/resources/board-material/resolutions-2020-04-30-en" target="_blank"><span style="color:rgb(0,152,213)">here</span></a>.<u></u><u></u></span></p>
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Joly MacFie +2185659365 <u></u><u></u></p>
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